Paccar (PCAR) Q1 2026 earnings summary

Executive summary

• Achieved Q1 2026 revenues of $6.8 billion and net income of $605 million, with strong performance in truck, parts, and financial services segments.

• Truck deliveries totaled 33,100 units in Q1, down from 40,100 year-over-year, but global demand and production backlogs are rising.

• Maintained a strong balance sheet with $8.6 billion in cash and no manufacturing debt.

• Launched Kenworth C580 and new DAF electric trucks; DAF XF and XD Electric received major industry awards.

• Capital investments planned at $725–$775 million and R&D at $450–$500 million for advanced manufacturing and vehicle technologies.

Financial highlights

• Q1 2026 revenues were $6.8 billion, down from $7.4 billion in Q1 2025.

• Net income was $605 million, compared to $770 million adjusted net income in Q1 2025 (excluding a $264.5 million after-tax EC-related charge).

• PACCAR Parts revenue reached $1.7 billion with $402 million pretax profit and a 29.6% gross margin.

• Financial Services delivered $116 million pretax profit on $542.2 million revenue.

• Truck segment sales were $4.5 billion with a 7% margin and $176 million pretax profit.

Outlook and guidance

• U.S. and Canada Class 8 truck market projected at 230,000–270,000 units for 2026; Europe above 16-tonne at 280,000–320,000 units; South America at 100,000–110,000 units.

• Parts sales forecast to grow 3% in Q2 and 3%–6% for the full year.

• Margins expected to improve sequentially through the year, driven by higher volumes and operational efficiency.

• Balanced demand between pre-buy and replacement expected in the second half, with strong order visibility into Q3 and Q4.

• Used truck prices are showing signs of improvement.