Paccar (PCAR) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenues were $8.77 billion with net income of $1.12 billion, reflecting strong truck and parts operations but a slight year-over-year decline.

• First half 2024 net income was $2.32 billion on $17.52 billion revenue, up from $1.96 billion in 2023, which included a $446.4 million after-tax non-recurring charge.

• Delivered 48,400 trucks in Q2 and 96,500 in H1 2024, with North America and Brazil market share gains; Kenworth and Peterbilt reached 31.5% U.S./Canada Class 8 share, DAF Brazil at 10.3%.

• Continued investment in technology, manufacturing, electrification, and global expansion, including new parts distribution centers and the Amplify Cell Technologies battery joint venture.

• PACCAR Financial Services maintained profitability with a growing, high-quality portfolio.

Financial highlights

• Q2 2024 net sales and revenues: $8.77 billion; net income: $1.12 billion; after-tax return on revenues: 12.8%.

• PACCAR Parts Q2 revenues: $1.7 billion; pre-tax profits: $414 million; gross margin: 30.3%.

• Truck segment Q2 sales: $6.58 billion; pretax profit: $837.3 million; gross margin: 15.0%.

• Financial Services Q2 revenues: $509.8 million; pre-tax income: $111.2 million.

• First half 2024 net sales and revenues: $17.52 billion; net income: $2.32 billion.

Outlook and guidance

• U.S./Canada Class 8 truck industry retail sales projected at 240,000–280,000 units for 2024; Europe above-16-tonne registrations at 260,000–300,000.

• Q3 truck deliveries estimated at 43,000–44,000 units, with gross margins for truck, parts, and other expected around 17%.

• PACCAR Parts sales expected to grow 3–5% in 2024.

• 2024 capital investments forecast at $725–$775 million; R&D expenses projected at $460–$480 million.