PACCAR Inc — Third Quarter 2026 Earnings Summary

Financial Performance:

• Third quarter 2026 consolidated net sales and revenues reached $7.94 billion, a 19% increase compared to $6.67 billion in the same period of 2025.
• Third quarter 2026 net income was $847.5 million ($1.61 per diluted share), up 44% from $590.0 million ($1.12 per diluted share) in the prior year period.
• First nine months of 2026 net income totaled $2.20 billion ($4.18 per diluted share), compared to $1.82 billion ($3.45 per diluted share) in the first nine months of 2025; the prior year period included a $264.5 million after-tax non-recurring charge related to civil litigation in Europe.
• First nine months of 2026 consolidated net sales and revenues were $22.26 billion, up from $21.62 billion in the same period of 2025.
• Cash generated from operations was $847.7 million in the third quarter of 2026 and $2.52 billion for the first nine months of 2026.
• Capital investments were $137.6 million in the third quarter and $411.8 million for the first nine months of 2026.
• R&D expenses were $108.9 million in the third quarter and $332.3 million for the first nine months of 2026.
• PACCAR Parts recorded record revenues of $1.78 billion in the third quarter and $5.24 billion for the first nine months of 2026.
• PACCAR Parts pretax income was $404.4 million in the third quarter (down from $410.0 million in Q3 2025) and $1.22 billion for the first nine months (down from $1.25 billion in the same period in 2025).
• PACCAR Financial Services pretax income was $138.1 million in the third quarter (up 9.4% from $126.2 million in Q3 2025) and $377.7 million for the first nine months (up from $370.5 million in the same period in 2025).
• PACCAR Financial Services revenues were $558.9 million in the third quarter (down from $565.3 million in Q3 2025) and $1.65 billion for the first nine months (up from $1.64 billion in the same period in 2025).
• Global truck deliveries totaled 40,100 units in the third quarter of 2026, compared to 31,900 units in the same period of 2025.
• Dividends declared per share were $0.35 in the third quarter of 2026, compared to $0.33 in the same period of 2025.

Guidance and Future Outlook:

• U.S. and Canada Class 8 truck industry retail sales for 2026 are estimated at 240,000–260,000 vehicles, with 2027 expected to range between 240,000–280,000 trucks.
• European truck industry registrations in the above 16-tonne segment are estimated at 300,000–320,000 trucks for 2026 and a similar range for 2027.
• The South American above 16-tonne truck market is projected to be 100,000–105,000 trucks in 2026 and 105,000–115,000 vehicles in 2027.
• 2026 capital expenditures are projected to be in the range of $650–$700 million, with 2027 estimated at $650–$700 million.
• 2026 R&D expenses are estimated at $440–$460 million, with 2027 estimated at $460–$500 million.
• Management anticipates continued truck demand in 2027 supported by U.S. economic growth and infrastructure investments.

Business Segments and Product Lines:

• PACCAR unveiled PACCAR Connect, a next-generation transportation solution integrating fleet telematics, truck data, productivity applications, and Electronic Driver Logs, available in Kenworth and Peterbilt Class 8 trucks beginning in early 2027.
• PACCAR Parts is adding a new parts distribution center (PDC) in France to support DAF dealers and customers, complementing the 2024 opening of the Massbach, Germany PDC.
• PACCAR Parts operates 21 global distribution centers covering over 4 million square feet, supporting more than 2,000 sales, parts, and service locations and over 350 TRP stores.
• DAF exhibited new clean diesel and battery-powered trucks at the IAA Transportation 2026 show, including the International Truck of the Year 2026 DAF XD Electric and XF Electric models.
• PACCAR Financial Services manages a portfolio of 222,000 trucks and trailers with total assets of $22.5 billion, including PacLease's fleet of 37,000 vehicles.
• PACCAR Financial Services issued $2.38 billion of medium-term notes during the first nine months of 2026.

Market and Competitive Landscape:

• Customers in the U.S. and Canada are beginning to refresh fleets with newer, more fuel-efficient trucks.
• DAF trucks are noted for aerodynamics, fuel-efficiency, and driver comfort, delivering industry-leading vehicles and aftermarket support.
• South American customers value the durability and reliability of DAF and Kenworth trucks for tough duty cycles.
• PACCAR Financial Services holds a leadership position in the market with innovative technologies for credit application and loan servicing.

Risks and Challenges:

• The release notes a $264.5 million after-tax non-recurring charge related to civil litigation in Europe (EC-related claims) in the first quarter of 2025, which impacted prior year comparisons.
• Forward-looking statements are subject to uncertainty and changes in circumstances, with actual results potentially differing materially from expectations.

Management Commentary and Tone:

• CEO Preston Feight described the third quarter results as "excellent," attributing profit increases to higher truck segment margins and strong overall business performance.
• CTO John Rich noted a "good year of truck demand" in 2026 and anticipated continued demand in 2027.
• DAF President Jim Walenczak highlighted the company's comprehensive range of innovative products and world-class trucks.
• PACCAR Parts General Manager Bryan Sitko stated that parts performance reflects investments in new distribution centers and transportation solutions.
• PFS Vice President Craig Gryniewicz attributed strong results to steady finance margins and an improving used truck market.
• CFO Brice Poplawski emphasized the company's focus on quality, technology, and innovation through consistent long-term investments.

Other Key Points:

• PACCAR has invested $9.5 billion in world-class facilities, next-generation products, and technologies over the past decade.
• PACCAR Financial Services maintains A+/A1 credit ratings, enabling excellent access to commercial paper and medium-term note markets.
• PACCAR Financial Services supports the sale of PACCAR trucks in 26 countries across four continents.
• The company holds a conference call with securities analysts on October 27, 2026, at 9:00 a.m. Pacific time.
• PACCAR shares are listed on the NASDAQ Stock Market under the symbol PCAR.