10-KPeriod: FY2022

PACCAR INC Annual Report, Year Ended Dec 31, 2022

Filed February 22, 2023For Securities:PCAR

Summary

PACCAR Inc reported strong financial performance for the fiscal year 2022, with net sales and revenues reaching $28.82 billion, an increase from $23.52 billion in 2021. This growth was primarily driven by higher truck and parts revenues, reflecting increased deliveries and favorable pricing across all markets. The company's Truck segment, accounting for 75% of revenues, saw a significant jump in income before taxes, driven by higher unit deliveries and improved price realization, despite ongoing component supply shortages. The Parts segment also demonstrated robust growth in sales and income, benefiting from higher demand and pricing. PACCAR's Financial Services segment reported an increase in income before taxes, supported by higher finance and lease margins, though revenues saw a decrease due to lower used truck sales. The company maintained a strong balance sheet with $6.31 billion in cash and marketable securities. Looking ahead, PACCAR anticipates continued demand for its trucks, projecting stable to slightly lower industry sales in its key markets for 2023, while it continues to invest in next-generation powertrain technologies, including electric and hydrogen fuel cell vehicles.

Financial Highlights

37 data points
Beta

Revenue

$28.82B

19.2% Gross Margin

Net Income

$3.01B

10.4% Net Margin

EPS (Diluted)

$5.75

Total Assets

$33.28B

Free Cash Flow

$2.50B

Financial Statements
Beta
Revenue$28.82B
Cost of Revenue$23.29B
Gross Profit$5.53B
R&D Expenses$341.20M
SG&A Expenses$726.30M
Net Income$3.01B
EPS (Basic)$5.76
EPS (Diluted)$5.75
Shares Outstanding (Basic)522.60M
Shares Outstanding (Diluted)523.40M

Key Highlights

  • 1PACCAR Inc achieved record net sales and revenues of $28.82 billion in 2022, up from $23.52 billion in 2021.
  • 2Net income rose to $3.01 billion ($5.75 per diluted share) in 2022, compared to $1.87 billion ($3.57 per diluted share) in 2021.
  • 3The Truck segment experienced an 118% increase in income before taxes, driven by a 28% rise in net sales and revenues.
  • 4Parts segment sales increased by 17% to $5.76 billion, with income before taxes growing by 30%.
  • 5Financial Services segment income before taxes increased by 35% to $588.9 million, despite a revenue decline.
  • 6The company maintained a strong liquidity position with $6.31 billion in cash and marketable securities at year-end 2022.
  • 7PACCAR is increasing its capital investments and R&D spending in 2023, focusing on clean diesel, electric powertrains, autonomous driving, and connected vehicle services.

Frequently Asked Questions

PACCAR's revenue growth in 2022 was primarily driven by higher truck and parts sales. This was due to increased truck deliveries across all markets and improved price realization, reflecting strong demand and the positive impact of new truck models. The Parts segment also benefited from higher demand and pricing.

PACCAR, like the broader industry, was affected by an industry-wide undersupply of component parts, particularly semiconductors. This had an impact on truck deliveries throughout 2022, although the company managed to increase overall unit deliveries by 14% compared to 2021. The company anticipates these shortages may continue to affect deliveries into 2023.

PACCAR expects industry retail sales for heavy-duty trucks in the U.S. and Canada to be between 270,000 and 310,000 units in 2023, compared to 283,500 in 2022. In Europe, registrations for vehicles over 16 tonnes are projected to be between 270,000 and 310,000 units, down from 297,500 in 2022. South America heavy-duty truck registrations are projected to be between 125,000 and 135,000 units, compared to 138,300 in 2022. These forecasts reflect a relatively stable, albeit potentially slightly softer, demand environment.

PACCAR is significantly increasing its investment in research and development and capital expenditures for 2023. Key areas of investment include next-generation clean diesel and electric powertrain technologies, autonomous driving systems, connected vehicle services, advanced manufacturing processes, and enhanced distribution capabilities. The company is also actively involved in developing battery-electric and hydrogen fuel cell vehicles.