01—Abstract
Summary
Summary of the 10-Q filed April 29, 2026. Cited figures are marked; the original filing is the authoritative source.
PACCAR Inc reported a solid first quarter for 2026, demonstrating resilience despite a challenging market environment.
Net income increased to $605.3 milliona ($1.15 per diluted share) from $505.1 million ($0.96 per diluted share) in the prior year quarter. This improvement was driven by strong performance in the Parts segment and an increase in Financial Services revenues, even as truck revenues saw a decline due to lower unit deliveries. The company navigated macroeconomic headwinds, including inflationary pressures and evolving market demands for electric vehicles.
The Truck segment experienced a decrease in revenues and income before taxes, largely attributable to a 17%b reduction in worldwide new truck deliveries. However, PACCAR maintained its heavy-duty truck market share in the U.S. and Canada. The company also provided a cautious outlook for truck industry sales in 2026, anticipating a slight decrease in the U.S. and Canada and South America, while expecting stable registrations in Europe.
02—Key points
Key Highlights
- Net income increased by 19.8% to $605.3 million ($1.15 per diluted share) in Q1 2026, up from $505.1 million ($0.96 per diluted share) in Q1 2025.
- Worldwide net sales and revenues decreased by 8.9% to $6.78 billion, primarily due to a 13% decline in truck revenues, partially offset by growth in Parts and Financial Services revenues.
- Truck segment income before taxes fell 52% to $176.2 million, impacted by lower unit deliveries and increased tariff costs.
- Parts segment sales increased by 1% to $1.71 billion, with income before taxes at $402.3 million.
- Financial Services revenues grew 2.7% to $542.2 million, though income before taxes slightly decreased by 4.6% to $115.5 million, impacted by higher provision for losses.
- The company's investment in the U.S.-based battery joint venture, Amplify Cell Technologies, is proceeding with adjusted timing for manufacturing capacity installation.
- PACCAR maintains a strong liquidity position with $5.64 billion in cash and cash equivalents and $3.21 billion in marketable securities as of March 31, 2026.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 29, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $6.78B$7.44B | −8.9% |
| Cost of Revenue | $5.42B$5.89B | −8.1% |
| Gross Profit | $1.36B$1.55B | −12.3% |
| R&D Expenses | $109.10M$115.40M | −5.5% |
| SG&A Expenses | $189.30M$181.60M | +4.2% |
| Net Income | $605.30M$505.10M | +19.8% |
| EPS (Basic) | $1.15$0.96 | +19.8% |
| EPS (Diluted) | $1.15$0.96 | +19.8% |
| Shares Outstanding (Basic) | 526.70M525.90M | +0.2% |
| Shares Outstanding (Diluted) | 527.40M526.90M | +0.1% |
05—Questions
Frequently Asked Questions
What was PACCAR's net income and diluted EPS for the first quarter of 2026?
PACCAR reported a net income of $605.3 million for the first quarter of 2026, which translated to a diluted earnings per share of $1.15. This represents a significant increase compared to $505.1 million and $0.96 per diluted share in the same period of 2025.
How did the Truck segment perform in Q1 2026?
The Truck segment experienced a decline in performance compared to the prior year. Worldwide new truck deliveries decreased by 17% to 33,100 units. Consequently, net sales and revenues for the Truck segment decreased by 13% to $4.53 billion, and income before taxes fell by 52% to $176.2 million. This was attributed to lower retail demand in major markets and higher tariff costs.
What is PACCAR's outlook for the truck industry in 2026?
PACCAR anticipates a challenging but stable truck market in 2026. Heavy-duty retail sales in the U.S. and Canada are projected to be between 230,000 to 270,000 units (compared to 232,800 in 2025). In Europe, registrations for over 16-tonne vehicles are expected to be between 280,000 to 320,000 units (compared to 297,000 in 2025). South America's heavy-duty truck registrations are projected to be between 100,000 to 110,000 units (compared to 115,000 in 2025).
How is PACCAR managing its Financial Services segment?
PACCAR's Financial Services segment saw a slight increase in revenues to $542.2 million, driven by currency translation effects and a larger retail loan and finance lease portfolio, though income before taxes declined slightly to $115.5 million due to a higher provision for losses. The company maintains a substantial portfolio of loans and leases totaling $22.35 billion and continues to issue medium-term notes to support its operations and growth.
06—Continue