10-QPeriod: Q2 FY2026

PACCAR INC Quarterly Report for Q2 Ended Jun 30, 2026

Filed July 29, 2026For Securities:PCAR

Summary

PACCAR Inc's (PCAR) Q2 2026 filing shows resilience in its top line and an increase in net income compared to the prior year period. Total net sales and revenues reached $7.55 billion, a slight increase from $7.51 billion in Q2 2025. Net income grew to $752.0 million, or $1.43 per diluted share, up from $723.8 million, or $1.37 per diluted share, in the prior year's second quarter. This performance was driven by steady truck sales, a notable increase in European parts sales, and stable financial services revenue, demonstrating broad-based operational strength across its segments. Despite a decrease in overall truck deliveries year-over-year for the first six months, PACCAR managed to improve its profitability. The company is actively managing costs, evidenced by a decrease in R&D expenses for the six-month period and strategic cost management within its Truck segment, leading to improved gross margins in that segment for the second quarter. The Financial Services segment saw an increase in provision for losses and net charge-offs, particularly in Brasil, indicating some economic pressures in specific markets, but overall segment income remained stable. The company maintains a strong liquidity position with substantial cash and marketable securities, and its outlook for Parts sales remains positive.

Key Highlights

  • 1Net income increased to $752.0 million ($1.43 per diluted share) in Q2 2026, up from $723.8 million ($1.37 per diluted share) in Q2 2025.
  • 2Worldwide net sales and revenues were $7.55 billion in Q2 2026, a slight increase from $7.51 billion in Q2 2025.
  • 3Truck segment gross margin improved to 9.4% in Q2 2026 from 8.7% in Q2 2025, driven by higher price realization and lower tariff costs.
  • 4Parts sales increased by 2% to $1.75 billion in Q2 2026 from $1.72 billion in Q2 2025, primarily due to higher sales in Europe.
  • 5Financial Services segment income before income taxes remained stable at $124.1 million in Q2 2026 compared to $123.2 million in Q2 2025, despite an increase in provision for losses.
  • 6Total cash and marketable securities stood at $8.83 billion as of June 30, 2026.
  • 7The company expects 2026 capital investments to be between $700-$750 million and R&D expenses between $450-$480 million.

Frequently Asked Questions

In the second quarter of 2026, PACCAR reported worldwide net sales and revenues of $7.55 billion, a slight increase from $7.51 billion in the same period of 2025. Net income rose to $752.0 million, or $1.43 per diluted share, compared to $723.8 million, or $1.37 per diluted share, in the prior year's second quarter.

The Truck segment saw comparable net sales and revenues in Q2 2026 versus Q2 2025. Despite lower truck unit deliveries globally, the segment's income before taxes and pre-tax return on revenues increased, primarily due to higher price realization and lower tariff costs. The gross margin also improved to 9.4% from 8.7% year-over-year.

The Financial Services segment maintained stable revenues and income before taxes in Q2 2026. However, the provision for losses on receivables and net charge-offs increased, particularly in Brasil, reflecting challenging economic conditions. The segment's past due accounts (30+ days) stood at 2.2% of the retail loan and lease portfolio as of June 30, 2026, slightly down from 2.4% at the end of 2025 but up from 1.2% in mid-2025, indicating some credit normalization.

PACCAR anticipates capital investments for 2026 to be in the range of $700 million to $750 million and research and development expenses to be between $450 million and $480 million. These investments are focused on next-generation powertrains (clean diesel, hybrid, battery-electric), connected vehicle services, and manufacturing capabilities.