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PACCAR INC 8-K Report, Financial Results (Jan 23, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed January 23, 2024
Period End
January 23, 2024
Security
PCAR
In the record · 2016–202610-K1110-Q328-K87

PCAR filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 87 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Sep ’16Sep ’16
  2. Leadership change8-K · Apr ’22Apr ’22
  3. Leadership change8-K · May ’26May ’26

01—Abstract

Summary

Summary of the 8-K filed January 23, 2024. Cited figures are marked; the original filing is the authoritative source.

PACCAR (PCAR) reported record full-year 2023 results and a strong fourth quarter, per the press release furnished under Item 2.02 of this 8-K dated January 23, 2024.

Q4 2023 revenues rose to $9.08 billiona (vs. $8.13 billion in Q4 2022) and net income rose 54% to $1.42 billion, or $2.70 per diluted share. For full-year 2023, revenues reached a record $35.13 billion and net income was $4.60 billion ($8.76 per diluted share). That GAAP figure includes a $446.4 million after-tax (≈$600 million pre-tax) non-recurring charge for European civil litigation (EC-related claims) recorded in Q1 2023; excluding it, adjusted non-GAAP net income was $5.05 billion ($9.61 per diluted share).

The growth was driven mainly by the Truck segment and by PACCAR Parts, which posted record annual revenue of $6.41 billionb and pretax income of $1.70 billion. PACCAR Financial Services earned $540.3 million pretax in 2023, down from $588.9 million in 2022, as the used truck market normalized after two years of elevated volumes and prices. Cash from operations was $4.19 billion, the company declared $4.24 per share in dividends (including a $3.20 extra dividend paid January 4, 2024), and it cited a 55% total shareholder return for 2023.

Looking ahead, management guided 2024 capital expenditures of $700c-$750 million and R&D of $460-$500 million, and projected 2024 U.S./Canada Class 8 retail sales of 260,000-300,000 units, versus 297,000 in 2023. The company also announced a battery-cell joint venture with Cummins, Daimler Truck and EVE Energy, a 21 GWh plant in Marshall County, Mississippi, expected to create more than 2,000 jobs and still subject to regulatory approval. Investors will want to watch whether the cyclical truck market softens in 2024 and whether the electrification investments pay off.

02—Key points

Key Highlights

  1. Q4 2023 revenue of $9.08 billion (up from $8.13 billion) and net income of $1.42 billion ($2.70 per diluted share), up 54% year over year.
  2. Record full-year 2023 revenue of $35.13 billion and net income of $4.60 billion ($8.76 per diluted share), including a $446.4 million after-tax EC-related litigation charge.
  3. Adjusted non-GAAP full-year net income of $5.05 billion ($9.61 per diluted share) excluding the one-time European litigation charge.
  4. PACCAR Parts delivered record 2023 revenue of $6.41 billion and pretax income of $1.70 billion, supporting margin resilience through the cycle.
  5. PACCAR Financial Services pretax income fell to $540.3 million from $588.9 million as used truck prices normalized; portfolio assets grew to a record $20.96 billion.
  6. Record 204,200 vehicles delivered worldwide in 2023; total dividends declared of $4.24 per share, including a $3.20 extra dividend, and a 55% total shareholder return.
  7. 2024 guidance: capex of $700-$750 million and R&D of $460-$500 million; U.S./Canada Class 8 market estimated at 260,000-300,000 units versus 297,000 in 2023.

03—Questions

Frequently Asked Questions

  1. Why did reported 2023 net income include a charge, and what is the underlying earnings power?

    Q1 2023 included a $600.0 million pretax ($446.4 million after-tax) non-recurring charge for civil litigation in Europe (EC-related claims). Excluding it, adjusted non-GAAP net income was $5.05 billion, or $9.61 per diluted share, versus reported GAAP net income of $4.60 billion, or $8.76 per diluted share.

  2. How did the company's profitability trend compare with 2022?

    Full-year 2023 revenue rose to $35.13 billion from $28.82 billion, and GAAP net income rose to $4.60 billion from $3.01 billion. Truck, Parts and Other pretax income was $4.89 billion versus $3.20 billion. The release also cites a record after-tax return on revenue of 13.1%.

  3. What is the outlook for the truck market and the company's investment plans in 2024?

    The company estimates 2024 U.S. and Canada Class 8 retail sales of 260,000-300,000 trucks, compared with 297,000 in 2023. European above-16-tonne registrations are also estimated at 260,000-300,000, down from 343,000. Capex is projected at $700-$750 million and R&D at $460-$500 million.

  4. What does the new battery joint venture mean for PACCAR?

    PACCAR, Cummins, Daimler Truck and EVE Energy selected Marshall County, Mississippi, for a battery-cell plant with 21 GWh of planned output and more than 2,000 projected U.S. jobs. The regulatory approval process is still underway, so the timing and financial contribution remain uncertain.

  5. Is the dividend sustainable after the large 2023 payout?

    The company declared $4.24 per share in 2023 (about $2.23 billion in total), including a $3.20 extra dividend paid January 4, 2024. Net cash from operations was $4.19 billion and year-end cash and marketable securities were $8.66 billion, which supports the payout. However, the extra dividend is discretionary and depends on earnings and the cycle.

04—Continue

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