01—Abstract
Summary
Summary of the 8-K filed July 28, 2026. Cited figures are marked; the original filing is the authoritative source.
PACCAR reported second-quarter 2026 net income of $752.0 milliona ($1.43 per diluted share), up 3.9% from $723.8 million ($1.37) a year earlier and about 24% above the first quarter of 2026, according to management.
Net sales and financial services revenues were $7.55 billionb, roughly flat year over year ($7.51 billion). Quarterly growth was driven by the Truck segment, where pre-tax income rose to $360.5 million from $308.8 million even as global deliveries slipped to 38,700 units from 39,300. Management attributed the improvement to strong orders, higher freight rates, and a build-rate increase during the quarter.
The first-half comparison is distorted by a prior-year charge. First-half 2026 net income was $1.36 billionc ($2.57 per diluted share), versus $1.23 billion ($2.33) in the first half of 2025, which included a $264.5 million after-tax EC-related litigation charge. Excluding that charge, the prior-year adjusted figure was $2.83 per diluted share, so underlying first-half earnings declined about 9%.
First-half revenues fell to $14.32 billiond from $14.95 billion, and first-half truck deliveries dropped to 71,800 units from 79,400, a decline of about 10%. Parts remained a stable earnings base with record quarterly revenue of $1.75 billion and pre-tax income of $417.0 million, while PACCAR Financial Services earned $124.1 million pre-tax. Balance-sheet and cash-flow data show a company returning capital while holding a strong liquidity position.
Cash and marketable securities declined to $8.67 billion from $9.25 billion at year-end 2025, with first-half dividend payments of $1.09 billion and net debt reduction of $907 million. Stockholders' equity rose to $20.3 billion.
Management reiterated 2026 capital expenditure guidance of $700-750 million and R&D guidance of $450-480 million, and the company's A+/A1 credit ratings were highlighted. The filing contains no explicit full-year earnings or delivery guidance beyond the industry market size estimates.
02—Key points
Key Highlights
- Q2 2026 net income of $752.0 million ($1.43 diluted EPS), up 3.9% year over year from $723.8 million ($1.37), and up about 24% sequentially per management.
- Q2 net sales and financial services revenues of $7.55 billion, essentially flat versus $7.51 billion in Q2 2025.
- Truck segment pre-tax income rose 17% year over year to $360.5 million, while Q2 global deliveries eased to 38,700 units from 39,300.
- First-half 2026 deliveries fell to 71,800 from 79,400 (about -10%), and first-half revenue declined to $14.32 billion from $14.95 billion.
- Adjusted for the $264.5 million after-tax EC-related charge in H1 2025, first-half EPS fell from $2.83 to $2.57 (about -9%), so the reported year-over-year EPS increase is largely a base effect.
- PACCAR Parts posted record quarterly revenue of $1.75 billion, with pre-tax income of $417.0 million, flat year over year.
- Cash and marketable securities declined to $8.67 billion from $9.25 billion, while stockholders' equity rose to $20.3 billion; quarterly dividend declared was $0.35 per share versus $0.33.
03—Questions
Frequently Asked Questions
Did PACCAR's earnings grow compared with last year?
Modestly in the quarter. Q2 2026 net income rose 3.9% to $752.0 million and diluted EPS rose from $1.37 to $1.43. On a first-half basis, reported EPS rose from $2.33 to $2.57, but that comparison benefits from a $264.5 million after-tax EC-related charge in H1 2025. Against adjusted H1 2025 EPS of $2.83, first-half 2026 earnings were lower.
Why did truck deliveries decline, and what drove the Truck segment's profit improvement?
Deliveries were 38,700 in Q2 versus 39,300 a year earlier, and 71,800 in the first half versus 79,400, with declines in U.S. and Canada and in other markets. Truck segment pre-tax income nonetheless rose to $360.5 million from $308.8 million in Q2, which management tied to strong orders, higher customer freight rates and build-rate increases. The filing does not break out price, mix or cost effects.
How strong is PACCAR's balance sheet and liquidity?
Strong. Stockholders' equity increased to $20.3 billion, and the company cites A+/A1 credit ratings. Cash and marketable securities fell to $8.67 billion from $9.25 billion, mainly reflecting $1.09 billion of first-half dividends and $907 million of net debt reduction. Operating cash flow was $1.67 billion for the first half, down from $1.74 billion.
What guidance did management provide?
The release gives 2026 capital expenditure guidance of $700-750 million and R&D expense guidance of $450-480 million. It also provides market estimates: U.S. and Canada Class 8 retail sales of 230,000-270,000 trucks, European above-16-tonne registrations of 290,000-330,000, and South American above-16-tonne demand of 100,000-110,000. It does not give explicit full-year EPS or delivery guidance.
Is there any remaining legal exposure from the European litigation?
Yes, but it is largely accounted for. PACCAR recorded total pre-tax charges of $600 million in 2023 and $350 million in Q1 2025 for European civil claims related to the EC truck cartel settlement. The company says it has settled with most claimants and continues to pursue resolutions, while some court judgments remain under appeal, so further charges cannot be ruled out.
04—Continue