PACCAR posts 19% higher Q3 2026 revenue of $7.94 billion and a 44% jump in net income

PACCAR earned $847.5 million, or $1.61 per diluted share, in the third quarter of 2026, saying revenues rose 19% to $7.94 billion and net income rose 44% from a year earlier. For the first nine months of 2026, net income was $2.20 billion ($4.18 per diluted share) compared with $1.82 billion ($3.45 per diluted share) in the same period of 2025, which included a $264.5 million after-tax non-recurring charge related to civil litigation in Europe. Nine-month net sales and financial services revenues were $22.26 billion, compared with $21.62 billion a year earlier. The company attributed the higher quarterly profit to higher truck segment margins and strong overall business performance.

U.S. and Canada Class 8 truck industry retail sales are estimated at 240,000 to 260,000 vehicles in 2026 and 240,000 to 280,000 in 2027, while European registrations in the above-16-tonne segment are estimated at 300,000 to 320,000 trucks this year and a similar range next year. The South American above-16-tonne market is projected at 100,000 to 105,000 trucks this year and 105,000 to 115,000 in 2027. Executive vice president and chief technology officer John Rich said Kenworth and Peterbilt customers are beginning to refresh their fleets with newer, more fuel-efficient trucks, and that PACCAR expects the good 2026 demand to continue next year, supported by U.S. economic growth and continued infrastructure investment. DAF displayed a range of innovative products including new clean diesel- and battery-powered trucks at the IAA Transportation 2026 commercial vehicle show in Hanover, Germany, and its XD Electric and XF Electric models were named International Truck of the Year 2026.

PACCAR unveiled PACCAR Connect, a platform with an integrated vehicle display that combines fleet telematics systems, PACCAR truck data, customer-specific productivity applications and Electronic Driver Logs, at the American Trucking Associations' Management Conference & Exhibition in North Carolina. It will be available in Kenworth and Peterbilt Class 8 trucks beginning in early 2027, and chief information officer Lily Ley said it will serve as a unifying platform that enhances customer productivity while creating new revenue streams. PACCAR Parts posted record third-quarter revenues of $1.78 billion and nine-month revenues of $5.24 billion versus $5.14 billion a year earlier, although quarterly pretax profit slipped to $404.4 million from $410.0 million and nine-month pretax profit to $1.22 billion from $1.25 billion. PACCAR will add a parts distribution center in France to support DAF dealers and customers, complementing its PDC in Massbach, Germany, which opened in 2024; its 21 global parts distribution centers, with over 4 million square feet, support more than 2,000 DAF, Kenworth and Peterbilt sales, parts and service locations and more than 350 TRP stores.

PACCAR Financial Services earned pretax income of $138.1 million in the third quarter, 9.4% above the $126.2 million of a year earlier, on revenues of $558.9 million versus $565.3 million, which the company attributed to steady finance margins and an improving used truck market. Nine-month pretax income was $377.7 million compared with $370.5 million, on revenues of $1.65 billion versus $1.64 billion. The segment has a portfolio of 222,000 trucks and trailers and total assets of $22.5 billion, including PacLease, a full-service truck leasing company with a fleet of 37,000 vehicles; PFS issued $2.38 billion of medium-term notes in the first nine months and supports PACCAR truck sales in 26 countries on four continents. PACCAR invested $9.5 billion in facilities, next-generation products and technologies over the past decade, and chief financial officer Brice Poplawski guided to 2026 capital expenditures of $650 to $700 million and R&D expenses of $440 to $460 million, with 2027 plans of $650 to $700 million and $460 to $500 million respectively. The company said it continues to invest in next-generation clean diesel, hybrid and battery-electric powertrains, integrated connected vehicle services, its parts business and manufacturing capabilities.