PACCAR reports higher net income in Q1 2026 despite lower revenue

PACCAR reported good revenues and increased net income in the first quarter of 2026 compared to the fourth quarter last year, according to CEO Preston Feight. The company achieved quarterly revenues of $6.78 billion, down from $7.44 billion in the same period of 2025. Net income rose to $605.3 million ($1.15 per diluted share) from $505.1 million ($0.96 per diluted share), which included a $264.5 million after-tax charge related to civil litigation in Europe in the prior year.

PACCAR Parts contributed $1.71 billion in revenue and $402.3 million in pretax income. PACCAR Financial Services posted $115.5 million in pretax income. The company invested $135.5 million in capital projects and $109.1 million in R&D in the quarter. PACCAR's production backlog is increasing due to stronger demand, and the company projects 2026 U.S. and Canada Class 8 truck sales of 230,000-270,000 units.

The company also announced the Kenworth C580 heavy-duty vocational truck, production starting in January 2027, and DAF expanded its battery-electric vocational truck lineup, which includes models with up to 300 miles of zero-emissions range. PACCAR expects 2026 capital expenditures of $725-$775 million and R&D of $450-$500 million, focusing on next-generation powertrains and autonomous vehicle platforms.