PACCAR Truck Pretax Profit Rebounds After a Weak Year-Ago Quarter

The Tip Desk · October 30, 2026 · 4 min read

Third-quarter net income reached $847.5 million, or $1.61 a share, as truck pretax profit recovered to $454.5 million from $102.5 million a year earlier.

PACCAR Inc (PCAR), the global truck maker, reported net income of $847.5 million, or $1.61 a share, in the third quarter of 2026, up from $590.0 million, or $1.12 a share, a year earlier. Consolidated net sales and revenues were $7.94 billion, compared with $6.67 billion in the third quarter of 2025.

Chief executive Preston Feight said the increase in quarterly profits resulted from higher truck segment margins and strong overall business performance.

The truck segment was the inflection. Pretax profit in Truck, Parts and Other’s truck line rose to $454.5 million from $102.5 million a year earlier, and truck sales and revenues increased to $5,602.4 million from $4,381.4 million. Global truck deliveries were 40,100 units, up from 31,900 a year earlier.

United States and Canada new-truck deliveries were 23,800, compared with 17,100 a year earlier. Europe deliveries were 10,400, versus 10,100, and other regions 5,900, versus 4,700. Truck, Parts and Other pretax income was $858.9 million, compared with $526.6 million a year earlier.

PACCAR Parts posted record third-quarter revenues of $1.78 billion. Pretax income was $404.4 million, compared with $410.0 million a year earlier. The company said the parts business’s performance reflected investments in new parts distribution centers, transportation solutions such as Managed Dealer Inventory and Fleet Services, and the TRP all-makes brand. It said it will add a parts distribution center in France to complement the Massbach, Germany, center that opened in 2024.

PACCAR Financial Services earned pretax income of $138.1 million, 9.4% higher than $126.2 million a year earlier. Segment revenues were $558.9 million, compared with $565.3 million. Vice president Craig Gryniewicz said the results reflected steady finance margins and an improving used truck market. The portfolio included 222,000 trucks and trailers, with total assets of $22.5 billion, including PacLease’s 37,000-vehicle fleet.

Cash generated from operations in the quarter was $847.7 million. Capital investments were $137.6 million and research and development expenses $108.9 million.

For the first nine months of 2026, net income was $2.20 billion, or $4.18 a share, compared with $1.82 billion, or $3.45 a share, in the first nine months of 2025. That year-ago period included a $264.5 million after-tax non-recurring charge related to civil litigation in Europe. Net sales and financial services revenues for the nine months were $22.26 billion, compared with $21.62 billion. Truck pretax profit for the nine months was $991.2 million, versus $776.2 million. Parts pretax income was $1.22 billion, versus $1.25 billion. Financial Services pretax income was $377.7 million, versus $370.5 million.

Executive vice president and chief technology officer John Rich said Kenworth and Peterbilt customers are beginning to refresh fleets with newer, more fuel-efficient trucks, and that the company is experiencing a good year of truck demand in 2026 and anticipates that to continue next year, supported by U.S. economic growth and continued investments in infrastructure. U.S. and Canada Class 8 truck industry retail sales in 2026 are estimated at 240,000–260,000 vehicles, a narrower range than the 230,000–270,000 estimate given in July. Class 8 retail sales for 2027 are expected at 240,000–280,000 trucks.

European above-16-tonne registrations are estimated at 300,000–320,000 trucks this year, and a similar range in 2027. The South American above-16-tonne market is projected at 100,000–105,000 trucks this year and 105,000–115,000 vehicles in 2027.

PACCAR unveiled PACCAR Connect, a telematics and connected-vehicle platform for Kenworth and Peterbilt Class 8 trucks beginning in early 2027. Chief information officer Lily Ley said the platform will enhance customer productivity and create new revenue streams.

Chief financial officer Brice Poplawski said 2026 capital expenditures are projected at $650–$700 million and research and development expenses at $440–$460 million. For 2027, the company estimates $650–$700 million in capital expenditures and $460–$500 million in research and development.