PACCAR Reports 19% Revenue Growth and 44% Higher Profits in Q3 2026
PACCAR Reports Strong Third-Quarter Financial Performance
PACCAR reported significant financial growth in the third quarter of 2026, supported by improved truck segment margins, strong performance across its business operations and record revenues from its parts division. The global commercial vehicle manufacturer recorded higher revenues and net income compared with the same period in 2025, reflecting continued demand for its trucks and related transportation services.The company achieved consolidated net sales and revenues of $7.94 billion in the third quarter of 2026, representing an increase from $6.67 billion reported in the third quarter of the previous year. Net income rose to $847.5 million, equivalent to $1.61 per diluted share, compared with $590 million, or $1.12 per diluted share, in the third quarter of 2025.
Preston Feight, PACCAR’s chief executive officer, said the increase in quarterly profits was driven by stronger margins in the truck segment and solid performance throughout the business. He also highlighted the record revenue generated by PACCAR Parts and the strong earnings delivered by PACCAR Financial Services.Feight praised the company’s employees for their contributions to designing, manufacturing and delivering trucks and transportation solutions to customers worldwide.
Nine-Month Revenue and Earnings Continue to Increase
PACCAR also recorded higher earnings during the first nine months of 2026. Net income reached $2.20 billion, or $4.18 per diluted share, compared with $1.82 billion, or $3.45 per diluted share, during the corresponding period in 2025.
The prior-year nine-month results included a $264.5 million after-tax non-recurring charge associated with civil litigation in Europe. This charge forms an important consideration when comparing the company’s reported earnings across the two periods.Consolidated net sales and financial services revenues totalled $22.26 billion during the first nine months of 2026, compared with $21.62 billion in the same period last year.
During the third quarter, PACCAR generated $847.7 million in cash from operations. The company invested $137.6 million in capital projects and allocated $108.9 million to research and development, reflecting its continued focus on manufacturing capabilities, product development and transportation technology.For the first nine months of 2026, cash generated from operations amounted to $2.52 billion. Capital investments totalled $411.8 million, while research and development expenses reached $332.3 million.
Global Truck Deliveries and Market Outlook
PACCAR delivered 40,100 trucks globally during the third quarter of 2026. The company expects demand for commercial vehicles to remain supported by fleet replacement activity, economic conditions and infrastructure investment in key markets.Kenworth and Peterbilt customers are beginning to replace older vehicles with newer, more fuel-efficient trucks. According to John Rich, PACCAR’s executive vice president and chief technology officer, the company is experiencing a positive year for truck demand and anticipates continued opportunities in 2027.
In the United States and Canada, retail sales for the Class 8 heavy-duty truck market are estimated to reach between 240,000 and 260,000 vehicles in 2026. The market is expected to record sales of between 240,000 and 280,000 trucks in 2027.Economic growth in the United States and continued investment in infrastructure are among the factors expected to support demand for heavy-duty commercial vehicles. Fleet operators are also looking to improve fuel efficiency and operating performance by introducing newer trucks into their operations.
European Truck Market
The European truck market continues to provide opportunities for PACCAR through its DAF brand. Registrations in the European market for trucks weighing more than 16 tonnes are estimated to range between 300,000 and 320,000 vehicles in 2026. A similar market range is expected in 2027.Jim Walenczak, president of DAF, highlighted the company’s focus on vehicle aerodynamics, fuel efficiency and driver comfort. These features are designed to help customers improve operating performance and manage transportation costs.At the IAA Transportation 2026 commercial vehicle exhibition in Hanover, Germany, DAF showcased a range of products, including clean-diesel and battery-electric trucks. The company also highlighted its DAF XD Electric and XF Electric models, recognised as International Truck of the Year 2026.PACCAR continues to support its European customers through its dealer network, which provides truck sales, aftermarket services and parts distribution.
South American Truck Market
South America is another important market for PACCAR’s commercial vehicle business. The region’s truck market for vehicles weighing more than 16 tonnes is projected to reach between 100,000 and 105,000 units in 2026.For 2027, the market is expected to grow to between 105,000 and 115,000 vehicles.Lance Walters, PACCAR’s vice president, said customers in South America value the durability and reliability of DAF and Kenworth trucks. These characteristics are particularly important for operators working in demanding conditions and across varied transportation routes.
PACCAR Introduces Connected Transportation Platform
PACCAR announced the launch of PACCAR Connect, a next-generation transportation technology platform designed to improve fleet productivity and integrate digital services into commercial truck operations.The company unveiled the platform at the American Trucking Associations’ Management Conference & Exhibition in North Carolina. PACCAR Connect combines an integrated vehicle display with fleet telematics systems, truck data, customer-specific productivity applications and electronic driver logs.The platform is intended to bring multiple operational tools together in a unified environment, enabling fleet operators and drivers to access relevant information and services more efficiently.
PACCAR Connect is scheduled to become available in Kenworth and Peterbilt Class 8 trucks beginning in early 2027.Lily Ley, PACCAR’s chief information officer, said the platform advances the company’s transportation solutions strategy. It is designed to improve customer productivity while creating opportunities for additional revenue through connected services.
The introduction of PACCAR Connect reflects the growing importance of digital technologies in commercial transportation. Fleet operators increasingly rely on vehicle data, telematics and integrated software to monitor performance, manage drivers and support operational decision-making.By combining these functions within a single platform, PACCAR aims to strengthen its technology offering alongside its traditional truck manufacturing business.
PACCAR Parts Achieves Record Quarterly Revenue
PACCAR Parts delivered record third-quarter revenue of $1.78 billion in 2026, reinforcing the importance of the aftermarket business to the company’s overall financial performance.Revenue for the first nine months of 2026 reached $5.24 billion, compared with $5.14 billion during the corresponding period in 2025.The division reported pretax income of $404.4 million in the third quarter, compared with $410 million in the same quarter last year. For the first nine months, pretax income totalled $1.22 billion, compared with $1.25 billion in 2025.PACCAR Parts attributed its performance to investments in distribution infrastructure, dealer inventory management, fleet services and its TRP all-makes parts brand.
Bryan Sitko, PACCAR’s vice president and general manager of PACCAR Parts, highlighted the contribution of these initiatives to the business.The company also plans to expand its European logistics network with a new parts distribution centre in France. The facility will support DAF dealers and customers in the region and complement the distribution centre in Massbach, Germany, which opened in 2024.PACCAR Parts currently operates 21 global parts distribution centres covering more than four million square feet. These facilities support over 2,000 DAF, Kenworth and Peterbilt sales, parts and service locations, as well as more than 350 TRP stores.The distribution network enables PACCAR to provide parts availability and aftermarket support across multiple markets. Its continued investment in logistics infrastructure is intended to strengthen service capabilities and support the needs of commercial vehicle operators.
PACCAR Financial Services Delivers Higher Pretax Income
PACCAR Financial Services (PFS) reported stronger pretax income in the third quarter of 2026, benefiting from steady finance margins and improvements in the used-truck market.The division generated pretax income of $138.1 million, an increase of 9.4% from $126.2 million in the third quarter of 2025. Quarterly revenue was $558.9 million, compared with $565.3 million a year earlier.
For the first nine months of 2026, PFS recorded pretax income of $377.7 million, up from $370.5 million in the corresponding period last year. Revenue increased to $1.65 billion from $1.64 billion.Craig Gryniewicz, PACCAR’s vice president, said the division benefited from stable financing margins and an improving market for used trucks. He also highlighted its technology-enabled credit application and loan servicing processes, which support Kenworth, Peterbilt and DAF customers throughout different stages of the business cycle.PFS manages a portfolio of 222,000 trucks and trailers, with total assets of $22.5 billion. Its operations also include PacLease, a full-service truck leasing business with a fleet of 37,000 vehicles.
Terren Drake, president of PACCAR Financial Corp., said the company’s strong balance sheet and A+/A1 credit ratings provide access to commercial paper and medium-term note markets.PFS issued $2.38 billion in medium-term notes during the first nine months of 2026 to support its business and market-share objectives. The division provides financing services for PACCAR truck sales in 26 countries across four continents.
Continued Investment in Manufacturing and Research
PACCAR has invested $9.5 billion over the past decade in manufacturing facilities, next-generation products and advanced technologies. These investments reflect its long-term strategy of maintaining product quality, improving operational efficiency and developing new transportation solutions.In the third quarter of 2026, the company allocated $137.6 million to capital projects and $108.9 million to research and development.
For the full year 2026, capital expenditure is projected to range between $650 million and $700 million, while research and development expenses are estimated at $440 million to $460 million.In 2027, PACCAR expects capital expenditure to remain between $650 million and $700 million. Research and development spending is projected to increase to between $460 million and $500 million.Brice Poplawski, PACCAR’s senior vice president and chief financial officer, said the company’s financial strength enables continued investment in future products and technologies.
Priority areas include next-generation clean-diesel engines, hybrid and battery-electric powertrains, connected vehicle services, parts distribution and manufacturing capabilities.These investments are intended to help PACCAR respond to changing customer requirements, technological developments and the industry’s ongoing transition towards more efficient commercial transportation.
PACCAR Strengthens Its Position in Commercial Transportation
PACCAR is a global technology and manufacturing company that designs, produces and supports light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt and DAF brands.In addition to truck manufacturing, the company develops advanced powertrains and provides financial services, information technology and parts distribution related to its principal business.
Its latest financial results demonstrate the contribution of its core truck operations, aftermarket services and financing business to overall performance. Record quarterly revenue from PACCAR Parts, higher earnings from PACCAR Financial Services and the introduction of PACCAR Connect further illustrate the company’s efforts to diversify its transportation solutions.PACCAR’s planned investments in electric and hybrid powertrains, connected vehicle technologies and distribution infrastructure are also expected to support its long-term strategy in commercial transportation.
The company scheduled a conference call with securities analysts to discuss its third-quarter 2026 financial results for October 27, 2026, at 9:00 a.m. Pacific Time. The webcast was to be accessible through the company’s homepage under the “Q3 Earnings Webcast” section and available as a recording through November 3, 2026.PACCAR shares trade on the NASDAQ Stock Market under the symbol PCAR.With increased quarterly revenue, stronger net income and continued investment in products and technology, PACCAR is seeking to strengthen its position in the global truck market while expanding the services and digital solutions available to commercial transportation customers.
About
PACCAR delivered strong third-quarter 2026 results, with revenue rising 19% and net income increasing approximately 44% year over year. Record PACCAR Parts revenue, stronger truck segment margins and improved financial services earnings supported performance. The company is also investing in connected truck technology, electric powertrains and logistics infrastructure to strengthen its position in the global commercial vehicle market.