Key financial results
- PACCAR delivered revenues of $7.94 billion and net income of $847.5 million in the third quarter, representing 19% revenue growth and 44% profit growth compared to the same period last year.
PACCAR delivered excellent revenues of $7.94 billion and net income of $847.5 million in the third quarter.
- Trucks, part and other gross margins were 14.5% in the third quarter.
PACCAR's third quarter trucks, part and other gross margins were strong 14.5%.
- Cash generated through the first nine months was $2.5 billion, which is greater than net income.
Business segment results
- Parts: PACCAR Parts achieved record quarterly revenues of $1.78 billion, driven by investments in parts distribution growth, the TRP all-makes brand, and expanding dealer retail locations.
PACCAR Parts had record quarterly revenues of $1.78 billion
- Financial Services: PACCAR Financial Services pretax income reached $138 million, an increase of 9.4% compared to the same period last year, reflecting stable finance margins and higher used truck pricing.
PACCAR Financial Services $138 million in profit was an increase of 9.4%
- Trucks: Deliveries reached 40,100 trucks in the third quarter due to strong customer orders, though volume was somewhat affected by supply chain constraints.
PACCAR increased deliveries to 40,100 trucks in the third quarter.
Capital allocation
- Capital expenditures for the year are projected to be between $650 million and $700 million.
This year's capital expenditures are projected to be between $650 million and $700 million
- Research and development expenses for the year are projected to be between $440 million and $460 million.
research and development expenses will be $440 million to $460 million.
- In 2027, the company estimates capital projects of $650 million to $700 million and research and development expenses of $460 million to $500 million.
In 2027, we estimate the company will invest $650 million to $700 million in capital projects and $460 million to $500 million in research and development expenses.
Industry trends and dynamics
- The U.S. and Canadian Class A markets for this year are estimated to be in a range of 240,000 to 260,000 trucks, driven by economic growth, infrastructure investments, and freight market recovery.
We estimate this year's U.S. and Canadian Class A markets to be in a range of 240,000 to 260,000 trucks
- The European above 16-ton market is projected to be between 300,000 and 320,000 units this year, driven by steady economic growth and truck replacement.
In Europe, we project this year's above 16-ton market to be in a range of 300,000 to 320,000 units
- The South American above 16-ton truck market is estimated to be in the range of 100,000 to 105,000 vehicles for this year.
We estimate this year's South American above 16-ton truck market to be in the range of 100,000 to 105,000 vehicles
Competitive landscape
- Management noted that price realization remains favorable on truck pricing.
favorable price realization we're getting on our truck price.
- PACCAR Parts gained market share despite a constrained operating environment for customers.
they've done a really nice job in that factor.
Macroeconomic environment
- Customers are managing elevated operating costs, including higher diesel prices and unseated trucks.
customers have elevated operating costs, they've got higher diesel prices, they've got an increased number of unseated trucks.
- Commercial driver license enforcement changes in 2026 pulled some trucks out of service and reduced miles driven on newer equipment, temporarily postponing parts purchases.
the enforcement of CDLs went in 2026 and they pulled a lot of trucks out of service.
Growth opportunities and strategies
- PACCAR introduced PACCAR Connect, a next-generation transportation solutions platform integrating telematic systems, truck data, customer applications, Apple CarPlay, and electronic driver logs.
PACCAR proudly introduced its next-generation transportation solutions platform called PACCAR Connect.
- Technology investments include next-generation clean diesel, hybrid and battery electric powertrains, parts business scaling, manufacturing capabilities, and connected vehicle offerings.
Key technology and innovation investments include next-generation clean diesel, hybrid and battery electric powertrain, selling the parts business
Financial guidance and outlook
- Fourth quarter truck deliveries are anticipated to increase and be in the range of 41,000 to 43,000.
Fourth quarter deliveries are anticipated to increase and be in the range of 41,000 to 43,000.
- Fourth quarter gross margins are expected to remain high and be in the range of 14% to 15%.
Fourth quarter gross margin should remain high and again, be in the range of 14% to 15%.
- U.S. and Canadian Class A markets for 2027 are projected to grow and be in a range of 240,000 to 280,000 trucks.
next year to grow and be in a range of 240,000 to 280,000.
- The European above 16-ton market for 2027 is projected to be in a similar range of 300,000 to 320,000 units.
and in a similar range for 2027.
- The South American above 16-ton truck market for 2027 is expected to be up slightly and in the range of 105,000 to 115,000 trucks.
next year to be up slightly and in the range of 105,000 to 115,000 trucks.
Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Revenues | $7.94 billion | 19% growth compared to the same period last year |
| Net income | $847.5 million | 44% profit growth compared to the same period last year |
| PACCAR Parts revenues | $1.78 billion | Record quarterly revenues |
| PACCAR Financial Services pretax income | $138 million | 9.4% increase compared to the same period last year |
| Truck deliveries | 40,100 trucks | Not stated |
| Trucks, part and other gross margins | 14.5% | Not stated |
How management sounded
Balanced (+35 on our -100 to +100 scale). Management expressed strong confidence driven by record financial results, robust demand, and favorable pricing, despite minor supply chain headwinds. Management sounded more upbeat than on 20% of the 302 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Read the analyst Q&A summary and guidance and outlook for this call.
What to watch before the next call
- Finalization of government NCP levels for 2027 emissions regulations.
- Supplier ramp-up progress and its impact on fourth quarter truck deliveries.
- Fleet adoption trends for 200-milligram engines versus new compliant platforms.
- Freight market recovery and its effect on PACCAR Parts segment growth.
Earlier calls
- Q2 2026 (Jul 28, 2026), tone Balanced: PACCAR reported Q2 revenues of $7.5 billion and net income of $752 million, driven by strong truck division performance and record parts revenues.
