PACCAR Shares Lower After Q3 Earnings Beat, Record Parts Revenue, Stronger Truck Margins

PACCAR Inc. (NASDAQ:PCAR) stock is trading lower by about 2% on Tuesday after the heavy-duty truck manufacturer reported mixed third-quarter results, with earnings per share beating estimates but revenue falling short of expectations.

Reported quarterly earnings of $1.61 per share, beating the analyst consensus estimate of $1.59 per share.

Revenue (comprising the Truck, Parts and Other segment) rose 20.8% year over year to $7.378 billion, missing the consensus estimate of $7.876 billion.

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Quarterly Revenue and Income Climb

Consolidated net sales and revenues increased by 19% year over year to $7.94 billion.

PACCAR reported consolidated net income of $847.5 million, a year-over-year increase of 44%, driven by higher truck segment margins.

The company recorded global truck deliveries of 40,100 units in the quarter.

The company held cash and cash equivalents of $6.15 billion at the end of the period on Sept. 30.

PACCAR invested $137.6 million in capital projects and $108.9 million in research and development expenses in the third quarter of 2026.

Over the past decade, it has invested $9.5 billion in facilities, next-generation products, and state-of-the-art technologies.

The company unveiled its next-generation transportation solution, PACCAR Connect, for its Kenworth and Peterbilt Trucks brands

CFO Brice Poplawski said the company remains focused on investing in next-generation clean diesel, hybrid and battery-electric powertrains, integrated connected vehicle services and expanding its parts business and manufacturing capabilities.

For 2026, PACCAR projects capital expenditures of $650 million to $700 million and research and development expenses of $440 million to $460 million.

Management expects capital expenditures of $650 million to $700 million and R&D spending of $460 million to $500 million in 2027.

Global Truck Market Demand Remains Robust

For 2026, U.S. and Canada Class 8 truck industry retail sales are estimated to be in a range of 240,000 to 260,000 trucks.

The company said Class 8 truck industry retail sales for 2027 are expected to be in a range of 240,000 to 280,000 trucks.

CTO John Rich anticipates continued demand supported by U.S. economic growth and continued investments in infrastructure.

European truck industry registrations in the above 16-tonne segment are estimated to be in the range of 300,000 to 320,000 trucks in 2026 and 2027.

Segment Performance: Driven by PACCAR Parts and PACCAR Financial Services

Quarterly sales for the Truck segment reached $5.6 billion, compared to $4.38 billion a year earlier.

PACCAR Parts segment generated record quarterly revenue of $1.78 billion, supported by investments in distribution centers, transportation solutions and its TRP aftermarket parts brand.

The segment’s pretax profit narrowed to $404.4 million, compared to $410.0 million in the third quarter of 2025.

PACCAR Financial Services, or PFS segment, achieved revenues of $558.9 million as compared to $565.3 million last year.

PFS reported pretax income of $138.1 million, up 9.4% year over year, driven by steady financing margins and an improving used truck market.

PFS had a portfolio of 222,000 trucks and trailers, with total assets of $22.5 billion.

PCAR Price Action

PACCAR shares were down 7.41% at $101.63 at the time of publication on Tuesday, according to Benzinga Pro data.

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