PACCAR Q3 profit jumps 44% on higher truck margins and record parts sales

PACCAR's third-quarter profit jumped 44% as revenue rose 19%, with the Kenworth, Peterbilt and DAF truck maker citing higher truck margins and record parts sales.

Net income climbed to $847.5 million, or $1.61 per diluted share, from $590.0 million, or $1.12, a year earlier, according to the earnings release attached to its 8-K on Tuesday. Revenue rose to $7.94 billion from $6.67 billion.

"The increase in quarterly profits resulted from higher truck segment margins and strong overall business performance," CEO Preston Feight said.

Parts and finance

PACCAR Parts posted record quarterly revenue of $1.78 billion and pretax income of $404.4 million. PACCAR Financial Services earned $138.1 million before taxes. Global truck deliveries totaled 40,100 units.

The company generated $847.7 million of cash from operations in the quarter and spent $137.6 million on capital investments and $108.9 million on research and development.

Market outlook

PACCAR estimates 2026 U.S. and Canada Class 8 retail sales at 240,000 to 260,000 trucks and expects 240,000 to 280,000 in 2027. European registrations in the above-16-tonne segment are estimated at 300,000 to 320,000 trucks this year, with a similar range in 2027.

Executive Vice President and Chief Technology Officer John Rich said Kenworth and Peterbilt customers "are beginning to refresh their fleets," and that the company expects good truck demand to continue next year.

For the first nine months, net income was $2.20 billion, or $4.18 per share, versus $1.82 billion, or $3.45, in a prior-year period that included a $264.5 million after-tax charge tied to civil litigation in Europe.

By the numbers

• Q3 revenue: $7.94 billion, up 19%
• Net income: $847.5 million, up 44%
• EPS: $1.61 vs. $1.12
• Record parts revenue: $1.78 billion
• 2027 U.S./Canada Class 8 outlook: 240,000 to 280,000 trucks

Sources

1. PACCAR INC, Form 8-K with third quarter 2026 earnings release, filed Oct. 27, 2026 (accession 0001193125-26-432729)

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