PACCAR third-quarter profit rises 44% to $847.5 million on higher truck margins

PACCAR Inc. (PCAR) said Tuesday in a regulatory filing that it earned $847.5 million, or $1.61 per diluted share, in the third quarter of 2026. That compares with $590.0 million, or $1.12 per diluted share, a year earlier.

Revenue rose 19% to $7.94 billion from $6.67 billion a year earlier.

Here’s how the company did:

• Earnings per share: $1.61 per diluted share, vs. $1.12 a year earlier
• Net income: $847.5 million, vs. $590.0 million a year earlier
• Revenue: $7.94 billion, vs. $6.67 billion a year earlier
• Global truck deliveries: 40,100 units, vs. 31,900 a year earlier

Net income rose 44% from a year earlier. The company said the increase in quarterly profits resulted from higher truck segment margins and strong overall business performance.

“PACCAR achieved excellent results in the third quarter of 2026,” CEO Preston Feight said.

“I am very proud of our employees who design, build, and deliver the company’s trucks and transportation solutions to our customers,” Feight said.

Truck segment

Truck segment revenue was $5.60 billion, compared with $4.38 billion a year earlier. Truck pretax income was $454.5 million, up from $102.5 million in the third quarter of 2025.

Deliveries in the United States and Canada were 23,800 units, compared with 17,100. Europe deliveries were 10,400, against 10,100, and deliveries in other markets were 5,900, against 4,700.

“We are experiencing a good year of truck demand in 2026 and we anticipate this to continue next year, supported by U.S. economic growth and continued investments in infrastructure,” said John Rich, PACCAR executive vice president and chief technology officer.

The company estimates U.S. and Canada Class 8 truck retail sales at 240,000 to 260,000 vehicles in 2026, and expects a range of 240,000 to 280,000 trucks in 2027. European truck registrations in the above 16-tonne segment are estimated at 300,000 to 320,000 this year, with a similar range in 2027. The South American above 16-tonne market is projected at 100,000 to 105,000 trucks this year and 105,000 to 115,000 vehicles in 2027.

PACCAR Parts

PACCAR Parts revenue was a record $1.78 billion in the third quarter, compared with $1.72 billion a year earlier. Nine-month parts revenue was $5.24 billion, against $5.14 billion.

Parts pretax income was $404.4 million in the quarter, compared with $410.0 million in the third quarter of 2025. For the first nine months, parts pretax income was $1.22 billion, against $1.25 billion.

Bryan Sitko, PACCAR vice president and PACCAR Parts general manager, said, “PACCAR will add a PDC in France to enhance its logistics infrastructure to support our DAF dealers and customers in the region.” PDC stands for parts distribution center.

The company said its 21 global parts distribution centers have more than 4 million square feet and support more than 2,000 DAF, Kenworth and Peterbilt sales, parts and service locations, and more than 350 TRP stores.

PACCAR Financial Services

PACCAR Financial Services pretax income was $138.1 million, 9.4% higher than $126.2 million a year earlier. Revenue was $558.9 million, compared with $565.3 million. For the first nine months, pretax income was $377.7 million, against $370.5 million.

“PACCAR’s strong balance sheet, complemented by its A+/A1 credit ratings, enables PFS to have excellent access to the commercial paper and medium-term note markets,” said Terren Drake, PACCAR Financial Corp. president. PFS issued $2.38 billion of medium-term notes in the first nine months, the company said in the filing.

Nine-month results and cash

For the first nine months, net income was $2.20 billion, or $4.18 per diluted share, compared with $1.82 billion, or $3.45 per diluted share. Revenue was $22.26 billion, against $21.62 billion.

The 2025 period included a $264.5 million after-tax charge related to civil litigation in Europe, the company said in the filing.

Net cash provided by operating activities was $2.52 billion for the nine months, compared with $3.27 billion a year earlier. The company declared dividends of 35 cents per share in the third quarter, compared with 33 cents a year earlier.

Capital spending and outlook

Capital investments were $137.6 million in the third quarter and $411.8 million for the nine months. Research and development expenses were $108.9 million in the quarter and $332.3 million for the nine months.

For 2026, the company projects capital expenditures of $650 million to $700 million and research and development expenses of $440 million to $460 million. For 2027, it estimates capital expenditures of $650 million to $700 million and research and development expenses of $460 million to $500 million.

Chief Financial Officer Brice Poplawski said, “PACCAR is continuing to invest in next generation clean diesel, hybrid and battery-electric powertrains, integrated connected vehicle services, growing its parts business and enhancing its manufacturing capabilities.”

PACCAR also unveiled PACCAR Connect, a transportation solutions platform with an integrated vehicle display, which will be available in Kenworth and Peterbilt Class 8 trucks beginning in early 2027, the company said.

PACCAR will hold a conference call with securities analysts on Oct. 27, 2026, at 9:00 a.m. Pacific time. A recording will be available through Nov. 3, 2026. PACCAR shares are listed on the NASDAQ Stock Market under the symbol PCAR.