Paccar (PCAR) Q1 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Tue, April 28, 2026 astatine 11:31 AM CDT 26 min read

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Date

Tuesday, April 28, 2026 astatine 11 a.m. ET

Call participants

• Chief Executive Officer — Preston Feight

• General Manager, PACCAR Parts — Kevin D. Baney

• Director, Investor Relations — Ken Hastings

• Assistant Controller — Brice J. Poplawski

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Full Conference Call Transcript

Preston Feight: Hey. Thanks, Ken. Good morning, everyone. In the archetypal quarter, PACCAR Inc's outstanding employees did an fantabulous occupation providing our customers with the highest prime trucks and proscription solutions successful the industry. I truly admit their hard work, precocious performance, and dedication arsenic we summation physique rates successful our factories each astir the world. PACCAR Inc achieved revenues of $6.8 cardinal and nett income of $605 cardinal successful the quarter. These results were generated by beardown PACCAR Parts and Financial Services results, arsenic good arsenic coagulated maturation successful the motortruck businesses. PACCAR Parts achieved quarterly revenues of $1.7 cardinal and quarterly pretax income of $402 million. PACCAR Financial had a beardown quarter, achieving pretax income of $116 million.

Looking astatine this year's U.S. and Canadian motortruck market, we estimation it to beryllium successful a scope of 230 1000 to 270 1000 units. The marketplace is strengthening arsenic operator and fleet capableness becomes constricted and customers statesman to recognize higher freight rates. This is somewhat moderated by substance and different operating outgo volatility. In the archetypal quarter, Kenworth launched a caller C 580 heavy-duty vocational truck. This ample multi-axle exemplary was introduced astatine the CONEXPO commercialized amusement and is simply a unsocial ace heavy-duty motortruck utilized successful terrible work applications astir the world. We task the 2026 European above-16-ton marketplace size to beryllium successful a scope of 280 1000 to 320 thousand.

DAF’s premium aerodynamic trucks supply customers with the latest exertion and champion operating efficiency. As mentioned connected the January net call, the DAF XF and XD electrical vehicles won the International Truck of the Year 2026 honor. In the archetypal quarter, DAF extended its EV enactment by introducing caller flagship XG and XG+ electrical vehicles. In addition, the XF Electric earned different award, the 2026 Eco-Friendly Truck of the Year successful Spain. This year's South American above-16-ton market, wherever DAF trucks are desired by customers for their durability and precocious technology, is expected to beryllium successful a scope of 100 1000 to 110 1000 vehicles. In the archetypal quarter, PACCAR Inc delivered 33 1000 1 trucks.

In the 2nd quarter, we volition present an estimated 37 1000 to 38 1000 vehicles. PACCAR Inc's truck, parts, and different gross margins accrued from 12% to 13.1% successful the archetypal 4th owed to improved motortruck conception performance. Second 4th margins are forecast to grow to astir 13.5% arsenic planetary accumulation volumes increase. We expect continued show improvements successful the 2nd fractional of the twelvemonth arsenic our customers payment from our local-for-local manufacturing strategy, acquisition amended operating conditions, and acquisition trucks successful beforehand of the coming 2027 emissions change. PACCAR Inc's exceptional scope of trucks, compelling parts business, industry-leading fiscal services, and precocious exertion strategy presumption the institution good for an fantabulous future.