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PACCAR Q2 revenue climbs as class 8 truck demand corporations

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PACCAR Q2 revenue climbs as class 8 truck demand corporations

PACCAR posted a stronger second quarter Tuesday, reporting higher profits despite revenue remaining nearly flat from the same period last year.

The truck manufacturer, which builds Kenworth, Peterbilt and DAF trucks, reported second-quarter earnings of $1.43 per diluted share, up 6 cents from a year ago. Net income climbed to $752 million, a 4% increase year over year and a 24% jump from the first quarter of 2026.

Revenue came in at $7.55 billion, compared with $7.51 billion during the same quarter last year.

The stronger profit came even as PACCAR delivered fewer trucks.

The company delivered 38,700 trucks worldwide during the quarter, down about 2% from last year. Deliveries in the U.S. and Canada fell to 22,000 trucks from 23,000.

Higher parts sales and stronger truck margins helped offset the lower volume. PACCAR’s truck segment posted a nearly 17% increase in pretax profit compared with the second quarter of last year.

“PACCAR achieved very good revenues and increased net income by 24% in the second quarter of 2026 compared to the preceding quarter,” CEO Preston Feight said.

Feight said production rates increased during the quarter as truck orders strengthened and freight conditions improved for customers.

Class 8 Demand Showing Signs of Improvement

PACCAR expects Class 8 retail sales in the U.S. and Canada to reach between 230,000 and 270,000 trucks in 2026.

Through the first six months of the year, the company delivered 39,800 trucks in the U.S. and Canada, down from 45,200 during the same period last year.

But improving freight rates and an aging truck population could push more fleets back into the market.

PACCAR Executive Vice President and Chief Technology Officer John Rich said tighter freight capacity is helping push rates higher while many fleets are also operating older equipment.

“Customers are benefiting from higher freight rates due to constrained industry freight capacity,” Rich said. “Fleet age has increased as well, providing an opportunity for customers to refresh their fleets with newer, more fuel-efficient trucks.”

Demand was stronger in Europe.

DAF delivered 11,200 trucks during the quarter, an increase of about 6% from last year. European revenue also increased roughly 7% to $1.79 billion.

PACCAR Parts Sets Revenue Record

PACCAR’s parts business continued to be one of the company’s strongest performers.

PACCAR Parts reported record quarterly revenue of $1.75 billion, up 2% from the previous year, while pretax income reached $417 million.

The company currently operates 21 parts distribution centers worldwide covering more than 4 million square feet.

The network supports more than 2,000 Kenworth, Peterbilt and DAF dealer locations along with more than 350 TRP stores.

The parts business could also benefit as freight activity increases and fleets keep trucks on the road longer.

“The improved North American freight market will increase our customers’ truck utilization, which will deliver increased parts and service business,” said Bryan Sitko, PACCAR vice president and PACCAR Parts general manager.

Financial Services Shows Continued Carrier Pressure

PACCAR Financial Services reported pretax income of $124.1 million on revenue of $549.7 million, both slightly higher than last year.

The company’s finance portfolio includes approximately 222,000 trucks and trailers with total assets of $22.3 billion.

One number that stands out, however, is PACCAR’s provision for losses on receivables.

Loss provisions increased to $39.4 million during the quarter, compared with $29.2 million a year earlier.

For the first half of 2026, provisions climbed to $83.5 million from $47.5 million during the same period last year.

The increase suggests some trucking companies are still facing financial pressure even as used truck values begin improving.

“PFS achieved good first half results due to its steady finance margins and an improving used truck market,” PACCAR Vice President Craig Gryniewicz said.

PACCAR Continues Investing Ahead of Next Truck Cycle

PACCAR spent $138.7 million on capital projects and another $114.3 million on research and development during the second quarter.

The company expects full-year capital spending between $700 million and $750 million, while research and development expenses are projected between $450 million and $480 million.

PACCAR said those investments will continue going toward next-generation diesel engines, hybrid and battery-electric powertrains, connected vehicle technology and expanded manufacturing capabilities.

Regulatory changes could also play a major role in truck purchasing decisions heading into 2027.

Rich pointed to clarification issued by the U.S. Environmental Protection Agency on July 9 regarding upcoming emissions regulations.

“The U.S. EPA provided helpful clarification of emissions regulations that will be beneficial to customers as they make truck purchasing decisions for the second half of this year and 2027,” Rich said.

Why It Matters

PACCAR is one of the largest commercial truck manufacturers in North America, making demand for Kenworth and Peterbilt trucks an important indicator of where fleet spending is headed.

The company’s rising production rates, stronger orders and improving freight conditions suggest some fleets may finally be preparing to replace older equipment after delaying purchases.

If that trend continues, increased replacement activity combined with tighter freight capacity could help support stronger freight rates heading into 2027.

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