Paccar reports $900 million in net income for third quarter

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Updated Oct 24, 2024
A red Peterbilt 567 and red Peterbilt 589 configured for car hauling.
The Peterbilt 5678 UltraLow Roof Day Cab and Peterbilt 589 UltraLow Roof 58-inch Sleeper.
Paccar

Paccar detailed its third quarter on Tuesday, highlighting "robust" quarterly sales and profits. 

The company detailed a net income of $972.1 million in the third quarter, compared to $1.23 billion in the third quarter of last year. Revenues for the same period were $8.24 billion in 2024 and $8.7 billion in 2023. 

[RELATED: Paccar announces 'excellent' earnings news for Q2]

"Paccar achieved excellent revenues and net income in the third quarter of 2024," says Preston Feight, CEO of Paccar. "Paccar's truck and parts operations achieved robust quarterly sales and profits due to industry-leading trucks and strong aftersales performance. Paccar Financial Services achieved good results due to its high quality portfolio. I am very proud of our employees for producing the highest quality trucks and transportation solutions for our customers." 

Other details from the third quarter include: 

  • Net sales and revenues of $8.24 billion and a net income of $972.1 million. 
  • Global truck deliveries of 44,900 units. 
  • Paccar Parts revenues of $1.66 billion and a pretax income of $406.7 million. 
  • Paccar Financial Services pretax income of $106.5 million. 
  • $1.29 billion cash generated from operations. 
  • Stockholder equity of $18.66 billion. 

"Kenworth and Peterbilt's strong 31.1% market share this year reflects the superior quality and operating performance of our trucks," says Kevin Baney, Paccar senior vice president. "Strong infrastructure spending in the U.S. has been good for Kenworth and Peterbilt's business due to our market share leadership in vocational trucks. The less-than-truckload segment is also performing well, while the truckload segment remains soft." 

U.S. and Canada Class 8 retail sales in 2024 are expected to be 250,000-270,000 vehicles. For 2025, those numbers move to 250,000-280,000 vehicles. 

New Peterbilt configuration

Peterbilt began production of two new vehicle configurations for the car carrier market. The Model 567 UltraLow Roof Day Cab and the Model 589 UltraLow Roof 58-inch Sleeper. The trucks come with Paccar MX-11 and MX-13 engines with the TX-12 transmission. 

Paccar Parts

Paccar Parts reported pretax profit of $406.7 million in the third quarter compared to $412.3 million last year. Revenues were $1.66 billion, an increase of 5% over Q3 2023. 

"Third-quarter parts sales and profits benefited from industry-leading logistics operations in Paccar's 19 strategically located parts distribution centers (PDCs)," says Laura Bloch, Paccar vice president and Paccar Parts general manager. "Paccar Parts' technology solutions such as managed dealer inventory and innovative programs such as fleet services increase customers' vehicle uptime and financial performance." 

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Paccar will open a new, 240,000-square-foot PDC in Germany in November. The company has 19 PDCs that support more than 2,000 DAF, Kenworth and Peterbilt dealer sales, parts and service locations, and more than 300 TRP stores. 

Financial services

Paccar Financial Services earned pretax income of $106.5 million in the third quarter, compared to $133.8 million in the third quarter of 2023. It had third-quarter revenues of $536.1 million, compared to $464.1 million. 

"PFS achieved .good third-quarter results due to its high quality portfolio," says Todd Hubbard, Paccar vice president. "The used truck market has normalized in North America but remains soft in Europe, which is reflected in PFS' quarterly results this year. PFS is a leader in the market with its superior Kenworth, Peterbilt and DAF products, innovative technologies that provide seamless credit application and loan servicing processes, and its support of customers in all phases of the business cycle."

PFS has a portfolio of 232,000 trucks and trailers, with total assets of $22.48 billion. This includes PacLease, a full-service truck leasing company with a fleet of 41,000 vehicles. 

"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," says Craig Gryniewicz, Paccar Financial Corp. president. "PFS profitability supports the sale of Paccar trucks in 26 countries on four continents." 

Capital investment and R&D

Paccar says it invested $8.4 billion in new and expanded facilities and new products and technologies in the past 10 years. Capital investments are estimated to be $760-800 million and research and development $450-470 million this year. For 2025, Paccar estimates it will spend $700-800 million in capital projects and $480-530 million in research and development. 

"Paccar is investing in additional global engine manufacturing capacity and int he construction of a new engine remanufacturing facility that will be located in Columbus, Mississippi," says Harrie Schippers, Paccar's president and CEO. "Truck factory investments include the expansion at Kenworth Chillicothe, Ohio; Paccar Mexico; and the DAF electric truck assembly plant in Eindhoven, Netherlands. In addition to the capital and R&D investments, the company expects to invest $600-900 million in its battery joint venture, Amplify Cell Technologies, over the next three years." 

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