Here’s what you need to know:
- Truck sales are down, but production backlogs are increasing as orders tick up.
- Net income up to $605.3 million on strong Paccar Parts revenues.
- Paccar Financial Services also sees revenues climb above $500 million.
Paccar's truck sales dropped about 13% in the first quarter when compared to the same period in 2025, the company said in an earnings report released Tuesday. Quarterly revenues were $6.78 billion, down from $7.44 billion, but net income was up $605.3 million from $505.1 million.
"Paccar reported good revenues and increased net income in the first quarter of 2026 compared to the fourth quarter last year," says Preston Feight, CEO. "These results were generated by strong Paccar Parts and Financial Services results and growth in the truck business. Paccar's production backlog is increasing due to stronger demand. I am very proud of our employees and dealers who have delivered outstanding trucks and transportation solutions to our customers."
Truck market outlook
Paccar estimates the North American Class 8 truck market to be 230,000-270,000 in 2026.
"The U.S. and Canada truck market has enjoyed a positive inflection as customers benefit from higher freight rates due to reduced trucking industry capacity," says Kevin Baney, Paccar's president. "Customer demand is improving despite fuel and other operating cost volatility as customers now have a better understanding of the 2027 emissions cost impact."
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In the first quarter, Kenworth debuted the C580 truck, designed for demanding vocational applications such as mining and petroleum field work. Production will begin in January 2027.
In Europe, registrations above 16 tonnes is projected to be 280,000-320,000 trucks. DAF Trucks introduced new DAF XG and XG+ electric trucks. The DAF XF Electric truck was recognized as the 2026 eco-friendly truck of the year by the National Transport Awards program in Spain.
South America's above 16-tonne market is projected to come in between 100,000-110,000 this year.
Paccar Parts
First quarter Paccar Parts revenue was up in Q1 2026, hitting $1.71 billion. It spans 21 global distribution centers with more than 4 million square feet supporting more than 2,000 DAF, Kenworth and Peterbilt sales, parts and service locations and more than 350 TRP stores.
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"Paccar Parts provides aftermarket parts and transportation solutions that deliver greater uptime and profitability for customers," says Bryan Sitko, Paccar's vice president and Paccar Parts general manager. "Paccar Parts' excellent performance reflects the benefit of investments in new parts distribution centers, TRP all-makes parts, TRP stores and world-class logistics capabilities."
Paccar Financial Services
Paccar Financial Services (PFS) has a portfolio of 221,000 trucks and trailers and total assets of $223. billion, the Q1 report says. It had a pretax income of $115.5 million, down slightly year over year, but revenues were up to $542.2 million.
"PFS achieved strong quarterly results due to its high quality portfolio," says Craig Gryniewicz, Paccar vice president. "PFS is a leader in the market with its superior Kenworth, Peterbilt and DAF products, innovative technologies that provide seamless credit application and loan processing and its support of customers in all phases of the business cycle."
PacLease, with 37,000 vehicles, is included in PFS.
"Paccar's strong balance sheet, complemented by its A+/A1 credit ratings, enables PFS to offer competitive retail financing to Kenworth, Peterbilt and DAF dealers and customers in 26 countries on four continents," says Terren Drake, Paccar Financial Corp. president. "PFS has excellent access to the debt markets, issuing $400 million in medium-term notes during the first quarter of 2026."
Capital and R&D investments
Paccar invested $135.5 million in capital projects and $109.1 million in research and development in the first quarter, the report says.
"Capital expenditures are projected to be in the range of $725-$775 million and research and development expenses are estimated to be in the range of $450-500 million in 2026," says Brice Poplawski, senior vice president and CFO. "Paccar is increasing its investment in next generation internal combustion, hybrid and battery-electric powertrains, integrated connected vehicle services, expanded manufacturing capabilities and the Paccar autonomous vehicle platform, that will create value for our customers."
