Paccar posts record revenue, income in 2023

Kenworth T680 rendering on a highway

Paccar announced its fourth quarter and year-end earnings for 2023 this week, posting its 85th consecutive year of net income.

“Paccar reported record annual revenues and net income in 2023,” says CEO Preston Feight “Paccar’s excellent results reflect record deliveries of premium quality DAF, Peterbilt and Kenworth trucks worldwide, record Truck, Parts and Other gross margins and strong financial services performance. I am very proud of our employees and dealers who delivered outstanding trucks and transportation solutions to our customers.”

The company states it achieved quarterly revenues of $9.08 billion in the fourth quarter of 2023, compared to the $8.13 billion reported in the same period in 2022. Paccar also achieved record revenues of $35.13 billion in 2023, compared to revenues of $28.82 billion in 2022. 

“Paccar is manufacturing the most impressive new truck range in its history. These trucks deliver premium quality, excellent fuel efficiency and low operating costs to our customers. Paccar is investing in the next generation of Kenworth, Peterbilt and DAF trucks that feature clean diesel, battery-electric, hydrogen combustion or fuel cell powertrains. Paccar Parts and Paccar Financial Services contributed significantly to the success of Paccar and its customers in 2023,” adds Feight.

Paccar states it declared cash dividends of $4.24 per share during 2023. This included a $3.20 per share extra cash dividend paid on Jan. 4, 2024. “Paccar has generated excellent shareholder returns and annual net income due to its industry-leading premium quality vehicles, and strong growth of its aftermarket parts sales,” says Mark Pigott, executive chairman. Paccar delivered a total shareholder return of 55%, including regular quarterly and extra cash dividends paid, in 2023.

Paccar also announced it delivered a record 204,200 vehicles worldwide, and including the 750,000th truck produced at its Denton, Texas, plant.

For fourth quarter, Paccar Parts had revenue of $1.61 billion and pretax income of $432.4 million. 

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For the entire year of 2023, the company had record net income of $4.60 billion, record after-tax return on revenues of 13.1%, record Paccar Parts revenue of $6.41 billion, record Paccar Parts pretax income of $1.70 billion and record Financial Services assets of $20.96 billion.

Paccar data estimates Class 8 truck industry retail sales in the U.S. and Canada were 297,000 units in 2023 and are estimated to be in a range of 260,000-300,000 trucks in 2024.

“Infrastructure spending and the replacement of older trucks are driving demand for Kenworth and Peterbilt trucks,” says Darrin Siver, Paccar executive vice president. “Peterbilt began production this month of the new Peterbilt Model 589, which integrates an iconic design with advanced technologies to deliver high performance and maximum uptime for customers.”

In the parts space, Paccar vice president and Paccar Parts general manager Laura Bloch said, “Paccar Parts provides strong profitability through all phases of the business cycle. Paccar Parts’ excellent long-term growth reflects the benefits of investments that increase vehicle uptime and convenience for customers, such as new parts distribution centers (PDCs), and a growing population of connected Paccar vehicles with Paccar MX Engines.”

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