Here’s what you need to know:
- Orders are up across the heavy duty industry, especially among OEMs.
- Companies are predicting some growth for the rest of the year and a recovery in North America.
- Geopolitical tensions and concerns over the rise in diesel prices still fueling uncertainty heading into the second quarter.
Companies across the heavy duty industry saw a surge in orders in the first quarter as customers and companies get some clarity regarding tariffs and regulatory policies.
[RELATED: Truck orders remain strong, but demand risks increasing]
OEMs such as Daimler and Volvo saw 80% increases in orders in the first quarter, year over year, and Traton, parent company of International, saw orders up 18%. Most companies are also expecting at least some growth this year, with an eye on geopolitical tensions and other potential disruptions.
Allison Transmission Holdings
In the first quarter reporting earnings with the on-highway segment, Allison reported an 84% increase in net sales.
"Encouraging momentum in key end markets supported solid demand for both Allison business units in the first quarter," says David Graziosi, chairman, president and CEO of Allison. He went on to say they were optimistic on market conditions improving through the year despite geopolitical uncertainty.
Allison says it's "cautiously optimistic" about the North American on-highway market in its earnings presentation. That market's sales were $375 million in the first quarter, showing signs of stabilization with Class 8 vocational truck demand being driven by infrastructure spending and megaprojects. Medium-duty truck demand is being impacted by consumer spending and overall macroeconomic health, Allison says.
Cummins
Cummins is optimistic about the on-highway segment for the rest of the year. Read why the company is revising its forecast upwards.
Custom Truck One Source
Custom Truck One Source notched record first quarter revenue of $461.6 million, a nearly 10% increase from the first quarter of 2025. It also boosted profits 20% year over year, totaling $103.1 million in Q1 2026.
“The sustained performance in our core T&D markets continues to be the primary driver of performance within our SER segment and for the company as a whole,” says Ryan McMonagle, CEO. “For the quarter, our rental fleet achieved average utilization of 81.4%, up 370 basis points versus the first quarter of last year. We ended the quarter with total. OEC of $1.66 billion, the highest in our history, which should support our expected growth within SER in 2026.”
The company is expecting to increase revenue 3-9% year over year with adjusted EBITDA forecast to go up 8-15%. Inventory months on hand should reach below six months, the company says, which would support working capital improvement. Total specialty truck equipment and manufacturing revenue is expected to be flat to down year over year, attributed to lower intercompany rental sales and capital expenditures.
“Looking ahead, our focus in 2026 is on disciplined execution — translating strong end-market demand into profitable growth, free cash flow generation and further balance sheet improvement,” says Chris Eperjesy, CFO.
Daimler Truck
Daimler noted an 85% surge in orders from North America as just one sign of a possible recovery in the challenging market. See the bigger picture here.
Dana Incorporated
Dana’s new sales were up 5% to almost $1.9 billion in the first quarter.
"Dana's long-term strategy is clear and built on actions fully within our control — improving our cost structure and executing with discipline," says R. Bruce McDonald, chairman and CEO. "Our first-quarter results demonstrate our progress with meaningful margin expansion and continued momentum in new business wins."
The company forecast commercial vehicle sales overall to remain largely flat, but it does expect to see higher sales with increased backlogs and business recoveries offsetting lower demand.
"The pace of recent new business wins demonstrates the strength of our product portfolio and reinforces Dana's long-term growth trajectory,” says Byron Foster, incoming CEO. “As macro and market conditions begin to improve, we are unlocking incremental operating leverage. At the same time our teams are executing with discipline, improving efficiency and positioning Dana to deliver increased performance throughout the year."
Dorman Products Inc.
Dorman’s net sales were up 4.2% in the first quarter to $528.2 million.
“We started the year with solid financial performance that was in line with our expectations,” says Kevin Olsen, chairman, president and CEO. “Despite ongoing uncertainty in the broader economy and geopolitical environment, we delivered first quarter net sales growth of 4.2% year over year. … In addition, we generated cash from operations of $44 million.”
Olsen says the company has a positive outlook for the rest of the year, including in heavy duty. Net sales for that segment were $57.8 million in the first quarter, up 12%. Dorman expects a 7-9% increase in net sales year over year in 2026.
“We remain confident in our strategy and position as the innovation leader in the aftermarket, and we will continue to manage and execute on the factors within our control to support long-term growth,” he says.
Eaton
Eaton’s first quarter sales were up 17% with organic sales growth of 10%, beating its guidance range. Sales totaled $7.5 billion, a new record for the company.
“Strong demand across our markets drove solid first quarter performance, highlighted by order strength, backlog growth and our team’s continued discipline and focus on operational execution,” says Paulo Ruiz, CEO. “Mobility delivered solid operational performance in a challenging market and we remain on track toward its Q1 2027 planned spin-off into an independent, publicly traded company.”
Mobility posted sales of $766 million, which is down 2% year over year. Organic sales were down 6%.
The quarter also saw $11 billion in strategic acquisitions, including Boyd Thermal and Ultra PCS Limited. They reinforce Eaton’s strategy, the company says, acquiring technologies in high-growth, high-margin markets that support value creation.
Eaton says for the rest of the year, it anticipates organic growth of 9-11%.
Gates Industrial Corporation
Gates’ first quarter net sales held steady at $851.1 million and core revenue was down 2.9%.
“We executed well in the first quarter, successfully implementing a new enterprise resource planning system in Europe and continuing to invest in strategic process and growth initiatives,” says Ivo Jurek, CEO. “We exited the quarter with solid order rates. We have reiterated our financial guidance for 2026. I am optimistic about our core growth prospects in 2026 and our strong balance sheet provides us flexibility to strengthen the enterprise and drive shareholder value.”
Gates expects sales growth of 1-4% year over year in 2026 with capital expenditures of $120 million.
GPC
Genuine Parts Company’s first quarter sales were up year over year but income ticked down.
Sales were $6.3 billion, a 6.8% increase year over year. Net income was $189 million, slightly down from $194 million in the first quarter of 2025. Adjusted net income was $245 million after a $56 million net expense associated with the company’s restructuring and split of the automotive and industrial businesses.
North American automotive sales, which includes medium- and heavy-duty, were $2.4 billion, up 4.3% from the same period last year. It includes a 2.2% increase in comparable sales.
For 2026, GPC is planning on a total sales growth of 3-5.5% and a 3-5% growth in North America.
LKQ
LKQ’s revenue was up 4.3% in the first quarter to $3.469 billion. Total parts and services revenue was up 3.6%, including a 5.1% increase from foreign exchange rates and a 1.6% decrease in parts and services organic revenue.
“We are operating in a challenging environment and are focused on improving our results,” says Justin Jude, president and CEO. “Our teams are taking deliberate actions to reduce costs, streamline operations while taking market share, and position ourselves for success going forward as the environment improves.”
Net income was down 51% to $77 million from 2025’s $158 million. It included a $44 million impairment of the equity method investment in Mekonomen. Cash flow from operations and free cash flow were negative $56 million and negative $96 million for the first quarter.
Earlier this year, the company’s board of directors initiated a comprehensive review of strategic initiatives to enhance shareholder value along with Bank of America Securities and Goldman Sachs & Co. There’s no deadline or definitive timetable, LKQ says, and there can be no assurance the review will result in a transaction or other strategic outcome.
“We are seeing improving performance trends across our global footprint, with continued strength in North America and early signs of stabilization in Europe,” says Rick Galloway, senior vice president and CFO. “We are continuing to implement productivity and restructuring initiatives intended to help mitigate the impact of ongoing macroeconomic and cost pressures. Based on our performance to date, we remain focused on executing against our full year 2026 outlook.”
Paccar
Paccar’s sales were down slightly but income was up about $100 million year over year. See the full picture.
Phinia
Phinia saw a 10.3% increase in sales in the first quarter. Net sales were $878 million, the company says, with net earnings of $37 million.
“I’m pleased with our first-quarter performance, which underscores our disciplined execution and continued focus on creating value for our shareholders,” says Brady Ericson, president and CEO. “Building on the strong performance we delivered in 2025 and the confidence we shared at our 2026 Investor Day, we are seeing growing traction in attractive new markets and expanding our customer base, including new wins in alternative fuels, commercial vehicles and aerospace and defense.”
Among its wins in the first quarter were expanding its product portfolio with a major warehouse distributor in the Americas. It added steering, suspension and vehicle electronics. Phinia also renewed a starter program with a global commercial vehicle OEM.
For the rest of the year, Phinia expects 2026 net sales of $3.52-$3.72 billion, a year over year growth of 1-7%.
Rush Enterprises
Rush Enterprise used its first quarter earnings report to announce the acquisitions of several Louisiana and Peterbilt locations. Revenues dipped but net income was up; see the whole story here.
Samsara Inc.
Samsara’s first quarter shows a 32% revenue spike year over year, reporting revenue of $366.9 million.
“We delivered a strong first quarter of the new fiscal year,” says Sanjit Biswas, CEO and co-founder. “In today’s uncertain macro environment, we are partnering with our customers to help them get more out of their labor, resources and assets. Our AI-powered platform delivers a clear and fast ROI for our customers and improves the safety, efficiency and sustainability of their operations.”
The company is expecting 24% growth this year with total revenue between $1.547 billion and $1.555 billion.
Traton
Traton, parent company of International, says revenue was off expectations in the first quarter even while global orders jumped 18%. Read more.
Volvo
Volvo North America’s orders surged in the first quarter, up 78%, even while net sales were down. Get the whole story.
