Heavy-duty equipment manufacturers reported strong second-quarter earnings.
- Multiple companies reported record quarterly earnings, including Custom Truck One Source with $563.4 million in Q2 revenue, up 10% year-over-year.
- Industry leaders cited improving freight rates, stronger customer sentiment, and increased commercial vehicle quoting activity as key drivers of recovery.
- Most major manufacturers raised 2026 full-year guidance, with executives indicating the first quarter represented the industry downcycle trough.
Heavy-duty companies are increasing full-year 2026 guidance as second-quarter earnings bear out a recovery in the North American on-highway sector for most businesses.
Allison in particular saw net sales jump 92% as it brought Dana’s off-highway business into the fold, and Volvo saw a 122% increase in North American orders and International’s 197% jump in orders. Several companies also reported record earnings on the quarter, including Custom Truck One Source.
“We believe the first quarter represented the trough of the extended industry downcycle, and during the second quarter, we continued to see signs of gradual improvement in market conditions,” says W.M. “Rusty” Rush, chairman, CEO and president of Rush Enterprises, which notched $19 billion in earnings in Q2. “While the recovery remains in its early stages, improving freight rates, improving customer sentiment, increased commercial vehicle quoting activity and significantly higher order intake all contributed to better business conditions as the quarter progressed.”
Allison Transmission Holdings
Allison reported net sales were up 92% year over year to $1,566 million, which includes the addition of the Allison Off-Highway business unit. The company had record quarterly net sales of $860 million for the transmission unit.
“In the Allison Transmission business unit, execution of our growth initiatives in the defense end market and continued momentum in the North American truck market led to record quarterly net sales of $860 million for the second quarter,” says David S. Graziosi, chair, president and CEO. “We also saw strong year over year growth in the Allison Off-Highway business unit, particularly in the Construction & Material Handling and Mining end markets as demand continues to rebound from trough levels. The Agriculture end market, although showing signs of recovery in certain segments and regions, has yet to inflect positively.”
Allison improved its full year guidance, saying it now expects consolidated net sales to hit $5,800 million to $6,000 million.
Blue Bird Corporation
Bus-maker Blue Bird says its latest quarter of net sales was up 29.9% year over year to $517.2 million.
"The Blue Bird team continued to exceed expectations, improving operations, navigating tariffs and expanding our leadership in alternative-powered buses," says John Wyskiel, president and CEO. "In our push to expand our leadership in alternative-powered school buses, we delivered 355 electric-powered buses this quarter. As of the end of the quarter, we had more than 770 EV buses in our firm order backlog, which supports our EV sales target for 2026."
The company also announced a deal with Ford to design, manufacture and sell the next generation F53/59 stripped chassis, integrating Ford's next generation medium duty gas powertrain. Blue Bird will purchase the assets of Detroit Chassis LLC's Detroit Plant to assemble the chassis. The deal will close next year.
"This move is a significant component of our long-term strategy and will position us to be a growing player in the specialty vehicle/chassis market," Wyskiel says.
Cummins
The engine maker posted higher revenues and sales as North American on-highway demand increased. Read what the company thinks will happen in the last half of the year.
Custom Truck One Source
Custom Truck One Source (CTOS) reported record second quarter revenue of $563.4 million, up 10% year over year.
“We are optimistic about the second half of 2026 as CTOS remains well-positioned to benefit from secular tailwinds in data center investment, electrification, utility grid upgrades and infrastructure spending,” says Ryan McMonagle, CEO. “We remain focused on adjusted EBITDA growth, working capital management, free cash flow generation and continued deleveraging.”
Dana Incorporated
Dana's second quarter saw sales up 4% to $2 billion with $19 million in cost savings. The company also says its Eaton Mobility acquisition is on track.
"Dana continues to execute our strategy with discipline and consistency, delivering another quarter of strong margin expansion while advancing our long-term growth initiatives," says Byron Foster, CEO. "Our performance reflects the benefits of pricing actions, operational improvements and continued cost-savings initiatives, while demand has improved across our end markets."
Foster says the Eaton acquisition is expected to close in the first quarter of 2027.
"The planned combination with Eaton Mobility remains a highly strategic opportunity that accelerates our Dana 2030 objectives and creates a stronger, more diversified global powertrain leader," he says. "At the same time, we remain focused on executing the initiatives within our control — improving our cost structure, enhancing manufacturing performance, generating strong cash flow, and returning capital to shareholders."
Like other companies, Dana also revised its full-year guidance upward, increasing its sales outlook by about $225 million.
Dorman Products
Dorman Products’ Q2 net sales were $544.6 million, up 0.7% year over year. Gross profit was $251.2 million, up from last year. Heavy duty net sales in the quarter were $66.3 million, up 7% year over year.
“Our second quarter results included record earnings and strong cash flow generation, reflecting both solid operating performance and the recovery of IEEPA tariff costs recognized in prior periods,” says Kevin Olsen, chairman, president and CEO. “Given our performance through the first half of the year and targeted pricing actions we are taking as a result of a more stable tariff environment, we are updating our full-year 2026 guidance. We now expect net sales growth of 3-5%.”
Eaton Corporation
Eaton Corporation reported second quarter sales were up 21% to $8.5 billion.
“Eaton accelerated its momentum in the second quarter and delivered record sales and solid earnings from strong organic growth,” says Paul Ruiz, CEO. “Our focus on disciplined execution led to sequential margin expansion, especially in electrical Americas. While data centers remain a key growth driver, we are benefitting from robust demand across our end markets.”
The company says it’s mobility business is still slated to be sold to Dana, closing in the first quarter of 2027.
Gates Industrial Corporation
Gates reported second quarter net sales of $941.6 million, up 6.6% year over year, and core sales were up 4.9%.
“We delivered a strong second quarter, exceeding expectations,” says Ivo Jurek, CEO. “We generated record sales and EPS and experienced improving order momentum globally. We believe we are in a solid position to capitalize on strengthening industrial demand.”
Gates raised their 2026 guidance for sales and profitability in anticipation of stronger growth in the second half of the year.
Genuine Parts Company
Sales were up for Genuine Parts Company (GPC) by 6% year-over-year to $6.5 billion. The company chalks it up to a 3.4% increase in comparable sales, among other factors. Net income in the quarter was $296 million, excluding $69 million related to costs associated with global restructuring and the planned separation of the company’s global automotive and global industrial business.
North American automotive sales were $2.5 billion, up 3.8% year-over-year and industrial sales were $2.4 billion, up 7.1% year-over-year. For the full year 2026, GPC expects North American automotive sales growth of 3-5.5% and industrial sales growth of 3-6%.
Paccar
Peterbilt and Kenworth’s parent company saw net income jump 24% in the second quarter and Paccar Parts achieved record revenue of $1.75 billion. Read more about Paccar’s second quarter financials.
Phinia
Phinia recorded net sales of $940 million in the second quarter, an increase of 5.6% over Q2 2025. Some second quarter developments include a 24-volt starter program supporting a Class 8 commercial vehicle platform, a complete common rail system for the off-highway market, expansion of its aftermarket footprint.
“We delivered another quarter of strong performance, with sales growth across our business and higher adjusted EBITDA year over year. These results reflect healthy demand in the Americas, the successful integration of SEM, and the consistent execution of our strategic priorities,” says Brady Ericson, president and CEO. “The planned acquisition of stoba Group marks another important milestone in that journey, expanding our manufacturing capabilities and reinforcing the resilience, control and flexibility of our supply chain.”
It expects to end the year with net sales of $3.57-$3.62 billion, year over year growth of 2-5%.
Penske Automotive (Premier Truck Group)
Penske Automotive, parent company of Premier Truck Group, announced its total revenue was up 6% year over year in the second quarter. In its commercial dealership division, revenue was down 1.7% amid market headwinds. Read what Roger Penske anticipates for the truck market in the second half.
Rush Enterprises
The operator of North America’s largest commercial vehicle dealership network saw second quarter revenues of $1.9 billion and a net income of $72.8 million. Read what Rusty Rush sees for the rest of 2026.
SKF
SKF saw net sales of $2.4 billion in the second quarter, up 1.4% year over year.
The company saw continued weakness in the automotive segment, however, with the OEM market in the Americas showing some improvement.
“The margin in the automotive business also improved by further efficiencies in production and sourcing,” says President and CEO Rickard Gustafson. The company’s automotive business is being separated into SKF Vertevo. “The automotive business is now separated and operates as a standalone business within the SKF Group, and we remain on track for the planned listing in Q4 2026, subject to SKF’s board of directors proposing a listing and shareholders’ approval.”
Traton Group
International’s parent company saw sales revenues of $13.42 billion, up 4% year-over-year. As for International itself, the company’s orders surged 197% year-over-year in the second quarter. Read more about Traton’s second quarter.
Volvo Group
Volvo Group, parent of Mack and Volvo Trucks, reported a 122% jump in second quarter North American orders with total truck sales globally hitting $9 billion, up 7% year over year. Read more about what Volvo sees coming up for the rest of the year.
Wabash
Wabash saw lower sales but a growing backlog in the second quarter. Read how the trailer manufacturer is weathering a slow freight market recovery.
