A Business at a Glance
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PACCAR INC
PCAR
$69.7B
Mkt Cap
$132.24
+1.14%
PACCAR INC (PCAR) has a current P/E ratio of 29.3, compared to its historical median P/E of 11.9. The stock is currently considered Expensive based on its historical valuation range.
PACCAR INC (PCAR) has a 5-year average return on invested capital (ROIC) of 28.2%. This indicates strong capital allocation and a potential competitive advantage.
PACCAR INC (PCAR) has a market capitalization of $69.6B. It is classified as a large-cap stock.
Yes, PACCAR INC (PCAR) pays a dividend with a trailing twelve-month yield of 2.05%. The company also returns capital through share buybacks, with a buyback yield of 0.05%.
Based on historical P/E analysis, PACCAR INC (PCAR) appears expensive. The current P/E of 29.3 is 146% above its historical median of 11.9. The estimated fair value CAGR (P/E method) is 14.0%.
PACCAR INC (PCAR) operates in the Motor Vehicles & Passenger Car Bodies industry, within the Consumer Cyclical sector.
PACCAR INC (PCAR) reported annual revenue of $28.4 billion in its most recent fiscal year, based on SEC EDGAR filings.
PACCAR Inc is a multinational manufacturer of commercial trucks and provider of aftermarket parts and financial services across three principal segments. The Truck segment, which accounted for 68% of 2025 revenues, designs and manufactures light-, medium-, and heavy-duty trucks under the Kenworth, Peterbilt, and DAF nameplates, built in manufacturing facilities across North America, Europe, Australia, Brazil, and Mexico, with trucks sold primarily to independent dealers and configured for over-the-road and off-highway hauling. The company sources major components such as engines, transmissions, and axles from suppliers including Cummins, Eaton, ZF, and Magna under long-term agreements, though DAF operates with higher vertical integration and PACCAR manufactures approximately 29% of engines installed in Kenworth and Peterbilt heavy-duty trucks in the U.S. and Canada. The Parts segment, representing 24% of 2025 revenues, distributes aftermarket truck parts through 21 strategically located distribution centers and over 350 TRP-branded stores in 99 countries, with sales influenced by the total number of trucks in service and their age and mileage. The Financial Services segment, accounting for 8% of revenues but 51% of total assets, operates finance and leasing operations in 26 countries through PACCAR Financial and PacLease subsidiaries, providing retail and dealer financing, full-service leasing, and used truck sales management, with receivables secured by the trucks and equipment being financed or leased on terms typically ranging from three to five years. Truck segment earnings are driven by market size, company market share, and realized margins, which are cyclical based on economic activity, freight transportation levels, and commodity costs, while the company maintains rigorous control of selling, general and administrative expenses and engages in long-term supply agreements and hedging activities to manage cost variability.
【Market recovery and margin expansion】 Management expects the U.S. and Canadian Class 8 truck market to reach 230,000–270,000 vehicles in 2026, with the European above-16-ton market forecast at 280,000–320,000 registrations and South America at 100,000–110,000 vehicles, supported by improving freight conditions, regulatory clarity around the 2027 EPA 35 mg NOx standard, and tariff certainty. Gross margins are anticipated to expand sequentially through 2026 as global production volumes increase, with second-quarter 2026 margins forecast around 13.5% and continued improvement expected in the second half driven by favorable price-cost dynamics, Section 232 tariff benefits, and cost reductions from manufacturing optimization. Parts sales are expected to grow 4%–8% for full-year 2026, accelerating through the year as customers strengthen operations and benefit from tariff favorability, while used truck values are projected to increase due to anticipated new truck price increases from the 2027 emissions standard. The company plans capital investments of $725 million to $775 million and research and development spending of $450 million to $500 million, focusing on next-generation clean diesel and alternative powertrains, advanced driver assistance systems, and connected vehicle services.
| Metric | Target | Period |
|---|---|---|
| U.S. and Canadian Class 8 truck market | 230,000–270,000 vehicles | 2026 |
| European above-16-ton truck market | 280,000–320,000 registrations | 2026 |
| South American above-16-ton truck market | 100,000–110,000 vehicles | 2026 |
| Parts sales growth | 4%–8% | Full year 2026 |
| Capital expenditures | $725 million to $775 million | 2026 |
| Research and development expenses | $450 million to $500 million | 2026 |
U.S. and Canadian Class 8 truck market (2026): “and Canadian Class 8 truck market is forecast to be in a range of 230,000-270,000 vehicles”
European above-16-ton truck market (2026): “we expect the above-16-ton truck market to be in the range of 280,000-320,000 registrations”
South American above-16-ton truck market (2026): “is expected to be in the range of 100,000-110,000 trucks this year”
Parts sales growth (Full year 2026): “forecast of 4%-8% growth for this year”
Capital expenditures (2026): “the company will invest $725 million to $775 million in capital projects”
Research and development expenses (2026): “$450 million to $500 million in research and development expenses”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Segment | 2021 | 2022 | 2023 | 2024 | 2025 | % of Total |
|---|---|---|---|---|---|---|
Operating Segments | $17.38B | $27.90B | $33.80B | $32.08B | $26.69B | 34% |
Truck, Parts and Other | $21.83B | $27.31B | $33.32B | $31.56B | $26.24B | 33% |
Truck Sales | $15.99B | $20.64B | $25.95B | $23.86B | $18.27B | 23% |
Parts | $4.81B | $5.60B | $6.22B | $6.46B | $6.68B | 8% |
Revenues from extended warranties, operating leases and other | $810M | $841M | $900M | $975M | $1.09B | 1% |
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 27.8B | 28.4B | 33.7B | 35.1B | 28.8B | 23.5B |
| Net Income | 2.5B | 2.4B | 4.2B | 4.6B | 3.0B | 1.9B |
| EPS | $4.71 | $4.51 | $7.90 | $8.76 | $5.75 | $3.57 |
| Free Cash Flow | 3.8B | 3.0B | 2.9B | 2.9B | 1.6B | 554M |
| ROIC | 0.0% | 18.2% | 32.6% | 38.9% | 29.4% | 22.1% |
| Gross Margin | - | 20.1% | 22.6% | 23.4% | 19.2% | - |
| Debt/Equity | 0.01 | 0.10 | 0.26 | 0.30 | 0.27 | 0.18 |
| Dividends/Share | $2.72 | $4.30 | $4.17 | $4.24 | $2.80 | $1.35 |
| Operating Income | 0 | 3.0B | 5.4B | 5.7B | 3.8B | 2.4B |
| Operating Margin | 0.0% | 10.6% | 16.0% | 16.3% | 13.4% | 10.2% |
| ROE | 12.5% | 12.9% | 24.9% | 31.7% | 24.3% | 16.9% |
| Shares Outstanding | 526M | 527M | 527M | 525M | 524M | 523M |
PACCAR INC passes 6 of 9 quality checks, suggesting mixed fundamentals.
PACCAR INC trades at 29.3x trailing earnings, compared to its 15-year median P/E of 11.9x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 18.9x vs a median of 18.4x. The company's 5-year average ROIC is 28.2% with a gross margin of 21.3%. Total shareholder yield (dividends) is 2.1%. At current prices, the estimated annualized return to fair value is +26.6%.
PACCAR INC (PCAR) has a net profit margin of 8.4%. This is a modest margin.
PACCAR INC (PCAR) generated $3.0 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
PACCAR INC (PCAR) has a debt-to-equity ratio of 0.10. This indicates a conservatively financed balance sheet.
PACCAR INC (PCAR) reported earnings per share (EPS) of $4.51 in its most recent fiscal year.
PACCAR INC (PCAR) has a return on equity (ROE) of 12.9%. This indicates moderate shareholder returns.
PACCAR INC (PCAR) has a 5-year average gross margin of 21.3%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 18 years of financial data for PACCAR INC (PCAR), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
PACCAR INC (PCAR) has a book value per share of $36.57, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects the U.S. and Canadian Class 8 truck market to reach 230,000–270,000 vehicles in 2026, with the European above-16-ton market forecast at 280,000–320,000 registrations and South America at 100,000–110,000 vehicles, supported by improving freight conditions, regulatory clarity around the 2027 EPA 35 mg NOx standard, and tariff certainty. Gross margins are anticipated to expand sequentially through 2026 as global production volumes increase, with second-quarter 2026 margins forecast around 13.5% and continued improvement expected in the second half driven by favorable price-cost dynamics, Section 232 tariff benefits, and cost reductions from manufacturing optimization. Parts sales are expected to grow 4%–8% for full-year 2026, accelerating through the year as customers strengthen operations and benefit from tariff favorability, while used truck values are projected to increase due to anticipated new truck price increases from the 2027 emissions standard. The company plans capital investments of $725 million to $775 million and research and development spending of $450 million to $500 million, focusing on next-generation clean diesel and alternative powertrains, advanced driver assistance systems, and connected vehicle services.
Based on recent SEC filings and earnings calls, PACCAR INC (PCAR) has provided the following forward guidance: U.S. and Canadian Class 8 truck market: 230,000–270,000 vehicles (2026); European above-16-ton truck market: 280,000–320,000 registrations (2026); South American above-16-ton truck market: 100,000–110,000 vehicles (2026); Parts sales growth: 4%–8% (Full year 2026); Capital expenditures: $725 million to $775 million (2026), plus 1 additional metric.