PACCAR (NASDAQ:PCAR) Releases Earnings Results, Meets Expectations

PACCAR (NASDAQ:PCAR) posted its quarterly earnings data on Tuesday. The company reported $1.06 earnings per share (EPS) for the quarter, hitting the consensus estimate of $1.06, Zacks reports. The business had revenue of $4.61 billion during the quarter, compared to the consensus estimate of $6.06 billion. PACCAR had a net margin of 8.35% and a return on equity of 13.97%. PACCAR’s quarterly revenue was down 15.1% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.66 EPS.

Here are the key takeaways from PACCAR’s conference call:

• Q4 and FY 2025 results: PACCAR reported Q4 revenue of $6.8 billion and net income of $557 million, and FY 2025 adjusted net income of $2.64 billion — the company’s fourth-highest profit year and 87th consecutive year of profitability.
• Parts and Financial Services records: PACCAR Parts set record annual revenue of $6.9 billion (Q4 $1.7B) with strong margins and a 2026 parts growth guide of 4%–8%, while PACCAR Financial Services achieved record revenue of $2.2 billion and grew market share to 27%.
• Regulatory and tariff clarity benefits: Management says the Section 232 tariff (effective Nov 1) and EPA 2027 NOx confirmation (35 mg) give PACCAR an advantage due to local-for-local production, and they expect truck gross margins to improve to ~12.5%–13% in Q1.
• Order momentum and outlook: December/January order intake has strengthened, Q1 order slots are “mostly full,” deliveries were 32,900 in Q4 and management expects sequential build acceleration through 2026 with a North American Class 8 market outlook of 230k–270k.
• Risks and near-term headwinds: PACCAR said Q4 margins were materially hit by the factory conversion to local-for-local builds (impact called “significant” and unquantified), and cautioned supply-chain constraints, competitor pricing dynamics, and unresolved trade/USMCA details could limit upside later in 2026.

PACCAR Trading Up 1.9%

Shares of PACCAR stock opened at $123.06 on Thursday. The firm has a market capitalization of $64.63 billion, a PE ratio of 24.08, a price-to-earnings-growth ratio of 14.28 and a beta of 1.01. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.70 and a quick ratio of 2.91. The company’s fifty day moving average price is $112.94 and its two-hundred day moving average price is $103.36. PACCAR has a 52-week low of $84.65 and a 52-week high of $125.36.

PACCAR Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, March 4th. Shareholders of record on Wednesday, February 11th will be paid a dividend of $0.33 per share. The ex-dividend date is Wednesday, February 11th. This represents a $1.32 dividend on an annualized basis and a yield of 1.1%. PACCAR’s payout ratio is currently 25.83%.

Institutional Trading of PACCAR

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Brighton Jones LLC lifted its stake in PACCAR by 0.3% during the fourth quarter. Brighton Jones LLC now owns 89,001 shares of the company’s stock worth $9,258,000 after purchasing an additional 290 shares during the period. Focus Partners Wealth lifted its position in shares of PACCAR by 15.4% during the 1st quarter. Focus Partners Wealth now owns 13,604 shares of the company’s stock worth $1,324,000 after buying an additional 1,812 shares during the period. Treasurer of the State of North Carolina boosted its stake in PACCAR by 2.3% in the 2nd quarter. Treasurer of the State of North Carolina now owns 240,749 shares of the company’s stock valued at $22,886,000 after buying an additional 5,327 shares in the last quarter. Ieq Capital LLC grew its position in PACCAR by 11.5% in the second quarter. Ieq Capital LLC now owns 37,404 shares of the company’s stock valued at $3,556,000 after acquiring an additional 3,858 shares during the period. Finally, DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main acquired a new position in PACCAR during the second quarter worth $81,000. Institutional investors own 64.90% of the company’s stock.

Key PACCAR News

Here are the key news stories impacting PACCAR this week:

• Positive Sentiment: PACCAR says Class 8 truck order pace entering 2026 is “very strong,” which supports near‑term backlog and dealer activity and reduces concern about a prolonged demand slump. Paccar enters 2026 with ‘very strong’ Class 8 truck order pace
• Positive Sentiment: Management forecasts 4%–8% annual parts sales growth and said tariff clarity is helping margins and market share, supporting higher-margin aftermarket revenues that can offset cyclical truck sales. Paccar forecasts 4%–8% annual parts sales growth as tariff clarity boosts margins and market share
• Positive Sentiment: Value-oriented screens (Zacks Style Scores) are flagging PCAR as a top-ranked value stock, which can attract income/value investors given the company’s cash generation and dividend history. Paccar (PCAR) is a Top-Ranked Value Stock: Should You Buy?
• Neutral Sentiment: Truist raised its price target to $120 but kept a “hold” rating — the move signals some analyst confidence in the recovery but stops short of a buy endorsement and places the target slightly below current levels. Benzinga note on Truist price target raise
• Negative Sentiment: Q4 results: EPS of $1.06 met consensus, but revenue fell ~15% Y/Y to $4.61B — well below analyst revenue expectations — driven by lower truck sales; investors worry about near-term top-line pressure even if margins and parts offsets help. PACCAR Q4 Earnings Match Estimates, Revenues Decline Y/Y

Analyst Ratings Changes

Several equities research analysts have recently issued reports on the company. Morgan Stanley raised their price target on PACCAR from $93.00 to $102.00 and gave the company an “equal weight” rating in a research report on Tuesday, January 13th. Citigroup restated a “neutral” rating and set a $120.00 target price (up previously from $113.56) on shares of PACCAR in a research note on Tuesday, January 13th. Wolfe Research raised PACCAR from an “underperform” rating to a “peer perform” rating in a research report on Wednesday, October 22nd. Sanford C. Bernstein set a $138.00 price objective on PACCAR and gave the company an “outperform” rating in a research report on Wednesday. Finally, Wells Fargo & Company set a $119.00 target price on shares of PACCAR and gave the stock an “equal weight” rating in a research report on Friday, January 23rd. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and eleven have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $115.50.

About PACCAR

PACCAR Inc is a global technology leader in the design, manufacture and customer support of light-, medium- and heavy-duty commercial vehicles. The company’s products are marketed under well-known brand names including Kenworth, Peterbilt and DAF and span vocational and long-haul applications. PACCAR’s core business includes vehicle engineering and assembly as well as the supply of components and proprietary powertrain systems designed to meet regulatory and customer performance requirements.

In addition to truck manufacturing, PACCAR operates a comprehensive aftermarket parts business, distributes used trucks and provides commercial vehicle financing and leasing through its financial services operations.