PACCAR Q4 revenue beats estimates

Overview

• Truck manufacturer's Q4 revenue of $6.82 bln beat analyst expectations

• Q4 net income of $556.9 mln decreased from $872 mln last year

• Company highlights strategic positioning to minimize tariff costs

Outlook

• PACCAR expects U.S. and Canada Class 8 truck sales between 230,000-270,000 units in 2026

• Company estimates European truck registrations between 280,000-320,000 units in 2026

• PACCAR plans to invest $725-$775 mln in capital projects in 2026

Result Drivers

• PARTS AND FINANCIAL SERVICES - PACCAR Parts and Financial Services achieved record revenues and strong profits, contributing positively to the quarterly results

• TARIFF STRATEGY - PACCAR's North American truck factories are strategically located to minimize tariff costs under Section 232 regulations

• EMISSIONS REGULATIONS - EPA's reaffirmation of NOx limits provides market clarity, aiding customer decision-making

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 13 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the heavy machinery & vehicles peer group is "buy."

• Wall Street's median 12-month price target for Paccar Inc is $115.00, about 5.8% below its January 26 closing price of $122.11

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nBwsWn2Pa

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