PACCAR (NASDAQ:PCAR) Releases Earnings Results, Beats Estimates By $0.07 EPS

PACCAR (NASDAQ:PCAR) issued its quarterly earnings data on Tuesday. The company reported $1.43 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.36 by $0.07, Briefing.com reports. PACCAR had a return on equity of 12.81% and a net margin of 8.91%.The firm had revenue of $7 billion during the quarter, compared to the consensus estimate of $7.05 billion. During the same period last year, the company earned $1.37 EPS. The company’s quarterly revenue was up .5% on a year-over-year basis.

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

• Q2 results improved significantly: Revenue reached $7.5 billion and net income rose 24% sequentially to $752 million, driven by stronger truck performance, favorable price-versus-cost, cost controls, and local-for-local production benefits.
• PACCAR expects truck deliveries to increase from 38,700 in Q2 to approximately 42,000 in Q3, with U.S. and Canadian heavy-truck demand projected at roughly 250,000 units for 2026 and a healthy 2027 market as fleets replace aging equipment.
• PACCAR Parts posted record revenue of $1.75 billion and $417 million in pre-tax income, while parts sales are expected to grow 3%–5% for the full year and trend toward the high end as truck utilization and freight rates improve.
• The EPA’s proposed NOx regulation clarification would allow customers to continue buying current-generation engines next year with estimated $6,000–$7,000 non-conformance fees, which management believes will smooth the transition, support demand, and give manufacturers more time to validate compliant technology.
• Management noted that supplier constraints prevented delivery of several hundred U.S. trucks in Q2, although it expects those units to move through in the third quarter; European summer shutdowns and a shift toward fleet trucks are also expected to temper Q3 margin expansion.

PACCAR Stock Up 3.6%

PCAR stock opened at $138.21 on Wednesday. The stock has a market cap of $72.74 billion, a P/E ratio of 29.41, a PEG ratio of 1.22 and a beta of 0.97. The company has a current ratio of 3.11, a quick ratio of 2.91 and a debt-to-equity ratio of 0.52. PACCAR has a twelve month low of $92.25 and a twelve month high of $139.24. The company’s 50 day moving average is $120.01 and its two-hundred day moving average is $120.57.

PACCAR Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 2nd. Shareholders of record on Wednesday, August 12th will be paid a $0.35 dividend. This represents a $1.40 annualized dividend and a yield of 1.0%. The ex-dividend date is Wednesday, August 12th. PACCAR’s dividend payout ratio is currently 29.79%.

Key Stories Impacting PACCAR

Here are the key news stories impacting PACCAR this week:

• Positive Sentiment: Earnings exceeded expectations: PACCAR reported second-quarter EPS of $1.43, above the $1.36 analyst consensus and up from $1.37 a year ago. Revenue reached approximately $7.0 billion, broadly in line with expectations and 0.5% higher year over year. PACCAR earnings results
• Positive Sentiment: Profitability improved: Higher truck profitability and record parts revenue helped offset softer sales. Management said net income increased 24% from the preceding quarter, while stronger orders supported higher production rates. PACCAR Q2 earnings surpass expectations
• Positive Sentiment: Outlook remains constructive: Stable truck demand, improved freight rates and strong customer orders are supporting build rates and margins. Analysts also highlighted greater regulatory clarity as a factor supporting PACCAR’s outlook. PCAR Q2 deep dive
• Neutral Sentiment: Strategic investment continues: Management discussed ongoing investments intended to support PACCAR’s long-term competitive position, though these could affect near-term spending and returns. PACCAR Q2 earnings call highlights
• Negative Sentiment: Revenue growth was modest: Quarterly revenue slightly trailed the $7.05 billion consensus, and softer sales remain a concern in the cyclical commercial-truck market. PCAR’s valuation—about 29 times earnings—also leaves less room for disappointing results.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on the stock. Evercore set a $139.00 price target on shares of PACCAR in a research report on Monday, May 11th. Weiss Ratings cut shares of PACCAR from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Thursday, May 21st. Citigroup reissued a “neutral” rating and issued a $125.00 price objective (down from $130.00) on shares of PACCAR in a research note on Thursday, April 30th. Wells Fargo & Company set a $125.00 target price on shares of PACCAR and gave the stock an “equal weight” rating in a research note on Wednesday, April 29th. Finally, Morgan Stanley raised their price target on shares of PACCAR from $109.00 to $113.00 and gave the company an “equal weight” rating in a research report on Friday, July 17th. Three analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $125.40.

Institutional Investors Weigh In On PACCAR

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Parkside Financial Bank & Trust lifted its holdings in shares of PACCAR by 3.1% in the 4th quarter. Parkside Financial Bank & Trust now owns 2,898 shares of the company’s stock valued at $317,000 after purchasing an additional 87 shares during the last quarter. Inspire Advisors LLC lifted its stake in PACCAR by 1.5% in the fourth quarter. Inspire Advisors LLC now owns 7,458 shares of the company’s stock valued at $817,000 after buying an additional 113 shares during the last quarter. L2 Asset Management LLC lifted its stake in PACCAR by 5.2% in the third quarter. L2 Asset Management LLC now owns 2,467 shares of the company’s stock valued at $243,000 after buying an additional 122 shares during the last quarter. Financial Engines Advisors L.L.C. boosted its holdings in shares of PACCAR by 4.9% in the third quarter. Financial Engines Advisors L.L.C. now owns 2,893 shares of the company’s stock valued at $284,000 after acquiring an additional 134 shares during the period. Finally, Lazard Asset Management LLC boosted its holdings in shares of PACCAR by 3.3% in the second quarter. Lazard Asset Management LLC now owns 4,564 shares of the company’s stock valued at $433,000 after acquiring an additional 144 shares during the period. 64.90% of the stock is currently owned by institutional investors and hedge funds.

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.