Preliminary North American Class 8 truck orders fell 18% in March, FTR reports

FTR reports preliminary North American Class 8 net orders fell in March for the fifth time in the last six months, coming in at 19,000 units for the month. After rising in February, March orders declined 18% m/m and 11% y/y. While recent orders have softened, order activity is in line with market expectations and running at a robust annualized rate of 340,000 units over the last six months. Class 8 orders have totaled 301,500 units over the last 12 months. With nearly all build slots filled for 2023, slower order activity was anticipated. The reduced order levels will continue through the summer months as we start to enter the normal seasonally weak order period. Fleets continue to request equipment, and quote activity has been in line with past seasonal behavior. Eric Starks commented, "With build activity over the last several months hovering near 27,000 units, backlogs likely fell during the month. Given that backlogs are sitting at such high levels, however, it is difficult to ascertain if there is a fundamental weakening in the Class 8 equipment market given order activity levels. The incoming order rate for March was 228,000 annualized, right in the sweet spot at replacement demand levels. "Overall, the numbers were solid and will have little impact on production levels over the next two quarters. Given the uncertainty in the economy, this is a welcome sign that demand has not collapsed and that fleets still have access to capital." Publicly traded companies in the space include ArcBest (ARCB), J.B. Hunt (JBHT), Knight-Swift (KNX), Old Dominion (ODFL), Swift Transportation (SWFT), Werner (WERN), Navistar (NAV), and Paccar (PCAR). Reference Link