Paccar (PCAR) Q3 2026 Earnings Report

The call was strongly positive overall. PACCAR reported significant revenue and profit growth, record PACCAR Parts revenue, higher financial-services earnings, strong pricing, robust cash generation, and positive truck-market and technology outlooks. The main challenges were supplier constraints, elevated customer operating costs, parts-mix pressure, tariff costs, and uncertainty surrounding 2027 emissions regulations and NCP levels.

PACCAR estimates this year's US and Canadian Class 8 market in a range of 240 thousand to 260 thousand trucks and next year in a range of 240 thousand to 280 thousand; this year's Europe above 16 ton market in a range of 300 thousand to 320 thousand units and in a similar range for 2027; and this year's South American above 16 ton truck market in the range of 100 thousand to 105 thousand vehicles and next year up slightly and in the range of 105 thousand to 115 thousand trucks. Fourth quarter deliveries are anticipated to increase and be in the range of 41 thousand to 43 thousand, fourth quarter gross margin should remain high and be in the range of 14% to 15%, parts growth is expected to finish within the previously forecasted 3% to 5% range for 2026 with continued growth next year, this year's capital expenditures are projected to be between $650 million and $700 million and R&D expenses will be $440 to $460 million, and in 2027 capital projects are estimated at $650 million to $700 million with R&D expenses of $460 million to $500 million.