PACCAR Inc (PCAR) is listed on NASDAQ and operates in the Agricultural - Machinery industry (Industrials sector).
PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Europe, Mexico, South America, Australia, and internationally. It operates through three segments: Truck, Parts, and Financial Services. The Truck segment designs, manufactures, and distributes trucks for the over-the-road and off-highway hauling of commercial and consumer goods. It sells its trucks through a network of independent dealers under the Kenworth, Peterbilt, and DAF nameplates. The Parts segment distributes aftermarket parts for trucks and related commercial vehicles. The Financial Services segment conducts full-service leasing operations under the PacLease trade name, as well as provides finance and leasing products and services to customers and dealers. This segment also offers equipment financing and administrative support services for its franchisees; retail loan and leasing services for small, medium, and large commercial trucking companies, as well as independent owners/operators and other businesses; and truck inventory financing services to independent dealers. In addition, this segment offers loans and leases directly to customers for the acquisition of trucks and related equipment. The company also manufactures and markets industrial winches under the Braden, Carco, and Gearmatic nameplates. PACCAR Inc was founded in 1905 and is headquartered in Bellevue, Washington.
| Rating | Analysts |
|---|---|
| Strong Buy | 1 |
| Buy | 13 |
| Hold | 28 |
| Sell | 3 |
| Strong Sell | 0 |
PACCAR Inc, founded in 1905 and headquartered in Bellevue, Washington, is a global leader in the design, manufacturing, and distribution of commercial trucks. Operating in the United States, Europe, Mexico, South America, Australia, and other international markets, the company is structured into three main segments: Truck, Parts, and Financial Services. The Truck segment focuses on producing light, medium, and heavy-duty trucks for both over-the-road and off-highway applications, marketed under the Kenworth, Peterbilt, and DAF brands through a network of independent dealers. The Parts segment supplies aftermarket parts for trucks and related commercial vehicles. The Financial Services segment offers a range of financial products, including full-service leasing through PacLease, equipment financing, and administrative support services. It also provides retail loan and leasing options for commercial trucking companies and independent operators, along with truck inventory financing for dealers. Additionally, PACCAR manufactures and markets industrial winches under the Braden, Carco, and Gearmatic brands.
Over the past three fiscal years, the company has experienced a consistent decline in revenue, which decreased at a compound annual growth rate (CAGR) of -10.0%, from $35.1 billion in 2023 to $28.4 billion in 2025. This revenue contraction has been accompanied by a notable decrease in profitability, with gross, operating, and net margins all consistently compressing. Specifically, the gross margin decreased by 5.5 percentage points to 16.2%, while the operating margin fell by 6.5 percentage points to 10.4%, and the net margin declined by 4.7 percentage points to 8.4%. Despite these challenges, the company has managed to improve its free cash flow (FCF) margin by 2.3 percentage points, reaching 10.6% in 2025, indicating a focus on cash generation efficiency. Operating cash flow (OCF) and FCF have shown inconsistent growth, with OCF increasing to $4.4 billion and FCF to $3.0 billion by 2025. The company's net debt position has shifted dramatically from $7.2 billion in 2023 to a net cash position of $9.3 billion in 2025, reflecting a significant improvement in financial flexibility. Additionally, the cash conversion ratio (CCR) has consistently increased, reaching 1.86, suggesting that earnings are increasingly backed by actual cash flows. However, the company's earnings per share (EPS) have decreased sharply at a CAGR of -28.2%, from $8.76 to $4.51, partially due to a slight increase in share count by 0.3%, which has diluted per-share gains. Overall, while the company faces revenue and margin pressures, its improved cash generation and strengthened balance sheet provide a solid foundation for future resilience.
Recent developments for PACCAR Inc. (PCAR) focus on anticipated financial performance and significant institutional trading activity. An earnings preview by Zacks Investment Research on April 21 suggests that PACCAR's Q1 earnings are expected to decline, although specific figures were not disclosed. In terms of institutional trading, Assetmark Inc. increased its holdings in PACCAR by 8% in the fourth quarter, while Bank of America Corp DE holds a substantial $1.26 billion position in the company. Additionally, Capital International Inc. CA sold 6,646 shares, indicating some repositioning among major investors. The Czech National Bank also reported a $15.17 million stock position in PACCAR, having acquired a new stake during the fourth quarter. Despite these trading activities, PACCAR's stock has shown resilience, with a recent increase noted despite broader market fluctuations. Analyst sentiment remains positive, with PACCAR being highlighted as a top-ranked momentum stock by Zacks Investment Research. These developments suggest a mixed outlook, with cautious anticipation around upcoming earnings and continued interest from institutional investors.