PACCAR Q2 2026: Net Income Rises 4% to $752M on Strong Truck Margins, Parts Growth
PCAR sits 45% above its 52-week low of $92.25.
Summary
PACCAR reported Q2 2026 net income of $752 million ($1.43/share), up 4% year-over-year, driven by stronger truck margins and parts growth. Credit provisions rose sharply, and the company highlighted regulatory tailwinds from EPA rulemaking.
Key Events · Earnings and Guidance · PCAR
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Q2 Earnings Beat
Net income of $752.0M ($1.43 diluted EPS) exceeded the $1.43 consensus, up 4% from $723.8M ($1.37) in Q2 2025. Revenue was $7.55B vs $7.51B.
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Truck Margin Expansion
Truck segment pre-tax income rose 17% to $360.5M on flat revenues of $5.25B, driven by higher price realization and lower tariff costs. Gross margin improved to 9.4% from 8.7%.
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Parts Revenue Growth
Parts sales increased 2% to $1.75B, with pre-tax income of $417.0M. Growth was led by Europe (+7%), offsetting a slight decline in the U.S. and Canada.
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Credit Quality Deterioration
Provision for loan losses rose to $83.5M in H1 2026 from $47.5M a year ago, driven by higher past dues in Brasil. Credit modifications for troubled borrowers more than doubled to $323.5M.
Analysis · PCAR · Manufacturing
PACCAR delivered a solid Q2, with net income up 4% to $752 million, or $1.43 per share, beating the $1.43 consensus estimate reported in the July 28 8-K. The beat was driven by higher price realization and lower tariff costs in the Truck segment, which saw pre-tax income jump 17% despite flat revenues. Parts revenue grew 2% on higher European sales, while Financial Services income was flat as higher credit provisions in Brasil offset improved finance margins. The company is navigating a mixed demand environment — North American truck deliveries fell 4% in Q2, but European deliveries rose 6%. Credit quality is a watchpoint: the provision for loan losses nearly doubled to $83.5 million in the first half, and past-due accounts in Brasil are rising. On the regulatory front, the EPA's July 2026 proposed rulemaking reaffirmed NOx limits with revised compliance requirements, a net positive for PACCAR's cost outlook. The balance sheet remains fortress-like with $8.8 billion in cash and marketable securities, though down $681 million from year-end after dividend payments and debt reduction. Full-year capital spending is guided to $700-$750 million, with R&D at $450-$480 million, as the company continues investing in next-gen powertrains and connected services.
At the time of this filing, PCAR was trading at $133.87 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $70.5B. The 52-week trading range was $92.25 to $139.24. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.