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.
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Here are 1-2 brief analogies to describe PACCAR:
- The Ford or General Motors of commercial heavy-duty trucks.
- The Mercedes-Benz or BMW of semi-trucks.
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- Kenworth Trucks: Manufactures and distributes premium medium and heavy-duty commercial trucks.
- Peterbilt Trucks: Manufactures and distributes premium medium and heavy-duty commercial trucks.
- DAF Trucks: Designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks, primarily in Europe.
- PACCAR Parts: Distributes a comprehensive range of aftermarket parts for trucks and trailers.
- PACCAR Financial Services: Provides financing, leasing, and insurance products to dealers and customers for PACCAR trucks and related equipment.
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PACCAR (PCAR) primarily sells its products, including Kenworth, Peterbilt, and DAF trucks, along with related parts and financial services, to other companies.
PACCAR's sales model relies on a global network of over 2,300 independent dealer locations. Therefore, PACCAR's *direct* customers for its trucks and parts are these **independent dealerships**. These dealerships are typically privately owned businesses, and PACCAR does not disclose individual dealerships as major customers.
The ultimate end-users of PACCAR's products are a diverse array of businesses across various industries. Due to the highly fragmented nature of the commercial truck market, PACCAR does not typically disclose specific publicly traded companies as major end-user customers, as no single entity accounts for a significant portion of its overall sales. Instead, its sales are distributed among thousands of businesses worldwide. These end-users, who purchase PACCAR trucks through its dealer network, generally fall into the following broad categories:
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Trucking and Logistics Companies: This category includes a wide spectrum of businesses, from large national freight carriers to smaller regional operators and independent owner-operators. They utilize PACCAR's heavy and medium-duty trucks for various transportation needs, including long-haul freight, regional distribution, and specialized hauling services.
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Construction and Vocational Businesses: These are companies operating in sectors such as construction, mining, waste management, utilities, agriculture, and other specialized fields. They require durable and often custom-configured trucks for specific job site applications and heavy-duty tasks.
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Governmental Agencies and Municipalities: Public sector entities that acquire trucks for a range of public services, including infrastructure maintenance, refuse collection, emergency services, and other municipal or governmental operations.
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- Continental AG (ETR: CON)
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R. Preston Feight
Chief Executive Officer
R. Preston Feight has served as the Chief Executive Officer of PACCAR Inc. since July 2019. He has a tenure of 26 years with the company, during which he held various leadership positions including Executive Vice President, PACCAR Vice President and President of DAF Trucks, and General Manager of Kenworth Truck Co. Earlier in his career, Mr. Feight gained engineering experience at Allied Signal and Ford. He holds a Bachelor of Science degree in Mechanical Engineering from Northern Arizona University and a Master of Science in Engineering Management from the University of Colorado.
Brice J. Poplawski
Senior Vice President; Chief Financial Officer
Brice J. Poplawski was promoted to Senior Vice President and Chief Financial Officer of PACCAR Inc. effective June 2, 2025. Prior to this role, he served as the company's Vice President and Controller since June 2023. Mr. Poplawski has been with PACCAR for 27 years, holding positions of increasing responsibility primarily within the Controllers organization. He is a Certified Public Accountant and holds a B.S. in Accounting from Central Michigan University and an M.B.A. from the University of Washington.
Mark C. Pigott
Chairman
Mark C. Pigott has been the Chairman of PACCAR Inc. since April 2014. He previously served as the Chairman and Chief Executive Officer of the company from January 1997 to April 2014. His extensive career at PACCAR also includes roles as Executive Vice President, Senior Vice President, and Vice President. Mr. Pigott possesses over 45 years of experience in the global commercial vehicle industry. From 2011 to 2021, he also served as a Director of Franklin Resources Inc.
John N. Rich
Senior Vice President; Chief Technology Officer
John N. Rich has held the position of Chief Technology Officer and Senior Vice President at PACCAR Inc. since 2024, having previously served as Vice President and Chief Technology Officer from March 2021 to December 2023. Before joining PACCAR, he spent over 30 years at Ford Motor Company (August 1990 to March 2021), where he held diverse senior roles, including Chief Operating Officer for Ford's Autonomous Vehicle subsidiary (AV LLC) and Executive Director of Global Strategy. Mr. Rich was instrumental in developing autonomous vehicle programs and integrating technologies through partnerships like Argo AI. He holds an MBA from Harvard Business School and advanced engineering degrees from the University of Michigan and Boston University.
C. Michael Dozier
Executive Vice President
C. Michael Dozier is an Executive Vice President at PACCAR Inc., having started his career with the company in June 1988 as an associate design engineer. He has held numerous significant leadership positions within PACCAR, including Managing Director of PACCAR Australia for three years and Assistant General Manager of Operations for Peterbilt Motors Company. Mr. Dozier also served as Kenworth's Chief Engineer from December 2004 to August 2008. He earned a mechanical engineering degree from Texas A&M University and a graduate degree in management from Stanford University, where he completed an executive program in 2006.
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The key risks to PACCAR's business include the cyclical nature of commercial truck market demand, regulatory uncertainty, and competition coupled with technological advancements.
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Commercial Truck Market Demand is Variable: PACCAR's business is highly sensitive to global and national economic conditions, as well as the economic health of the industries and markets it serves. Negative economic conditions and outlook can materially weaken demand for the company's equipment and services, leading to variability in the commercial truck market.
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Regulatory Uncertainty and Environmental Regulations: Compliance with international, federal, state, and local environmental regulations poses a significant risk. Changes in these regulations, such as the EPA's 2027 low-NOx mandate, can increase capital and operating expenditures, create regulatory delays, and impact overall truck demand as fleets may postpone long-term investments due to this uncertainty.
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Competition and Technological Advancements: The commercial truck market is highly competitive in terms of price, quality, and service. PACCAR faces competition from both established players and new entrants, particularly those focusing on electric and autonomous trucks. A failure to match evolving technology expectations could weaken PACCAR's market share.
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PACCAR (PCAR) operates in several key markets, primarily focusing on commercial trucks, aftermarket parts, and financial services. The addressable market sizes for its main products and services are as follows:
- Heavy-Duty Trucks (Class 8)
- U.S. and Canada: Retail sales for Class 8 trucks were 268,000 units in 2024. The estimated range for 2025 is between 250,000 and 280,000 trucks.
- Europe (above 16-tonne): Registrations for above 16-tonne trucks were 316,000 units in 2024. The estimated range for 2025 is between 270,000 and 300,000 units.
- South America (above 16-tonne): The market size was 119,000 vehicles in 2024. The estimated range for 2025 is between 115,000 and 125,000 trucks.
- Global Heavy-Duty Trucks Market: The market size is estimated at $251.3 billion in 2025 and is forecast to reach $393.2 billion by 2034, with an annual growth rate (CAGR) of 5.1%.
- Medium-Duty Trucks (Class 6 and 7)
- U.S. and Canada: Retail sales for Class 6 and 7 trucks were 110,400 units in 2024.
- Europe (6 to 16-tonne): The market was 51,000 units in 2024.
- Aftermarket Parts for Trucks: null
- Advanced Diesel Engines: null
- Financial Services: null
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PACCAR (PCAR) is expected to drive future revenue growth over the next two to three years through several key strategies and market dynamics:
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Robust Aftermarket Parts Business: PACCAR's aftermarket parts segment consistently achieves record revenues and pretax profits, acting as a stable and growing revenue stream. This growth is fueled by an expanding population of PACCAR branded trucks on the road, strategic geographic expansion, increasing global market share, and the continued growth of its TRP (private label) parts store network. For instance, PACCAR Parts recorded $1.72 billion in revenue in Q3 2025, with similar growth rates anticipated.
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Strategic Investments in New Truck Models and Advanced Technologies: The company is making significant capital and research and development investments in new truck models, next-generation clean diesel, and alternative powertrains. PACCAR is focused on developing and deploying new Kenworth, Peterbilt, and DAF truck models, as well as advancing manufacturing capabilities. These investments aim to enhance product offerings and operational efficiency.
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Expansion in Zero-Emissions Vehicles (ZEVs): PACCAR is actively developing and introducing a new lineup of all-electric trucks, alongside investments in battery technology and charging infrastructure. While the heavy-duty electric vehicle market is projected for gradual growth in the near term, PACCAR is positioning itself for significant expansion as regulatory frameworks evolve and customer adoption increases. A joint venture with Cummins, Daimler Truck, and EVE Energy for a battery cell manufacturing facility in Mississippi, expected to start production in 2027, further supports this strategy.
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Strong Performance and Growth of PACCAR Financial Services (PFS): PACCAR Financial Services consistently contributes to the company's profitability and revenue growth. PFS provides financing and leasing solutions for trucks and trailers, with its strong portfolio quality and improved U.S. truck results contributing to robust pretax income.
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Anticipated Pre-buy Demand from 2027 Emissions Regulations and Market Share Gains: The upcoming 2027 Emissions Regulations are expected to drive a "pre-buy surge" as customers seek to acquire vehicles before potential price increases of $10,000 to $15,000 associated with these new standards. Additionally, PACCAR has successfully expanded its market presence, increasing its share in both the Class 8 and medium-duty truck segments in North America due to the perceived superior quality and operating performance of its Kenworth and Peterbilt brands. The U.S. and Canadian Class 8 truck market is projected to see an increase in retail sales in 2026.
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Share Repurchases
- PACCAR's Board of Directors approved a $500 million stock repurchase program in December 2018, with $390 million remaining under this authorization as of March 2025.
- The company repurchased $110 million of its stock under the current authorization as of March 2025.
- In the first six months of 2025, PACCAR purchased 205,592 treasury shares under its common stock repurchase plan.
Share Issuance
- During the first six months of 2025, PACCAR issued 1,058,539 common shares primarily under deferred and stock compensation arrangements.
- Shares outstanding slightly increased, from 0.523 billion in 2022 to 0.527 billion in 2024.
Outbound Investments
- PACCAR is investing $600-$900 million in Amplify Cell Technologies, a battery joint venture for lithium-iron-phosphate (LFP) battery production, in which PACCAR holds a 30% stake.
- The company partnered with Aurora in 2021 to develop and commercialize autonomous Peterbilt and Kenworth trucks, with a commercial launch anticipated in 2024 following delays.
Capital Expenditures
- Capital expenditures were $796 million in 2024 and are projected to be in the range of $750-$775 million for 2025, and $725-$775 million for 2026.
- Investments focus on expanding truck factories (e.g., Kenworth Chillicothe, Ohio, PACCAR Mexico, DAF electric truck assembly plant), enhancing global engine manufacturing and remanufacturing capacity, and establishing new parts distribution centers.
- A significant portion of capital is directed towards next-generation clean diesel and alternative powertrains, integrated connected vehicle services, and advanced driver assistance systems.
