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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- Ford, but for the big semi-trucks you see on highways.
- Caterpillar, but specializing in on-road commercial trucks.
- Harley-Davidson, but for semi-trucks.
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- Kenworth Trucks: Manufactures and distributes premium heavy-duty and medium-duty trucks for various applications.
- Peterbilt Trucks: Produces and sells a range of custom-built, premium heavy-duty and medium-duty trucks.
- DAF Trucks: Develops, manufactures, and markets light, medium, and heavy-duty commercial vehicles in Europe and beyond.
- PACCAR Engines: Designs and manufactures diesel engines for its truck brands, as well as for other industrial applications.
- PACCAR Parts: Provides aftermarket parts distribution and customer support for PACCAR trucks globally.
- PACCAR Financial Services: Offers financing, leasing, and insurance products for PACCAR truck dealers and customers.
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PACCAR (PCAR) manufactures and sells heavy-duty and medium-duty trucks under the Kenworth, Peterbilt, and DAF brands, as well as providing PACCAR engines, parts, and financial services. PACCAR sells primarily to other companies through a global network of independent dealerships.
While its direct sales are primarily to these dealerships (which are typically privately held entities), the ultimate major customers who purchase and operate PACCAR trucks and products are a diverse range of commercial enterprises. It is challenging to identify specific major public companies as *direct* customers of PACCAR itself because sales are distributed through its extensive dealer network.
However, the types of companies that represent PACCAR's major end-users (who purchase from dealerships) include:
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For-Hire Trucking Companies (Common Carriers): These companies operate large fleets to transport freight for other businesses across various distances. Many utilize PACCAR's Kenworth and Peterbilt trucks in North America, and DAF trucks in Europe and other international markets, for their reliability and performance. Examples of public companies in this category that commonly operate PACCAR vehicles in their fleets (purchased from dealerships) include:
- J.B. Hunt Transport Services, Inc. (JBHT)
- Knight-Swift Transportation Holdings Inc. (KNX)
- Werner Enterprises, Inc. (WERN)
- XPO, Inc. (XPO)
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Leasing and Rental Companies: These firms purchase trucks to lease or rent them to other businesses, often including options for maintenance and fleet management. They represent a significant portion of new truck sales and frequently include PACCAR brands in their offerings. Examples of public companies in this category that commonly include PACCAR vehicles in their leased fleets (purchased from dealerships) include:
- Ryder System, Inc. (R)
- Penske Truck Leasing (a subsidiary of Penske Automotive Group, Inc. (PAG))
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Vocational and Specialty Fleets: This broad category includes companies that require specialized trucks for specific industrial, construction, waste management, or municipal services. PACCAR's brands are well-represented in vocational applications due to their customization options. Examples of public companies in this category that commonly operate PACCAR vocational vehicles (purchased from dealerships) include:
- Waste Management, Inc. (WM)
- Republic Services, Inc. (RSG)
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- Cummins Inc. (CMI)
- Eaton Corporation plc (ETN)
- Knorr-Bremse AG (KBC.DE)
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R. Preston Feight, Chief Executive Officer and Director
R. Preston Feight has served as Chief Executive Officer of PACCAR since July 2019. He has been with PACCAR for 26 years, holding various leadership roles including Executive Vice President, President of DAF Trucks, General Manager of Kenworth Truck Company, Assistant General Manager for Marketing and Sales at Kenworth, and Chief Engineer at Kenworth. Earlier in his career, he worked as an engineer at Ford Motor Company for six years and AlliedSignal Inc. for two years. 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.
Harrie C.A.M. Schippers, President and Chief Financial Officer
Harrie C.A.M. Schippers was elected President and Chief Financial Officer of PACCAR effective January 1, 2018. He has worked at PACCAR for 31 years. His previous positions include Executive Vice President and Chief Financial Officer at PACCAR's corporate offices, and President of DAF Trucks in Eindhoven, the Netherlands, from 2010 to 2016. He earned an M.S. in Economics from Tilburg University. Mr. Schippers is set to retire effective June 2, 2025, and will be succeeded by Brice Poplawski as Senior Vice President and CFO.
Mark C. Pigott, Executive Chairman of the Board
Mark C. Pigott has served as Executive Chairman of the Board of PACCAR since April 2014. Prior to this, he was Chairman and Chief Executive Officer of the company from January 1997 to April 2014. He possesses over 45 years of experience in the global commercial vehicle industry. Mr. Pigott also served as a Director of Franklin Resources Inc. from 2011 to 2021.
John N. Rich, Senior Vice President; Chief Technology Officer
John N. Rich was appointed Chief Technology Officer and Senior Vice President in 2024. He previously held the role of Vice President and Chief Technology Officer from March 2021 to December 2023. Mr. Rich also served as Director of Autonomous Vehicles and Technology at Ford Motor Co. Chief Operating Officer and Executive Director of Global Strategy of AV LLC.
A. Lily Ley, Chief Information Officer; Vice President
A. Lily Ley has been Chief Information Officer and Vice President of PACCAR since 2017. She joined PACCAR in May 2010.
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Competition from new entrants introducing electric heavy-duty trucks that challenge established market leaders through advanced battery technology, manufacturing processes, and potentially disruptive sales and service models. Notably, the Tesla Semi represents such a clear emerging threat.
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PACCAR (symbol: PCAR) operates in several key addressable markets related to its main products and services, including the manufacturing of medium-duty and heavy-duty trucks, the distribution of aftermarket parts, and the provision of financial services. The addressable market sizes for these segments are as follows:
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Heavy-Duty Trucks: The global heavy-duty trucks market was valued at approximately USD 212.67 billion in 2024 and is projected to reach around USD 467.71 billion by 2034, with a compound annual growth rate (CAGR) of 8.20% from 2025 to 2034. North America was the largest regional market for heavy-duty trucks in 2024. The U.S. heavy-duty trucks market specifically was valued at USD 56.79 billion in 2024 and is expected to grow to approximately USD 127.32 billion by 2034. In terms of units, the U.S. and Canadian Class 8 market is estimated to be between 235,000 to 265,000 trucks for 2025. The European market for trucks above 16 tonnes is projected to be in the range of 270,000 to 300,000 trucks for 2025. The South American market for trucks above 16 tonnes is expected to be between 100,000 and 110,000 vehicles for 2025.
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Medium-Duty Trucks: The global medium-duty truck market was valued at an estimated USD 52.23 billion in 2024 and is anticipated to reach USD 80.16 billion by 2032, growing at a CAGR of 5.5%. Another estimate places the global market at USD 55.42 billion in 2024, projected to grow to USD 99.89 billion by 2035. North America held the largest share of the medium-duty truck market with 36.7% in 2024, while Asia Pacific accounted for around 45% of the revenue share in 2023.
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Aftermarket Parts (Commercial Vehicle Aftermarket Spare Parts): The global commercial vehicle aftermarket spare parts market size was estimated at USD 107.83 billion in 2024 and is projected to reach USD 134.49 billion by 2033, exhibiting a CAGR of 2.80%. Another source indicates the global market was valued at USD 121.4 billion in 2024 and is expected to grow to USD 165.3 billion by 2035. North America is a significant market, with a valuation of USD 40 billion in 2024, projected to reach USD 52 billion by 2035.
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Financial Services (Commercial Vehicle Financing): The global commercial vehicle financing market size was valued at USD 109.3 billion in 2024 and is estimated to grow at a CAGR of 6.8% from 2024 to 2030. Another report indicates a market size of USD 139.87 billion in 2024, projected to grow to USD 208.85 billion by 2035. The U.S. commercial vehicle financing market was valued at USD 26.49 billion in 2025 and is expected to reach USD 38.24 billion by 2033. Asia-Pacific maintained a 38.81% share in 2024.
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PACCAR (PCAR) is expected to drive future revenue growth over the next 2-3 years through several key areas:
- Continued Growth in PACCAR Parts and Financial Services: Both the PACCAR Parts and PACCAR Financial Services segments have consistently delivered strong performance and achieved record revenues and profits. PACCAR Parts is investing in expanded logistics capabilities, new distribution centers, and increased services, which are expected to continue driving revenue growth by enhancing vehicle uptime and convenience for customers. PACCAR Financial Services is also poised for continued growth due to its strong credit quality and an improving used truck market.
- Investments in New Truck Models and Advanced Technologies: PACCAR is making significant capital investments and R&D expenditures in next-generation products and technologies. These include the development of clean diesel and alternative powertrains, such as electric vehicles (e.g., the DAF CF Electric), advanced driver-assistance systems (ADAS), and integrated connected vehicle services. The launch of new truck models like DAF's 2025 range and Peterbilt's UltraLow Roof vehicles also contributes to this growth.
- Increased Truck Demand Driven by Regulatory Changes and Economic Clarity: The company anticipates an upturn in truck demand in the latter half of 2025 and into 2026. This expected increase is fueled by greater economic certainty, a rebalancing of capacity within the truckload sector, and anticipated pre-buy activity ahead of upcoming NOx reduction regulations. PACCAR projects an increase in the North American Class 8 truck market and the European above 16-tonne market for 2026.
- Strategic Geographic Expansion: PACCAR is expanding its operational footprint in key international markets. For instance, DAF Brazil is expanding its manufacturing facility to support regional growth, and PACCAR Financial Services is establishing a new used truck center in Warsaw, Poland, to boost used truck sales in Central Europe. These expansions aim to capitalize on growing market opportunities in specific regions.
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Share Repurchases
- PACCAR complements its cash dividends with stock repurchase programs as part of its consistent capital allocation strategy.
- Specific dollar amounts of share repurchases made or authorized within the last 3-5 years are not explicitly detailed in the provided information.
Share Issuance
- PACCAR's net common equity issued for 2024 was $47 million, following $48 million in 2023 and $34 million in 2022, indicating net issuances during these years.
- The number of shares outstanding has seen slight increases, with 0.527 billion in 2024 (a 0.3% increase from 2023), 0.525 billion in 2023 (a 0.31% increase from 2022), and 0.523 billion in 2022 (a 0.13% increase from 2021).
Outbound Investments
- In March 2023, PACCAR made a minority equity investment in Platform Science, its connected truck partner, to integrate Virtual Vehicle technology with the PACCAR Connect telematics system.
- In 2024, PACCAR partnered in the formation of Amplify Cell Technologies, a U.S. battery manufacturing joint venture, with PACCAR holding a 30 percent interest.
- PACCAR anticipates investing an additional $400 million to $700 million in its battery joint venture in 2025.
Capital Expenditures
- PACCAR's capital expenditures were $1.685 billion in 2024, $1.144 billion in 2023, $1.299 billion in 2022, and $1.435 billion in 2021.
- Projected capital expenditures (referred to as capital projects) are estimated to be in the range of $750 million to $775 million for 2025, and $725 million to $775 million for 2026.
- The primary focus of these capital investments includes next-generation clean diesel and alternative powertrains, integrated connected vehicle services, expanded manufacturing capabilities, advanced driver assistance systems, and investments in truck factories and global engine business, including manufacturing and remanufacturing capacity.
