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.

• 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.

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:

• 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.
• 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.
• 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.

• Cummins Inc. (NYSE: CMI)
• Eaton Corporation plc (NYSE: ETN)
• Dana Incorporated (NYSE: DAN)
• The Goodyear Tire & Rubber Company (NASDAQ: GT)
• Michelin (EPA: ML)
• Bridgestone Corporation (TSE: 5108)
• Continental AG (ETR: CON)

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

PACCAR (PCAR) is expected to drive future revenue growth over the next two to three years through several key strategies and market dynamics:

1. 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.
2. 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.
3. 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.
4. 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.
5. 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.

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.