PACCAR Achieves Record Annual Revenues and Net Income (2024)

PACCAR achieved quarterly revenues of $9.08 billion in the fourth quarter of 2023, compared to the $8.13 billion reported in the same period in 2022. The company earned $1.42 billion ($2.70 per diluted share) in the fourth quarter of 2023, 54% higher than the $921.3 million ($1.76 per diluted share) earned in the fourth quarter of 2022. PACCAR achieved record revenues of $35.13 billion in 2023, compared to revenues of $28.82 billion in 2022. The company earned $4.60 billion ($8.76 per diluted share) in 2023, including a $446.4 million after-tax, non-recurring charge related to civil litigation in Europe, compared to $3.01 billion ($5.75 per diluted share) earned in 2022. Excluding the non-recurring charge, the company earned adjusted net income (non-GAAP)[1] of $5.05 billion ($9.61 per diluted share) in 2023.

“PACCAR is manufacturing the most impressive new truck range in its history. These trucks deliver premium quality, excellent fuel efficiency and low operating costs to our customers. PACCAR is investing in the next generation of Kenworth, Peterbilt and DAF trucks that feature clean diesel, battery-electric, hydrogen combustion or fuel cell powertrains. PACCAR Parts and PACCAR Financial Services contributed significantly to the success of PACCAR and its customers in 2023,” added Feight.

Kenworth T680 Truck

The South American above 16-tonne truck market was 110,000 vehicles in 2023 and is estimated to be in the range of 105,000-115,000 trucks in 2024. DAF Brasil achieved a record 10.2% market share in the Brasil above 16-tonne market in 2023, compared to 6.9% in 2022.

PACCAR Parts achieved quarterly pre-tax income of $432.4 million, 14% higher than the $379.5 million earned in the fourth quarter of 2022. Fourth quarter 2023 revenues were $1.61 billion compared to $1.47 billion reported in the fourth quarter of 2022. PACCAR Parts achieved record annual pre-tax income of $1.70 billion, compared to $1.45 billion earned in 2022. Annual revenues were a record $6.41 billion compared to $5.76 billion in 2022. Laura Bloch, PACCAR vice president and PACCAR Parts general manager, said, “PACCAR Parts provides strong profitability through all phases of the business cycle. PACCAR Parts’ excellent long-term growth reflects the benefits of investments that increase vehicle uptime and convenience for customers, such as new parts distribution centers (PDCs), and a growing population of connected PACCAR vehicles with PACCAR MX Engines.”

PACCAR’s PDCs support more than 2,000 DAF, Kenworth and Peterbilt dealer sales, parts and service locations, and 300 TRP stores. These independent, well-capitalized dealers provide excellent service to customers, complementing the premium quality of DAF, Kenworth and Peterbilt vehicles.

PACCAR has begun construction of a new, 240,000 square-foot PACCAR PDC to be opened in Massbach, Germany, in 2024. This PDC will enhance parts delivery to dealers and customers in the region. PACCAR Parts’ 18 worldwide PDCs total 3.3 million square feet.

PACCAR Financial Services (PFS) achieved quarterly pretax income of $113.0 million in 2023, compared to $151.3 million earned in the fourth quarter of 2022. Fourth quarter 2023 revenues were $484.8 million compared to $394.8 million in the same quarter of 2022. PFS earned $540.3 million of pretax profit in 2023, compared to $588.9 million earned in 2022. PFS revenues were $1.81 billion in 2023 compared to $1.51 billion achieved in 2022. “PFS achieved good annual results due to its growing portfolio and strong portfolio quality. The used truck market normalized after two years of high volume and prices,” said Todd Hubbard, PACCAR vice president. “PFS is a leader in the market with its superior Kenworth, Peterbilt and DAF products, innovative technologies that provide seamless credit application and loan servicing processes, and its support of customers in all phases of the business cycle.”

PFS has a portfolio of 233,000 trucks and trailers, with total assets of $20.96 billion. PacLease, a major full-service truck leasing company in North America and Europe with a fleet of over 44,000 vehicles, is included in this segment. “PACCAR’s strong balance sheet, complemented by its A+/A1 credit ratings, enables PFS to offer competitive retail financing to Kenworth, Peterbilt and DAF dealers and customers in 26 countries on four continents,” said Craig Gryniewicz, PACCAR Financial Corp. president. “PACCAR Financial Services has excellent access to the debt markets, issuing $2.91 billion in medium-term notes during 2023.”

PACCAR showcased several advanced products and technologies at the Consumer Electronics Show in Las Vegas this month. On display were a Kenworth T680 fuel cell electric vehicle (FCEV), the Peterbilt SuperTruck II, a DAF XD battery electric truck and PACCAR Parts electric vehicle charging solutions.

“PACCAR’s industry-leading battery electric and hydrogen fuel cell electric vehicles help customers operate with reduced emissions and outstanding efficiency,” said Mike Dozier, PACCAR executive vice president.

PACCAR was honored in 2023 as a Top Company for Women to Work for in Transportation by the Women in Trucking Association. Paulo Bolgar, PACCAR vice president of human resources, said, “PACCAR recruits and develops a diverse workforce and supports their careers with resources such as the PACCAR Women’s Association, Diversity Councils, and training designed to develop leadership opportunities. PACCAR hires, develops and promotes talented people and ensures that our employees represent the diversity present in the global community.”

_{PACCAR is a global technology leader in the design, manufacture and customer support of high-quality light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt and DAF nameplates. PACCAR also designs and manufactures advanced powertrains, provides financial services and information technology, and distributes truck parts related to its principal business.}

PACCAR will hold a conference call with securities analysts to discuss fourth quarter earnings on January 23, 2024, at 9:00 a.m. Pacific time. Interested parties may listen to the call by selecting “Q4 Earnings Webcast” at PACCAR’s homepage. The webcast will be available on a recorded basis through January 30, 2024. PACCAR shares are traded on the Nasdaq Stock Market, symbol PCAR. Its homepage is www.paccar.com.

This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act. These statements are based on management’s current expectations and are subject to uncertainty and changes in circ*mstances. Actual results may differ materially from those included in these statements due to a variety of factors. More information about these factors is contained in PACCAR’s filings with the Securities and Exchange Commission.