PACCAR INC
For the period ended Sep 30, 2024. Filed Oct 30, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Oct 30, 2024
PCAR$101.98-2.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-07-31.
0000950170-24-088553
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-10-30.
0000950170-24-118960
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 165 previous paragraphs and 164 current paragraphs.
44 unchanged; 106 reworded; 13 added; 12 removed; 3 previous and 1 current paragraphs rearranged.
Tables are not compared: 23 previous and 23 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (13)
Current report
Third Quarter Financial Highlights:
Current report
Truck revenues were $6.03 billion in 2024 compared to $6.64 billion in 2023, from lower revenues in Europe and the U.S. and Canada.
Current report
Capital investments were $183.8 million in 2024 compared to $174.5 million in 2023.
Current report
First Nine Months Financial Highlights:
Current report
Truck revenues were $19.15 billion in 2024, compared to $19.88 billion in 2023, from lower revenues in Europe mostly offset by all other markets.
Current report
Parts sales were $5.00 billion in 2024 compared to $4.80 billion in 2023, reflecting higher sales in all markets.
Current report
Capital investments were $567.7 million in 2024 compared to $486.5 million in 2023.
Current report
PACCAR Parts opened its new 240,000 square-foot Parts Distribution Center (PDC) in Massbach, Germany. This PDC expedites parts delivery to dealers and customers in the region. PACCAR’s 20 PDCs support more than 2,000 DAF, Kenworth and Peterbilt dealer sales, parts and service locations, and over 300 TRP stores.
Current report
PACCAR’s excellent long-term profits, strong balance sheet and consistent focus on quality have enabled the Company to invest $8.4 billion in new and expanded facilities, innovative products and new technologies during the past decade. Capital investments in 2024 are expected to be $760 to $800 million and R&D is expected to be $450 to $470 million. In 2025, capital investments are projected to be $700 to $800 million and R&D is expected to be $480 to $530 million. PACCAR is investing in additional global engine manufacturing capacity, and in the construction of a new engine remanufacturing facility that will be located in Columbus, Mississippi. Truck factory investments include the expansion at Kenworth Chillicothe, Ohio, PACCAR Mexico, and the DAF electric truck assembly plant in Eindhoven, Netherlands. The Company expects to invest $600 to $900 million in its battery joint venture, Amplify Cell Technologies, over the next few years.
Current report
Warehouse and other indirect costs increased $4.8 million, primarily due to higher salaries and related expenses.
Current report
Warehouse and other indirect costs increased $11.1 million, primarily due to higher salaries and related expenses.
Current report
The currency translation effect on sales reflects an increase in the value of the euro relative to the U.S dollar partially offset by a decrease in the value of the Brazilian real, Canadian dollar and Australian dollar relative to the U.S. dollar.
Current report
The currency translation effects on Operating lease, rental and other revenues reflects a decrease in the value of foreign currencies relative to the U.S. dollar, primarily Mexican peso, partially offset by an increase in the euro.
Removed paragraphs (12)
Previous report
Second Quarter Financial Highlights:
Previous report
Truck revenues were $6.58 billion in 2024 compared to $6.83 billion in 2023, reflecting lower revenue in Europe.
Previous report
Capital investments were $219.6 million in 2024 compared to $179.1 million in 2023.
Previous report
First Six Months Financial Highlights:
Previous report
Truck revenues were $13.12 billion in 2024, comparable to $13.24 billion in 2023.
Previous report
Parts sales were $3.34 billion in 2024 compared to $3.22 billion in 2023, primarily due to higher sales in all markets.
Previous report
Capital investments were $383.9 million in 2024 compared to $312.0 million in 2023.
Previous report
PACCAR opened a new 80,000 square-foot PACCAR Parts Distribution Center (PDC) in Bogota, Colombia in the second quarter 2024 to enhance parts delivery in South America. PACCAR is constructing a new, 240,000 square-foot PDC in Massbach, Germany to be opened in 2024. The new PDC in Germany will enhance parts delivery to dealers and customers in Europe.
Previous report
In the second quarter, PACCAR, Cummins, Daimler Truck and EVE Energy completed the formation of their U.S. battery manufacturing joint venture, Amplify Cell Technologies, and began construction of its 21-gigawatt hour (GWh) battery factory in Marshall County, Mississippi. The factory is expected to start production in 2027. PACCAR anticipates investing $600-$900 million in the joint venture over the next several years. During the three months ended June 30, 2024, PACCAR contributed $51.7 million to the joint venture.
Previous report
Warehouse and other indirect costs increased $2.8 million, primarily due to higher salaries and related expenses.
Previous report
Warehouse and other indirect costs increased $6.3 million, primarily due to higher salaries and related expenses.
Previous report
The currency translation effect on sales and cost of sales primarily reflects a fluctuation in the value of the euro relative to the U.S. dollar.
Reworded paragraphs (106)
Previous wording
Worldwide net sales and revenues were $8.77 billion in 2024 compared to $8.88 billion in 2023, primarily due to lower truck revenues, partially offset by higher parts and financial services revenues.
Current wording
Worldwide net sales and revenues were $8.24 billion in 2024 compared to $8.70 billion in 2023, primarily due to lower truck revenues, partially offset by higher parts and financial services revenues.
Previous wording
Parts sales were $1.66 billion in 2024 compared to $1.60 billion in 2023, primarily due to higher sales in all markets.
Current wording
Parts sales were $1.66 billion in 2024 compared to $1.58 billion in 2023, reflecting higher sales in all markets.
Previous wording
Financial Services revenues were $509.8 million in 2024 compared to $439.8 million in 2023, primarily due to higher interest income driven by portfolio growth and higher portfolio yields.
Current wording
Financial Services revenues were $536.1 million in 2024 compared to $464.1 million in 2023, primarily due to higher interest income driven by portfolio growth and higher portfolio yields.
Previous wording
Net income was $1.12 billion ($2.13 per diluted share) in 2024 compared to $1.22 billion ($2.33 per diluted share) in 2023.
Current wording
Net income was $972.1 million ($1.85 per diluted share) in 2024 compared to $1.23 billion ($2.34 per diluted share) in 2023.
Previous wording
Research and development (R&D) expenses were $117.1 million in 2024 compared to $101.3 million in 2023.
Current wording
Research and development (R&D) expenses were $115.0 million in 2024 compared to $103.5 million in 2023.
Previous wording
Worldwide net sales and revenues were $17.52 billion in 2024 compared to $17.35 billion in 2023, primarily due to higher parts and financial services revenues.
Current wording
Worldwide net sales and revenues were $25.76 billion in 2024 compared to $26.05 billion in 2023, primarily due to lower truck revenues, partially offset by higher parts and financial services revenues.
Previous wording
Financial Services revenues were $1.02 billion in 2024 compared to $863.0 million in 2023, primarily due to higher interest income driven by portfolio growth and higher portfolio yields.
Current wording
Financial Services revenues were $1.56 billion in 2024 compared to $1.33 billion in 2023, primarily due to higher interest income driven by portfolio growth and higher portfolio yields.
Previous wording
Net income was $2.32 billion ($4.40 per diluted share) in 2024 compared to $1.96 billion ($3.73 per diluted share) in 2023. In 2023, adjusted net income (non-GAAP), excluding a $446.4 million after-tax non-recurring charge related to civil litigation in Europe was $2.40 billion ($4.58 per diluted share). See Reconciliation of GAAP to Non-GAAP Financial Measures on page 49.
Current wording
Net income was $3.29 billion ($6.25 per diluted share) in 2024 compared to $3.18 billion ($6.07 per diluted share) in 2023. In 2023, adjusted net income (non-GAAP), excluding a $446.4 million after-tax non-recurring charge related to civil litigation in Europe was $3.63 billion ($6.92 per diluted share). See Reconciliation of GAAP to Non-GAAP Financial Measures on page 50.
Previous wording
Research and development (R&D) expenses were $222.6 million in 2024 compared to $198.5 million in 2023.
Current wording
Research and development (R&D) expenses were $337.6 million in 2024 compared to $302.0 million in 2023.
Previous wording
The PACCAR Financial Services (PFS) group of companies has operations covering four continents and 26 countries. The global breadth of PFS and its rigorous credit application process support a portfolio of loans and leases with total assets of $21.33 billion.
Current wording
The PACCAR Financial Services (PFS) group of companies has operations covering four continents and 26 countries. The global breadth of PFS and its rigorous credit application process support a portfolio of loans and leases with total assets of $22.48 billion. PFS issued $3.25 billion in medium-term notes during the first nine months of 2024 to support new business volume and repay maturing debt.
Previous wording
Truck industry heavy-duty retail sales in the U.S. and Canada in 2024 are expected to be 240,000 to 280,000 units compared to 297,000 in 2023. In Europe, 2024 truck industry registrations for over 16-tonne vehicles are expected to be 260,000 to 300,000 units compared to 343,300 in 2023. In South America, heavy-duty truck industry registrations in 2024 are projected to be 105,000 to 115,000 as compared to 105,000 in 2023.
Current wording
Truck industry heavy-duty retail sales in the U.S. and Canada in 2024 are expected to be 250,000 to 270,000 units compared to 297,000 in 2023. Estimates for the U.S. and Canada truck industry heavy-duty retail sales in 2025 are in the range of 250,000 to 280,000 units. In Europe, 2024 truck industry registrations for over 16-tonne vehicles are expected to be 290,000 to 310,000 units compared to 343,300 in 2023. The European truck registrations in the above 16-tonne truck market for 2025 are projected to be in a range of 270,000 to 300,000 units. In South America, heavy-duty truck industry registrations in 2024 are projected to be 110,000 to 120,000 units compared to 105,000 in 2023, and in a similar range for 2025.
Previous wording
In 2024, PACCAR Parts sales are expected to increase 3-5% compared to 2023, reflecting stable demand.
Current wording
In 2024, PACCAR Parts sales are expected to increase 3-5% compared to 2023, reflecting stable demand. In 2025, PACCAR Parts sales could increase 3-5% from 2024 levels, depending on the economic conditions.
Previous wording
In 2024, average earning assets are expected to increase 5-8% compared to 2023. If freight transportation conditions decline due to a weaker economy, then past due accounts, truck repossessions and credit losses would likely increase from the current levels and new business volume would likely decline.
Current wording
In 2024, average earning assets are expected to increase 8-11% compared to 2023. The used truck market has normalized in North America, but remains soft in Europe, which is reflected in PFS’ quarterly results this year. If freight transportation conditions decline due to a weaker economy, then past due accounts, truck repossessions and credit losses would likely increase from the current levels and new business volume would likely decline. In 2025, average earning assets are expected to be comparable to 2024.
Previous wording
The Company’s results of operations for the three and six months ended June 30, 2024 and 2023 are presented below.
Current wording
The Company’s results of operations for the three and nine months ended September 30, 2024 and 2023 are presented below.
Previous wording
The Company’s Truck segment accounted for 75% of revenues in the second quarter and first six months of 2024, compared to 77% and 76% in the second quarter and first six months of 2023, respectively.
Current wording
The Company’s Truck segment accounted for 73% of revenues in the third quarter and 74% for first nine months of 2024, respectively, compared to 76% in both the third quarter and first nine months of 2023.
Previous wording
Worldwide new truck deliveries decreased in the second quarter and first six months of 2024 compared to the same period of 2023, primarily due to lower deliveries in Europe, partially offset by higher deliveries in the U.S. and Canada.
Current wording
Worldwide new truck deliveries decreased in the third quarter and first nine months of 2024 compared to the same periods of 2023, primarily due to lower deliveries in Europe.
Previous wording
In the first six months of 2024, industry retail sales in the heavy-duty market in the U.S. and Canada were 127,600 units compared to 151,000 units in the same period of 2023. The Company’s heavy-duty truck retail market share was 31.5% in the first six months of 2024 compared to 27.7% in the first six months of 2023. The medium-duty market was 52,300 units in the first six months of 2024 compared to 52,400 units in the same period of 2023. The Company’s medium-duty market share was 17.3% in the first six months of 2024 compared to 12.8% in the first six months of 2023.
Current wording
In the first nine months of 2024, industry retail sales in the heavy-duty market in the U.S. and Canada were 198,600 units compared to 225,200 units in the same period of 2023. The Company’s heavy-duty truck retail market share was 31.1% in the first nine months of 2024 compared to 28.4% in the first nine months of 2023. The medium-duty market was 80,800 units in the first nine months of 2024 compared to 78,400 units in the same period of 2023. The Company’s medium-duty market share was 17.2% in the first nine months of 2024 compared to 13.5% in the first nine months of 2023.
Previous wording
The over 16‑tonne truck market in Europe in the first six months of 2024 was 174,800 units compared to 176,000 units in the first six months of 2023. DAF over 16‑tonne market share was 13.7% in the first six months of 2024 compared to 16.1% in the same period of 2023. The 6 to 16‑tonne market in the first six months of 2024 was 27,700 units compared to 23,300 units in the same period of 2023. DAF market share in the 6 to 16-tonne market in the first six months of 2024 was 8.4% compared to 9.1% in the same period of 2023.
Current wording
The over 16‑tonne truck market in Europe in the first nine months of 2024 was 239,800 units compared to 263,100 units in the first nine months of 2023. DAF over 16‑tonne market share was 14.0% in the first nine months of 2024 compared to 15.9% in the same period of 2023. The 6 to 16‑tonne market in the first nine months of 2024 was 38,900 units compared to 35,800 units in the same period of 2023. DAF market share in the 6 to 16-tonne market in the first nine months of 2024 was 9.1% compared to 9.0% in the same period of 2023.
Previous wording
The over 16-tonne truck market in Brasil in the first six months of 2024 was 44,600 units compared to 39,100 units in the same period of 2023. DAF Brasil market share for the first six months of 2024 was 10.3% compared to 9.2% in the same period in 2023.
Current wording
The over 16-tonne truck market in Brasil in the first nine months of 2024 was 71,500 units compared to 59,500 units in the same period of 2023. DAF Brasil market share for the first nine months of 2024 was 10.0% compared to 9.9% in the same period in 2023.
Previous wording
The Company’s worldwide truck net sales and revenues in the second quarter decreased to $6.58 billion in 2024 from $6.83 billion in 2023, primarily due to lower truck unit deliveries in Europe. Revenues for the first six months were comparable to the same period in 2023, as lower truck unit deliveries in Europe were mostly offset by higher truck deliveries and average sales prices in the U.S. and Canada.
Current wording
The Company’s worldwide truck net sales and revenues in the third quarter decreased to $6.03 billion in 2024 from $6.64 billion in 2023, primarily due to lower truck unit deliveries in Europe and the U.S. and Canada. Revenues for the first nine months decreased to $19.15 billion in 2024 from $19.88 billion in 2023, primarily due to lower truck deliveries in Europe, partially offset by higher truck deliveries and average sales prices in the U.S. and Canada.
Previous wording
In the second quarter and first six months of 2024, Truck segment income before taxes and pretax return on revenues decreased primarily due to lower truck unit deliveries in Europe, partially offset by higher truck unit deliveries in the U.S. and Canada.
Current wording
In the third quarter and first nine months of 2024, Truck segment income before taxes and pretax return on revenues decreased primarily due to lower truck unit deliveries in Europe. The decrease was partially offset by higher truck unit deliveries in Mexico, South America, Australia and other for the third quarter, and by higher truck unit deliveries in the U.S. and Canada for the first nine months of 2024, respectively.
Previous wording
Truck sales volume decreased revenues by $272.1 million and costs by $211.9 million, primarily reflecting lower truck deliveries in Europe, partially offset by higher truck deliveries in the U.S., Canada, South America and Mexico.
Current wording
Truck sales volume decreased revenues by $578.2 million and costs by $456.1 million, primarily reflecting lower truck deliveries in Europe, the U.S. and Canada, partially offset by higher truck deliveries in Mexico, South America and Australia.
Previous wording
Average truck sales prices were comparable and increased $45.9 million.
Current wording
Average truck sales prices were comparable and decreased $29.5 million.
Previous wording
Average truck costs were comparable and increased $48.6 million, primarily reflecting higher raw material and labor costs, partially offset by lower warranty costs.
Current wording
Average truck costs increased $174.5 million, primarily reflecting higher raw material, labor and warranty costs.
Previous wording
Factory overhead and other indirect costs increased $50.1 million, primarily due to higher labor costs partially offset by lower factory supplies and utilities costs.
Current wording
Factory overhead and other indirect costs decreased $14.3 million, primarily due to lower repair and maintenance costs, factory supplies and depreciation.
Previous wording
Extended warranties, operating leases and other increased revenues by $16.4 million primarily due to higher volume of extended warranty and R&M contracts. The increase in extended warranty, operating leases and other cost of $28.5 million reflects higher costs from extended warranty, R&M contracts, and lower used truck results, primarily in Europe.
Current wording
Extended warranties, operating leases and other increased revenues by $17.7 million primarily due to higher volume of extended warranty and R&M contracts. The increase in extended warranty, operating leases and other cost of $33.1 million reflects higher costs from extended warranty, R&M contracts, and lower used truck results.
Previous wording
The currency translation effect on sales and cost of sales primarily reflects a decline in the value of the Brazilian real, euro and Canadian dollar relative to the U.S. dollar.
Current wording
The currency translation effect on sales and cost of sales primarily reflects a decline in the value of the Brazilian real and Canadian dollar relative to the U.S. dollar, partially offset by the increase in the value of the euro relative to the U.S. dollar.
Previous wording
Truck gross margin was 15.0% in the second quarter of 2024 compared to 16.0% in the same period of 2023 due to the factors noted above.
Current wording
Truck gross margin was 13.0% in the third quarter of 2024 compared to 16.8% in the same period of 2023 due to the factors noted above.
Previous wording
The major factors for the Truck segment changes in net sales and revenues, cost of sales and revenues and gross margin between the six months ended June 30, 2024 and 2023 are as follows:
Current wording
The major factors for the Truck segment changes in net sales and revenues, cost of sales and revenues and gross margin between the nine months ended September 30, 2024 and 2023 are as follows:
Previous wording
Truck sales volume decreased revenues by $372.6 million and costs by $314.6 million, primarily reflecting lower truck deliveries in Europe, partially offset by higher truck deliveries in the U.S. and Canada.
Current wording
Truck sales volume decreased revenues by $950.8 million and costs by $770.7 million, primarily reflecting lower truck deliveries in Europe, partially offset by higher truck deliveries in the U.S. and Canada.
Previous wording
Average truck sales prices increased by $223.7 million from modest price realization, primarily in the U.S., Canada and Australia, and the positive effect of new truck models.
Current wording
Average truck sales prices increased by $194.2 million from modest price realization, primarily in the U.S. and Canada, Mexico and Australia.
Previous wording
Average truck costs increased by $223.7 million, primarily reflecting higher raw material and labor costs, partially offset by lower warranty costs.
Current wording
Average truck costs increased by $398.2 million, primarily reflecting higher raw material and labor costs, partially offset by lower warranty costs.
Previous wording
Factory overhead and other indirect costs increased $30.4 million, primarily due to higher labor costs partially offset by lower factory supplies and utilities costs.
Current wording
Factory overhead and other indirect costs increased $35.8 million, primarily due to higher labor costs, partially offset by lower factory supplies and utilities costs.
Previous wording
Extended warranties, operating leases and other increased revenues by $42.2 million primarily due to higher volume of extended warranty, dealer support services and R&M contracts. The increase in extended warranty, operating leases and other cost of $67.5 million reflects higher costs from dealer support services, extended warranty, R&M contracts, and lower used truck results in Europe.
Current wording
Extended warranties, operating leases and other increased revenues by $59.9 million primarily due to higher volume of extended warranty, dealer support services and R&M contracts. The increase in extended warranty, operating leases and other cost of $100.6 million reflects higher costs from dealer support services, extended warranty, R&M contracts, and lower used truck results.
Previous wording
The currency translation effect on sales and cost of sales primarily reflects a decline in the value of the Australian dollar, Canadian dollar and the Brazilian real relative to the U.S. dollar.
Current wording
The currency translation effect on sales and cost of sales primarily reflects a decline in the value of the Brazilian real, Canadian dollar and the Australian dollar relative to the U.S. dollar, partially offset by the increase in value of the euro relative to the U.S. dollar.
Previous wording
Truck gross margin was 15.3% in the first six months of 2024 compared to 16.1% in the same period of 2023 due to the factors noted above.
Current wording
Truck gross margin was 14.6% in the first nine months of 2024 compared to 16.3% in the same period of 2023 due to the factors noted above.
Previous wording
Truck selling, general and administrative (SG&A) expense decreased in the second quarter of 2024 to $59.7 million from $62.7 million in 2023, and for the first six months of 2024, Truck SG&A decreased to $121.4 million from $135.1 million in 2023. The decrease in both periods was primarily due to lower sales and marketing and professional expenses, partially offset by higher salaries and related expenses.
Current wording
Truck selling, general and administrative (SG&A) expense decreased in the third quarter of 2024 to $61.9 million from $71.5 million in 2023, primarily due to lower salaries and related expenses and professional expenses. For the first nine months of 2024, Truck SG&A decreased to $183.3 million from $206.6 million in 2023, primarily due to lower professional expenses.
Previous wording
As a percentage of sales, Truck SG&A was .9% for both second quarter and first six months of 2024, compared to .9% and 1.0% in the second quarter and first six months of 2023, respectively.
Current wording
As a percentage of sales, Truck SG&A was 1.0% for both the third quarter and first nine months of 2024, compared to 1.1% and 1.0% in the third quarter and first nine months of 2023, respectively.
Previous wording
The Company’s Parts segment accounted for 19% of revenues in the second quarter and first six months of 2024, compared to 18% and 19% in the second quarter and first six months of 2023, respectively.
Current wording
The Company’s Parts segment accounted for 20% of revenues in the third quarter and first nine months of 2024, compared to 19% for both the third quarter and first nine months of 2023.
Previous wording
The Company’s worldwide parts net sales and revenues for the second quarter increased to $1.66 billion in 2024 from $1.60 billion in 2023. For the first six months, worldwide parts net sales and revenues increased to $3.34 billion in 2024 from $3.22 billion in 2023. The increase in both periods was primarily due to higher sales in all markets.
Current wording
The Company’s worldwide parts net sales and revenues for the third quarter increased to $1.66 billion in 2024 from $1.58 billion in 2023. For the first nine months, worldwide parts net sales and revenues increased to $5.00 billion in 2024 from $4.80 billion in 2023. The increase in both periods was primarily due to higher sales in all markets.
Showing the first 40 of 106 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
The currency translation effects reflect a decrease in the value of foreign currencies relative to the U.S. dollar, primarily the Brazilian real and Mexican peso.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
PFS issued $1.71 billion in medium-term notes during the first six months of 2024 to support new business volume and repay maturing debt.
Previous report — wording carried elsewhere
Capital investments in 2024 are expected to be $725 to $775 million and R&D is expected to be $460 to $480 million. The Company is increasing its investment in new powertrains, advanced manufacturing capabilities and capacity, and aftermarket distribution capabilities and capacity.
Previous report — wording carried elsewhere
The currency translation effects reflect an increase in the value of foreign currencies relative to the U.S. dollar, primarily the Mexican peso.