PACCAR INC
For the period ended Jun 30, 2026. Filed Jul 29, 2026.
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.
Jun 30, 2026 · Filed Jul 29, 2026
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 2026-03-31; filed 2026-04-29.
0001193125-26-191499
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-29.
0001193125-26-323642
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 135 previous paragraphs and 170 current paragraphs.
44 unchanged; 72 reworded; 33 added; 18 removed; 1 previous and 21 current paragraphs rearranged.
Tables are not compared: 18 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 (33)
Current report
Second Quarter Financial Highlights:
Current report
Worldwide net sales and revenues were $7.55 billion in 2026 compared to $7.51 billion in 2025.
Current report
Truck sales were $5.25 billion in 2026 compared to $5.24 billion in 2025.
Current report
Parts sales were $1.75 billion in 2026 compared to $1.72 billion in 2025, primarily from higher sales in Europe.
Current report
Financial Services revenues were $549.7 million in 2026 compared to $547.7 million in 2025.
Current report
Net income was $752.0 million ($1.43 per diluted share) in 2026 compared to $723.8 million ($1.37 per diluted share) in 2025.
Current report
Capital investments were $138.7 million in 2026 compared to $221.1 million in 2025.
Current report
First Six Months Financial Highlights:
Current report
Parts sales were $3.46 billion in 2026 compared to $3.41 billion in 2025, primarily from higher sales in Europe.
Current report
Financial Services revenues were $1.09 billion in 2026 compared to $1.08 billion in 2025.
Current report
Capital investments were $274.2 million in 2026 compared to $393.0 million in 2025.
Current report
In the second quarter of 2026, Peterbilt unveiled the Freedom 250 Special Edition Model 589 truck, honoring America's historic 250 th birthday. This truck delivers the superior quality and pride of ownership that Peterbilt customers expect, with a red, white and blue design that celebrates freedom and the open road. Also in the second quarter, DAF Trucks was named 'Truck Manufacturer of the Year' by British Motor Trader magazine at its Commercial Industry Awards ceremony in the U.K.
Current report
The U.S. Environmental Protection Agency's July 2026 notice of proposed rulemaking (NPRM) reaffirmed the EPA 27 NOx emissions limits with proposed revisions to certain compliance requirements, including extended warranty periods, useful life requirements and other provisions. These revisions are intended to ensure technology readiness of new emissions powertrains and mitigate the costs of compliance associated with the useful life and warranty.
Current report
Average truck sales prices increased sales by $86.8 million, primarily due to higher price realization in the U.S. and Canada.
Current report
The currency translation effect on sales and cost of sales primarily reflects an increase in the value of the euro, Australian dollar, and Brazilian real relative to the U.S. dollar.
Current report
Truck gross margin was 9.4% in the second quarter of 2026 compared to 8.7% in the same period of 2025 due to the factors noted above.
Current report
Truck sales volume decreased revenues by $1.11 billion and costs by $913.3 million, primarily reflecting lower truck deliveries.
Current report
Average truck sales prices increased sales by $191.7 million, primarily due to higher price realization in the U.S. and Canada.
Current report
Truck gross margin was 8.3% in the first six months of 2026 compared to 9.2% in the same period of 2025 due to the factors noted above.
Current report
The Company’s worldwide parts net sales and revenues for the second quarter increased to $1.75 billion in 2026 from $1.72 billion in 2025. For the first six months, worldwide parts net sales and revenues increased to $3.46 billion in 2026 from $3.41 billion in 2025. The increase in both periods was primarily due to higher sales in Europe and favorable currency translation effects, partially offset by lower sales in the U.S. and Canada.
Current report
Average aftermarket parts sales prices increased sales by $69.3 million, primarily due to higher price realization in the U.S. and Canada and Europe.
Current report
The currency translation effect on sales and cost of sales primarily reflects an increase in the value of the euro, Australian dollar and Brazilian real relative to the U.S. dollar.
Current report
Parts gross margin was 29.8% in the second quarter of 2026 compared to 30.0% in the same period of 2025 due to the factors noted above.
Current report
Average aftermarket parts sales prices increased sales by $170.8 million, primarily due to higher price realization in the U.S. and Canada and Europe.
Current report
The currency translation effect on sales and cost of sales primarily reflects an increase in the value of the euro, Australian dollar, and Brazilian real relative to the U.S. dollar.
Current report
Parts gross margin was 29.7% in the first six months of 2026 compared to 30.3% in the same period of 2025 due to the factors noted above.
Current report
Average debt balances decreased $1.41 billion (excluding foreign exchange effects), decreasing interest and other borrowing costs by $16.4 million. The lower average debt balances reflect funding for a lower average earning assets portfolio, which includes loans, finance leases, wholesale receivables and equipment on operating lease.
Current report
Average debt balances decreased $1.26 billion (excluding foreign exchange effects), decreasing interest and other borrowing costs by $29.4 million. The lower average debt balances reflect funding for a lower average earning assets portfolio, which includes loans, finance leases, wholesale receivables and equipment on operating lease.
Current report
The currency translation effects reflect an increase in the value of foreign currencies relative to the U.S. dollar, primarily the Mexican peso and the euro.
Current report
The currency translation effects reflect an increase in the value of foreign currencies relative to the U.S. dollar, primarily the Mexican peso and the euro.
Current report
Financial Services SG&A for the second quarter of 2026 increased to $41.1 million from $40.1 million in the same period of 2025. For the first six months of 2026, Financial Services SG&A increased to $80.8 million from $78.4 million in the same period of 2025. The increase in both periods was due to unfavorable foreign currency translation effects.
Current report
The effective tax rate for the second quarter of 2026 was 23.4% compared to 22.3% for the second quarter of 2025. The effective tax rate for the first six months of 2026 was 22.8% compared to 22.0% for the same period of 2025. The increase in both periods was primarily attributable to a shift in the geographic mix of pre-tax earnings, with a greater proportion of earnings generated in foreign jurisdictions with higher statutory tax rates.
Current report
Domestic income before taxes improved in the second quarter of 2026 compared with the same period of 2025, primarily due to higher Truck operation results. Foreign income before taxes also increased, reflecting higher Truck, Parts and Financial Services operation results, primarily in Europe. Total pre-tax return on revenues increased in the second quarter of 2026 compared with the same period of 2025, reflecting higher returns in Truck operations.
Removed paragraphs (18)
Previous report
First Quarter Financial Highlights:
Previous report
Parts sales were $1.71 billion in 2026 compared to $1.69 billion in 2025.
Previous report
Financial Services revenues were $542.2 million in 2026 compared to $528.0 million in 2025.
Previous report
Capital investments were $135.5 million in 2026 compared to $171.9 million in 2025.
Previous report
Kenworth recently unveiled the new Kenworth C580 truck in the heavy-duty vocational segment. The C580 is designed to meet the most demanding vocational applications, such as mining and off-highway petroleum field work. DAF Trucks expanded its range of battery-electric trucks to include multiple axle tractor and rigid models for specific vocational applications such as construction. The new chassis models are available for the XD and XF Electric, which recently won the International Truck of the Year 2026, and for the larger XG and XG+ Electric, which feature the most spacious cabs in the European truck market.
Previous report
The U.S. Environmental Protection Agency announcement reaffirmed the EPA27 NOx limit. It could make
Previous report
changes to extended warranty requirements, useful life requirements or other modifications to new emissions systems.
Previous report
In addition to the capital and R&D investments, the Company expects to continue investing in its U.S.-based battery joint venture, Amplify Cell Technologies. During the first quarter, expectations on electric vehicle demand in the commercial vehicle market continued to change. As a result, the Company and its joint venture partners agreed to finish building out the facility, and adjust the timing for installing the manufacturing capacity. As a result of these changes the production start date will be extended. See discussion in Note A.
Previous report
Average truck sales prices increased sales by $104.9 million, primarily due to higher price realization in the U.S. and Canada.
Previous report
Truck gross margin was 7.0% in the first quarter of 2026 compared to 9.7% in the same period of 2025 due to the factors noted above.
Previous report
The Company’s worldwide parts net sales and revenues for the first quarter increased to $1.71 billion in 2026 from $1.69 billion in 2025. The decrease in the U.S. and Canada mainly reflects a softer retail market. The increase in Europe primarily reflects an increase in the value of the euro relative to the U.S. dollar.
Previous report
Average aftermarket parts sales prices increased sales by $101.5 million, primarily due to price realization in the U.S. and Canada and Europe.
Previous report
Parts gross margin was 29.6% in the first quarter of 2026 compared to 30.7% in the first quarter of 2025 due to the factors noted above.
Previous report
Average debt balances decreased $1.10 billion (excluding foreign exchange effects), decreasing interest and other borrowing costs by $13.0 million, reflecting lower funding requirements from a decrease in dealer wholesale receivables.
Previous report
The currency translation effects reflect an increase in the value of foreign currencies relative to the U.S. dollar, primarily the Mexican peso and euro.
Previous report
The currency translation effects reflect an increase in the value of foreign currencies relative to the U.S. dollar, primarily the euro and Mexican peso.
Previous report
Financial Services SG&A for the first quarter of 2026 increased to $39.7 million from $38.3 million in the first quarter of 2025, primarily reflecting an increase in the value of the euro and Mexican peso relative to the U.S. dollar, partially offset by lower salaries and related expenses.
Previous report
The effective tax rate for the first quarter of 2026 was 22.0% compared to 21.5% for the first quarter of 2025. Included in 2025 was the EC-related charge of $350.0 million, which lowered the effective tax rate.
Reworded paragraphs (72)
Previous wording
Research and development (R&D) expenses were $109.1 million in 2026 compared to $115.4 million in 2025.
Current wording
Research and development (R&D) expenses were $114.3 million in 2026 compared to $112.9 million in 2025.
Previous wording
Worldwide net sales and revenues were $6.78 billion in 2026 compared to $7.44 billion in 2025, primarily due to lower truck revenues, partially offset by higher parts and financial services revenues.
Current wording
Worldwide net sales and revenues were $14.32 billion in 2026 compared to $14.95 billion in 2025, primarily due to lower truck revenues, partially offset by higher parts and financial services revenues.
Previous wording
Truck sales were $4.53 billion in 2026 compared to $5.23 billion in 2025, due to lower truck deliveries in all major markets except Europe.
Current wording
Truck sales were $9.78 billion in 2026 compared to $10.47 billion in 2025, due to lower truck deliveries in all major markets except Europe.
Previous wording
Net income was $605.3 million ($1.15 per diluted share) in 2026 compared to $505.1 million ($.96 per diluted share) in 2025. In 2025, adjusted net income (non-GAAP), excluding a $264.5 million after-tax charge related to civil litigation in Europe, was $769.6 million ($1.46 per diluted share). See Reconciliation of GAAP to Non-GAAP Financial Measures on page 45.
Current wording
Net income was $1.36 billion ($2.57 per diluted share) in 2026 compared to $1.23 billion ($2.33 per diluted share) in 2025. In 2025, adjusted net income (non-GAAP), excluding a $264.5 million after-tax charge related to civil litigation in Europe, was $1.49 billion ($2.83 per diluted share). See Reconciliation of GAAP to Non-GAAP Financial Measures on page 53.
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 $22.35 billion. PFS issued $400.0 million in medium-term notes during the first three months of 2026 to support new business volume and market share growth and repay maturing debt.
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 $22.27 billion. PFS issued $1.38 billion in medium-term notes during the first six months of 2026 to support new business volume and market share growth and repay maturing debt.
Previous wording
Truck industry heavy-duty retail sales in the U.S. and Canada in 2026 are expected to be 230,000 to 270,000 units compared to 232,800 in 2025. In Europe, the 2026 truck industry registrations for over 16-tonne vehicles are expected to be 280,000 to 320,000 units compared to 297,000 in 2025. In South America, heavy-duty truck industry registrations in 2026 are projected to be 100,000 to 110,000 units compared to 115,000 in 2025.
Current wording
Truck industry heavy-duty retail sales in the U.S. and Canada in 2026 are expected to be 230,000 to 270,000 units compared to 232,800 in 2025. In Europe, 2026 truck industry registrations for over 16-tonne vehicles are expected to be 290,000 to 330,000 units compared to 297,000 in 2025. In South America, heavy-duty truck industry registrations in 2026 are projected to be 100,000 to 110,000 units compared to 115,000 in 2025.
Previous wording
The Company has taken mitigating actions to reduce the impact from import tariffs on truck order intake. The Company's North American truck factories are optimally located to operate under the new Section 232 truck tariffs that began in November 2025. The Company’s tariff exposure is minimized by producing trucks locally for the United States, Canada and Mexico. The Company manufactures its trucks for U.S. customers in its Ohio, Texas, and Washington state factories. Further on February 20, 2026, the United States Supreme Court issued a decision invalidating tariffs imposed under the International Emergency Economic Powers Act (IEEPA). This decision may provide tariff relief and the potential recovery of amounts previously paid.
Current wording
The Company has taken mitigating actions to reduce the impact from import tariffs on truck order intake. The Company's North American truck factories are optimally located to operate under the new Section 232 truck tariffs that began in November 2025. The Company’s tariff exposure is minimized by producing trucks locally for the United States, Canada and Mexico. On February 20, 2026, the United States Supreme Court issued a decision invalidating tariffs imposed under the International Emergency Economic Powers Act (IEEPA). This decision resulted in tariff relief and recovery of certain amounts previously paid.
Previous wording
In 2026, PACCAR Parts sales are expected to increase 3-6% compared to 2025, depending on the economic conditions.
Current wording
In 2026, PACCAR Parts sales are expected to increase 3-5% compared to 2025, depending on the economic conditions.
Previous wording
In 2026, average earning assets are expected to be comparable to 2025. The used truck market has begun improving. 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 and average earning assets would likely decline.
Current wording
In 2026, average earning assets are expected to be comparable to 2025. The used truck market is improving. 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 and average earning assets would likely decline.
Previous wording
Capital investments in 2026 are expected to be $725 to $775 million and R&D is expected to be $450 to $500 million. PACCAR is increasing its investment in next generation internal combustion, hybrid and battery-electric powertrains, integrated connected vehicle services, advanced manufacturing capabilities, and the Company's autonomous vehicle platform.
Current wording
Capital investments in 2026 are expected to be $700 to $750 million and R&D is expected to be $450 to $480 million. The Company continues to invest in next generation clean diesel, hybrid and battery-electric powertrains, integrated connected vehicle services, and expanded manufacturing capabilities.
Previous wording
The Company’s results of operations for the three months ended March 31, 2026 and 2025 are presented below.
Current wording
The Company’s results of operations for the three and six months ended June 30, 2026 and 2025 are presented below.
Previous wording
In 2025, Other includes a $350.0 million charge related to civil litigation in Europe (EC-related claims).
Current wording
In 2025, Other includes a $350.0 million charge related to civil litigation in Europe (EC-related claims) in the first quarter 2025.
Previous wording
The Company’s Truck segment accounted for 67% of revenues in the first quarter of 2026 compared to 70% in the first quarter of 2025.
Current wording
The Company’s Truck segment accounted for 70% and 68% of revenues in the second quarter and the first six months of 2026, respectively, compared to 70% in both the second quarter and the first six months of 2025.
Previous wording
Worldwide new truck deliveries decreased in the first quarter of 2026 compared to the same period of 2025, reflecting lower retail demand in all major markets except Europe.
Current wording
Worldwide new truck deliveries decreased in the second quarter of 2026 compared to the same period of 2025, primarily reflecting lower retail demand in the U.S and Canada, partially offset by improved demand in Europe and Mexico. New truck deliveries in first six months of 2026 decreased compared to the same period of 2025, reflecting lower retail demand in all major markets except Europe.
Previous wording
In the first three months of 2026, industry retail sales in the heavy-duty market in the U.S. and Canada was 44,900 units compared to 56,600 units in the same period of 2025. The Company’s heavy-duty truck retail market share was 29.4% in the first three months of 2026 compared to 29.1% in the first three months of 2025. The medium-duty market was 22,500 units in the first three months of 2026 compared to 26,000 units in the same period of 2025. The Company’s medium-duty market share was 12.8% in the first three months of 2026 compared to 14.5% in the first three months of 2025.
Current wording
In the first six months of 2026, industry retail sales in the heavy-duty market in the U.S. and Canada were 104,800 units compared to 120,800 units in the same period of 2025. The Company’s heavy-duty truck retail market share was 29.6% in the first six months of 2026 compared to 30.4% in the first six months of 2025. The medium-duty market was 50,800 units in the first six months of 2026 compared to 54,300 units in the same period of 2025. The Company’s medium-duty market share was 12.3% in the first six months of 2026 compared to 14.0% in the first six months of 2025. In 2026, the U.S. and Canada medium-duty market size and the Company's share for the prior-year periods have been revised, consistent with the third-party data provider.
Previous wording
The over 16‑tonne truck market in Europe in the first three months of 2026 was 79,800 units compared to 72,000 units in the first three months of 2025. DAF over 16‑tonne market share was 13.1% in the first three months of 2026 compared to 14.0% in the same period of 2025. The 6 to 16‑tonne market in the first three months of 2026 was 8,800 units compared to 9,700 units in the same period of 2025. DAF market share in the 6 to 16-tonne market in the first three months of 2026 was 9.6% compared to 10.7% in the same period of 2025.
Current wording
The over 16‑tonne truck market in Europe in the first six months of 2026 was 165,000 units compared to 151,100 units in the first six months of 2025. DAF over 16‑tonne market share was 13.6% in the first six months of 2026 compared to 14.2% in the same period of 2025. The 6 to 16‑tonne market in the first six months of 2026 was 18,300 units compared to 19,900 units in the same period of 2025. DAF market share in the 6 to 16-tonne market in the first six months of 2026 was 9.2% compared to 9.9% in the same period of 2025.
Previous wording
The over 16-tonne truck market in Brasil in the first three months of 2026 was 16,900 units compared to 21,500 units in the same period of 2025. DAF Brasil market share for the first three months of 2026 was 9.2% compared to 9.6% in the same period in 2025.
Current wording
The over 16-tonne truck market in Brasil in the first six months of 2026 was 37,200 units compared to 41,700 units in the same period of 2025. DAF Brasil market share for the first six months of 2026 was 7.6% compared to 9.4% in the same period of 2025.
Previous wording
The Company’s worldwide truck net sales and revenues in the first quarter decreased to $4.53 billion in 2026 from $5.23 billion in 2025, primarily due to lower unit truck deliveries from lower retail demand.
Current wording
The Company’s worldwide truck net sales and revenues in the second quarter of 2026 were comparable to the same period of 2025. Revenue for the first six months decreased to $9.78 billion in 2026 from $10.47 billion in 2025, primarily due to lower truck unit deliveries from lower retail demand in all major markets except Europe.
Previous wording
In the first quarter of 2026, Truck segment income before income taxes and pre-tax return on revenues decreased primarily due to lower truck unit deliveries from lower retail demand, reflecting economic conditions as well as higher tariff costs resulting from current trade policies, primarily in the U.S.
Current wording
In the second quarter of 2026, Truck segment income before income taxes and pre-tax return on revenues increased compared to the same period of 2025, primarily due to higher price realization and lower tariff costs. Truck segment income before income taxes and pre-tax return on revenues for the first six months of 2026 decreased from the same period of 2025, primarily due to lower truck unit deliveries from lower retail demand.
Previous wording
Truck sales volume decreased revenues by $972.0 million and costs by $826.6 million, primarily reflecting lower truck deliveries.
Current wording
Truck sales volume decreased revenues by $141.7 million and costs by $86.7 million, primarily reflecting lower truck deliveries.
Previous wording
Average cost per truck increased cost of sales by $162.3 million, primarily reflecting higher truck content, tariff and labor costs, partially offset by lower product support cost.
Current wording
Average cost per truck increased cost of sales by $27.3 million, primarily reflecting higher material, truck content and labor costs, partially offset by lower tariff and product support costs.
Previous wording
Extended warranties, operating leases and other increased revenues by $12.9 million, primarily due to higher volume of extended warranty contracts and R&M contracts. The increase in cost of sales by $1.8 million reflects higher costs from R&M contracts partially offset by lower extended warranty costs in the U.S. and Canada.
Current wording
Extended warranties, operating leases and other increased revenues by $4.6 million, primarily due to higher volume of R&M and extended warranty contracts. The decrease in cost of sales by $26.4 million reflects lower extended warranty costs in the U.S. and Canada and lower used truck costs in Europe, partially offset by higher costs from R&M contracts.
Previous wording
Truck SG&A expenses in the first quarter of 2026 increased to $61.4 million from $57.3 million in the first quarter of 2025, primarily due to higher sales and marketing expenses and higher currency translation effects, partially offset by lower salaries and related expenses and lower professional fees.
Current wording
Truck SG&A expenses in the second quarter of 2026 decreased to $50.0 million from $54.7 million in the same period of 2025, primarily due to lower salaries and related expenses and lower professional fees. For the first six months of 2026, Truck SG&A of $111.4 million was comparable to $112.0 million in the same period of 2025, as lower salaries and related expenses and lower professional fees were mostly offset by higher sales and marketing expenses and currency translation effects.
Previous wording
As a percentage of sales, Truck SG&A was 1.4% in the first quarter of 2026 compared to 1.1% in the first quarter of 2025.
Current wording
As a percentage of sales, Truck SG&A was 1.0% and 1.1% in the three and six months ended June 30, 2026, respectively, which is consistent with the same periods of 2025.
Previous wording
The Company’s Parts segment accounted for 25% of revenues in the first quarter 2026 compared to 23% in the first quarter of 2025.
Current wording
The Company’s Parts segment accounted for 23% and 24% of revenues in the second quarter and the first six months of 2026, respectively, compared to 23% in both the second quarter and the first six months of 2025.
Previous wording
Aftermarket parts sales volume decreased by $128.5 million and related cost of sales decreased by $65.7 million primarily due to lower sales volume in the U.S. and Canada and a higher mix of lower margin direct ship sales.
Current wording
Aftermarket parts sales volume decreased by $58.9 million and related cost of sales decreased by $12.7 million primarily due to lower sales volume in the U.S. and Canada and a higher mix of lower margin direct ship sales.
Previous wording
Average aftermarket parts direct costs increased $55.9 million due to higher material costs, primarily in the U.S. and Canada and Europe and higher tariff costs, primarily in the U.S.
Current wording
Average aftermarket parts direct costs increased $10.9 million due to higher material costs, primarily in the U.S. and Canada and Europe, partially offset by lower tariff costs and higher supplier rebates in the U.S.
Previous wording
Warehouse and other indirect costs increased $13.1 million, primarily due to higher indirect costs including R&M and depreciation expense.
Current wording
Warehouse and other indirect costs increased $12.0 million, primarily due to higher indirect costs, including warehouse expansion costs.
Previous wording
Parts SG&A expense in the first quarter of 2026 increased to $67.7 million from $60.9 million in the same period of 2025. The increase was primarily due to higher currency translation effects.
Current wording
Parts SG&A expense in the second quarter of 2026 increased to $67.8 million from $64.6 million in the same period of 2025. For the first six months 2026, Parts SG&A increased to $135.5 million from $125.5 million in the same period of 2025. The increase in both periods was primarily due to higher currency translation effects and higher system related costs.
Previous wording
As a percentage of sales, Parts SG&A was 4.0% in the first quarter of 2026 compared to 3.6% in the first quarter of 2025.
Current wording
As a percentage of sales, Parts SG&A was 3.9% in the three and six months ended June 30, 2026 compared to 3.8% and 3.7% in the three and six months ended June 30, 2025, respectively.
Previous wording
The Company’s Financial Services segment accounted for 8% of revenues in the first quarter of 2026 compared to 7% in the first quarter of 2025.
Current wording
The Company’s Financial Services segment accounted for 7% and 8% of revenues in the second quarter and the first six months of 2026, respectively, compared to 7% in both the second quarter and the first six months of 2025.
Previous wording
New loan and lease volume was $1.35 billion in the first quarter of 2026 compared to $1.51 billion in the first quarter of 2025. The decrease in new loan and lease volume was primarily due to lower retail sales of PACCAR trucks in the U.S. and Canada, Mexico and Brasil. The increase in equipment on operating lease dollar volume was primarily due to higher currency effect and market demand in Europe and Australia, partly offset by lower demand in Mexico. The effect of currency translation also increased new loan and lease volume by $70.7 million, primarily due to the euro.
Current wording
New loan and lease volume was $1.66 billion in the second quarter of 2026 compared to $1.85 billion in the second quarter of 2025. New loan and lease volume was $3.01 billion in the first six months of 2026 compared to $3.36 billion in the same period of 2025. The decrease in both periods was primarily due to lower new loan and lease volume from lower retail sales of PACCAR trucks, primarily in the U.S. and Canada, and lower finance market share, primarily in Brasil. The increase in equipment on operating lease dollar volume was primarily due to higher market demand in Europe and the U.S. and Canada, partly offset by lower demand in Mexico. The effects of currency translation increased new loan and lease volume by $42.2 million and $112.9 million in the second quarter and first six months of 2026, respectively, primarily due to an increase in the value of the Mexican peso and the euro relative to the U.S. dollar.
Previous wording
In the first quarter of 2026, PFS finance market share of new PACCAR truck sales was 24.2% compared to 24.6% in the first quarter of 2025.
Current wording
In the second quarter of 2026, PFS finance market share of new PACCAR truck sales was 24.7% compared to 25.9% in the same period of 2025. In the first six months of 2026, PFS finance market share of new PACCAR truck sales was 24.5% compared to 25.3% in the same period of of 2025.
Previous wording
In the first quarter of 2026, PFS revenues slightly increased to $542.2 million from $528.0 million in the first quarter of 2025. The increase was primarily due to a currency translation effect and higher average retail loan and finance lease portfolio, mostly offset by a lower dealer wholesale portfolio. The effects of currency translation increased PFS revenues by $34.6 million, primarily due to an increase in the value of the euro, Mexican peso and Brazilian real relative to the U.S. dollar.
Current wording
In the second quarter of 2026, PFS revenues slightly increased to $549.7 million from $547.7 million in the same period of 2025. In the first six months of 2026, PFS revenues increased to $1.09 billion from $1.08 billion in the same period of 2025. The increase in both periods was primarily due to favorable currency translation effects and higher average retail loan and finance lease portfolio, mostly offset by a lower dealer wholesale portfolio. The effects of currency translation increased PFS revenues by $21.7 million and $56.3 million in the three and six months ended June 30, 2026, respectively.
Previous wording
PFS income before income taxes decreased to $115.5 million in the first quarter of 2026 from $121.1 million in the first quarter of 2025. The decrease was primarily due to higher provision for losses, partially offset by favorable currency effects. The effects of currency translation increased PFS income before income taxes by $7.8 million, primarily from an increase in the value of the Mexican peso relative to the U.S. dollar.
Current wording
In the second quarter of 2026, PFS income before income taxes increased to $124.1 million from $123.2 million in the same period of 2025. The increase was primarily due to favorable currency translation effects and higher finance margin, mostly offset by a higher provision for losses. In the first six months of 2026, PFS income before income taxes decreased to $239.6 million from $244.3 million in the same period of 2025. The decrease in the first six months of 2026 was primarily due to a higher provision for losses, partly offset by favorable currency translation effects and improving used truck results. The effects of currency translation increased PFS income before income taxes by $5.8 million and $13.6 million in the second quarter and the first six months of 2026, respectively, primarily due to an increase in the value of the Mexican peso relative to the U.S. dollar.
Previous wording
Included in Financial Services Other assets on the Company’s Consolidated Balance Sheets are used trucks held for sale, net of impairments, of $354.0 million at March 31, 2026 and $389.4 million at December 31, 2025. These trucks are primarily units returned from matured operating leases in the ordinary course of business, and also include trucks acquired from repossessions or through acquisitions of used trucks in trades related to new truck sales and trucks returned from RVGs.
Current wording
Included in Financial Services Other assets on the Company’s Consolidated Balance Sheets are used trucks held for sale, net of impairments, of $318.6 million at June 30, 2026 and $389.4 million at December 31, 2025. These trucks are primarily units returned from matured operating leases in the ordinary course of business, and also include trucks acquired from repossessions or through acquisitions of used trucks in trades related to new truck sales and trucks returned from RVGs.
Previous wording
The Company recognized losses on used trucks, excluding repossessions, of $5.7 million in the first quarter of 2026 compared to $11.1 million in the first quarter of 2025, including $7.9 million of losses on multiple unit transactions in the first quarter of 2026 compared to $12.0 million in the first quarter of 2025. Used truck losses related repossessions, which are recognized as credit losses, were $4.7 million for the first quarter of 2026 and $3.3 million for the first quarter of 2025.
Current wording
The Company recognized losses on used trucks, excluding repossessions, of $6.3 million in the second quarter of 2026 compared to $7.5 million in the second quarter of 2025, including $4.9 million of losses on multiple unit transactions in the second quarter of 2026 compared to $9.0 million in the second quarter of 2025. Used truck losses related to repossessions, which are recognized as credit losses, were $7.4 million for the second quarter of 2026 and $3.3 million for the second quarter of 2025.
Previous wording
Average finance receivables decreased $301.7 million (excluding foreign exchange effects), decreasing interest and fees by $5.4 million, primarily due to lower dealer wholesale balances.
Current wording
Average finance receivables decreased $664.2 million (excluding foreign exchange effects), decreasing interest and fees by $11.8 million, primarily due to lower dealer wholesale balances.
Previous wording
Slightly lower borrowing rates (4.8% in 2026 compared to 4.9% in 2025) decreased interest and other borrowing expenses by $3.8 million and were primarily due to lower debt market rates, primarily in Europe and Mexico.
Current wording
Lower borrowing rates (4.8% in 2026 compared to 5.2% in 2025) decreased interest and other borrowing expenses by $10.5 million and were primarily due to lower debt market rates, primarily in Europe and Mexico.
Previous wording
Slightly lower portfolio yields (7.3% in 2026 compared to 7.4% in 2025) decreased interest and fees by $10.6 million. The lower portfolio yields were primarily due to lower market rates on new portfolio assets, primarily in the U.S.
Current wording
Slightly lower portfolio yields (7.3% in 2026 compared to 7.4% in 2025) decreased interest and fees by $23.8 million. The lower portfolio yields were primarily due to lower market rates on new portfolio assets, primarily in the U.S.
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Current report — wording carried from elsewhere
Research and development (R&D) expenses were $223.4 million in 2026 compared to $228.3 million in 2025.
Current report — wording carried from elsewhere
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, 2026 and 2025 are as follows:
Current report — wording carried from elsewhere
Average cost per truck increased cost of sales by $189.6 million, primarily reflecting higher material, truck content and labor costs, partially offset by lower tariff and product support costs.
Current report — wording carried from elsewhere
Factory overhead and other indirect costs decreased $14.4 million, primarily due to lower overhead costs from lower truck build rates.
Current report — wording carried from elsewhere
Extended warranties, operating leases and other increased revenues by $17.5 million, primarily due to higher volume of R&M and extended warranty contracts. The decrease in cost of sales by $24.6 million reflects lower extended warranty costs in the U.S. and Canada and lower used truck costs in Europe, partially offset by higher costs from R&M contracts.
Current report — wording carried from elsewhere
The major factors for the changes in Parts segment net sales and revenues, cost of sales and revenues and gross margin between the six months ended June 30, 2026 and 2025 are as follows:
Current report — wording carried from elsewhere
Aftermarket parts sales volume decreased by $187.4 million and related cost of sales decreased by $78.4 million primarily due to lower sales volume in the U.S. and Canada and a higher mix of lower margin direct ship sales.
Current report — wording carried from elsewhere
Average aftermarket parts direct costs increased $66.8 million primarily due to higher material costs, mainly in the U.S. and Canada and Europe.
Current report — wording carried from elsewhere
Warehouse and other indirect costs increased $25.1 million, primarily due to higher indirect costs, including warehouse expansion costs.
Current report — wording carried from elsewhere
The Company recognized losses on used trucks, excluding repossessions, of $12.0 million in the first six months of 2026 compared to $18.6 million in the same period of 2025, including $12.8 million of losses on multiple unit transactions in the first six months of 2026 compared to $21.0 million in the same period of 2025. Used truck losses related to repossessions, which are recognized as credit losses, were $12.1 million for the first six months of 2026 and $6.6 million for the first six months of 2025.
Current report — wording carried from elsewhere
Slightly lower portfolio yields (7.2% in 2026 compared to 7.4% in 2025) decreased interest and fees by $13.2 million. The lower portfolio yields were primarily due to lower market rates on new portfolio assets, primarily in the U.S.
Current report — wording carried from elsewhere
The currency translation effects reflect an increase in the value of foreign currencies relative to the U.S. dollar, primarily the Mexican peso and Brazilian real.
Current report — wording carried from elsewhere
The major factors for the changes in interest and fees, interest and other borrowing expenses and finance margin for the six months ended June 30, 2026 and 2025 are outlined below:
Current report — wording carried from elsewhere
Average finance receivables decreased $497.3 million (excluding foreign exchange effects), decreasing interest and fees by $17.2 million, primarily due to lower dealer wholesale balances.
Current report — wording carried from elsewhere
Lower borrowing rates (4.8% in 2026 compared to 5.1% in 2025) decreased interest and other borrowing expenses by $14.3 million and were primarily due to lower debt market rates, primarily in the U.S.
Current report — wording carried from elsewhere
The currency translation effects reflect an increase in the value of foreign currencies relative to the U.S. dollar, primarily the Mexican peso and Brazilian real.
Current report — wording carried from elsewhere
Revenue per asset increased $6.3 million primarily due to higher average truck values financed. Cost per asset increased $4.3 million due to higher depreciation and operating expenses, mainly in the U.S. and Canada and Europe.
Current report — wording carried from elsewhere
The major factors for the changes in operating lease, rental and other revenues, depreciation and other expenses and lease margin between the six months ended June 30, 2026 and 2025 are outlined below:
Current report — wording carried from elsewhere
Used truck sales from units received on trade increased revenues by $15.1 million and increased related depreciation and other expenses by $16.0 million, reflecting higher used truck sales volume in Europe.
Current report — wording carried from elsewhere
Results on returned lease assets decreased depreciation and other expenses by $7.8 million, primarily due to improved used truck pricing.
Current report — wording carried from elsewhere
Average operating lease assets decreased $111.9 million (excluding foreign exchange effects), which decreased revenues by $34.1 million and related depreciation and other expenses by $27.3 million.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
The currency translation effect on sales and cost of sales primarily reflects an increase in the value of the euro relative to the U.S. dollar.