PACCAR posted stronger second-quarter financial results as improving freight market conditions encouraged fleets to return to the truck market, even though global deliveries declined compared with the same period last year.
The truck manufacturer reported second-quarter earnings of $1.43 per diluted share, an increase of 6 cents year over year. Net income was $752 million, up 4% from the second quarter of 2025 and up 24% from the prior quarter. Revenue remained essentially unchanged at $7.55 billion, compared with $7.51 billion a year earlier.
The improved profitability came despite lower truck deliveries. PACCAR delivered 38,700 trucks worldwide during the quarter, down approximately 2% year over year. In the United States and Canada, deliveries fell from 23,000 to 22,000 units. However, record parts sales and a nearly 17% increase in pretax profit from the truck segment helped offset the lower production volumes.
PACCAR CEO Preston Feight said stronger customer demand and improving freight rates contributed to higher production levels during the quarter, with fleets continuing to choose the company’s Kenworth, Peterbilt, and DAF trucks.
The company expects U.S. and Canadian Class 8 retail sales to range between 230,000 and 270,000 units in 2026. Through the first half of the year, PACCAR delivered 39,800 trucks across the two markets, compared with 45,200 units during the same period in 2025.
According to Executive Vice President and Chief Technology Officer John Rich, improving freight rates and constrained industry capacity are encouraging fleet operators to replace older equipment. Many fleets delayed truck purchases over the past several years, resulting in an aging vehicle population that now creates demand for newer, more fuel-efficient models.
The European market also delivered positive results. DAF Trucks shipped 11,200 vehicles during the quarter, representing a 6% increase year over year, while European revenue climbed approximately 7% to $1.79 billion.
PACCAR’s aftermarket business remained one of the company’s strongest performers. PACCAR Parts generated record quarterly revenue of $1.75 billion, a 2% increase from the previous year, while pretax income reached $417 million. The division now operates 21 global distribution centers covering more than 4 million square feet, supporting over 2,000 DAF, Kenworth, and Peterbilt dealer locations, along with more than 350 TRP stores worldwide.
Bryan Sitko, Vice President and General Manager of PACCAR Parts, said improving freight conditions are expected to increase truck utilization, creating additional demand for maintenance, replacement parts, and service.
PACCAR Financial Services also delivered modest growth. The division generated $124.1 million in pretax income on $549.7 million in revenue while managing a portfolio of approximately 222,000 trucks and trailers with total assets of $22.3 billion.
However, the company noted that credit conditions remain under pressure. Loan-loss provisions increased to $39.4 million during the quarter, up from $29.2 million a year earlier. For the first six months of 2026, provisions reached $83.5 million, compared with $47.5 million during the same period last year, indicating that some transportation operators continue to face financial challenges despite improving used truck values.
Vice President Craig Gryniewicz said the finance division benefited from stable lending margins and a recovering used truck market during the first half of the year.
PACCAR also maintained its long-term investment strategy, spending $138.7 million on capital projects and $114.3 million on research and development during the second quarter. For the full year, the company expects capital expenditures between $700 million and $750 million, with research and development spending projected at $450 million to $480 million.
Chief Financial Officer Brice Poplawski said these investments will support the development of next-generation clean diesel, hybrid, and battery-electric powertrains, while expanding connected vehicle services and manufacturing capabilities.
Looking ahead, John Rich highlighted the U.S. The Environmental Protection Agency’s emissions guidance, released July 9, said the regulatory clarification should help fleets make purchasing decisions for the latter half of 2026 and into 2027.
PACCAR, the maker of Kenworth, Peterbilt and DAF, is often seen as a bellwether for demand in commercial vehicles. The recent uptick in build rates suggests fleets are starting to refresh aging equipment, a trend that could further tighten freight capacity and keep supporting freight rates through 2027.
