Truck maker Paccar Q3 revenue beats on parts, financial services growth

Overview

• U.S. truck maker's Q3 revenue rose 19% yr/yr, beating analyst expectations

• Adjusted EPS for Q3 beat analyst expectations

• Net income up 44% yr/yr, driven by higher truck margins and strong business performance

Outlook

• Company expects strong truck demand to continue in 2027, supported by U.S. economic growth

• Company estimates 2027 U.S. and Canada Class 8 truck sales at 240,000–280,000 units

• Company expects European above 16-tonne truck registrations to remain at 300,000–320,000 in 2027

Result Drivers

• TRUCK SEGMENT MARGINS - Co attributed profit growth to higher truck segment margins

• PARTS AND FINANCIAL SERVICES - Record PACCAR Parts revenue and strong profits in PACCAR Financial Services supported results

• TRUCK DEMAND - Co said fleet refreshes and U.S. economic growth contributed to strong truck demand

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 11 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the heavy machinery & vehicles peer group is "buy"

• Wall Street's median 12-month price target for Paccar Inc is $134.00, about 28.4% above its October 26 closing price of $104.37

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 19 three months ago

Reuters Recommended Reads

• Oct 27 - Boeing Q3 revenue beats estimates on defense volumes

• Oct 26 - Greenbrier Q4 adjusted EBITDA misses analyst estimates

• Oct 27 - Lincoln Electric Q3 sales beat on higher volumes

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)