PACCAR Q2 revenue and EPS beat expectations on strong truck orders

Overview

• U.S. truck maker's Q2 revenue rose, beating analyst expectations

• EPS for Q2 beat analyst expectations

• Company cites higher build rates and strong orders amid improved freight rates

Outlook

• Company projects 2026 capital expenditures of $700-$750 mln and RD expenses of $450-$480 mln

• U.S. and Canada Class 8 truck industry retail sales estimated at 230,000–270,000 units in 2026

• European above 16-tonne truck registrations seen at 290,000–330,000 vehicles in 2026

Result Drivers

• STRONG TRUCK ORDERS - Co said higher build rates and strong customer orders drove Q2 performance, supported by improved freight rates

• RECORD PARTS REVENUE - PACCAR Parts achieved record quarterly revenues, reflecting higher truck utilization and investments in distribution and service capabilities

Company press release: ID:nBw5PSKlGa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 13 "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 $126.50, about 5.2% below its July 27 closing price of $133.44

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 19 three months ago

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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.)