PACCAR INC (PCAR)

PACCAR Inc is a multinational company that designs, manufactures and distributes commercial trucks, supplies aftermarket parts, and provides finance and leasing services. It was incorporated in Delaware in 1971 as the successor to Pacific Car and Foundry Company (incorporated in Washington in 1924), and traces its predecessors to Seattle Car Manufacturing Company, formed in 1905.

The company operates three segments. The Truck segment, the largest at 68% of 2025 net sales and revenues, makes light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt and DAF nameplates, in conventional and cab-over-engine configurations. It also designs and manufactures diesel engines, mainly for its own trucks, in Columbus, Mississippi; Eindhoven, the Netherlands; and Ponta Grossa, Brasil. The Parts segment (24% of revenues) distributes aftermarket parts for trucks and related commercial vehicles, including under the TRP brand. The Financial Services segment (8% of revenues but 51% of total assets) operates under the PACCAR Financial and PacLease names. It provides dealer inventory financing, retail loans and leases, and full-service leasing, and it manages sales of used trucks.

Trucks are used worldwide for over-the-road and off-highway hauling of commercial and consumer goods, and substantially all are sold through independent dealers, mostly built to customer specifications. Parts are sold to over 2,000 Kenworth, Peterbilt and DAF dealers and more than 350 TRP stores in 99 countries. Financial Services operates in 26 countries across North America, Europe, Australia and South America. Its customers are small, medium and large trucking companies, owner/operators and other businesses, plus dealers. PACCAR does not depend on any single customer and has no significant seasonal variation in sales. Its year-end 2025 production backlog was $4.9 billion.

Trucks are built in three plants in the U.S., three in Europe and one each in Australia, Brasil, Canada and Mexico. Parts move through 21 distribution centers. PACCAR buys engines from Cummins, transmissions from Eaton and ZF, and cab stampings from Magna under long-term agreements. DAF is more vertically integrated and buys cabs for its European light- and medium-duty trucks from Renault V.I. PACCAR engines were installed in about 29% of U.S. and Canadian Kenworth and Peterbilt heavy-duty trucks in 2025. The company faces four principal competitors in the U.S. and Canada and six in Europe. It held 29.9% of the U.S. and Canadian Class 8 market and 15.9% of the medium-duty market, and DAF held 13.5% of the European heavy-duty market and 9.7% of the light/medium-duty market. Financial Services competes with commercial banks and independent finance and leasing companies, and it funds itself mainly through collections on receivables and capital-market borrowings. DAF's parent subsidiary is headquartered in the Netherlands.