PACCAR reports strong Q3 revenues and profits

PACCAR Inc, a global manufacturer of trucks and transportation solutions, announced strong third-quarter revenues and profits, continuing its streak of solid financial performance. Despite a slight decline in overall revenue compared to the same period last year, PACCAR’s diversified operations, including its highly regarded PACCAR Financial Services (PFS) division, delivered notable results.

For the third quarter of 2024, PACCAR reported revenues of $8.24 billion, compared to $8.70 billion in Q3 2023. The company’s net income stood at $972.1 million, or $1.85 per diluted share, marking a decline from last year’s $1.23 billion, or $2.34 per diluted share. However, the company remains in a strong position for the year, having accumulated $3.29 billion in net income for the first nine months of 2024, compared to $3.18 billion during the same period last year.

“PACCAR’s truck and parts operations achieved robust quarterly sales and profits due to industry-leading trucks and strong aftersales performance,” said Feight. “PACCAR Financial Services achieved good results due to its high-quality portfolio. I am very proud of our employees for producing the highest quality trucks and transportation solutions for our customers.”

PACCAR Financial Services sees strong portfolio performance

PACCAR Financial Services (PFS), which provides financing solutions for PACCAR’s customers and dealers worldwide, played a pivotal role in the company’s financial stability. PFS earned $106.5 million in pretax income in Q3 2024, compared to $133.8 million in the same period in 2023. The division reported third-quarter revenues of $536.1 million, a notable increase from $464.1 million last year. This growth was primarily driven by the high quality of PFS’s portfolio and steady demand for financing solutions despite fluctuating market conditions.

Todd Hubbard, PACCAR’s vice president, acknowledged the division’s solid performance in the face of global challenges. “PFS achieved good third-quarter results due to its high-quality portfolio. The used truck market has normalised in North America, but remains soft in Europe, which is reflected in PFS’ quarterly results this year. PFS is a leader in the market with its superior Kenworth, Peterbilt and DAF products, innovative technologies that provide seamless credit application and loan servicing processes, and its support of customers in all phases of the business cycle.”

PACCAR Financial Services continues to demonstrate its global reach and financial strength. The division holds a portfolio of 232,000 trucks and trailers, with total assets valued at $22.48 billion. The company’s full-service truck leasing subsidiary, PacLease, operates a fleet of 41,000 vehicles, further expanding its service offerings.

Craig Gryniewicz, president of PACCAR Financial Corp., said, “PACCAR’s strong balance sheet, complemented by its A+/A1 credit ratings, enables PFS to have excellent access to the commercial paper and medium-term note markets. PFS profitably supports the sale of PACCAR trucks in 26 countries on four continents.”