PACCAR Q2 profit climbs as class 8 truck demand firms

“PACCAR achieved very good revenues and increased net income by 24% in the second quarter of 2026 compared to the preceding quarter,” said Preston Feight, PACCAR chief executive officer, in a news release. “Build rates increased during the quarter due to strong orders as customers benefited from PACCAR’s industry-leading trucks and improved freight rates.”

The Capacity Squeeze Behind Class 8 Truck Demand

PACCAR put U.S. and Canada Class 8 industry retail sales at 230,000 to 270,000 units for 2026. North American deliveries have not caught up to that range yet: the company shipped 39,800 trucks in the U.S. and Canada through the first half, against 45,200 a year ago.

What has changed is the pressure on the fleets that deferred those purchases.

“Customers are benefiting from higher freight rates due to constrained industry freight capacity. Fleet age has increased as well, providing an opportunity for customers to refresh their fleets with newer, more fuel-efficient trucks,” said John Rich, PACCAR executive vice president and chief technology officer.

Europe is already moving. DAF delivered 11,200 trucks in the quarter, up about 6 percent year over year, and European revenues rose about 7 percent year over year to $1.79 billion.

Parts Carried the Quarter

PACCAR Parts posted record revenues of $1.75 billion, up 2 percent year over year, with pretax income of $417.0 million. The aftermarket business now runs 21 global distribution centers covering more than 4 million square feet. It supports over 2,000 DAF, Kenworth and Peterbilt locations plus more than 350 TRP stores.

That business gets stronger as trucks stay in service longer.

“The improved North American freight market will increase our customers’ truck utilization, which will deliver increased parts and service business,” said Bryan Sitko, PACCAR vice president and PACCAR Parts general manager.

Credit Stress Under an Improving Used Truck Market

PACCAR Financial Services earned pretax income of $124.1 million on revenues of $549.7 million, both marginally ahead of last year. The portfolio covers 222,000 trucks and trailers with total assets of $22.3 billion.

The provision for losses on receivables tells the more useful story for anyone tracking carrier health. It rose to $39.4 million from $29.2 million year over year, and to $83.5 million from $47.5 million across the first half. Borrowers are still under strain even as resale values recover.

“PFS achieved good first half results due to its steady finance margins and an improving used truck market,” said Craig Gryniewicz, PACCAR vice president.

Spending Into the Next Class 8 Cycle

PACCAR invested $138.7 million in capital projects and $114.3 million in research and development during the quarter, and full-year guidance holds near record levels.

“Capital expenditures are projected to be in the range of $700 to $750 million and research and development expenses are estimated to be in the range of $450 to $480 million in 2026,” said Brice Poplawski, senior vice president and chief financial officer. “PACCAR continues to invest in next generation clean diesel, hybrid and battery-electric powertrains, integrated connected vehicle services, and expanded manufacturing capabilities.”

For fleets that have been sitting on replacement decisions waiting for regulatory certainty, Rich pointed to a date that may matter more than the quarter’s numbers.

“On July 9, the U.S. EPA provided helpful clarification of emissions regulations that will be beneficial to customers as they make truck purchasing decisions for the second half of this year and 2027,” he said.

Why it matters? PACCAR builds Kenworth, Peterbilt, and DAF trucks, making its order book an early read on carrier capital spending. Rising build rates signal fleets are beginning to replace aging equipment, a shift that would tighten capacity further and support freight rates into 2027.