Revenue growth has decelerated significantly, posting a 16.2% year-over-year decline in 2026Q1 while gross margins compressed to 13.1% from a 21.6% peak in 2023Q4.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 27.24B | 28.44B | 33.66B | 35.13B | 28.82B | 23.52B | 18.73B | 25.6B | 23.5B | 19.46B | 17.03B | 19.12B | 19B | 17.12B | 17.05B | 16.36B | 10.29B | 7.58B | 14.29B | 15.22B | 16.45B | 14.06B | 11.4B | 8.19B | 7.22B | 6.1B | 7.92B | 9.02B | 7.89B | 6.76B | 4.6B |
| Revenue Growth % | -15.83% | -15.5% | -4.17% | 21.89% | 22.52% | 25.6% | -26.84% | 8.95% | 20.76% | 14.23% | -10.89% | 0.62% | 10.94% | 0.43% | 4.25% | 58.9% | 35.71% | -46.92% | -6.13% | -7.49% | 17.05% | 23.35% | 39.07% | 13.52% | 18.33% | -22.97% | -12.21% | 14.27% | 16.72% | 46.96% | -4.71% |
| Cost of Goods Sold | 23.12B | 23.83B | 26.95B | 27.5B | 23.59B | 19.24B | 15.26B | 20.79B | 19.11B | 15.78B | 13.66B | 15.41B | 15.62B | 14.06B | 14.07B | 13.52B | 8.41B | 6.48B | 11.74B | 11.92B | 13.04B | 11.22B | 9.27B | 6.73B | 5.95B | 5.08B | 6.5B | 7.14B | 6.31B | 5.44B | 3.66B |
| COGS % of Revenue | - | 83.77% | 80.07% | 78.28% | 81.86% | 81.81% | 81.51% | 81.2% | 81.34% | 81.1% | 80.2% | 80.62% | 82.2% | 82.09% | 82.5% | 82.68% | 81.72% | 85.48% | 82.14% | 78.29% | 79.23% | 79.83% | 81.33% | 82.15% | 82.39% | 83.26% | 82.04% | 79.1% | 79.89% | 80.39% | 79.44% |
| Gross Profit | 4.12B | 4.62B | 6.71B | 7.63B | 5.23B | 4.28B | 3.46B | 4.81B | 4.38B | 3.68B | 3.37B | 3.71B | 3.38B | 3.07B | 2.98B | 2.83B | 1.88B | 1.1B | 2.55B | 3.3B | 3.42B | 2.83B | 2.13B | 1.46B | 1.27B | 1.02B | 1.42B | 1.89B | 1.59B | 1.33B | 946.1M |
| Gross Margin % | 15.11% | 16.23% | 19.93% | 21.72% | 18.14% | 18.19% | 18.49% | 18.8% | 18.66% | 18.9% | 19.8% | 19.38% | 17.8% | 17.91% | 17.5% | 17.32% | 18.28% | 14.52% | 17.86% | 21.71% | 20.77% | 20.17% | 18.67% | 17.85% | 17.61% | 16.74% | 17.96% | 20.9% | 20.11% | 19.61% | 20.56% |
| Gross Profit Growth % | - | -31.18% | -12.07% | 46% | 22.14% | 23.54% | -28.04% | 9.8% | 19.19% | 9.06% | -8.97% | 9.56% | 10.25% | 2.8% | 5.36% | 50.56% | 70.81% | -56.85% | -22.76% | -3.31% | 20.56% | 33.23% | 45.44% | 15.06% | 24.48% | -28.18% | -24.58% | 18.76% | 19.7% | 40.2% | -0.59% |
| Operating Expenses | 1.48B | 1.66B | 1.82B | 1.68B | 1.55B | 1.97B | 3.46B | 1.84B | 1.7B | 1.59B | 1.44B | 1.38B | 1.38B | 1.4B | 1.39B | 1.35B | 1.23B | 1.18B | 1.46B | 857.8M | 716.3M | 632.6M | 488.5M | 446.5M | 477.2M | 515.6M | 497.6M | 810.3M | 780.2M | 706.4M | 508.9M |
| OpEx % of Revenue | - | 5.82% | 5.4% | 4.79% | 5.37% | 8.38% | 18.49% | 7.18% | 7.22% | 8.15% | 8.48% | 7.21% | 7.27% | 8.15% | 8.14% | 8.27% | 11.98% | 15.57% | 10.24% | 5.64% | 4.35% | 4.5% | 4.29% | 5.45% | 6.61% | 8.45% | 6.28% | 8.98% | 9.88% | 10.44% | 11.06% |
| Selling, General & Admin | 703.8M | 735.8M | 744M | 753.3M | 726.3M | 676.8M | 581.4M | 698.5M | 644.7M | 571.8M | 542.8M | 541.5M | 561.4M | 559.5M | 571.6M | 546.9M | 481.5M | 434.9M | 581.4M | 602.3M | 553.2M | 514.8M | 488.5M | 446.5M | 477.2M | 515.6M | 497.6M | 663.4M | 656.3M | 594.4M | 427.8M |
| SG&A % of Revenue | - | 2.59% | 2.21% | 2.14% | 2.52% | 2.88% | 3.1% | 2.73% | 2.74% | 2.94% | 3.19% | 2.83% | 2.96% | 3.27% | 3.35% | 3.34% | 4.68% | 5.73% | 4.07% | 3.96% | 3.36% | 3.66% | 4.29% | 5.45% | 6.61% | 8.45% | 6.28% | 7.35% | 8.31% | 8.79% | 9.3% |
| Research & Development | 439.2M | 445.5M | 452.9M | 410.9M | 341.2M | 324.1M | 273.9M | 326.6M | 306.1M | 264.7M | 247.2M | 239.8M | 215.6M | 251.4M | 279.3M | 288.2M | 238.5M | 199.2M | 341.8M | 255.5M | 163.1M | 117.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 1.57% | 1.35% | 1.17% | 1.18% | 1.38% | 1.46% | 1.28% | 1.3% | 1.36% | 1.45% | 1.25% | 1.13% | 1.47% | 1.64% | 1.76% | 2.32% | 2.63% | 2.39% | 1.68% | 0.99% | 0.84% | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 3M | 474.7M | 620.3M | 519.9M | 480.4M | 969.9M | 2.61B | 813.6M | 744.5M | 749.8M | 653.6M | 596.1M | 603.9M | 584.6M | 537.4M | 517.6M | 512.6M | 546.9M | 540.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 146.9M | 123.9M | 112M | 81.1M |
| Operating Income | 2.64B | 2.96B | 4.89B | 5.95B | 3.68B | 2.31B | 0 | 2.97B | 2.69B | 2.09B | 1.93B | 2.33B | 2B | 1.67B | 1.6B | 1.48B | 648.5M | -79.7M | 1.09B | 2.45B | 2.7B | 2.2B | 1.64B | 1.02B | 794.2M | 505.8M | 924.5M | 1.08B | 807.5M | 620M | 437.2M |
| Operating Margin % | 9.68% | 10.41% | 14.53% | 16.93% | 12.76% | 9.81% | - | 11.62% | 11.44% | 10.75% | 11.32% | 12.18% | 10.53% | 9.76% | 9.36% | 9.05% | 6.3% | -1.05% | 7.62% | 16.07% | 16.42% | 15.67% | 14.38% | 12.4% | 11% | 8.29% | 11.67% | 11.92% | 10.23% | 9.17% | 9.5% |
| Operating Income Growth % | - | -39.46% | -17.72% | 61.65% | 59.37% | - | -100% | 10.65% | 28.54% | 8.43% | -17.13% | 16.33% | 19.69% | 4.78% | 7.85% | 128.13% | 913.68% | -107.32% | -55.52% | -9.43% | 22.66% | 34.34% | 61.28% | 27.98% | 57.02% | -45.29% | -14.02% | 33.15% | 30.24% | 41.81% | -9.67% |
| EBITDA | 3.26B | 3.79B | 5.81B | 6.87B | 4.47B | 3.28B | 2.62B | 4.05B | 3.74B | 3.2B | 2.92B | 3.23B | 2.92B | 2.48B | 2.3B | 2.15B | 1.27B | 572M | 1.74B | 2.97B | 3.14B | 2.57B | 1.95B | 1.28B | 1.01B | 685.7M | 1.08B | 1.22B | 931.4M | 732M | 518.3M |
| EBITDA Margin % | 11.96% | 13.32% | 17.26% | 19.56% | 15.51% | 13.93% | 13.99% | 15.83% | 15.93% | 16.44% | 17.15% | 16.92% | 15.36% | 14.5% | 13.47% | 13.17% | 12.36% | 7.54% | 12.16% | 19.53% | 19.06% | 18.3% | 17.15% | 15.67% | 14.02% | 11.24% | 13.64% | 13.55% | 11.8% | 10.82% | 11.26% |
| EBITDA Growth % | -37.85% | -34.78% | -15.44% | 53.74% | 36.34% | 25.07% | -35.33% | 8.27% | 16.99% | 9.48% | -9.67% | 10.83% | 17.57% | 8.1% | 6.65% | 69.32% | 122.33% | -67.08% | -41.55% | -5.19% | 21.91% | 31.62% | 52.21% | 26.82% | 47.64% | -36.51% | -11.63% | 31.21% | 27.24% | 41.23% | -6.85% |
| D&A (Non-Cash Add-back) | 622.3M | 827.4M | 916.9M | 923.9M | 790.2M | 969.4M | 1.05B | 1.08B | 1.05B | 1.11B | 993.1M | 907.1M | 917.7M | 810.7M | 700.9M | 673.8M | 623.2M | 651.7M | 649.4M | 526.4M | 434.6M | 370.1M | 315M | 267.5M | 218.2M | 179.9M | 155.5M | 146.9M | 123.9M | 112M | 81.1M |
| EBIT | 2.75B | 3.37B | 4.89B | 5.95B | 3.68B | 2.31B | 1.57B | 2.97B | 2.69B | 2.09B | 1.93B | 2.33B | 2B | 1.67B | 1.6B | 1.48B | 648.5M | 510.4M | 1.86B | 2.45B | 2.7B | 2.2B | 1.64B | 1.02B | 794.2M | 505.8M | 924.5M | 1.08B | 807.5M | 620M | 437.2M |
| Net Interest Income | 240.6M | -88.6M | 360.6M | 283.5M | 59.4M | 9.3M | 33.5M | 81.9M | 126.8M | 83.3M | 28.5M | 6.3M | 16.5M | 22.3M | 29.6M | 22.8M | 19.8M | 300K | 84.6M | 95.4M | 81.3M | 31.6M | -251.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 261.9M | 257.9M | 391.7M | 288.6M | 59.4M | 13.4M | 33.5M | 81.9M | 126.8M | 85M | 38.8M | 19.7M | 20.3M | 29M | 29.6M | 36.3M | 20.5M | 21.2M | 84.6M | 95.4M | 81.3M | 42.8M | 45.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 21.3M | 346.5M | 31.1M | 5.1M | 0 | 4.1M | 0 | 0 | 0 | 1.7M | 10.3M | 13.4M | 3.8M | 6.7M | 0 | 13.5M | 700K | 20.9M | 0 | 0 | 0 | 11.2M | 297.6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 325.1M | 61.8M | 508.5M | -228.2M | 170.1M | 88.1M | 1.66B | 124.3M | 121.7M | 81.7M | -798.5M | 9.5M | 16.8M | 23.3M | 33.4M | 27.5M | 11.8M | 254.7M | 375.7M | -682.3M | -525.9M | -428.5M | -271M | -210.9M | -220.1M | -250.5M | -259.4M | -152M | -154.4M | -85.3M | -124.3M |
| Pretax Income | 2.96B | 3.02B | 5.4B | 5.72B | 3.85B | 2.4B | 1.66B | 3.1B | 2.81B | 2.17B | 1.13B | 2.34B | 2.02B | 1.7B | 1.63B | 1.51B | 660.3M | 175M | 1.46B | 1.76B | 2.18B | 1.77B | 1.37B | 805.5M | 574.1M | 255.3M | 665.1M | 923.2M | 653.1M | 534.7M | 312.9M |
| Pretax Margin % | 10.87% | 10.63% | 16.04% | 16.28% | 13.35% | 10.19% | 8.87% | 12.11% | 11.96% | 11.17% | 6.64% | 12.23% | 10.62% | 9.9% | 9.55% | 9.21% | 6.42% | 2.31% | 10.25% | 11.59% | 13.22% | 12.62% | 12.01% | 9.83% | 7.95% | 4.18% | 8.4% | 10.23% | 8.27% | 7.91% | 6.8% |
| Income Tax | 484.8M | 647.7M | 1.24B | 1.12B | 837.1M | 530.8M | 360.4M | 711.3M | 615.1M | 498.1M | 608.7M | 733.1M | 658.8M | 523.7M | 517.3M | 464.6M | 202.7M | 63.1M | 446.1M | 537M | 679.3M | 640.4M | 461.4M | 279M | 202.1M | 81.7M | 223.3M | 339.6M | 236.3M | 190.1M | 111.9M |
| Effective Tax Rate % | 16.37% | 21.42% | 22.94% | 19.54% | 21.75% | 22.15% | 21.69% | 22.95% | 21.89% | 22.92% | 53.85% | 31.37% | 32.65% | 30.9% | 31.76% | 30.83% | 30.7% | 36.06% | 30.47% | 30.44% | 31.23% | 36.11% | 33.72% | 34.64% | 35.2% | 32% | 33.57% | 36.79% | 36.18% | 35.55% | 35.76% |
| Net Income | 2.48B | 2.38B | 4.16B | 4.6B | 3.01B | 1.87B | 1.3B | 2.39B | 2.2B | 1.68B | 521.7M | 1.6B | 1.36B | 1.17B | 1.11B | 1.04B | 457.6M | 111.9M | 1.02B | 1.23B | 1.5B | 1.13B | 906.8M | 526.5M | 372M | 173.6M | 441.8M | 583.6M | 416.8M | 344.6M | 201M |
| Net Margin % | 9.09% | 8.35% | 12.36% | 13.1% | 10.45% | 7.93% | 6.95% | 9.33% | 9.34% | 8.61% | 3.06% | 8.39% | 7.15% | 6.84% | 6.52% | 6.37% | 4.45% | 1.48% | 7.12% | 8.06% | 9.09% | 8.06% | 7.96% | 6.42% | 5.15% | 2.85% | 5.58% | 6.47% | 5.28% | 5.09% | 4.37% |
| Net Income Growth % | -28.68% | -42.92% | -9.54% | 52.77% | 61.44% | 43.37% | -45.51% | 8.78% | 31.04% | 221.1% | -67.48% | 18.05% | 16.01% | 5.37% | 6.65% | 127.78% | 308.94% | -89.01% | -17.06% | -17.96% | 32.02% | 24.97% | 72.23% | 41.53% | 114.29% | -60.71% | -24.3% | 40.02% | 20.95% | 71.44% | -20.49% |
| Net Income (Continuing) | 2.48B | 2.38B | 4.16B | 4.6B | 3.01B | 1.87B | 1.3B | 2.39B | 2.2B | 1.68B | 521.7M | 1.6B | 1.36B | 1.17B | 1.11B | 1.04B | 457.6M | 111.9M | 1.02B | 1.23B | 1.5B | 1.13B | 906.8M | 526.5M | 372M | 173.6M | 441.8M | 583.6M | 416.8M | 344.6M | 201M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 4.69 | 4.51 | 7.90 | 8.76 | 5.75 | 3.57 | 2.49 | 4.58 | 4.16 | 3.16 | 0.99 | 3.01 | 2.54 | 2.20 | 2.08 | 1.91 | 0.83 | 0.20 | 1.85 | 2.19 | 2.64 | 1.94 | 1.53 | 0.89 | 0.63 | 0.30 | 0.75 | 0.98 | 0.70 | 0.58 | 0.34 |
| EPS Growth % | -28.79% | -42.91% | -9.82% | 52.35% | 61.06% | 43.37% | -45.63% | 10.1% | 31.65% | 219.19% | -67.11% | 18.5% | 15.45% | 5.77% | 8.9% | 130.12% | 315% | -89.19% | -15.53% | -17.05% | 36.08% | 26.8% | 71.91% | 41.27% | 110% | -60% | -23.47% | 40% | 20.69% | 70.59% | -20.93% |
| EPS (Basic) | - | 4.52 | 7.92 | 8.78 | 5.76 | 3.58 | 2.50 | 4.59 | 4.17 | 3.17 | 0.99 | 3.02 | 2.55 | 2.20 | 2.09 | 1.91 | 0.84 | 0.21 | 1.86 | 2.20 | 2.66 | 1.96 | 1.54 | 0.89 | 0.64 | 0.30 | 0.76 | 0.98 | 0.70 | 0.58 | 0.34 |
| Diluted Shares Outstanding | 527.4M | 526.8M | 526.6M | 525M | 523.35M | 522.6M | 521.1M | 521.25M | 527.7M | 529.35M | 527.7M | 533.4M | 534.15M | 532.8M | 533.7M | 546.6M | 549.3M | 547.35M | 548.85M | 559.95M | 565.8M | 583.2M | 592.99M | 594.34M | 589.27M | 584.21M | 585.5M | 598.07M | 597.18M | 592.2M | 588.14M |
| Basic Shares Outstanding | 526.7M | 526M | 525.3M | 523.9M | 522.6M | 521.7M | 520.2M | 520.35M | 526.5M | 527.85M | 526.65M | 531.9M | 532.5M | 531.3M | 532.65M | 544.95M | 547.5M | 545.7M | 546.3M | 556.65M | 562.65M | 579.6M | 589.27M | 589.95M | 585.23M | 580.67M | 582.44M | 593.83M | 593.07M | 589.52M | 588.14M |
| Dividend Payout Ratio | - | 95.42% | 54.99% | 33.01% | 33.36% | 37.95% | 95.28% | 47.68% | 36.64% | 33.33% | 158.96% | 42.43% | 45.91% | 24.17% | 72.82% | 20.86% | 55% | 207.42% | 61.81% | 60.03% | 35.45% | 43.85% | 29.87% | 32.65% | 33.06% | 97% | 49.23% | 32.23% | 39.25% | 29.92% | 77.36% |
Cyclical demand and pricing
As indicated by the most recent quarterly financial data, PACCAR's revenue growth has decelerated significantly, posting a -16.2% year-over-year decline in 2026Q1, which underscores the ongoing cyclical normalization following the industry's post-pandemic peak in demand for heavy-duty commercial vehicle equipment.
The consistent negative growth trajectory over the last ten quarters suggests that the company is navigating a prolonged cyclical trough. Investors should monitor whether this decline reflects a structural shift in fleet replacement cycles or merely a temporary cooling of the freight market.
Based on reported income statements, PACCAR's gross margin has contracted from a peak of 21.6% in 2023Q4 to 13.1% in 2026Q1, reflecting the company's struggle to maintain pricing power as factory utilization rates decline during the current industry-wide demand downturn.
The erosion of gross margins appears to be a direct consequence of lower production volumes, which limits the company's ability to absorb fixed manufacturing costs. This trend warrants further investigation into whether the current margin level represents a new floor or if further compression is likely.
According to the provided financial filings, operating income has fallen from $1.5 billion in 2023Q4 to $559.1 million in 2026Q1, demonstrating that the company's operating leverage is currently working against profitability as revenue declines outpace the firm's ability to reduce overhead expenses.
The decline in operating margin to 9.0% suggests that the company's cost structure remains relatively rigid despite the significant drop in top-line revenue. This lack of immediate scalability indicates that management may be prioritizing long-term capacity retention over short-term expense optimization.
As reported in recent financial statements, PACCAR has maintained relatively stable R&D spending near $110 million per quarter, suggesting that management is prioritizing long-term technological investment despite the -16.2% revenue contraction observed in the most recent reporting period.
The commitment to consistent R&D spending, even during a downturn, appears to be a strategic choice to remain competitive in the transition to zero-emission powertrains. However, this discipline may continue to pressure net margins until the revenue cycle begins to recover.
While the company's parts segment is often viewed as a stable earnings floor, the recent decline in overall profitability suggests that the cyclical volatility of the truck segment may be overwhelming the defensive characteristics of the aftermarket business, as evidenced by the 2026Q1 results.
Short-sellers may focus on the potential for further margin compression if used truck prices continue to soften, which would negatively impact the Financial Services segment. Investors should be cautious about assuming the parts business can fully insulate the company from broader industrial sector weakness.
Quick answers to the most common questions about buying PCAR stock.
For fiscal year 2025, PACCAR Inc (PCAR) reported total revenue of $28.44B. This represents a 518.1% increase compared to $4.60B in 1996.
PACCAR Inc (PCAR) is profitable, generating $2.38B in net income for the fiscal year ending 2025 with a net profit margin of 8.4%.
PACCAR Inc (PCAR) reported an operating income of $2.96B, resulting in an operating profit margin of 10.4%. This margin reflects the operational efficiency of the business before interest and taxes.
PACCAR Inc (PCAR) generated $4.62B in gross profit for the year, representing a gross profit margin of 16.2%. This demonstrates the company's core pricing power and production efficiency.