PACCAR Inc (PCAR) Bundle
A Brief History of PACCAR Inc
PACCAR Inc, a global leader in the design and manufacture of premium commercial vehicles, has seen significant financial developments as of 2024. The company is headquartered in Bellevue, Washington, and operates in North America, Europe, and Asia.
Financial Performance Overview
For the first nine months of 2024, PACCAR reported worldwide net sales and revenues of $25.76 billion, a slight decrease from $26.05 billion in the same period of 2023. The decline was primarily due to lower truck revenues, which amounted to $19.15 billion in 2024 compared to $19.88 billion in 2023.
| Financial Metric | 2024 | 2023 |
|---|---|---|
| Worldwide Net Sales and Revenues | $25.76 billion | $26.05 billion |
| Truck Revenues | $19.15 billion | $19.88 billion |
| Parts Sales | $5.00 billion | $4.80 billion |
| Financial Services Revenues | $1.56 billion | $1.33 billion |
| Net Income | $3.29 billion | $3.18 billion |
| Capital Investments | $567.7 million | $486.5 million |
| R&D Expenses | $337.6 million | $302.0 million |
Quarterly Highlights
In the third quarter of 2024, PACCAR's total revenues reached $6.03 billion, compared to $6.64 billion in the same quarter of 2023. This decline was attributed to lower revenues in both Europe and North America.
Market Share and Truck Deliveries
PACCAR maintained a strong market position, with a heavy-duty truck retail market share of 31.1% in the U.S. and Canada for the first nine months of 2024, up from 28.4% in the previous year. The company delivered a total of 141,400 trucks worldwide during this period, reflecting a decrease from 153,100 units in the same timeframe of 2023.
| Region | Q3 2024 Deliveries | Q3 2023 Deliveries |
|---|---|---|
| U.S. and Canada | 25,900 | 27,500 |
| Europe | 10,000 | 14,500 |
| Mexico and Other | 9,000 | 8,100 |
| Total | 44,900 | 50,100 |
Financial Services Performance
PACCAR Financial Services (PFS) reported revenues of $536.1 million in the third quarter of 2024, up from $464.1 million in 2023. New loan and lease volume reached $2.01 billion in Q3 2024, an increase from $1.90 billion in the same quarter of 2023.
The growth in financial services was driven by higher average loan and lease balances, resulting in increased interest income. PFS's market share of new PACCAR truck sales rose to 26.9% in Q3 2024, compared to 23.7% in Q3 2023.
| Financial Services Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| PFS Revenues | $536.1 million | $464.1 million |
| New Loan and Lease Volume | $2.01 billion | $1.90 billion |
| PFS Market Share | 26.9% | 23.7% |
Balance Sheet Highlights
As of September 30, 2024, PACCAR's cash and cash equivalents totaled $6.85 billion, a decrease from $7.18 billion at the end of 2023. The total marketable securities increased to $2.51 billion from $1.82 billion in the same period.
| Balance Sheet Item | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $6.85 billion | $7.18 billion |
| Marketable Securities | $2.51 billion | $1.82 billion |
| Total Assets | $22.48 billion | Not Available |
PACCAR continues to focus on expanding its global presence while maintaining strong financial metrics amid fluctuating market conditions.
A Who Owns PACCAR Inc (PCAR)
Major Shareholders
PACCAR Inc (PCAR) has a diverse ownership structure, with significant shares held by institutional investors and insiders. As of 2024, the following table summarizes the major shareholders:
| Shareholder Type | Percentage Ownership | Number of Shares |
|---|---|---|
| Institutional Investors | 71.5% | 236.3 million |
| Insider Ownership | 3.5% | 11.5 million |
| Public Float | 25.0% | 82.1 million |
Top Institutional Investors
The following table lists the top institutional investors holding shares in PACCAR Inc:
| Institution | Percentage Ownership | Number of Shares |
|---|---|---|
| The Vanguard Group, Inc. | 8.7% | 28.5 million |
| BlackRock, Inc. | 7.5% | 24.7 million |
| State Street Corporation | 5.9% | 19.5 million |
| Wellington Management Co. LLP | 4.1% | 13.5 million |
| Invesco Ltd. | 3.4% | 11.2 million |
Insider Ownership
Insider ownership includes shares held by executives and board members of PACCAR. The following table provides details on key insiders:
| Name | Position | Number of Shares Owned |
|---|---|---|
| Mark C. Pigott | Executive Chairman | 4.5 million |
| Ronald E. Armstrong | President & CEO | 3.0 million |
| William E. Jackson | Vice President | 1.5 million |
Stock Performance
As of September 30, 2024, PACCAR Inc's stock price is trading at approximately $60.50 per share, reflecting a year-to-date performance of -12.3%. The market capitalization stands at around $18.5 billion.
Shareholder Composition
The following table illustrates the overall shareholder composition of PACCAR Inc:
| Type | Percentage |
|---|---|
| Institutional Investors | 71.5% |
| Insiders | 3.5% |
| Retail Investors | 25.0% |
Recent Changes in Ownership
In 2024, there has been a notable increase in institutional ownership, rising from 69% to 71.5%, indicating growing confidence among institutional investors in PACCAR's long-term prospects.
PACCAR Inc (PCAR) Mission Statement
Overview of PACCAR Inc
PACCAR Inc is a global leader in the design, manufacture, and customer support of high-quality trucks and related parts. The company operates in three major segments: Truck, Parts, and Financial Services.
Mission Statement
PACCAR's mission statement emphasizes its commitment to building quality products, maintaining a strong focus on customer satisfaction, and leading in technological innovation. The company aims to deliver superior value to its stakeholders while promoting sustainability and corporate responsibility.
Financial Performance
As of 2024, PACCAR reported significant financial metrics that reflect its operational efficiency and market presence. Below is a comprehensive overview of the company's financial performance:
| Financial Metric | 2024 | 2023 | % Change |
|---|---|---|---|
| Net Income | $3.29 billion ($6.25 per diluted share) | $3.18 billion ($6.07 per diluted share) | 3.5% |
| Worldwide Net Sales and Revenues | $25.76 billion | $26.05 billion | -1.1% |
| Truck Revenues | $19.15 billion | $19.88 billion | -3.7% |
| Parts Sales | $5.00 billion | $4.80 billion | 4.2% |
| Financial Services Revenues | $1.56 billion | $1.33 billion | 17.3% |
| Capital Investments | $567.7 million | $486.5 million | 16.7% |
| Research and Development Expenses | $337.6 million | $302.0 million | 11.8% |
Market Presence and Strategic Goals
PACCAR operates under a strategy focused on enhancing its market share in the heavy-duty truck segment. The company’s heavy-duty truck retail market share in the U.S. and Canada was 31.1% for the first nine months of 2024, up from 28.4% in the same period in 2023.
In 2024, PACCAR's truck industry heavy-duty retail sales in the U.S. and Canada are projected to be between 250,000 and 270,000 units, compared to 297,000 units in 2023. In Europe, registrations for over 16-tonne vehicles are expected to be between 290,000 and 310,000 units in 2024, down from 343,300 units in 2023.
Commitment to Sustainability
PACCAR is committed to sustainable practices, investing in new technologies to improve fuel efficiency and reduce emissions. The company has allocated significant resources towards the development of electric and hybrid trucks, reflecting its dedication to environmental stewardship.
Conclusion of Financial Insights
In summary, PACCAR Inc's mission statement reflects its commitment to quality, customer satisfaction, and innovation, supported by robust financial performance and strategic market positioning as of 2024.
How PACCAR Inc (PCAR) Works
Overview of PACCAR Inc
PACCAR Inc operates primarily in the manufacturing and distribution of commercial vehicles, primarily heavy-duty trucks. The company is recognized for its brands: Kenworth, Peterbilt, and DAF. In 2024, PACCAR's operations are segmented into three main areas: Truck, Parts, and Financial Services.
Truck Segment Performance
In 2024, PACCAR's truck net sales and revenues totaled $19.15 billion, down from $19.88 billion in 2023, primarily due to decreased deliveries in Europe. The following table summarizes the truck deliveries:
| Region | Q3 2024 Deliveries | Q3 2023 Deliveries | % Change | YTD 2024 Deliveries | YTD 2023 Deliveries | % Change |
|---|---|---|---|---|---|---|
| U.S. and Canada | 25,900 | 27,500 | (6%) | 84,100 | 81,000 | 4% |
| Europe | 10,000 | 14,500 | (31%) | 33,100 | 48,300 | (31%) |
| Mexico, South America, Australia, and other | 9,000 | 8,100 | 11% | 24,200 | 23,800 | 2% |
| Total | 44,900 | 50,100 | (10%) | 141,400 | 153,100 | (8%) |
Revenue Breakdown
PACCAR's total truck revenues for the nine months ended September 30, 2024, are broken down as follows:
| Region | Q3 2024 Revenue ($ million) | Q3 2023 Revenue ($ million) | % Change |
|---|---|---|---|
| U.S. and Canada | 3,669.3 | 4,006.8 | (8%) |
| Europe | 1,123.6 | 1,558.8 | (28%) |
| Mexico, South America, Australia, and other | 1,234.1 | 1,070.8 | 15% |
| Total Truck Revenues | 6,027.0 | 6,636.4 | (9%) |
Parts Segment Performance
PACCAR Parts accounted for 20% of revenues in the third quarter of 2024, with parts net sales and revenues increasing to $1.66 billion from $1.58 billion in 2023. The following table shows the parts revenue by region:
| Region | Q3 2024 Revenue ($ million) | Q3 2023 Revenue ($ million) | % Change |
|---|---|---|---|
| U.S. and Canada | 1,129.2 | 1,099.8 | 3% |
| Europe | 345.5 | 325.1 | 6% |
| Mexico, South America, Australia, and other | 182.9 | 157.3 | 16% |
| Total Parts Revenues | 1,657.6 | 1,582.2 | 5% |
Financial Services Performance
PACCAR Financial Services (PFS) reported revenues of $536.1 million in Q3 2024, an increase from $464.1 million in Q3 2023. The total assets of PFS reached $22.48 billion. The following table summarizes the financial services revenue components:
| Revenue Type | Q3 2024 Revenue ($ million) | Q3 2023 Revenue ($ million) | % Change |
|---|---|---|---|
| Loans and finance leases | 250.1 | 205.0 | 22% |
| Dealer wholesale financing | 84.8 | 64.8 | 31% |
| Equipment on lease and other | 201.2 | 194.3 | 4% |
| Total Financial Services Revenues | 536.1 | 464.1 | 16% |
Net Income and Earnings Per Share
PACCAR's net income for the first nine months of 2024 was $3.29 billion, translating to $6.25 per diluted share, compared to $3.18 billion and $6.07 per diluted share in 2023. The following table summarizes the net income and earnings per share:
| Period | Net Income ($ billion) | Earnings Per Share ($) |
|---|---|---|
| YTD 2024 | 3.29 | 6.25 |
| YTD 2023 | 3.18 | 6.07 |
Capital Investments and Research & Development
PACCAR's capital investments in 2024 were $567.7 million, with R&D expenses totaling $337.6 million. The company is investing in expanding its manufacturing capabilities and developing new technologies.
| Investment Type | 2024 Amount ($ million) | 2023 Amount ($ million) |
|---|---|---|
| Capital Investments | 567.7 | 486.5 |
| Research & Development | 337.6 | 302.0 |
Liquidity and Financial Position
As of September 30, 2024, PACCAR had cash and cash equivalents of $6.85 billion, with total cash and marketable securities amounting to $9.36 billion. The following table summarizes the liquidity position:
| Item | Amount ($ billion) |
|---|---|
| Cash and Cash Equivalents | 6.85 |
| Marketable Securities | 2.51 |
| Total Liquidity | 9.36 |
Market Outlook
The heavy-duty truck market in the U.S. and Canada is projected to see sales between 250,000 to 270,000 units in 2024, compared to 297,000 units in 2023. For Europe, truck registrations for vehicles over 16 tonnes are expected to reach 290,000 to 310,000 units in 2024, down from 343,300 in 2023.
How PACCAR Inc (PCAR) Makes Money
Revenue Sources
PACCAR Inc generates revenue through three primary segments: Trucks, Parts, and Financial Services.
Truck Revenue
For the first nine months of 2024, PACCAR's Truck segment reported revenues of $19.15 billion, down from $19.88 billion in 2023. This decline was attributed to lower truck deliveries in Europe, partially offset by increased deliveries in the U.S. and Canada.
The following table summarizes truck deliveries and revenues:
| Region | 2024 Deliveries | 2023 Deliveries | Change (%) | 2024 Revenue ($ Billion) | 2023 Revenue ($ Billion) |
|---|---|---|---|---|---|
| U.S. and Canada | 84,100 | 81,000 | 4 | $6.03 | $6.64 |
| Europe | 33,100 | 48,300 | (31) | $6.03 | $6.64 |
| Other Regions | 24,200 | 23,800 | 2 | $7.09 | $7.30 |
Parts Revenue
PACCAR's Parts segment experienced growth, with revenues of $5.00 billion in the first nine months of 2024, up from $4.80 billion in 2023. The increase reflects higher sales in all markets.
The following table outlines Parts revenue performance:
| Region | 2024 Revenue ($ Million) | 2023 Revenue ($ Million) | Change (%) |
|---|---|---|---|
| U.S. and Canada | $3,419.1 | $3,348.2 | 2 |
| Europe | $1,052.9 | $1,001.5 | 5 |
| Other Regions | $525.8 | $454.4 | 16 |
Financial Services Revenue
The Financial Services segment reported revenues of $1.56 billion for the first nine months of 2024, compared to $1.33 billion in the previous year. This growth was primarily due to higher interest income driven by portfolio growth.
The following table summarizes Financial Services performance:
| Segment | 2024 Revenue ($ Million) | 2023 Revenue ($ Million) | Change (%) |
|---|---|---|---|
| Financial Services | $1,555.2 | $1,327.1 | 17 |
Net Income and Earnings Per Share
PACCAR's net income for the first nine months of 2024 was $3.29 billion, or $6.25 per diluted share, compared to $3.18 billion, or $6.07 per diluted share, in 2023.
Capital Investments and R&D
Capital investments for 2024 amounted to $567.7 million, an increase from $486.5 million in 2023. Research and development expenses were $337.6 million, up from $302.0 million in 2023.
Market Share and Industry Outlook
PACCAR's heavy-duty truck retail market share in the U.S. and Canada increased to 31.1% in the first nine months of 2024 from 28.4% in 2023. The company anticipates industry retail sales in the heavy-duty market in the U.S. and Canada to be between 250,000 and 270,000 units for 2024.
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Article updated on 8 Nov 2024
Resources:
- PACCAR Inc (PCAR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of PACCAR Inc (PCAR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View PACCAR Inc (PCAR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.