New Truck Deliveries (Units)

Heavy-Duty Truck Retail Market Share (%)

Medium-Duty Market Share (%)

DAF Over 16-Tonne Market Share in Europe (%)

DAF 6 to 16-Tonne Market Share in Europe (%)

DAF Brasil Market Share (%)

Truck Industry Heavy-Duty Retail Sales in U.S. and Canada (Units)

Truck Industry Registrations for Over 16-Tonne Vehicles in Europe (Units)

Heavy-Duty Truck Industry Registrations in South America (Units)

Heavy-Duty Truck Industry Registrations in South America (Units) - Lower Estimate

Heavy-Duty Truck Industry Registrations in South America (Units) - Upper Estimate

3642b9acbf414e5664ba8448f182dcecdfb0e65d028d202bb0c9c57c9449d96f

PACCAR Inc is a global leader in the design, manufacture, and distribution of commercial trucks, aftermarket parts, and financial services. The company operates under the Kenworth, Peterbilt, and DAF nameplates, offering a range of light-, medium-, and heavy-duty trucks **[0000950170-24-088553_pcar-20240630.htm:33]** **[0000950170-24-017900_pcar-20231231.htm:4]** **[0000950170-24-017900_pcar-20231231.htm:32]** **[0000950170-24-017900_pcar-20231231.htm:58]**. In addition to trucks, PACCAR provides aftermarket parts for commercial vehicles and offers finance and leasing products related to its core offerings **[0000950170-24-088553_pcar-20240630.htm:33]** **[0000950170-24-017900_pcar-20231231.htm:32]**. The company also engages in the manufacturing and marketing of industrial winches, although this is a minor part of its business **[0000950170-24-017900_pcar-20231231.htm:12]** **[0000950170-24-017900_pcar-20231231.htm:4]**.

1. **Truck** - Designs, manufactures, and distributes high-quality light-, medium-, and heavy-duty commercial trucks under the Kenworth, Peterbilt, and DAF nameplates.
2. **Parts** - Distributes aftermarket parts for trucks and related commercial vehicles, enhancing vehicle performance and longevity.
3. **Financial Services** - Provides finance and leasing products and services related to PACCAR products, supporting customers with tailored financial solutions.
4. **Other** - Manufactures and markets industrial winches, contributing a minor portion to the company's overall sales and revenues.

e24287f814f237331d0671f18acb0e874451790c7776f13863b8e35617d549a4

| Metric [Unit: USD Billion] | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Truck Segment              | N/A     | **6.41**  **[0001564590-23-006847_pcar-10q_20230331.htm:33]**  | **6.83**  **[0000950170-23-037133_pcar-20230630.htm:35]**  | **6.64**  **[0000950170-23-058179_pcar-20230930.htm:33]**  | N/A     | **6.54**  **[0000950170-24-052081_pcar-20240331.htm:33]**  | **6.58**  **[0000950170-24-088553_pcar-20240630.htm:33]**  | **6.03**  **[0000950170-24-118960_pcar-20240930.htm:33]**  |
| Parts Segment              | **1.47**  **[PCAR_3141188_0]**  | **1.62**  **[0001564590-23-006847_pcar-10q_20230331.htm:36]** **[0001564590-23-006847_pcar-10q_20230331.htm:33]**  | **1.60**  **[0000950170-23-037133_pcar-20230630.htm:39]**  | **1.58**  **[0000950170-23-058179_pcar-20230930.htm:33]**  | **1.61**  **[PCAR_3370588_1]**  | **1.68**  **[0000950170-24-052081_pcar-20240331.htm:36]**  | **1.66**  **[0000950170-24-088553_pcar-20240630.htm:33]**  | **1.66**  **[0000950170-24-118960_pcar-20240930.htm:33]**  |
| Financial Services Segment | **0.3948**  **[0001564590-23-000670_pcar-ex991_6.htm:3]**  | **0.4232**  **[0001564590-23-006847_pcar-10q_20230331.htm:37]** **[0001564590-23-006847_pcar-10q_20230331.htm:31]**  | **0.4398**  **[0000950170-23-037133_pcar-20230630.htm:41]**  | **0.4641**  **[0000950170-23-058179_pcar-20230930.htm:33]**  | **0.4848**  **[0000950170-24-006258_pcar-ex99_1.htm:2]**  | **0.5093**  **[0000950170-24-052081_pcar-20240331.htm:37]**  | **0.5098**  **[0000950170-24-088553_pcar-20240630.htm:33]**  | **0.5361**  **[0000950170-24-118960_pcar-20240930.htm:42]**  |
| Other                      | N/A     | **0.0133**  **[0001564590-23-006847_pcar-10q_20230331.htm:33]**  | N/A     | N/A     | N/A     | N/A     | N/A     | N/A     |

e39d62e726c7bf1a1b2a450662d364a59109123192e6616662e54be2baf8ac27

| Metric (in millions) | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2023 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2022 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **U.S. and Canada**  | **$5,641.9**      | **$5,544.7**      | **$5,061.6**  **[0000950170-24-116102_pcar-ex99_1.htm:5]**  | N/A | **$5,010.1**  **[0001564590-23-006847_pcar-10q_20230331.htm:35]** **[0001564590-23-006847_pcar-10q_20230331.htm:36]** **[0001564590-23-006847_pcar-10q_20230331.htm:37]**  | **$5,130.5**  **[0000950170-23-037133_pcar-20230630.htm:37]** **[0000950170-23-037133_pcar-20230630.htm:39]**  | **$5,106.6**  **[0000950170-23-058179_pcar-20230930.htm:38]** **[0000950170-23-058179_pcar-20230930.htm:40]**  | N/A |
| **Europe**           | **$1,814.6**      | **$1,753.4**      | **$1,605.5**  **[0000950170-24-116102_pcar-ex99_1.htm:5]**  | N/A | **$2,285.8**  **[0001564590-23-006847_pcar-10q_20230331.htm:35]** **[0001564590-23-006847_pcar-10q_20230331.htm:36]** **[0001564590-23-006847_pcar-10q_20230331.htm:37]**  | **$2,125.5**  **[0000950170-23-037133_pcar-20230630.htm:37]** **[0000950170-23-037133_pcar-20230630.htm:39]**  | **$1,883.9**  **[0000950170-23-058179_pcar-20230930.htm:38]** **[0000950170-23-058179_pcar-20230930.htm:40]**  | N/A |
| **Other Regions**    | **$1,269.7**      | **$1,453.8**      | **$1,572.8**  **[0000950170-24-116102_pcar-ex99_1.htm:5]**  | N/A | **$1,156.8**  **[0001564590-23-006847_pcar-10q_20230331.htm:35]** **[0001564590-23-006847_pcar-10q_20230331.htm:36]** **[0001564590-23-006847_pcar-10q_20230331.htm:37]**  | **$1,170.4**  **[0000950170-23-037133_pcar-20230630.htm:37]** **[0000950170-23-037133_pcar-20230630.htm:39]**  | **$1,228.1**  **[0000950170-23-058179_pcar-20230930.htm:38]** **[0000950170-23-058179_pcar-20230930.htm:40]**  | N/A |

8f00180ae888f6abbbdfc3f28458c8bc10056b88268b10d411fa818dd79f65d8

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

38ffc0470a4b513307b024f146cd186c446fafddcc84e832e27885a4ceed6ede

| Metric | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|--------|---------|---------|---------|---------|---------|---------|---------|---------|
| New Truck Deliveries (Units) | 51,600  **[PCAR_3141188_0]**  | 51,100  **[0001564590-23-006847_pcar-10q_20230331.htm:34]**  | 51,900  **[0000950170-23-037133_pcar-20230630.htm:36]**  | 50,100  **[0000950170-23-058179_pcar-20230930.htm:37]**  | 51,100  **[0000950170-24-006258_pcar-ex99_1.htm:6]**  | 48,100  **[0000950170-24-052081_pcar-20240331.htm:34]**  | 48,400  **[0000950170-24-088553_pcar-20240630.htm:36]**  | 44,900  **[0000950170-24-118960_pcar-20240930.htm:36]**  |
| Heavy-Duty Truck Retail Market Share (%) | 29.8  **[0001564590-23-002203_pcar-10k_20221231.htm:34]** **[0001564590-23-000670_pcar-ex991_6.htm:1]**  | 27.0  **[0001564590-23-006847_pcar-10q_20230331.htm:34]**  | 28.4  **[0000950170-23-058179_pcar-20230930.htm:37]**  | 29.5  **[0000950170-24-017900_pcar-20231231.htm:34]**  | 29.5  **[0000950170-24-017900_pcar-20231231.htm:34]**  | 30.3  **[0000950170-24-052081_pcar-20240331.htm:34]**  | 31.5  **[0000950170-24-088553_pcar-20240630.htm:36]**  | 31.1  **[0000950170-24-118960_pcar-20240930.htm:36]**  |
| Medium-Duty Market Share (%) | 10.9  **[0001564590-23-002203_pcar-10k_20221231.htm:34]**  | 11.2  **[0001564590-23-006847_pcar-10q_20230331.htm:34]**  | 12.8  **[0000950170-23-037133_pcar-20230630.htm:36]**  | 13.5  **[0000950170-23-058179_pcar-20230930.htm:37]**  | 14.5  **[0000950170-24-017900_pcar-20231231.htm:34]**  | 17.0  **[0000950170-24-052081_pcar-20240331.htm:34]**  | 17.3  **[0000950170-24-088553_pcar-20240630.htm:36]**  | 17.2  **[0000950170-24-118960_pcar-20240930.htm:36]**  |
| DAF Over 16-Tonne Market Share in Europe (%) | 17.3  **[0001564590-23-000670_pcar-ex991_6.htm:2]** **[0001564590-23-002203_pcar-10k_20221231.htm:34]**  | 16.1  **[0001564590-23-006847_pcar-10q_20230331.htm:34]**  | 16.1  **[0000950170-23-037133_pcar-20230630.htm:36]**  | 15.9  **[0000950170-23-058179_pcar-20230930.htm:37]**  | 15.6  **[0000950170-24-017900_pcar-20231231.htm:34]**  | 13.4  **[0000950170-24-052081_pcar-20240331.htm:34]**  | 13.7  **[0000950170-24-088553_pcar-20240630.htm:36]**  | 14.0  **[0000950170-24-118960_pcar-20240930.htm:36]**  |
| DAF 6 to 16-Tonne Market Share in Europe (%) | 9.7  **[0001564590-23-002203_pcar-10k_20221231.htm:34]**  | 9.2  **[0001564590-23-006847_pcar-10q_20230331.htm:34]**  | 9.1  **[0000950170-23-037133_pcar-20230630.htm:36]**  | 9.0  **[0000950170-23-058179_pcar-20230930.htm:37]**  | 9.2  **[0000950170-24-052081_pcar-20240331.htm:34]**  | 8.4  **[0000950170-24-088553_pcar-20240630.htm:36]**  | 9.1  **[0000950170-24-118960_pcar-20240930.htm:36]**  |
| DAF Brasil Market Share (%) | 6.9  **[0001564590-23-000670_pcar-ex991_6.htm:2]** **[PCAR_1104676_0]**  | 8.6  **[0001564590-23-006137_pcar-ex991_6.htm:1]**  | 9.2  **[0000950170-23-034227_pcar-ex99_1.htm:1]**  | 10.0  **[PCAR_3361680_1]**  | 10.2  **[0000950170-24-017900_pcar-20231231.htm:34]** **[PCAR_3370588_1]**  | 10.7  **[0000950170-24-050204_pcar-ex99_1.htm:1]**  | 10.3  **[0000950170-24-088553_pcar-20240630.htm:36]**  | 10.0  **[0000950170-24-118960_pcar-20240930.htm:36]**  |
| Truck Industry Heavy-Duty Retail Sales in U.S. and Canada (Units) | 283,500  **[0001564590-23-000670_pcar-ex991_6.htm:1]**  | 72,000  **[0001564590-23-006847_pcar-10q_20230331.htm:34]**  | 151,000  **[0000950170-23-037133_pcar-20230630.htm:36]**  | 225,200  **[0000950170-23-058179_pcar-20230930.htm:34]**  | 297,000  **[0000950170-24-017900_pcar-20231231.htm:34]**  | 62,300  **[0000950170-24-052081_pcar-20240331.htm:34]**  | 127,600  **[0000950170-24-088553_pcar-20240630.htm:36]**  | 198,600  **[0000950170-24-118960_pcar-20240930.htm:36]**  |
| Truck Industry Registrations for Over 16-Tonne Vehicles in Europe (Units) | 297,500  **[0001564590-23-002203_pcar-10k_20221231.htm:34]**  | 90,200  **[0001564590-23-006847_pcar-10q_20230331.htm:34]**  | 176,000  **[0000950170-23-037133_pcar-20230630.htm:36]**  | 263,100  **[0000950170-23-058179_pcar-20230930.htm:37]**  | 343,000  **[0000950170-24-006258_pcar-ex99_1.htm:1]**  | 84,600  **[0000950170-24-052081_pcar-20240331.htm:34]**  | 174,800  **[0000950170-24-088553_pcar-20240630.htm:36]**  | 239,800  **[0000950170-24-118960_pcar-20240930.htm:36]**  |
| Heavy-Duty Truck Industry Registrations in South America (Units) | 138,300  **[0001564590-23-000670_pcar-ex991_6.htm:2]**  | 105,000-115,000  **[0000950170-23-058179_pcar-20230930.htm:34]**  | 110,000  **[0000950170-24-006258_pcar-ex99_1.htm:1]**  | 21,000  **[0000950170-24-052081_pcar-20240331.htm:34]**  | 105,000-115,000  **[0000950170-24-088553_pcar-20240630.htm:34]**  | 110,000-120,000  **[0000950170-24-118960_pcar-20240930.htm:34]**  |
| Heavy-Duty Truck Industry Registrations in South America (Units) - Lower Estimate | 105,000  **[0000950170-23-058179_pcar-20230930.htm:34]**  | 105,000  **[0000950170-24-088553_pcar-20240630.htm:34]**  | 110,000  **[0000950170-24-118960_pcar-20240930.htm:34]**  |
| Heavy-Duty Truck Industry Registrations in South America (Units) - Upper Estimate | 115,000  **[0000950170-23-058179_pcar-20230930.htm:34]**  | 115,000  **[0000950170-24-088553_pcar-20240630.htm:34]**  | 120,000  **[0000950170-24-118960_pcar-20240930.htm:34]**  |

9fcc00ade96a3e611bf959e89e081a499edb9d19aa3842777fcebb6712b523d0

ebded8fecfb3887157ab3336ac631557b3c160d8378070db895dcec3a02a705f

1. Your outlook for Europe next year suggests a potential decline in retail sales, and this year your deliveries have been down more than expected; do you plan to deliver to demand or continue to underproduce in Europe next year, and how should we think about your production strategy?  **[PCAR_3403190_9]** 

2. With the normalization of the used truck market in North America and continued softness in Europe, how is the spread between new and used truck prices evolving, and does this present challenges or opportunities for you in 2025?  **[PCAR_3403190_32]** 

3. Considering your significant investments in manufacturing capacity, how much additional capacity can you bring on to serve the U.S. market, and will this increased capacity be available in 2025 or more towards 2026?  **[PCAR_3403190_31]** 

4. As we approach the 2027 emissions standards and potential pre-buy activities, is there any reason PACCAR cannot deliver above-average incremental margins like you did prior to the recent downturn, especially with your new product introductions?  **[PCAR_3403190_14]** 

5. Regarding the bottlenecks at body builders affecting vocational truck deliveries, is the current level of trucks awaiting body builders hindering your ability to grow the vocational business in 2025, and what steps are you taking to alleviate this bottleneck?  **[PCAR_3403190_17]** 

b22f018e819dc71ddd9cc4ae11b12fa071be068ee7fd392b20bdd443b24cfb8f

ee97a84442cd91a66a2dd3412d8ce132d79740084c3da49644d77037b75648db

- Daimler Truck Holdings AG: Included in the revised peer group effective January 1, 2022  **[0000950170-24-017900_pcar-20231231.htm:30]** .
- Iveco Group N.V.: Included in the revised peer group effective January 1, 2022  **[0000950170-24-017900_pcar-20231231.htm:30]** .
- Terex Corporation: Included in the revised peer group effective January 1, 2019  **[0000950170-24-017900_pcar-20231231.htm:30]** .
- AGCO Corporation: Part of the current peer group index  **[0000950170-24-017900_pcar-20231231.htm:30]** .
- Caterpillar Inc.: Part of the current peer group index  **[0000950170-24-017900_pcar-20231231.htm:30]** .
- Cummins Inc.: Part of the current peer group index  **[0000950170-24-017900_pcar-20231231.htm:30]** .
- Deere & Company: Part of the current peer group index  **[0000950170-24-017900_pcar-20231231.htm:30]** .
- Eaton Corporation: Part of the current peer group index  **[0000950170-24-017900_pcar-20231231.htm:30]** .
- Oshkosh Corporation: Part of the current peer group index  **[0000950170-24-017900_pcar-20231231.htm:30]** .
- TRATON SE: Part of the current peer group index effective January 1, 2021  **[0000950170-24-017900_pcar-20231231.htm:30]** .
- AB Volvo: Part of the current peer group index  **[0000950170-24-017900_pcar-20231231.htm:30]** .
- Navistar International Corporation: Part of the prior peer group index from 2018 through 2020  **[0000950170-24-017900_pcar-20231231.htm:30]** .
- CNH Industrial N.V.: Removed from the peer group after spinning off Iveco  **[0000950170-24-017900_pcar-20231231.htm:30]** .
- Dana Incorporated: Removed from the peer group  **[0000950170-24-017900_pcar-20231231.htm:30]** .

c37460472e13aeb45f1d48bc12d631c3e9a8fddab3e4b31ec93b0975177b0722

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

Truck

Parts

Other

Financial Services

Total Truck, Parts, and Other

Total Revenue

7b1557deb6e0b84a077e30c7d40cee62d7f1606d03b2e27d72b35e3099189bdf

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: Q4 2024
- **Guidance**:
  - **Truck Deliveries**: Expected to be around **42,000 vehicles**  **[PCAR_3403190_2]** .
  - **Parts Sales Growth**: Expected to grow around **4%**  **[PCAR_3403190_2]** .
  - **Truck Parts and Other Gross Margins**: Anticipated to be in the range of **15.5% to 16%**  **[PCAR_3403190_2]** .
  - **Capital Expenditures**: Projected to be between **$760 million and $800 million** for the year, and **$700 million to $800 million** for the next year  **[PCAR_3403190_2]** .
  - **Research and Development Expenses**: Expected to be **$450 million to $470 million** for the year, and **$480 million to $530 million** for the next year  **[PCAR_3403190_2]** .
  - **U.S. and Canadian Class 8 Market**: Estimated to be around **260,000 trucks** for the year, and **250,000 to 280,000 vehicles** for the next year  **[PCAR_3403190_1]** .
  - **European Truck Industry Registrations**: Estimated to be around **300,000 vehicles** this year, and **270,000 to 300,000 trucks** for the next year  **[PCAR_3403190_1]** .
  - **South American Above 16-tonne Market**: Projected to be in a range of **110,000 to 120,000 trucks** this year and similar next year  **[PCAR_3403190_1]** .
  - **Gross Margins**: Expected to be in the range of **15.5% to 16%**  **[PCAR_3403190_4]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: Q3 2024
- **Guidance**:
  - **Truck Deliveries**: Estimated to be around **43,000 to 44,000 trucks**  **[PCAR_3393947_2]** .
  - **Gross Margins**: Projected to be around **17%**  **[PCAR_3393947_2]** .
  - **Parts Sales Growth**: Expected to grow around **4%** for the rest of the year  **[PCAR_3393947_2]** .
  - **Research and Development Expenses**: Projected to be **$460 million to $480 million** for 2024  **[PCAR_3393947_2]** .
  - **Capital Investments**: Planned to be **$725 million to $775 million** for the year  **[PCAR_3393947_2]** .
  - **U.S. and Canadian Class 8 Market**: Estimated to be **240,000 to 280,000 trucks** for the year  **[PCAR_3393947_1]** .
  - **European Above 16-tonne Market**: Projected to be **260,000 to 300,000 trucks** for 2024  **[PCAR_3393947_1]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: Q2 2024 and FY 2024
- **Guidance**:
  - **Truck Deliveries**: Delivered **48,100 trucks** in Q1, anticipated **48,000** in Q2  **[PCAR_3381490_2]** .
  - **Gross Margins**: Expected to be **18% to 18.5%** in Q2  **[PCAR_3381490_2]** .
  - **Parts Sales Growth**: Estimated to grow by **4% to 6%** in Q2  **[PCAR_3381490_2]** .
  - **Capital Investments and R&D Expenses**: Planned to be **$700 million to $750 million** and **$460 million to $500 million** for 2024  **[PCAR_3381490_2]** .
  - **Market Projections**:
    - U.S. and Canadian Class 8 market: **250,000 to 290,000 trucks**  **[PCAR_3381490_1]** .
    - Medium-duty market in the U.S.: **100,000 units**  **[PCAR_3381490_1]** .
    - European above 16-tonne market: **260,000 to 300,000 trucks**  **[PCAR_3381490_1]** .
    - South American above 16-tonne market: **105,000 to 115,000 vehicles**  **[PCAR_3381490_1]** .
  - **Market Share**:
    - Kenworth and Peterbilt's U.S. Class 8 market share: **30.3%**  **[PCAR_3381490_1]** .
    - Medium-duty market share: **17%**  **[PCAR_3381490_1]** .
    - DAF's market share in Brazil: **10.7%**  **[PCAR_3381490_1]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: Q1 2024
- **Guidance**:
  - **Truck Deliveries**: Forecasted to be around **48,000** units  **[PCAR_3370588_1]** .
  - **U.S. and Canadian Class 8 Truck Market**: Forecasted to be **260,000 to 300,000** vehicles for 2024  **[PCAR_3370588_1]** .
  - **European Above 16-tonne Truck Registrations**: Expected to be **260,000 to 300,000** for 2024  **[PCAR_3370588_1]** .
  - **South American Above 16-tonne Truck Market**: Expected to be **110,000** vehicles  **[PCAR_3370588_1]** .
  - **Parts Sales Growth**: Estimated to grow by **3% to 5%** in Q1 2024  **[PCAR_3370588_2]** .
  - **Full Year Parts Sales Growth**: Expected to grow **4% to 8%**  **[PCAR_3370588_6]** .
  - **Gross Margins**: Estimated to be **18.5% to 19%**  **[PCAR_3370588_1]** .
  - **Capital Investments**: Planned to be **$700 million to $750 million** for 2024  **[PCAR_3370588_2]** .
  - **Research and Development Expenses**: Expected to be **$460 million to $500 million** for 2024  **[PCAR_3370588_2]** .

74f46971726c646400c3033fd3bf87c0c8172043e47bd0c77cf6b0cd7579b2d3

| Name                  | Position                                             | Start Date         | Short Bio                                                                                                                                                                                                 |
|-----------------------|------------------------------------------------------|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Mark C. Pigott        | Executive Chairman of the Board of Directors         | April 2014         | Mark C. Pigott, age 70, has been the Executive Chairman since April 2014. He was Chairman and CEO from 1997 to April 2014 and has been with PACCAR since 1988 in various roles  **[0001193125-24-072684_d48036ddef14a.htm:6]** **[0000950170-24-017900_pcar-20231231.htm:18]** .                                                        |
| R. Preston Feight     | Chief Executive Officer                              | July 2019          | R. Preston Feight, age 56, has been CEO since July 2019. He was Executive Vice President from September 2018 to June 2019 and has been with PACCAR for 26 years  **[0001193125-24-072684_d48036ddef14a.htm:7]** **[0000950170-24-017900_pcar-20231231.htm:18]** .                                                                         |
| Harrie C.A.M. Schippers | President and Chief Financial Officer               | January 2018       | Harrie C.A.M. Schippers, age 61, has been President and CFO since January 2018, contributing significantly to PACCAR's financial and operational strategies  **[0000950170-24-017900_pcar-20231231.htm:18]** **[0000950170-24-017900_pcar-ex31_b.htm:0]** .                                                                             |
| C. Michael Dozier     | Executive Vice President                             | January 2023       | C. Michael Dozier, age 58, has been Executive Vice President since January 2023. He was Senior Vice President from January 2020 to December 2022  **[0000950170-24-017900_pcar-20231231.htm:18]** .                                                                                           |
| Darrin C. Siver       | Executive Vice President                             | January 2023       | Darrin C. Siver, age 57, has been Executive Vice President since January 2023. He was Senior Vice President from January 2017 to December 2022  **[0000950170-24-017900_pcar-20231231.htm:18]** .                                                                                             |
| Kevin D. Baney        | Senior Vice President                                | January 2024       | Kevin D. Baney has been Senior Vice President since January 2024. He was Vice President and General Manager of Kenworth Truck Company from August 2019 to December 2023  **[0000950170-24-017900_pcar-20231231.htm:18]** .                                                                   |
| John N. Rich          | Senior Vice President and Chief Technology Officer   | January 2024       | John N. Rich, age 55, has been Senior Vice President and CTO since January 2024. He was Vice President and CTO from March 2021 to December 2023  **[0000950170-24-017900_pcar-20231231.htm:18]** .                                                                                            |
| Laura J. Bloch        | Vice President and General Manager of PACCAR Parts   | March 2022         | Laura J. Bloch has been Vice President and General Manager of PACCAR Parts since March 2022. She was Senior Assistant General Manager of Sales and Marketing for PACCAR Parts from August 2021 to February 2022  **[0000950170-24-017900_pcar-20231231.htm:18]** .                           |
| Paulo H. Bolgar       | Vice President and Chief Human Resources Officer     | June 2022          | Paulo H. Bolgar has been Vice President and Chief Human Resources Officer since June 2022. He was HR Vice President of Americas and Global Business Units at Baxter International from January 2020 to May 2022  **[0000950170-24-017900_pcar-20231231.htm:18]** **[0001564590-23-002203_pcar-10k_20221231.htm:17]** .                        |
| Todd R. Hubbard       | Vice President of Global Financial Services          | February 2019      | Todd R. Hubbard has been Vice President of Global Financial Services since February 2019. He announced his retirement effective February 14, 2025  **[0001193125-24-275535_d810467d8k.htm:1]** **[PCAR_3391738_15]** **[0000950170-24-116102_pcar-ex99_1.htm:2]** .                                                                                     |
| A. Lily Ley           | Vice President and Chief Information Officer         | January 2017       | A. Lily Ley has been Vice President and CIO since January 2017, overseeing PACCAR's IT strategies and operations  **[0000950170-24-017900_pcar-20231231.htm:18]** .                                                                                                                           |
| Brice J. Poplawski    | Vice President and Controller                        | May 2023           | Brice J. Poplawski has been Vice President and Controller since May 2023. He was Senior Operations Controller from July 2020 to April 2023  **[0000950170-24-017900_pcar-20231231.htm:18]** .                                                                                                 |
| Harald P. Seidel      | Vice President and President of DAF Trucks N.V.      | August 2022        | Harald P. Seidel has been Vice President and President of DAF Trucks N.V. since August 2022. He was Director of Finance from October 2017 to July 2022  **[0000950170-24-017900_pcar-20231231.htm:18]** .                                                                                     |
| Jason P. Skoog        | Vice President and General Manager of Peterbilt      | April 2018         | Jason P. Skoog, age 52, has been Vice President and General Manager of Peterbilt since April 2018. He was Assistant General Manager of Operations at Kenworth from January 2017 to March 2018  **[0000950170-24-017900_pcar-20231231.htm:18]** .                                              |
| James W. Walenczak    | Vice President and General Manager of Kenworth       | January 2024       | James W. Walenczak has been Vice President and General Manager of Kenworth since January 2024. He was Assistant General Manager – Sales and Marketing at Kenworth from August 2021 to December 2023  **[0000950170-24-017900_pcar-20231231.htm:18]** .                                       |
| Michael K. Walton     | Vice President and General Counsel                   | August 2020        | Michael K. Walton has been Vice President and General Counsel since August 2020. He was Senior Counsel from August 2007 to July 2020  **[0000950170-24-017900_pcar-20231231.htm:18]** **[0001564590-23-002203_pcar-10k_20221231.htm:17]** .                                                                                                    |
| Harry M.B. Wolters    | Vice President and General Manager Global Powertrain & Electrification | August 2022 | Harry M.B. Wolters, age 53, has been Vice President and General Manager Global Powertrain & Electrification since August 2022. He was Vice President and President of DAF Trucks N.V. from September 2018 to July 2022  **[0000950170-24-017900_pcar-20231231.htm:18]** .                     |
| Pierre R. Breber      | Board Member                                         | July 1, 2024       | Pierre R. Breber is a board member effective July 1, 2024, as listed in the company's SEC Form 3 filing  **[0001225208-24-007061_xslF345X02/doc3.xml:0]** .                                                                                                                                    |
| Brice C. Hill         | Board Member                                         | July 1, 2024       | Brice C. Hill is a board member effective July 1, 2024, identified as a director and 10% owner in the company's SEC Form 3 filing  **[0001225208-24-007062_xslF345X02/doc3.xml:0]** .                                                                                                          |
| Luiz A. S. Pretti     | Board Member                                         | September 1, 2024  | Luiz Antonio Dos Santos Pretti is a board member effective September 1, 2024, confirmed in the initial statement of beneficial ownership of securities filed with the SEC  **[0001225208-24-008340_xslF345X02/doc3.xml:0]** .                                                                 |
| Craig R. Gryniewicz   | Vice President of Global Financial Services          | December 10, 2024  | Craig R. Gryniewicz was elected Vice President of Global Financial Services effective December 10, 2024. He was President of PACCAR Financial Corp. since December 4, 2018  **[0001193125-24-275535_d810467d8k.htm:2]** .                                                               |

3bed81a97a9233e91b08efdaadfe03bdc1d2ca898e3fb6975935c0ec454c360a

| Program Details          | Program 1          |
|--------------------------|--------------------|
| Approval Date            | December 4, 2018  **[0000950170-24-118960_pcar-20240930.htm:21]** **[0000950170-24-118960_pcar-20240930.htm:58]** **[0000950170-24-118960_pcar-20240930.htm:52]**  |
| End Date/Duration        | N/A                |
| Total additional amount  | $500.0 million  **[0000950170-24-118960_pcar-20240930.htm:21]** **[0000950170-24-118960_pcar-20240930.htm:58]** **[0000950170-24-118960_pcar-20240930.htm:52]**  |
| Remaining authorization amount | $390.0 million as of September 30, 2024  **[0000950170-24-118960_pcar-20240930.htm:21]** **[0000950170-24-118960_pcar-20240930.htm:58]** **[0000950170-24-118960_pcar-20240930.htm:52]**  |
| Details                  | Return value to shareholders  **[0000950170-24-017900_pcar-20231231.htm:43]** **[0000950170-24-017900_pcar-20231231.htm:30]**  |

f859e1e530ffc26ab21e8d2b3b0d3590e403f9ccf49222f939fad63188eb01f5

9071cc45bb320571d47203fd27c72d6e2e52e2538cb898aaaa3dc5ec16d17770

**Quarterly guidance for Q4 2024:**
- **Truck Deliveries**: 42,000  **[PCAR_3403190_2]**  (lowered from 43,000 to 44,000  **[PCAR_3393947_2]** )  
- **Gross Margins**: 15.5% to 16%  **[PCAR_3403190_2]** **[PCAR_3403190_4]**  (lowered from 17%  **[PCAR_3393947_2]** )

**Annual guidance for 2024:**
- **Parts Sales Growth**: 4%  **[PCAR_3403190_2]**  (no change from prior guidance  **[PCAR_3393947_2]** )  
- **Research and Development Expenses**: $450M to $470M  **[PCAR_3403190_2]**  (lowered from $460M to $480M  **[PCAR_3393947_2]** )  
- **Capital Expenditures**: $760M to $800M  **[PCAR_3403190_2]**  (raised from $725M to $775M  **[PCAR_3393947_2]** )  
- **U.S. & Canadian Class 8 Market**: 260,000 trucks  **[PCAR_3403190_1]**  (no change from prior guidance of 240,000 to 280,000  **[PCAR_3393947_1]** )  
- **European Truck Industry Registrations**: 300,000 vehicles  **[PCAR_3403190_1]**  (raised from prior range of 260,000 to 300,000  **[PCAR_3393947_1]** )  
- **South American Above 16-tonne Market**: 110,000 to 120,000 trucks  **[PCAR_3403190_1]**  (no prior guidance)

**Annual guidance for next year (not previously guided):**
- **Capital Expenditures**: $700M to $800M  **[PCAR_3403190_2]**  (no prior guidance)  
- **Research and Development Expenses**: $480M to $530M  **[PCAR_3403190_2]**  (no prior guidance)  
- **U.S. & Canadian Class 8 Market**: 250,000 to 280,000 vehicles  **[PCAR_3403190_1]**  (no prior guidance)  
- **European Truck Industry Registrations**: 270,000 to 300,000 trucks  **[PCAR_3403190_1]**  (no prior guidance)  
- **South American Above 16-tonne Market**: 110,000 to 120,000 trucks  **[PCAR_3403190_1]**  (no prior guidance)  

9e0b772ac1bc75cd2717537049e9082cc31ac81e58d535e6dffea179bbfb2b17

| Name               | Start Date | End Date | Reason for Change |
|--------------------|------------|----------|-------------------|
| Ernst & Young LLP | 1945  **[0000950170-24-017900_pcar-20231231.htm:102]**    | Present  | Current auditor   |

c2f906fa43f5d7040ec6a4cc87a92baaac2e9c9611fbe5fa453e420a75f4733a

- **PACCAR is gaining market share in both Class 8 and medium-duty truck markets**, showcasing strong competitive positioning. In 2024, Kenworth and Peterbilt's Class 8 market share increased to **30.7%, up from 29.5%** in the prior year \[0\]. In the medium-duty market, their share grew from **14.5% to 18%**, producing a record **21,500 medium-duty trucks** \[0,12\].
- **PACCAR is maintaining strong gross margins despite lower production volumes**, indicating operational efficiency and pricing power. PACCAR's Truck, Parts and Other gross margins were a solid **15.9% in the fourth quarter**, and are expected to be in the range of **15.5% to 16% in the first quarter of 2025**, even with lower production volumes \[0,8,13\].
- **PACCAR Parts division continues to deliver impressive results**, with record revenues and profits in a challenging market. In 2024, parts sales increased by **4%** despite the parts market being down **2% to 3%**, achieving a pretax profit of **$1.71 billion** with gross margins averaging **30.9%** \[1,6\].

5582ad669620d11029dce393c99776fc0f7f47c1189367d81ed1ab00aa031455

- **Average revenue per truck decreased by approximately 5% in the fourth quarter**, driven by unfavorable foreign exchange rates and a shift in regional sales mix towards markets with lower-priced trucks. The stronger U.S. dollar accounted for about half of this decline, with the remainder due to more sales in regions outside the U.S. and Canada where trucks are smaller and less expensive. This reduction in average revenue per truck could impact overall profitability if the trend continues.  **[PCAR_3413392_26]** ,  **[PCAR_3413392_8]**
- **PACCAR Parts projects a slower sales growth of 2% to 4% in 2025**, compared to a 4% increase in 2024, despite expectations of an improving market. This anticipated slowdown in parts sales growth, even as the truck market is forecasted to be flat to up, suggests potential challenges in capitalizing on market recovery and may indicate limited growth opportunities in the parts segment.  **[PCAR_3413392_30]** ,  **[PCAR_3413392_29]**
- **Adverse foreign exchange rates negatively impacted net income by approximately $20 million in the fourth quarter**, and if exchange rates remain at current levels, this negative effect could be recurring. Continued foreign currency headwinds could pressure future earnings and margins.  **[PCAR_3413392_18]**

612fe205655891e59bb70624d56a4fd1512c58020cd4f3aa433b32e3d3352a5d

1. **Gross Margin Outlook**  
   **Q:** How will gross margins trend amid lower production?  
   **A:** Despite a **10% lower production**, PACCAR expects first-quarter gross margins to remain steady at **15.5% to 16%**  **[PCAR_3413392_9]** **[PCAR_3413392_10]** , enabled by strong truck performance, great fuel economy, slightly lower warranty costs, and positive market direction.  **[PCAR_3413392_10]** 

2. **Impact of 2027 Regulations on Pricing**  
   **Q:** What is the expected price increase for 2027 emission regulations?  
   **A:** PACCAR anticipates that adjustments for the 2027 regulations could range from **$10,000 to $15,000** per truck  **[PCAR_3413392_8]** , with ongoing discussions with customers about these changes.  **[PCAR_3413392_8]** 

3. **Pricing Environment and Margin Confidence**  
   **Q:** Is the pricing environment stable, and have margins hit the low point?  
   **A:** The company believes the pricing environment is stabilizing and expects improvements throughout **2025**, particularly in the second half, indicating confidence that margins have reached their low point.  **[PCAR_3413392_10]** 

4. **Order Activity and Backlog**  
   **Q:** How is order activity, and how full is the backlog?  
   **A:** PACCAR's backlog is approximately **75% full for Q1** and **half full for Q2**, which is considered normal for this point in the cycle.  **[PCAR_3413392_14]** 

5. **FX Impact on Margins**  
   **Q:** How does foreign exchange affect margins and net income?  
   **A:** In Q4, negative foreign currency effects reduced net income by about **$20 million**  **[PCAR_3413392_15]** ; if exchange rates stay the same, this effect could recur and is factored into the gross margin guidance of **15.5% to 16%**.  **[PCAR_3413392_15]** 

6. **Delivery Guidance and Market Outlook**  
   **Q:** What is the outlook for deliveries by geography in Q1 vs. Q4?  
   **A:** In the U.S., Class 8 deliveries are expected to be **flat or slightly up in Q1**  **[PCAR_3413392_4]** , while the medium-duty market is normalizing with a slight decrease.  **[PCAR_3413392_4]**  Mexico experienced a pre-buy in Q4 due to Euro 6 implementation, not present in Q1.  **[PCAR_3413392_4]** 

7. **Investments in Amplify JV**  
   **Q:** Will PACCAR reconsider its investment in the Amplify JV given the shift away from BEVs?  
   **A:** PACCAR remains committed to the Amplify Cell Technologies joint venture, viewing it as a long-term strategic objective to offer a full portfolio of powertrain choices, including battery electric and hybrid vehicles, ensuring competitiveness with **lowest cost, highest quality batteries**.  **[PCAR_3413392_5]** 

8. **R&D Expenses and Amplify Project Phasing**  
   **Q:** What's driving the slight increase in R&D expenses, and is the Amplify project being phased?  
   **A:** R&D expenses are expected to increase by **about 5%** year-over-year due to numerous projects.  **[PCAR_3413392_18]**  The Amplify project is proceeding in phases, scaling capacity based on market demand for EVs and hybrids.  **[PCAR_3413392_18]** 

9. **Used Truck Market Dynamics**  
   **Q:** How is the used truck market affecting new truck pricing?  
   **A:** PACCAR Financial's used truck inventory is at **healthy, low levels**  **[PCAR_3413392_9]** , indicating a stabilizing used market, which is a positive leading indicator for new truck pricing improvements.  **[PCAR_3413392_9]** 

10. **Hybrid Trucks Demand**  
    **Q:** Is there actual demand for hybrid trucks from customers?  
    **A:** PACCAR sees potential demand for hybrids, as they could improve fuel efficiency and reduce greenhouse gases by **double-digit levels**.  **[PCAR_3413392_9]**  Though there is added cost, hybrids may present a viable business case, especially in Europe, independent of regulatory incentives.  **[PCAR_3413392_9]** 

281ff97c4b21c875a40e6902e7ae27c136fe2b2efad6627bf277d59a2ecd538c

PCAR grew Class 8 share from 29.5% to 30.7% and medium-duty from 14.5% to 18% in 2024. Despite a 10% production drop, Q1 gross margins should hold at 15.5–16%. FX headwinds and slower parts growth remain concerns, but operational efficiency stays strong.

2563cf64d704c5785c9e0dc5a4c6526b12cdcffc04e7042fce2e382c72956126

**Quarterly guidance for Q1 2025:**
- **Truck Deliveries**: 40,000  **[PCAR_3413392_2]**  (lowered from 42,000  **[PCAR_3403190_2]** )  
- **Gross Margins**: 15.5%–16%  **[PCAR_3413392_18]** **[PCAR_3413392_2]**  (no change from 15.5%–16%  **[PCAR_3403190_4]** )

**Annual guidance for FY 2025:**
- **Parts Sales Growth**: 2%–4%  **[PCAR_3413392_3]** **[PCAR_3413392_29]**  (no prior guidance)  
- **Capital Investments**: $700M–$800M  **[PCAR_3413392_3]**  (no change from $700M–$800M  **[PCAR_3403190_2]** )  
- **Research and Development (R&D) Expenses**: $460M–$500M  **[PCAR_3413392_3]**  (lowered from $480M–$530M  **[PCAR_3403190_2]** )  
- **U.S. and Canadian Class 8 Truck Market**: 250,000–280,000  **[PCAR_3413392_2]**  (no change from 250,000–280,000  **[PCAR_3403190_1]** )  
- **European Above 16-Tonne Truck Market**: 270,000–300,000  **[PCAR_3413392_2]**  (no change from 270,000–300,000  **[PCAR_3403190_1]** )  
- **South American Above 16-Tonne Truck Market**: 119,000  **[PCAR_3413392_2]**  (no change from 110,000–120,000  **[PCAR_3403190_1]** )

c5011fca6a8156e0f35f59902c4800fa2a4aa0355fdad02404e6c5f63a0f5579

ef8232f8b18dd536ccdef9721b9caee106fffbf9b8d104a961d024af15b73af1

458ab786894f1b310fe6709ccbdc658b210b579514aff6d76754d59ebc57c493

80ef6ec2bbf412125dd93a1db0cba24abf076733db38a7a2c48692cc06de6b60

51ac01bcbfe196e5a6396e90f6e0b89ebc74a54c37a6747f5d3df659cf224313

- **PACCAR is gaining market share due to excellent new products, strong dealer network, and exceptional customer service.** Their U.S. and Canadian market share grew **from 27.7% to 31.5%** in the first half of the year.  **[PCAR_3393947_18]** ,  **[PCAR_3393947_26]** ,  **[PCAR_3393947_17]**
- **PACCAR is investing in technology and capacity to support long-term growth**, including R&D on emissions and fuel efficiency improvements, and **expanding manufacturing capacity by about 10%-15%** to support market share growth.  **[PCAR_3393947_3]** ,  **[PCAR_3393947_29]**
- **PACCAR maintains strong margins and pricing discipline, even in softer markets**, benefiting from strong positions in vocational and medium-duty segments, and improving warranty costs due to excellent truck quality.  **[PCAR_3393947_27]** ,  **[PCAR_3393947_13]** ,  **[PCAR_3393947_10]**

c0f5579a5a4cb645c74fddb0fceb7eb768871b04174b723825b1e37ef11c4010

- **PACCAR's European truck deliveries are planned to be down around 31%** in the first half of the year, compared to a market decline of **18%**, indicating that PACCAR may be losing market share or is more exposed to weaker regions in Europe.  **[PCAR_3381490_13]**
- Management expects **truck margins to decline** in the second quarter, anticipating margins to be in the range of **18% to 18.5%**, down from **19%** in the first quarter, despite similar delivery volumes. This suggests potential **margin pressure** going forward.  **[PCAR_3381490_2]** ,  **[PCAR_3381490_10]**
- There may be a **buildup of dealer inventory in North America**, as deliveries increased by almost **14%** year-over-year in the first quarter, while retail sales were down. The **longer time to put vocational trucks into service** could contribute to higher inventory levels, potentially indicating future production cuts or slowing demand.  **[PCAR_3381490_4]**

9f8e60833aa13838ea9fbb7975cac562b0ba23c5f104be23957e3b7412681d3b

1. **Margins and Price/Cost Headwinds**  
   **Q:** Will margins face pressure due to price/cost dynamics?  
   **A:** Management anticipates pricing challenges in the **Truck** segment, with price up slightly less than **1%** and cost up slightly more than **1%** in Q2.  **[PCAR_3393947_8]**  They are guiding for a **17%** gross margin in Q3, down from **18%** in Q2, reflecting price and cost challenges.  **[PCAR_3393947_10]** **[PCAR_3393947_21]**  While price is feeling the market effects, costs might offer some opportunities but not as much as price.  **[PCAR_3393947_21]** 

2. **Market Share Gains and Sustainability**  
   **Q:** What is driving your market share gains, and are they sustainable?  
   **A:** PACCAR's market share has grown from **27.7%** last year to **31.5%** this year.  **[PCAR_3393947_17]**  This is due to investments in new product upgrades, excellent truck performance, a fantastic dealer network, and strong support from the Parts and Financial Services divisions.  **[PCAR_3393947_18]**  The easing of supplier capacity constraints has also enabled market share growth.  **[PCAR_3393947_18]** 

3. **Prebuy Impact on Demand**  
   **Q:** Are customers planning a prebuy ahead of new emissions regulations?  
   **A:** Customers' assumptions haven't significantly changed regarding prebuy plans.  **[PCAR_3393947_11]**  Historically, when emissions regulations bring costs into the market, customers tend to buy sooner, but how far this trend will go depends on many factors.  **[PCAR_3393947_25]** 

4. **Truckload Weakness vs. Vocational Strength**  
   **Q:** How are different market segments performing?  
   **A:** The **vocational market** remains strong, supported by infrastructure spending and reshoring, and is expected to remain robust into **2025**.  **[PCAR_3393947_7]** **[PCAR_3393947_12]**  In contrast, the **truckload sector** faces low spot and contract rates, which may impact pricing and cost balance.  **[PCAR_3393947_4]** **[PCAR_3393947_7]** 

5. **Inventory Levels and Production Planning**  
   **Q:** How are you managing inventories amid market conditions?  
   **A:** PACCAR's inventory stands at **3.3 months** of retail sales, compared to the industry's **3.9 months**, indicating a healthy position.  **[PCAR_3393947_11]**  The company is nearly fully booked for Q3 and over **50%** booked for Q4, which is normal for this time of year.  **[PCAR_3393947_9]** **[PCAR_3393947_23]** 

6. **Parts Margins Under Pressure**  
   **Q:** Why are Parts margins facing pressure?  
   **A:** In the Parts business, price increased by **3%**, but costs rose by **5%**, leading to margin pressure.  **[PCAR_3393947_8]**  This reflects the softer aftersales market in North America.  **[PCAR_3393947_15]**  Management expects favorable pricing developments as the year progresses.  **[PCAR_3393947_14]** 

7. **European Market Conditions and Pricing**  
   **Q:** Are you seeing pricing pressure in Europe?  
   **A:** The European market is down, especially in Central and Eastern Europe, leading to some pricing pressure.  **[PCAR_3393947_10]** **[PCAR_3393947_27]**  Despite this, the team maintains the premium position of the new DAF trucks.  **[PCAR_3393947_27]** 

8. **Warranties Tailwind**  
   **Q:** Are warranty costs improving?  
   **A:** Warranty costs have been developing very favorably, reflecting the excellent trucks currently being built. This positive trend is moving in the right direction.  **[PCAR_3393947_13]** 

9. **Battery JV and Electrification Strategy**  
   **Q:** What's the plan for your battery joint venture?  
   **A:** The battery JV aims to develop batteries optimized for commercial vehicles with a great cost position.  **[PCAR_3393947_19]**  Initial applications will be in return-to-base operations, such as medium-duty or pickup and delivery trucks, where total cost of ownership could be positive.  **[PCAR_3393947_19]** 

10. **Used Truck Pricing**  
    **Q:** How do you see used truck prices trending?  
    **A:** Used truck prices have normalized, and inventories are at normal levels. Management expects prices to stabilize from here in the U.S. and Canada.  **[PCAR_3393947_23]** 

9d2505a3b1d84a01275b6d30673c359285a0644b8bf375341f94a84602c9ae26

1. **Gross Margin Outlook**  
   **Q:** Can you give more color on gross margins for 2024?  
   **A:** We have good price versus cost now and expect it to continue. Market sizes are normalizing slightly, with Europe down **15%–20%** and North America down **5%–10%**, but we still expect good markets and strong price vs. cost performance. We guided to **18.5%–19% gross margins** for Q1.  **[PCAR_3370588_5]** 

2. **Market Outlook for 2024**  
   **Q:** What's the outlook for global truck deliveries and markets?  
   **A:** We see strong global markets: Australia, Mexico, and South America are doing very well. North America remains steady at very high levels. Europe is normalizing, with the market expected at **260,000 to 300,000 units**, down **15%–20%**, which is reflected in our European deliveries.  **[PCAR_3370588_3]** 

3. **Pricing Dynamics**  
   **Q:** How is industry pricing, and what are your expectations for 2024?  
   **A:** With our refreshed product lineup delivering excellent results, we're seeing good pricing realization worldwide. Our new DAF trucks won the Green Truck award in Europe for fuel efficiency, supporting strong pricing.  **[PCAR_3370588_4]** 

4. **Emission Regulations and Pre-buy**  
   **Q:** Will pre-buying ahead of 2027 emissions changes impact orders in 2024?  
   **A:** It's fleet-dependent, but sophisticated buyers are aware of the upcoming emissions change in 2027. While generalizing into 2024 might be premature, we believe this will increasingly impact purchase plans, and we see a positive benefit from that.  **[PCAR_3370588_11]** 

5. **Electric Vehicle Strategy**  
   **Q:** How do you view the state of the EV market for commercial vehicles?  
   **A:** Initial enthusiasm may have been excessive; adoption is happening gradually. We're making prudent investments timed to adoption rates, including starting our own battery production through a joint venture to supply our needs throughout the decade, positioning us well as EV demand grows.  **[PCAR_3370588_12]** 

6. **Supply Chain Improvements**  
   **Q:** Can supply chain improvements boost margins in 2024?  
   **A:** With supply challenges improving, smoother factories are more efficient. As we look into 2024, better supply stability could provide a tailwind to our operations.  **[PCAR_3370588_13]** 

7. **Used Truck Prices**  
   **Q:** What's your outlook for used truck prices?  
   **A:** Used truck prices normalized in Q4. We expect stabilization at these levels, with prices now more normal. PACCAR Financial performed well, earning **$113 million** in the quarter, and we expect this good performance to continue  **[PCAR_3370588_9]** ,.  **[PCAR_3370588_22]** 

8. **Parts Business Outlook**  
   **Q:** Should we expect parts gross margins to continue upward?  
   **A:** Our parts business continues to perform well. Last year was a record, and we expect another fantastic year. For the full year, parts revenue is projected to grow **4%–8%** over last year, reflecting favorable pricing and some cost increases  **[PCAR_3370588_6]** ,.  **[PCAR_3370588_8]** 

9. **Warranty Costs**  
   **Q:** Do you expect warranty costs to return to normal levels in 2024?  
   **A:** Trucks are performing well, and we anticipate returning to a normal warranty accrual rate. Increased truck complexity contributes to more opportunities, but we're confident in our performance.  **[PCAR_3370588_14]** 

10. **Order Backlog and Visibility**  
    **Q:** How much visibility do you have on truck orders for 2024?  
    **A:** Q1 is effectively full, and Q2 is filling in nicely. We have a growing backlog into the second half as well, and things feel pretty healthy.  **[PCAR_3370588_15]** 

ef66b77ac038357499464a92380013ac38874284f4cec4d94aa74b59625617f9

- **PACCAR is experiencing pricing pressure in the European market due to weaker demand, which could impact margins.**  **[PCAR_3393947_27]**
- **PACCAR's European deliveries declined by 30% in the first half of the year, underperforming the market decline of 13% to 22%, suggesting potential loss of market share in that region.**  **[PCAR_3393947_10]**
- **In the PACCAR Parts division, costs increased by 5% year-over-year due to broad-based inflation, while pricing only increased by 3%, indicating margin compression in this segment.**  **[PCAR_3393947_15]** **[PCAR_3393947_14]**

9692b483d77fde545f3e81e788ee08e7177acbc33c8a0df15dc8f7b7dca3536e

- **PACCAR anticipates a decrease in fourth-quarter truck deliveries to around 42,000 vehicles**, down from **44,900 trucks delivered in the third quarter**, due to fewer production days and supplier-related limitations  **[PCAR_3403190_2]** . This suggests potential supply chain and production challenges ahead.
- **European volumes have been down more than the market this year**, particularly in Central and Eastern Europe affected by the war in Ukraine and slower economies  **[PCAR_3403190_9]** . PACCAR expects these conditions to continue into next year, indicating ongoing weakness in a key market.
- **Truck gross margins decreased to 16.6% in the third quarter** and are anticipated to decline further to **between 15.5% and 16% in the fourth quarter**, driven by higher costs, including supplier issues and operating expenses  **[PCAR_3403190_2]** **[PCAR_3403190_11]** . This reflects ongoing **margin contraction** that may impact profitability.

74d1def84d403cf35195972ee17129721580ce37312e7bd4da358eaa4b435aa9

- **PACCAR is investing in factory capacity and anticipates growth in the coming years**, ensuring they will not be capacity constrained  **[PCAR_3403190_31]** .
- **The company is performing at a structurally stronger level, with improved truck profitability and margins expected to hold true**  **[PCAR_3403190_20]** .
- **PACCAR holds over 40% market share in the vocational truck sector**, which is expected to remain strong in 2025 due to continued infrastructure spending  **[PCAR_3403190_17]** .

48edfe114a27c9430b74e9a9a321fc549af0179b6acd6d49f9ff7b53b4a7b303

1. **Margin Outlook**  
   **Q:** Why are margins expected to remain strong?  
   **A:** Management highlighted that their business is structurally stronger, delivering a **19% margin** even when truckload carriers are softer.  **[PCAR_3381490_10]**  They expect second-quarter margins to be between **18% and 18.5%**, demonstrating excellent performance through all parts of the business cycle.  **[PCAR_3381490_10]** 

2. **2025-2026 Market Outlook**  
   **Q:** What is the outlook for 2025 and 2026?  
   **A:** They anticipate that **2025 and 2026** will be more positive as they head into the **2027 emission cycle**.  **[PCAR_3381490_5]**  Customers may pull forward purchases to avoid new emission standards, leading to stronger markets in those years.  **[PCAR_3381490_12]** 

3. **North American Demand**  
   **Q:** How is North American demand compared to industry forecasts?  
   **A:** Despite a slight adjustment in industry forecasts to a midpoint of **270,000 units**, management feels positive due to increasing market share in the U.S. and Canada.  **[PCAR_3381490_5]**  They are filling the third quarter and see their delivery schedule as solid and stable.  **[PCAR_3381490_14]** 

4. **Vocational Market Strength**  
   **Q:** How is the vocational truck market performing?  
   **A:** The vocational market is exceptionally strong, with PACCAR holding over **40% share** between Kenworth and Peterbilt.  **[PCAR_3381490_8]**  Backlog is effectively full for the year, and infrastructure spending continues to drive demand.  **[PCAR_3381490_8]** 

5. **European Market Softness**  
   **Q:** What is happening in the European market?  
   **A:** The European truck market has softened, especially in Central and Eastern Europe, affecting DAF deliveries.  **[PCAR_3381490_13]**  They are coming off a record quarter last year, making comparisons more difficult.  **[PCAR_3381490_13]** 

6. **Pricing and Mix Impact**  
   **Q:** How are pricing and mix affecting results?  
   **A:** Truck pricing is approximately **3% higher**, in line with cost increases.  **[PCAR_3381490_9]**  However, average selling prices are up closer to **8%** due to a favorable mix with more vocational trucks and higher North American sales versus Europe.  **[PCAR_3381490_18]** 

7. **Interest Rate Sensitivity**  
   **Q:** Are higher interest rates impacting sales?  
   **A:** Higher interest rates make trucks more expensive to lease, but improved fuel efficiency of new trucks offsets some of this cost.  **[PCAR_3381490_7]**  Interest rates are at normal historical levels, and with economic growth expected, they anticipate a good year.  **[PCAR_3381490_7]** 

8. **Order Backlog**  
   **Q:** How full are the order books?  
   **A:** The second quarter is substantially full across all markets, and they are filling nicely into the third quarter.  **[PCAR_3381490_6]** 

9. **Product Strategy for Emissions Changes**  
   **Q:** How is PACCAR preparing for emissions changes?  
   **A:** They are developing new trucks, engines, and alternative energy capabilities to handle upcoming emissions changes.  **[PCAR_3381490_12]**  They'll launch a PACCAR engine in California this year that meets new requirements, giving them a head start.  **[PCAR_3381490_12]** 

10. **Parts Business Growth**  
    **Q:** Will parts market share benefit from new trucks?  
    **A:** Yes, as the installed base of **2027-emission trucks** grows, their parts market share will benefit from expanded warranty provisions.  **[PCAR_3381490_17]** 

b3088f7a9af4dc05d69f0b7d74d78f31e4806a1b1ffaf22e0e2ea95495b66a5b

- **PACCAR is experiencing strong demand and order visibility in North America, outperforming industry averages due to its leadership in the vocational market and a new, innovative product lineup, which provides customers with the lowest total cost of ownership**.  **[PCAR_3370588_20]** **[PCAR_3370588_3]**
- **PACCAR's Parts division continues to achieve record performance, with expected growth of 4% to 8% for the full year**, driven by investments in new Parts Distribution Centers, e-commerce technology, and proprietary PACCAR engines, enhancing profitability even if truck market sizes moderate.  **[PCAR_3370588_8]** **[PCAR_3370588_16]** **[PCAR_3370588_6]**
- **PACCAR is strategically investing in electric vehicle (EV) technology, including building a battery cell factory through a joint venture**, positioning the company to offer cost-efficient, high-performing EVs in line with gradual market adoption and regulatory requirements.  **[PCAR_3370588_12]**

516bc4fda7841e23a49c99a1264e64919423b16967f06a1d4c7ccf09052aede5

1. **Pricing Outlook**  
   **Q:** What's the current pricing trend and outlook?  
   **A:** Pricing was **flat** in Q3 with costs up **3%** on the truck side.  **[PCAR_3403190_3]**  The company anticipates that as market tensions ease over the coming months and next year, the pricing environment could improve, benefiting price versus cost.  **[PCAR_3403190_3]** 

2. **Gross Margin Outlook**  
   **Q:** Is Q4 gross margin a base for 2025?  
   **A:** The year started exceptionally strong, but truckload carriers have faced challenges.  **[PCAR_3403190_4]**  In **2025**, the company expects a mirror image of this year—starting like it's finishing and then accelerating.  **[PCAR_3403190_4]**  Stabilization in the truckload sector is significant, and growth is anticipated over the coming year.  **[PCAR_3403190_4]** 

3. **Inventory Levels**  
   **Q:** Is 2.9 months inventory level acceptable?  
   **A:** The company feels very good about the **2.9 months** inventory level, considering it healthy.  **[PCAR_3403190_7]**  Over half of the inventory is vocational trucks at body builders, strengthening their position.  **[PCAR_3403190_6]**  Inventory levels have decreased from **3.3 months** at the end of June to **2.9 months** currently.  **[PCAR_3403190_7]** 

4. **Vocational Market Strength**  
   **Q:** Will the vocational market remain strong next year?  
   **A:** The vocational market is expected to continue running strong next year.  **[PCAR_3403190_6]**  The company's differentiation in vocational trucks serves as a margin tailwind  **[PCAR_3403190_6]** , and they are well-positioned with strong vocational inventory.  **[PCAR_3403190_6]** 

5. **Prebuy Expectations**  
   **Q:** Is a prebuy expected to boost demand?  
   **A:** Improvement in the freight market is anticipated as some carriers lead the market.  **[PCAR_3403190_8]**  As trucks have gotten older, buyers will be interested in purchasing enough trucks for the next several years, contributing to **2025's growth**.  **[PCAR_3403190_8]** 

6. **Europe Production Outlook**  
   **Q:** Will you deliver to demand in Europe next year?  
   **A:** The company plans to build to demand next year.  **[PCAR_3403190_9]**  European volumes have been down more than the market due to slower economies in Central and Eastern Europe affected by the war in Ukraine.  **[PCAR_3403190_9]**  They feel well-positioned in Europe with strong price discipline and great new trucks.  **[PCAR_3403190_9]** 

7. **Order Books and Pricing for Next Year**  
   **Q:** Have you opened order books for next year? What's pricing?  
   **A:** The company engaged significantly with customers, with enthusiasm for the trucks and expectations of purchases next year.  **[PCAR_3403190_10]**  Current conditions introduce price/cost tension, but relief is expected as they move into **2025**.  **[PCAR_3403190_10]** 

8. **Parts Profitability Outlook**  
   **Q:** What's the outlook for parts profitability?  
   **A:** Despite a smaller overall aftersales market this year, the parts team has achieved **5% growth** and maintained excellent margins.  **[PCAR_3403190_12]**  They expect continued strong performance as the market opens up.  **[PCAR_3403190_12]** 

f76a51b675a05fc3ff64871a00575007b73e79852eea6f0842a929981a2e18c2

- **PACCAR is delivering strong margins**, demonstrating structurally improved profitability across the business cycle. In Q1, they achieved a **19% margin**, and expect **18% to 18.5%** in Q2.  **[PCAR_3381490_10]**
- **PACCAR has over 40% share in the vocational truck market** between Kenworth and Peterbilt, an **exceptionally strong market** with backlog effectively full through much of the year, benefiting from infrastructure spending.  **[PCAR_3381490_8]**
- **PACCAR's strong product pipeline and innovation** with new truck models like the **model 589 at Peterbilt** and new medium-duty products increasing market share, positions the company well for future growth. They are also developing new trucks, engines, and alternative energy capabilities to handle upcoming emissions changes.  **[PCAR_3381490_12]**

3e3bb3f04e616f3dcffc8b2dc61ae15fefc9b2198a47d460aa01f21a8bad20c3

- **Rising cost per unit may pressure margins even in high-volume scenarios, as costs could continue to increase due to inflation, competition, and added truck content.**  **[PCAR_3370588_27]**
- **Normalization of used truck prices may negatively impact PACCAR Financial Services' profitability, as used truck prices have come down and stabilized at lower levels.**  **[PCAR_3370588_22]**
- **Uncertainty in the adoption rate of electric vehicles and potential delays in market growth could impact PACCAR's investments and future growth prospects in the EV segment.**  **[PCAR_3370588_12]**

7f9f4d92559c450b9416a3e508e78153e54974eb9ce47cd441a581f95a565493

Paccar Inc (PCAR)

Financials