At a glance
PACCAR Inc is worth $54.09B, about 23 times its fiscal 2025 earnings. Revenue fell 15.5% to $28.44B in fiscal 2025, with 8.4% kept as profit; over 5 years it has grown 8.7% a year. It pays a 2.69% dividend yield, and returned $7.83B to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +7.0% over the past year with dividends reinvested and +15.1% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 33.9% in the 2020 crash (S&P 500: 33.7%) and 17.4% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 2 months and 4 months after the lows.
The business in plain English
PACCAR designs and builds commercial trucks under three nameplates. Kenworth and Peterbilt are its main North American brands. DAF is its European brand, which also competes in Brazil and Australia. The trucks range from light- and medium-duty models to heavy-duty Class 8 rigs, which are rated above 33,000 pounds when loaded. Nearly all go to independent dealers, and most are built to customer specifications. PACCAR makes its own engines for almost all DAF heavy trucks and about 29% of Kenworth and Peterbilt heavy trucks in the U.S. and Canada. Trucks made up 68% of fiscal 2025 net sales and revenues. That year PACCAR held 29.9% of U.S. and Canadian Class 8 retail sales.
The Parts segment brought in 24% of revenue. It supplies replacement parts to more than 2,000 Kenworth, Peterbilt and DAF dealers and over 350 stores under its TRP brand in 99 countries. Parts demand rises with the number of PACCAR trucks in service and their age and mileage.
PACCAR Financial Services brought in 8% of revenue but holds 51% of total assets. It provides loans and leases to trucking companies, owner-operators and dealers in 26 countries, and it handles used-truck resales. By region, the U.S. accounted for 54% of fiscal 2025 revenue of $28.4 billion, Europe 24% and other countries 21%.
Price history
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PCAR +7.0% over the year to Nov 2, 2026, total return with dividends reinvested.
How it makes money
By geography
| US | $15.43B | 54.2% |
| Europe | $6.95B | 24.4% |
| Other Countries | $6.07B | 21.3% |
Latest results
- In Q3 FY2026 (ended Sep 30, 2026), revenue was $7.94B, up 19% from a year earlier, and net income was $847.5M (+43.6%).
- For fiscal 2025, revenue was $28.44B (-15.5% year over year; +8.7% a year from FY2020 to FY2025) with a 8.4% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +8.7% good |
|---|---|
| Free cash flow margin | 12.9% good |
| Return on equity (FY2025) | 12.3% watch |
| Return on assets (FY2025) | 5.4% watch |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $18.73B | $1.30B | $2.44B |
| FY2021 | $23.52B | $1.87B | $1.63B |
| FY2022 | $28.82B | $3.01B | $2.50B |
| FY2023 | $35.13B | $4.60B | $3.50B |
| FY2024 | $33.66B | $4.16B | $3.80B |
| FY2025 | $28.44B | $2.38B | $3.67B |
Valuation snapshot
| Market value | $54.09B |
|---|---|
| P/E ratio | 22.8 |
| Dividend yield | 2.69% |
Rank among 1514 US companies
Market value at each year end
PACCAR’s market value went from $22.40B at the end of 2016 to $54.09B on Nov 2, 2026, about 2.4 times as much; since the end of 2025 it is down 6%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Nov 2, 2026 | $54.09B | -5.9% |
| 2025 | $57.52B | +5.5% |
| 2024 | $54.54B | +6.8% |
| 2023 | $51.08B | +48.4% |
| 2022 | $34.42B | +12.3% |
| 2021 | $30.64B | +2.5% |
| 2020 | $29.89B | +9.3% |
| 2019 | $27.36B | +37.0% |
| 2018 | $19.97B | -20.1% |
| 2017 | $24.99B | +11.6% |
| 2016 | $22.40B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| PCAR price data to Nov 2, 2026 | -5.4% | +7.0% | +10.7% | +15.1% | +14.5% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -5.4% |
| 2025 | +8.0% |
| 2024 | +10.8% |
| 2023 | +55.0% |
| 2022 | +17.1% |
| 2021 | +5.7% |
| 2020 | +11.4% |
| 2019 | +42.8% |
| 2018 | -16.8% |
| 2017 | +13.6% |
| 2016 | +37.2% |
| 2015 | -28.2% |
| 2014 | +17.1% |
| 2013 | +33.6% |
| 2012 | +23.6% |
| 2011 | -33.3% |
| 2010 | +59.1% |
| 2009 | +27.8% |
| 2008 | -47.0% |
| 2007 | +27.7% |
| 2006 | +43.6% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 63.2% over that stretch · deepest drop along the way 63.2%, back to its old high 20.8 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 32.8% over that stretch · deepest drop along the way 33.9%, back to its old high 2.4 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Gained 1.2% over that stretch · deepest drop along the way 17.4%, back to its old high 3.5 months after the low |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 0 open-market purchases and 2 sales ($649K).
| Date | Insider | Type | Value |
|---|---|---|---|
| Jul 31, 2026 | Paulo Henrique Bolgar Vice President | sell | $388K |
| Jul 31, 2026 | Brice J Poplawski Sr. Vice President & CFO | sell | $261K |
Who owns it
Large shareholders (13G filings)
| Vanguard Capital Management | 7.5% | Mar 31, 2026 |
ETFs with the most weight in PCAR
| FTXR First Trust Nasdaq Transportation ETF | 4.06% |
| MADE iShares U.S. Manufacturing ETF | 3.85% |
| EQTY Kovitz Core Equity ETF | 3.16% |
| RISN Inspire Tactical Balanced ETF | 2.82% |
| FTIF First Trust Bloomberg Inflation Sensitive Equity ETF | 2.06% |
| QQXT First Trust Nasdaq-100 Ex-Technology Sector Index Fund | 1.78% |
| BIBL Inspire 100 ETF | 1.62% |
| FXR First Trust Industrials/Producer Durables AlphaDEX Fund | 1.24% |
What could go wrong
- Truck demand swings with the economy. Truck orders depend on economic activity, freight volumes and access to credit, and can swing more than the overall economy. In fiscal 2025, revenue fell 15.5% and net income fell 42.9%.
- Heavy reliance on a few suppliers. PACCAR depends on Cummins for many engines, Eaton and ZF for transmissions and Magna for North American cab parts. The 10-K says losing any of them would disrupt truck production and materially affect results.
- Finance arm faces loan losses. PACCAR Financial Services holds 51% of company assets. If trucking customers or dealers default, PACCAR may recover less than it is owed, especially when used-truck prices fall.
- Funding markets and credit ratings matter. The finance arm borrows through commercial paper (short-term corporate IOUs), medium-term notes and bank loans. Market turmoil or a credit-rating cut could raise its costs or force it to lend less, reducing truck sales.
- Uncertain shift away from diesel. PACCAR is spending on battery-electric, hybrid and hydrogen trucks while meeting changing emissions rules. Adoption depends on technology costs, charging and hydrogen infrastructure, and regulation. Misjudging the pace could hurt results.
- Material costs and part shortages. Purchased materials and components make up about 85% of a new truck's cost. Higher prices for steel, copper, aluminum or petroleum, or shortages of parts such as semiconductors, can squeeze margins or slow production.
Recent events
- Quarterly results released
- Quarterly results released
- Executive or board change; Shareholder vote results
- Quarterly results released
- Quarterly results released
- Executive or board change; Other company announcement
- Executive or board change; Other company announcement
For income and retirement investors
PACCAR pays a dividend, but the amount per share has swung widely instead of rising every year. Adjusted for a stock split, it paid $2.38 per share in fiscal 2020, $1.35 in 2021, $4.24 in 2023 and $2.72 in 2025. That works out to growth of about 2.7% a year. In fiscal 2025, dividends used 95.4% of earnings and 61.7% of free cash flow (cash left after operating and investment spending). The yield was 2.69% as of October 28, 2026. Share repurchases were small: $47.7 million over fiscal 2021–2025, against $7.8 billion in dividends.
Market downturns have hit the stock unevenly. It dropped 63.2% in the 2008 financial crisis and took about 21 months to recover from its low. It fell 33.9% in the 2020 COVID crash but recovered about 2.4 months later. In the 2022 bear market (a market drop of 20% or more), it dipped 17.4% but ended the market's slide up 1.2%. Single stocks carry more risk than diversified funds.
Questions investors ask
How does PACCAR make money?
Mostly by building trucks. In fiscal 2025, trucks made up 68% of PACCAR's $28.4 billion in net sales and revenues. Aftermarket (replacement) parts made up 24% and financial services 8%. Almost all of its Kenworth, Peterbilt and DAF trucks go to independent dealers. Parts revenue depends on how many PACCAR trucks are on the road and on their age and mileage. The finance arm earns income from loans and leases to trucking companies, owner-operators and dealers.
Does PACCAR raise its dividend every year?
No. PACCAR paid dividends in each fiscal year from 2020 through 2025, but the amount per share has moved up and down. Adjusted for a 1.5-for-1 stock split, dividends per share slipped from $4.24 in fiscal 2023 to $4.17 in 2024, then fell to $2.72 in 2025. Over the five years from fiscal 2020, they grew about 2.7% a year. The dividend yield (yearly dividends divided by the share price) was 2.69% as of October 28, 2026.
What truck brands does PACCAR own?
PACCAR owns Kenworth, Peterbilt and DAF. Kenworth and Peterbilt are its main North American brands, and Kenworth is also marketed in Mexico and Australia. DAF is headquartered in the Netherlands and marketed worldwide, including in Brazil and Australia. PACCAR also uses the TRP name for aftermarket parts and the PACCAR Financial and PacLease names for financing and leasing. In fiscal 2025, it held 29.9% of U.S. and Canadian Class 8 retail truck sales. DAF held 13.5% of Europe's heavy-duty market.
Did PACCAR's earnings fall in 2025?
Yes, sharply. Fiscal 2025 revenue fell 15.5% to $28.4 billion, and net income fell 42.9% to $2.38 billion. Diluted earnings per share dropped to $4.51 from $7.90. Truck sales are cyclical. PACCAR's firm backlog of orders due for delivery within 90 days shrank to $2.6 billion at the end of 2025, from $7.6 billion two years earlier. In the quarter ended September 30, 2026, revenue rose 19% and net income rose 43.6% from a year earlier.
How has PACCAR stock performed over the long run?
Over long periods it has done well, with deep drops along the way. Based on share prices as of October 28, 2026, it returned about 14.2% a year over 10 years and 15.6% a year over five years. Over one year it returned 5.8%. It was down 5.7% for the year to date and 25.7% over the prior three months. Over about 21 years of price history, its worst peak-to-trough fall was 67.1%.