PACCAR IncPCAR
NasdaqGS•Industrials•Farm & Heavy Construction Machinery
PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Canada, Australia, Mexico, Europe, Central and South America, and internationally. It operates through three segments: Truck, Parts, and Financial Services. The Truck segment designs, manufactures, and distributes trucks for the over-the-road and off-highway hauling of commercial and consumer goods; and diesel engine products. It sells its trucks through a network of independent dealers under the Kenworth, Peterbilt, and DAF nameplates. The Parts segment distributes aftermarket parts for trucks and related commercial vehicles. The Financial Services segment conducts full-service leasing operations under the PacLease trade name, as well as provides finance and leasing products and services to customers and dealers. This segment offers equipment financing and administrative support services for its franchisees; retail loan and leasing services for small, medium, and large commercial trucking companies, as well as independent owners/operators and other businesses; and truck inventory financing services to independent dealers. In addition, this segment offers loans and leases directly to customers for the acquisition of trucks and related equipment; and operates its own full-service lease outlets. The company manufactures and markets industrial winches under the Braden, Carco, and Gearmatic nameplates. PACCAR Inc was founded in 1905 and is headquartered in Bellevue, Washington.
PACCAR Inc. (PCAR) reported trailing twelve months revenue of $27.24B as of March 2026, a 15.8% decline year-over-year. Quarterly revenue reached $6.23B, reflecting a contraction in sales.
PACCAR Inc. generated $2.48B in TTM net income, with quarterly EBITDA of $559.10M. The operating margin contracted from 11.9% to 9.0%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (9.0%) and net margin (9.7%) indicates tight cost control with minimal non-operating drag. Net margin has improved from 6.8% a year ago, signaling stronger bottom-line efficiency.
PCAR trades at a P/E of 24.0x (in line with broad market averages) and a P/S of 2.2x. The price-to-book ratio of 3.0x reflects a moderate premium to book value.
The company generated $824.60M in free cash flow over the trailing twelve months, a 41.1% increase year-over-year, indicating cash generation ability. The balance sheet shows $43.55B in total assets with $10.19B in long-term debt against $19.76B in stockholders equity for a debt-to-equity ratio of 0.5. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are positive at ~11.5% on average, but show some variability — pricing power may be sensitive to market conditions.
ROE averages 18.9% but has fluctuated — the competitive advantage may be cyclical or emerging.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
Revenue has been flat or declining over recent quarters, which may indicate eroding demand or competitive pressure.
Data-driven red flags and warnings across 21 quarters
Operating margins dropped 28.1% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.
FCF covers net income by 1.1x on average — earnings are well-supported by cash generation.
D/E ratio is 0.5 — conservative capital structure with low financial risk.
TTM revenue has contracted 14.6% — significant decline indicating deteriorating demand.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Share count is stable — no significant dilution or buyback activity.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation