BELLEVUE, Wash. — PACCAR achieved record-breaking annual revenues and net income for 2023, said company CEO Preston Feight in a Jan. 23, 2024, release. PACCAR manufactures Kenworth, Peterbilt and DAF tractors.
“PACCAR’s excellent results reflect record deliveries of premium quality DAF, Peterbilt and Kenworth trucks worldwide, record truck, parts and other gross margins and strong financial services performance,” Feight said. “I am very proud of our employees and dealers who delivered outstanding trucks and transportation solutions to our customers.”
According to the release, PACCAR’s revenues for the fourth quarter of 2023 were $9.08 billion, up from $8.13 billion reported in the same period for 2022. In addition, the company earned $1.42 billion ($2.70 per diluted share) in the fourth quarter of 2023 — 54% higher than the $921.3 million ($1.76 per diluted share) earned in the fourth quarter of 2022.
The year-end totals for 2023 showed record revenues of $35.13 billion for the year, compared to revenues of $28.82 billion in 2022. The company earned $4.60 billion ($8.76 per diluted share) in 2023, including a $446.4 million after-tax, non-recurring charge related to civil litigation in Europe, compared to $3.01 billion ($5.75 per diluted share) earned in 2022. Excluding the non-recurring charge, the company earned adjusted net income (non-GAAP)1 of $5.05 billion ($9.61 per diluted share) in 2023.
“PACCAR is manufacturing the most impressive new truck range in its history. These trucks deliver premium quality, excellent fuel efficiency and low operating costs to our customers,” Feight said. “PACCAR is investing in the next generation of Kenworth, Peterbilt and DAF trucks that feature clean diesel, battery-electric, hydrogen combustion or fuel cell powertrains.
“PACCAR Parts and PACCAR Financial Services contributed significantly to the success of PACCAR and its customers in 2023” he added.
The company declared cash dividends of $4.24 per share during 2023. This included a $3.20 per share extra cash dividend paid Jan. 4, 2024.
“PACCAR has generated excellent shareholder returns and annual net income due to its industry-leading premium quality vehicles, and strong growth of its aftermarket parts sales,” said Mark Pigott, executive chairman. PACCAR delivered a total shareholder return of 55%, including regular quarterly and extra cash dividends paid, in 2023.
The company’s financial highlights for the 12-month period ending Dec. 31, 2023, include:
- Record consolidated revenues of $35.13 billion.
- Record net income of $4.60 billion.
- Record after-tax return on revenues of 13.1%.
- Record PACCAR Parts revenue of $6.41 billion.
- Record PACCAR Parts pretax income of $1.70 billion.
- Record Financial Services assets of $20.96 billion.
- Financial Services pretax income of $540.3 million.
- Cash provided by operations of $4.19 billion.
- Record dividends declared of $2.23 billion.
- Medium-term note issuances of $2.91 billion.
- PACCAR invested $1.11 billion in capital projects and research and development.
- Stockholders’ equity of $15.88 billion.
Global Truck Markets
PACCAR’s Class 8 truck industry retail sales in the U.S. and Canada were 297,000 units in 2023 and are estimated to be in a range of 260,000-300,000 trucks in 2024.
“Infrastructure spending and the replacement of older trucks are driving demand for Kenworth and Peterbilt trucks,” said Darrin Siver, executive vice president PACCAR. “Peterbilt began production this month of the new Peterbilt Model 589, which integrates an iconic design with advanced technologies to deliver high performance and maximum uptime for customers.”
Both the Peterbilt factory in Denton, Texas, and the Kenworth factory in Chillicothe, celebrated the production of their 750,000th truck, and the three PACCAR brands — Peterbilt, Kenworth and DAF — delivered 204,200 vehicles worldwide, setting another record, according to the company’s Jan. 23 statement.
On the other side of the Atlantic, DAF opened a new electric truck assembly plant in Eindhoven, Netherlands, and the DAF XF truck earned the Green Truck 2023 award and the European Transport Award for Sustainability.
“Customers appreciate the industry-leading fuel efficiency and driver comfort of the new generation of DAF trucks,” said Harald Seidel, president of DAF. “DAF trucks have a unique competitive advantage in the Europe truck market due to an innovative, aerodynamic design with a spacious, luxurious cab interior.”
European above 16-tonne truck industry registrations were 343,000 trucks in 2023 and are estimated to be in the range of 260,000-300,000 trucks in 2024. The South American above 16-tonne truck market was 110,000 vehicles in 2023 and is estimated to be in the range of 105,000-115,000 trucks in 2024. DAF Brasil achieved a record 10.2% market share in the Brasil above 16-tonne market in 2023, compared to 6.9% in 2022.
PACCAR Parts and PACCAR Financial Services
During the last quarter of 2023, PACCAR Parts achieved quarterly pre-tax income of $432.4 million, 14% higher than in the fourth quarter of 2022. Fourth quarter 2023 revenues were $1.61 billion, compared to $1.47 billion reported in the same time frame of 2022.
The parts division achieved record annual pre-tax income of $1.70 billion for the entire year, up from $1.45 billion in 2022. Annual revenues were a record $6.41 billion, compared to $5.76 billion in 2022.
“PACCAR Parts provides strong profitability through all phases of the business cycle,” said Laura Bloch, vice president of PACCAR and general manager of PACCAR Parts. “PACCAR Parts’ excellent long-term growth reflects the benefits of investments that increase vehicle uptime and convenience for customers, such as new parts distribution centers (PDCs), and a growing population of connected PACCAR vehicles with PACCAR MX Engines.”
PACCAR Financial Services (PFS) achieved quarterly pretax income of $113.0 million in 2023, compared to $151.3 million earned in the fourth quarter of 2022. Fourth quarter 2023 revenues were $484.8 million compared to $394.8 million in the same quarter of 2022. PFS earned $540.3 million of pretax profit in 2023, compared to $588.9 million earned in 2022. PFS revenues were $1.81 billion in 2023 compared to $1.51 billion achieved in 2022.
“PFS achieved good annual results due to its growing portfolio and strong portfolio quality. The used truck market normalized after two years of high volume and prices,” said Todd Hubbard, vice president of PACCAR. “PFS is a leader in the market with its superior Kenworth, Peterbilt and DAF products, innovative technologies that provide seamless credit application and loan servicing processes, and its support of customers in all phases of the business cycle.”
PFS has a portfolio of 233,000 trucks and trailers, with total assets of $20.96 billion. PacLease, a major full-service truck leasing company in North America and Europe with a fleet of over 44,000 vehicles, is included in this segment.
“PACCAR’s strong balance sheet, complemented by its A+/A1 credit ratings, enables PFS to offer competitive retail financing to Kenworth, Peterbilt and DAF dealers and customers in 26 countries on four continents,” said Craig Gryniewicz, president of PACCAR Financial Corp. “PACCAR Financial Services has excellent access to the debt markets, issuing $2.91 billion in medium-term notes during 2023.”
Other Highlights of 2023
PACCAR announced last year that the company, along with Cummins, Daimler Truck and EVE Energy have entered a joint venture — advanced battery cell manufacturing. The group selected Marshall County, Mississippi, as the site of the factory which will produce 21-gigawatt hours (GWh) of batteries and is estimated to create more than 2,000 U.S. manufacturing jobs. The regulatory approval process for the battery factory is underway.
“PACCAR is committed to producing electric batteries to benefit customers’ operational and environmental goals,” said John Rich, senior vice president and chief technology officer for PACCAR. “PACCAR has operated a state-of-the-art diesel engine factory in Columbus, Mississippi, for many years, and is pleased to make this additional investment with the planned joint venture.”
In addition, PACCAR was honored in 2023 as a Top Company for Women to Work for in Transportation by the Women In Trucking Association.
“PACCAR recruits and develops a diverse workforce and supports their careers with resources such as the PACCAR Women’s Association, Diversity Councils and training designed to develop leadership opportunities,” said Paulo Bolgar, vice president of human resources for PACCAR. “PACCAR hires, develops and promotes talented people and ensures that our employees represent the diversity present in the global community.”
Born in Pine Bluff, Arkansas, and raised in East Texas, John Worthen returned to his home state to attend college in 1998 and decided to make his life in The Natural State. Worthen is a 20-year veteran of the journalism industry and has covered just about every topic there is. He has a passion for writing and telling stories. He has worked as a beat reporter and bureau chief for a statewide newspaper and as managing editor of a regional newspaper in Arkansas. Additionally, Worthen has been a prolific freelance journalist for two decades, and has been published in several travel magazines and on travel websites.
