Truck maker Paccar Inc. reported record fourth-quarter revenue and net profits, racing past analyst estimates and posting its 85th consecutive year of reporting net profit.

The Bellevue, Washington-based parent of Kenworth, Peterbilt and DAF Trucks reported record consolidated revenues of $9.08 billion and record net income of $1.42 billion, or $2.70 per fully diluted share, in the October-December period.

Paccar keeps up beatdown of analysts

A consensus of analysts by investor site Seeking Alpha predicted $2.21 per share on revenues of $8.3 billion. Over the last two years, Paccar has beaten EPS estimates 88% of the time and has beaten revenue estimates 100% of the time.

“Paccar is manufacturing the most impressive new truck range in its history,” CEO Preston Feight said in a news release. “These trucks deliver premium quality, excellent fuel efficiency and low operating costs. Paccar is investing in the next generation of trucks that feature clean diesel, battery-electric, hydrogen combustion or fuel cell powertrains.”

Strong sales and profits in its parts business again helped results. Paccar Parts generated $1.61 billion in revenue and pretax profit of $432.4 million. Financial services pretax income of $113 million trailed the year-ago pretax profit of $151.3 million. Fourth quarter revenues of $484.8 million eclipsed the $394.8 million reported in Q4 2022.

Host of records in 2023

For the full year, Paccar reported a host of records:

Consolidated revenues of $35.13 billion with a 13.1% after-tax return.

Net income of $4.60 billion.

Parts revenue of $6.41 billion with pretax income of $1.70 billion.

Financial Services assets of $20.96 billion, including a portfolio of 233,000 trucks and trailers.

Record cash dividends of $4.24 per share, including a one-time special $3.20 dividend paid Jan. 4 for total shareholder return of 55%. 

2023 results overwhelm year ago despite one-time charge

The company earned $4.60 billion, or $8.76, in 2023, including a $446.4 million after-tax, non-recurring charge related to settling a 2016 price-fixing case in Europe. That compared to $3.01 billion, or $5.75, in 2022. Excluding the charge, Paccar’s adjusted net income was $5.05 billion, or $9.61, in 2023.

Paccar invested $1.11 billion in capital projects and research and development during the year. That included participating in a $2 billion to $3 billion battery-making joint venture with Cummins Inc. and rival Daimler Truck. Working with China-based EV Energy, a new plant in northern Mississippi will produce 21 gigawatt hours of batteries, creating 2,000 manufacturing jobs.

Related articles:

Trucking giants choose Mississippi for $2B battery joint venture

Paccar posts another blowout quarter

Paccar takes $600M charge related to European price fixing

Click for more FreightWaves articles by Alan Adler.

The post Paccar Q4 record sales, profit records overwhelm analyst estimates appeared first on FreightWaves.

Similar Posts

Leave a Reply