Investment Thesis
PACCAR demonstrates solid fundamental profitability with 8.4% net margins and strong free cash flow generation of $3.7B, but significant headwinds are evident from 15.5% revenue decline and 42.9% EPS erosion year-over-year. The company maintains a fortress balance sheet with zero leverage and strong interest coverage of 15.7x, though deteriorating top-line performance and operational challenges in the motor vehicle sector warrant cautious positioning.
PCAR Strengths
- Robust free cash flow generation at $3.7B with 12.9% FCF margin demonstrates cash conversion efficiency
- Conservative capital structure with zero debt-to-equity ratio and $3.2B cash position provides financial flexibility
- Maintained 8.4% net margin and 10.6% operating margin despite 15.5% revenue contraction shows operational resilience
- Strong interest coverage ratio of 15.7x indicates excellent debt servicing capability
PCAR Risks
- Sharp 15.5% revenue decline year-over-year signals significant demand weakness in motor vehicle manufacturing sector
- Severe 42.9% diluted EPS deterioration outpaces revenue decline, indicating margin compression and operational challenges
- Capital allocation concerns with $743M capex against $3.7B FCF suggests potential underinvestment in future competitiveness
- Missing gross margin data and incomplete liabilities disclosure limits visibility into cost structure and full leverage assessment
Key Metrics to Watch
- Quarterly revenue trends and order backlog recovery indicators
- Gross margin sustainability and manufacturing utilization rates
- Free cash flow consistency and capital expenditure intensity relative to growth investments
PCAR Financial Metrics
PCAR Profitability Ratios
PCAR Balance Sheet & Liquidity
PCAR 5-Year Financial Trend
5-Year Trend Summary: PACCAR INC's revenue has grown significantly by 37% over the 5-year period, indicating strong business expansion. The most recent EPS of $8.76 reflects profitable operations.
PCAR Growth Metrics (YoY)
PCAR Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $6.7B | $590.0M | $1.12 |
| Q2 2025 | $7.5B | $723.8M | $1.37 |
| Q1 2025 | $7.4B | $505.1M | $0.96 |
| Q3 2024 | $8.2B | $972.1M | $1.85 |
| Q2 2024 | $8.8B | $1.1B | $2.13 |
| Q1 2024 | $8.5B | $733.9M | $1.40 |
| Q3 2023 | $7.1B | $769.4M | $1.47 |
| Q2 2023 | $7.2B | $720.4M | $1.37 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
PCAR Capital Allocation
PCAR SEC Filings
Access official SEC EDGAR filings for PACCAR INC (CIK: 0000075362)