Research · Sep 3, 2026
[PCAR] PACCAR Thesis 2026: Truck Cycle Troughs as Company Reaches Zero Net Debt
PACCAR FY25 (Dec 31, 2025) at $28.4B revenue (-15.5% Class 8 cycle trough). OpInc $2.96B (-39%); Net income $2.38B (-43%); Diluted EPS $4.51. FCF $3.03B (+5%). Div $2.27B held. Total debt $0 (vs $15.9B FY24, classification reset). Trucks ~80% (Kenworth, Peterbilt, DAF); Parts ~12%; Financial Services ~8%. Class 8 production ~250-260K (vs ~340K peak FY23). Citi $125→$130; Evercore $119→$143 (Street-high); Freedom Broker downgrade Buy→Hold March 26.