PACCAR Achieves Record Annual Revenues and Net Income
- Record annual revenues and net income in 2023
- 54% increase in net income in the fourth quarter of 2023 compared to the same period in 2022
- Record revenues of $35.13 billion in 2023
- Adjusted net income (non-GAAP)1 of $5.05 billion in 2023
- None.
Insights
The reported financial results by PACCAR, with record annual revenues and net income, are indicative of robust performance and operational efficiency. The increase in net income by 54% in Q4 2023, compared to the same period in 2022, is particularly noteworthy. This surge is reflective of strong demand for the company's trucks, as well as an effective margin management strategy, which is evident from the record Truck, Parts and Other gross margins. The after-tax return on revenues of 13.1% underscores the company's profitability, a key metric for investors assessing the company's financial health.
The declaration of a $3.20 per share extra cash dividend points to confidence in the company's cash flow and a commitment to returning value to shareholders. The total shareholder return of 55% in 2023, inclusive of dividends, is a testament to this. However, the non-recurring charge related to civil litigation in Europe is a factor that requires attention, as it could influence investor sentiment and future earnings projections. The company's investment in capital projects and R&D, totaling $1.11 billion, signals a forward-looking approach to product development and technological advancement, which could sustain long-term growth.
PACCAR's strategic joint venture with industry players like Cummins, Daimler Truck and EVE Energy to manufacture commercial vehicle battery cells in the United States is a significant development. This move aligns with the broader industry's pivot towards electric vehicles (EVs) and positions the company to capitalize on the growing demand for environmentally friendly transportation solutions. The projected 21-gigawatt hours of battery production capacity could enable PACCAR to become a major player in the EV space, potentially capturing market share from competitors. Furthermore, the company's focus on expanding its PACCAR Parts and Financial Services divisions has paid off with record annual revenues and profits, indicating a successful diversification of revenue streams.
Global market forecasts, such as the Class 8 truck industry retail sales, provide valuable context for investors. The estimated range for 2024 suggests a stable demand outlook, which could underpin the company's future performance. Additionally, the record 10.2% market share achieved by DAF Brasil in the Brazil above 16-tonne market marks a significant increase from the previous year, showcasing PACCAR's growing international presence and competitive strength in key emerging markets.
PACCAR's investment in new parts distribution centers (PDCs) and the expansion of its global PDC footprint to 3.3 million square feet is a strategic move to enhance its supply chain capabilities. This expansion is likely to improve parts availability and delivery times, directly contributing to increased vehicle uptime for customers. Efficient supply chain management is critical in the automotive industry and PACCAR's actions could lead to stronger customer loyalty and potentially increased market share. The construction of a new PDC in Massbach, Germany, is particularly relevant, as it will serve a key market and could streamline operations in Europe, leading to cost savings and improved service levels.
Kenworth T680 Truck (Photo: Business Wire)
PACCAR achieved quarterly revenues of
“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. 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,” added Feight.
PACCAR Dividends
PACCAR declared cash dividends of
Business Highlights – 2023
- PACCAR earned its 85th consecutive year of net income.
- PACCAR delivered a record 204,200 vehicles worldwide.
-
PACCAR announced a joint venture with Cummins, Daimler Truck and EVE Energy to manufacture commercial vehicle battery cells in
the United States . - Peterbilt Denton and Kenworth Chillicothe factories each celebrated producing their 750,000th truck.
-
DAF opened a new electric truck assembly plant in Eindhoven,
Netherlands . - The DAF XF truck earned the Green Truck 2023 award and the European Transport Award for Sustainability.
-
PACCAR Parts began construction of a new Parts Distribution Center in Massbach,
Germany . - PACCAR was honored as a 2023 Top Company for Women to Work for in Transportation, by the Women in Trucking Association.
Financial Highlights – Fourth Quarter 2023
Highlights of PACCAR’s financial results during the fourth quarter of 2023 include:
-
Record consolidated revenues of
$9.08 billion -
Record net income of
$1.42 billion -
PACCAR Parts revenue of
$1.61 billion -
PACCAR Parts pretax income of
$432.4 million -
PACCAR Financial Services pretax income of
$113.0 million -
Cash provided by operations of
$1.19 billion
Financial Highlights – Full Year 2023
Highlights of PACCAR’s financial results during 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 -
Stockholders’ equity of
$15.88 billion
Global Truck Markets
Class 8 truck industry retail sales in the
Harald Seidel, DAF president, said, “Customers appreciate the industry-leading fuel efficiency and driver comfort of the new generation of DAF trucks. DAF trucks have a unique competitive advantage in the
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
PACCAR Parts Achieves Record Annual Revenues and Profits
PACCAR Parts achieved quarterly pre-tax income of
PACCAR’s PDCs support more than 2,000 DAF, Kenworth and Peterbilt dealer sales, parts and service locations, and 300 TRP stores. These independent, well-capitalized dealers provide excellent service to customers, complementing the premium quality of DAF, Kenworth and Peterbilt vehicles.
PACCAR has begun construction of a new, 240,000 square-foot PACCAR PDC to be opened in Massbach,
PACCAR Financial Services Achieves Good Annual Results
PACCAR Financial Services (PFS) achieved quarterly pretax income of
PFS has a portfolio of 233,000 trucks and trailers, with total assets of
Capital and R&D Investments in Products, Technologies and Facilities
PACCAR’s consistent long-term profits, strong balance sheet, and focus on quality, technology and innovation have enabled the company to invest
PACCAR Announces Location of Joint Venture Battery Factory
PACCAR, Cummins, Daimler Truck and EVE Energy have selected
PACCAR Exhibits Electric and Autonomous Trucks at CES 2024
PACCAR showcased several advanced products and technologies at the Consumer Electronics Show in
“PACCAR’s industry-leading battery electric and hydrogen fuel cell electric vehicles help customers operate with reduced emissions and outstanding efficiency,” said Mike Dozier, PACCAR executive vice president.
PACCAR Recognized for Diversity Leadership
PACCAR was honored in 2023 as a Top Company for Women to Work for in Transportation by the Women in Trucking Association. Paulo Bolgar, PACCAR vice president of human resources, said, “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. PACCAR hires, develops and promotes talented people and ensures that our employees represent the diversity present in the global community.”
PACCAR is a global technology leader in the design, manufacture and customer support of high-quality light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt and DAF nameplates. PACCAR also designs and manufactures advanced powertrains, provides financial services and information technology, and distributes truck parts related to its principal business.
PACCAR will hold a conference call with securities analysts to discuss fourth quarter earnings on January 23, 2024, at 9:00 a.m. Pacific time. Interested parties may listen to the call by selecting “Q4 Earnings Webcast” at PACCAR’s homepage. The webcast will be available on a recorded basis through January 30, 2024. PACCAR shares are traded on the Nasdaq Stock Market, symbol PCAR. Its homepage is www.paccar.com.
This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of factors. More information about these factors is contained in PACCAR’s filings with the Securities and Exchange Commission.
1 See attached supplementary information on non-GAAP financial measures.
| PACCAR Inc | |||||||||||||
| SUMMARY STATEMENTS OF OPERATIONS | |||||||||||||
| (in millions except per share amounts) | |||||||||||||
| Three Months Ended | Year Ended | ||||||||||||
| December 31 | December 31 | ||||||||||||
2023 |
2022 |
|
2023 |
2022 |
|||||||||
| Truck, Parts and Other: | |||||||||||||
| Net sales and revenues | $ |
8,591.8 |
|
$ |
7,734.7 |
|
$ |
33,315.5 |
$ |
27,314.3 |
|
||
| Cost of sales and revenues |
|
6,922.7 |
|
|
6,505.2 |
|
|
26,894.2 |
|
23,291.0 |
|
||
| Research and development |
|
108.9 |
|
|
99.9 |
|
|
410.9 |
|
341.2 |
|
||
| Selling, general and administrative |
|
156.0 |
|
|
161.8 |
|
|
604.3 |
|
592.4 |
|
||
| Interest and other (income) expense, net |
|
(24.4 |
) |
|
(19.7 |
) |
|
520.4 |
(1) |
|
(109.1 |
) |
|
| Truck, Parts and Other Income Before Income Taxes |
|
1,428.6 |
|
|
987.5 |
|
|
4,885.7 |
|
3,198.8 |
|
||
| Financial Services: | |||||||||||||
| Revenues |
|
484.8 |
|
|
394.8 |
|
|
1,811.9 |
|
1,505.4 |
|
||
| Interest and other |
|
316.5 |
|
|
208.8 |
|
|
1,091.3 |
|
777.1 |
|
||
| Selling, general and administrative |
|
38.1 |
|
|
33.0 |
|
|
149.0 |
|
133.9 |
|
||
| Provision for losses on receivables |
|
17.2 |
|
|
1.7 |
|
|
31.3 |
|
5.5 |
|
||
| Financial Services Income Before Income Taxes |
|
113.0 |
|
|
151.3 |
|
|
540.3 |
|
588.9 |
|
||
| Investment income |
|
99.7 |
|
|
36.7 |
|
|
292.2 |
|
61.0 |
|
||
| Total Income Before Income Taxes |
|
1,641.3 |
|
|
1,175.5 |
|
|
5,718.2 |
|
3,848.7 |
|
||
| Income taxes |
|
224.0 |
|
|
254.2 |
|
|
1,117.4 |
|
837.1 |
|
||
| Net Income | $ |
1,417.3 |
|
$ |
921.3 |
|
$ |
4,600.8 |
$ |
3,011.6 |
|
||
| Net Income Per Share: | |||||||||||||
| Basic | $ |
2.70 |
|
$ |
1.76 |
|
$ |
8.78 |
$ |
5.76 |
|
||
| Diluted | $ |
2.70 |
|
$ |
1.76 |
|
$ |
8.76 |
$ |
5.75 |
|
||
| Weighted Average Shares Outstanding: | |||||||||||||
| Basic |
|
524.3 |
|
|
522.9 |
|
|
523.9 |
|
522.6 |
|
||
| Diluted |
|
525.6 |
|
|
523.8 |
|
|
525.0 |
|
523.4 |
|
||
| Dividends declared per share | $ |
3.47 |
|
$ |
2.12 |
|
$ |
4.24 |
$ |
2.80 |
|
||
| (1) Includes a |
|||||||||||||
| PACCAR Inc | ||||||
| CONDENSED BALANCE SHEETS | ||||||
| (in millions) | ||||||
December 31 |
|
December 31 |
||||
2023 |
|
2022 |
||||
| ASSETS | ||||||
| Truck, Parts and Other: | ||||||
| Cash and marketable securities | $ |
8,659.3 |
$ |
6,158.9 |
||
| Trade and other receivables, net |
|
2,198.1 |
|
1,919.8 |
||
| Inventories, net |
|
2,576.7 |
|
2,198.8 |
||
| Property, plant and equipment, net |
|
3,780.1 |
|
3,468.4 |
||
| Equipment on operating leases and other, net |
|
2,645.3 |
|
2,350.0 |
||
| Financial Services Assets |
|
20,963.9 |
|
17,179.6 |
||
$ |
40,823.4 |
$ |
33,275.5 |
|||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Truck, Parts and Other: | ||||||
| Accounts payable, deferred revenues and other | $ |
9,015.8 |
$ |
7,185.6 |
||
| Financial Services Liabilities |
|
15,928.8 |
|
12,922.8 |
||
| STOCKHOLDERS' EQUITY |
|
15,878.8 |
|
13,167.1 |
||
$ |
40,823.4 |
$ |
33,275.5 |
|||
| Common Shares Outstanding |
|
523.3 |
|
522.0 |
||
PACCAR Inc |
||||||||
CONDENSED CASH FLOW STATEMENTS |
||||||||
(in millions) |
||||||||
|
|
|
|
|
||||
|
|
2023 |
|
|
2022 |
|
||
| OPERATING ACTIVITIES: | ||||||||
| Net income | $ |
4,600.8 |
|
$ |
3,011.6 |
|
||
| Depreciation and amortization: | ||||||||
| Property, plant and equipment |
|
415.0 |
|
|
332.2 |
|
||
| Equipment on operating leases and other |
|
508.9 |
|
|
458.0 |
|
||
| Net change in trade receivables, inventory and payables |
|
(408.1 |
) |
|
125.9 |
|
||
| Net increase in wholesale receivables on new trucks |
|
(1,266.5 |
) |
|
(935.4 |
) |
||
| All other operating activities, net |
|
339.9 |
|
|
34.7 |
|
||
| Net Cash Provided by Operating Activities |
|
4,190.0 |
|
|
3,027.0 |
|
||
| INVESTING ACTIVITIES: | ||||||||
| Payments for property, plant and equipment |
|
(695.0 |
) |
|
(525.0 |
) |
||
| Acquisitions of equipment for operating leases |
|
(567.5 |
) |
|
(865.5 |
) |
||
| Net increase in financial services receivables |
|
(2,076.8 |
) |
|
(1,186.6 |
) |
||
| Net increase in marketable debt securities |
|
(163.6 |
) |
|
(170.3 |
) |
||
| Proceeds from asset disposals and other |
|
632.0 |
|
|
714.4 |
|
||
| Net Cash Used in Investing Activities |
|
(2,870.9 |
) |
|
(2,033.0 |
) |
||
| FINANCING ACTIVITIES: | ||||||||
| Payments of cash dividends |
|
(1,518.6 |
) |
|
(1,004.7 |
) |
||
| Purchases of treasury stock |
|
(3.5 |
) |
|
(2.1 |
) |
||
| Proceeds from stock compensation transactions |
|
51.5 |
|
|
35.7 |
|
||
| Net increase in debt and other |
|
2,572.8 |
|
|
1,276.0 |
|
||
| Net Cash Provided by Financing Activities |
|
1,102.2 |
|
|
304.9 |
|
||
| Effect of exchange rate changes on cash |
|
69.5 |
|
|
(36.3 |
) |
||
| Net Increase in Cash and Cash Equivalents |
|
2,490.8 |
|
|
1,262.6 |
|
||
| Cash and cash equivalents at beginning of period |
|
4,690.9 |
|
|
3,428.3 |
|
||
| Cash and cash equivalents at end of period | $ |
7,181.7 |
|
$ |
4,690.9 |
|
||
| PACCAR Inc | ||||||||||||
| SEGMENT AND OTHER INFORMATION | ||||||||||||
| (in millions) | ||||||||||||
Three Months Ended |
|
Year Ended |
||||||||||
December 31 |
|
December 31 |
||||||||||
2023 |
2022 |
|
2023 |
|
2022 |
|||||||
| Sales and Revenues: | ||||||||||||
| Truck | $ |
6,968.7 |
$ |
6,254.5 |
$ |
26,846.4 |
|
$ |
21,486.2 |
|||
| Parts |
|
1,610.3 |
|
1,469.2 |
|
6,414.4 |
|
|
5,764.3 |
|||
| Financial Services |
|
484.8 |
|
394.8 |
|
1,811.9 |
|
|
1,505.4 |
|||
| Other |
|
12.8 |
|
11.0 |
|
54.7 |
|
|
63.8 |
|||
$ |
9,076.6 |
$ |
8,129.5 |
$ |
35,127.4 |
|
$ |
28,819.7 |
||||
| Pretax Profit: | ||||||||||||
| Truck | $ |
996.4 |
$ |
624.0 |
$ |
3,799.9 |
|
$ |
1,753.3 |
|||
| Parts |
|
432.4 |
|
379.5 |
|
1,702.6 |
|
|
1,446.6 |
|||
| Financial Services |
|
113.0 |
|
151.3 |
|
540.3 |
|
|
588.9 |
|||
| Investment Income and Other |
|
99.5 |
|
20.7 |
|
(324.6 |
) |
(1) |
|
59.9 |
||
$ |
1,641.3 |
$ |
1,175.5 |
$ |
5,718.2 |
|
$ |
3,848.7 |
||||
| GEOGRAPHIC REVENUE | ||||||||||||
| (in millions) | ||||||||||||
Three Months Ended |
|
Year Ended |
||||||||||
December 31 |
|
December 31 |
||||||||||
2023 |
2022 |
|
2023 |
|
2022 |
|||||||
$ |
5,508.5 |
$ |
4,790.2 |
$ |
21,222.1 |
|
$ |
17,395.7 |
||||
|
2,202.2 |
|
2,213.4 |
|
8,741.4 |
|
|
7,486.5 |
||||
| Other |
|
1,365.9 |
|
1,125.9 |
|
5,163.9 |
|
|
3,937.5 |
|||
$ |
9,076.6 |
$ |
8,129.5 |
$ |
35,127.4 |
|
$ |
28,819.7 |
||||
| NEW TRUCK DELIVERIES | ||||||||||||
Three Months Ended |
|
Year Ended |
||||||||||
December 31 |
|
December 31 |
||||||||||
2023 |
2022 |
|
2023 |
|
2022 |
|||||||
|
28,100 |
|
26,100 |
|
109,100 |
|
|
95,600 |
||||
|
14,900 |
|
17,600 |
|
63,200 |
|
|
62,400 |
||||
| Other |
|
8,100 |
|
7,900 |
|
31,900 |
|
|
27,900 |
|||
|
51,100 |
|
51,600 |
|
204,200 |
|
|
185,900 |
||||
| (1) Includes a |
||||||||||||
| PACCAR Inc |
| SUPPLEMENTARY INFORMATION |
| RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES |
This earnings release includes “adjusted net income (non-GAAP)” and “adjusted net income per diluted share (non-GAAP)”, which are financial measures that are not in accordance with
Adjustment for the EC-related claims relates to a pre-tax charge of
Management utilizes these non-GAAP measures to evaluate the Company’s performance and believes these measures allow investors and management to evaluate operating trends by excluding a significant non-recurring charge that is not representative of underlying operating trends.
Reconciliations from the most directly comparable GAAP measures to adjusted net income (non-GAAP) and adjusted net income per diluted share (non-GAAP) are as follows:
Year Ended |
|||
| ($ in millions, except per share amounts) | December 31 |
||
| Net income | $ | 4,600.8 |
|
| EC-related claims, net of taxes | 446.4 |
||
| Adjusted net income (non-GAAP) | $ | 5,047.2 |
|
| Per diluted share: | |||
| Net income | $ | 8.76 |
|
| EC-related claims, net of taxes | .85 |
||
| Adjusted net income (non-GAAP) | $ | 9.61 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240123849726/en/
Ken Hastings
(425) 468-7530
ken.hastings@paccar.com
Source: PACCAR Inc
FAQ
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What were PACCAR's annual revenues and net income in 2023?
What was PACCAR's adjusted net income (non-GAAP)1 in 2023?
