For the quarterly period ended June 30, 2023 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File No. 001-14817 PACCAR Inc (Exact name of registrant as specified in its charter) Delaware 91-0351110 (State or other jurisdiction of incorporation or or ...

Financial Data and Key Metrics Changes - PACCAR achieved record revenues of $8.9 billion, a 24% increase year-over-year, and net income rose 70% to $1.22 billion [3][4] - Gross margins for trucks, parts, and other products improved to 18.8%, up from 14.4% in the same period last year [16][13] - PACCAR Parts revenues increased by over 11% to $1.6 billion, with pretax profits rising 19% to $419 million [10][14] Business Line Data and Key Metrics Changes - PACCAR Parts achieved strong gross margins of 31.6% in the second quarter, with annual sales growing by 73% and profits increasing by 136% over the last five years [15][14] - PACCAR Financial Services reported pretax income of $145 million, benefiting from a high-quality portfolio and strong used truck results [20][11] Market Data and Key Metrics Changes - The Class 8 truck market in the US and Canada is estimated to be between 290,000 to 320,000 trucks, while the European truck market is projected at 300,000 to 330,000 units [17] - South America saw PACCAR's market share reach a record 9.2% in the first half of the year, indicating strong growth potential in the region [5] Company Strategy and Development Direction - PACCAR is focusing on expanding its strategic partnership with Toyota to develop zero-emission hydrogen fuel cell trucks, positioning itself for future market demands [11][4] - The company has invested $7.5 billion in new facilities and technologies over the past decade, enhancing its product lineup and operational efficiency [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the healthy market demand and strong customer conversations, indicating a robust outlook for 2024 [26][29] - The company anticipates continued strong performance in the truck markets, despite some supply chain constraints affecting production [18][83] Other Important Information - PACCAR's after-tax return on invested capital improved to 35% in the first half of the year, up from 22% in the same period last year [22] - The company expects capital expenditures to be between $625 million to $675 million and R&D expenses to be between $400 million to $430 million for the year [22] Q&A Session Summary Question: Insights on 2024 outlook and order visibility - Management noted that being full for 2023 is advantageous, with healthy market conditions and strong customer discussions for 2024 orders [26][29] Question: Expectations for fourth quarter deliveries - Management indicated that while Q4 may see some seasonal impacts, they expect a strong second half overall due to a full backlog [31] Question: Price realization for trucks and parts - Truck pricing increased by 15%, while parts pricing rose by around 13%, with cost increases being managed effectively [37][38] Question: Impact of raw material costs on pricing - Management believes they can maintain pricing discipline despite fluctuations in raw material costs, supported by strong product performance [46][49] Question: Market share growth and future opportunities - Management highlighted strong market share growth in South America and ongoing opportunities in North America and Europe [73][74] Question: Customer demand for hydrogen fuel cell trucks - There is significant interest from customers regarding hydrogen fuel cell technology, with ongoing discussions about various clean energy options [98][124] Question: Used truck pricing trends - Used truck prices have moderated but remain historically strong, with PACCAR's finance company successfully selling used trucks at premium prices [149]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2023 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Delaware 91-0351110 (State or other jurisdiction of incorporation or organization) 777 - 106th Ave. N.E., Bellevue, WA 98004 (Address of principal executive offices) ...

PACCAR Inc (NASDAQ:PCAR) Q1 2023 Earnings Conference Call April 25, 2023 11:00 AM ET Company Participants Ken Hastings - Director of IR Preston Feight - CEO Harrie Schippers - President and CFO Michael Barkley - SVP and Controller Brice Poplawski - New Vice President and Controller Conference Call Participants Tami Zakaria - JPMorgan Dillon Cumming - Morgan Stanley Chad Dillard - Bernstein Rob Wertheimer - Melius Research Steve Volkmann - Jefferies David Raso - Evercore ISI Jamie Cook - Credit Suisse Steven ...

Financial Performance - PACCAR achieved an adjusted net income of $1180 million in the first quarter of 2023[90, 101], compared to $601 million in the first quarter of 2022[90]. - PACCAR Parts achieved record revenues of $1.6 billion in the first quarter of 2023[101, 233], a 17% increase[233], and a record pretax profit of $439 million[101, 233], a 29% increase[233]. - PACCAR Financial Services' total assets reached $17.2 billion as of December 31, 2022[82, 140]. - PACCAR's average return on invested capital (ROIC) over the last five years was 22%[4]. - PACCAR's net income per truck was $16,200 in 2022[158]. Market and Production - PACCAR produced 185,900 trucks in 2022[150]. - PACCAR's sales totaled $6.4 billion in the first quarter of 2023, up 37% compared to the previous year[229]. - PACCAR delivered 51,100 trucks in the first quarter of 2023[90, 101, 221], compared to 43,000 units in the same period last year[90, 221]. Strategy and Investments - PACCAR has invested $7.3 billion in capital projects, new products, and technologies in the last decade ended 2022[25]. - PACCAR Parts has achieved a sales CAGR of 9% and a profit CAGR of 13% over the last 20 years[64]. - PACCAR is targeting 10% market share for Kenworth and DAF products in South America[93].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2022 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ____ to ____. Commission File Number 001-14817 PACCAR Inc (Exact name of Registrant as specified in its charter) Delaware 91-0351110 (State or other jurisdiction of incorpora ...

PACCAR, Inc. (NASDAQ:PCAR) Q4 2022 Earnings Conference Call January 24, 2023 ET Company Participants Ken Hastings - Director, IR Preston Feight - Chief Executive Officer & Director Harrie Schippers - President & Chief Financial Officer Conference Call Participants David Raso - Evercore Steven Fisher - UBS Dillon Cumming - Morgan Stanley Tami Zakaria - JPMorgan Chad Dillard - Bernstein Rob Wertheimer - Melius Research Jamie Cook - Credit Suisse Nicole DeBlase - Deutsche Bank Matt Elkott - Cowen and Company J ...

Financial Performance - Worldwide net sales and revenues increased to $20.69 billion in 2022 from $16.84 billion in 2021, primarily due to higher truck and parts revenues [135]. - Net income for 2022 was $2.09 billion ($5.99 per diluted share), compared to $1.35 billion ($3.87 per diluted share) in 2021, marking a 55% increase [135]. - Truck segment net sales and revenues increased to $5,198.2 million in Q3 2022 from $3,452.6 million in Q3 2021, reflecting a 50.5% increase [150]. - Parts segment net sales and revenues rose to $1,471.5 million in Q3 2022 from $1,260.2 million in Q3 2021, marking a 16.8% increase [156]. - For the first nine months of 2022, Truck segment net sales reached $15,231.7 million, up from $11,837.8 million in the same period of 2021, a 28.9% increase [151]. Truck and Parts Sales - Truck revenues rose to $15.23 billion in 2022, a 29% increase from $11.84 billion in 2021, driven by higher truck deliveries and price realization [135]. - Parts sales increased to $4.30 billion in 2022, reflecting a 18% rise from $3.63 billion in 2021 due to higher demand and price realization [135]. - Average truck sales prices contributed an increase of $515.5 million to sales in Q3 2022, primarily due to higher price realization globally [150]. - Average aftermarket parts sales prices increased sales by $159.9 million in Q3 2022, driven by higher price realization in North America and Europe [158]. Market Outlook - Truck industry heavy-duty retail sales in the U.S. and Canada are projected to be between 260,000 to 300,000 units in 2023, compared to 265,000 to 285,000 units in 2022 [137]. - PACCAR Parts sales are expected to increase by 5-8% in 2023 compared to 2022 levels, following a 14-16% increase in 2022 [139]. Investments and Expenses - Capital investments are projected to be between $525 to $575 million in 2023, up from an expected $475 to $500 million in 2022 [141]. - Research and development expenses are expected to be between $350 to $400 million in 2023, compared to $330 to $340 million in 2022 [141]. - The company anticipates increasing investments in clean diesel and electric powertrain technologies, autonomous systems, and next-generation manufacturing capabilities [201]. - Over the past decade, the company has invested $7.22 billion in capital projects and R&D, enhancing operational capacity and efficiency [200]. Operational Metrics - Truck segment gross margin improved to 10.6% in Q3 2022 compared to 5.8% in Q3 2021, driven by higher sales volume and improved pricing [153]. - Parts gross margin increased to 30.4% in Q3 2022 from 28.4% in Q3 2021, attributed to higher sales volume and pricing [158]. - Truck SG&A expenses decreased to $60.7 million in Q3 2022 from $66.4 million in Q3 2021, reflecting a reduction in sales and marketing costs [152]. - Parts SG&A expenses decreased to $52.9 million in Q3 2022 from $53.4 million in Q3 2021, primarily due to lower sales and marketing costs [160]. Financial Services - New loan and lease volume increased to $1,437.1 million in Q3 2022 from $1,365.5 million in Q3 2021, reflecting a 5% increase [164]. - Average finance receivables increased by $1,204.3 million in Q3 2022, primarily due to higher average loan and dealer wholesale balances [172]. - The finance margin increased to $104.6 million in Q3 2022, up from $96.2 million in Q3 2021 [171]. - Higher portfolio yields increased interest and fees by $24.5 million, with yields at 4.9% in 2022 compared to 4.6% in 2021 [175]. Tax and Income - The effective tax rate for Q3 2022 was 21.5%, down from 21.9% in Q3 2021, reflecting a change in the mix of income generated in lower tax jurisdictions [191]. - Domestic income before taxes for Q3 2022 was $623.7 million, up from $252.7 million in Q3 2021, while total income before taxes increased to $979.7 million from $487.2 million [192]. Cash Flow and Liquidity - Total cash and marketable securities decreased by $120.0 million to $4,867.7 million as of September 30, 2022, compared to $4,987.7 million at December 31, 2021 [193]. - Net cash provided by operating activities rose by $628.0 million to $1,778.2 million in the first nine months of 2022, compared to $1,150.2 million in the same period of 2021 [194]. - Cash used in investing activities increased by $293.1 million to $1,318.5 million in the first nine months of 2022, reflecting higher net originations of loans and financing leases [195]. - Cash used in financing activities decreased by $971.0 million to $418.9 million in the first nine months of 2022, with net borrowing activities providing $437.3 million [196]. Other Notable Events - The new DAF XD truck was named International Truck of the Year 2023, showcasing advancements in vocational performance and driver comfort [134]. - The company has suspended truck and parts sales to Russia and Belarus due to international sanctions, with no significant receivables exposure [136]. - The company has $3.66 billion in line of credit arrangements, with $3.36 billion unused as of September 30, 2022 [197]. - The company has repurchased $110.0 million of its common stock under a $500.0 million repurchase plan as of September 30, 2022 [198].

PACCAR, Inc. (NASDAQ:PCAR) Q3 2022 Earnings Conference Call October 25, 2022 12:00 PM ET Company Participants Ken Hastings - Director, IR Preston Feight - CEO Harrie Schippers - President & CFO Michael Barkley - SVP & Controller Conference Call Participants Chad Dillard - Bernstein Felix Boeschen - Raymond James Tami Zakaria - JPMorgan Steven Fisher - UBS Tim Thein - Citigroup Jamie Cook - Credit Suisse Stephen Volkmann - Jefferies David Raso - Evercore John Joyner - BMO Capital Markets Nicole DeBlase - Deu ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [ITEM 1. FINANCIAL STATEMENTS](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents PACCAR Inc.'s unaudited consolidated financial statements, including a retrospective accounting change from LIFO to FIFO for U.S. inventories [Consolidated Statements of Comprehensive Income](index=3&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Net income significantly increased for both three and six months ended June 30, 2022, driven by higher net sales and revenues in the Truck, Parts and Other segment Consolidated Statements of Comprehensive Income (Unaudited) | (In Millions, Except Per Share) | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | **Net sales and revenues** | $6,786.2 | $5,387.6 | $12,892.6 | $10,801.1 | | **Total Income Before Income Taxes** | $922.1 | $640.3 | $1,693.5 | $1,248.6 | | **Net Income** | $720.4 | $495.5 | $1,320.9 | $966.3 | | **Diluted Net Income Per Share** | $2.07 | $1.42 | $3.79 | $2.77 | [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to **$30,588.7 million** and stockholders' equity grew to **$12,518.0 million** as of June 30, 2022, driven by asset growth in both segments Consolidated Balance Sheet Highlights (Unaudited) | (In Millions) | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total Assets** | $30,588.7 | $29,509.4 | | Total Truck, Parts and Other Assets | $14,547.8 | $14,090.5 | | Total Financial Services Assets | $16,040.9 | $15,418.9 | | **Total Liabilities** | $18,070.7 | $17,915.4 | | **Total Stockholders' Equity** | $12,518.0 | $11,594.0 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities increased to **$1,097.5 million** for the six months ended June 30, 2022, primarily due to higher net income Condensed Consolidated Statements of Cash Flows (Unaudited) | (In Millions) | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | $1,097.5 | $867.7 | | **Net Cash Used in Investing Activities** | ($879.0) | ($666.7) | | **Net Cash Used in Financing Activities** | ($346.0) | ($651.5) | | **Net Decrease in Cash and Cash Equivalents** | ($197.0) | ($469.8) | | **Cash and cash equivalents at end of period** | $3,231.3 | $3,069.8 | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Key notes detail the retrospective change from LIFO to FIFO for U.S. inventories, revenue disaggregation, segment performance, and legal contingencies from a European Commission investigation - In Q1 2022, the company changed its accounting method for U.S. inventories from LIFO to FIFO to better match costs with revenues and improve comparability. This change increased Retained Earnings by **$143.3 million** as of January 1, 2021, and has been retrospectively applied to all presented periods[19](index=19&type=chunk) - The company is a defendant in various European lawsuits following a 2016 European Commission (EC) settlement. The final outcome and potential range of loss from these claims are highly uncertain and cannot be reasonably estimated at this time[128](index=128&type=chunk)[129](index=129&type=chunk) Truck, Parts and Other Revenues by Source (Six Months Ended June 30) | (In Millions) | 2022 | 2021 | | :--- | :--- | :--- | | **Truck Sales** | $9,611.3 | $7,995.4 | | **Parts Sales** | $2,742.6 | $2,302.0 | | Other Revenues | $538.7 | $503.7 | | **Total** | **$12,892.6** | **$10,801.1** | Segment Income Before Taxes (Six Months Ended June 30) | (In Millions) | 2022 | 2021 | | :--- | :--- | :--- | | Truck | $698.8 | $526.5 | | Parts | $693.5 | $518.4 | | Financial Services | $291.4 | $182.9 | | Other | $6.9 | $10.9 | | Investment Income | $2.9 | $9.9 | | **Total** | **$1,693.5** | **$1,248.6** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=39&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses record Q2 and H1 2022 financial performance driven by Truck and Parts segments, addressing semiconductor shortages, Russia/Belarus sales suspension, and positive 2022 outlook [Overview and Outlook](index=39&type=section&id=Overview%20and%20Outlook) The company achieved higher net sales and income in Q2 and H1 2022, maintaining a positive 2022 outlook despite semiconductor shortages and suspended sales to Russia and Belarus Financial Highlights - Q2 2022 vs Q2 2021 | Metric (in millions, except EPS) | Q2 2022 | Q2 2021 | | :--- | :--- | :--- | | Worldwide Net Sales & Revenues | $7,160 | $5,840 | | Net Income | $720.4 | $495.5 | | Diluted EPS | $2.07 | $1.42 | - The company has suspended truck and parts sales to Russia and Belarus in accordance with international sanctions. In 2021, **2,500 trucks** were sold into these markets. The conflict has not had a significant impact on operations to date[137](index=137&type=chunk) - The industry-wide undersupply of semiconductor chips and component parts has affected the company and is expected to continue impacting deliveries in 2022[139](index=139&type=chunk) 2022 Outlook | Category | Outlook | | :--- | :--- | | U.S. & Canada Truck Industry Sales | 260,000 - 290,000 units | | Europe Truck Industry Registrations | 270,000 - 300,000 units | | PACCAR Parts Sales Growth | 13% - 16% increase vs 2021 | | Capital Investments | $425 - $475 million | | R&D Expenses | $330 - $350 million | [Results of Operations](index=40&type=section&id=Results%20of%20Operations) Operational results improved in H1 2022, with Truck revenue up **20%** to **$10.03 billion** and Parts revenue up **19%** to **$2.82 billion**, while Financial Services pre-tax income surged **59%** Truck Deliveries (Units) | Region | Six Months 2022 | Six Months 2021 | % Change | | :--- | :--- | :--- | :--- | | U.S. and Canada | 45,100 | 45,600 | (1)% | | Europe | 31,500 | 25,500 | 24% | | Other | 13,300 | 11,200 | 19% | | **Total Units** | **89,900** | **82,300** | **9%** | Segment Pre-Tax Income (Six Months Ended June 30) | Segment (in millions) | 2022 | 2021 | % Change | | :--- | :--- | :--- | :--- | | Truck | $698.8 | $526.5 | 33% | | Parts | $693.5 | $518.4 | 34% | | Financial Services | $291.4 | $182.9 | 59% | [Liquidity and Capital Resources](index=53&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained strong liquidity with **$4.79 billion** in cash and marketable securities, and **$1.10 billion** net cash from operations for H1 2022 - Total cash and marketable securities stood at **$4.79 billion** at June 30, 2022, a slight decrease from **$4.99 billion** at year-end 2021[198](index=198&type=chunk) - The company has committed bank facilities of **$3.00 billion**, maintained primarily for backup liquidity for commercial paper borrowings[202](index=202&type=chunk) - As of June 30, 2022, **$390.0 million** remains authorized for repurchase under the company's **$500.0 million** stock buyback program approved in 2018[203](index=203&type=chunk)[224](index=224&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=56&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) No material changes in market risk occurred during the first six months of 2022, with further details available in the 2021 Annual Report on Form 10-K - There were no material changes in the Company's market risk during the first six months of 2022[216](index=216&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=56&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Disclosure controls and procedures were effective as of June 30, 2022, with no material changes to internal controls over financial reporting during the quarter - The Principal Executive Officer and Principal Financial Officer concluded that the Company's disclosure controls and procedures were effective as of the end of the reporting period[217](index=217&type=chunk) - No changes in internal controls over financial reporting occurred during the fiscal quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[218](index=218&type=chunk) [PART II. OTHER INFORMATION](index=57&type=section&id=PART%20II.%20OTHER%20INFORMATION) [ITEM 1. LEGAL PROCEEDINGS](index=57&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company faces ongoing European legal proceedings stemming from a 2016 EC settlement, with potential material impact but an unestimable range of loss - The company faces ongoing claims and lawsuits in Europe following a 2016 EC settlement. The final disposition and potential financial impact are highly uncertain and cannot be reasonably estimated at this time[128](index=128&type=chunk)[129](index=129&type=chunk)[222](index=222&type=chunk) [ITEM 1A. RISK FACTORS](index=57&type=section&id=ITEM%201A.%20RISK%20FACTORS) No material changes to risk factors except for a new one related to the Ukraine conflict, leading to suspended sales to Russia and Belarus with uncertain future impacts - A new risk factor has been identified concerning the conflict in Ukraine. The company has suspended sales to Russia and Belarus, and the potential future impact on business depends on the conflict's development and its effect on European and global economic conditions[223](index=223&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=57&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECU RITIES%20AND%20USE%20OF%20PROCEEDS) No stock repurchases occurred in Q2 2022 under the **$500.0 million** program, with **$110.0 million** of shares repurchased to date and **$390.0 million** remaining - No stock repurchases were made during the second quarter of 2022. As of June 30, 2022, the company has repurchased **$110.0 million** of shares under its **$500.0 million** authorization, with **$390.0 million** remaining[224](index=224&type=chunk) [ITEM 6. EXHIBITS](index=58&type=section&id=ITEM%206.%20EXHIBITS) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents, material contracts, and officer certifications