PACCAR(PCAR) - 2024 Q4 - Annual Results

Overall Performance Summary Financial and Operational Highlights PACCAR reported strong 2024 financial results, the second-best in company history, driven by new truck models, record PACCAR Parts performance, and solid Financial Services results Q4 and Full-Year 2024 Financial Performance vs. 2023 | Metric | Q4 2024 | Q4 2023 | YoY Change | FY 2024 | FY 2023 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenues (USD) | $7.91B | $9.08B | -12.9% | $33.66B | $35.13B | -4.2% | | Net Income (USD) | $872.0M | $1.42B | -38.6% | $4.16B | $4.60B | -9.6% | | Diluted EPS (USD) | $1.66 | $2.70 | -38.5% | $7.90 | $8.76 | -9.8% | - The 2023 full-year results included a $446.4 million after-tax, non-recurring charge related to civil litigation in Europe[2] - Key business highlights for 2024 include achieving the 86th consecutive year of net income, delivering 185,300 vehicles worldwide, launching Amplify Cell Technologies, and opening a new PACCAR Parts Distribution Center in Massbach, Germany[5] Full Year 2024 Financial Highlights | Highlight | Value | | :--- | :--- | | Consolidated Revenues (USD) | $33.66 billion | | Net Income (USD) | $4.16 billion | | After-tax Return on Revenues | 12.4% | | Record PACCAR Parts Revenue (USD) | $6.67 billion | | Record PACCAR Parts Pretax Income (USD) | $1.71 billion | | Cash Provided by Operations (USD) | $4.64 billion | | Capital Projects and R&D Investment (USD) | $1.25 billion | Shareholder Returns PACCAR demonstrated a strong commitment to shareholder returns in 2024, declaring total cash dividends of $4.17 per share and increasing its regular quarterly cash dividend - Total cash dividends of $4.17 per share were declared during 2024, which included a special year-end dividend of $3.00 per share[3] - In December 2024, PACCAR increased its regular quarterly cash dividend by 10% to 33 cents per share, payable in March 2025[3] Segment and Market Analysis Global Truck Markets PACCAR achieved a strong 30.7% retail sales market share for Class 8 trucks in the U.S. and Canada in 2024, projecting slightly softer but robust market conditions for 2025 - Kenworth and Peterbilt achieved a 30.7% retail sales market share for Class 8 trucks in the U.S. and Canada in 2024[8] Truck Market Size and Forecast (Above 16-tonne) | Region | 2024 Industry Sales (units) | 2025 Industry Forecast (units) | | :--- | :--- | :--- | | U.S. & Canada (Class 8) | 268,000 | 250,000 - 280,000 | | Europe | 316,000 | 270,000 - 300,000 | | South America | 119,000 | 115,000 - 125,000 | - Market drivers include steady demand from infrastructure spending for vocational trucks and good performance in the less-than-truckload (LTL) segment[8] PACCAR Parts The PACCAR Parts division achieved record annual revenues and pretax profits in 2024, driven by an expanding connected vehicle population and strategic distribution network investments PACCAR Parts Financial Performance | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | :--- | | Revenues (USD) | $1.67B | $1.61B | $6.67B | $6.41B | | Pretax Income (USD) | $428.2M | $432.4M | $1.71B | $1.70B | - Annual revenues were a record $6.67 billion, a 4% increase from 2023[12] - Long-term growth is supported by the growing population of connected PACCAR vehicles with PACCAR MX engines and investments in new parts distribution centers (PDCs) and dealer programs[12] PACCAR Financial Services (PFS) PACCAR Financial Services delivered good annual results in 2024, supported by strong portfolio quality, revenue growth, and excellent access to debt markets PACCAR Financial Services Performance | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | :--- | | Revenues (USD) | $544.3M | $484.8M | $2.10B | $1.81B | | Pretax Income (USD) | $104.0M | $113.0M | $435.6M | $540.3M | - PFS has a portfolio of 237,000 trucks and trailers, with total assets of $22.41 billion[15] - The company's strong A+/A1 credit ratings enabled PFS to issue $3.65 billion in medium-term notes during 2024[15] Capital Allocation and Future Outlook Capital and R&D Investments PACCAR continues its strategy of consistent investment in facilities, products, and technology, with $1.25 billion invested in 2024 and similar levels planned for 2025 Capital and R&D Investment Plan | Investment Type | 2024 Actual (USD millions) | 2025 Estimate (USD millions) | | :--- | :--- | :--- | | Capital Projects | $796 | $700 - $800 | | R&D Expenses | $453 | $460 - $500 | - Over the past decade, PACCAR has invested $8.6 billion in new and enhanced facilities, products, and technologies[16] - The company expects to invest a total project amount of $600-$900 million in its battery joint venture, Amplify Cell Technologies[18] Consolidated Financial Statements Summary Statements of Operations For the full year 2024, total net sales and revenues decreased to $33.66 billion, with net income falling to $4.16 billion, impacted by a prior-year non-recurring charge Full Year Statement of Operations Highlights (USD millions) | Line Item | 2024 | 2023 | | :--- | :--- | :--- | | Total Net Sales and Revenues | $33,663.8 | $35,127.4 | | Truck, Parts and Other Income Before Taxes | $4,570.6 | $4,885.7 | | Financial Services Income Before Taxes | $435.6 | $540.3 | | Total Income Before Income Taxes | $5,400.9 | $5,718.2 | | Net Income | $4,162.0 | $4,600.8 | | Diluted EPS | $7.90 | $8.76 | Condensed Balance Sheets PACCAR's balance sheet strengthened as of December 31, 2024, with total assets increasing to $43.42 billion and stockholders' equity growing to $17.51 billion Condensed Balance Sheet Highlights (USD millions) | Line Item | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and marketable securities | $9,649.9 | $8,659.3 | | Total Financial Services Assets | $22,411.5 | $20,963.9 | | Total Assets | $43,418.9 | $40,823.4 | | Total Financial Services Liabilities | $17,578.8 | $15,928.8 | | Total Stockholders' Equity | $17,506.9 | $15,878.8 | Condensed Cash Flow Statements For 2024, PACCAR generated $4.64 billion in cash from operating activities, while cash used in investing activities increased significantly, and financing activities resulted in a net outflow Condensed Cash Flow Statement Highlights (USD millions) | Line Item | Year Ended Dec 31, 2024 | Year Ended Dec 31, 2023 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $4,640.9 | $4,190.0 | | Net Cash Used in Investing Activities | ($4,487.3) | ($2,871.0) | | Net Cash (Used in) Provided by Financing Activities | ($123.1) | $1,102.2 | | Net (Decrease) Increase in Cash | ($120.9) | $2,490.8 | | Cash and cash equivalents at end of period | $7,060.8 | $7,181.7 | Segment and Geographic Information In 2024, Truck segment revenues declined while Parts revenues grew to a record, with overall new truck deliveries decreasing across North America and Europe Full Year 2024 Revenue by Segment (USD millions) | Segment | 2024 | 2023 | | :--- | :--- | :--- | | Truck | $24,838.4 | $26,846.4 | | Parts | $6,666.4 | $6,414.4 | | Financial Services | $2,099.5 | $1,811.9 | Full Year 2024 Revenue by Geography (USD millions) | Region | 2024 | 2023 | | :--- | :--- | :--- | | United States and Canada | $20,954.4 | $21,222.1 | | Europe | $6,962.6 | $8,741.4 | | Other | $5,746.8 | $5,163.9 | Full Year New Truck Deliveries | Region | 2024 (units) | 2023 (units) | | :--- | :--- | :--- | | United States and Canada | 106,400 | 109,100 | | Europe | 45,400 | 63,200 | | Other | 33,500 | 31,900 | | Total | 185,300 | 204,200 | Supplementary Information Reconciliation of GAAP to Non-GAAP Financial Measures This section provides a non-GAAP reconciliation for 2023, adjusting net income and EPS by excluding a $446.4 million after-tax charge from European civil litigation - The non-GAAP measures for 2023 exclude a pre-tax charge of $600.0 million ($446.4 million after-tax) for estimable costs related to civil litigation in Europe (EC-related claims)[37] Reconciliation for Year Ended December 31, 2023 | Metric | GAAP (USD millions) | Adjustment (USD millions) | Non-GAAP (USD millions) | | :--- | :--- | :--- | :--- | | Net Income | $4,600.8 | +$446.4 | $5,047.2 | | Diluted EPS | $8.76 | +$0.85 | $9.61 |