PACCAR Inc · PCAR · FY2025 Q3 · Calendar Q4 2025

PACCAR: Parts strength offsets tariff pressure as rebate approaches

The supplied analysis supports a constructive but conditional view: PACCAR's parts business, investment program, and expected tariff relief provide support, while tariff execution, demand conditions, regulation, and inventory remain important tests.

Reported Before market openNASDAQIndustrials $57.73B market cap
100quality score

Earnings scorecard

Reported versus consensus
Reported EPS $1.12 Consensus $1.15
EPS surprise -2.6% Reported versus consensus
Reported revenue $6.67B Consensus $6.01B
Revenue surprise +11.1% Reported versus consensus

Market reaction

prior-close to event-session close
Stock move +2.4% Event window
SPY move -0.0% Same window
Abnormal move +2.4% Stock minus SPY
Volume 2.0× Versus trailing sessions
Subsequent drift -2.9% Up to 20 sessions
PCARSPY benchmark

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What changed

Compared with the prior-quarter analysis, the Section 232 rebate now has a stated November 1 start and is expected to offset tariff costs through Q4 and into 2026. PACCAR also provided a more specific Q4 margin outlook, while maintaining its demand outlook and investment program.

Guidance delta

Guidance sentiment was maintained. Management projected Q4 gross margin around 12% after the peak tariff period and outlined capital expenditures of $750–$775 million for this year and $725–$775 million next year.

Key takeaways

  • Q3 performance was robust despite tariff headwinds, with record PACCAR Parts revenue and strong margin.
  • Management expects the Section 232 rebate to reduce costs beginning November 1 and support margins through Q4 and into 2026.
  • The company remains optimistic about Class 8 truck demand across North America, Europe, and South America through 2026.
  • Investment continues in distribution, engine remanufacturing, factory capacity, alternative powertrains, and driver-assistance technology.

Management priorities

  • Expand PACCAR Parts distribution, including a new Calgary center.
  • Launch the engine-remanufacturing center in Columbus, Mississippi.
  • Open an additional used-truck center in Warsaw, Poland.
  • Continue factory, clean-diesel, alternative-powertrain, and ADAS investments.

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Earnings History

Estimate Beat Miss Match
PCAR EPS earnings history estimate and actual scatter chart 9 reported fiscal quarters and 4 future estimate-only quarters. Q1 '24 estimate $2.20 Q1 '24 actual $2.27, beat Q2 '24 estimate $2.14 Q2 '24 actual $2.13, match Q3 '24 estimate $1.82 Q3 '24 actual $1.85, beat Q2 '25 estimate $1.29 Q2 '25 actual $1.37, beat Q3 '25 estimate $1.15 Q3 '25 actual $1.12, miss Q4 '25 estimate $1.06 Q4 '25 actual $1.06, match Q1 '26 estimate $1.15 Q1 '26 actual $1.15, match Q2 '26 estimate $1.36 Q2 '26 actual $1.43, beat Q3 '26 estimate $1.61 Q4 '26 estimate $1.73 Q1 '27 estimate $1.61 Q2 '27 estimate $1.69
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Analyst Consensus ?

ConsensusHold45 ratings
Bullish1533.3%
Neutral2760.0%
Bearish36.7%

Analyst 52W Price Targets

$109.68Current
$42.22Low
$96.17Average
$150High

Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 4, 2026. Not an FN2 forecast.

Firm-level rating actions

FMP grade actions identify the grading firm, not a named analyst.

FirmRatingPrior ratingActionDate
RBC Capital Outperform Sector PerformUpgradeSep 10, 2026
Morgan Stanley Equal Weight Equal WeightMaintainSep 4, 2026
Evercore ISI Group Outperform OutperformMaintainAug 11, 2026
Wells Fargo Equal Weight Equal WeightMaintainJul 30, 2026
Citigroup Neutral NeutralMaintainJul 30, 2026
Show 40 more rating actions

Named analyst price targets

Upside is calculated against the persisted current price $109.68. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
RBC CapitalNick Housden$150$121.88 +36.8%Sep 10, 2026
Morgan StanleyAnalyst unavailable$125$124.51 +14.0%Sep 4, 2026
Morgan StanleyAnalyst unavailable$119$136.06 +8.5%Jul 29, 2026
BernsteinChad Dillard$148$134.64 +34.9%Jul 29, 2026
Truist FinancialAnalyst unavailable$131$121.24 +19.4%Jul 2, 2026
See 47 more

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Company context

Snapshot as of publication

PACCAR Inc is a global leader specializing in the design, production, and distribution of commercial trucks, covering light, medium, and heavy-duty classes. Its market reach extends across the United States, Europe, Mexico, South America, Australia, and other international territories. The company's operations are divided into three principal segments: Truck, Parts, and Financial Services. The Truck division focuses on engineering, manufacturing, and supplying vehicles tailored for both long-distance highway travel and challenging off-highway applications, primarily for hauling commercial and consumer goods. These vehicles are sold worldwide through an expansive network of independent dealerships, prominently featuring the Kenworth, Peterbilt, and DAF brands. The Parts segment is dedicated to supplying aftermarket components for its trucks and associated commercial vehicles.…

Historical context

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Sources

  1. Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
  2. FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
  3. Polygon adjusted daily market bars · 2026-10-04T04:20:43.223600+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-04T04:20:43.220902+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated · As of 2026-10-04. For educational purposes only; not investment advice.