April 28 - PACCAR reported a decline in first-quarter revenue on Tuesday, driven by subdued demand for new trucks as the broader industry continues to contend with a prolonged period of over-capacity. The U.S. trucking sector had shown tentative signs of recovery earlier this year after nearly four years of recession, but elevated fuel costs linked to the Middle East conflict have interrupted that momentum.
PACCAR, the parent company of Kenworth, Peterbilt and DAF, delivered 17,800 trucks in the U.S. and Canada during the first quarter, down from 22,200 deliveries in the same period a year earlier. Revenue from truck sales contracted 13.4 percent to $4.53 billion, reflecting the pullback in new vehicle orders. In premarket trading the companys shares were down more than 1 percent.
Amid the softer market for new equipment, fleet operators have leaned on existing vehicles. Truck operator JB Hunt, which operates a fleet of over 12,000 trucks, has implemented cost reductions to lift efficiency while uncertainty persists. That extended use of older trucks helped PACCARs aftermarket parts business, where sales increased 1.2 percent to $1.71 billion.
On profitability, PACCAR reported earnings of $1.15 per share for the quarter, up from $0.96 a year earlier. Total quarterly revenue, which includes results from its financial services segment, was $6.78 billion, down from $7.44 billion a year earlier.
Separately, the companys performance and market reaction sit against a backdrop of uneven recovery in trucking volumes and upward pressure on operating costs tied to fuel. Those dynamics have influenced both new truck purchases and the durability of older equipment on the road, affecting OEM sales and aftermarket demand in different ways.
Context summary
PACCARs quarterly results show a split: weaker truck unit sales and lower truck revenue offset by modest growth in parts sales and higher reported earnings per share, while total company revenue including financial services declined year over year.