PACCAR announced a significant increase in annual revenues and net income for 2023 in its Q4 2023 report. According to CEO Preston Feight, this achievement is attributed to record deliveries of DAF, Peterbilt, and Kenworth trucks, combined with robust performance in the truck, parts, and financial services sectors.
Feight emphasized the company’s commitment to producing electric batteries, aligning with operational and environmental goals. The fourth quarter of 2023 saw PACCAR generating $9.08 billion in revenue, a considerable increase from $8.13 billion in the same period of 2022. The net income for the quarter stood at $1.42 billion, a 54% rise compared to the previous year. Overall, the company recorded revenues of $35.13 billion for the year, up from $28.82 billion in 2022. Net income for 2023 was $4.6 billion, including a $446.4 million charge related to civil litigation in Europe. Excluding this charge, the adjusted net income was $5.05 billion.
Mark Pigott, executive chairman, highlighted the company’s strong shareholder returns and growth in aftermarket parts sales, contributing to a total shareholder return of 55% in 2023. PACCAR also declared cash dividends of $4.24 per share during the year.
In 2023, PACCAR marked its 85th consecutive year of net income and delivered a record 204,200 vehicles worldwide, the company said. Notably, the company announced a joint venture with Cummins, Daimler Truck, and EVE Energy for manufacturing commercial vehicle battery cells in the U.S. PACCAR says its significant achievements included the production of the 750,000th truck at Peterbilt Denton and Kenworth Chillicothe factories and the opening of a new electric truck assembly plant in Eindhoven, Netherlands.
PACCAR Parts reported a record annual pre-tax income of $1.7 billion and revenues of $6.41 billion. Laura Bloch, vice president and general manager of PACCAR Parts, attributed this success to investments enhancing vehicle uptime and convenience.
PACCAR Financial Services (PFS) also showed strong performance, with a pretax income of $540.3 million and revenues of $1.81 billion in 2023. Todd Hubbard, PACCAR vice president, credited the results to the company’s growing portfolio and strong market position.
The company said it plans to invest $698 million in capital projects and $411 million in research and development in 2023. Harrie Schippers, president and chief financial officer, said the focus on fuel-efficient diesel and electric powertrain technologies is key in the company’s growth strategy.
