PCAR Financial Analysis

Analysis Date: 1/29/2025

Business Model

PACCAR generates revenue through three main segments: Truck Sales (74%), Parts (20%), and Financial Services (6%)

Revenue Sources

• Truck and Other: $24.8B revenue from sale of premium quality light, medium and heavy commercial vehicles
• Aftermarket Parts: $6.7B revenue from distribution through global network of 2,400 dealerships
• Financial Services: $2.1B revenue from finance and leasing portfolio of 237,100 trucks and trailers

Revenue Distribution by Channel

• Truck and Other: 74% of total revenue
• Parts: 20% of total revenue
• Financial Services: 6% of total revenue

Income Statement Analysis

• Revenue decreased 12.9% YoY to $7.91B in Q4 2024
• Net income declined 38.5% YoY to $872M in Q4 2024
• Parts segment achieved record revenue of $6.67B for full year 2024

Balance Sheet Analysis

• Strong cash position of $9.65B, up 11.4% YoY
• No manufacturing debt - maintain strong A+/A1 credit rating

Cash Flow Analysis

• Strong operating cash flow of $4.64B in 2024, up 10.8% YoY

Capital Allocation

Company invested $1.25B in capital projects and R&D in 2024. Plans to invest $700-800M in capital projects and $460-500M in R&D for 2025. Will invest $600-900M in battery joint venture Amplify Cell Technologies.

Management Commentary

PACCAR achieved strong annual revenues and net income in 2024

2024 was second best year in company history

Overall Sentiment: Positive and confident about company's market position and future growth opportunities

Recommendation

Rating: Buy

Reason for Rating: Strong financial position, market leadership, and investments in future technologies support positive outlook

Disclaimer: This analysis is based on company filings and public information. It is for informational purposes only and not financial advice. Past performance does not guarantee future results.

Generated on: 1/29/2025, 8:57:47 AM