PACCAR opened a new 80,000 square-foot PACCAR Parts Distribution Center (PDC) in Bogota, Colombia in Q2 2024, and is constructing a new 240,000 square-foot PDC in Massbach, Germany to be opened in 2024.

PACCAR, Cummins, Daimler Truck and EVE Energy completed the formation of their U.S. battery manufacturing joint venture, Amplify Cell Technologies, and began construction of its 21-gigawatt hour (GWh) battery factory in Mississippi. PACCAR anticipates investing $600-$900 million in the joint venture over the next several years.

Capital investments in 2024 are expected to be $725 to $775 million and R&D is expected to be $460 to $480 million, indicating continued focus on growth and innovation.

Worldwide new truck deliveries decreased in the second quarter of 2024 compared to the same period of 2023, primarily due to lower deliveries in Europe.

Financial Services revenues were $509.8 million in 2024 compared to $439.8 million in 2023, primarily due to higher interest income driven by portfolio growth and higher portfolio yields.

Parts sales were $1.66 billion in 2024 compared to $1.60 billion in 2023, primarily due to higher sales in all markets.

Truck industry heavy-duty retail sales in the U.S. and Canada in 2024 are expected to be 240,000 to 280,000 units compared to 297,000 in 2023. In Europe, 2024 truck industry registrations for over 16-tonne vehicles are expected to be 260,000 to 300,000 units compared to 343,300 in 2023.

If freight transportation conditions decline due to a weaker economy, then past due accounts, truck repossessions and credit losses would likely increase from the current levels and new business volume would likely decline.

The company notes the risk of insufficient supplier capacity or access to raw materials and components, including semiconductors, labor disruptions, and shortages of commercial truck drivers.

The Company's heavy-duty truck retail market share was 31.5% in the first six months of 2024 compared to 27.7% in the same period of 2023. The medium-duty market share was 17.3% in the first six months of 2024 compared to 12.8% in the first six months of 2023.

DAF over 16-tonne market share was 13.7% in the first six months of 2024 compared to 16.1% in the same period of 2023. DAF market share in the 6 to 16-tonne market in the first six months of 2024 was 8.4% compared to 9.1% in the same period of 2023.

DAF Brasil market share for the first six months of 2024 was 10.3% compared to 9.2% in the same period in 2023.

Truck selling, general and administrative (SG&A) expense decreased in the second quarter of 2024 to $59.7 million from $62.7 million in 2023, and for the first six months of 2024, Truck SG&A decreased to $121.4 million from $135.1 million in 2023.

Parts SG&A expense increased in the second quarter of 2024 to $62.6 million from $59.1 million in 2023, and for the first six months, Parts SG&A increased to $123.9 million in 2024 from $117.2 million in 2023.

Financial Services SG&A for the second quarter of 2024 increased to $40.8 million from $37.0 million in the second quarter of 2023. For the first six months, Financial Services SG&A increased to $79.8 million in 2024 from $72.2 million in 2023.

Research and development (R&D) expenses were $117.1 million in 2024 compared to $101.3 million in 2023 for the second quarter and $222.6 million in 2024 compared to $198.5 million in 2023 for the first six months, indicating increased investment in innovation.

PACCAR is investing in battery technology through a joint venture with Cummins, Daimler Truck and EVE Energy, indicating a focus on future technologies.

The Company is increasing its investment in new powertrains, advanced manufacturing capabilities and capacity, and aftermarket distribution capabilities and capacity.

Capital investments were $219.6 million in 2024 compared to $179.1 million in 2023 for the second quarter and $383.9 million in 2024 compared to $312.0 million in 2023 for the first six months, indicating increased investment in the business.

The Company paid $1.97 billion in dividends in the first six months of 2024, compared to $1.24 billion in 2023.

Stock repurchases of $390.0 million remain authorized under the current $500.0 million program approved by the PACCAR Board of Directors on December 4, 2018, indicating potential for future share repurchases.

The 10-Q filing does not contain any specific information on new environmental, social, or governance initiatives.

The 10-Q filing does not contain any specific information on new sustainability risks or opportunities.

The 10-Q filing does not contain any specific information on new governance practices.

Truck industry heavy-duty retail sales in the U.S. and Canada in 2024 are expected to be 240,000 to 280,000 units compared to 297,000 in 2023. In Europe, 2024 truck industry registrations for over 16-tonne vehicles are expected to be 260,000 to 300,000 units compared to 343,300 in 2023.

If freight transportation conditions decline due to a weaker economy, then past due accounts, truck repossessions and credit losses would likely increase from the current levels and new business volume would likely decline.

The company notes the risk of global conflicts, insufficient supplier capacity or access to raw materials and components, including semiconductors, and labor disruptions.