PACCAR Inc is a multinational company that designs, manufactures, and distributes high-quality, light-, medium-, and heavy-duty commercial trucks. The company's trucks are marketed under the Kenworth, Peterbilt, and DAF nameplates. PACCAR also distributes aftermarket parts for trucks and related commercial vehicles and provides financial services to customers and dealers. The company's primary markets are North America and Europe, with additional presence in Australia, Brasil, Canada and Mexico. PACCAR competes in the North American Class 8 market with Kenworth and Peterbilt conventional models and in the European light/medium market with DAF COE trucks. The company also designs and manufactures diesel engines, primarily for use in its own trucks.

• Employees: 32,400 (as of December 31, 2023)
• Geographic Footprint: 26 countries (Financial Services operations) and 95 countries (Parts distribution)
• Headquarters: Bellevue, WA
• Founded: 1905 (as Seattle Car Manufacturing Company)
• Number of locations/facilities: 7 manufacturing plants in the U.S., Europe, and Australia, Brasil, Canada and Mexico and 18 parts distribution centers
• Revenue: $35.13 billion (FY2023)
• Market Capitalization: $52.3 billion (as of February 9, 2024)
• Key Subsidiaries/Brands: Kenworth, Peterbilt, DAF, Braden, Carco, Gearmatic

• CEO: R. Preston Feight
• CFO: Harrie C.A.M. Schippers
• Executive Chairman: Mark C. Pigott
• Other Key Executives: C. Michael Dozier (Executive Vice President), Darrin C. Siver (Executive Vice President), Kevin D. Baney (Senior Vice President), John N. Rich (Senior Vice President and Chief Technology Officer), Laura J. Bloch (Vice President and General Manager of PACCAR Parts), Paulo H. Bolgar (Vice President and Chief Human Resources Officer), Todd R. Hubbard (Vice President, Global Financial Services), A. Lily Ley (Vice President and Chief Information Officer), Brice J. Poplawski (Vice President and Controller), Harald P. Seidel (Vice President of PACCAR and President of DAF Trucks N.V.), Jason P. Skoog (Vice President of PACCAR and General Manager of Peterbilt), James W. Walenczak (Vice President of PACCAR and General Manager of Kenworth), Michael K. Walton (Vice President and General Counsel), Harry M.B. Wolters (Vice President of PACCAR and General Manager Global Powertrain & Electrification)

Key executives have extensive experience in the automotive and financial sectors. Many have been with PACCAR for several years, while some have joined recently bringing expertise from other major companies.

• Annual Revenue: $35.13 billion (FY2023)
• Net Income: $4.60 billion (FY2023)
• Market Cap: $52.3 billion (as of February 9, 2024)
• Total Assets: $40.8 billion (as of December 31, 2023)
• Number of Employees: 32,400 (as of December 31, 2023)
• Key Financial Highlights: Net income was $4.60 billion ($8.76 per diluted share) in 2023 compared to $3.01 billion ($5.75 per diluted share) in 2022. Adjusted net income (non-GAAP), excluding a $446.4 million after-tax non-recurring charge related to civil litigation in Europe was $5.05 billion ($9.61 per diluted share). After-tax return on beginning equity (ROE) was 34.9% in 2023, which includes the $446.4 million after-tax non-recurring charge. Excluding the one-time charge, adjusted ROE (non-GAAP) was 38.3%. Capital investments were $698.3 million in 2023 and Research and development (R&D) expenses were $410.9 million in 2023.

PACCAR's main product categories and services are:

• Trucks: Design, manufacture, and distribution of high-quality, light-, medium-, and heavy-duty commercial trucks under the Kenworth, Peterbilt, and DAF nameplates. These trucks are configured with the engine in front of cab (conventional) or cab-over-engine (COE).
• Parts: Distribution of aftermarket parts for trucks and related commercial vehicles through strategically located parts distribution centers.
• Financial Services: Finance and leasing products and services provided to customers and dealers, primarily related to PACCAR products and associated equipment. This segment also manages sales of used trucks.
• Other Businesses: Manufacturing and marketing of industrial winches under the Braden, Carco, and Gearmatic nameplates.

PACCAR operates through three main business segments:

• Truck: Includes the design, manufacture, and distribution of commercial trucks. This segment accounted for 77% of total 2023 net sales and revenues.
• Parts: Focuses on the distribution of aftermarket parts for trucks and related commercial vehicles. This segment accounted for 18% of total 2023 net sales and revenues.
• Financial Services: Provides finance and leasing products and services to customers and dealers. This segment accounted for 5% of total 2023 net sales and revenues and 51% of total assets.

PACCAR's strategic priorities include:

• Investing in technologies that reduce greenhouse gas emissions, such as highly fuel-efficient diesel engines, natural gas and biofuel engines, as well as next-generation electric, hybrid, and hydrogen powertrains.
• Focusing on environmental responsibility in the vehicle production process by reducing waste, reusing materials, conserving energy, and reducing the environmental impact of its activities.
• Expanding its connected vehicle services and next-generation manufacturing and parts distribution capabilities.
• Meeting future emissions and certification requirements through the introduction of new technologies into its products, engines and exhaust after-treatment systems.
• Expanding its battery manufacturing capabilities through a joint venture with Cummins, Daimler Trucks and EVE Energy.

PACCAR operates in the highly competitive commercial truck market. Key aspects of the industry include:

• Primary Industry: Commercial vehicle manufacturing.
• Market Position: PACCAR holds a 29.5% share of the U.S. and Canadian Class 8 market and a 15.6% share of the European heavy-duty market.
• Key Competitors: Major competitors include Daimler Truck Holdings AG, Iveco Group N.V., AGCO Corporation, Caterpillar Inc., Cummins Inc., Deere & Company, Eaton Corporation, Oshkosh Corporation, TRATON SE, and AB Volvo.
• Market Trends: The industry is influenced by economic conditions, the availability of capital, the amount of freight being transported, and government regulations related to emissions and fuel efficiency. There is a growing trend towards alternative powertrain vehicles, including electric, hybrid, and hydrogen fuel cell technologies.

• Market Risks: Demand for commercial vehicles is sensitive to global and national economic conditions. Competition and pricing pressures could adversely affect sales and profitability.
• Operational Risks: Production costs are subject to variability in material and commodity costs. Supply chain disruptions, including shortages of components and labor availability, could negatively impact production capacity.
• Financial Risks: Disruptions in financial markets could limit the Company's sources of liquidity, increase borrowing costs and impact the Financial Services segment. The Financial Services segment is also subject to credit risk and interest-rate risks.
• Regulatory Risks: The Company is subject to extensive environmental laws and regulations, including those related to greenhouse gas and non-greenhouse gas emissions. Changes in these regulations could increase costs and impact product development strategies.
• Technological Risks: The Company faces risks related to the pace of transition to alternative powertrain commercial vehicles and the success of its research and development programs. Cybersecurity risks and potential disruptions to IT systems also pose a threat.