PACCAR, Inc. (PCAR) Q2 2023 Earnings Call Transcript

For the period ending June 30, 2023

July 25, 2023 12:00 p.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning and welcome to PACCAR’s Second Quarter 2023 Earnings Conference Call. All lines have been in a listen-only mode until the question-and-answer session. Today’s call is being recorded and if anyone has any objection, they can disconnect at this time.

I would now like to introduce Mr. Ken Hastings, PACCAR’s Director of Investor Relations. Mr. Hastings, please go ahead.

Ken Hastings

Good morning. We would like to welcome those listening by phone and those on the webcast. My name is Ken Hastings, PACCAR’s Director of Investor Relations. And joining me this morning are Preston Feight, Chief Executive Officer; Harrie Schippers, President and Chief Financial Officer; and Brice Poplawski, Vice President and Controller.

As with prior conference calls, we ask that any members of the media on the line participate in a listen-only mode. Certain information presented today will be forward-looking and involve risks and uncertainties, including general economic and competitive conditions that may affect expected results. For additional information, please see our SEC filings and the Investor Relations page at paccar.com.

I would now like to introduce Preston Feight.

Preston Feight

Hey, good morning. Harrie Schippers, Brice Poplawski, Ken Hastings, and I will update you on our second quarter financial results and business highlights. I’ll start by saying thank you to PACCAR’s great employees who continue to deliver excellent results and provide our customers with the best trucks and transportation solutions in the world.

PACCAR achieved record revenues and net income in the second quarter due to its excellent portfolio of new trucks, robust aftermarket parts business, healthy financial services performance and continued strong market demand. PACCAR’s revenues increased 24% to $8.9 billion. Net income increased 70% to $1.22 billion.

PACCAR Parts’ second quarter revenues increased by more than 11% to $1.6 billion. Parts’ pretax profits were $419 million, 19% higher than the second quarter of last year. Truck, parts and other gross margins were excellent in the second quarter at 18.8%, up from 14.4% in the same period last year.

PACCAR is delivering structurally higher margins as a result of our investments in the industry-leading new range of premium trucks, our sophisticated and successful aftermarket parts business, and as a result of our overall global growth. PACCAR’s innovative research and development programs and partnerships provide our customers with the right products and technology to help them optimize their operations.