PACCAR Inc (NASDAQ:PCAR) Q3 2024 Earnings Conference Call October 22, 2024 12:00 PM ET

Company Participants

Ken Hastings - Director of IR
Preston Feight - CEO
Harrie Schippers - President and CFO
Brice Poplawski - VP and Controller

Conference Call Participants

Steven Volkman - Jefferies
Rob Wertheimer - Melius Research
Steven Fisher - UBS
Tami Zakaria - JPMorgan
Angel Castillo - Morgan Stanley
Jaime Cook - Truist Securities
David Raso - Evercore ISI
Jerry Revich - Goldman Sachs
Tim Thein - Raymond James
Kyle Menges - Citi
Chad Dillard - Bernstein
Jeffrey Kauffman - Vertical Research Partners
Michael Feniger - Bank of America
Scott Group - Wolfe Research

Operator

Good morning, and welcome to PACCAR's Third Quarter 2024 Earnings Conference Call. All lines will be in a listen-only mode until the question-and-answer session. Today's call is being recorded and if anyone has an objection, they should 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 that may affect expected results. For additional information, please see our SEC filings at the Investor Relations page of paccar.com.

I would now like to introduce Preston Feight.

Preston Feight

Thanks, Ken. Good morning, everyone. Harry, Bryce, Ken, and I will update you on our excellent third quarter financial results and other business highlights.

I'd like to start by thanking PACCAR's wonderful employees who deliver PACCAR's high-quality trucks and transportation solutions to our customers all around the world. PACCAR earned a strong $972 million on revenues of $8.2 billion for an industry-leading after-tax return on revenue of 11.8%.

PACCAR Parts' third quarter revenues increased 5% to $1.66 billion and pre-tax profits were $407 million. PACCAR Financial earned pre-tax income of $107 million in the third quarter. We estimate this year's U.S. and Canadian Class-8 market to be around 260,000 trucks and next year to be in the range of 250,000 to 280,000 vehicles. The Vocational segment where Peterbilt and Kenworth are the market leaders, is strong and is expected to remain strong with continued infrastructure investments.