PACCAR Inc. (NASDAQ:PCAR) shares were trading lower Tuesday after the truck maker reported first-quarter results.

Quarterly Results

PACCAR reported first-quarter earnings per share of $1.15, in line with analyst estimates. Consolidated revenue totaled $6.78 billion, compared with the consensus estimate of $6.454 billion.

Revenue from truck, parts and other operations was $6.2 billion. A Reuters report said the company posted a revenue decline as weak new truck demand and industry overcapacity weighed on performance.

Although the U.S. trucking sector is showing early signs of recovery after a prolonged downturn, higher fuel costs linked to Middle East tensions have slowed the rebound, the report added.

The company reported U.S. and Canada deliveries of 17,800 units, down from 22,200 a year earlier, while truck sales revenue fell 13.4% to $4.5 billion.

Financial Services revenue rose to $542.2 million from $528.0 million in the same quarter last year.

Management Commentary and Demand Outlook

"PACCAR's production backlog is increasing due to stronger demand," CEO Preston Feight said.

Net income rose to $605.3 million from $505.1 million a year earlier, when results included a $264.5 million after-tax charge tied to civil litigation in Europe.

"The U.S. and Canada truck market has enjoyed a positive inflection as customers benefit from higher freight rates due to reduced trucking industry capacity," President Kevin Baney said.

Baney added that customer demand is improving despite volatility in fuel and operating costs, as buyers gain clarity on the impact of 2027 emissions regulations.

PACCAR invested $135.5 million in capital projects and $109.1 million in research and development during the quarter.

For 2026, the company estimates U.S. and Canada Class 8 truck industry retail sales will range between 230,000 and 270,000 units. The South American above-16-tonne truck market is projected at 100,000 to 110,000 units.

PACCAR ended the quarter with $5.64 billion in cash and equivalents.

PACCAR Stock Price Movement

PCAR Price Action: Paccar shares were down 5.78% at $119.85 at the time of publication on Tuesday, according to Benzinga Pro data.

Photo by RYO Alexandre via Shutterstock