Paccar executives expressed optimism that the specifics announced last week on the United States’ planned tariffs on new trucks and truck parts will boost the company’s sales and provide needed certainty to the marketplace.
“I applaud Commerce and the White House for putting out a clear document that’s helpful in articulating what the game plan is and why the game plan is useful,” Paccar CEO Preston Feight said in an Oct. 21 earnings call with analysts. For the third quarter, Paccar reported net income of $590 million, or $1.12 per share (all figures USD). The company’s revenue was $6.67 billion for the quarter.
Feight was referring to last week’s announcement from the White House that clarified that 25% tariffs on Classes 3-8 trucks and truck parts would begin on Nov. 1. However, for trucks that qualify for preferential tariff treatment under the United States-Mexico-Canada Agreement (USMCA), the tariff will only apply to the value of the non-U.S. content.
Paccar produces more than 90% of its Kenworth and Peterbilt trucks sold in the United States in Texas, Ohio, and Washington. “The tariffs will be good for Paccar’s customers as it will reduce tariff costs and bring clarity to the market,” Feight said.
Paccar expects the tariff impacts to peak during the current quarter. After a period of adjustment, especially for the truck parts made in Mexico and Canada, uncertainty should moderate in the coming quarters.
“It should improve our competitive position as we look forward into next year,” Freight said. Paccar also develops integrated powertrains and manufactures trucks in Europe under the DAF nameplate.
Waiting on a truckload upturn
Feight also expressed some cautious optimism that the truckload sector could soon begin seeing enough of an uptick to get back to more normal replacement cycles.
The less-than-truckload and vocational segments have held up, but truckload fleets have faced a challenging market for several years. As a result, they are holding existing equipment longer, but are reaching a point where new equipment will be needed.
Chief financial officer Brice Poplawski said the bonus depreciation measures for new equipment included in the recently signed “Big, Beautiful Bill” will help spur new truck demand during the fourth quarter.
In response to an analyst question about price increases tied to the tariffs, Feight said last week’s developments will help shift that discussion. “We can move away from that kind of discussion and just get into truck pricing again since there’s clarity and stability,” he said.
Higher truck sales projected for 2026
Paccar estimates total U.S. and Canadian Class 8 sales will be in a range of 230,000-245,000 trucks, and next year between 230,000-270,000.
The 2026 total could end up higher than this year if “we realize clarity around tariffs, emissions policy and potential improvements in the freight market,” Feight said.
