PACCAR Inc.

This is our first report on PACCAR, the largest manufacturer of medium and heavy-trucks in the world. The company ended 2022 on a solid note with annual revenues of $28.8 billion and a net income of $3.01 billion. Strong commercial growth in PACCAR’s main truck markets and earnings in its Parts and Financial Services businesses contributed to its financial performance. Pretax earnings at PACCAR Parts reached $380 million, a 23% increase over the same time in the previous year. Fourth quarter revenues at PACCAR Parts were a solid $1.47 billion and the company delivered an all-around beat. PACCAR delivered 51,600 trucks, brought on by an increase in truck production as well as the completion of almost all the cars that still needed components. Despite potential supplier difficulties all year, the supply chain is getting better. Deliveries in the first quarter of 2023 are anticipated to be robust and range from 49,000 to 53,000. Furthermore, the company collaborated with Platform Science to incorporate Platform Science’s Virtual Vehicle in Kenworth and Peterbilt trucks. PACCAR’s market-leading new vehicles and transportation solutions are in high demand across all sectors, and they anticipate that 2023 will be yet another successful year. We initiate coverage on the stock of PACCAR Inc. with a ‘Hold’ rating.