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PACCAR builds big trucks like Kenworth and Peterbilt and sells parts and financing for them.
PACCAR makes heavy-duty trucks. Its two most famous brands are Kenworth and Peterbilt — the big rigs you see hauling freight on highways. It also sells trucks in Europe under the DAF name. Its customers are trucking fleets, owner-operators, and logistics companies who buy these trucks to move goods. A typical Class 8 truck can cost $150,000 or more, so this is a big-ticket purchase. PACCAR doesn't just sell the truck once — it keeps earning money for years afterward through parts, service, and financing.
The money comes from three main buckets. First, truck sales — about 70% of revenue. Second, parts and service — roughly 20%, and this is the high-margin, steady part, because every truck on the road eventually needs brakes, filters, and repairs. Third, financial services — PACCAR lends money to customers so they can buy its trucks, earning interest along the way. Think of it as a car dealer that also runs its own bank. The parts business is the quiet profit engine: trucks break, fleets need parts fast, and PACCAR's dealer network has them. Last year the company brought in roughly $35 billion in revenue.
PACCAR is based in Bellevue, Washington, and was founded over a century ago, but what matters now is how it reinvests. It spends heavily on research — especially electric and hydrogen trucks, plus self-driving technology through partnerships. It pays a regular dividend, has paid special dividends, and buys back stock regularly, returning a large chunk of cash to shareholders. The truck market is cyclical: when freight is strong, fleets buy; when it slows, they wait. That's why the parts and finance arms matter so much — they smooth out the bumps.
Saved answer · last researched 11 Oct 2026