Slides
Page 2
Ken Hastings Investor Relations
Page 3
PACCAR Inc PACCAR Investor Conference presentations may contain statements that are forward looking. These statements are based on current expectations and assumptions that are subject to risks and uncertainties, which may cause actual results to differ materially. A summary of risks and uncertainties is described in more detail in our periodic reports filed with the Securities and Exchange Commission (SEC). We undertake no duty to update or revise these presentations, whether as a result of new information, future events or otherwise. For the most recent financial, risk and other information about PACCAR, please see our SEC filings and most recent earnings release available on the Investor Relations page of www.paccar.com.
Page 4
Preston Feight Chief Executive Officer
Page 5
Kevin Baney •President •DAF, PACCAR Parts, PACCAR Financial, Investor Relations •PACCAR 32 Years John Rich •Executive Vice President and CTO •Peterbilt, Powertrain, ITD, Global Electronics, Technology •PACCAR 5 Years Today’s Presenters Preston Feight •Chief Executive Officer •PACCAR 28 Years Laura Bloch •Senior Vice President •Kenworth, Purchasing, Dynacraft, Supplier Quality •PACCAR 22 Years Brice Poplawski •Senior Vice President and Chief Financial Officer •Global Manufacturing •PACCAR 28 Years
Page 6
Trucks and Transportation Solutions that Drive the World to a Better Future
Page 7
A Culture of Excellence Premium Trucks Transportation Solutions Market Expansion Profitable Growth Advanced Manufacturing Technology Quality Innovation Foundation
Page 8
2014 2025 PACCAR is Structurally Stronger Deliveries: 142,900 Revenues: $19.0B Adjusted Net Income: $1.4B Return on Revenues: 7.2% Parts & Finance % of Profit: 43% Deliveries: 14 4 ,200 Revenues: $28.4B Adjusted Net Income: $ 2.6 B Return on Revenues: 9.3 % Parts & Finance % of Profit: 71 %
Page 9
PACCAR Parts & Financial Services $200 $363 $485 2005 2015 2025 PFS Profit ($M) Growing Cashflows Through Cycle Customer/Dealer Integration $244 $556 $1,668 2005 2015 2025 Parts Profit ($M) Support Truck Sales
Page 10
PACCAR is Structurally Stronger Adjusted Net Income $1.3B $2.6B 2020 2025 $2.4B $5.0B 2019 2023 Market Troughs Market Peaks
Page 11
0 5,000 10,000 15,000 20,000 25,000 0 5,000 10,000 15,000 20,000 25,000 16 17 18 19 20 21 22 23 24 25 Net Income per Truck $/Truck $/Truck Net Income per Truck Local for Local Production Advanced Manufacturing New Trucks & Engines $9,521 Average $17,827 Average Parts & Financial Services
Page 12
Zero Emissions Vehicles Autonomous Truck Platform Parts Distribution Centers Flexible Manufacturing Connected Vehicle Solutions Clean Combustion Engines Over $ 5B Invested in 5 Years
Page 13
Advanced Manufacturing Autonomous Connected Services Zero Emissions Driving the Future
Page 14
Greater Flexibility in Factories Advanced Material Management Faster Product Development PACCAR Manufacturing PACCAR Parts Internal Development Artificial Intelligence
Page 15
PACCAR is a Global Leader Environmental PACCAR Earned “A” Rating Top 4% of Companies Earned “A” or “A-” For 11 Years. Operational Safety Record OSHA Score of 1.36 in 2025! 0 1 2 3 4 5 6 15 16 17 18 19 20 21 22 23 24 OSHA Recordable Injury/Illness Rate Injuries Per 200,000 Hours Worked PACCAR Peer Average Truck Material Recyclability 90% RecyclableHighest Fuel Economy Lowest GHG Emissions Fuel Efficiency Plastics Glass, Fluids, Other Metals Rubber
Page 16
PACCAR Philanthropy Leadership
Page 17
2,400 Independent Dealer Locations $20 Billion Off - Balance Sheet Asset Strong PACCAR Competitive Moat
Page 18
Best - in - Class Return on Invested Capital 0% 10% 20% 30% 40% 50% 60% 5-Year Average 2020 – 2024 ROIC = NOPAT/(Equity + Manufacturing Debt + Postemployment Benefit Liabilities - Cash) *Iveco ROIC is 4-Year Average 0% 10% 20% 30% 40% 50% 60% 2024
Page 19
0 500 1,000 1,500 0 500 1,000 1,500 16 17 18 19 20 21 22 23 24 25 $ Millions$M Capital and R&D Capital R&D 0% 5% 10% 15% 20% 25% 30% 35% 0% 5% 10% 15% 20% 25% 30% 35% South America Europe Australia North America Market Share 2005 2015 2025 Parts & Finance Growth Investment Strategy Global Market Share Growth Profitable Growth Cycle Over Cycle Strength $200 $363 $485 2005 2015 2025 PFS Profit ($M) $244 $556 $1,668 2005 2015 2025 Parts Profit ($M) 0 1,000 2,000 3,000 4,000 5,000 0 1,000 2,000 3,000 4,000 5,000 16 17 18 19 20 21 22 23 24 25 $M Net Income $M
Page 20
PACCAR is the Leading Industrial Company Demonstrated Cycle Over Cycle Performance Investing in the Right Technology Advanced Manufacturing Strategy Robust Parts & Financial Services Growth Excellent Profitability
Page 21
Products and Manufacturing Laura Bloch Senior Vice President
Page 25
Kenworth T880s High Horsepower
Page 29
DAF XF and XD Electric
Page 30
Rest of World Product Mexico – Kenworth Vocational Australia – Kenworth Andean – DAF Mining Brasil – DAF Offroad
Page 31
PACCAR Heavy Duty Market Share 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% South America Europe Australia North America 2005 2015 2025 Mid-Term Goal Profitable Market Share Growth
Page 32
Best in Class Factory Operations Safety Quality Capacity Efficiency Flexibility Average OSHA Score of 1.36 Across All Factories (2025) Best in Class Quality Capacity Increased by 17% Over the Past 3 Years Deployment of Industry 5.0 & Vision A.I. Technology Local for Local Production
Page 33
2021 – 2025 $ 800 M Flexible Factory Investments Ohio Mississippi Brasil Australia Mexico Europe Texas Canada
Page 34
Ken Mex Chillicothe Denton Ste. Therese Post-Section 232 Finding Tariffs March - November Tariffs on non-USMCA Components Tariffs on Steel and Aluminum No Tariffs on Trucks from Canada and Mexico Local for Local Production Optimally Positioned for Tariffs Tariff Offset Program >50% Reduction in Tariff Charges Tariffs on Trucks from Canada and Mexico
Page 35
Weld Quality Paint Color Match Truck Specification Option Verification
Page 37
Powertrain and Autonomy John Rich Executive Vice President & CTO
Page 38
Customers Drive Our Technology Decisions
Page 39
Optimized Research and Development Strategy Volumes High Stable Technology Path Proprietary Opportunity Supplier Volume Leverage Supplier R&D Expense Regulatory Uncertainty Volumes Uncertain Expensive Development BUILD PARTNER BUY
Page 40
Powertrain Strategy Clean Diesel H2-ICEH2 Fuel Cell Hybrid MONITOR Offer Customers Best Powertrain For Their Needs Battery Electric ACTIVE
Page 41
Emissions Regulations • No Delay in 35 mg NOx Standard; Flexibilities Possible • EPA 27 NOx Technology IncreasesCosts • EPA Widely Expected to Rescind GHG Endangerment • No Changes to Expected GHG and NOx Regulations and Deadlines • NOx 50% Reduction in 2029 (Euro VII) • GHG 28% Reduction in 2030
Page 42
Global Powertrain Mix Forecast 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% 24 25 26 27 28 29 30 Clean Diesel Zero Emissions/Hybrids
Page 43
Next Generation Clean Diesel
Page 44
PACCAR Fuel Economy % Increase Fuel Economy Improvement 60 50 40 30 20 10 0 10 12 14 16 18 20 22 24 26 28 30 Years 40% Improvement Since 2010 NHTSA Fuel Economy Remains (2027 Final Step) New Engine Platforms Meet Standards Without Electrification Fuel Economy Improvements Drive Customer Benefit 60 50 40 30 20 10 0 % Increase
Page 45
PACCAR Zero Emission Truck Lineup Market Specific Models
Page 46
International Truck of the Year
Page 47
AI Enhances Product Lifecycle Powertrain Optimization Agent-Based Coding Digital Twin Verification Capability Speed to Market Quality
Page 48
No Longer “Always 5 Years Away” Maturing Technology Solutions Expanding Operational Scenarios Supplier and Service Ecosystem Solidifying Increasing Scale: > 150 Weekly Autonomous Trips Strong Interest from Carriers and Shippers Planning Initial Commercial Deployments Commercial Traction Level 4 Autonomous Trucking L4 Autonomy Technology
Page 49
Service and Uptime Replacement Parts PACCAR is Integral in Autonomous Trucking Multi-Partner Strategy Advanced Powertrain Controls Sensor Mounting Sensor Cleaning Provision Proprietary Embedded Software Redundant Brakes Redundant Thermal System Redundant Steering High Reliability Power Supply Proprietary Vehicle Systems PACCAR Autonomous Vehicle Platform
Page 50
Autonomy Value Creation and Claims Estimated Costs and Value Created AV Driver PACCAR Fleet Shipper $1.00 $0.73 $0.54 Human Driven Truck $0.65 $0.17$0.05 $0.75 $0.65 Autonomous Truck $2.27 $2.27 AV Driver Hardware Personnel Truck - Finance, Repair, Tires Fuel, Insurance, Permits, Tolls Enhances PACCAR Profit Pools ~$25B Annual Value Creation
Page 51
PACCAR Parts and Financial Services Kevin Baney President
Page 52
Dealer Retail Parts Market Opportunity North America Parts Market Europe & Rest of World Parts Market $45B $25B 13% 15% Overall Market Size PACCAR Parts Market Share $70B Opportunity 5% Point Gain $3.5B Sales 2030
Page 53
2011-2015 2016-2020 2021-2025 27.2% 30.4% $3.6B $6.1B $711M $1.5B Parts 5 - Year Average Sales & Profit $2.8B $448M 25.9% Sales Op. Profit Gross Margin %
Page 54
PACCAR Parts Growth Formula EASE OF DOING BUSINESS Parts Available When & Where Needed PRODUCT SEGMENTATION AI DRIVEN TECHNOLOGY Customer Focused Solutions Full Range of Proprietary & All Makes Products
Page 55
Distribution Network Parts Distribution Centers Dealer and TRP Stores 10 Year Growth 21 Parts Distribution Centers 31% Growth 2,400 Dealer & TRP Stores 33% Growth
Page 56
Ease of Doing Business RIGHT PART RIGHT PLACE RIGHT TIME Managed Dealer Inventory 92% Auto Accept 99.9% Shipping Accuracy PDC Quality 70% <24 Hours Delivery Speed to Market
Page 57
Product Segmentation PACCAR Proprietary Increased Customer Loyalty & Margin Vendor Brands TRP All Makes
Page 58
PACCAR Proprietary Parts New Truck Models Expanded Powertrain Offerings
Page 59
OPTIMIZED MATERIAL MANAGEMENT AI Driven Technology Solutions Parts Available When and Where Needed CONNECTED TRUCK ANALYTICS PERFORMANCE BASED PROGNOSTICS Real-time Vehicle Health Evaluation and Traffic Patterns Customer Service & Maintenance Recommendation
Page 60
PACCAR Parts Growth Formula EASE OF DOING BUSINESS Parts Available When & Where Needed PRODUCT SEGMENTATION AI DRIVEN TECHNOLOGY Customer Focused Solutions Full Range of Proprietary & All Makes Products Market OpportunityFirst Owner Second Owner
Page 61
North America Addressable Parts Market First Owner • 1 - 4 Years • $ 8.0 K Annual Spend Per Truck • 1.6 Million Trucks Second Owner • 5 - 12 Years • $12.0K Annual Spend Per Truck • 2.7 Million Trucks $45 Billion TAM 1 st Owner 2 nd Owner $33B PACCAR Share 21% 13% $12B
Page 62
Second Owner Strategy Grow TRP & Vendor Brand Parts Sales Targeted Distribution Channel Expansion Connected Truck Aftermarket Solutions Expand PACCAR Engine Service Capabilities
Page 63
Second Owner Parts Opportunity Parts Consumption First Owner Second Owner Years 1-4 Years 5-12 380,000
Page 64
Kenworth & Peterbilt Connected Trucks Total Network Traffic is 1.5 Petabytes Equivalent to 320,000 DVDs Kenworth Trucks Peterbilt Trucks
Page 65
PACCAR Parts Growth Formula EASE OF DOING BUSINESS Parts Available When & Where Needed PRODUCT SEGMENTATION AI DRIVEN TECHNOLOGY Customer Focused Solutions Full Range of Proprietary & All Makes Products Market Opportunity First Owner Second Owner
Page 66
PACCAR Financial Services (PFS) PACCAR Financial Offices • Industry Leading Financial Services Provider • Increases Truck Market Share • Enhances Total PACCAR Value Proposition • Supports Dealer Growth
Page 67
Competitive Advantages Finance Products Access to Customers Technology Platform Customer Interest Rates Used Truck Remarketing PACCAR Financial Captives Banks
Page 68
Financial Services Peer Comparison Return on Assets Volvo Financial PACCAR Financial CAT Financial Deere Capital 0% 1% 2% 3% 4% 5% 0% 1% 2% 3% 4% 5% 20 21 22 23 24 TRATON Financial
Page 69
2016-2020 2021-2025 2026-2030 $990M $2.0B Parts & Finance 5 - Year Average Profit Leverage Connected Trucks & AI Driven Technology Parts Second Owner Parts Growth Expand TRP Distribution Network First Owner Parts Loyalty and Growth PACCAR Financial Market Share Growth
Page 70
Financial Review and Shareholder Value Brice Poplawski Senior Vice President and Chief Financial Officer
Page 71
• Full Year 2025 Results − $28.4B Revenues − $2.6B Adjusted Net Income − 144,200 Truck Deliveries • Regular Quarterly Dividend Increased 8% per Year on Average for Last 10 Years PACCAR Financial Performance Overview 120 Years of Superior Performance 87 Consecutive Years of Net Income 85 Consecutive Years of Dividends Paid
Page 72
First Quarter 2026 • Deliveries ~33,000 • Gross Margin 12.5%- 13.0% • Parts Sales Up 2% - 4% from 1Q25 • Financial Services Strong Performance Full Year 2026 • Parts Sales 4% - 8% Growth • CapEx $725M - $775M • R&D $450M - $500M • US & Canada 230 – 270K Units • Europe 280 – 320K Units Business Outlook
Page 73
PACCAR Balance Sheet ($M) Dec. 31, 2025 Dec. 31, 2024 Cash & Securities $9,254 $9,650 Manufacturing Assets $12,279 $11,357 Financial Services Assets $22,803 $22,412 Total Assets $44,336 $43,419 Manufacturing Debt $0 $0 Manufacturing Liabilities $7,891 $8,333 Financial Services Liabilities $17,181 $17,579 Stockholders’ Equity $19,264 $17,507 Total Liabilities & Equity $44,336 $43,419 • Premium Quality Balance Sheet • No Manufacturing Debt • A+/A1 Credit Ratings • Financial Services Assets 51% of Balance Sheet
Page 74
Truck, Parts and Other Gross Profit $2.1B $3.5B 2020 2025 $3.6B $6.4B 2019 2023 Market Troughs Market Peaks
Page 75
0% 3% 6% 9% 12% 15% 18% 0 1,000 2,000 3,000 4,000 5,000 6,000 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Truck, Parts and Other Operating Profit and Margin Operating Profit ($M) Operating Margin (%) Profit ($) Margin (%) Five Year Average (%) $1,490 Average $3,460 Average $1,975 Average
Page 76
Operating Cash Flow 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 $M$M
Page 77
Dividends Per Share 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 16 17 18 19 20 21 22 23 24 25 $ Per Share$ Per Share Quarterly Annual
Page 78
Best - in - Class Operating Efficiency SG&A as % of Revenues 0% 3% 6% 9% 12% 15% 0% 3% 6% 9% 12% 15% 16 17 18 19 20 21 22 23 24 9M25 PACCAR Volvo Daimler Truck TRATON Iveco
Page 79
• High ROI Capital Investments • Growing Dividend Yield • Quarterly and Annual Dividend ~50% of Net Income • Disciplined M&A Process • Fully Funded Pensions Capital Allocation Strategy
Page 80
Capital Investments and R&D Expenses 0 300 600 900 1,200 1,500 0 300 600 900 1,200 1,500 16 17 18 19 20 21 22 23 24 25 26 $M$M Increasing Strategic Investments to Support Future Growth R&D Capital Investments
Page 81
Three Year Industrial Peer Leadership 0% 15% 30% 45% 60% PACCAR Caterpillar Deere Volvo Daimler Cummins Traton Average Return on Invested Capital 0% 5% 10% 15% 20% Deere Caterpillar PACCAR Volvo Cummins Daimler Traton Average Return on Sales 0% 30% 60% 90% 120% PACCAR Caterpillar Cummins Volvo Traton Daimler Deere Cumulative Shareholder Return PACCAR is the Leading Industrial Company
Page 82
0 500 1,000 1,500 0 500 1,000 1,500 16 17 18 19 20 21 22 23 24 25 $ Millions$M Capex and R&D Capital R&D 0% 5% 10% 15% 20% 25% 30% 35% 0% 5% 10% 15% 20% 25% 30% 35% South America Europe Australia North America Market Share 2005 2015 2025 Parts & Finance Growth Capital Investment Global Market Share Growth Profitable Growth Cycle Over Cycle Strength $200 $363 $485 2005 2015 2025 PFS Profit ($M) $244 $556 $1,668 2005 2015 2025 Parts Profit ($M) 0 1,000 2,000 3,000 4,000 5,000 0 1,000 2,000 3,000 4,000 5,000 16 17 18 19 20 21 22 23 24 25 $M Net Income $M
Page 83
PACCAR is the Leading Industrial Company Demonstrated Cycle Over Cycle Performance Investing in the Right Technology Advanced Manufacturing Strategy Robust Parts and Financial Services Growth Excellent Profitability