PACCAR receives very little media attention, as is a company that I know fondly from work experience and through the transportation sector.
PACCAR is a global manufacturer of premium commercial trucks, and the trucks are the cyclical part. Bolted to every truck it sells are two businesses that are not: an aftermarket parts operation and a captive finance arm, each of which earns a steady, high-margin return long after the truck is delivered. In 2025 those two businesses set revenue records while truck sales fell by more than a fifth. That is the annuity inside the cycle, and it is what a value investor is really buying. Feel free to ask me questions.
The article will go through the following pieces:
**- The Q2 2026 print: the recovery arrives**
**- The business: premium trucks and two recurring-revenue segments**
**- The financials: read the cycle, not the single year**
**- Capital allocation: dividends over expansion**
**- Valuation: the trough discount has closed**
**- The counter-case**
# The verdict: a wonderful business, now fully priced
