Paccar Inc (PCAR) is a leading global technology company designing, manufacturing, and distributing light, medium, and heavy-duty commercial trucks under the Kenworth, Peterbilt, and DAF nameplates. Operating in the industrials sector, the company has demonstrated consistent profitability with a solid 10.73% net profit margin and strong return on equity of 19.90%. This comprehensive analysis provides a detailed, fact-based examination of Paccar’s financial position, ownership structure, and realistic share price projections through 2030 based on current market data and publicly available financial metrics as of February 2026.
Core Business Segments: Truck manufacturing (Kenworth, Peterbilt, DAF), Parts distribution, Financial services (Paccar Financial), and Aftermarket support
Key Products/Services: Heavy-duty and medium-duty trucks, truck parts and components, financial services including retail loan and lease financing, and aftermarket support services
Major Clients/Markets: Trucking companies, fleet operators, independent owner-operators, and commercial vehicle dealers across North America, Europe, South America, Australia, and other international markets
Competitive Edge: Strong brand recognition with Kenworth, Peterbilt, and DAF nameplates, vertically integrated manufacturing capabilities, extensive dealer network, proprietary financial services arm, and technological leadership in fuel efficiency and emissions reduction
Ownership Structure: Publicly held corporation with a professional management team and a strong institutional ownership base
Current market conditions and industry trends support steady growth in commercial truck demand
Strong order backlog and production capacity utilization are driving revenue growth across North American and European markets
Potential headwinds from economic uncertainty and supply chain constraints may limit near-term upside despite strong fundamentals
Paccar Inc Share Price Target 2027
Share Price Target 1
Share Price Target 2
$110
$150
Expected acceleration in electric and alternative fuel truck adoption, driving increased volume growth beyond traditional diesel markets
Continued expansion of parts and financial services revenue streams, providing new growth opportunities
Potential for improved operational efficiency and margin expansion as production scales globally
Paccar Inc Share Price Target 2028
Share Price Target 1
Share Price Target 2
$120
$170
Full realization of strategic initiatives in next-generation truck technologies and autonomous driving capabilities supporting long-term growth
Geographic expansion into underpenetrated markets, providing incremental revenue growth beyond current mature markets
Potential for strategic acquisitions or partnerships to enhance technology capabilities and market reach
Paccar Inc Share Price Target 2029
Share Price Target 1
Share Price Target 2
$130
$190
Established market leadership position in commercial truck manufacturing with significant competitive moat and pricing power
Continued strong cash generation with predictable recurring revenue from parts and financial services segments
Potential for increased dividend payouts or share repurchase activity as growth moderates and cash position strengthens
Paccar Inc Share Price Target 2030
Share Price Target 1
Share Price Target 2
$140
$210
Mature business model with diversified revenue streams across truck manufacturing, parts distribution, and financial services segments
Potential for improved profitability metrics as the company optimizes its global operations and supply chain
Continued innovation in truck technology and sustainability, maintaining a competitive advantage in the evolving transportation landscape
Paccar Inc Share Price Target 2035
Share Price Target 1
Share Price Target 2
$190
$280
Long-term growth driven by expanding global trade and infrastructure development trends
Strategic positioning in next-generation commercial vehicle solutions, providing a multi-decade growth runway
Potential for dividend growth and increased shareholder returns as capital expenditure requirements moderate
Paccar Inc Share Price Target 2040
Share Price Target 1
Share Price Target 2
$260
$390
Established global infrastructure supporting steady cash flow generation across economic cycles
Potential market leadership in sustainable trucking solutions and next-generation transportation technologies
Continued dividend growth and capital return programs benefit long-term shareholders
Paccar Inc Share Price Target 2050
Share Price Target 1
Share Price Target 2
$420
$650
Multi-decade compound growth from global transportation industry expansion and changing logistics patterns
Potential for significant market share gains in emerging applications and geographic regions
Long-term value creation through technology leadership and market expansion
Paccar Inc: Shareholding Pattern
Category
Percentage Holding
Institutional Investors
85.25%
Insiders
0.95%
Retail/Public
13.80%
Paccar Inc: Top 10 Institutional Holders
Institutional Holder
Percentage Holding
The Vanguard Group, Inc.
9.87%
BlackRock, Inc.
8.65%
FMR LLC
7.42%
Capital Research and Management Company
6.98%
State Street Global Advisors
4.56%
Baillie Gifford & Co
3.89%
Norges Bank Investment Management
2.74%
Wellington Management Group LLP
2.45%
Northern Trust Corp
1.98%
Bank of America Corporation
1.76%
Paccar Inc: Strengths vs Risks
Strengths:
Strong profitability metrics with 10.73% net profit margin and 19.90% return on equity, demonstrating effective capital utilization
Diversified revenue streams from truck manufacturing, parts distribution, and financial services, reducing concentration risk
Strong brand portfolio with Kenworth, Peterbilt, and DAF nameplates, creating a significant competitive moat
Extensive dealer network and customer relationships providing recurring revenue from parts and service
Consistent dividend payments with 1.39% yield, providing income for shareholders
Risks:
Elevated debt-to-equity ratio of 86.87%, creating financial leverage concerns during economic downturns
Exposure to the cyclical nature of the commercial truck industry affects demand during economic recessions
Intense competition from established truck manufacturers and emerging electric vehicle companies
Dependence on global economic conditions and freight transportation volumes
Regulatory changes affecting emissions standards and fuel efficiency requirements are creating operational challenges
Investment Suitability
Factor
Assessment
Risk Profile
Moderate
Time Horizon
Long-term (5+ years)
Volatility
Low to Moderate (Beta 0.95)
Dividend/Income
Yes (1.39% yield)
Ideal Investor
Income-focused investors seeking exposure to transportation and manufacturing sectors with moderate growth potential
FAQs
The realistic share price target range for Paccar in 2026 is between $100 and $130, based on current market conditions and industry growth projections.
The projected share price target range for Paccar in 2030 is between $140 and $210, assuming continued strong execution in commercial truck manufacturing and parts distribution markets.
Long-term projections beyond 2030 become increasingly speculative due to unpredictable economic cycles, technological changes, and regulatory environments. The ranges provided represent potential scenarios based on historical growth trends but should be viewed with appropriate caution.
Paccar is a publicly traded company with approximately 85.25% institutional ownership, insider holdings of 0.95%, and the remaining 13.80% held by retail investors.
Yes, Paccar pays dividends with a current yield of 1.39% and an annual dividend of $1.32 per share, providing regular income for shareholders.
Recent share price fluctuations may be attributed to market-wide industrial sector volatility, concerns about economic growth affecting commercial truck demand, or profit-taking after reaching near 52-week highs of $118.81.
Paccar is not debt-free but maintains a debt-to-equity ratio of 86.87%, which is typical for manufacturing companies with significant capital expenditure requirements and stable cash flows.
Final Verdict
Paccar presents a solid investment opportunity for income-focused investors seeking exposure to the transportation and manufacturing sectors with an attractive dividend yield and operational stability. The company’s 10.73% net profit margin and 19.90% return on equity demonstrate effective capital utilization and business model strength. However, investors must carefully consider the elevated debt levels, exposure to commercial truck industry cycles, and competitive pressures in the rapidly evolving transportation landscape. The stock may appeal to conservative investors seeking dividend income with lower volatility compared to growth-oriented technology stocks, though those seeking high capital appreciation may find the growth profile limiting. The company’s strategic focus on next-generation truck technologies and geographic expansion provides potential for sustained growth while maintaining its defensive positioning in the industrials sector.
Hi, I’m Raj Mittal, a stock market content writer focused on company analysis, share price trends, and fundamental research. I create simple, research-based insights to help investors make smarter market decisions.
