Operating cash flow remains resilient with a 1.61 ratio to net income in 2026Q1, though free cash flow margins have shown high volatility, ranging from -0.8% to 18.3% over the last nine quarters.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 4.48B | 4.42B | 4.64B | 4.19B | 3.03B | 2.19B | 2.99B | 2.86B | 2.99B | 2.72B | 2.3B | 2.56B | 2.12B | 2.38B | 1.52B | 1.59B | 1.55B | 1.37B | 1.3B | 2.06B | 1.85B | 986.8M | 891M | 818.7M | 795.4M | 625.7M | 519.6M | 840.2M | 653.8M | 438.4M | 358.3M |
| Operating CF Margin % | - | 15.52% | 13.79% | 11.93% | 10.5% | 9.3% | 15.95% | 11.17% | 12.74% | 13.96% | 13.51% | 13.37% | 11.18% | 13.87% | 8.91% | 9.74% | 15.07% | 18.11% | 9.13% | 13.5% | 11.26% | 7.02% | 7.82% | 9.99% | 11.02% | 10.26% | 6.56% | 9.31% | 8.28% | 6.48% | 7.79% |
| Operating CF Growth % | 94.1% | -4.85% | 10.76% | 38.42% | 38.43% | -26.8% | 4.44% | -4.41% | 10.18% | 18.04% | -9.98% | 20.36% | -10.61% | 56.4% | -4.62% | 2.66% | 12.97% | 5.24% | -36.51% | 10.94% | 87.75% | 10.75% | 8.83% | 2.93% | 27.12% | 20.42% | -38.16% | 28.51% | 49.13% | 22.36% | 20.11% |
| Net Income | 2.48B | 2.38B | 4.16B | 4.6B | 3.01B | 1.87B | 1.3B | 2.39B | 2.2B | 1.68B | 521.7M | 1.6B | 1.36B | 1.17B | 1.11B | 1.04B | 457.6M | 111.9M | 1.02B | 1.23B | 1.5B | 1.13B | 906.8M | 526.5M | 372M | 173.6M | 441.8M | 583.6M | 416.8M | 344.6M | 201M |
| Depreciation & Amortization | 622.3M | 827.4M | 916.9M | 923.9M | 790.2M | 903.3M | 1.05B | 1.08B | 1.05B | 1.11B | 993.1M | 907.1M | 917.7M | 810.7M | 700.9M | 673.8M | 623.2M | 651.7M | 649.4M | 526.4M | 434.6M | 370.1M | 315M | 267.5M | 218.2M | 179.9M | 155.5M | 146.9M | 123.9M | 112M | 81.1M |
| Stock-Based Compensation | 42.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 174.1M | 333.1M | -79.3M | -303.7M | -208M | -208.6M | 400K | 70.8M | 17.5M | -173.9M | 30.9M | -55.2M | -98M | 97.3M | 151.7M | 224.1M | 46.3M | 159.7M | 131M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1M |
| Other Non-Cash Items | 595.7M | 160.7M | 61.1M | 50.5M | -19.7M | -4.3M | -135.7M | 6.3M | -37.3M | -4.7M | -137M | -3.9M | -25.3M | 23.3M | -136.8M | -15.4M | 8.7M | -113.7M | 101.8M | 40M | 95M | 20.6M | 37.5M | 50.3M | 102.6M | 127.5M | 58.8M | -8.3M | 71.7M | -54.2M | 8.5M |
| Working Capital Changes | 566.8M | 718.8M | -419.8M | -1.08B | -547.1M | -369.2M | 772.3M | -682M | -237.1M | 111.7M | 892.1M | 104M | -29.6M | 273.1M | -308.4M | -332.2M | 415.6M | 563.7M | -595.2M | 261.7M | -172.9M | -537.1M | -368.3M | -25.6M | 102.6M | 144.7M | -136.5M | 118M | 41.4M | 36M | 66.7M |
| Change in Receivables | 1.31B | 1.11B | -321.8M | -1.7B | -1.38B | -322.1M | 993M | -592.5M | -811.4M | -465.7M | 455.9M | -174.7M | -437.2M | -299.4M | -117.9M | -1.1B | 23.7M | 805M | -249M | 265.2M | -377.5M | -673.3M | -515.4M | -32.8M | 39.3M | 78.6M | -20.4M | -19.1M | -39M | -108.5M | -39.5M |
| Change in Inventory | 233.7M | 296.4M | 42.5M | -350.7M | -272.7M | -628M | -51.9M | 24.6M | -332.7M | -149.9M | 64.1M | 64.3M | -189.5M | -39.6M | -61.5M | -187.1M | 96.6M | 53.4M | -85.2M | 114.4M | -168.5M | -30.1M | -142.1M | 23.6M | -15.9M | 23.8M | 65.9M | 7.5M | -88M | -44.9M | 33.9M |
| Change in Payables | -156.2M | -432.6M | 279.4M | 0 | 0 | 0 | -53.6M | -27.6M | 528.9M | 333.6M | -8.6M | -162.6M | 252.3M | 240.8M | -303.6M | 585M | 221.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -1.95B | -2.27B | -4.49B | -2.87B | -2.03B | -1.36B | -1.88B | -2.21B | -1.93B | -1.96B | -1.56B | -1.97B | -1.53B | -2.15B | -2.59B | -2.42B | -467.1M | 310.6M | -251.9M | -1.3B | -1.83B | -1.5B | -1.21B | -239.3M | -593M | 75.1M | -577.6M | -1.23B | -960M | -259.3M | -488.5M |
| Capital Expenditures | -1.06B | -1.39B | -1.75B | -1.26B | -1.39B | -1.63B | -1.64B | -1.97B | -1.95B | -1.85B | -1.96B | -1.73B | -1.54B | -1.87B | -1.8B | -1.65B | -168.4M | -127.7M | -1.55B | -1.27B | -954.3M | -848.5M | -633.5M | -369.3M | -340.2M | -309.3M | -220.1M | -306.4M | -298M | -133M | -588.4M |
| CapEx % of Revenue | 3.89% | 4.87% | 5.19% | 3.59% | 4.82% | 6.94% | 8.75% | 7.7% | 8.31% | 9.49% | 11.54% | 9.03% | 8.09% | 10.94% | 10.58% | 10.07% | 1.64% | 1.68% | 10.85% | 8.33% | 5.8% | 6.04% | 5.56% | 4.51% | 4.71% | 5.07% | 2.78% | 3.4% | 3.77% | 1.97% | 12.78% |
| Acquisitions | 328M | 680.8M | 0 | 0 | 687.7M | -727M | -597.8M | 638.1M | 653.7M | 470.7M | 433.8M | -1.04B | -1.24B | 0 | 0 | -1.14B | -715.4M | -843.3M | -1.09B | 240.1M | 162.2M | 96.1M | 103.2M | 30.9M | 28.5M | 18.8M | 36.1M | 143.2M | 44.3M | 146.7M | 43.7M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -706.2M | -1.02B | -1.78B | -1.44B | -1.88B | 446.2M | 7.2M | -739.6M | -294M | 72.8M | 127.7M | 44.6M | 371.1M | -177M | -504M | -299.9M | 256.9M | 317.6M | 1.81B | -332.1M | -801.2M | -712.9M | -510M | -53.2M | -159.1M | 373.8M | -533.5M | -935.5M | -685.3M | -221.6M | -90.6M |
| Cash from Financing | -2.5B | -3.08B | -123.1M | 1.1B | 304.9M | -882.9M | -1.81B | 83.4M | 71.1M | -393.8M | -823.5M | -196.5M | -520.5M | 273.8M | 209.5M | 946.1M | -960.4M | -1.82B | -868.1M | -838.5M | 42.5M | 721M | 516.3M | -130.7M | -159.1M | -552.5M | 78.1M | 526.5M | 412.5M | -95.5M | 171.9M |
| Debt Issued (Net) | -416.7M | -822.6M | 2.12B | 2.57B | 1.28B | -210.9M | -580.3M | 1.27B | 1.21B | 125.2M | 46.9M | 663.8M | 116.9M | 525.9M | 1.17B | 1.49B | -730.7M | -1.6B | -19.8M | 227.9M | 847.2M | 1.57B | 879.2M | 17.4M | -58.5M | -396.1M | 388.4M | 709.9M | 569.5M | 7.6M | 327.4M |
| Equity Issued (Net) | -13.2M | 7.3M | -4.5M | -3.5M | -2.1M | -1.5M | -42.1M | -110.2M | -354.4M | 0 | -70.5M | -201.6M | -42.7M | 0 | -162.1M | -337.6M | 0 | 0 | -219.1M | -329.7M | -274.3M | -355.3M | -92M | 23.8M | 22.4M | 12M | -92.8M | 4.7M | 0 | 0 | 0 |
| Dividends Paid | -1.43B | -2.27B | -2.29B | -1.52B | -1B | -708M | -1.24B | -1.14B | -804.3M | -558.3M | -829.3M | -680.5M | -623.8M | -283.1M | -809.5M | -217.4M | -251.7M | -232.1M | -629.2M | -736.7M | -530.4M | -496.9M | -270.9M | -171.9M | -123M | -168.4M | -217.5M | -188.1M | -163.6M | -103.1M | -155.5M |
| Share Repurchases | -36.6M | -36.1M | -4.5M | -3.5M | -2.1M | -1.5M | -42.1M | -110.2M | -354.4M | 0 | -70.5M | -201.6M | -42.7M | 0 | -162.1M | -337.6M | -22M | 0 | -230.6M | -360.5M | -312M | -367.2M | -107.7M | 0 | 0 | 0 | -105.8M | 0 | 0 | 0 | 0 |
| Other Financing | -640M | 0 | 51.9M | 51.5M | 35.7M | 37.5M | 53.7M | 60.8M | 19.3M | 39.3M | 29.4M | 21.8M | 29.1M | 31M | 13.9M | 10.9M | 22M | 17.6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 6.6M | 0 | 0 |
| Net Change in Cash | 127.1M | -752.9M | -120.9M | 2.49B | 1.26B | -111.3M | -635.5M | 739.2M | 1.07B | 449M | -100.7M | 278.8M | -12.5M | 477.7M | -834.3M | 65.9M | 128.8M | -43.2M | 97.1M | 5.6M | 153.6M | 84.2M | 267.7M | 574M | 117.8M | 118.5M | 8.3M | 96M | 94.5M | 115M | 38.9M |
| Free Cash Flow | 3.42B | 3.03B | 2.9B | 2.93B | 1.64B | 553.9M | 1.35B | 889.5M | 1.04B | 869.2M | 335.9M | 830.8M | 586.3M | 502.9M | -284.4M | -54.7M | 1.38B | 1.25B | -245.1M | 788M | 898.4M | 138.3M | 257.5M | 449.4M | 455.2M | 316.4M | 299.5M | 533.8M | 355.8M | 305.4M | -230.1M |
| FCF Margin % | 12.54% | 10.65% | 8.6% | 8.33% | 5.68% | 2.35% | 7.2% | 3.47% | 4.43% | 4.47% | 1.97% | 4.35% | 3.09% | 2.94% | -1.67% | -0.33% | 13.44% | 16.42% | -1.72% | 5.18% | 5.46% | 0.98% | 2.26% | 5.48% | 6.31% | 5.19% | 3.78% | 5.92% | 4.51% | 4.52% | -5% |
| FCF Growth % | 44.61% | 4.62% | -1.1% | 78.89% | 195.45% | -58.93% | 51.64% | -14.47% | 19.65% | 158.77% | -59.57% | 41.7% | 16.58% | 276.83% | -419.93% | -103.96% | 11.03% | 608.2% | -131.1% | -12.29% | 549.6% | -46.29% | -42.7% | -1.27% | 43.87% | 5.64% | -43.89% | 50.03% | 16.5% | 232.72% | -212.46% |
| FCF per Share | 6.48 | 5.75 | 5.50 | 5.58 | 3.13 | 1.06 | 2.59 | 1.71 | 1.97 | 1.64 | 0.64 | 1.56 | 1.10 | 0.94 | -0.53 | -0.10 | 2.52 | 2.28 | -0.45 | 1.41 | 1.59 | 0.24 | 0.43 | 0.76 | 0.77 | 0.54 | 0.51 | 0.89 | 0.60 | 0.52 | -0.39 |
| FCF Conversion (FCF/Net Income) | 1.38x | 1.86x | 1.12x | 0.91x | 1.01x | 1.17x | 2.30x | 1.20x | 1.36x | 1.62x | 4.41x | 1.59x | 1.56x | 2.03x | 1.37x | 1.53x | 3.39x | 12.27x | 1.28x | 1.67x | 1.24x | 0.87x | 0.98x | 1.55x | 2.14x | 3.60x | 1.18x | 1.44x | 1.57x | 1.27x | 1.78x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cyclical demand and pricing
As reported in recent financial statements, PACCAR's operating cash flow to net income ratio reached 1.61 in 2026Q1, suggesting that cash generation remains significantly higher than accounting earnings during the current period of cyclical revenue contraction and margin compression across the core truck manufacturing segment.
The consistent premium of operating cash flow over net income indicates that non-cash charges and working capital releases are currently buffering the impact of declining profitability. Investors should monitor whether this conversion quality persists as the company exhausts its ability to liquidate inventory or manage payables during a prolonged industry downturn.
Based on PACCAR's quarterly filings, free cash flow margins have fluctuated significantly, ranging from a low of -0.8% in 2024Q2 to a high of 18.3% in 2025Q3, highlighting the inherent sensitivity of the company's cash generation to the volatile demand cycles of the heavy-duty truck market.
The wide variance in free cash flow suggests that PACCAR's cash trajectory is highly dependent on the timing of large fleet deliveries and the subsequent impact on working capital. While the 2026Q1 FCF margin of 15.6% appears robust, it may be artificially supported by reduced capital expenditure rather than sustained operational efficiency.
According to historical data, PACCAR's capital expenditure as a percentage of revenue has averaged between 4% and 6.4%, reflecting a disciplined approach to maintaining manufacturing capacity while navigating the transition toward new powertrain technologies in a cooling freight environment.
The absence of capital expenditure in 2026Q1 warrants further investigation, as it may suggest a temporary pause in growth-related investments or a shift in accounting treatment for major projects. This capital restraint appears to be a defensive mechanism to preserve liquidity while the company faces significant top-line headwinds.
As indicated by the provided cash flow data, working capital changes have been highly inconsistent, swinging from a $920.4 million outflow in 2024Q2 to a $365.6 million inflow in 2024Q4, which complicates the assessment of underlying operational efficiency during this period of cyclical normalization.
These swings suggest that PACCAR is actively managing its inventory and payables to smooth out the cash flow impact of fluctuating truck demand. Investors should be cautious, as reliance on working capital adjustments to support cash flow can often mask underlying deterioration in the core business's ability to generate organic cash.
Based on recent financial disclosures, PACCAR has maintained a consistent commitment to shareholder returns, including a notable $1.8 billion dividend payment in 2024Q1, even as the company navigates a challenging environment characterized by a -15.50% year-over-year decline in reported revenue.
The company's willingness to return substantial capital to shareholders during a cyclical trough suggests a high degree of confidence in its balance sheet liquidity. However, this strategy may limit the firm's flexibility to fund the significant R&D required for the transition to zero-emission vehicle platforms.
Quick answers to the most common questions about buying PCAR stock.
PACCAR Inc (PCAR) generated $4.42B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
PACCAR Inc (PCAR) generated $3.03B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
PACCAR Inc (PCAR) spent $1.39B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, PACCAR Inc (PCAR) returned $2.27B to shareholders via cash dividends and spent $36.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.