VOL. XCIV, NO. 247
★ WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES ★
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Thursday, January 1, 2026
PACCAR Inc
PCAR · NASDAQ
Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.
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Overview
PACCAR manufactures premium commercial trucks under Kenworth, Peterbilt and DAF and operates two complementary businesses: aftermarket parts and captive finance/leasing. The Truck segment benefits from premium brand positioning and a dense dealer/service network that supports uptime and resale values. The Parts segment has recurring demand tied to a large installed base and is reinforced by a global parts distribution center network. Financial Services leverages investment-grade funding access and deep integration with the dealer channel, but competes directly with banks and other vehicle finance providers.
Primary segment
Truck
Market structure
Oligopoly
Market share
30%-31% (reported)
HHI: —
Coverage
3 segments · 5 tags
Updated 2026-01-01
Segments
Truck
Commercial truck OEM (heavy- and medium-duty)
Revenue
73.8%
Structure
Oligopoly
Pricing
moderate
Share
30%-31% (reported)
Peers
Parts
Aftermarket parts distribution for commercial trucks and related vehicles
Revenue
19.8%
Structure
Competitive
Pricing
strong
Share
—
Peers
Financial Services
Captive financing and leasing for PACCAR trucks and dealer inventory (retail loans/leases, wholesale)
Revenue
6.2%
Structure
Competitive
Pricing
moderate
Share
24%-26% (reported)
Peers
Moat Claims
Truck
Commercial truck OEM (heavy- and medium-duty)
Revenue share and profit share are computed from 2024 segment 'External Customers' revenues and segment 'Income before income taxes' (excluding corporate/investment income) in the 2024 annual report note on segment data.
Brand Trust
Demand
Brand Trust
Strength
Durability
Confidence
Evidence
Kenworth, Peterbilt and DAF are positioned in premium truck segments with a long-standing reputation for performance, which supports pricing/retention in key fleet categories.
Erosion risks
- Aggressive price competition during downturns
- Electrification/automation shifts brand preference
- Quality issues or recalls that damage brand
Leading indicators
- Net pricing vs input cost inflation
- U.S./Canada Class 8 retail share trend
- Warranty cost trend
Counterarguments
- Competitors offer similarly reliable premium models
- Fleet buyers can switch based on total cost of ownership
Service Field Network
Supply
Service Field Network
Strength
Durability
Confidence
Evidence
Dense independent dealer and mobile service footprint improves uptime and supports residual values; service availability is a key purchase criterion for fleets.
Erosion risks
- Dealer consolidation reducing service quality
- Independent service chains reducing dealer advantage
- OEMs shifting to direct-to-fleet service models
Leading indicators
- Customer uptime / NPS metrics (if disclosed)
- Dealer count / service bay count
- Parts fill rate and repair turnaround time
Counterarguments
- Dealers are independent; incentives may not always align with OEM
- Large fleets can negotiate service support across brands
Capex Knowhow Scale
Supply
Capex Knowhow Scale
Strength
Durability
Confidence
Evidence
Sustained capital + R&D investment supports product refresh cycles, manufacturing efficiency and technology transitions (e.g., zero-emissions, connected services).
Erosion risks
- Government regulation changes product roadmap
- Supplier bargaining power in batteries/electronics
- Technology transition (battery/hydrogen) raises required spend
Leading indicators
- Connected services attach rates
- R&D and capex levels vs peers
- Zero-emissions model launches and production ramp
Counterarguments
- New entrants could partner for technology rather than build internally
- Scale alone may not differentiate if competitors match spend
Parts
Aftermarket parts distribution for commercial trucks and related vehicles
Revenue share and profit share are computed from 2024 segment 'External Customers' revenues and segment 'Income before income taxes' (excluding corporate/investment income) in the 2024 annual report note on segment data.
Installed Base Consumables
Demand
Installed Base Consumables
Strength
Durability
Confidence
Evidence
Large installed base of PACCAR trucks and engines creates recurring demand for replacement parts and service; downtime cost makes availability and OEM compatibility valuable.
Erosion risks
- Right-to-repair pressures increasing parts competition
- Shift to EV architectures with different parts mix
- Third-party parts and remanufactured parts substitution
Leading indicators
- Parts gross margin trend
- Parts revenue per truck in operation
- TRP all-makes store count growth
Counterarguments
- Aftermarket parts are competitive and price-sensitive
- Independent distributors can undercut OEM pricing
Physical Network Density
Supply
Physical Network Density
Strength
Durability
Confidence
Evidence
Global distribution center footprint supports high fill rates and fast delivery to dealer/TRP locations, improving customer uptime and reinforcing preference for the PACCAR network.
Erosion risks
- Competitors matching delivery speed via 3PL networks
- Dealer consolidation shifting volume to fewer nodes
- Logistics disruption or inventory mismanagement
Leading indicators
- Delivery time performance
- Distribution center utilization and expansion
- Fill rate / backorder rate (if disclosed)
Counterarguments
- Customers may multi-source parts to reduce dependency
- Logistics advantages can be replicated with capital and IT
Distribution Control
Supply
Distribution Control
Strength
Durability
Confidence
Evidence
Parts are sold through the same independent dealer network used for trucks, providing a captive channel for OEM parts and service programs.
Erosion risks
- Dealer incentives shift toward all-makes parts
- Fleet customers bypass dealers via direct purchasing
- Online marketplaces reduce channel power
Leading indicators
- Dealer parts attachment rate
- Dealer satisfaction / retention
- TRP penetration in non-PACCAR makes
Counterarguments
- Independent dealers are not exclusive and can sell competing parts
- Large fleets can negotiate directly with competing distributors
Financial Services
Captive financing and leasing for PACCAR trucks and dealer inventory (retail loans/leases, wholesale)
Revenue share and profit share are computed from 2024 segment 'External Customers' revenues and segment 'Income before income taxes' (excluding corporate/investment income) in the 2024 annual report note on segment data.
Cost Of Capital Advantage
Financial
Cost Of Capital Advantage
Strength
Durability
Confidence
Evidence
Investment-grade credit profile and access to term funding can support competitive pricing and resilience through cycles versus smaller niche lenders.
Erosion risks
- Credit rating downgrade
- Higher credit losses in downturns
- Tighter credit markets raising funding costs
Leading indicators
- Credit rating outlook / changes
- Net interest margin trend
- Provision for credit losses and delinquency rates
Counterarguments
- Large banks can have equal or lower funding costs
- Loan pricing is highly competitive and rate-driven
Captive finance integration
Demand
Captive finance integration
Strength
Durability
Confidence
Evidence
Captive finance embedded with the truck/dealer ecosystem (dealer inventory financing + retail financing/leasing) creates relationship stickiness and information advantages tied to collateral, residual values and remarketing.
PFS is positioned as a preferred funding source for PACCAR brands and provides significant dealer inventory financing; remarketing via used-truck centers supports residual value management.
Erosion risks
- OEM sales downturn reduces origination volume
- Regulatory or capital requirements tightening for captives
- Residual value declines harming lease economics
Leading indicators
- Portfolio size and credit performance
- Retail/wholesale penetration rates
- Used-truck resale performance and residuals
Counterarguments
- Captive penetration can fall when competitors subsidize rates
- Customers can obtain financing from banks or independent lessors
Evidence
Annual report describes PACCAR products as selling in premium segments with a reputation for superior performance and pride of ownership.
Annual report states the Kenworth dealer network grew to a record 490 locations (including 321 PremierCare Gold Certified dealerships).
Annual report states the Peterbilt dealer network grew to 432 locations and invested a record $271 million in 2024.
Annual report states dealers increased the Peterbilt mobile service network to over 1,000 vehicles for on-road/on-site repairs.
Annual report states PACCAR invested $1.25 billion in capital projects and R&D (2024), supporting manufacturing efficiency and product development.
Showing 5 of 13 sources.
Risks & Indicators
Erosion risks
- Aggressive price competition during downturns
- Electrification/automation shifts brand preference
- Quality issues or recalls that damage brand
- Dealer consolidation reducing service quality
- Independent service chains reducing dealer advantage
- OEMs shifting to direct-to-fleet service models
Leading indicators
- Net pricing vs input cost inflation
- U.S./Canada Class 8 retail share trend
- Warranty cost trend
- Customer uptime / NPS metrics (if disclosed)
- Dealer count / service bay count
- Parts fill rate and repair turnaround time
Curation & Accuracy
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