Good morning. I'm Mark Pigott, Executive Chairman of PACCAR. I'd like to call the 2026 annual meeting of PACCAR stockholders to order. To begin, please note the meeting protocol set forth on the back of your program. Congratulations to all PACCAR employees for achieving very good results last year. Thank you for your dedication, your ingenuity, and hard work that has enabled the company to grow and prosper. I'm proud of you. The following individuals have been appointed to serve as inspectors of election. Quinn Copelitz, Adam Stewart, and Michelle Wang for PACCAR, and Jennifer Leno for Equiniti. The voting polls, which close at 10:50 AM. If you haven't voted and you need a voting form, please raise your hand and the ushers will give you one.
The corporate secretary advises me that we do have a quorum for this meeting, with approximately 91% of the shares eligible to vote represented in person or by proxy. I'd like to recognize the company's independent auditing firm, EY. Please stand as your name is read. Heath Cruikshank and Chris Anger, PACCAR's Global Audit Partner and Managing Partner. Thank you. I'd like to introduce the directors of the company. Please stand as your name is read. Pierre Breber, Retired Chief Financial Officer, Chevron. Dame Alison Carnwath, Senior Advisor, Evercore Partners. Preston Feight, Chief Executive Officer, PACCAR. Kirk Hachigian, Retired CEO and Chairman, JELD-WEN. Brice Hill, Chief Financial Officer, Applied Materials. Barbara Hulit, Senior Managing Director, Blackstone. John Pigott, Partner, Beta Business Ventures. Luiz Pretti, Former Chief Executive Officer, Cargill, Brazil. Ganesh Ramaswamy, Chief Executive Officer, Southwire Company. Dr. Dietmar Schneider, Managing Director, Jacquelot.
Dietmar Schneider is a new director from Germany. Mark Schulz, President and Chief Executive Officer, M. A. Schulz and Associates, and PACCAR's Lead Director. I, too, am a director. Will the secretary please officially place a nomination the directors who are standing for election?
Mr. Chairman, the Board of Directors of PACCAR Inc. has placed in nomination the 12 individuals named in the proxy statement dated 18 March 2026. Thank you.
Thank you, Mike. This morning, we have three presentations. I will discuss the company's 2025 financial results and the major events that occurred during the year. Preston Feight, PACCAR's CEO, will discuss how PACCAR's truck, finance, and parts organizations delivered excellent results last year, as well as review the company's exciting investments in new products and technologies. Kevin Baney, PACCAR's President, will review PACCAR's strong balance sheet, PACCAR Financial Services business, and review our first quarter results. My father, Chuck Pigott, passed away earlier this year at the wonderful age of 96 years old. Chuck was President and CEO of PACCAR from 1965 to 1996. The legacy of his leadership is a strong and growing PACCAR and a tradition of quality and innovation that continues to benefit our shareholders, employees, and customers. Let's take a moment and bow our heads.
As Chuck would say, let's get on with the business. Trucks move over 70% of all the goods in the regions in which we operate. PACCAR's business segments are commercial vehicles, financial services, aftermarket support, powertrain, and information technology. Each makes a valuable contribution to the company's success and to the global economy. PACCAR is celebrating 121 years of success this year and has delivered an impressive 87 consecutive years of profitability. PACCAR is one of only 13 public companies in the Fortune 500 to achieve that milestone. In addition, PACCAR has paid a dividend every year since 1941. In 2025, PACCAR achieved its fifth best year ever, with revenues of $28.4 billion and net income of $2.4 billion. PACCAR successfully navigated an uncertain world of fluctuating tariffs, supply shortages, and engine emission regulatory guidelines.
Notable highlights include generating $4.4 billion of operating cash flow and achieving a record $19.3 billion of stockholder equity. The company increased its regular quarterly dividend by 13% last year and paid an extra dividend of $1.40 per share in January of this year. All in all, a very good year. This slide highlights PACCAR's financial results for the last 10 years and illustrates how the company has performed in all phases of the economic cycle. As you look at this slide, it's impressive to note that PACCAR has emerged stronger and achieved higher levels of revenue and profitability in every business cycle. The current world of higher fuel prices highlights the benefits of PACCAR's fuel-efficient vehicles, which our customers enjoy.
PACCAR has grown due to the contribution of its excellent employees, our customers and dealers, and by being the innovation leader in the premium segment of the industry. The excellent financial results generated by PACCAR over many years are reflected in its growing market value. Shown here is the market capitalization of global vehicle manufacturers and other companies in 2015 and at year-end 2025. PACCAR's market value has more than tripled in the last 10 years. You can be proud that PACCAR is recognized as one of the leading and most valuable automotive companies and technology companies in the world. Take a moment and take a look at that slide. Takes 30,000 dedicated employees to make that happen, and 2,000 great dealers and thousands and thousands of customers. Shown here are the truck markets for the U.S. and Canada, Europe, and South America.
The U.S. and Canada Class A truck market is expected to be in the range of 230,000-270,000 units this year. The European truck market expected to be in the range of 280,000-320,000 units. South America's heavy-duty truck market projected to be in the range of 100,000-110,000 trucks. Congratulations to Kenworth and Peterbilt for achieving Class eight market share of 30% last year. Customers recognize the industry-leading quality and low total cost of ownership of Kenworth and Peterbilt trucks. Pictured are the Kenworth T680, T880, and the Peterbilt Model 579 and 567. Kenworth and Peterbilt achieved medium-duty market share of 15.9% last year. Pictured are the Kenworth T280 and the Peterbilt Model 220. In Europe, DAF achieved heavy-duty market share of 13.5% last year.
PACCAR is proud, and I hope you are also, that the DAF XF Electric and DAF XD Electric won the International Truck of the Year 2026. DAF is the only European truck manufacturer that has won three Truck of the Year awards in five years. That's saying something. DAF Brazil achieved market share of 8.6% last year. DAF Brazil is exporting trucks to Chile, Peru, and Colombia, and is expanding its factory to meet growing demand in South America. PACCAR has supported communities in which our employees live and work for over 100 years. I'm proud of the company's proactive and generous donations of over $260 million that are delivering important benefits for the medical research, social services, education, and the arts. You can see it, we do it all over the world. Preston Feight, PACCAR's CEO, updates you on the company's successes. Thank you.
Well, thank you, Mark. Good morning, everyone. Good to be with you all. PACCAR has a comprehensive portfolio of industry-leading trucks. These include the Kenworth medium and heavy-duty vehicles that are shown on the left, the DAF Trucks in the middle, and the Peterbilt medium and heavy trucks shown on the right. These vehicles are creating excellent performance for our customers and for our shareholders. PACCAR's global team uses their capability and talent to create trucks that are produced in our excellent factories located in countries around the world. The sales, financial services, and parts teams provide our complete set of trans-transportation solutions to our dealers and our customers. I'm so proud of everyone at PACCAR for their excellent performance. We have a great team. Shown here are the industry-leading Kenworth T680 and the T880.
The T680 on the left provides customers the best fuel economy and elegant styling. The T880 on the right is the premier vocational offering in the industry. These trucks are the premium choices for customers and drivers everywhere. Here's the outstanding Peterbilt Model 579 and Model 589 trucks. The 579 on the left provides Peterbilt dealers and customers class-leading performance and is a favorite truck of fleets all across North America. The new Model 589 on the right, with its classic styling, LED lighting, and its state-of-the-art 2.1 meter wide premium cab, is the truck of choice for proud owners everywhere. Later this year, Kenworth and Peterbilt are introducing fully integrated connected truck platforms. Shown here are the digital displays and how they're beautifully integrated into the luxurious and state-of-the-art Kenworth and Peterbilt vehicles.
The platforms will provide always-on connectivity for our customers and will reduce their cost of operation by enabling PACCAR to deliver over-the-air performance updates and a wide variety of business applications that are designed to meet each customer's needs. Pictured here are the full lineup of DAF vehicles that begin with the medium-duty trucks shown on the left, include the flagship heavy trucks in the middle, and a full range of electric vehicles shown on the right. These excellent trucks are sold in Europe, Australia, South America, Taiwan, Mexico, and many other markets around the world. PACCAR continues its global leadership in the development of zero-emissions vehicles. We're selling a wide range of battery electric vehicles in the heavy and medium-duty markets of Europe and North America.
This broad range of trucks is designed to meet our customers' needs as well as reinforce PACCAR's environmental leadership and readiness for the future. Over the past five years, PACCAR has invested almost $5 billion in new products, facilities, and technologies. A few of those strategic investments are shown here. On the top left, PACCAR has created flexible production factories like the one shown in Denton, Texas. Our flexible factories enable us to optimally adjust to market demands and the dynamic world of regulatory and tariff changes. On the top right is Chillicothe's new robotic chassis paint factory that increases quality and efficiency. On the bottom left, diesel engines are the primary powertrain of choice for PACCAR's customers, and PACCAR's investments in clean diesel engines will ensure it continues its powertrain leadership.
On the bottom right, PACCAR Parts in Europe is building a new distribution center in France to provide more customers with same-day parts delivery. PACCAR's technology is driving the future. We're making strategic investments in zero-emissions technology, are creating industry-leading connected truck platforms, are developing autonomous vehicles, and are using artificial intelligence to enhance efficiency. All of these technologies are being developed to support our customers' needs and to create success for the company today as well as in the years to come. PACCAR's heavy-duty market share has grown over the past 10 years. In South America, share has grown to around 8%. European share has been steady. Australian share has grown to 27.7%. In North America, heavy-duty share has grown to over 30%. PACCAR Parts and our dealers support our customers around the world.
PACCAR has 21 distribution centers in 12 countries, as shown by the yellow dots. PACCAR Parts delivered over 3.1 million shipments to Kenworth, Peterbilt, and DAF dealer locations in 2025. In 2016, PACCAR Parts' global revenue was $3 billion and has now increased to $6.9 billion. The revenue, more than doubling in 10 years, is a testament to PACCAR Parts' technology that provides the right part to the right place at the right time for our customers. Along with revenues, PACCAR Parts' profits have grown. Since 2016, pre-tax profits have increased at an average rate of 13% per year, growing from $544 million to $1.7 billion in 2025. Alongside PACCAR, our independent dealers are also making investments.
In 2025, Kenworth, Peterbilt, and DAF dealers invested over $660 million to provide our customers with world-class support. Shown here are four beautiful new dealerships located in Ohio, Indiana, Brazil, and Germany. Since 2016, PACCAR's global revenue has grown in North America, which is shown in green, Europe in red, and the rest of the world shown in yellow. PACCAR's investments have resulted in revenues growing from $17 billion in 2016 to $28.4 billion in 2025. PACCAR's growth has resulted in strong cycle-over-cycle financial performance. Since 2016, as shown in the top left, revenue has grown by 6% per year. Net income in the top right has grown 18% per year. This reflects increased profits from each PACCAR division.
Total asset growth of 9% per year in the bottom left reflects the strategic investments that PACCAR has made in its products and its facilities. Shown in the bottom right, a substantial portion of the earnings has been reinvested in the business, increasing stockholders' equity by 12% per year to a record $19.3 billion. This is excellent performance for PACCAR and its shareholders. Thank you very much. I'd now like to introduce Kevin Baney, PACCAR's President. Kevin?
Thank you, Preston, and good morning. It's great to be here with you today. As president, it is my first presentation at the shareholder meeting. I'm celebrating 32 years with PACCAR. I started my career in engineering at Peterbilt. I then transferred to Kenworth, where I became general manager, and during the last two years, I've spent a lot of time with the DAF team in Europe. PACCAR's excellent credit rating of A+ reflects 87 consecutive years of profitability, a strong balance sheet, and excellent cash flow. PACCAR is in the top 3% of the over 1,000 U.S. non-financial companies rated by Standard & Poor's. PACCAR's high credit rating supports the profitable growth of our financial services business. PACCAR's net profit as a percent of revenues, shown in green, has been best in class during the last 10 years.
This reflects the premium value of PACCAR's products and exceptional operating efficiency. PACCAR achieved an industry-leading after-tax return on revenues of 8.4% last year, an excellent achievement. PACCAR's return on invested capital has averaged a best in class 47% over the last five years. This reflects our strong working capital management and prudent investments for the long term. Our high performance is a real competitive advantage and is appreciated by investors. Our balance sheet is a pillar of strength, with $9.3 billion in cash and $19.3 billion in stockholders' equity. Manufacturing assets increased to $12.3 billion. Financial services assets of $22.8 billion reflect more trucks in the portfolio and a successful increase in dealer floor plan participation. The company has no manufacturing debt and has record stockholders' equity. PACCAR stockholder equity has almost tripled since 2016 and is currently $19.3 billion.
$13.7 billion of the equity is invested in our manufacturing and aftermarket parts business. The remaining $5.6 billion is invested in financial services. PACCAR's financial strength enables the company to invest in new products and provides the foundation to support our long-term growth initiatives. Last year, the company generated excellent operating cash flow of $4.4 billion. The strong cash flow enables the company to invest in new products and services and pay dividends to our stockholders. PACCAR's regular dividend, shown in green, totaled $694 million last year. Total dividends declared, which includes year-end dividends, shown in red, were $1.4 billion. PACCAR has declared $12.6 billion in dividends during the last decade. PACCAR Financial Services provides financing and leasing options for our customers. With 19 locations, PACCAR Financial offers an extensive suite of services in 26 countries on four continents. PACCAR Financial earned $485 million in pre-tax profit last year.
Total assets increased to $21.3 billion. PACCAR Financial provided financing for 27% of the new Kenworth, Peterbilt, and DAF trucks sold last year. Dealers and customers appreciate our industry-leading technology and full line of financial products. PACCAR sold 17,200 used trucks worldwide across a network of 13 used truck centers. The PACCAR leasing fleet finished last year with 38,300 trucks. PacLease's service network of 682 locations in North America, Europe, and Australia has assets that total $3.3 billion. I'm pleased to present PACCAR's first quarter results. Total PACCAR revenues were $6.777 billion. Net income was $605 million, with earnings per share of $1.15. Thank you.
Kevin, good job on your first presentation. I've been doing this 34 years and it only gets better. It's a good group to work with. You gotta love this group. Would the company secretary please present the results of stockholder voting?
Mr. Chairman, a preliminary report of the inspectors of elections indicates that on item one, stockholders approved the election of the 12 nominees for director. On item two, stockholders approved an advisory resolution on executive compensation. On item three, stockholders approved an advisory vote on the ratification of the company's independent auditors. Thank you.
Thank you, Mike. The meeting is concluded. We have four videos today. The first video highlights the growing success of PACCAR Parts worldwide. The second video shows the impressive history of Peterbilt. The third video explores PACCAR's leadership in AI. The fourth video shares the love and affection that our customers have for their Kenworth vehicles. Enjoy.
At PACCAR Parts, we stay ahead by reaching more customers and increasing customer loyalty. That's why we introduced the Next Customer Program for retail customers, and Next Premium for mid-size fleets that may not yet meet PACCAR Parts Fleet Services requirements. Next is designed for the broad group of DAF retail customers. Members benefit from earning points on every retail parts purchase. Next deals tailored to their day-to-day needs. Key insights from our Parts and Service magazine. Relevant news and legal updates. Next Premium is for mid-size fleets, independent service providers, and body repair shops, offering additional benefits and services such as competitive pricing on all retail purchases, customer-specific offers on parts they don't buy from PACCAR Parts, accelerated points earning to grow customer loyalty. Next is our new standard for retail parts marketing. It's more than a program. It's a partnership for growth.
Since 1939, Peterbilt has moved America forward. When the miles demanded more, Peterbilt answered. Across changing roads to generations of work Peterbilt has been providing individualized solutions for hardworking Americans all centered around to commitment to enduring craftsmanship. Ready with purposeful innovation for what's next. The road ahead is already been written and Peterbilt will be there to carryforward with pride and class. Peterbilt moves America.
It takes a lifetime of experience to become the world's best. Let's go, buddy. Here at Kenworth, our trucks are a reflection of their drivers. For over 100 years, we've built custom trucks to suit the demands of tough jobs everywhere, and the driver always comes first. More than just metal and chrome, Kenworths have become the stuff of legend, trucks with soul. Since 1963, W900s have formed the foundation for generations to build their businesses, make a living, and live a life on the road in the world's best trucks.
You've taken our trucks coast to coast, hauled every load imaginable, seen countless sunrises, and even more sunsets. You share your passion for this icon of the open road, mile after mile, wherever the job takes you. Every time you get behind the wheel of your W900, you add a new chapter to your story, the story of the Kenworth driver out there on the open road, behind the wheel of the most iconic truck of all time. The W900 has been part of countless stories. Continue your story with the W900 Legacy Edition. We built a truck, you built a legacy.
Wonderful meeting. At this time, I'm pleased to answer your questions, or you can just enjoy the wonderful exhibits and our great employees. Okay. Thank you for being at the PACCAR Annual Meeting. See you next year