PACCAR (PCAR) 23 Jan 242023 Q4 Earnings call transcript

Good morning, and welcome to PACCAR's Fourth Quarter 2023 Earnings Conference Call .[Operator Instructions]. Today's call is being recorded, and if anyone has an objection, they should disconnect at this time.

I would now like to introduce Mr. Ken Hastings, PACCAR's Director of Investor Relations. Mr. ahead. go please Hastings,

this would Officer; on welcome is the of and President joining PACCAR's We Executive Feight, phone Harrie Controller. Brice Officer; Ken listening Poplawski, and Director Schippers, me And Relations. those webcast. Chief Investor are like morning. Preston those Chief Financial to and by Hastings, morning and Good My President name Vice

mode. of Certain prior general calls, that presented and in we the members media results. conference any participate risks on affect with may be As a economic will that listen-only information today involve conditions forward-looking line the ask expected and and competitive including uncertainties,

information, page the additional For SEC see Investor of filings Relations and please our paccar.com.

would to now I like introduce Preston Feight.

and record on Ken XXXX update morning. highlights. other year full Harrie, fourth and as I a well results as business Brice, you will quarter Good

the PACCAR's the and quality trucks with outstanding by employees customers in delivered providing our highest industry. solutions excellent transportation results the

achieved $XX.X on revenue revenues PACCAR return All were X In of XX.X%. after-tax income records. billion, of billion an of XXXX, annual $X.X and net

benefited financial DAF, and results financial PACCAR's division Kenworth our performance innovative trucks, strong deliveries record record and in performance. services strong parts from Peterbilt's of

past in the from billion shareholders customers and state-of-the-art PACCAR benefited new facilities technologies. invested XX over and $X.X world-class the years products,

including since dividends, XX achieved in XXXX, In XXXX. PACCAR per year extra paid consecutive per share. declared of every share $X.XX PACCAR years record dividend of has net cash and a a $X.XX dividend income an

quarter $XXX Brazil. provision than the $X.XX in billion. net PACCAR's Fourth fourth higher which income billion, revenues was Quarterly was net year. a release XX% million included income record $X were tax quarter prior a

and pretax $XXX around of forecast the fourth Parts for to are $X.XX In revenues trucks be first PACCAR XXXX, billion quarter the PACCAR delivered of quarter deliveries profits XX,XXX fourth XXXX, of and quarter of XX,XXX. million. achieved

vocational the the than and segments increased performance year and customers experiencing expand XXX,XXX. are from economy units. strong projected U.S. from truck and retail of benefiting sales less new XXX,XXX the were U.S. Peterbilt full medium-duty truck year, and truckload Peterbilt's superior In Last XXXX, X within deliveries sector, Kenworth is the XX,XXX demand Canadian Kenworth and Class models. truck to to are

X XXXX and a XXX,XXX forecast market is U.S. The Canadian range Class be truck XXX,XXX in to vehicles. to of

competitive above European interior. XXXX European increased trucks to European DAF's last These aerodynamic DAF's market DAF's most record the and appreciate of unique features trucks. comfort were a to efficiency XX,XXX largest registrations in XX-tonne truck an that due industry-leading luxurious the premium year. advantage XXX,XXX customers fuel innovative and cab trucks. driver a have deliveries the design

European economy grow modestly. the XXXX, In forecast to is

in We be expect truck range of above the XX-tonne the XXX,XXX. to to XXX,XXX registrations

is this vehicles truck South Last and year, XX-tonne XXX,XXX year. was American the to market be similar above expected

In Brazil, record growing a a up contribution X.X% to XX.X% DAF DAF makes global from achieved share, Brazil last PACCAR's success. year.

truck and year strong parts quarter and full parts We quarter range parts fourth worldwide PACCAR's were gross in the of and estimate be margins and other margins PACCAR strong XX%. business. excellent were XX.X% in reflecting truck and XX.X% XX.X% remain gross to to the first deliveries truck

and joint new fuel-efficient electric including for Truck truck Europe. as another a net award assembly opened earned manufacture the highlights, records. year XXXX Green DAF with venture batteries. revenue announced PACCAR many the most vehicle and great income was commercial a truck PACCAR plant in to

being looking its XXth its year. Parts another to anniversary. PACCAR excellent XXX-year XXXX celebrated forward Kenworth celebrated and anniversary We're

on Schippers provide an Harrie now will Parts, Financial highlights. Services PACCAR PACCAR and business Harrie? update other

sales climbed by profits. by XX% revenues profit billion, XX% $X.X margins Parts new for part to increased records year. X% grow first In last the Annual XX.X%, and up quarter by estimate quarter first of to year. you, increased We to year to billion. from record XXXX, to and this gross Preston. XX.X% in compared set in the Thank $X.X PACCAR to Parts the X% prior revenues pretax

new investments parts benefits Parts which connected PDCs long-term services that the has vehicle Masbat with increase aftermarket excellent XX reflects PACCAR PACCAR's or parts construction of strong of and for and Distribution is of Germany, its network this through uptime the Parts' customers. PACCAR convenience business later year. businesses global open will cycle. and Centers profitability expanding worldwide phases distribution in growth a the PDC provide all

PACCAR achieved $XXX The PACCAR experience assets used million. of normalized to income billion. portfolio sales trucks. pretax $XXX XXXX. good used Annual and $XX truck income Services market to volumes a its of Financial increased million in fourth pretax premium quarter was continues

well low to excellent invested with and portfolio use, PACCAR Last quality. in Financial continues capital in credit million past and projects million $XXX larger the perform PACCAR research development. $XXX and year,

million increased technology an industry-leading planning range the innovation invested expenses continue key in and $XXX XXXX, we on and to $XXX in invest to capital capital to million return range million, $XXX $XXX the PACCAR's as of projects. XX%. of investments to in million R&D In we're

next-generation engines and vehicle new driver hydrogen connected clean and conversion systems services. include battery assistance These advanced electric powertrains,

Kenworth also is future engine remanufacturing venture. cell battery Columbus, expansions Chillicothe, in Mississippi, Ohio. Teca factory in To manufacturing remissions at PACCAR including Mexico investing support additional facility A growth, capacity. joint truck factory and and new

independent XXX, to distribution significant industry-leading Model a Peterbilt this PACCAR's new and network Peterbilt Kenworth, their which long-term enhancing dealers in production the invest PACCAR's our contribution to month. began making dove about and success. businesses, excited continue We're

you. pleased PACCAR outstanding year a your answer start. be this in questions to off XXXX had an year and to Thank good it's very We'd

from Instructions] Nicole. question Bank from Deutsche DeBlase is first today Nicole [Operator Our

in the And deliveries. step fall orders little your the implied a to down? across is for December? about that with high that point XQ that all just of build Maybe bit given talk year Could the expectation sequential of started outlook then just is you guess starting kind I Is the for XQ see we regions.

we think one doing me really doing and strong is is time Australia well. take see the Mexico right, being global markets, let Well, that really that for is say well. what I

and high we XXXX we levels, is seen which what said XXX, XXX South North steady our Europe, to kind really doing is to in very probably in we've America XX% is is deliveries market the XX% in see is that's lower, of Europe. at normalization well. which and America in .

in and far I intake the I'm can As not visibility. North that major as our good sure slowdown see orders, American we in order markets, good recognize

pricing a for XXXX? from Okay. what perspective, And what talk in just little just seeing you industry can guys it. any expectations bit price you're Got then a for to realize guys you and should respect with about pricing

we in I what is -- our Thanks, and worth last I years. have times, going we product think lineup it's many is, on shared we've entire few the refreshed mean repeating have this Nicole. but

in have the result of delivering kind are award really product, . world as Green seeing products were performance that Truck the new realization we're good awarded the to that high-performing of as for that for trucks pricing most of excellent DAF fuel-efficient the results PACCAR. latest recognition for Europe that the in We of I products is a customers. product the that And the Europe, think around

from Castillo Angel from Our next Morgan is question today Stanley.

was if kind and of just give little price how of and a overall. bit I expand to more into sense about you're kind of dynamic. more underlying of for could on a for the you cost maybe thinking just dig that So wondering kind XXXX decrementals pricing kind of in a margins

quarter you to for think margins. first XX% XX.X% I to guided the on gross

see we the So should year color again more that give progressing? you on maybe if and full could a how bit little

Yes. Well, first for the of the thanks comment on all, year.

of all And amount I an around we that credit now. wonderful think our for deserves the the continuing world incredible team right see performance.

that cost On good against now. price Angel, we price right we cost the level have standpoint, think

going that Europe, we we expect good bit look mentioned and I on, That's X% lower only in size. a there's thing America We to But see digits, the the the price continue we cost to market as performance. both expect but Europe market in versus markets already single Obviously, really XX% forward. good as normalization North sizes. of and little see

year. information the year. analysis things share on the get to don't the we full we know, as you into We'll as of further get And quarter-by-quarter

bit. you that switching Understood. a And little to maybe X% just over to XXXX. X% for The guided parts to

you seeing more into of down the that you're terms could break bit assumptions. pieces in of if what a of curious little price, Just volume kind

X%. was the Yes, X% to increase

see the mostly we world. to quarter -- around so that record a last quarter compares It And year. first

we continue to that parts, at year. So this performance also see strong

the to full thinking to compared And year. last would year, record X% for the year grow parts X% we're

also that reflects and and -- favorable increases. some cost So pricing

you. Thank

Zakaria today JPMorgan. next from from Our question is Tami

question first and Canada for my U.S. than is your the Europe outlook think year. this weaker I So is,

from of your a perspective, how launches? So is years model can couple the Is regions? in business X negative us for it the those of given weaker you profile Europe remind margin mix DAF last

I characterize think weaker, it would as don't Well, I Tami.

XXXX, was that's right, a XXX,XXX midpoint nice market was I think for units, high be at a very lot. that us, I in would Europe a I estimate which year a the a And in if by year, record fact, we think to very, XXX,XXX, say year.

are have what in new is, which we that providing the theater. see great for think but the European sales we products, range, margins in I these us that still obviously, of normalization

it. Got

trying So basically are profile? of I'm understand. the That's X terms to in what regions similar margin

or more similar. Yes, less

its expect also in some in the is we Europe that so DAF think continues as excellent I Europe, But trucks. premium position. on those And softer, you'd margins new a result, a get little effect Europe. from

Dillard is next AllianceBernstein. from Chad from Our question

margin XX%. then we the grow some are you path? gross And takes that it unpack sounds I parts to could was like year, hoping going your and in mid-single you're to to that thinking Should margins puts business upward XX.X% Maybe digits. by versus of about give of like parts. continue expect trucks full as guide gross

you year parts Well, continues have as them really like this do we expect the would record, as comments, unpack, a fantastic the Harrie year we what his in in year well. or to what I I share was and to a with well. Last your is I mentioned mentioned we -- think would term, business

we a So It's the provide of we're new job. we because that that's It's the in benefits And a the because see providing even our of our doing fantastic connectivity that think to parts may in expansion great the sizes PDCs. customers. I network. truck of in moderate of trucks. bit, And market dealer business all the little because

customers. expect strong truck performance. good see parts So job the for And our truck hum. a that's And are to trucks contributing out to doing side, margins. fantastic to we obviously, I And new the again, on great what providing there. That's margin continue

just And your question, profitability. SpinCo a on second just

you buydowns or any are contemplating reserves through the to To grow. moving just you to trying extent that sale any expect profitability like do Just think truck parts market? additional the what given

in the a we result, at quarter. year. PACCAR prices $XXX truck of We this Financial now we Financial used some fourth And also the for good saw performance to of if PACCAR more the normalized million look the this year, performance continue good that as And quarter. quarters expect in at

Our next question is Evercore ISI. today from David Raso from

just beyond do I'm next second year. now prebuy On say, having half of we're Kind 'XX, reflect prebuy. notion the at Anything see forward to maybe thoughts pulling curious, a 'XX, all orders of conversations if customers' of about into of, you're 'XX. looking we of 'XX. in today in any a timing that 'XX

sense forward. concept of that moving a thinking how get to trying about you're Just

medium markets, start duty of Sure, vocational there. not with it's truckload sure. products strong me the out I carrier saying And the market mean customers order strong intake. from just that performance the and a interest seeing the in good and we're the by LTL, let

about PACCAR are little I'd to are also say dial markets but global David, quite our trucks. overall that a buy what I bit to as think the operators, standpoint, doing term from is thinking the that well continuing clearly are to is happening an good question, your for ones in us. mentioned, I long

And so that fleet and their to reasonable trucks they're and at age pattern. looking continuing keep buying a

plans. an the And going And that then will are in and and effect balance rates we And take XXXX of that maintain to we move age that as increasing fact that spending. think trying think that that with fleet We buyers were into lower that as they're purchase change managing forward. an conscious that and emissions there's have their are to than consideration spot that's they they contract sophisticated make of and rates against the continue. capital

buy to But that clear you little that be to on in desire in some in do up timing, 'XX all? think just at orders that Or would of front is premature? of show a

I think it's fleet dependent.

trucks think I hauling, depends how it and where they doing think at many I and and need in on how what fleet. they're they're they're their

later I feature premise or some or might or the conversation into think 'XX conversation about generalizing the there's that into our that. I in year of little the your -- So after? year does a but think that year be much, next this truth

see think that. from we I benefit positive

next from is Vertical Our today from Partners. Jeff Research question Kauffman

first Well, all, . of congratulations, fantastic year.

you thank for that. Jeff,

appreciates it. Our team

it. of kind questions. crushed dog, I on I guys oddities want relevant You ask if wagging don't want focus the think they're can. tail I the X I to about to but

to first do are for duty bit of models, but batteries but lighter The what's And the the with we're the in like EV, forward side. forward with a of that little right has on electric on and moving heavy we with plant a EV pullback moving investment. there seeing push and was seemed some going now. big it you're this vehicles still for with

And the for it vehicles? should . all? about framing this how we thinking is your about be feeling EV of surprise a demand EV the expected at What market? is state Is commercial

Actually, you a that was Jeff, lot I think nailed think I there enthusiasm, it. enthusiasm. too maybe much maybe of

going There's energy lot a and I going of been something infrastructure things to along think along. to that it's all It's with to have PACCAR than from happen happen. come It's a rather approach it, gradually our standpoint. rapidly. that is

As move to is the to in. in years, progression we've right. that's start the over shared We'd the XXs, go the the hundreds, with we're thousands, you

right in own to make make begin what rates future, the We was to the that that continue will felt could prudent We be think going to to our the the journey looking time XXXX sure into adoption timed be. we creating of we are investments batteries.

So we batteries most the when was had that high-performing cost-efficient, the time right.

as our we will in battery customers get puts venture of talked thoughtful adopt. PACCAR in And approach call, a supply us think the best rest up looking building and the good I the the they and needs volume EVs, manner last position really products to it sufficient give a in throughout gradually a about can offer take they're we factory keep to decade regulatory a the as the for our So to with cell when adoption. joint also

some certainty but expecting of a last second one, a there's up to who comment everyone canceled knows earlier. what EPA mandates And prebuy. the one, there that anyway. kind Republican question were part I a And ended an back and I that. then being future the we of I'm no was there know time that holds. and about But The on about industry going massive XXXX is had I'm ask Raso's think I a is it David certain this President, think think rolled kind of thinking

that risk think at EPA and there's presidential Republican card or victory, we you people Do any might political risk? risk a back these be candidate be there's mandates if certain get of at might any mandates a

think nailed I Jeff, you it.

about PACCAR We really good have on PACCAR. for can way. I either That's feel comment We all no say that.

the it. Exactly. in of see front get We're . we going road us. to I drive

today Revich from Sachs. Jerry is from next question Goldman Our

of if you today chain deliveries just cetera, gross maybe about continuing. 'XX things on surety record margin a directionally just turn as like hours you wondering folks versus and potential et significant in productivity be was ramp could despite their to to your had unit for you year-over-year ramps is the Can basis I'm per labor And overhead performance there targets? a up up? tailwind supply disruptions about a talk expense, really where talk

a It's fun you. conversation with to Yes. have

maybe supply perfect, factories. you I challenges. have is our factories to to all, look as good. think job off efficient trying that. I improved, They've smoother . And note, used And as good really We're things base. not hats a become think but which through it, work are the First done of improved, the of at to we more

And to regard. if will 'XX, supply so have provided a we as factories, we smoother into that look the have in benefits we

word a it. be could as you tailwind it So

rate folks put record moving that you costs whether cost the in to pieces repair provisions? you higher warranty return you're Very interesting. up per X.X% warranty have And talk costs there of terms per-unit as where margins on about that in through warranty is to because you 'XX? Or another can higher working trends, of other area you still things worked are even expect accrual in or repair

more that I great trucks it electronics increasing our we that again. Like well a over of an and the I range kind say that question industry, have think with we've can opportunities. truck Well, the seen who we'll of group we that complexity them, that understand contributes decades well performing normal But think true. because your salient, be is analysts to business do on are as in is more

really the Super. certainly companies. first had the model what And other Okay. strong we're our the fourth performance in higher lastly, quarter for on is for parts, outlook quarter what than we in and and seeing

Can the addressing the have most of first I you really that just of first saw but quarter just were first how in on managed you 'XX the touch the to in a quarter 'XX. you stocking It of able parts to delivery for going just face frame first be comp quarter companies, last the folks is quarter that, think inventory folks avoid in tough because a time like folks can doesn't stocking year? sound have how spend minute you you

this We've parts the effect on, performance. So to record quarter X% to our Jerry. things really compared nice doing. fantastic last a reflects quarter you're It all growth is the X% spot year, team

available are when that us, to manage buyer technology, the make from we where MDI, the easy Focusing needed. dealer's makes the it the parts the on e-commerce sure technology inventory,

strong that part. proprietary the provide Our more centers. continuous of performance PACCAR The engine us investments in parts distribution

on all nice the we've and into over of result years just these, we up, expect seeing as been year. continue trends adds and a to those it some parts this So

Our UBS. Fisher next question from Steven from is

the in do but Like Just think you of about curious how solidly about are QX at well QX. are also even the what kind point, much and your QX maybe you imagine QX I year? into telling you on visibility and later outlook? And pretty this as we customers is second booked have truck XXXX. How booked the about half.

filling full Yes, as QX is very effectively know, QX and nicely. you is in

-- out, As look with spread by lots full obviously there's customers of we year customers delivery.

the things in second growing and some see we backlog half pretty well, as healthy. So feel

Great. seeing, direct inflation to and that the economy, have about assume maybe the side. overall the Okay. to it various nets in indirect still some the the you it maybe you're out economy. both the talk of that then but cost inflation line kind you on that, in can inflation directions, overall with And Is level and safe the puts in takes of in

if additional but And just is do always the then able pricing trying only sort that case, the cost at have know reduction reductions is strategy this the if those a going some Or to preserve margins cover you're cost programs some efficiency you have curious to with that's year sort you of to I'm if step maybe up XXXX. in sort on, of your of aimed pricing. to costs? cover you things have inflation I

as teams on on focused moderated most we product do experiencing that we some, focus do I good people things . is we this it, reducing think continuous the job and our are our inflationary the and to try in it a think year. pricing, costs. do. we as acknowledge And You can as fully cost a on and obviously, see on thing And we're inflationary it's with we do are same inflation

Tim question next from Our is from Citigroup. Thein

about on one and mix, for it's business earlier Just there mix. just the me, on geographic specifically asked truck and was one and

of If there the being curious accretive added probably on -- a relative much the as margin and But a is neutral? from more -- kind bigger I'm a standpoint trucks about those there that of become also an which straight that? customer environment about -- of Any headwind is delivery percentage to sleepers. should think medium of sleepers, selling we and But to from where the you're product is comment in. duty that

guess customer How from kind of representing that I headwind, have of I of part more just, the guess, is should board about to you then order -- of that in factors? think but larger And your too carriers 'XX. B about standpoint, are a we does if any where those a that presumably think two way a more dynamic

think What strong probably Tim. market, I seeing to market, over the last everyone been, that a able I that a we've going is the vocational LTL industry an as market. couple there's supply trucks think strong we're And is needed. years, they not a on medium-duty strong of

we're able and build So we're seeing trucks, those now to our a different as that percentage percentage and backlog. kind in of increased

margin be the of for them percentage They the far really And differentiate I that many it, that basis, different. as think not carriers wouldn't then On I impact it's different both than in good margin. a years, as and can larger substantially yes. products that right? us. It's not think I

We've see But had had lot ordering of our affecting model. a of small So we've normal the trucks. we anything of boundary. within and don't trucks, kind the carriers carriers biggest it's ordering some all some dramatically

today question TD is next from Elkott Matt Cohen. from Our

to other orders question, you your a areas in orders seems gaining back this basis. of North you see America guys a aware see vocational tractions super order higher function are mix? still that stronger it in I go Is we demand question, continue can demand, were primarily of? If the monthly to not industry stronger the Or the on than

market We are the leader. vocational

in industry, some is think great good I to the and us as is I given has I done over too, helpful job the developing last lineup, think which which us years product several teams the is a there So have And new our that. a newest benefit backlog. mentioned in

then lowest for fundamental level, our lot our at tied doing that, about level, the think when provide order different trucks. in The a They're we them performing are the do customers we total the best they up well. to things. at fundamental think contributing And you visibility. of products cost in it industry, they If that's great is build that our we're well. to and of ownership. trucks the order the goal And But the to

And follow-up question. just one

we you'll is think vertical in into this something engines the is that of production that a integration do cut independent look As kind Or cycle? you mild to of year. of more decline costs? Do

Yes.

capacity. With the is we've of a record engines that -- say. I -- America to the year. been in that we've engine worldwide, North engine penetration very position Yes, that built last make North trucks our manufacturing We this will number year. good help us in continuing grow America, That's Europe to percentage year. . to a for MX and that grow investments would this

question is Research. from Our Wolfe Group Scott next from

prices used there's about talked curious for yet used prices bottoming your QX. further risk unused. in think you you I'm if or we're from outlook if here, think just you So normalizing

Harrie, you thoughts on have any do that? .

prices Used during come truck year. North did and Europe the down America in

levels. why of down do digit. we stabilization some at North That's at expect the a think. quarter, in And That's level single low think that kind trucks came America at I normal that reasonable breakeven, projection, I a continue see we these used maybe where level. fourth are happening Now to things

that continue to volumes in thing be only as I'll good The that well. add is space

from a what both bad watch a a we it's it was, change price and it's at still So and like not big it's it level. but volume, seems

It's more normal now.

Yes.

are fact others you had that that's power got but a Is is with range an new strikes that of ultimately, that you heightened with inflation, thought? it gross is it spread. enlightened just a in just previously maybe price market. In products, understand more totally pricing record margin, then cost more couple -- maybe environment -- sustainable? margin? consolidated pretty guys also it this than new that sort maybe I think you the we've you is me And Okay. And this this just saying Is that what's on is to seen ultimately happening? of like what and that you gross years Is do last the of just theoretical just right?

have driving or serving building are in And that's were really truck My our business. view the of efficient produces the . over of is of several the it the It's a job whether PACCAR, the people or for years customers really that it's customers. and team factories lean, around working last strength well. organizations controllers parts fantastic as And products a business. engineers great it's the business. and I robust shareholders world, between the generated force That margins and our our think that the focus the done

new your in So mind, of normal? teens high is the the sort

what you good. pretty XX%. And we is to first is think quarter XX.X% Well, with shared that's we the darn --

Yes, for sure.

Our next Michael question from Bank is Feniger from of America.

just you're Obviously, of they trade-in in spread use some was the the to spread of pricing Just in XXXX? seeing for a your widening? at that used it's commentary you impressive. very seems look little curious any to new how like think seeing that the very you're I'm market I It used XXXX the with that a I'm the about the we know kind spread talked what was market cooling, kind about in for strong. years when pricing we bit between price few the increases about Because XXXX used between ago. how curious that that informs market obviously, think market and used XXXX. but relative

all-time consideration of into were of those what's all-time Well, high, think the your rates at were -- high. that the point at rates contract factors markets fact throw I high where things you spot could is maybe in one

some and to are people business. between of into out got people getting the trucking and the that's contributing spread new those Some and pricing. used

the market used the truck you pricing. is people normalizing exiting As the some have of

and that used, time. differential So new larger of is I think between will there I over reset a a bit itself think and

follow And to just up.

Another in who the trucks. different market buy your customers transportation

do actually excellent now You to of truck how rates how your deliveries play freight that rates XXXX, in XXXX XXXX maybe were And in about that and and we might trucks? bottoming and a spot what falling. potentially kind where potentially happened see that demand translates at how of kind think up out put picking XXXX spot for up we in time through freight

that a are that economic underlying truck most set year. the growth it commentary, through that we about, be noted we economy And what for doing? should rate continue And see year you in especially talked as good should bottoming we the the should which that contemplation we XXXX. be in our spot us for put fundamental the up and against XXXX, growth as think what's as market, Well, economic in you good the principles

is question from from next Our Guillermo Herreira Funds. Gabelli

ones one been -- the should here sheet dividend think there's that I'm So far. cash But doing about job now. a through than cash? sizable aside maybe a you've we more talking balance how how cash deploy curious, you on some of position from so we've might and generating right payouts, high-level the of a great been

more here, us And commentary space bit growth of sort the growth be on to might term, any the longer you maybe get just part story. a could considering of and M&A little specific whether you inorganic provide as

pleased has Sure financially. performed with thing. the We're really company how

history We around of of payouts net dividend XX% of a strong have income.

venture, make robust that. as happy fund that. And having with into We for of have more Obviously, XXXX. cash. in our uses build make flexibility history do are noted be we the comments, that making our we long acquisitions are we all We at continue which think continue continue that We those in times. shareholders when to evaluations cash company approach. even we joint will We'll this of to an and the us We forward has doing future. . do to to gives cash. sense, payouts record out do a strategic they something dividend move got PACCAR

Johansson from Pan properly. from is if you Advisors. today Daniel please check question last Daniel you can unmuted Our

Can me? you hear

Daniel. can, we Yes,

so et content But Sorry, guess maybe a last different is, few about more there over that per going the And there's cetera. pretty I how utilization year. especially unit, that last mix, cetera, I lot high going years? has of capacity is been mean, forward? how been But think you had your here given little per to et unit And discussed. and that this question thinking to has up levels bit cost already about the a has about. think

of Well, side I the inflationary think normal about costs of it. -- in there's terms

building of they have side for I our contemplate is more are customers. that to been other than efficient think the we're it trucks ever

with price to not higher purchase fuel costs, as price, significant utilization. their operating that percentage but comes compared efficiency a Sometimes the purchase is total the of

So up beneficial high-performing purchase to customers beneficial PACCAR and that that that way if in price. products drives our to it's are very to even efficient have

And is, then regulatory. another course, element to of that

changes, standards, typically As added emission price. to you is those regulatory also anticipate with increasing factor componentry a in come which cost and future meet

with go equation that cost So some And more price of us. those we've things than for keep that. the into seen up that are

expect should continue And we cost in per scenario? volume good to go think, even you to very unit a up,

on on more inflationary whether that has of It depends added It depends trucks. state. could. content added there's the they to think be I the the . and competition state to

This you. Thank session. Q&A is end the of the

to for closing So further hand remarks. any like I'd or now back

thank We'd like to call, operator. everyone thank the for joining . you, and

call. today's joining for everyone, you, Thank

a lovely have now disconnect lines, your and day. You may