PACCAR Inc.

Good morning and welcome to PACR's third quarter 2024 earnings conference call. All lines will be in a listen-only mode until the question and answer session. 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, PACR's Director of Investor Relations. Mr. Hastings, please go ahead.

Good morning. We would like to welcome those listening by phone and those on the webcast. My name is Ken Hastings, PACCAR's Director of Investor Relations. And joining me this morning are Preston Fite, Chief Executive Officer, Harry Skippers, President and Chief Financial Officer, and Bryce Poplosky, Vice President and Controller. As with prior conference calls, we ask that any members of the media on the line participate in a listen-only mode. Certain information presented today will be forward-looking and involve risks and uncertainties that may affect expected results. For additional information, please see our SEC filings at the investor relations page of paccar.com. I would now like to introduce Preston Fite.

Thanks, Ken. Good morning, everyone. Harry, Bryce, Ken, and I will update you on our excellent third quarter financial results and other business highlights. I'd like to start by thanking PACCAR's wonderful employees who deliver PACCAR's high-quality trucks and transportation solutions to our customers all around the world. PACCAR earned a strong $972 million on revenues of $8.2 billion for an industry-leading after-tax return on revenue of 11.8%. PACCAR Parts' third quarter revenues increased 5% to $1.66 billion, and pre-tax profits were $407 million. pack our financial earned pre-tax income of $107 million in the third quarter. We estimate this year's U.S. and Canadian Class 8 market to be around 260,000 trucks and next year to be in the range of 250,000 to 280,000 vehicles. The vocational segment, where Peterbilt and Kenworth are the market leaders, is strong and is expected to remain strong with continued infrastructure investments. The less-than-truckload market is performing well, while the truckload segment seems to have stabilized. Peterbilt and Kenworth's combined Class A share has increased from 29.5% to 31.1%. Kenworth and Peterbilt's dealer inventory is a healthy 2.9 months. Kenworth and Peterbilt increased their medium-duty market share in the first nine months of this year to 17.2%. compared to 14.5% last year. In Europe, this year's truck industry registrations in the above 16-ton segment are estimated to be around 300,000 vehicles. The 2025 market is expected to be in the range of 270,000 to 300,000 trucks. Last month at the IAA Truck Show in Germany, DOF introduced its new 2025 lineup of trucks, which improved fuel economy by 3%, and use advanced driver assistance systems to enhance safety. In addition, the 2025 vehicles feature PACCAR's connected truck solutions, which bring great value to the customer. The South American above-16-ton market is projected to be in a range of 110,000 to 120,000 trucks this year, and in a similar range next year. PACCAR's premium lineup of trucks are performing well for customers in South America, especially in the important Brazilian market. Packard and its dealers are delivering excellent trucks and transportation solutions to our customers, and we are excited about the future. Thank you. Harry will now provide an update on Packard Parts, Packard Financial Services, and other business highlights.