PACCAR Inc.

Good morning and welcome to PACCAR's second quarter 2026 earnings conference call. All lines will be in the 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, PACCAR's director of investor relations. Mr. Hastings, please go ahead.

Good morning and welcome to PACCAR's second quarter 2026 earnings conference call. All lines will be in listen-only mode. My name is Ken Hastings, PACR's Director of Investor Relations, and joining me this morning are Preston Feight, Chief Executive Officer, Kevin Baney, President, and Brice Poplawski, Senior Vice President and Chief Financial Officer. 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 and the investor relations page of PACCAR.com. I would now like to introduce Preston Feight.

Hey, thanks, Ken. Good morning, everyone. In the second quarter, PACCAR's outstanding employees did an excellent job of increasing production, to provide our customers with the highest quality trucks and transportation solutions in the industry. Their hard work, high performance, and dedication is enabling PACCAR to continue increasing build rates in our factories around the world. PACCAR's second quarter revenues were $7.5 billion and net income was $752 million, an increase of 24% from the first quarter. These results were driven by strong truck division performance. Packard Parts performed well and achieved record quarterly revenues of $1.75 billion and quarterly pre-tax income of $417 million. Packard Financial also performed well, achieving pre-tax income of $124 million. Now, looking at this year's U.S. and Canadian heavy truck market. The US economy is growing and the truck market is strengthening as freight rates have increased and regulatory clarity has been provided. First half retail sales were 105,000 trucks and we expect that the second half could be around 145,000 resulting in a full year market size of around 250,000 units. In Europe, the economy is growing modestly and the truck market is healthy. We project the 2025 European above 16 ton market size to be around 310,000 trucks. Doff's premium trucks are providing customers with the latest technology and the best operating efficiency. This year's South American above 16 ton market, where Doff trucks are desired by customers for their durability and advanced technology, is expected to be in the range of 100 to 110,000 vehicles. In the second quarter, PACCAR's truck deliveries increased from 33,000 to 38,700. Third quarter deliveries are estimated to grow and be around 42,000 as build rate increases are partially offset by the normal European summer shutdown period. PACCAR's truck, parts, and other second quarter gross margins increased from 13.1% to 14.4% due to very good overall performance. Kevin Baney, Lily Ley, Brice Poplawski, Mark Pigott Kevin?