Truck stocks Iveco, Daimler, PACCAR are roaring in 2024

Truck manufacturers are thriving in 2024 and to some extent, beating some of the best-known technology companies. In Italy, Iveco Group (IVG) share price has jumped in the past nine weeks straight and is hovering at its highest point on record. It has more than doubled from its lowest point in December.

Trucking stocks are soaring

In neigbouring Germany, Daimler Trucks (DTG) has risen to a record high of €47.50. It has been in the green in the past nine straight weeks. In the United States, PACCAR (NASDAQ: PCAR) share price has risen in the past eleven weeks and moved to a record high of $124.45. The chart below shows that these stocks have beaten the S&P 500 index in the past 12 months.

Iveco vs Daimler Trucks vs PACCAR vs S&P 500 index

Globally, other truck manufacturing companies like Tata, Hyundai, and Volkswagen are also soaring as demand for these big rigs and buses remains at an elevated level and as the cost of doing business eases slightly.

Trucking revenue and profits jumped in 2023

The most recent results show that these companies are doing well. In its annual reports, PACCAR, the manufacturer of brands like Kenworth, Peterbilt, and DAF said that its trucks revenue jumped from $21.4 billion in 2022 to over $26.84 billion. Parts revenue rose from $5.7 billion to $6.4 billion.

Its profitability also jumped sharply during the year as it jumped from $1.7 billion to over $3.7 billion. This happened as the company boosted the number of trucks delivered from 185,900 to 204,200.

Daimler Trucks also had a great year as the number of units jumped from 520k to 526k. Of this, zero-emission vehicles stood at over 3,443. Its revenue jumped from €50.9 billion in 2022 to €55.8 billion. Like PACCAR, its total profit jumped to €3.9 billion.

Iveco Group, the giant Italian company, said that its revenue rose from €14.3 billion in 2022 to €16.2 billion in 2023. Its profits rose slightly from €260 million to €384 million. Iveco’s business was substantially affected by the devaluation of the Argentine peso.

Most importantly, the companies increased their shareholder returns. PACCAR paid $1.2 billion in dividends. Daimler Truck also paid over €1 billion to shareholders. Iveco Group

The three companies signaled that their business would continue doing well this year as demand from all regions continue. 

It is also worth noting that these companies are performing in line with other industrial stocks like Illinois Tool Works and Emerson Electric.

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