Canadian Halal Investor.

NASDAQ Shariah screener · October 2026

Is PACCAR Inc (PCAR) Halal?

FAIL

PACCAR Inc · NASDAQ: PCAR · Industrials

The short answer

No — PACCAR (PCAR) does not pass this Shariah stock screen. Its business — heavy-duty trucks (Kenworth, Peterbilt, DAF), aftermarket parts, and a captive finance arm providing truck financing and leasing to customers and dealers — has no prohibited lines, and its debt is within limits: interest-bearing borrowings of $15,636.3M (commercial paper, bank loans and term notes in the Financial Services segment; the truck and parts segments carry no funded debt) are about 26.68% of its ~$58.6B market cap (Finnhub, early October 2026), under the ~33% ceiling. But its interest-based income — $1,428.7M of interest and fees from PACCAR Financial Services plus $346.1M of investment income, $1,774.8M in total — is about 6.24% of FY2025 revenue ($28,444.8M), above the 5% non-compliant income ceiling. Zoya covers PCAR and flags it as not Shariah-compliant; no Musaffa or ShariaPortfolio coverage was found. This is a factual screen, not a religious ruling — consult a qualified scholar for personal guidance.

Gate 1 — Business activity: PASS

PACCAR Inc (NASDAQ: PCAR), headquartered in Bellevue, Washington, operates three principal segments: (1) Truck — design, manufacture and distribution of light-, medium- and heavy-duty commercial trucks under the Kenworth, Peterbilt and DAF nameplates (trucks accounted for 68% of total 2025 net sales and revenues); (2) Parts — distribution of aftermarket parts for trucks and related commercial vehicles; and (3) Financial Services (PACCAR Financial Services) — finance and leasing products provided to customers and dealers, principally related to PACCAR products and associated equipment. None of the disclosed lines — truck manufacturing, parts distribution, engine manufacturing, captive truck financing/leasing — are prohibited lines (no alcohol, gambling, pork, conventional banking/insurance, tobacco, cannabis, or adult entertainment). The finance arm is conventional interest-based lending, which is assessed under the financial gates below rather than as a prohibited core business. Gate 1 passes. Facts only.

Gate 2 — Debt and cash: PASS

At December 31, 2025, PACCAR's interest-bearing borrowings were $15,636.3 million: commercial paper and bank loans of $4,989.5 million plus term notes of $10,646.8 million, all in the Financial Services segment (the 10-K states the segment borrows to fund its finance receivables). The Truck, Parts and Other segments carry no funded debt. Against a market capitalisation of about $58.6 billion (Finnhub, $109.94/share, early October 2026), debt ÷ market cap is about 26.68%, below the ~33% ceiling. Cash of $6,307.9 million plus marketable securities of $3,207.7 million = $9,515.6 million, about 16.2% of market cap, within the ~33% guideline. Gate 2 passes. Facts only.

Gate 3 — Non-compliant income: FAIL

For FY2025 (year ended December 31, 2025), PACCAR reported $1,428.7 million of interest and fees in the Financial Services segment — interest earned on loans, finance leases and dealer wholesale financing, with average portfolio yields of 7.4% — plus $346.1 million of investment income (interest, dividends and realised gains on marketable securities, per the 10-K notes). Combined non-compliant interest income is $1,774.8 million against total net sales and revenues of $28,444.8 million — about 6.24%, above the 5% non-compliant income ceiling. Even the Financial Services interest and fees alone ($1,428.7M ÷ $28,444.8M ≈ 5.02%) exceed the limit. The segment's $781.0 million of operating lease, rental and other revenues is included in revenue but excluded from the interest-income ratio. Gate 3 fails. Facts only.

Key figures used

Frequently asked questions

What does PACCAR do?

PACCAR Inc (NASDAQ: PCAR) is a global heavy-duty truck manufacturer headquartered in Bellevue, Washington. It designs, manufactures and distributes light-, medium- and heavy-duty commercial trucks under the Kenworth, Peterbilt and DAF nameplates, sells diesel engines and aftermarket truck parts, and runs PACCAR Financial Services, a captive arm that finances and leases trucks and equipment to customers and dealers. Truck manufacturing is its largest segment, accounting for 68% of total 2025 net sales and revenues. None of its disclosed business lines are prohibited lines (no alcohol, gambling, pork, conventional banking/insurance, tobacco, cannabis or adult entertainment).

Why does PACCAR fail this Shariah stock screen?

PACCAR fails this Shariah stock screen on the non-compliant income gate. Its business has no prohibited lines and its debt is within limits, but its interest-based income exceeds the ceiling: for FY2025 the Financial Services segment reported interest and fees of $1,428.7 million (interest earned on loans, finance leases and dealer wholesale financing) and the company reported investment income of $346.1 million (interest, dividends and realised gains on marketable securities), a combined $1,774.8 million — about 6.24% of FY2025 net sales and revenues of $28,444.8 million, above the 5% non-compliant income limit used in this screen. Interest and fees alone ($1,428.7M) is about 5.02% of revenue, already over the limit. This is a factual screen, not a religious ruling — consult a qualified scholar for personal guidance.

What is PACCAR's interest-bearing debt ratio?

At December 31, 2025 PACCAR's interest-bearing borrowings totalled $15,636.3 million — commercial paper and bank loans of $4,989.5 million plus term notes of $10,646.8 million, all in the Financial Services segment, which borrows to fund its finance receivables. The Truck, Parts and Other segments carry no funded debt. Against a market capitalisation of about $58.6 billion (Finnhub quote at $109.94 per share, early October 2026), debt divided by market cap is about 26.68%, below the roughly 33% ceiling. Cash of $6,307.9 million plus marketable securities of $3,207.7 million total $9,515.6 million, about 16.2% of market cap, within the roughly 33% guideline. The financial-structure gate passes; the failure is on the income gate.

What is PACCAR's non-compliant income ratio?

For the year ended December 31, 2025 (FY2025 10-K), PACCAR's Financial Services segment reported interest and fees of $1,428.7 million — interest earned on retail loans, finance leases and dealer wholesale financing at average portfolio yields of 7.4% — and the company reported investment income of $346.1 million (interest, dividends and realised gains on its marketable securities). Together that is $1,774.8 million against total net sales and revenues of $28,444.8 million, a ratio of about 6.24%, above the 5% non-compliant income ceiling. Note the Financial Services segment also earned $781.0 million of operating lease, rental and other revenues, which is counted in revenue but not in the interest-income ratio used here. On this basis the income gate fails.

Do Zoya, Musaffa, or ShariaPortfolio cover PACCAR?

Zoya covers PCAR: its page (zoya.finance/stocks/pcar) assesses PACCAR under AAOIFI guidelines and currently flags the stock as not Shariah-compliant. No PCAR coverage was found on Musaffa or ShariaPortfolio — honestly reported as absent, not invented. This page applies the screen directly from PACCAR's own filings: the FY2025 Form 10-K (filed February 18, 2026) and the Q2 2026 results (H1 2026 revenues $14.32 billion, investment income $162.2 million).

Sources

Screened 2026-10-02 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.

Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).