VOLAF - Class 8 truck orders rise in June but stay at seasonally soft level

2023-07-06 07:38:17 ET

Class 8 truck demand for June was seasonally soft with 516,200 units ordered on a preliminary basis. The order tally was up 5% from the level a year ago and was 4% higher than the activity in May. Preliminary Classes 5-7 trucker orders rose a modest 2% year-over-year to 17,700 units, but were down 12% from the level in May. Complete industry data for May, including final order numbers, will be published by ACT Research in mid-July.

"Given robust Class 8 orders into year-end 2022 and the ensuing backlog support, coupled with normal seasonal order patterns, orders were expected to moderate into Q2 and remain at relatively soft levels into mid-Q3’23. June orders were in line with this view, bringing the ytd monthly SA average to 18,200," updated ACT Vice President and Senior Analyst Eric Crawford. He also noted that the relatively few build slots still free in the second half of the year suggest order intake is unlikely to find meaningful traction until 2024 orderboards open.

Looking ahead, FTR Chairman Eric Starks forecasts that the normally weaker orders due to a seasonal mid-year slowdown coupled with strong build activity will keep shrinking backlogs. "This will pull backlogs back into a normal range over the next several months as the backlog-to-build ratio is currently elevated and putting pressure on OEMs to keep building equipment," he stated.

Sector watch: PACCAR ( PCAR ), Allison Transmission ( ALSN ), Cummins ( NYSE: CMI ), Wabash National ( WNC ), Eaton ( ETN ), Daimler Truck ( OTCPK:DTRUY ), Volvo Group ( OTCPK:VOLAF ), J.B. Hunt Transport Services ( JBHT ), TuSImple ( TSP ), Yellow Corporation ( YELL ), Nikola ( NKLA ), and Hyliion Holdings ( HYLN ).

More on Class 8 stocks:

• Cummins is tipped by Deutsche Bank to see near-term rally
• Why Paccar Will Weather A Recession Better Than Iveco
• Daimler Truck and Toyota combine Japanese truck units into new company

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