PACCAR INCPCAR
PACCAR INC Financial Overview 2021–2025
Updated Jul 10, 2026PACCAR absorbed a sharp cyclical contraction in FY2025, with worldwide net sales and revenues plunging 15.5% to $28.44 billion as heavy-duty truck deliveries slowed across all major markets. Beneath this headline decline lies the central investment thesis: PACCAR’s core manufacturing business is highly cyclical, but its expanding aftermarket Parts and Financial Services segments provide a durable profitability floor that cushions extreme delivery volatility.
The company’s top-line trajectory highlights this cycle, as revenue grew from $23.52 billion in FY2021 to a peak of $35.13 billion in FY2023, before retreating to $28.44 billion in FY2025. While the Truck segment’s gross margin compressed to 7.5% in FY2025—down from 13.9% the prior year due to lower volumes and tariff costs—the aftermarket business proved resilient. The Parts segment expanded by 3% to reach $6.87 billion in FY2025, and Financial Services revenue posted a 5% increase to $2.21 billion driven by portfolio growth and higher yields.
Even with a $350.0 million pre-tax litigation charge dragging down the bottom line, PACCAR generated $2.38 billion in net income during FY2025. The market recognized this structural stability, pricing the stock at $109.51 and valuing the equity at 24.3x earnings at the close of FY2025. Refusing to pause innovation during a downturn, PACCAR deployed $728.5 million for capital expenditures and $445.5 million in R&D expenses in FY2025 to advance zero-emission powertrains and autonomous systems.
Recent Developments (Q4 2025 and Q1 2026)
PACCAR expanded profitability in Q1 2026 despite shrinking top-line volume. First-quarter net income surged 19.8% to $605.3 million, even as worldwide net sales and revenues contracted 8.9% to $6.78 billion. This revenue decline stemmed from a 17% drop in global truck deliveries, pushing Truck segment income before taxes down 52% to $176.2 million. High-margin segments offset this weakness, with Q1 2026 Parts sales rising 1% to $1.71 billion and Financial Services revenue growing 2.7% to $542.2 million. Corporate leadership shifted as Executive Vice President C. Michael Dozier retired on April 1, 2026.
Bulls argue PACCAR can grow bottom-line profits during a delivery downturn, highlighting structural margin resilience. Bears note that shrinking unit volumes and rising tariff costs pose significant headwinds, suggesting the equity is richly priced at 26.2x earnings as of the April 29, 2026 reporting date.
What to watch: heavy-duty truck delivery volumes in North America; adjusted manufacturing timelines for the Amplify Cell Technologies battery joint venture.
Rev
$28.44B
FY2025
NI
$2.38B
FY2025
EPS
$4.52
FY2025
OCF
$4.42B
FY2025
Year-over-year comparison from 10-K annual reports
Data from SEC Company Facts
Recent SEC Filings
PACCAR INC 8-K Report, Executive Changes (May 1, 2026)
PACCAR INC (PCAR) filed an 8-K report on May 1, 2026, detailing key decisions made at its Compensation Committee meeting on April 27, 2026, and outcomes from its annual stockholder meeting held on April 28, 2026. The Compensation Committee approved Long Term Performance Cash Awards (LTIP Cash Awards) for the 2023-2025 cycle, recalculating the total compensation for Named Executive Officers. Notably, CEO R. P. Feight's total compensation, including these awards, reached $19,453,009. Additionally, the filing provides the CEO pay ratio for 2025, which stands at 198 to 1, with the CEO's compensation at $19,453,009 and the median employee's at $98,350. The annual meeting saw the re-election of directors, with overwhelming support for most nominees, although one nominee, M. A. Schulz, received a significantly lower "For" vote. Stockholders also provided advisory approval for executive compensation and ratified the independent auditors, both receiving majority support.
PACCAR INC 8-K Report, Financial Results (Apr 28, 2026)
PACCAR Inc (PCAR) has filed an 8-K report on April 28, 2026, to announce its financial results for the first quarter of 2026. The report primarily references a press release, filed as Exhibit 99.1, which contains the detailed earnings information. Investors should refer to this press release for specific figures and commentary on the company's performance during the first quarter. PACCAR also announced a conference call scheduled for the same day to discuss these first-quarter earnings with securities analysts, providing an opportunity for further insights and Q&A.
PACCAR INC 8-K Report, Financial Results (Jan 27, 2026)
PACCAR Inc (PCAR) has filed a Form 8-K on January 26, 2026, to report on its financial results for the fourth quarter of 2025. The company announced its earnings and also indicated that a conference call for securities analysts would be held on the same day, January 27, 2026, to discuss these results in further detail. This filing serves as a notification of the earnings release and the associated analyst event. Investors should refer to the press release, attached as Exhibit 99.1, for the specific financial figures and commentary regarding PACCAR's fourth-quarter performance. While this 8-K filing itself does not contain the detailed financial data, it formally announces the availability of this information and the opportunity for further discussion with management. The information provided is furnished and not deemed filed for Section 18 purposes, meaning it does not carry the same regulatory liability as formally filed documents unless specifically incorporated by reference.
PACCAR INC 8-K Report, Executive Changes (Jan 16, 2026)
PACCAR Inc (PCAR) has announced a significant executive transition effective April 1, 2026. C. Michael Dozier, Executive Vice President, will retire after a distinguished 37-year career with the company. This departure marks the end of an era for a long-standing executive. Simultaneously, PACCAR is implementing strategic leadership changes to fill the void and drive future growth. The company is promoting W. Lance Walters, currently Assistant Vice President, to Vice President. He will be taking on expanded responsibilities overseeing PACCAR's operations in Australia, Mexico, and South America. Additionally, Raja Shembekar, currently Vice President, will shift focus to international business development. These appointments indicate a strategic realignment of key leadership roles to support global expansion and operational efficiency.
PACCAR INC 8-K Report, Executive Changes (Dec 12, 2025)
PACCAR Inc (PCAR) has announced significant leadership changes effective January 1, 2026, as detailed in their recent 8-K filing. Kevin D. Baney will be promoted to President of the Company, taking on expanded responsibilities that include oversight of PACCAR Parts in addition to his current duties. Mr. Baney brings extensive experience, having served as Executive Vice President and with 31 years at PACCAR in various leadership roles across its divisions. Furthermore, John N. Rich is elevated to Executive Vice President and Chief Technology Officer, where he will spearhead global technology initiatives and oversee Peterbilt Motors Company. Mr. Rich's background includes a long tenure at Ford Motor Company with a focus on advanced technologies. These appointments signal a strategic focus on continued growth and technological advancement within PACCAR's core operations and emerging areas.
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