Summary
PACCAR Inc (PCAR) reported a decrease in net sales and revenues for the third quarter and the first nine months of 2025 compared to the same periods in 2024. This decline was primarily driven by lower truck deliveries across all major markets, influenced by reduced retail demand and the impact of import tariffs. Despite the revenue dip, the Financial Services segment showed revenue growth and an increase in income before taxes, supported by portfolio expansion and higher yields. The Parts segment also saw a modest increase in sales. The company's net income and diluted earnings per share were significantly lower year-over-year, impacted by the reduced truck sales volume and a substantial charge related to European litigation. Management anticipates a challenging market for truck sales in the near term but maintains a positive outlook for the Parts and Financial Services segments. Capital investments and R&D remain a focus, particularly in next-generation powertrains and manufacturing capabilities.
Financial Highlights
36 data points| Revenue | $6.67B |
| Cost of Revenue | $5.35B |
| Gross Profit | $1.33B |
| R&D Expenses | $111.00M |
| SG&A Expenses | $180.20M |
| Net Income | $590.00M |
| EPS (Basic) | $1.12 |
| EPS (Diluted) | $1.12 |
| Shares Outstanding (Basic) | 525.90M |
| Shares Outstanding (Diluted) | 526.70M |
Key Highlights
- 1Worldwide net sales and revenues decreased by approximately 19% for the third quarter of 2025 ($6.67 billion vs. $8.24 billion in 2024) and 16% for the first nine months ($21.62 billion vs. $25.76 billion in 2024), largely due to a significant drop in truck sales.
- 2Truck segment income before taxes decreased substantially by 84% for the third quarter ($102.5 million vs. $630.8 million) and 67% for the first nine months ($776.2 million vs. $2,349.7 million), impacted by lower unit deliveries and price realization.
- 3Financial Services segment revenues increased 5% for the third quarter ($565.3 million vs. $536.1 million) and 6% for the first nine months ($1.64 billion vs. $1.56 billion), driven by portfolio growth and higher yields. Income before taxes for this segment rose 18% for the quarter and 12% year-to-date.
- 4Parts segment sales increased 4% for the third quarter ($1.72 billion vs. $1.66 billion) and 3% for the first nine months ($5.14 billion vs. $5.00 billion), primarily due to higher sales in the U.S. and Canada.
- 5Net income decreased significantly to $590.0 million ($1.12 per diluted share) for the third quarter of 2025 from $972.1 million ($1.85 per diluted share) in 2024. Year-to-date net income was $1.82 billion ($3.45 per diluted share) compared to $3.29 billion ($6.25 per diluted share) in 2024.
- 6The company recorded a $350.0 million pre-tax charge ($264.5 million after-tax) in the first quarter of 2025 related to European litigation, impacting the 'Other' segment's income and the overall net income.
- 7PACCAR expects heavy-duty truck retail sales in the U.S. and Canada to be between 230,000 to 245,000 units in 2025, down from 268,100 in 2024. Similar declines are projected for Europe and South America.