PACCAR INC (PCAR)
SIC breadcrumb: Manufacturing > Transportation Equipment > SIC 3711 Motor Vehicles & Passenger Car Bodies
SEC company page: https://www.sec.gov/edgar/browse/?CIK=75362. Latest filing source: 0001193125-26-057025.
Informational only. Descriptive public-record data — not a rating, forecast, or investment advice. See Disclaimer.
At a glance
- Revenue
- 28,444,800,000 USD verified
- Net income
- 2,375,800,000 USD verified
- Assets
- 44,336,200,000 USD verified
- Free cash flow
- 3,672,800,000 USD computed
- Net margin
- 8.35% computed
- Revenue YoY
- -15.50% computed
- ROE
- 12.33% computed
Peer & cluster context
Peer percentile fingerprint
Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 3711 Motor Vehicles & Passenger Car Bodies, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.
Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
|---|---|---|---|---|
| Revenue | 28,444,800,000 | USD | 2025 | 2026-02-18 |
| Net income | 2,375,800,000 | USD | 2025 | 2026-02-18 |
| Assets | 44,336,200,000 | USD | 2025 | 2026-02-18 |
Financials
Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-18. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000075362.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.
| Metric | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 17,033,300,000 | 19,456,400,000 | 23,495,700,000 | 25,599,700,000 | 18,728,500,000 | 23,522,300,000 | 28,819,700,000 | 35,127,400,000 | 33,663,800,000 | 28,444,800,000 | |
| Net income | 521,700,000 | 1,675,200,000 | 2,195,100,000 | 2,387,900,000 | 1,301,200,000 | 1,865,500,000 | 3,011,600,000 | 4,600,800,000 | 4,162,000,000 | 2,375,800,000 | |
| Diluted EPS | 1.48 | 4.75 | 6.24 | 6.87 | 2.50 | 3.57 | 5.75 | 8.76 | 7.90 | 4.51 | |
| Operating cash flow | 2,300,800,000 | 2,715,800,000 | 2,992,300,000 | 2,860,300,000 | 2,987,200,000 | 2,186,700,000 | 3,027,000,000 | 4,190,000,000 | 4,640,900,000 | 4,415,800,000 | |
| Capital expenditures | 375,200,000 | 423,400,000 | 457,600,000 | 574,000,000 | 550,400,000 | 559,100,000 | 525,000,000 | 695,000,000 | 838,700,000 | 743,000,000 | |
| Dividends paid | 829,300,000 | 558,300,000 | 804,300,000 | 1,138,600,000 | 1,239,800,000 | 708,000,000 | 1,004,700,000 | 1,518,600,000 | 2,288,500,000 | 2,267,100,000 | |
| Share buybacks | 201,600,000 | 70,500,000 | 354,400,000 | 110,200,000 | 42,100,000 | 1,500,000 | 2,100,000 | 3,500,000 | 4,500,000 | 36,100,000 | |
| Assets | 20,638,900,000 | 23,440,200,000 | 25,482,400,000 | 28,361,100,000 | 28,450,000,000 | 29,509,400,000 | 33,275,500,000 | 40,823,400,000 | 43,418,900,000 | 44,336,200,000 | |
| Stockholders' equity | 6,777,600,000 | 8,050,500,000 | 8,592,900,000 | 9,706,100,000 | 10,533,300,000 | 11,594,000,000 | 13,167,100,000 | 15,878,800,000 | 17,506,900,000 | 19,264,000,000 | |
| Free cash flow | 1,925,600,000 | 2,292,400,000 | 2,534,700,000 | 2,286,300,000 | 2,436,800,000 | 1,627,600,000 | 2,502,000,000 | 3,495,000,000 | 3,802,200,000 | 3,672,800,000 |
Ratios
| Metric | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Net margin | 3.06% | 8.61% | 9.34% | 9.33% | 6.95% | 7.93% | 10.45% | 13.10% | 12.36% | 8.35% | |
| Return on equity | 7.70% | 20.81% | 25.55% | 24.60% | 12.35% | 16.09% | 22.87% | 28.97% | 23.77% | 12.33% | |
| Return on assets | 2.53% | 7.15% | 8.61% | 8.42% | 4.57% | 6.32% | 9.05% | 11.27% | 9.59% | 5.36% | |
| Liabilities / equity | 2.05 | 1.91 | 1.97 | 1.92 | 1.70 | 1.55 | 1.53 | 1.57 | 1.48 | 1.30 |
Industry Peer Context
Net margin peer context
ROE peer context
ROA peer context
Financial Bridges
Free cash flow = operating cash flow - capital expenditures
Figure provenance: SEC companyfacts FY 2025. Operating cash flow: accession 0001193125-26-057025; concept NetCashProvidedByUsedInOperatingActivities; source concepts us-gaap:NetCashProvidedByUsedInOperatingActivities | Capital expenditures: accession 0001193125-26-057025; concept PaymentsToAcquirePropertyPlantAndEquipment; source concepts us-gaap:PaymentsToAcquirePropertyPlantAndEquipment | Free cash flow: accession 0001193125-26-057025; concept NetCashProvidedByUsedInOperatingActivities - PaymentsToAcquirePropertyPlantAndEquipment; source concepts us-gaap:NetCashProvidedByUsedInOperatingActivities; us-gaap:PaymentsToAcquirePropertyPlantAndEquipment
Financial Charts
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001193125-26-057025; filed 2026-02-18. Concept: Revenues. Source concepts: us-gaap:Revenues.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001193125-26-057025; filed 2026-02-18. Concept: NetIncomeLoss. Source concepts: us-gaap:NetIncomeLoss.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001193125-26-057025; filed 2026-02-18. Concept: EarningsPerShareDiluted. Source concepts: us-gaap:EarningsPerShareDiluted.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001193125-26-057025; filed 2026-02-18. Concept: NetCashProvidedByUsedInOperatingActivities. Source concepts: us-gaap:NetCashProvidedByUsedInOperatingActivities.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001193125-26-057025; filed 2026-02-18. Concept: PaymentsToAcquirePropertyPlantAndEquipment. Source concepts: us-gaap:PaymentsToAcquirePropertyPlantAndEquipment.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001193125-26-057025; filed 2026-02-18. Concept: PaymentsOfDividends. Source concepts: us-gaap:PaymentsOfDividends.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001193125-26-057025; filed 2026-02-18. Concept: PaymentsForRepurchaseOfCommonStock. Source concepts: us-gaap:PaymentsForRepurchaseOfCommonStock.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001193125-26-057025; filed 2026-02-18. Concept: Assets. Source concepts: us-gaap:Assets.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001193125-26-057025; filed 2026-02-18. Concept: StockholdersEquity. Source concepts: us-gaap:StockholdersEquity.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001193125-26-057025; filed 2026-02-18. Concept: NetCashProvidedByUsedInOperatingActivities - PaymentsToAcquirePropertyPlantAndEquipment. Source concepts: us-gaap:NetCashProvidedByUsedInOperatingActivities; us-gaap:PaymentsToAcquirePropertyPlantAndEquipment.
As-reported value updates
Quarterly
Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-29. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000075362.json.
| Quarter | End Date | Revenue | Net Income | Diluted EPS | Method |
|---|---|---|---|---|---|
| 2022-Q3 | 2022-09-30 | 2.21 | reported discrete quarter | ||
| 2023-Q1 | 2023-03-31 | 1.40 | reported discrete quarter | ||
| 2023-Q2 | 2023-06-30 | 2.33 | reported discrete quarter | ||
| 2023-Q3 | 2023-09-30 | 8,696,400,000 | 1,228,500,000 | 2.34 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 9,076,600,000 | 1,417,300,000 | derived Q4 = FY annual - nine-month YTD | |
| 2024-Q1 | 2024-03-31 | 8,744,300,000 | 1,195,300,000 | 2.27 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 8,772,100,000 | 1,122,600,000 | 2.13 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 8,239,900,000 | 972,100,000 | 1.85 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 7,907,500,000 | 872,000,000 | derived Q4 = FY annual - nine-month YTD | |
| 2025-Q1 | 2025-03-31 | 7,441,700,000 | 505,100,000 | 0.96 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 7,510,500,000 | 723,800,000 | 1.37 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 6,671,800,000 | 590,000,000 | 1.12 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 6,820,800,000 | 556,900,000 | derived Q4 = FY annual - nine-month YTD | |
| 2026-Q1 | 2026-03-31 | 6,776,500,000 | 605,300,000 | 1.15 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 7,546,700,000 | 752,000,000 | 1.43 | reported discrete quarter |
Quarterly Charts
Figure provenance: SEC companyfacts. Latest point: FY 2026 ended 2026-06-30; accession 0001193125-26-323642; filed 2026-07-29. Concept: Revenues. Source concepts: us-gaap:Revenues.
Figure provenance: SEC companyfacts. Latest point: FY 2026 ended 2026-06-30; accession 0001193125-26-323642; filed 2026-07-29. Concept: NetIncomeLoss. Source concepts: us-gaap:NetIncomeLoss.
Figure provenance: SEC companyfacts. Latest point: FY 2026 ended 2026-06-30; accession 0001193125-26-323642; filed 2026-07-29. Concept: EarningsPerShareDiluted. Source concepts: us-gaap:EarningsPerShareDiluted.
Business
Read PCAR's verbatim Item 1 Business section from its latest 10-K: Business.
Risk Factors
Read PCAR's verbatim Item 1A Risk Factors from its latest 10-K: Risk Factors.
Latest quarter (10-Q)
Latest 10-Q source: 0001193125-26-323642.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
OVERVIEW:
PACCAR is a global technology company whose Truck segment includes the design and manufacture of high-quality light-, medium- and heavy-duty commercial trucks. In the U.S. and Canada, trucks are sold under the Kenworth and Peterbilt nameplates, in Europe, under the DAF nameplate and in Mexico, Australia and South America, under the Kenworth and DAF nameplates. The Parts segment includes the distribution of aftermarket parts for trucks and related commercial vehicles. The Company’s Financial Services segment derives its earnings primarily from financing or leasing PACCAR products in North America, Europe, Australia and South America.
Second Quarter Financial Highlights:
•
Worldwide net sales and revenues were $7.55 billion in 2026 compared to $7.51 billion in 2025.
•
Truck sales were $5.25 billion in 2026 compared to $5.24 billion in 2025.
•
Parts sales were $1.75 billion in 2026 compared to $1.72 billion in 2025, primarily from higher sales in Europe.
•
Financial Services revenues were $549.7 million in 2026 compared to $547.7 million in 2025.
•
Net income was $752.0 million ($1.43 per diluted share) in 2026 compared to $723.8 million ($1.37 per diluted share) in 2025.
•
Capital investments were $138.7 million in 2026 compared to $221.1 million in 2025.
•
Research and development (R&D) expenses were $114.3 million in 2026 compared to $112.9 million in 2025.
First Six Months Financial Highlights:
•
Worldwide net sales and revenues were $14.32 billion in 2026 compared to $14.95 billion in 2025, primarily due to lower truck revenues, partially offset by higher parts and financial services revenues.
•
Truck sales were $9.78 billion in 2026 compared to $10.47 billion in 2025, due to lower truck deliveries in all major markets except Europe.
•
Parts sales were $3.46 billion in 2026 compared to $3.41 billion in 2025, primarily from higher sales in Europe.
•
Financial Services revenues were $1.09 billion in 2026 compared to $1.08 billion in 2025.
•
Net income was $1.36 billion ($2.57 per diluted share) in 2026 compared to $1.23 billion ($2.33 per diluted share) in 2025. In 2025, adjusted net income (non-GAAP), excluding a $264.5 million after-tax charge related to civil litigation in Europe, was $1.49 billion ($2.83 per diluted share). See Reconciliation of GAAP to Non-GAAP Financial Measures on page 53.
•
Capital investments were $274.2 million in 2026 compared to $393.0 million in 2025.
•
Research and development (R&D) expenses were $223.4 million in 2026 compared to $228.3 million in 2025.
In the second quarter of 2026, Peterbilt unveiled the Freedom 250 Special Edition Model 589 truck, honoring America's historic 250th birthday. This truck delivers the superior quality and pride of ownership that Peterbilt customers expect, with a red, white and blue design that celebrates freedom and the open road. Also in the second quarter, DAF Trucks was named 'Truck Manufacturer of the Year' by British Motor Trader magazine at its Commercial Industry Awards ceremony in the U.K.
The PACCAR Financial Services (PFS) group of companies has operations covering four continents and 26 countries. The global breadth of PFS and its rigorous credit application process support a portfolio of loans and leases with total assets of $22.27 billion. PFS issued $1.38 billion in medium-term notes during the first six months of 2026 to support new business volume and market share growth and repay maturing debt.
- 36 -
Truck Outlook
Truck industry heavy-duty retail sales in the U.S. and Canada in 2026 are expected to be 230,000 to 270,000 units compared to 232,800 in 2025. In Europe, 2026 truck industry registrations for over 16-tonne vehicles are expected to be 290,000 to 330,000 units compared to 297,000 in 2025. In South America, heavy-duty truck industry registrations in 2026 are projected to be 100,000 to 110,000 units compared to 115,000 in 2025.
The Company has taken mitigating actions to reduce the impact from import tariffs on truck order intake. The Company's North American truck factories are optimally located to operate under the new Section 232 truck tariffs that began in November 2025. The Company’s tariff exposure is minimized by producing trucks locally for the United States, Canada and Mexico. On February 20, 2026, the United States Supreme Court issued a decision invalidating tariffs imposed under the International Emergency Economic Powers Act (IEEPA). This decision resulted in tariff relief and recovery of certain amounts previously paid.
The U.S. Environmental Protection Agency's July 2026 notice of proposed rulemaking (NPRM) reaffirmed the EPA 27 NOx emissions limits with proposed revisions to certain compliance requirements, including extended warranty periods, useful life requirements and other provisions. These revisions are intended to ensure technology readiness of new emissions powertrains and mitigate the costs of compliance associated with the useful life and warranty.
The Company's results could be impacted by further changes in tariff policy, geopolitical uncertainty, emissions regulations and improving freight fundamentals.
Parts Outlook
In 2026, PACCAR Parts sales are expected to increase 3-5% compared to 2025, depending on the economic conditions.
Financial Services Outlook
In 2026, average earning assets are expected to be comparable to 2025. The used truck market is improving. If freight transportation conditions decline due to a weaker economy, then past due accounts, truck repossessions and credit losses would likely increase from the current levels and new business volume and average earning assets would likely decline.
Capital Investments and R&D Outlook
Capital investments in 2026 are expected to be $700 to $750 million and R&D is expected to be $450 to $480 million. The Company continues to invest in next generation clean diesel, hybrid and battery-electric powertrains, integrated connected vehicle services, and expanded manufacturing capabilities.
See the Forward-Looking Statements section of Management’s Discussion and Analysis for factors that may affect these outlooks.
- 37 -
RESULTS OF OPERATIONS:
The Company’s results of operations for the three and six months ended June 30, 2026 and 2025 are presented below.
| Three Months Ended | Six Months Ended | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30 | June 30 | |||||||||||||||
| ($ in millions, except per share amounts) | 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Net sales and revenues: | ||||||||||||||||
| Truck | $ | 5,253.1 | $ | 5,243.1 | $ | 9,779.6 | $ | 10,468.9 | ||||||||
| Parts | 1,746.9 | 1,720.9 | 3,457.0 | 3,410.8 | ||||||||||||
| Other | (3.0 | ) | (1.2 | ) | (5.3 | ) | (3.2 | ) | ||||||||
| Truck, Parts and Other | 6,997.0 | 6,962.8 | 13,231.3 | 13,876.5 | ||||||||||||
| Financial Services | 549.7 | 547.7 | 1,091.9 | 1,075.7 | ||||||||||||
| $ | 7,546.7 | $ | 7,510.5 | $ | 14,323.2 | $ | 14,952.2 | |||||||||
| Income before income taxes: | ||||||||||||||||
| Truck | $ | 360.5 | $ | 308.8 | $ | 536.7 | $ | 673.7 | ||||||||
| Parts | 417.0 | 416.5 | 819.3 | 843.0 | ||||||||||||
| Other* | (6.1 | ) | (.5 | ) | (4.2 | ) | (353.7 | ) | ||||||||
| Truck, Parts and Other | 771.4 | 724.8 | 1,351.8 | 1,163.0 | ||||||||||||
| Financial Services | 124.1 | 123.2 | 239.6 | 244.3 | ||||||||||||
| Investment income | 86.0 | 83.9 | 166.4 | 167.7 | ||||||||||||
| Income taxes | (229.5 | ) | (208.1 | ) | (400.5 | ) | (346.1 | ) | ||||||||
| Net income | $ | 752.0 | $ | 723.8 | $ | 1,357.3 | $ | 1,228.9 | ||||||||
| Diluted earnings per share | $ | 1.43 | $ | 1.37 | $ | 2.57 | $ | 2.33 | ||||||||
| After-tax return on revenues | 10.0 | % | 9.6 | % | 9.5 | % | 8.2 | % |
* In 2025, Other includes a $350.0 million charge related to civil litigation in Europe (EC-related claims) in the first quarter 2025.
The following provides an analysis of the results of operations for the Company’s three reportable segments - Truck, Parts and Financial Services. Where possible, the Company has quantified the impact of factors identified in the following discussion and analysis. In cases where it is not possible to quantify the impact of factors, the Company lists them in estimated order of importance. Factors for which the Company is unable to specifically quantify the impact include market demand and impact from tariffs, fuel prices, geopolitical events, freight tonnage and economic conditions affecting the Company’s results of operations.
2026 Compared to 2025:
Truck
The Company’s Truck segment accounted for 70% and 68% of revenues in the second quarter and the first six months of 2026, respectively, compared to 70% in both the second quarter and the first six months of 2025.
The Company’s new truck deliveries are summarized below:
| Three Months Ended | Six Months Ended | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30 | June 30 | |||||||||||||||||||
| 2026 | 2025 | % CHANGE | 2026 | 2025 | % CHANGE | |||||||||||||||
| U.S. and Canada | 22,000 | 23,000 | (4 | ) | 39,800 | 45,200 | (12 | ) | ||||||||||||
| Europe | 11,200 | 10,600 | 6 | 22,400 | 21,000 | 7 | ||||||||||||||
| Mexico, South America, Australia and other | 5,500 | 5,700 | (4 | ) | 9,600 | 13,200 | (27 | ) | ||||||||||||
| Total units | 38,700 | 39,300 | (2 | ) | 71,800 | 79,400 | (10 | ) |
Worldwide new truck deliveries decreased in the second quarter of 2026 compared to the same period of 2025, primarily reflecting lower retail demand in the U.S and Canada, partially offset by improved demand in Europe and Mexico. New truck deliveries in first six months of 2026 decreased compared to the same period of 2025, reflecting lower retail demand in all major markets except Europe.
- 38 -
Market share data discussed below is provided by third-party sources and is measured by either retail sales or registrations for the Company’s dealer network as a percentage of total retail sales or registrations depending on the geographic market. In the U.S. and Canada, market share is based on retail sales. In Europe, market share is based primarily on registrations.
In the first six months of 2026, industry retail sales in the heavy-duty market in the U.S. and Canada were 104,800 units compared to 120,800 units in the same period of 2025. The Company’s heavy-duty truck retail market share was 29.6% in the first six months of 2026 compared to 30.4% in the first six months of 2025. The medium-duty market was 50,800 units in the first six months of 2026 compared to 54,300 units in the same period of 2025. The Company’s medium-duty market share was 12.3% in the first six months of 2026 compared to 14.0% in the first six months of 2025. In 2026, the U.S. and Canada medium-duty market size and the Company's share for the prior-year periods have been revised, consistent with the third-party data provider.
The over 16‑tonne truck market in Europe in the first six months of 2026 was 165,000 units compared to 151,100 units in the first six months of 2025. DAF over 16‑tonne market share was 13.6% in the first six months of 2026 compared to 14.2% in the same period of 2025. The 6 to 16‑tonne market in the first six months of 2026 was 18,300 units compared to 19,900 units in the same period of 2025. DAF market share in the 6 to 16-tonne market in the first six months of 2026 was 9.2% compared to 9.9% in the same period of 2025.
The over 16-tonne truck market in Brasil in the first six months of 2026 was 37,200 units compared to 41,700 units in the same perio
[Excerpt truncated for page length; source filing is linked above.]
Latest 10-K MD&A (excerpt)
Latest 10-K Item 7 source: 0001193125-26-057025. The complete FY 2025 MD&A is published at /company/PCAR/mda/fy2025/.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
OVERVIEW:
PACCAR is a global technology company whose Truck segment includes the design and manufacture of high-quality light-, medium- and heavy-duty commercial trucks. In the U.S. and Canada, trucks are sold under the Kenworth and Peterbilt nameplates, in Europe, under the DAF nameplate and in Mexico, Australia and South America, under the Kenworth and DAF nameplates. The Parts segment includes the distribution of aftermarket parts for trucks and related commercial vehicles. The Company’s Financial Services segment derives its earnings primarily from financing or leasing PACCAR products in North America, Europe, Australia and South America.
2025 Financial Highlights
•
Worldwide net sales and revenues were $28.44 billion in 2025 compared to $33.66 billion in 2024, primarily due to lower truck revenues, partially offset by higher parts and financial services revenues.
•
Truck sales were $19.37 billion in 2025 compared to $24.84 billion in 2024 due to lower truck deliveries in all major markets.
•
Parts sales were $6.87 billion in 2025 compared to $6.67 billion in 2024, reflecting higher sales in the U.S. and Canada
and Europe.
•
Financial Services revenues were $2.21 billion in 2025 compared to $2.10 billion in 2024, primarily due to higher interest income driven by retail portfolio growth and higher portfolio yields.
•
In 2025, PACCAR earned net income for the 87th consecutive year. Net income was $2.38 billion ($4.51 per diluted share) in 2025 compared to $4.16 billion ($7.90 per diluted share) in 2024.
•
Adjusted net income (non-GAAP), excluding a $264.5 million after-tax charge related to civil litigation in Europe, was $2.64 billion ($5.01 per diluted share). After-tax return on beginning equity (ROE) was 13.6% in 2025, which includes the $264.5 million after-tax charge related to civil litigation in Europe in the first quarter of this year. Excluding the after-tax charge, adjusted ROE (non-GAAP) was 15.1%. This compares to an ROE of 26.2% in 2024. See Reconciliation of GAAP to Non-GAAP Financial Measures on page 31.
•
Capital investments were $728.5 million in 2025 compared to $795.8 million in 2024.
•
Research and development (R&D) expenses were $445.5 million in 2025 compared to $452.9 million in 2024.
Kenworth constructed a 46,000 square-foot robotic chassis paint facility in Chillicothe, Ohio. PACCAR also completed a new $35 million, 50,000 square-foot engine remanufacturing facility and is enhancing its existing engine factory in Columbus, Mississippi. PACCAR is also enhancing its other engine facility in the Netherlands. PACCAR opened a new 180,000 square-foot Parts Distribution Center (PDC) in Calgary, Canada, to enhance parts delivery to dealers and customers in the region.
The PACCAR Financial Services (PFS) group of companies has operations covering four continents and 26 countries. The global breadth of PFS and its rigorous credit application process support a portfolio of loans and leases with total assets of $22.80 billion. PFS issued $3.12 billion in medium-term notes during 2025 to support new business volume and market share growth and repay maturing debt.
Truck Outlook
Truck industry heavy-duty retail sales in the U.S. and Canada in 2026 are expected to be 230,000 to 270,000 units compared to 232,800 in 2025. In Europe, the 2026 truck industry registrations for over 16-tonne vehicles are expected to be 280,000 to 320,000 units compared to 297,000 in 2025. In South America, heavy-duty truck industry registrations in 2026 are projected to be 100,000 to 110,000 compared to 115,000 in 2025.
The Company's truck and parts products have been negatively affected since March 2025 by import tariffs imposed by the U.S. government and actions taken by other countries. While the Company has taken mitigating actions to reduce the impact, the ongoing impact from import tariffs on truck order intake and profit margins remains unfavorable. The Company's North American truck factories are optimally located to operate under the new Section 232 truck tariffs that began in November 2025. The Company’s tariff exposure is minimized by producing trucks locally for the United States, Canada and Mexico. The Company manufactures its trucks for U.S. customers in its Ohio, Texas, and Washington state factories.
17
The recent U.S. Environmental Protection Agency announcement reaffirmed the EPA27 NOx limit and could eliminate changes to extended warranty requirements and useful life requirements on new emissions systems. The Company's results could be impacted by changes in tariff policy, including the expected U.S. Supreme Court ruling on the International Emergency Economic Power Acts (IEEPA) tariffs, emissions regulations and improving freight fundamentals.
Parts Outlook
In 2026, PACCAR Parts sales are expected to increase 4-8% compared to 2025, depending on the economic conditions.
Financial Services Outlook
In 2026, average earning assets are expected to be comparable to 2025. The used truck market has been improving, which is reflected in PFS' quarterly results this year. If freight transportation conditions decline due to a weaker economy, then past due accounts, truck repossessions and credit losses would likely increase from the current levels and new business volume and average earning assets would likely decline.
Capital Investments and R&D Outlook
PACCAR's excellent long-term profits, strong balance sheet and consistent focus on quality have enabled the Company to invest $9.2 billion in new and expanded facilities, innovative products and new technologies during the past decade. Capital investments in 2026 are expected to be $725 to $775 million, and R&D is expected to be $450 to $500 million. PACCAR is investing in next generation clean diesel and alternative powertrains, integrated connected vehicle services, flexible manufacturing capabilities and autonomous and advanced driver assistance systems that create value for customers. The Company is embedding artificial intelligence across its business to drive innovation, profitable growth and enhanced performance for the Company's customers. In addition to the capital and R&D investments, the Company expects to continue investing in its U.S.-based battery joint venture, Amplify Cell Technologies.
See the Forward-Looking Statements section of Management’s Discussion and Analysis for factors that may affect these outlooks.
18
RESULTS OF OPERATIONS:
The Company’s results of operations for the years ended December 31, 2025 and 2024 are presented below. For information on the year ended December 31, 2023, refer to Part II, Item 7 in the 2024 Annual Report on Form 10-K.
| ($ in millions, except per share amounts) | ||||||||
|---|---|---|---|---|---|---|---|---|
| Year Ended December 31, | 2025 | 2024 | ||||||
| Net sales and revenues: | ||||||||
| Truck | $ | 19,365.3 | $ | 24,838.4 | ||||
| Parts | 6,873.7 | 6,666.4 | ||||||
| Other | (3.9 | ) | 59.5 | |||||
| Truck, Parts and Other | 26,235.1 | 31,564.3 | ||||||
| Financial Services | 2,209.7 | 2,099.5 | ||||||
| $ | 28,444.8 | $ | 33,663.8 | |||||
| Income before income taxes: | ||||||||
| Truck | $ | 870.8 | $ | 2,852.6 | ||||
| Parts | 1,668.0 | 1,704.5 | ||||||
| Other* | (346.8 | ) | 13.5 | |||||
| Truck, Parts and Other | 2,192.0 | 4,570.6 | ||||||
| Financial Services | 485.4 | 435.6 | ||||||
| Investment income | 346.1 | 394.7 | ||||||
| Income taxes | (647.7 | ) | (1,238.9 | ) | ||||
| Net income | $ | 2,375.8 | $ | 4,162.0 | ||||
| Diluted earnings per share | $ | 4.51 | $ | 7.90 | ||||
| After-tax return on revenues | 8.4 | % | 12.4 | % |
* In 2025, Other includes a $350.0 million charge related to civil litigation in Europe (EC-related claims) in the first quarter 2025. In 2024, Other includes a $14.0 million gain on sale of the winch business.
The following provides an analysis of the results of operations for the Company’s three reportable segments - Truck, Parts and Financial Services. Where possible, the Company has quantified the impact of factors identified in the following discussion and analysis. In cases where it is not possible to quantify the impact of factors, the Company lists them in estimated order of importance. Factors for which the Company is unable to specifically quantify the impact include market demand and impact from tariffs, fuel prices, freight tonnage and economic conditions affecting the Company’s results of operations.
2025 Compared to 2024:
Truck
The Company’s Truck segment accounted for 68% of revenues in 2025 compared to 74% in 2024.
The Company’s new truck deliveries are summarized below:
| Year Ended December 31, | 2025 | 2024 | % CHANGE | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| U.S. and Canada | 77,300 | 106,400 | (27 | ) | ||||||||
| Europe | 43,800 | 45,400 | (4 | ) | ||||||||
| Mexico, South America, Australia and other | 23,100 | 33,500 | (31 | ) | ||||||||
| Total units | 144,200 | 185,300 | (22 | ) |
Worldwide new truck deliveries decreased in 2025 compared to 2024, reflecting lower retail demand in all major markets.
Market share data discussed below is provided by third-party sources and is measured by either retail sales or registrations for the Company’s dealer network as a percentage of total retail sales or registrations depending on the geographic market. In the U.S. and Canada, market share is based on retail sales. In Europe, market share is based primarily on registrations.
In 2025, industry retail sales in the heavy-duty market in the U.S. and Canada was 232,800 units compared to 268,100 units in 2024. The Company’s heavy-duty truck retail market share was 29.9% in 2025 compared to 30.7% in 2024. The medium-duty market was 88,400 units in 2025 compared to 110,400 units in 2024. The Company’s medium-duty market share was 15.9% in 2025 compared to 18.0% in 2024.
19
The over 16-tonne truck market in Europe in 2025 decreased to 297,000 units from 316,100 units in 2024, and DAF’s market share was 13.5% in 2025 compared to 14.4% in 2024. The 6 to 16-tonne market was 40,900 units in 2025 and 50,900 units in 2024. DAF’s market share in the 6 to 16-tonne market in 2025 was 9.7% compared to 9.5% in 2024.
The over 16-tonne truck market in Brasil in 2025 was 86,700 units compared to 97,700 units in 2024, and DAF Brasil's market share was 8.6% in 2025 compared to 9.9% in 2024.
The Company’s worldwide truck net sales and revenues are summarized below:
| ($ in millions) | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Year Ended December 31, | 2025 | 2024 | % CHANGE | |||||||||
| Truck net sales and revenues: | ||||||||||||
| U.S. and Canada | $ | 11,354.1 | $ | 15,386.1 | (26 | ) | ||||||
| Europe | 4,971.4 | 4,998.2 | (1 | ) | ||||||||
| Mexico, South America, Australia and other | 3,039.8 | 4,454.1 | (32 | ) | ||||||||
| $ | 19,365.3 | $ | 24,838.4 | (22 | ) | |||||||
| Truck income before income taxes | $ | 870.8 | $ | 2,852.6 | (69 | ) | ||||||
| Pre-tax return on revenues | 4.5 | % | 11.5 | % |
The Company’s worldwide truck net sales and revenues decreased to $19.37 billion in 2025 from $24.84 billion in 2024 primarily due to lower truck unit deliveries in all major markets from lower retail demand. Truck segment income before income taxes and pre-tax return on revenues decreased primarily due to lower truck unit deliveries in all major markets from lower retail demand, reflecting economic conditions as well as higher tariff costs resulting from current trade policies primarily in the U.S.
The major factors for the Truck segment changes in net sales and revenues, cost of sales and revenues and gross margin between 2025 and 2024 are
[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]
MD&A history
Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.