Paccar (PCAR) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenues were $7.44 billion, down from $8.74 billion in Q1 2024, with adjusted net income of $770 million, excluding a $264.5 million after-tax provision for EU civil litigation settlements.

• Net income was $505 million, or $0.96 per diluted share, compared to $1.20 billion in Q1 2024; adjusted net income was $769.6 million ($1.46 per diluted share).

• Record PACCAR Parts revenues of $1.7 billion and strong Financial Services performance, with pretax profit of $121 million and a portfolio of 235,000 trucks and trailers.

• Truck deliveries were 40,100 units, down from 48,100 in the prior year quarter, with truck segment revenues at $5.23 billion and pretax profit of $365 million.

• Leadership transitions included Harrie Schippers retiring and Brice Poplawski promoted to CFO.

Financial highlights

• Adjusted net income for Q1 2025 was $770 million, excluding a $264.5 million after-tax EC-related charge.

• Gross margin for truck, parts, and other businesses was 14.8% in Q1, with truck segment gross margin at 9.7%.

• PACCAR Parts pretax income was $427 million, with a gross margin of 30.7%.

• Financial Services pretax income was $121 million, with revenues up 4% to $528 million.

• After-tax return on revenues was 6.8% (10.3% adjusted, non-GAAP) versus 13.7% in Q1 2024.

Outlook and guidance

• U.S. and Canadian Class 8 market estimated at 235,000–265,000 trucks for 2025; European above-16-ton market projected at 270,000–300,000 trucks; South America above-16-ton at 100,000–110,000 vehicles.

• Q2 truck deliveries expected at 37,000–39,000 units.

• Q2 gross margin guidance of 13%–14%, with potential improvement in H2 as tariff and regulatory clarity increases.

• Parts sales expected to grow 2%–4% in Q2 and for the full year.

• Capital expenditures projected at $700–$800 million and R&D at $450–$480 million for 2025.