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 $769.6 million, excluding a $264.5 million after-tax charge for EU civil litigation; net income was $505.1 million.

• Record quarterly revenues at PACCAR Parts ($1.69 billion) and strong performance in Financial Services, which reported $528 million in revenues and $121.1 million pretax profit.

• Truck deliveries totaled 40,100 units in Q1 2025, down from 48,100 in Q1 2024, with truck segment revenues at $5.23 billion and pretax profit of $364.9 million.

• Capital investments were $171.9 million and R&D expenses $115.4 million in Q1 2025.

• The company operates globally through Commercial Vehicles, Aftermarket Parts, and Financial Services, emphasizing quality, innovation, and conservative financial management.

Financial highlights

• Adjusted net income for Q1 2025 was $769.6 million ($1.46 per diluted share), with a $264.5 million after-tax EC-related charge excluded; net income was $505.1 million ($0.96 per diluted share).

• PACCAR Parts achieved record revenues of $1.69 billion and pretax profit of $426.5 million, with a gross margin of 30.7%.

• Financial Services segment reported revenues of $528 million and pretax profit of $121.1 million, up 6% year-over-year.

• Truck segment accounted for 70% of Q1 2025 revenues, with gross margin declining to 9.7% due to lower volumes and tariffs.

• Cash and marketable securities totaled $8.1 billion as of March 31, 2025.

Outlook and guidance

• 2025 market forecasts: U.S./Canada Class 8 truck sales at 235,000–265,000 units; Europe above-16-tonne at 270,000–300,000 units; South America above-16-tonne at 100,000–110,000 units.

• Parts sales expected to grow 2–4% in 2025, depending on economic and tariff conditions.

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

• Financial Services average earning assets expected to be comparable to 2024; used truck market normalized in North America but remains soft in Europe.

• Infrastructure spending and regulatory changes are expected to support demand for vocational and zero-emission trucks.