Paccar (PCAR) Q2 2025 earnings summary

Executive summary

• Q2 2025 net sales and revenues were $7.51 billion, down from $8.77 billion in Q2 2024, with net income at $723.8 million ($1.37 per diluted share), impacted by a $350 million pre-tax European litigation charge; adjusted net income for H1 2025 was $1.49 billion.

• Truck deliveries in Q2 2025 totaled 39,300 units, down from 48,400 in Q2 2024, while PACCAR Parts achieved record quarterly revenues of $1.72 billion and pre-tax profit of $417 million.

• Financial Services segment reported Q2 2025 pre-tax income of $123.2 million, managing a portfolio of 233,000 trucks and trailers.

• Investments continue in new trucks, electrification, advanced manufacturing, and aftermarket solutions.

• Capital investments and R&D spending for 2025 are projected at $750–$800 million and $450–$480 million, respectively.

Financial highlights

• Q2 2025 truck sales were $5.24 billion (down from $6.58 billion), parts sales $1.72 billion (up from $1.66 billion), and financial services revenues $547.7 million (up from $509.8 million).

• Gross margin for the Truck segment in Q2 2025 was 8.7%, down from 15.0% in Q2 2024; Parts gross margin was 30.0%.

• Q2 2025 diluted EPS was $1.37, down from $2.13 in Q2 2024; first half diluted EPS was $2.33, adjusted EPS $2.83.

• Cash and marketable securities at June 30, 2025 totaled $8.28 billion.

• Operating cash flow for the first six months was $1.74 billion.

Outlook and guidance

• U.S. and Canada Class 8 truck industry retail sales expected at 230,000–260,000 units in 2025; European truck registrations forecast at 270,000–300,000 units.

• South American above 16-ton truck market forecasted at 90,000–100,000 units in 2025.

• Parts sales expected to increase 2–6% in 2025, depending on economic and tariff conditions.

• Financial Services average earning assets projected to rise 4–6% in 2025.

• Optimism for 2026 driven by regulatory clarity and anticipated pre-buy ahead of 2027 NOx emission standards.