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 of $723.8 million ($1.37 per share), impacted by a $350 million pre-tax charge for European litigation; 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, with over 90% of U.S.-delivered trucks produced domestically.

• PACCAR Parts achieved record quarterly revenues of $1.72 billion and pre-tax income of $417 million, with strong financial services results.

• Investments continued in new trucks, advanced manufacturing, electrification, and technology-enabled aftermarket solutions.

• Ongoing expansion in used truck business, including a new center in Warsaw, Poland.

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 2025 diluted EPS was $2.33, adjusted EPS $2.83.

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

• PACCAR Financial Services Q2 pre-tax income was $123.2 million, up from $111.2 million in Q2 2024.

Outlook and guidance

• 2025 U.S. and Canada Class 8 truck industry retail sales expected at 230,000–260,000 units; European registrations at 270,000–300,000; South American above 16-tonne market at 90,000–100,000 units.

• Parts sales expected to grow 2–6% in 2025, with strong demand and higher ship days in Europe.

• Capital investments for 2025 projected at $750–$800 million; R&D at $450–$480 million.

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

• Anticipates North American market to strengthen as tariff and regulatory clarity improves and pre-buy activity ahead of 2027 NOx standards increases.