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July 2025 Page 1
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July 2025 Page 2 This presentation may contain statements that are forward looking. These statements are based on current expectations and assumptions that are subject to risks and uncertainties, which may cause actual results to differ materially. A summary of risks and uncertainties is described in more detail in our periodic reports filed with the Securities and Exchange Commission (SEC). We undertake no duty to update or revise this presentation, whether as a result of new information, future events or otherwise. For the most recent financial, risk and other information about PACCAR, please see our SEC filings and most recent earnings release available on the Investor Relations page of www.paccar.com. Disclosure Regarding Forward-Looking Statements
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July 2025 Page 3 PACCAR Overview Our Culture PACCAR Brands New Kenworth T680 New Peterbilt Model 579 New Peterbilt Model 589 New Kenworth and Peterbilt Medium Duty New DAF XD, XF, XG, XG+ New DAF Truck Models PACCAR Powertrain Truck Production Excellent Financial Performance Net Income Margin SG&A % of Sales Inventory Turns Net Income per Truck ROIC Capital Allocation Strategy Dividends and Stock Repurchases Excellent Dividend Yield 4 5 6 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Index Trucking Moves the Economy >6t Global Truck Market >16t Truck Market Size PACCAR Strategy Investing Throughout the Business Cycle MX Engine Production Zero Emission Trucks Battery Charging Solutions Battery Strategy Battery Cell Production Joint Venture Batteries in Multiple Applications Autonomous Trucks Role in Autonomous Trucking Aurora Partnership Advantage & Proprietary Content Connected Services Platform Science Partnership PACCAR Innovation Center Global Embedded Services Manufacturing Capacity Investments 25 26 27 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Parts Strategy Distribution Centers and Dealer Map Global Dealer Network Kenworth and Peterbilt Locations Financial Services Strategy Heavy Duty Market Share DAF Brasil Rest of World Growth Infrastructure Investment and Jobs Act Emissions Regulations Summary Fuel Economy Improvement ESG Leadership Revenues and Profits Financial Results Historical Gross Margins Truck Results Parts Results Financial Services Results Credit Rating Competitive Advantages Appendix 46 47 48 49 50 51 52 53 54 55 56 57 59 60 61 62 63 64 65 66 67
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July 2025 Page 4 Truck and Other 74% Parts 20% Fin Svcs 6% PACCAR A Global Technology Company in Commercial Vehicles Truck and Other $24.8B Revenues Premium Quality Light, Medium and Heavy Commercial Vehicles, Diesel and Alternative Fuel Powertrains Aftermarket Parts $6.7B Revenues Distribute Aftermarket Parts through Global Network of 2,400 Dealerships Financial Services $2.1B Revenues Finance and leasing portfolio of 237,100 trucks and trailers, with assets of $22.4B 86 Years of Consecutive Profitability; Dividend Paid Every Year Since 1941 2024 Revenues $33.7B 2024 Net Income $4.2B 2024 Avg Dividend Yield 4.0%
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July 2025 Page 5 Quality Highest Integrity Operational Excellence Conservative Financial Management Long-Term Perspective Our Vision PACCAR is creating trucks and transportation solutions that drive the world’s future. Our focus is on doing things in an ethical and disciplined manner. We make decisions utilizing conservative financial principles and common sense for the long-term benefit of our customers, employees and shareholders.
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July 2025 Page 6 PACCAR’s business segments include Commercial Vehicles, Powertrain, Aftermarket Parts, Financial Services and Information Technology. PACCAR’s premium brands Kenworth, Peterbilt and DAF are the premier light, medium and heavy duty commercial trucks in their markets. Other brands include PACCAR Powertrain, PACCAR Parts, PACCAR Financial, and PACCAR Leasing.
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July 2025 Page 7 PACCAR’s product investments deliver industry-leading performance and value to our customers Our products reflect our core brand values of quality, innovation and technology
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July 2025 Page 8 New Kenworth T680 Kenworth’s T680 heavy truck features an enhanced aerodynamic exterior design, driver optimized technology, including a customizable 15” digital dash display, and 7% greater fuel economy
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July 2025 Page 9 New Peterbilt Model 579 Peterbilt’s Model 579 Class 8 truck sets the standard for technology and driver comfort and delivers 7% greater fuel efficiency
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July 2025 Page 10 New Peterbilt Model 589 Peterbilt’s new Model 589 Class 8 truck features a new 2.1-meter-wide cab with advanced driver technology and a new digital display
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July 2025 Page 11 New Peterbilt and Kenworth Medium Duty The all new medium duty product line-up features an 8” wider cab with 3-person seating. Powered by the updated PACCAR PX engine and PACCAR TX-8 automatic transmission.
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July 2025 Page 12 New DAF XB, XD, XF, XG, XG+ DAF is the first truck manufacturer in the industry to have taken full advantage of Europe’s new regulations governing truck design. The new trucks feature a new aerodynamic design, 13% greater fuel efficiency and larger interior space.
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July 2025 Page 13 New DAF Truck Models Electric XD and XF XF and XG+ XD Vocational DAF XG+ Interior
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July 2025 Page 14 The proprietary PACCAR Powertrain is the most advanced heavy-duty powertrain in the market. The PACCAR MX engines are integrated to the PACCAR TX-12 automated transmission and the efficient DX-40 tandem drive axle to achieve exceptional performance and fuel economy. PACCAR engines undergo rigorous validation including one-million mile endurance testing. MX-13: up to 510 hp and 1,850 lb.-ft. of torque MX-11: up to 445 hp and 1,700 lb.-ft. of torque Kenworth and Peterbilt offer the PACCAR FX-20 steer axle in addition to PACCAR DX- 40 tandem drive axle. DAF includes a range of lightweight and durable PACCAR front and rear axles.
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July 2025 Page 15 0 50 100 150 200 250 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Units (000s) Brasil Australia Mexico Canada US Europe PACCAR Truck Production Over 1.7 Million Trucks Produced 2015 - 2024 189.1 154.7 140.9 158.9 PACCAR produced 185,300 trucks in 2024 198.8 133.3 162.7 185.9 204.2 185.3
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July 2025 Page 16 0 5 10 15 20 25 30 35 40 0 5 10 15 20 25 30 35 40 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 $ Billions$ Billions Revenues 0.0 1.0 2.0 3.0 4.0 5.0 0.0 1.0 2.0 3.0 4.0 5.0 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 $ Billions$ Billions Net Income PACCAR Excellent Financial Performance Throughout the Business Cycle • Reputation for superior operational excellence and premium-quality products and services • Long-term growth in revenues and net income reflect increased market share in North America and Europe, excellent aftermarket parts performance and growth in financial services • Maintain profitability throughout the cycle due to strong cost control discipline and experienced management team
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July 2025 Page 17 -6% -3% 0% 3% 6% 9% 12% 15% 18% -6% -3% 0% 3% 6% 9% 12% 15% 18% 15 16 17 18 19 20 21 22 23 24 1H25 PACCAR Volvo Daimler Truck Traton Iveco Best-in-Class Operating Efficiency Industry Operating Margin
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July 2025 Page 18 0% 4% 8% 12% 16% 0% 4% 8% 12% 16% 15 16 17 18 19 20 21 22 23 24 PACCAR Volvo Daimler Truck Traton Iveco Best-in-Class Operating Efficiency SG&A % of Sales PACCAR’s SG&A as a percentage of sales is much lower than its peer group, reflecting strong financial discipline
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July 2025 Page 19 0 2 4 6 8 10 12 14 0 2 4 6 8 10 12 14 PACCAR Iveco Volvo Daimler Truck Traton Average 2020 - 2024 Best-in-Class Inventory Turns 0 2 4 6 8 10 12 14 0 2 4 6 8 10 12 14 PACCAR Iveco Volvo Daimler Truck Traton 2024 PACCAR’s inventory turns are the highest in the industry, a result of the PACCAR Production System, Lean Manufacturing and Six Sigma.
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July 2025 Page 20 0 2,500 5,000 7,500 10,000 12,500 15,000 17,500 20,000 22,500 25,000 0 25 50 75 100 125 150 175 200 225 250 96 98 00 02 04 06 08 10 12 14 16 18 20 22 24 $/TruckTruck Units (000s) Trucks Net Income per Truck Net Income per Truck • Net income per truck is PACCAR’s net income divided by total truck unit sales. • Truck sales not only generate profit from the sale, but also parts and finance profit. This illustrates the strength of PACCAR’s business model, providing the highest quality trucks, aftermarket support and financing. • PACCAR achieved $22,500 net income per truck in 2024.
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July 2025 Page 21 0% 5% 10% 15% 20% 25% 0% 5% 10% 15% 20% 25% Average 2020 - 2024 Best-in-Class Return on Invested Capital ROIC = NOPAT/(Equity + Manufacturing Debt + Postemployment Benefit Liabilities) 0% 10% 20% 30% 40% 0% 10% 20% 30% 40% 2024 • 25.5% ROIC in 2024 • Premium price and strong profitability • Effective capital allocation process • Lean operations from PACCAR production system • Independent dealer network
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July 2025 Page 22 • High ROI capital investments • Pay regular quarterly and annual dividend − Dividend paid every year since 1941 − Total dividends paid approximately 50% of net income for many years − Regular quarterly dividend 10-year annualized growth of 7% (as of 4Q24) • Strategic M&A − Disciplined valuation and screening process − Clear path to value creation • No unfunded pension obligation Capital Allocation Strategy
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July 2025 Page 23 0 500 1,000 1,500 2,000 2,500 0 500 1,000 1,500 2,000 2,500 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 $ Millions$ Millions Dividends Stock Repurchased Dividends Declared and Stock Repurchases CAGR = 7%
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July 2025 Page 24 0% 1% 2% 3% 4% 5% 6% 0% 1% 2% 3% 4% 5% 6% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Average Dividend Yield = 3.9% Excellent Dividend Yield • PACCAR’s dividend yield reflects the total quarterly + annual dividends declared in the year, divided by the average stock price for the year • PACCAR’s dividend yield has averaged 3.9% over the last ten years
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July 2025 Page 25 Truck 72% Rail 12% Pipeline 10% Water 6% Trucking Moves the Economy 72% of U.S. Freight is Moved by Truck Trucking is the lifeblood of the economy. In the U.S., the economy depends on trucks to deliver ten billion tons of virtually every commodity consumed - 72% of all the freight transported. 38.9 million commercial trucks, including 4.3 million heavy-duty trucks, move that freight. The percentage of tonnage by mode is stable over time.
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329 358 408 180 176 142 2019 2024 Units in Thousands >6t Truck Market 2019 – 3.1 Million 2024 – 3.0 Million 1,026 North America South America Africa & Middle East Europe India 316 301316 Rest of Asia Russia/CIS China 3224 Australia 453 374 96 1,314 277 115 152 PACCAR Truck Assembly >6t Global Truck Market
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July 2025 Page 27 0 50 100 150 200 250 300 350 400 0 50 100 150 200 250 300 350 400 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Units (000s)Units (000s) US & Canada Europe South America >16t Truck Market Size U.S. and Canada 230,000 – 260,000 Europe 270,000 – 300,000 S. America 90,000 – 100,000 2025 Market Forecast Estimate
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July 2025 Page 28 Strategy
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July 2025 Page 29 A Culture of Excellence Technology Quality Innovation Foundation Premium Trucks Effective Transportation Solutions Market Expansion Profitable Growth
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July 2025 Page 30 • Operating cash flow has averaged $3.4 billion for the last five years and has grown 9%/year over the last 20 years − Strong operating cash flow enables PACCAR to invest in growth throughout the business cycle • PACCAR has invested $8.6 billion in capital projects, new products and technologies in the last decade ended 2024 • PACCAR partners with suppliers and technology providers to reduce initial investments in speculative technologies • Key investments: − Next generation Kenworth and Peterbilt Class 8 trucks − New Kenworth and Peterbilt Class 5-7 trucks − New generation DAF XB, XD, XF, XG and XG+ trucks − Integrated powertrains including diesel, electric, hybrid and hydrogen technologies − PACCAR MX-13 and MX-11 engine factory in North America − DAF Brasil factory − PACCAR Parts distribution centers PACCAR Investing Throughout the Business Cycle 0 250 500 750 1,000 1,250 1,500 0 250 500 750 1,000 1,250 1,500 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 $ Millions$ Millions Capital Investments and R&D Expenses Capital R&D 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 $ Billions$ Billions Operating Cash Flow
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July 2025 Page 31 0 200 400 600 800 1,000 1,200 1,400 0 200 400 600 800 1,000 1,200 1,400 15 16 17 18 19 20 21 22 23 24 # of Engines (000s) # of Engines (000s) Cumulative PACCAR MX Engines Produced DAF MX 13 KW/PB MX 13 MX 11 • PACCAR has produced over 738,000 engines in Europe and over 347,000 engines in North America. • Growing presence in South America and Australia. • The PACCAR engine factory in Columbus, MS, began operations in 2010 with the North American launch of the flagship MX-13 engine. • PACCAR expanded its engine program in 2013 with the introduction of the PACCAR MX-11 in Europe. The MX-11 was launched in North America in January 2016. Cumulative PACCAR MX Engines Produced PACCAR MX-11 10.8 Liter PACCAR MX-13 12.9 Liter
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July 2025 Page 32 Amplify Cell Technologies JV Battery Factory (Rendering) Peterbilt 579EV Peterbilt 520EV Peterbilt 220EV DAF XF Electric DAF XD Electric DAF XB Electric Kenworth K270E/K370E Kenworth T680E PACCAR Zero Emissions
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July 2025 Page 33 Battery Charging Solutions • PACCAR Parts has introduced new electric vehicle charging stations to support the global launch of electric vehicles • Compatible with Kenworth, Peterbilt and DAF electric trucks and other brands • Charging power from 20 kW up to 350 kW • PACCAR is collaborating with Faith Technologies and Schneider Electric to provide charging infrastructure solutions for customers who purchase Kenworth and Peterbilt electric trucks in the US and Canada
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July 2025 Page 34 Advantages of lithium-iron-phosphate (LFP) battery technology: • Lower cost • Longer life • Enhanced safety • No nickel or cobalt PACCAR Battery Strategy PACCAR proprietary packs deliver • Cost leadership • Supply security • Commercial vehicle specific • Battery management system
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July 2025 Page 35 • Domestic LFP production • PACCAR owns 30% of JV • Commercial vehicle products • Total project investment $2 – 3B • 21 GWh capacity • Start of production in 2027 Amplify Cell Technologies Battery Cell Joint Venture Marshall County, Mississippi
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July 2025 Page 36 Battery Electric PACCAR Batteries Reduce Cost in Multiple Applications Hybrid Electric Charger Energy Storage Fuel Cell Electric
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July 2025 Page 37 • PACCAR has invested in a strategic partnership with Aurora to develop, test and commercialize autonomous Peterbilt and Kenworth trucks • PACCAR’s autonomous vehicle platform will be integrated with the Aurora self-driving technologies • PACCAR customers will benefit from the autonomous vehicles’ enhanced safety and operational efficiency • Kenworth T680 and Peterbilt 579 trucks utilizing the Aurora Driver are expected to be delivered in the next several years Autonomous Trucks Autonomous Kenworth T680 Test Vehicle with Aurora Driver
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July 2025 Page 38 PACCAR’s Essential Role in Autonomous Trucking Steering Braking High Power Compute Controls & Automated Driver Interface Replacement Parts Repair and MaintenanceEngineering and Manufacturing PACCAR’s Autonomous Vehicle Platform Connected Services
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July 2025 Page 39 • PACCAR and Aurora have five customer trials underway with FedEx, Uber Freight, Werner Enterprises, Hirschbach Motor Lines, and Schneider National PACCAR and Aurora Partner on Autonomous Truck Pilots
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July 2025 Page 40 PACCAR Electronics Creates Strong Competitive Advantage Safety Systems Connected Truck Controls Switches Engine Controller • PACCAR formed PACCAR Electronics in 2024 to address the growing importance of electronics within PACCAR product development • Electronic systems include new vehicle architecture, safety systems, vehicle controls and switches and connectivity • PACCAR trucks have approx. 100 control systems with about 100 million lines of code • Connected trucks are sophisticated and run by software that requires ongoing investment • Proprietary content creates a strong advantage for PACCAR
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July 2025 Page 41 Secure Vehicle Data Transportation Solutions Business Solutions Data as a Service Connected Services PACCAR is launching a new state-of-the-art global connected truck platform, PACCAR Connect. New proprietary hardware and data platform provides: • Cybersecurity protection & monitoring • Over-the-air software updates • Access to industry leading business applications • Transportation solutions for uptime & fleet management • Data as a service capabilities
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July 2025 Page 42 • PACCAR has made a strategic investment in Platform Science • PACCAR and Platform Science will collaborate on connected trucks • PACCAR will integrate Platform Science Virtual Vehicle into Kenworth and Peterbilt trucks • The solution enables fleets to access telematics, software solutions, real-time data, and third-party applications directly from their vehicles • Customers will have access to a customizable platform elevating their capabilities to innovate and utilize, manage and deploy digital applications PACCAR and Platform Science Connected Vehicle Partnership
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July 2025 Page 43 • PACCAR Innovation Center in Silicon Valley enhances PACCAR’s access to emerging technologies and talent from around the world • The Innovation Center collaborates with other PACCAR engineering teams to develop next generation technologies such as autonomous trucks • PACCAR Innovation Center establishes strategic partnerships, such as the autonomous vehicle collaboration with Aurora • The Innovation Center truck lab is equipped with the tools needed to integrate emerging technologies PACCAR Innovation Center, Sunnyvale, CA
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July 2025 Page 44 PACCAR Global Embedded Services Kenworth Embedded Engineering Center, Kirkland, WA Embedded Service Center, Pune, India PACCAR has three embedded service technology centers located at Kenworth in Kirkland, WA; at DAF in Eindhoven, the Netherlands; and in Pune, India The centers will accelerate embedded software development and connected vehicle solutions to benefit customers’ operating efficiency Digital Technology Center, Eindhoven, NL
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July 2025 Page 45 PACCAR Manufacturing Capacity Investments Kenworth Test Building, Chillicothe, Ohio PACCAR Mexico Expansion PACCAR Engine Factories New Test Building, St. Therese, Quebec
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July 2025 Page 46 PACCAR Parts Strategy 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 $ Millions$ Millions PACCAR Parts Sales Parts Sales Engine Parts Sales CAGR = 8% PACCAR Parts achieved record $6.67 billion in sales and record $1.71 billion in pretax profits in 2024. Over the last 20 years, PACCAR Parts has achieved a sales CAGR of 8% and profit CAGR of 12%. Long-Term Growth Drivers: • Growing population of Kenworth, Peterbilt and DAF trucks due to geographic expansion and market share growth • Increasing number of TRP locations − 2024: 353 locations − 2016: 76 locations • Best-in-class Distribution Network − 20 parts distribution centers and nearly 2,400 dealer locations. − Proprietary, PACCAR Genuine and TRP branded parts enhance margins 0 250 500 750 1,000 1,250 1,500 1,750 0 250 500 750 1,000 1,250 1,500 1,750 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 $Millions$ Millions PACCAR Parts Pretax Profits Parts Pretax Profits CAGR = 12% 32% 31% 29% 32% 31%
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July 2025 Page 47 PACCAR Distribution Centers Kenworth and Peterbilt Dealers DAF Dealers Kenworth/DAF Dealers PACCAR Parts Distribution Centers and Dealers 20 PDCs in 10 Countries; 2,400 Dealer Locations
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July 2025 Page 48 PACCAR Global Dealer Network • Independent dealer network of 2,400 dealer locations • Premium customer experience • Strong dealer profitability and expanded opportunities from PACCAR engines and TRP stores • Competitive flooring and retail financing provided by PACCAR Financial and PACCAR Leasing
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July 2025 Page 49 400 500 600 700 800 900 1000 400 500 600 700 800 900 1,000 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Growth in Kenworth and Peterbilt Dealer Locations U.S. and Canada Locations Locations PACCAR MX-13 Introduced in 2010 Dealer Investments of $4.1 Billion since 2010 66% Growth in Dealer Locations since 2010 Drives Long-Term PACCAR Parts Growth
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July 2025 Page 50 PACCAR Financial Services Strategy • PACCAR Financial Services supports truck sales by providing financing and leasing services to PACCAR customers • In 2024, PACCAR Financial financed 25% of all Kenworth, Peterbilt and DAF trucks • Geographical diversification, disciplined credit underwriting, and rigorous portfolio management have enabled PACCAR Financial to earn excellent profits throughout the business cycle • Key strategies and investments: − Predictive data analytics for credit quality − Expanded used truck centers − Mobile finance and credit system − E-contract and e-signature − Customer on-line portal Total Assets 12/31/24 = $22.4 Billion 0 1 2 3 4 0 1 2 3 4 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 %% Low 30+ Days Past Due U.S. & Canada $10.7 Billion 48% Europe $4.1 Billion 18% Australia, Mexico & Brasil $4.3 Billion 19% PacLease $3.3 Billion 15%
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July 2025 Page 51 0% 4% 8% 12% 16% 20% 24% 28% 32% 0% 4% 8% 12% 16% 20% 24% 28% 32% S. America Europe Australia U. S. & Canada Market Share 2004 2014 2024 • Since 2004, PACCAR’s above 16 tonne market share has increased in South America, Europe, Australia and U.S. & Canada • Kenworth is the market leader in Australia • PACCAR’s investment in truck manufacturing in Brasil supports PACCAR’s medium-term goal of 12% market share for Kenworth and DAF products in South America. Long-Term Growth in PACCAR Heavy Duty Market Share
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July 2025 Page 52 DAF Brasil Parts Distribution Center Ponta Grossa, Brasil DAF Brasil Manufacturing Plant DAF CF Opened Manufacturing Plant 2013 PFS Brasil Begins Operations 2019 Opened New Parts Distribution Center 2020 4th Brand of the Year Award from FENABRAVE 2021 DAF CF Rigid Introduced 2021 DAF Brasil Builds 20,000th Truck 2022 DAF Brasil 10th Anniversary 2023
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July 2025 Page 53 PACCAR Rest-of-World Growth 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 Deliveries 2019 2024 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 Deliveries Rev. $M Rev. $M 110% 2019 2024 54%
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July 2025 Page 54 • In 2021, congress approved $1.2 trillion in new infrastructure spending in the Infrastructure Investment and Jobs Act • This $1.2 trillion in spending will benefit PACCAR, as it is the industry leader in vocational trucks • Kenworth and Peterbilt combined have achieved approximately 40% share in the vocational segment in the US and Canada Infrastructure Investment and Jobs Act
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July 2025 Page 55 Emissions Regulations Summary 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Euro 7 - 50% NOxGreenhouse Gas – 43% vs. 2019 - 15% GHG - 28% GHG Greenhouse Gas – 39% vs. 2021 -6% GHG -20% GHG-6% GHG -7% GHG Nationwide - 82% NOx
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July 2025 Page 56 0% 10% 20% 30% 40% 50% 60% 70% 80% 0% 10% 20% 30% 40% 50% 60% 70% 80% US and Canada Fuel Economy 0% 10% 20% 30% 40% 50% 60% 70% 80% 0% 10% 20% 30% 40% 50% 60% 70% 80% Europe Fuel Economy % Increase MPG % Increase MPG % Increase MPG % Increase MPG Fuel Economy Improvement
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July 2025 Page 57 Newsweek America’s Greatest Workplaces 2023 ESG Leadership PACCAR achieved an “A-” rating for its environmental practices; Leadership Tier of over 24,000 reporting companies CDP “A - ” Rating Science Based Targets PACCAR has established ambitious 2030 carbon emission reduction targets: 35% in scopes 1&2 and 25% in scope 3 compared to base year Recognized as one of the top 0.26% workplaces in America by Newsweek and Plant-A Insights Group S&P Global ESG Rating PACCAR’s S&P ESG score ranked in the top 12% of peer companies
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July 2025 Page 58 Second Quarter 2025 Earnings
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July 2025 Page 59 PACCAR Revenues and Profit 86 consecutive years of net profit Dividends every year since 1941 2nd Quarter First Half ($ in Millions) 2025 2024 2025 2024 Revenues $7,511 $8,772 $14,952 $17,516 Net Income $724 $1,123 $1,229 $2,318 Adjusted Net Income $724 $1,123 $1,493 $2,318 Adjusted Return on Revenues 9.6% 12.8% 10.0% 13.2% Adjusted Diluted EPS $1.37 $2.13 $2.83 $4.40 New Truck Deliveries (units) 39,300 48,400 79,400 96,500 Note: See appendix for supplementary information on non-GAPP financial metrics
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July 2025 Page 60 • Sales and revenues of $7.5 billion • Net income of $724 million • After-tax adjusted return on revenues of 9.6% • Record PACCAR Parts revenues of $1.72 billion • PACCAR Parts pretax income of $417 million • Financial Services pretax income of $123 million • R&D expenses of $113 million • Deliveries of 39,300 trucks 2025 Financial Results Second Quarter 2025 vs. Second Quarter 2024 $8.8 $7.5 2024 2025 Sales and Revenues (Billions of Dollars) $1,123 $724 2024 2025 Adjusted Net Income (Millions of Dollars)
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July 2025 Page 61 24% 26% 28% 30% 32% 34% 24% 26% 28% 30% 32% 34% 14 15 16 17 18 19 20 21 22 23 24 1H 25 Parts • Truck margins benefited from new products launched in 2021/2022 • 2Q25 truck margins were affected by economic uncertainty and tariffs • Parts margins have benefited from distribution and technology investments and growing populations of PACCAR trucks and engines in operation Historical Annual Gross Margins 7% 9% 11% 13% 15% 17% 7% 9% 11% 13% 15% 17% 14 15 16 17 18 19 20 21 22 23 24 1H 25 Truck 10% 12% 14% 16% 18% 20% 10% 12% 14% 16% 18% 20% 14 15 16 17 18 19 20 21 22 23 24 1H 25 Total Manufacturing 14.3% 9.2% 30.3%
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July 2025 Page 62 $6,578 $5,243 2024 2025 Sales (Millions of Dollars) • Sales totaled $5.2 billion • Pretax operating profit of $309 million • Deliveries for 2Q25 totaled 39,300 compared to 48,400 units in the same period a year ago • Truck gross margin of 8.7% • 2Q25 truck margins were affected by economic uncertainty and tariffs Truck Second Quarter 2025 vs. Second Quarter 2024 $837 $309 2024 2025 Segment Pretax Profit (Millions of Dollars)
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July 2025 Page 63 • Record revenues of $1.7 billion, an increase of 3% • Pretax profit of $417 million • Strong 30.0% Parts gross margin Aftermarket Parts Second Quarter 2025 vs. Second Quarter 2024 $1,664 $1,721 2024 2025 Revenues (Millions of Dollars) $414 $417 2024 2025 Segment Pretax Profit (Millions of Dollars)
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July 2025 Page 64 Financial Services Balance Sheet & Second Quarter 2025 Profit 6/30/2025 Finance & Other Receivables $20,193 Equipment on Operating Leases 1,928 Other Assets 1,192 Total Financial Services Assets $23,313 Commercial Paper & Bank Loans $5,101 Term Notes 10,838 Deferred Taxes & Other Liabilities 1,728 Total Financial Services Liabilities $17,667 Equity $5,646 Total Liabilities & Equity $23,313 $ Millions • Pretax profit of $123M • Portfolio of 233,000 trucks and trailers • Excellent portfolio quality • 13 worldwide used truck centers • Used truck prices showing signs of improvement $111 $123 2024 2025 Segment Pretax Profit (Millions of Dollars)
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July 2025 Page 65 ($ Millions) 6/30/25 Mfg Cash & Securities $8,280 Other Manufacturing Assets 12,502 Financial Services Assets 23,313 Total Assets $44,095 Manufacturing Debt $ - Manufacturing Liabilities 7,485 Financial Services Liabilities 17,667 Shareholders' Equity 18,943 Total Liabilities & Equity $44,095 • Superb balance sheet • $8.3 billion in manufacturing cash and securities to support growth opportunities and investments in all phases of the cycle • No manufacturing debt – a capital structure that has proven beneficial throughout the business cycle • A+/A1 credit rating provides PACCAR Financial Services excellent access to the credit markets PACCAR Inc A+/A1 Credit Ratings
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July 2025 Page 66 PACCAR is Structurally Stronger & Positioned for Future Growth Game Changing New Truck Models Strong Parts Growth and Profit Rest of World Growth Technology Enabling Opportunities
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July 2024 Page 67 This earnings release includes “adjusted net income (non-GAAP)” and “adjusted net income per diluted share (non-GAAP)”, which are financial measures that are not in accordance with U.S. generally accepted accounting principles (“GAAP”), since they exclude a charge for EC-related claims. These measures differ from the most directly comparable measures calculated in accordance with GAAP and may not be comparable to similarly titled non-GAAP financial measures used by other companies. Adjustment for the EC-related claims relates to a pre-tax charge of $350.0 million ($264.5 million after-tax) for estimable total costs recorded in Interest and other expenses (income), net in the first quarter 2025. The Company utilizes these non-GAAP measures to allow investors and management to evaluate operating trends by excluding a significant charge that is not representative of company performance. Reconciliations from the most directly comparable GAAP measures to adjusted net income (non-GAAP) and adjusted net income per diluted share (non-GAAP) are as follows: Appendix ($ in million, except per share amounts) Six Months Ended June 30, 2025 Net income $1,228.9 EC-related claims, net of tax 264.5 Adjusted net income (non-GAAP) $1,493.4 Per diluted share: Net income $2.33 EC-related claims, net of tax 0.50 Adjusted net income (non-GAAP) $2.83
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