Earnings release
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Kenworth T680 Truck Kenworth T680 Truck PACCAR Achieves Good Quarterly Revenues and Profits July 22, 2025 BELLEVUE, Wash.--(BUSINESS WIRE)-- “PACCAR achieved good revenues and net income in the second quarter of 2025,” said Preston Feight,chief executive officer. “Peterbilt, Kenworth and DAF delivered good results, PACCAR Parts delivered record quarterly revenue and strong profits,and PACCAR Financial Services achieved very good results. I am very proud of our employees and dealers who delivered outstanding trucks andtransportation solutions to our customers.” PACCAR earned net income of $723.8 million ($1.37 per diluted share) in thesecond quarter compared to $1.12 billion ($2.13 per diluted share) earned inthe same period last year. Second quarter net sales and financial services revenues were $7.51 billion, compared to $8.77 billion achieved in thesecond quarter of 2024.Net income in the first half of 2025, including the $264.5 million after tax non-recurring charge related to civil litigation in Europe, was $1.23 billion($2.33 per diluted share). PACCAR achieved adjusted net income (non-GAAP) of $1.49 billion ($2.83 per diluted share) in the first half. Net sales andfinancial services revenues for the first six months of 2025 were $14.95 billion.Feight added, “The truck industry continues to be in an exciting and dynamic time. PACCAR’s investments in new trucks such as DAF’s 2025 truckrange, advanced manufacturing, and technology-enabled aftermarket solutions, will support customers’ and the company’s growth. The NorthAmerican truck market is being affected by economic conditions, the uncertain impact of tariffs, and a soft truckload market. Customer demand inthe less-than-truckload and vocational segments, including construction, is good.”Financial Highlights – Second Quarter 2025Highlights of PACCAR’s financial results for the second quarter of 2025 include: Consolidated net sales and revenues of $7.51 billion.Consolidated net income of $723.8 million.Global truck deliveries of 39,300 units.Record PACCAR Parts revenues of $1.72 billion.PACCAR Parts pre-tax income of $416.5 million.PACCAR Financial Services pre-tax income of $123.2 million.Capital investments of $226.8 million and R&D expenses of $112.9 million.Cash generated from operations of $833.4 million.Stockholders’ equity of $18.94 billion. ____________________See attached supplementary information on non-GAAP financial measures. Financial Highlights – First Half 2025Highlights of PACCAR’s financial results for the first six months of 2025 include: Consolidated net sales and revenues of $14.95 billion.Consolidated net income of $1.23 billion and adjusted net income of $1.49 billion.Capital investments of $398.7 million and R&D expenses of $228.3 million.PACCAR Parts pre-tax income of $843.0 million.PACCAR Financial Services pre-tax income of $244.3 million.Cash generated from operations of $1.74 billion. Global Truck MarketsU.S. and Canada Class 8 truck industry retail sales are estimated to be in a range of 230,000-260,000 trucks in 2025. Kenworth and Peterbiltachieved 30.4% market share in the first six months of this year. “Kenworth and Peterbilt’s industry-leading trucks provide customers with premiumquality and low total cost of ownership,” said Kevin Baney, PACCAR executive vice president. “PACCAR produces over 90% of its trucks for U.S.customers in its Ohio, Texas, and Washington State factories. PACCAR is expanding its Mississippi engine factory by constructing a $35 million,50,000 square foot engine remanufacturing facility.”European truck industry registrations in the above 16-tonne segment are estimated to be in a range of 270,000-300,000 vehicles this year. “DAFtrucks are delivering the highest fuel efficiency and best-in-class driver comfort in the industry due to their innovative, aerodynamic design,” sharedHarald Seidel, DAF president. “DAF introduced its 2025 model year trucks, which include a new turbo system and engine valve timing, predictivecruise control and enhanced aerodynamics. DAF has increased the industry-leading fuel efficiency of its trucks by three percent.”The South American above 16-tonne truck market is estimated to be in the range of 90,000-100,000 units this year. “Brasilian customers appreciateDAF’s industry-leading product quality, complemented by its outstanding aftermarket support including PACCAR Parts, PACCAR Financial Servicesand DAF’s premium dealerships,” said Mike Dozier, PACCAR executive vice president.PACCAR Parts Achieves Record Quarterly Revenues and Excellent ProfitsPACCAR Parts earned excellent quarterly pre-tax income of $416.5 million in the second quarter of 2025, compared to $413.8 million earned in thesame period last year. PACCAR Parts achieved record quarterly revenues of $1.72 billion in the second quarter, compared to $1.66 billion reported inthe same period last year. PACCAR Parts first half 2025 revenues were $3.41 billion, compared to $3.34 billion in the same period last year. PACCARParts achieved pre-tax profit of $843.0 million in the first six months of 2025, compared to $869.6 million earned in the first six months of 2024.“PACCAR Parts provides aftermarket parts and transportation solutions that deliver greater uptime and profitability for our customers,” said BryanSitko, PACCAR vice president and PACCAR Parts general manager. “PACCAR Parts’ excellent performance reflects investments in new partsdistribution centers, transportation solutions such as Managed Dealer Inventory and Fleet Services, and a growing number of PACCAR trucks withPACCAR powertrains in operation.”PACCAR Parts’ 20 global parts distribution centers, with over 3.9 million square feet, support more than 2,000 DAF, Kenworth and Peterbilt sales,parts and service locations, and more than 350 TRP stores. These independent, well-capitalized dealers provide outstanding service to customers,complementing the premium quality of DAF, Kenworth and Peterbilt vehicles.Financial Services Companies Achieve Very Good Quarterly ResultsPACCAR Financial Services (PFS) earned pre-tax income of $123.2 million in the second quarter this year compared to $111.2 million in the secondquarter of 2024. PFS achieved second quarter 2025 revenues of $547.7 million compared to $509.8 million in the same period last year. For the firstsix months of 2025, PFS earned pre-tax income of $244.3 million compared to $225.1 million in the same period last year. “PFS achieved very goodfirst half results due to its excellent portfolio and an improving used truck market,” said Craig Gryniewicz, PACCAR vice president. “PFS is a leaderin the market with its superior Kenworth, Peterbilt and DAF trucks, innovative technologies that provide seamless credit application and loanservicing processes, and its support of customers in all phases of the business cycle.” PFS will open a used truck center in Warsaw, Poland, thisyear, to increase the sale of used trucks in Central Europe.PFS has a portfolio of 233,000 trucks and trailers, with total assets of $23.31 billion. PacLease, a major full-service truck leasing company in NorthAmerica, Europe and Australia with a fleet of 40,000 vehicles, is included in this segment.“PACCAR’s excellent balance sheet, complemented by its A+/A1 credit ratings, enables PFS to offer competitive retail financing to Kenworth,Peterbilt and DAF dealers and customers in 26 countries on four continents,” said Terren Drake, PACCAR Financial Corp. president. PACCARFinancial Services has excellent access to the debt markets and issued $1.84 billion of medium-term notes during the first half of 2025, in support ofgrowing market share.Kenworth and Peterbilt Showcase Next Generation Electric Trucks at ACT Expo 1 1 2025-07-22 14:03 PACCAR Inc - PACCAR Achieves Good Quarterly Revenues and Profits https://investors.paccar.com/financial-news/news-details/2025/PACCAR-Achieves-Good-Quarterly-Revenues-and-Profits/default.aspx 1/4
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The next generation of Kenworth and Peterbilt on-highway and vocational battery electric trucks were launched at ACT Expo in Anaheim, California,in the second quarter. The trucks can travel up to 250 miles on a single charge.Kenworth T680E and Peterbilt 579EV trucks are designed for regional haul and seaport operations, and have a new exterior design that incorporatesaerodynamic refinements. Kenworth T880E and Peterbilt 567EV vocational trucks offer wheelbase and vehicle configurations to fit a wide variety ofcustomer applications.Capital and R&D Investments in Products, Technologies and FacilitiesPACCAR’s excellent long-term profits, strong balance sheet, and consistent focus on quality, technology and productivity have enabled thecompany to invest $9.0 billion in new and expanded facilities, innovative products and new technologies during the past decade. PACCAR invested$226.8 million in capital projects and $112.9 million in research and development expenses in the second quarter of 2025. Brice Poplawski, seniorvice president and chief financial officer, said, “Capital expenditures are projected to be in the range of $750-$800 million and research anddevelopment expenses are estimated to be in the range of $450-$480 million in 2025. PACCAR is investing in exciting next generation clean dieseland alternative powertrains, integrated connected vehicle services, expanded manufacturing capabilities, and advanced driver assistance systemsthat create value for customers.”PACCAR will hold a conference call with securities analysts to discuss second quarter earnings on July 22, 2025, at 9:00 a.m. Pacific time.Interested parties may listen to the call by selecting “Q2 Earnings Webcast” at PACCAR’s homepage. The Webcast will be available on a recordedbasis through July 29, 2025. PACCAR shares are listed on the NASDAQ Stock Market, symbol PCAR. Its homepage is www.paccar.com.This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act. These statements are basedon management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from thoseincluded in these statements due to a variety of factors. More information about these factors is contained in PACCAR’s filings with the Securitiesand Exchange Commission. PACCAR IncSUMMARY STATEMENTS OF OPERATIONS (Unaudited)(in millions except per share amounts)Three Months Ended Six Months EndeJune 30 June 302025 2024 2025Truck, Parts and Other:Net sales and revenues $ 6,962.8 $ 8,262.3 $ 13,876.5 $Cost of sales and revenues 5,995.4 6,772.3 11,886.4Research and development 112.9 117.1 228.3Selling, general and administrative 139.2 142.7 282.5Interest and other (income) expense, net (9.5) (23.6) 316.3(1)Truck, Parts and Other Income Before Income Taxes 724.8 1,253.8 1,163.0Financial Services:Revenues 547.7 509.8 1,075.7Interest and other 355.2 346.1 705.5Selling, general and administrative 40.1 40.8 78.4Provision for losses on receivables 29.2 11.7 47.5Financial Services Income Before Income Taxes 123.2 111.2 244.3Investment income 83.9 95.8 167.7Total Income Before Income Taxes 931.9 1,460.8 1,575.0Income taxes 208.1 338.2 346.1 Net Income $ 723.8 $ 1,122.6 $ 1,228.9 $Net Income Per Share:Basic $ 1.38 $ 2.14 $ 2.34 $ Diluted $ 1.37 $ 2.13 $ 2.33 $Weighted Average Shares Outstanding:Basic 525.9 525.3 525.9 Diluted 526.7 526.6 526.8 Dividends declared per share $ .33 $ .30 $ .66 $ (1)Includes a $350.0 million charge related to civil litigation in Europe (EC-related claims) in the first quarter 2025. PACCAR IncCONDENSED BALANCE SHEETS(in millions) June 302025(unaudited)ASSETSTruck, Parts and Other:Cash and marketable securities $ 8,279.7 $Trade and other receivables, net 2,210.3Inventories, net 2,456.7Property, plant and equipment, net 4,397.2Other assets 3,438.0Financial Services Assets 23,312.9 $ 44,094.8 $LIABILITIES AND STOCKHOLDERS' EQUITYTruck, Parts and Other:Accounts payable, deferred revenues and other $ 7,485.0 $Financial Services Liabilities 17,667.2STOCKHOLDERS' EQUITY 18,942.6 $ 44,094.8 $ Common Shares Outstanding 525.1 PACCAR IncCONDENSED CASH FLOW STATEMENTS (Unaudited)(in millions)Six Months Ended June 30 2025 2025-07-22 14:03 PACCAR Inc - PACCAR Achieves Good Quarterly Revenues and Profits https://investors.paccar.com/financial-news/news-details/2025/PACCAR-Achieves-Good-Quarterly-Revenues-and-Profits/default.aspx 2/4
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OPERATING ACTIVITIES:Net income $ 1,228.9 $Depreciation and amortization:Property, plant and equipment 199.5Other assets 212.9Net change in trade receivables, inventory and payables (178.2)Net decrease (increase) in wholesale receivables on new trucks 304.6All other operating activities, net (24.0)Net Cash Provided by Operating Activities 1,743.7INVESTING ACTIVITIES:Payments for property, plant and equipment (387.2)Acquisitions of equipment for operating leases (327.5)Net increase in financial services receivables (547.5)Net increase in marketable debt securities (52.6)Proceeds from asset disposals and other 304.7Net Cash Used in Investing Activities (1,010.1)FINANCING ACTIVITIES:Payments of cash dividends (1,920.3)Purchases of treasury stock (35.0)Proceeds from stock compensation transactions 24.8Net (decrease) increase in debt and other (495.3)Net Cash Used in Financing Activities (2,425.8)Effect of exchange rate changes on cash 181.3Net Decrease in Cash and Cash Equivalents (1,510.9)Cash and cash equivalents at beginning of period 7,060.8 Cash and cash equivalents at end of period $ 5,549.9 $ PACCAR IncSEGMENT AND OTHER INFORMATION (Unaudited)(in millions)Three Months Ended Six Months EndedJune 30 June 302025 2024 2025Sales and Revenues:Truck $ 5,243.1 $ 6,577.8 $ 10,468.9 $Parts 1,720.9 1,664.3 3,410.8Financial Services 547.7 509.8 1,075.7Intersegment Eliminations and Other (1.2) 20.2 (3.2) $ 7,510.5 $ 8,772.1 $ 14,952.2 $Pretax Profit:Truck $ 308.8 $ 837.3 $ 673.7 $Parts 416.5 413.8 843.0Financial Services 123.2 111.2 244.3Investment Income and Other 83.4 98.5 (186.0)(1) $ 931.9 $ 1,460.8 $ 1,575.0 $GEOGRAPHIC REVENUE(in millions)Three Months Ended Six Months EndedJune 30 June 302025 2024 2025United States and Canada $ 4,748.5 $ 5,578.9 $ 9,375.8 $Europe 1,671.2 1,745.2 3,239.8Other 1,090.8 1,448.0 2,336.6 $ 7,510.5 $ 8,772.1 $ 14,952.2 $NEW TRUCK DELIVERIESThree Months Ended Six Months EndedJune 30 June 302025 2024 2025United States and Canada 23,000 28,700 45,200Europe 10,600 11,500 21,000Other 5,700 8,200 13,20039,300 48,400 79,400 (1)Includes a $350.0 million charge related to civil litigation in Europe (EC-related claims) in the first quarter 2025. PACCAR IncSUPPLEMENTARY INFORMATIONRECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES(Unaudited)This earnings release includes “adjusted net income (non-GAAP)” and “adjusted net income per diluted share (non-GAAP)”, which are financialmeasures that are not in accordance with U.S. generally accepted accounting principles (“GAAP”), since they exclude a charge for EC-relatedclaims. These measures differ from the most directly comparable measures calculated in accordance with GAAP and may not be comparable tosimilarly titled non-GAAP financial measures used by other companies.On July 19, 2016, the European Commission (EC) concluded its investigation of all major European truck manufacturers and reached a settlementwith the Company. Following the settlement, legal proceedings seeking damages were filed against all major European truck manufacturers. In thefirst quarter of 2023, the Company recorded a pre-tax charge of $600.0 ($446.4 after-tax) for the estimable total cost. Several courts have issuedjudgments; some have been favorable while others have been unfavorable and have been appealed. The Company has settled with the majority ofclaimants and continues to pursue appropriate resolutions. Due to higher settlement costs, the Company updated its estimate and recorded an 2025-07-22 14:03 PACCAR Inc - PACCAR Achieves Good Quarterly Revenues and Profits https://investors.paccar.com/financial-news/news-details/2025/PACCAR-Achieves-Good-Quarterly-Revenues-and-Profits/default.aspx 3/4
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additional pre-tax charge of $350.0 ($264.5 after-tax) for the total estimable remaining costs in Interest and other (income) expenses, net in the firstquarter of 2025.The Company utilizes these non-GAAP measures to allow investors and management to evaluate operating trends by excluding a significant chargethat is not representative of company performance.Reconciliations from the most directly comparable GAAP measures to adjusted net income (non-GAAP) and adjusted net income per diluted share(non-GAAP) are as follows: Six($ in millions, except per share amounts)Net income $EC-related claims, net of taxesAdjusted net income (non-GAAP) $Per diluted share:Net income $EC-related claims, net of taxesAdjusted net income (non-GAAP) $ Ken Hastings(425) 468-7530ken.hastings@paccar.comSource: PACCAR Inc 2025-07-22 14:03 PACCAR Inc - PACCAR Achieves Good Quarterly Revenues and Profits https://investors.paccar.com/financial-news/news-details/2025/PACCAR-Achieves-Good-Quarterly-Revenues-and-Profits/default.aspx 4/4