Paccar Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −2.79%.
Did PCAR Beat Earnings? Q3 2025 Results
PACCAR delivered a mixed third quarter for fiscal 2025, posting earnings per share of $1.12 that fell just short of the $1.15 consensus estimate by 2.46%, even as revenue of $6.67 billion topped expectations by 11.05%, though that top-line figure still represented a steep 19.0% decline from the year-ago period. The primary culprit was a sharp contraction in truck volumes, with global deliveries falling to 31,900 units from 44,900 in Q3 2024, squeezing Truck segment pretax profit to $102.50 million from $630.80 million a year ago as the North American Class 8 market continued to soften. Offsetting some of that cyclical pain, PACCAR Parts proved resilient with pretax income of $410.00 million on revenues of $1.72 billion, underscoring the durability of the aftermarket business. Some institutional investors have trimmed their positions following the results, reflecting caution around near-term margin pressure. Looking ahead, management projects U.S. and Canada Class 8 industry retail sales of 230,000 to 245,000 units in 2025, with a potential expansion to 230,000 to 270,000 in 2026, while capital investments are guided at $750 to $775 million for the full year.
- PACCAR Parts delivered record quarterly revenues of $1.72 billion with pretax income of $410.0 million
- PACCAR Financial Services benefited from high-quality portfolio and improving used truck market
- Truck segment pretax profit declined significantly to $102.5 million from $630.8 million year-over-year due to lower volumes
- Global truck deliveries declined to 31,900 units from 44,900 in Q3 2024
- Kenworth and Peterbilt achieved 30.3% U.S. and Canada Class 8 market share
“PACCAR delivered good revenues and net income in the third quarter of 2025. Peterbilt, Kenworth and DAF's excellent trucks contributed to the good results. PACCAR Parts and PACCAR Financial Services continued to deliver excellent performance and strong profits. I am very proud of our employees and dealers who delivered outstanding trucks and transportation solutions to our customers.”
Paccar CEO, on the earnings call
Forward Guidance & Outlook
U.S. and Canada Class 8 truck industry retail sales in 2025 are estimated at 230,000-245,000 vehicles, with 2026 expected to increase to 230,000-270,000 vehicles. European above 16-tonne truck registrations are estimated at 275,000-295,000 in 2025 and 270,000-300,000 in 2026. South American above 16-tonne market is projected at 95,000-105,000 units in 2025 and a similar range in 2026. Capital expenditures are projected at $750-$775 million and R&D expenses at $450-$465 million for 2025. For 2026, PACCAR estimates capital investments of $725-$775 million and R&D expenses of $450-$500 million. Section 232 truck tariffs scheduled to begin in November are expected to bring clarity to the market. The Amplify Cell Technologies battery factory in Mississippi is targeting start of battery cell production in 2028.
PCAR YoY Financials
PCAR Revenue by Segment
PCAR Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.