Paccar Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.37%.
Did PCAR Beat Earnings? Q4 2025 Results
PACCAR closed out 2025 on a difficult note, posting Q4 revenue of $6.82 billion, down 13.7% year-over-year, though the figure cleared analyst estimates by a wide margin; earnings per diluted share of $1.06 met the consensus exactly. The core story was a sharp contraction in truck demand, with worldwide deliveries falling to 32,900 units from 43,900 in the year-ago quarter, dragging Truck segment pretax profit down to $94.60 million from $502.90 million. Bright spots emerged in the company's more resilient businesses, as PACCAR Parts delivered quarterly revenue of $1.74 billion, up 4% year-over-year, and PACCAR Financial Services posted quarterly revenue of $568.70 million, up 10%. Analysts tracking the stock have set a long-term price target of $170, reflecting optimism around a volume recovery ahead. Management pointed to rising December order activity, driven by clearer tariff and emissions policy, as early evidence that the 2026 U.S. and Canada Class 8 market, projected at 230,000 to 270,000 units, could bring a meaningful rebound.
- PACCAR Parts achieved record quarterly and annual revenues, providing countercyclical stability
- PACCAR Financial Services delivered record revenues and 10% higher Q4 pretax income year-over-year
- Truck segment revenue and profitability declined due to lower industry volumes
- North American truck deliveries fell significantly from 22,300 to 15,000 units in Q4
- European truck deliveries grew slightly from 12,300 to 12,700 units in Q4
“PACCAR reported very good annual revenues and net income in 2025. PACCAR Parts and PACCAR Financial Services delivered record revenue and strong profits. Kenworth, Peterbilt and DAF's premium quality trucks contributed to the very good results. 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
PACCAR expects the 2026 U.S. and Canada Class 8 truck market to be in a range of 230,000-270,000 trucks, compared to 233,000 in 2025. European above 16-tonne truck registrations are estimated at 280,000-320,000 trucks in 2026, versus 298,000 in 2025. The South American above 16-tonne market is estimated at 100,000-110,000 trucks in 2026, down from 115,000 in 2025. Management noted increased industry truck orders in December, driven by clarified tariff policy, emissions regulations, and early improvements in freight fundamentals, which should lead to a stronger truck market in 2026. PACCAR plans to invest $725-$775 million in capital projects and $450-$500 million in research and development in 2026.
PCAR YoY Financials
PCAR Revenue by Segment
PCAR Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.