PACCAR Inc Reports Decline in Q2 and First Half 2025 Financial Performance

PACCAR Inc reported a significant decline in its financial performance for the second quarter and first half of 2025, as detailed in its latest 10-Q filing. The company recorded net sales and revenues of $7.51 billion for the second quarter, down from $8.77 billion in the same period last year. This decline was primarily attributed to lower truck sales, which fell to $5.24 billion from $6.58 billion, reflecting reduced deliveries across all major markets. In contrast, parts sales increased slightly to $1.72 billion, and financial services revenues rose to $547.7 million, driven by higher interest income from portfolio growth.

For the first six months of 2025, PACCAR's total revenues were $14.95 billion, down from $17.52 billion in 2024. Truck sales for this period decreased to $10.47 billion from $13.12 billion, while parts sales saw a modest increase to $3.41 billion. The company's net income also fell to $1.23 billion, or $2.33 per diluted share, compared to $2.32 billion, or $4.40 per diluted share, in the previous year. The decline in profitability was influenced by a $350 million pre-tax charge related to civil litigation in Europe, which significantly impacted the company's financial results.

In terms of operational metrics, PACCAR's truck deliveries decreased by 19% in the second quarter, with total units delivered dropping to 39,300 from 48,400 in the same quarter of 2024. The company’s market share in the heavy-duty truck segment in the U.S. and Canada also declined to 30.4% from 31.5% year-over-year. Despite these challenges, PACCAR's Financial Services segment reported a finance market share increase to 26.2% in the second quarter, up from 24.2% in the previous year, indicating a strong performance in financing new truck sales.

Looking ahead, PACCAR anticipates a challenging environment for the truck industry, with projected heavy-duty retail sales in the U.S. and Canada expected to range between 230,000 to 260,000 units in 2025, down from 268,100 in 2024. The company is also facing uncertainties due to import tariffs imposed by the U.S. government, which may affect truck order intake and profit margins. However, PACCAR expects parts sales to increase by 2-4% in 2025, depending on economic conditions, and anticipates a 4-6% growth in average earning assets within its Financial Services segment. The company plans to invest significantly in capital expenditures and research and development, focusing on next-generation clean diesel and alternative powertrains, as well as expanding its manufacturing capabilities.