PACCAR Inc reported a significant decline in its financial performance for the first quarter of 2025, with net sales and revenues totaling $7.44 billion, down from $8.74 billion in the same period last year. The decrease was primarily attributed to lower truck sales, which fell to $5.23 billion from $6.54 billion, reflecting reduced deliveries in the U.S. and Canada as well as Europe. However, the company noted a slight increase in parts sales, reaching a record $1.69 billion, and a rise in financial services revenues to $528 million, up from $509 million in 2024.
The company's net income for the quarter was $505.1 million, or $0.96 per diluted share, compared to $1.20 billion, or $2.27 per diluted share, in the previous year. Adjusted net income, excluding a $264.5 million after-tax charge related to civil litigation in Europe, was $769.6 million, or $1.46 per diluted share. The decline in profitability was influenced by lower truck deliveries and a $350 million charge related to European Commission claims, which significantly impacted the company's financial results.
In terms of operational metrics, PACCAR's Truck segment accounted for 70% of total revenues, down from 75% in the first quarter of 2024. The company reported a decrease in heavy-duty truck retail market share in the U.S. and Canada to 29.1%, down from 30.3% a year earlier. In Europe, the DAF brand's market share for over 16-tonne vehicles improved slightly to 14.0%. The Financial Services segment's portfolio grew, with total assets reaching $22.75 billion, supported by a rigorous credit application process.
Looking ahead, PACCAR anticipates that heavy-duty retail sales in the U.S. and Canada will range between 235,000 to 265,000 units in 2025, a decrease from 268,100 units in 2024. The company also expects parts sales to increase by 2-4% depending on economic conditions. Capital investments for the year are projected to be between $700 million and $800 million, with a focus on next-generation powertrains and advanced manufacturing capabilities. The company remains cautious about the impact of import tariffs and economic uncertainties on its operations and market demand.
About PACCAR INC
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