PACCAR Inc reported a decline in its financial performance for the fiscal year ending December 31, 2024, with total net sales and revenues of $33.66 billion, down from $35.13 billion in 2023. The decrease was primarily attributed to lower truck sales, which fell to $24.84 billion from $26.85 billion the previous year. However, the Parts segment saw an increase in sales, rising to $6.67 billion from $6.41 billion, driven by higher price realization across all markets. The Financial Services segment also experienced growth, with revenues increasing to $2.10 billion from $1.81 billion, reflecting portfolio growth and higher yields.
In terms of profitability, PACCAR reported a net income of $4.16 billion, or $7.90 per diluted share, compared to $4.60 billion, or $8.76 per diluted share, in 2023. The after-tax return on equity (ROE) was 26.2%, down from 34.9% in the prior year. The company’s equity increased by 10.3% to a record $17.51 billion, while capital investments rose to $795.8 million from $698.3 million in 2023, and research and development expenses increased to $452.9 million from $410.9 million.
Strategically, PACCAR opened a new 240,000 square-foot Parts Distribution Center in Massbach, Germany, in November 2024, aimed at enhancing parts delivery in Europe’s largest truck market. The company also sold its industrial winch business in October 2024, which had accounted for less than 1% of total revenues. The Financial Services segment expanded its operations to 26 countries, supporting a portfolio of loans and leases totaling $22.41 billion.
Operationally, PACCAR's truck production backlog stood at $7.6 billion at the end of 2024, with $3.8 billion of that backlog expected to be delivered within three months. The company’s market share in the U.S. and Canadian Class 8 market was 30.7%, while DAF's market share in the European heavy-duty market was 14.4%. The total employee headcount was approximately 30,100, with 38% based in the U.S. Looking ahead, PACCAR anticipates truck industry retail sales in the U.S. and Canada to range between 250,000 to 280,000 units in 2025, while parts sales are expected to increase by 2-4% depending on economic conditions.
About PACCAR INC
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