PACCAR Inc reported a significant decline in its financial performance for the fiscal year ending December 31, 2025, with total net sales and revenues of $28.44 billion, down from $33.66 billion in 2024. The decrease was primarily attributed to a drop in truck sales, which fell to $19.37 billion from $24.84 billion the previous year, reflecting lower truck deliveries across all major markets. Despite the downturn, the company achieved a net income of $2.38 billion, or $4.51 per diluted share, compared to $4.16 billion, or $7.90 per diluted share, in 2024. Adjusted net income, excluding a $264.5 million after-tax charge related to civil litigation in Europe, was $2.64 billion, or $5.01 per diluted share.
In terms of operational metrics, PACCAR's truck deliveries decreased by 22% to 144,200 units in 2025, with notable declines in the U.S. and Canada, Europe, and other regions. The company's market share in the U.S. and Canadian Class 8 market was reported at 29.9%, down from 30.7% in 2024, while DAF's market share in Europe also saw a slight decline. The Parts segment, however, showed resilience, with revenues increasing to $6.87 billion from $6.67 billion, driven by higher sales in the U.S. and Canada as well as Europe.
Strategically, PACCAR continued to invest in its operations, with capital expenditures totaling $728.5 million in 2025, down from $795.8 million in 2024. The company completed the construction of a new engine remanufacturing facility in Columbus, Mississippi, and opened a new Parts Distribution Center in Calgary, Canada. The Financial Services segment also reported growth, with revenues rising to $2.21 billion from $2.10 billion, primarily due to increased interest income from a growing retail portfolio.
Looking ahead, PACCAR anticipates a challenging environment, with truck industry heavy-duty retail sales in the U.S. and Canada projected to range between 230,000 to 270,000 units in 2026, slightly lower than the 232,800 units sold in 2025. The company expects parts sales to increase by 4-8% in 2026, contingent on economic conditions. Additionally, PACCAR plans to maintain its focus on research and development, with expected expenditures of $450 to $500 million in 2026, as it continues to innovate in clean diesel and alternative powertrains, as well as artificial intelligence technologies to enhance operational efficiency.
About PACCAR INC
PACCAR Inc designs, manufactures, and distributes high-quality commercial trucks under the Kenworth, Peterbilt, and DAF brands. Its core segments include truck manufacturing, aftermarket parts distribution, and financial services providing leasing and financing. Serving global markets in North America, Europe, Australia, and South America, PACCAR emphasizes innovation, quality, and sustainability, with a competitive edge in technology-driven, efficient commercial vehicles and comprehensive customer support.
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