Paccar Financial continues growth amid truck sales slowdown

Paccar Financial Services, the financial arm of truck manufacturer Paccar, saw revenue and assets increase during the third quarter despite a sales slump at the parent company. 

Paccar Financial reported pretax income of $126.2 million, up 18.5% year over year, supported by strong demand and premium pricing for used Kenworth, Peterbilt and DAF trucks, Kevin Baney, executive vice president of Paccar, said during today’s earnings call. 

“This reflects the high-quality portfolio and improving used truck results,” he said. “Similar to Paccar Parts, Paccar Financial provides steady foundational profitability during all phases of the business cycle.” 

Paccar Financial benefited from strong used truck performance, as the brand operates 13 used truck centers around the world, with a facility set to open in Warsaw, Poland, this year, Bailey said. 

Paccar estimates this year’s U.S. and Canadian Class 8 market to be in the range of 230,000 to 245,000 trucks and next year to be in the range of 230,000 to 270,000, Chief Executive Preston Feight said during the call. 

“The truckload market continues to have uncertainty,” he said. “Next year’s U.S. and Canadian truck market could be higher than this year as we realize clarity around tariffs, emissions policy and potential improvements in the freight market.” 

By the numbers

Paccar Financial and its parent company also reported for Q3: 

• Paccar Financial revenue landed at $565.3 million, up 5.4% YoY;  

• Paccar Financial Services’ provision for losses on receivables reached $36.5 million in Q3, up 63% YoY. 

• Paccar’s financial services assets finished at $23 billion, up 2.7% YoY. 

• Paccar’s consolidated net sales and revenue totaled $6.7 billion, down 19.1% YoY; and 

• Paccar’s net income was $590 million, down 39.3% YoY. 

Paccar Financial also manages a portfolio of 229,000 trucks and trailers, including a fleet of 39,000 vehicles from PacLease, the company’s North American and European truck leasing subsidiary, according to the earnings release. The company also issued $2.4 billion in medium-term notes during the first nine months of 2025. 

MARKET OUTLOOK: Shares of Paccar Inc. [Nasdaq: PCAR] were trading at $99.85 at market close today, down 2.43% or $2.37 from market open. Paccar has a market capitalization of $51.19 billion. 

Check out our exclusive industry data here.