PACCAR Financial, Parts rise despite softer truck demand

PACCAR reported solid financial results in 2025, with record performance from its parts and financial services divisions helping offset a year-over-year decline in truck deliveries and earnings amid softer global demand.

The Bellevue, Wash.-based truck maker reported full-year revenue of $28.4 billion, down 15.5% year over year, according to today’s earnings release. Net income fell to $2.38 billion, down 42.9% YoY, due in part to a $264.5 million after-tax charge tied to European civil litigation.

PACCAR Financial Services generated record revenue of $2.2 billion, up 5% YoY, and pretax income of $485.4 million, up 11% YoY, according to the release. The finance unit’s asset base grew to $22.8 billion, up 1.8% YoY, and retail market share improved to 27%, up 2 percentage points YoY.

Meanwhile, global truck deliveries totaled 144,200 units in 2025, down 22.2% YoY, according to the release. Despite lower volumes, Kenworth and Peterbilt maintained strong positioning, capturing a combined 30% share of the U.S. and Canada Class 8 retail market, unchanged YoY.

PACCAR invested $1.2 billion in capital projects and R&D in 2025, down 9.3% YoY, as it expanded manufacturing capacity, remanufacturing operations and connected vehicle technologies, according to the release. PACCAR Parts also posted record annual revenue of $6.87 billion, up 3% YoY.

Looking ahead, improving freight fundamentals, greater regulatory clarity and continued investment in clean powertrains, autonomous systems and digital finance capabilities are expected to support a stronger truck market in 2026, according to the release.

MARKET OUTLOOK: Shares of Paccar Inc. [Nasdaq: PCAR] were trading at $120.82 at market close today, down 1.06% or $1.29 from market open. Paccar has a market capitalization of $64.13 billion. 

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