Paccar Financial Services profits slip as delinquency concerns rise

Paccar Financial Services, the financial arm of truck manufacturer Paccar, saw profits dip in 2024 as delinquencies and loss provisions ticked up. 

Paccar Financial Services’ (PFS) provision for losses on receivables increased in the fourth quarter and for the full year, landing at $25.4 million for Q4 and $75.6 million for 2024, up 47.7% year over year for the quarter and 141.5% YoY, according to the company’s earnings release today. Meanwhile, PFS loans 30-plus days past due rose above 1% for the first time since 2011, according to the company’s earnings presentation. 

Despite a slight decline in credit performance, the overall market and credit quality for PFS remain good, Harrie Schippers, president and chief financial officer at Paccar, said during the company’s earnings call today. 

“Paccar Financial is performing well with a portfolio that has excellent credit quality and low past dues,” he said. “Paccar Financials’ used truck inventory is at very healthy and low levels right now, so that’s also a good thing.” 

Bigger Picture

PFS issued $3.65 billion in medium-term loans through 2024, as access to capital markets remains strong for the transportation lender. Still, PFS and its parent company reported: 

• PFS revenue totaled $544.3 million in Q4, up 12.3% YoY;  

• PFS earned $104 million in pretax income in Q4, an 8% decrease YoY; 

• PFS revenue reached $2.1 billion in 2024, up 16% YoY;  

• PFS earned $435.6 million in pretax income in 2024, a 19.4% decline YoY; 

• PFS penetration reached 25% in 2024, up 1 percentage point YoY; 

• Paccar’s net income totaled $872 million in Q4, down 38.5% YoY; and 

• Paccar’s net income finished at $4.2 billion for full-year 2024, down 9.5% YoY. 

PFS manages a portfolio of 237,000 trucks and trailers, including a fleet of 41,000 vehicles from PacLease, the company’s North American and European truck leasing subsidiary, according to the earnings release. The company has $21.4 billion in total assets, up 1.9% YoY. 

While overall results remain mixed for Paccar, the increase in penetration rate came with an increased truck market share, Paccar CEO Preston Freight said during the earnings call. 

“Kenworth and Peterbilt‘s share increased to a strong 30.7%, up from 29.5% in the prior year,” he said. “In the medium-duty market, Kenworth and Peterbilt’s excellent new medium-duty truck has created customer value and market share grew from 14.5% to 18% as they produce a record 21,500 medium-duty trucks.” 

Market Outlook

Shares of Paccar Inc. [Nasdaq: PCAR] were trading at $107.25 at market close today, down $2.66 or 2.42% from market open. Paccar has a market capitalization of $57.63 billion.  

The third annual Equipment Finance Connect at the JW Marriott Nashville in Nashville, Tenn., on May 14-15, 2025, is the only event that brings together equipment dealers and lenders to share insights, attend discussions on crucial industry topics and network with peers. Learn more about the event and register here.