In the first three months of 2025, PACCAR generated revenues of approximately $7.44 billion, which marked a decline from $8.74 billion in the same period last year. The company reported net income of $505.1 million, or about $0.96 per diluted share. This figure includes a significant after-tax expense of $264.5 million related to ongoing civil litigation in Europe. When excluding this charge, PACCAR’s adjusted net income was around $769.6 million, equivalent to $1.46 per share. Compared to the first quarter of 2024, when net income was $1.20 billion or $2.27 per share, the current results reflect challenging market conditions and other factors affecting profitability.

Despite the revenue dip, PACCAR’s operational divisions demonstrated resilience. The Parts and Service division achieved record revenues, reaching approximately $1.69 billion, with pretax earnings of $426.5 million, underscoring the strength of its aftermarket business. Meanwhile, PACCAR Financial Services reported pretax income of $121.1 million, representing a 6% increase from the previous year, driven by sustained demand for financing solutions. The company also maintained strong cash flow from operations, with nearly $910 million generated during the quarter, providing flexibility for ongoing investments and strategic initiatives.

Market conditions continue to present hurdles, especially in North America, where economic uncertainties and recent tariffs have impacted demand. Industry estimates indicate that retail sales of Class 8 trucks in the U.S. and Canada are expected to be between 235,000 and 265,000 units for 2025. Meanwhile, in Europe, registrations of trucks over 16 tonnes are projected to range from 270,000 to 300,000 vehicles, reflecting a cautious outlook for the region.

Strategic expansion remains a key focus for PACCAR. The company announced plans to expand its DAF truck manufacturing facility in Ponta Grossa, Brazil, by adding 65,000 square feet to increase production capacity and support growing demand. Additionally, PACCAR is investing $35 million into a new 50,000-square-foot remanufacturing plant in Columbus, Mississippi, aimed at bolstering its powertrain refurbishment capabilities. On the financial services side, plans are underway to open a used truck center in Warsaw, Poland, to strengthen the company’s presence and sales network in Central Europe.

Leadership at PACCAR remains optimistic about the company’s future. CEO Preston Feight highlighted the dedication of employees and dealer partners in delivering quality trucks and innovative solutions despite external challenges. “Our team’s efforts continue to drive our success, and we remain committed to delivering excellence across all our brands,” he stated. President and CFO Harrie Schippers echoed this sentiment, emphasizing the progress made in resolving the European civil litigation issue and reaffirming the company’s focus on long-term growth through investments in new vehicle models, manufacturing technology, and digital aftermarket solutions.

Looking ahead, PACCAR plans to allocate between $700 million and $800 million in capital expenditures throughout 2025, alongside investments of approximately $450 million to $480 million in research and development. These funds will support the development of next-generation powertrains, including hybrid and fully electric systems, as well as connected vehicle services and advanced driver assistance systems. The company is also committed to sustainability initiatives, with an investment of $600 million to $900 million in its battery joint venture, Amplify Cell Technologies, aimed at accelerating the development of innovative energy storage solutions for the trucking industry.