Paccar Inc.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 21 October 2025: press release. Guidance figures: 1 raised, 3 lowered, 5 new. The quarter’s numbers.

Read the filing

Key takeaways

• Net income and revenue declined: Third-quarter net income was $590.0 million ($1.12 per diluted share), down from $972.1 million ($1.85) a year earlier. Revenues were $6.67 billion against $8.24 billion. Source
• Parts revenue record; profit edged up: Parts revenue was $1.72 billion against $1.66 billion, described as a record. Parts pretax income was $410.0 million against $406.7 million. Source
• Truck pretax profit declined sharply: Truck pretax income was $102.5 million against $630.8 million. Nine-month Truck pretax income was $776.2 million against $2,349.7 million. Source
• Deliveries fell, led by North America: US and Canada deliveries were 17,100 units against 25,900. Europe was 10,100 against 10,000. Other regions were 4,700 against 9,000. Source
• Operating cash flow $3.27 billion: Cash generated from operations was $1.53 billion in the quarter. Nine-month operating cash flow was $3,271.5 million against $3,195.2 million. Source
• Battery joint venture building factory: Amplify Cell Technologies is building a 2.6 million sq. ft. factory in Byhalia, Mississippi, for lithium-iron-phosphate batteries in PACCAR hybrid and battery electric trucks. Source

“PACCAR delivered good revenues and net income in the third quarter of 2025.”

Preston Feight, chief executive officer

Guidance

What changed from last quarter

• Guidance lowered: 2025 US and Canada Class 8 retail sales range narrowed; top end cut to 245,000 from 260,000 vehicles. Source
• Guidance lowered: 2025 capital expenditure range top end cut to $775 million from $800 million. Source
• Guidance lowered: 2025 R&D expense range top end cut to $465 million from $480 million. Source
• Guidance raised: 2025 South American above-16-tonne market range raised to 95,000-105,000 units from 90,000-100,000. Source
• New guidance: 2026 market and spending estimates given for the first time, including Class 8, Europe, South America, capital expenditures and R&D. Source

Results and growth drivers

• Net income and revenue declined: Third-quarter net income was $590.0 million ($1.12 per diluted share), down from $972.1 million ($1.85) a year earlier. Revenues were $6.67 billion against $8.24 billion. Source
• Nine-month results include EC charge: Nine-month net income was $1.82 billion ($3.45 per diluted share), including a $264.5 million after-tax charge for European civil litigation. Adjusted net income was $2.08 billion ($3.95). Source

Segments and regions

• Parts revenue record; profit edged up: Parts revenue was $1.72 billion against $1.66 billion, described as a record. Parts pretax income was $410.0 million against $406.7 million. Source
• Truck pretax profit declined sharply: Truck pretax income was $102.5 million against $630.8 million. Nine-month Truck pretax income was $776.2 million against $2,349.7 million. Source
• PFS profit rose on used trucks: PACCAR Financial Services pretax income was $126.2 million against $106.5 million, on revenue of $565.3 million. Management cited an improving used truck market and a portfolio of 229,000 trucks and trailers. Source
• Revenue fell in US and Canada: United States and Canada revenue was $3,980.4 million against $5,061.6 million. Europe rose to $1,676.5 million from $1,605.5 million; Other fell to $1,014.9 million from $1,572.8 million. Source

“Peterbilt, Kenworth and DAF’s excellent trucks contributed to the good results,”

Preston Feight, chief executive officer

Products and customers

• Deliveries fell, led by North America: US and Canada deliveries were 17,100 units against 25,900. Europe was 10,100 against 10,000. Other regions were 4,700 against 9,000. Source
• Kenworth T880S vocational launch: Kenworth added a T880S configuration for heavy-haul, logging and other high-horsepower work, with up to 605 hp and 2,050 lb.-ft. of torque. Source
• DAF XF named fleet truck of year: The DAF XF was named Fleet Truck of the Year at the Motor Transport Awards in London in the third quarter. A judge cited 7-8% higher fuel efficiency than competitors’ trucks in his fleet. Source
• Kenworth and Peterbilt share 30.3%: Kenworth and Peterbilt reported 30.3% market share this year, compared with 30.4% for the first half. Source

Costs and spending

• Truck cost of sales declined: Cost of sales and revenues for Truck, Parts and Other was $5,345.4 million against $6,427.7 million. Nine-month cost was $17,231.8 million against $19,873.8 million. Source
• R&D and SG&A slightly lower: Research and development was $111.0 million against $115.0 million. Selling, general and administrative expense was $140.3 million against $144.3 million. Source
• Nine-month investment spending: Nine-month capital investments were $549.0 million and R&D expenses were $339.3 million, the company reported. Source

“PACCAR is proud to produce over 90% of its U.S. sold trucks in Texas, Ohio and Washington.”

Preston Feight, chief executive officer

Cash, capital and returns

• Operating cash flow $3.27 billion: Cash generated from operations was $1.53 billion in the quarter. Nine-month operating cash flow was $3,271.5 million against $3,195.2 million. Source
• Dividends declared rose: Dividends declared were $0.33 per share in the quarter against $0.30, and $0.99 for nine months against $0.87. Source
• Medium-term notes issued: PFS issued $2.37 billion of medium-term notes in the first nine months. Management cited A+/A1 credit ratings for access to commercial paper and medium-term note markets. Source
• Treasury stock purchases rose: Purchases of treasury stock were $35.2 million for nine months, against $4.5 million a year earlier. Source

Strategy and investment

• Battery joint venture building factory: Amplify Cell Technologies is building a 2.6 million sq. ft. factory in Byhalia, Mississippi, for lithium-iron-phosphate batteries in PACCAR hybrid and battery electric trucks. Source
• AI cuts IT upgrade time: PACCAR says AI reduced the time and cost of its IT infrastructure upgrade. Its predictive analytics uses AI to set vehicle service parameters that aim to improve customer uptime. Source
• Parts network scale: The 20 global parts distribution centers total over 3.9 million sq. ft. and support more than 2,000 DAF, Kenworth and Peterbilt locations and over 350 TRP stores. Source

Coming up, as management said on 21 October 2025

• Calgary parts distribution center: A new 180,000 sq. ft. parts distribution center in Calgary, Canada, is due to open next year. Source
• Columbus engine remanufacturing facility: A $35 million, 50,000 sq. ft. engine remanufacturing facility in Columbus, Mississippi, will open next year. Source
• Warsaw used truck center this year: PFS will open a used truck center in Warsaw, Poland, this year, to increase used truck sales in Central Europe. Source
• Byhalia battery cell production 2028: The Byhalia factory is targeting the start of battery cell production in 2028. Source

Figures management reported

Risks management discussed

• Regulatory: New Section 232 truck tariffs are scheduled to begin in November; management said they are expected to bring clarity to the market in coming months. Source
• Regulatory: European civil claims: courts have ruled both ways, some judgments are under appeal, and the company continues settling with claimants. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.