Paccar (PCAR) FY2025 results: revenue $28.4 billion, down 15.5% on the year

PACCAR designs, manufactures and distributes light-, medium- and heavy-duty commercial trucks, distributes aftermarket parts for them, and provides finance and leasing to customers and dealers. It was incorporated in Delaware in 1971, succeeding Pacific Car and Foundry Company of 1924, and traces itself back to the Seattle Car Manufacturing Company formed in 1905. Three segments: Truck, which was 68 percent of the 2025 total, Parts at 24 percent and Financial Services at 8 percent.

The trucks

Trucks are sold under the Kenworth, Peterbilt and DAF names and are built in three plants in the United States, three in Europe and one each in Australia, Brasil, Canada and Mexico. Heavy-duty means over 33,000 lbs gross vehicle weight in North America, Class 8, and over 16 tonnes in Europe and South America; medium-duty is 19,500 to 33,000 lbs, Class 6 to 7, and 6 to 16 tonnes in Europe. In North America it competes with Kenworth and Peterbilt conventional models, assembled at Chillicothe, Ohio; Denton, Texas; Renton, Washington; Mexicali in Mexico and one plant in Canada. In Europe it sells DAF cab-over-engine trucks, the light and medium ones assembled in the U.K. by its Leyland subsidiary and the heavy ones in the Netherlands and the U.K. DAF also competes in Brasil from Ponta Grossa, and Kenworth and DAF models serve Australia from Bayswater, Victoria.

What it makes and what it buys

The company designs and makes its own diesel engines at Columbus, Mississippi; Eindhoven in the Netherlands and Ponta Grossa in Brasil. In 2025 PACCAR engines went into approximately 29 percent of Kenworth and Peterbilt heavy-duty trucks in the United States and Canada and substantially all DAF heavy-duty trucks worldwide; the rest come from Cummins. Much of the transmission supply comes from Eaton and ZF and much of the North American cab stamping from Magna, under long-term agreements, and the filing states that losing supply from any of those four would materially affect results. DAF is more vertically integrated, making PACCAR engines and axles and more of its own components, and buys fully assembled cabs for its European light and medium range from a competitor, Renault V.I., under a joint development and supply contract; trucks built with those cabs were about 2 percent of the 2025 total. Raw materials, partially processed materials and finished components typically make up approximately 85 percent of the cost of a new truck.

Parts

Aftermarket parts go to over 2,000 Kenworth, Peterbilt and DAF dealers and more than 350 TRP stores, TRP being the company's own aftermarket parts brand, across 99 countries. They move through 21 parts distribution centres in the U.S., Canada, Europe, Australia, Mexico and Central and South America. Parts are primarily purchased from various suppliers and also manufactured by the company. What this segment sells follows the number of PACCAR trucks in service and their average age and mileage, and its material costs move with steel, copper, aluminium and petroleum prices, managed with long-term supply agreements.

Financial Services

PACCAR Financial Services operates in 26 countries across North America, Europe, Australia and South America through wholly owned finance companies, and runs full-service leasing under the PacLease name in North America, Germany and Australia, through its own outlets and through franchised dealers it supplies with equipment financing and support. Customers are small, medium and large trucking companies, owner-operators and other businesses buying PACCAR trucks from independent dealers. Receivables are classified as dealer wholesale, dealer retail and customer retail. New loan and lease volume was $6.88 billion in 2025 against $7.50 billion in 2024, and the share of new PACCAR truck sales financed in-house was 27.0 percent against 25.0 percent. The segment also runs the used truck business, selling trucks off matured operating leases, repossessions, trade-ins and vehicles returned under residual value guarantees, with certain gains and losses shared back to the Truck segment.

Market position and people

Heavy-duty industry retail sales in the U.S. and Canada were 232,800 units in 2025 against 268,100 in 2024, and the company's retail share was 29.9 percent against 30.7 percent. Its medium-duty share was 15.9 percent of an 88,400-unit market. In Europe the over-16-tonne market was 297,000 units and DAF's share 13.5 percent, with 9.7 percent of the 6 to 16-tonne market. In Brasil the over-16-tonne market was 86,700 units and DAF Brasil's share 8.6 percent. There were approximately 25,900 employees on 31 December 2025, approximately 40 percent of them in the United States. Industrial winches, sold under the BRADEN, CARCO and Gearmatic names, were made until 31 October 2024.

From PACCAR's annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 18 February 2026: read the full 10-K.