Paccar achieved quarterly revenues of $7.44 billion in the first quarter of 2025, which is down from the $8.74 billion reported in 2024 but still "good," the company says.
"Paccar reported good revenues and net income in the first quarter of 2025," says Preston Feight, CEO. "Peterbilt, Kenworth and DAF delivered good results. Paccar Parts delivered record revenue and strong profits, and Paccar Financial Services achieved good results due to its high-quality portfolio. I am very proud of our employees and dealers who have delivered outstanding trucks and transportation solutions to our customers."
Net income for the first quarter was $505.1 million, including a $264.5 million after-tax charge related to civil litigation in Europe. Excluding that charge, the company earned adjusted net income of $769.6 million in the first quarter versus $1.2 billion in net income in the first quarter of 2024.
"The truck industry is an exciting, dynamic time of technological change," Feight says. "Paccar's long-term investments in new truck models, advanced manufacturing and technology-enabled aftermarket solutions will support customers' and the company's growth."
Global truck markets
U.S. and Canadian Class 8 truck sales are expected to be between 270,000-300,000 trucks.
"The North American truck market is being affected by uncertain economic conditions and the impact of new tariffs," says Kevin Baney, Paccar executive vice president.
In Europe, the above 16-tonne market is expected to sell around the same numbers, with the South American market projected to be 100,000-110,000 trucks.
"Paccar is expanding its DAF truck factory in Ponta Grossa, Brazil, by 65,000 square feet, to increase capacity and enhance its engine production capabilities," says Mike Dozier, Paccar executive vice president.
Paccar Parts
For Paccar Parts, the first quarter was a record, with $1.69 billion in revenue, which is more than the $1.68 billion reported in the same quarter last year. Quarterly pretax income was $426.5 million, beating last year's Q1 total of $455.8 million, the company says.
"Paccar Parts' excellent performance reflects investments in new parts distribution centers (PDCs), TRP all-makes parts and TRP stores, and world-class logistics capabilities," says Bryan Sitko, Paccar vice president and Paccar Parts general manager.
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Paccar has produced more than a million Paccar MX engines, the company says, leading to a downstream powertrain business opportunity.
"Paccar is investing in a 50,000 square-foot, $35 million Paccar engine remanufacturing facility in Columbus, Mississippi," says Harry Wolters, Paccar vice president. "This new factory will remanufacture existing Paccar engines to provide dealers and customers reliable and lower cost powertrains for current vehicles."
Paccar Financial Services
Paccar Financial Services' pretax income for the first quarter was $121.million, a 6% increase over the first quarter of 2024. Revenues for the same period were $528 million, which beats the 2024 Q1 revenue of $509.3 million.
"PFS achieved good quarter results due to its strong portfolio quality," says Craig Gryniewicz, Paccar vice president. "PFS is a leader in the market with its superior Kenworth, Peterbilt and DAF products, innovative technologies that provide seamless credit application and loan processing, and its support of customers in all phases of the busines cycle."
PFS has a portfolio of 235,000 trucks and trailers with total assets of $22.75 billion.
Capital and R&D investment
Paccar has invested $8.8 billion in the past decade, the company says, including $171.9 million in capital projects and $115.4 million in research and development expenses in the first quarter of 2025.
"Capital expenditures are projected to be in the range of $700-800 million and research and development expenses are estimated to be in the range of $450-480 million in 2025," says Harrie Schippers, president and chief financial officer. "Paccar is increasing its investment in next generation internal combustion, hybrid and battery-electric powertrains, integrated connected vehicle services, expanded manufacturing capabilities, and advanced driver assistance systems that will create value for our customers."
The company also plans to invest a total project amount of $600-900 million in its battery joint venture, Amplify Cell Technologies.
"Paccar's 38,000 sq.-ft., technical research facility expansion will accelerate new product development for global markets and enable next generation vehicle and powertrain innovations," says Dr. Phil Stephenson, Paccar Technical Center general manager. "Laboratory enhancements, such as a new advanced battery test facility, machining equipment and an electron microscope, support Paccar's ability to deliver the highest quality products for our customers."
