Here’s what you need to know:
- Paccar reported its 87th consecutive year of net income in 2025.
- Despite positive income, fourth quarter and 2025 revenues were down amid market challenges, totaling $6.82 and $28.44 billion, respectively.
- Paccar Parts was a leading segment for the business, setting record quarterly and annual revenues of $1.74 and $6.87 billion.
Paccar on Tuesday reported revenues of $6.82 billion in the fourth quarter of 2025 — down from $7.91 billion in the same quarter in 2024 but slightly above its Q3 performance — and total 2025 earnings of $28.44 billion.
Despite the quarterly revenue dip, the company still reported profits of $559 million in the quarter (compared to $872 million in 2024), giving it a net income of $2.38 billion in 2025 and an adjusted net income of $2.64 billion — the company’s 87th consecutive year of net income.
Leadership impressed by business performance in uneven year
Paccar CEO Preston Freight spoke positively of the company’s results considering market conditions. Its adjusted net income was its fourth best in history, and its Paccar Parts division set records both in the fourth quarter and for the year.
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“Paccar reported very good annual revenues and net income in 2025. Paccar Parts and Paccar Financial Services delivered record revenue and strong profits,” he said. “Kenworth, Peterbilt and DAF’s premium quality trucks contributed to the very good results. I am very proud of our employees and dealers who delivered outstanding trucks and transportation solutions to our customers.”
Paccar well suited to manage tariff instability
In North America, Paccar reported Kenworth and Peterbilt achieved excellent U.S. and Canada Class 8 retail sales market share of 30% in 2025. U.S. and Canada Class 8 truck industry retail sales were 233,000 units in 2025 and are estimated to be in a range of 230,000 to 270,000 trucks in 2026.
“Industry truck orders increased in December,” said Laura Bloch, Paccar senior vice president. “The truck market is responding to the clarification of tariff policy and emissions regulations, which combined with early improvements in freight fundamentals, should lead to a stronger truck market in 2026.”
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Feight added, “Paccar’s North American truck factories are optimally located to operate under the Section 232 truck tariff regulations that began in November. Paccar produces trucks in the United States, Canada and Mexico for the local markets, which minimizes tariff costs.”
Complete 2025 earnings show diversified success
Overall, Paccar reported 2025 after-tax revenues of 8.4%, with Paccar Parts earning $6.87 billion, Financial Services assets of $22.8 billion and dividends declared of $1.43 billion.
The company stated it delivered 144,200 vehicles worldwide.
Paccar also invested $1.17 billion in capital projects and research and development, including a 50,000 sq. ft. engine remanufacturing facility in Mississippi, a parts distribution center in Calgary, Alberta, and the construction of a 46,000 sq.-ft., robotic chassis paint facility in Chillicothe, Ohio.
The company estimated it will invest $725-$775 million in capital projects and $450-$500 million in research and development expenses in 2026.
“Paccar is investing in exciting next generation clean diesel and alternative powertrains, electric battery cells, integrated connected vehicle services, flexible manufacturing capabilities, and autonomous and advanced driver assistance systems, that create value for customers,” added Brice Poplawski, Paccar senior vice president and chief financial officer.
