PACCAR INC
For the period ended Mar 31, 2025. Filed May 1, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 1, 2025
PCAR$101.98-2.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-10-30.
0000950170-24-118960
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-01.
0000950170-25-061813
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 164 previous paragraphs and 131 current paragraphs.
38 unchanged; 75 reworded; 18 added; 38 removed; 13 previous and 0 current paragraphs rearranged.
Tables are not compared: 23 previous and 18 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (18)
Current report
First Quarter Financial Highlights:
Current report
Truck sales were $5.23 billion in 2025 compared to $6.54 billion in 2024, due to lower truck deliveries primarily in the U.S. and Canada and Europe.
Current report
Capital investments were $171.9 million in 2025 compared to $164.3 million in 2024.
Current report
The Company has been affected by the import tariffs recently imposed by the U.S. government and retaliatory actions taken by other countries. The impact from import tariffs on truck order intake and profit margins is uncertain due to the rapidly evolving tariff environment. If tariff policy uncertainty continues, economic conditions may weaken and truck industry retail sales would likely decline.
Current report
** See Reconciliation of GAAP to Non-GAAP Financial Measures for 2025 on page 44.
Current report
The Company’s worldwide truck net sales and revenues in the first quarter decreased to $5.23 billion in 2025 from $6.54 billion in 2024, primarily due to lower truck deliveries in the U.S. and Canada and Europe from lower retail demand, as well as unfavorable currency translation effects.
Current report
Average truck sales prices decreased sales by $114.7 million, primarily due to lower price realization in the U.S. and Canada and Europe, reflecting an increased competitive environment in all markets except Australia.
Current report
Average cost per truck increased cost of sales by $221.8 million, primarily reflecting higher mix of trucks with higher content and product support accruals.
Current report
Aftermarket parts sales volume decreased by $22.4 million and related cost of sales decreased by $9.3 million. The decrease in parts sales and costs reflects primarily lower sales volume in all markets except Australia. The decrease in cost of sales reflects lower sales volume and unfavorable product mix in the U.S. and Canada and Europe.
Current report
Warehouse and other indirect costs increased $11.0 million, primarily due to higher indirect costs including depreciation expense.
Current report
Parts gross margin in the first quarter of 2025 decreased to 30.7% from 32.5% in the first quarter of 2024 due to the factors noted above.
Current report
Parts SG&A expense in the first quarter of 2025 decreased to $60.9 million from $61.3 million in the same period of 2024. The decrease was due to currency translation effects and lower sales and marketing expenses.
Current report
New loan and lease volume was $1.51 billion in the first quarter of 2025 compared to $1.52 billion in the first quarter of 2024. The slight decrease was primarily due to lower new loan and lease volume in the U.S. and Canada and Brasil from lower retail sales of PACCAR trucks, mostly offset by higher finance market shares of new PACCAR truck sales in all markets except Brasil. The effect of currency translation decreased new loan and lease volume by $72.3 million, primarily due to a decrease in the value of the Mexican peso and Brazilian real relative to the U.S. dollar. The decrease in equipment on operating lease volume is primarily due to lower market demand in the U.S., partially offset by higher demand in Europe.
Current report
Financial Services SG&A for the first quarter of 2025 of $38.3 million decreased from $39.0 million in the first quarter of 2024, reflecting lower professional fees and sales and marketing expenses.
Current report
The Company typically requires customers to pay current before granting modifications. The higher pro forma percentage of retail loan and lease accounts 30+ days past due at March 31, 2025 in Mexico, Australia, Brasil and other was primarily due to accounts modified in Brasil and Mexico.
Current report
Investing activities: Cash used in investing activities decreased by $133.5 million to $392.6 million in the first three months of 2025 from $526.1 million in 2024. The decrease in net cash used in investing activities primarily reflects a net decrease in wholesale receivables on equipment of $99.4 million and lower net originations of retail loans and finance leases of $19.7 million.
Current report
The effect of exchange rate changes on cash increased cash and cash equivalents by $73.9 million in the first three months of 2025, reflecting an increase in the value of foreign currencies relative to the U.S. dollar, primarily the euro, the British pound and Brazilian real. In the first three months of 2024, a decrease in the value of foreign currencies relative to the U.S. dollar, primarily the euro, the Australian dollar and the Canadian dollar, decreased cash and cash equivalents by $50.1 million.
Current report
In 2025, total capital investments for PACCAR are expected to be $700 to $800 million and R&D is expected to be $450 to $480 million. PACCAR is increasing its investment in next generation internal combustion, hybrid and battery-electric powertrains, integrated connected vehicle services, advanced manufacturing capabilities, and advanced driver assistance systems that will create value for our customers. In addition to the capital and R&D investments, the company plans to invest a total project amount of $600-$900 million in its battery joint venture, Amplify Cell Technologies.
Removed paragraphs (38)
Previous report
Third Quarter Financial Highlights:
Previous report
Truck revenues were $6.03 billion in 2024 compared to $6.64 billion in 2023, from lower revenues in Europe and the U.S. and Canada.
Previous report
Net income was $972.1 million ($1.85 per diluted share) in 2024 compared to $1.23 billion ($2.34 per diluted share) in 2023.
Previous report
Capital investments were $183.8 million in 2024 compared to $174.5 million in 2023.
Previous report
First Nine Months Financial Highlights:
Previous report
Truck revenues were $19.15 billion in 2024, compared to $19.88 billion in 2023, from lower revenues in Europe mostly offset by all other markets.
Previous report
Parts sales were $5.00 billion in 2024 compared to $4.80 billion in 2023, reflecting higher sales in all markets.
Previous report
Financial Services revenues were $1.56 billion in 2024 compared to $1.33 billion in 2023, primarily due to higher interest income driven by portfolio growth and higher portfolio yields.
Previous report
Capital investments were $567.7 million in 2024 compared to $486.5 million in 2023.
Previous report
PACCAR Parts opened its new 240,000 square-foot Parts Distribution Center (PDC) in Massbach, Germany. This PDC expedites parts delivery to dealers and customers in the region. PACCAR’s 20 PDCs support more than 2,000 DAF, Kenworth and Peterbilt dealer sales, parts and service locations, and over 300 TRP stores.
Previous report
PACCAR’s excellent long-term profits, strong balance sheet and consistent focus on quality have enabled the Company to invest $8.4 billion in new and expanded facilities, innovative products and new technologies during the past decade. Capital investments in 2024 are expected to be $760 to $800 million and R&D is expected to be $450 to $470 million. In 2025, capital investments are projected to be $700 to $800 million and R&D is expected to be $480 to $530 million. PACCAR is investing in additional global engine manufacturing capacity, and in the construction of a new engine remanufacturing facility that will be located in Columbus, Mississippi. Truck factory investments include the expansion at Kenworth Chillicothe, Ohio, PACCAR Mexico, and the DAF electric truck assembly plant in Eindhoven, Netherlands. The Company expects to invest $600 to $900 million in its battery joint venture, Amplify Cell Technologies, over the next few years.
Previous report
The Company’s worldwide truck net sales and revenues in the third quarter decreased to $6.03 billion in 2024 from $6.64 billion in 2023, primarily due to lower truck unit deliveries in Europe and the U.S. and Canada. Revenues for the first nine months decreased to $19.15 billion in 2024 from $19.88 billion in 2023, primarily due to lower truck deliveries in Europe, partially offset by higher truck deliveries and average sales prices in the U.S. and Canada.
Previous report
Truck sales volume decreased revenues by $578.2 million and costs by $456.1 million, primarily reflecting lower truck deliveries in Europe, the U.S. and Canada, partially offset by higher truck deliveries in Mexico, South America and Australia.
Previous report
Average truck sales prices were comparable and decreased $29.5 million.
Previous report
Average truck costs increased $174.5 million, primarily reflecting higher raw material, labor and warranty costs.
Previous report
Average truck sales prices increased by $194.2 million from modest price realization, primarily in the U.S. and Canada, Mexico and Australia.
Previous report
Average truck costs increased by $398.2 million, primarily reflecting higher raw material and labor costs, partially offset by lower warranty costs.
Previous report
Factory overhead and other indirect costs increased $35.8 million, primarily due to higher labor costs, partially offset by lower factory supplies and utilities costs.
Previous report
Truck gross margin was 14.6% in the first nine months of 2024 compared to 16.3% in the same period of 2023 due to the factors noted above.
Previous report
Aftermarket parts sales volume increased by $26.7 million and related cost of sales increased by $29.5 million primarily reflecting higher sales volume in all markets except the U.S. and Canada.
Previous report
Warehouse and other indirect costs increased $4.8 million, primarily due to higher salaries and related expenses.
Previous report
The currency translation effect on sales and cost of sales reflects an increase in the value of the euro relative to the U.S dollar, partially offset by a decrease in the value of the Brazilian real relative to the U.S. dollar.
Previous report
Parts gross margins in the third quarter of 2024 decreased to 30.1% from 31.5% in the third quarter of 2023 due to the factors noted above.
Previous report
Aftermarket parts sales volume increased by $55.8 million and related cost of sales increased by $44.9 million, primarily reflecting higher sales volume in all markets except the U.S. and Canada.
Previous report
Warehouse and other indirect costs increased $11.1 million, primarily due to higher salaries and related expenses.
Previous report
The currency translation effect on sales reflects an increase in the value of the euro relative to the U.S dollar partially offset by a decrease in the value of the Brazilian real, Canadian dollar and Australian dollar relative to the U.S. dollar.
Previous report
Parts gross margins in the first nine months of 2024 decreased to 31.0% from 31.8% in the first nine months of 2023 due to the factors noted above.
Previous report
Parts SG&A expense increased in the third quarter of 2024 to $62.5 million from $61.4 million in 2023, and for the first nine months, Parts SG&A increased to $186.4 million in 2024 from $178.6 million in 2023. The increase in both periods was primarily due to higher salaries and related expenses, partially offset by lower sales and marketing costs and professional fees.
Previous report
New loan and lease volume was $2.01 billion in the the third quarter of 2024 compared to $1.90 billion in the third quarter of 2023, and for the first nine months of 2024 was $5.45 billion compared to $5.24 billion in 2023. The increase in new loan and lease volume for both periods reflected higher finance market share of new PACCAR truck sales, primarily in the U.S. and Canada and Brasil. The increase in equipment on operating lease volume reflected higher market demand and a higher amount financed per truck in all major markets.
Previous report
The Company recognized losses on used trucks, excluding repossessions, of $37.5 million in the first nine months of 2024, compared to gains of $51.2 million in the first nine months of 2023, including losses on multiple unit transactions of $27.7 million in the first nine months of 2024 compared to $4.2 million in the first nine months of 2023. Used truck losses related to repossessions, which are recognized as credit losses, were $8.0 million for the first nine months of 2024 and $2.4 million first nine months of 2023.
Previous report
Higher portfolio yields (7.3% in 2024 compared to 6.6% in 2023) increased interest and fees by $80.9 million. The higher portfolio yields were primarily due to higher market rates in all markets.
Previous report
Higher borrowing rates (4.7% in 2024 compared to 3.7% in 2023) increased interest and other borrowing expenses by $93.1 million and were primarily due to higher debt market rates in all markets.
Previous report
The currency translation effects on Operating lease, rental and other revenues reflects a decrease in the value of foreign currencies relative to the U.S. dollar, primarily Mexican peso, partially offset by an increase in the euro.
Previous report
Higher sales volume, partially offset by lower market prices of used trucks on trade, increased revenues by $47.4 million and related depreciation and other expenses by $49.5 million.
Previous report
Results on returned lease assets increased depreciation and other expenses by $77.4 million, primarily due to losses on sale of returned lease units in 2024 (compared to gains in 2023) and impairment on existing used truck inventories in Europe as a result of lower used truck market values.
Previous report
The currency translation effects reflect an increase in the value of foreign currencies relative to the U.S. dollar, primarily the euro.
Previous report
Financial Services SG&A for the third quarter of 2024 increased to $42.2 million from $38.7 million in the third quarter of 2023. For the first nine months, Financial Services SG&A increased to $122.0 million in 2024 from $110.9 million in 2023. The increase in both periods was primarily due to higher salaries and related expenses and higher professional fees.
Previous report
Investing activities: Cash used in investing activities increased by $824.2 million to $2,755.3 million in the first nine months of 2024 from $1,931.1 million in 2023. The increase in net cash used in investing activities reflects increased purchases of marketable securities, net of proceeds from sales and maturities, of $505.4 million, increased acquisitions of equipment for operating leases of $235.5 million and cash contributed to the battery manufacturing joint venture, Amplify Cell Technologies, of $125.8 million.
Reworded paragraphs (75)
Previous wording
PACCAR is a global technology company whose Truck segment includes the design and manufacture of high-quality light-, medium- and heavy-duty commercial trucks. In North America, trucks are sold under the Kenworth and Peterbilt nameplates, in Europe, under the DAF nameplate and in Australia and South America, under the Kenworth and DAF nameplates. The Parts segment includes the distribution of aftermarket parts for trucks and related commercial vehicles. The Company’s Financial Services segment derives its earnings primarily from financing or leasing PACCAR products in North America, Europe, Australia and South America. The Company’s Other business includes the manufacturing and marketing of industrial winches.
Current wording
PACCAR is a global technology company whose Truck segment includes the design and manufacture of high-quality light-, medium- and heavy-duty commercial trucks. In the U.S. and Canada, trucks are sold under the Kenworth and Peterbilt nameplates, in Europe, under the DAF nameplate and in Mexico, Australia and South America, under the Kenworth and DAF nameplates. The Parts segment includes the distribution of aftermarket parts for trucks and related commercial vehicles. The Company’s Financial Services segment derives its earnings primarily from financing or leasing PACCAR products in North America, Europe, Australia and South America. The Company’s Other business included the manufacturing and marketing of industrial winches through October 31, 2024, when PACCAR sold its industrial winch business.
Previous wording
Worldwide net sales and revenues were $8.24 billion in 2024 compared to $8.70 billion in 2023, primarily due to lower truck revenues, partially offset by higher parts and financial services revenues.
Current wording
Worldwide net sales and revenues were $7.44 billion in 2025 compared to $8.74 billion in 2024, primarily due to lower truck revenues, partially offset by higher parts and financial services revenues.
Previous wording
Parts sales were $1.66 billion in 2024 compared to $1.58 billion in 2023, reflecting higher sales in all markets.
Current wording
Parts sales were a record $1.69 billion in 2025 compared to $1.68 billion in 2024, reflecting higher sales in the U.S. and Canada.
Previous wording
Financial Services revenues were $536.1 million in 2024 compared to $464.1 million in 2023, primarily due to higher interest income driven by portfolio growth and higher portfolio yields.
Current wording
Financial Services revenues were $528.0 million in 2025 compared to $509.3 million in 2024, primarily due portfolio growth and higher portfolio yields.
Previous wording
Net income was $3.29 billion ($6.25 per diluted share) in 2024 compared to $3.18 billion ($6.07 per diluted share) in 2023. In 2023, adjusted net income (non-GAAP), excluding a $446.4 million after-tax non-recurring charge related to civil litigation in Europe was $3.63 billion ($6.92 per diluted share). See Reconciliation of GAAP to Non-GAAP Financial Measures on page 50.
Current wording
Net income was $505.1 million ($.96 per diluted share) in 2025 compared to $1.20 billion ($2.27 per diluted share) in 2024. In 2025, adjusted net income (non-GAAP), excluding a $264.5 million after-tax charge related to civil litigation in Europe was $769.6 million ($1.46 per diluted share). See Reconciliation of GAAP to Non-GAAP Financial Measures on page 44.
Previous wording
Research and development (R&D) expenses were $115.0 million in 2024 compared to $103.5 million in 2023.
Current wording
Research and development (R&D) expenses were $115.4 million in 2025 compared to $105.5 million in 2024.
Previous wording
The PACCAR Financial Services (PFS) group of companies has operations covering four continents and 26 countries. The global breadth of PFS and its rigorous credit application process support a portfolio of loans and leases with total assets of $22.48 billion. PFS issued $3.25 billion in medium-term notes during the first nine months of 2024 to support new business volume and repay maturing debt.
Current wording
The PACCAR Financial Services (PFS) group of companies has operations covering four continents and 26 countries. The global breadth of PFS and its rigorous credit application process support a portfolio of loans and leases with total assets of $22.75 billion. PFS issued $694.6 million in medium-term notes during the first three months of 2025 to support new business volume and repay maturing debt.
Previous wording
Truck industry heavy-duty retail sales in the U.S. and Canada in 2024 are expected to be 250,000 to 270,000 units compared to 297,000 in 2023. Estimates for the U.S. and Canada truck industry heavy-duty retail sales in 2025 are in the range of 250,000 to 280,000 units. In Europe, 2024 truck industry registrations for over 16-tonne vehicles are expected to be 290,000 to 310,000 units compared to 343,300 in 2023. The European truck registrations in the above 16-tonne truck market for 2025 are projected to be in a range of 270,000 to 300,000 units. In South America, heavy-duty truck industry registrations in 2024 are projected to be 110,000 to 120,000 units compared to 105,000 in 2023, and in a similar range for 2025.
Current wording
Truck industry heavy-duty retail sales in the U.S. and Canada in 2025 are expected to be 235,000 to 265,000 units compared to 268,100 in 2024. In Europe, 2025 truck industry registrations for over 16-tonne vehicles are expected to be 270,000 to 300,000 units compared to 316,100 in 2024. In South America, heavy-duty truck industry registrations in 2025 are projected to be 100,000 to 110,000 units compared to 119,000 in 2024.
Previous wording
In 2024, PACCAR Parts sales are expected to increase 3-5% compared to 2023, reflecting stable demand. In 2025, PACCAR Parts sales could increase 3-5% from 2024 levels, depending on the economic conditions.
Current wording
In 2025, PACCAR Parts sales are expected to increase 2-4% compared to 2024, depending on the economic conditions, including the effect of tariff uncertainty.
Previous wording
In 2024, average earning assets are expected to increase 8-11% compared to 2023. The used truck market has normalized in North America, but remains soft in Europe, which is reflected in PFS’ quarterly results this year. If freight transportation conditions decline due to a weaker economy, then past due accounts, truck repossessions and credit losses would likely increase from the current levels and new business volume would likely decline. In 2025, average earning assets are expected to be comparable to 2024.
Current wording
In 2025, average earning assets are expected to be comparable to 2024. The used truck market has normalized in North America, but remains soft in Europe. If freight transportation conditions decline due to a weaker economy, including the effect of tariff uncertainty, then past due accounts, truck repossessions and credit losses would likely increase from the current levels and new business volume would likely decline.
Previous wording
In 2024, total capital investments for PACCAR are expected to be $760 to $800 million and R&D is expected to be $450 to $470 million. In 2025, capital investments are expected to be $700 to $800 million and R&D is expected to be $480 to $530 million. The Company is increasing its investment in advanced new trucks and powertrains, enhanced manufacturing capabilities and capacity, and aftermarket distribution capabilities and capacity.
Current wording
Capital investments in 2025 are expected to be $700 to $800 million and R&D is expected to be $450 to $480 million. PACCAR is increasing its investment in next generation internal combustion, hybrid and battery-electric powertrains, integrated connected vehicle services, advanced manufacturing capabilities, and advanced driver assistance systems that will create value for our customers. In addition to the capital and R&D investments, the company plans to invest a total project amount of $600-$900 million in its battery joint venture, Amplify Cell Technologies.
Previous wording
The Company’s results of operations for the three and nine months ended September 30, 2024 and 2023 are presented below.
Current wording
The Company’s results of operations for the three months ended March 31, 2025 and 2024 are presented below.
Previous wording
In 2023, Other includes a $600.0 million non-recurring charge related to civil litigation in Europe (EC-related claims) in the first quarter 2023.
Current wording
In 2025, Other includes a $350.0 million charge related to civil litigation in Europe (EC-related claims).
Previous wording
The following provides an analysis of the results of operations for the Company’s three reportable segments - Truck, Parts and Financial Services. Where possible, the Company has quantified the impact of factors identified in the following discussion and analysis. In cases where it is not possible to quantify the impact of factors, the Company lists them in estimated order of importance. Factors for which the Company is unable to specifically quantify the impact include market demand, fuel prices, freight tonnage and economic conditions affecting the Company’s results of operations.
Current wording
The following provides an analysis of the results of operations for the Company’s three reportable segments - Truck, Parts and Financial Services. Where possible, the Company has quantified the impact of factors identified in the following discussion and analysis. In cases where it is not possible to quantify the impact of factors, the Company lists them in estimated order of importance. Factors for which the Company is unable to specifically quantify the impact include market demand and impact from tariffs, fuel prices, freight tonnage and economic conditions affecting the Company’s results of operations.
Previous wording
The Company’s Truck segment accounted for 73% of revenues in the third quarter and 74% for first nine months of 2024, respectively, compared to 76% in both the third quarter and first nine months of 2023.
Current wording
The Company’s Truck segment accounted for 70% of revenues in the first quarter of 2025 compared to 75% in the first quarter of 2024.
Previous wording
Worldwide new truck deliveries decreased in the third quarter and first nine months of 2024 compared to the same periods of 2023, primarily due to lower deliveries in Europe.
Current wording
Worldwide new truck deliveries decreased in the first quarter of 2025 compared to the same period of 2024, primarily due to lower deliveries in the U.S. and Canada and Europe, partially offset by an increase in Mexico.
Previous wording
In the first nine months of 2024, industry retail sales in the heavy-duty market in the U.S. and Canada were 198,600 units compared to 225,200 units in the same period of 2023. The Company’s heavy-duty truck retail market share was 31.1% in the first nine months of 2024 compared to 28.4% in the first nine months of 2023. The medium-duty market was 80,800 units in the first nine months of 2024 compared to 78,400 units in the same period of 2023. The Company’s medium-duty market share was 17.2% in the first nine months of 2024 compared to 13.5% in the first nine months of 2023.
Current wording
In the first three months of 2025, industry retail sales in the heavy-duty market in the U.S. and Canada were 56,600 units compared to 62,300 units in the same period of 2024. The Company’s heavy-duty truck retail market share was 29.1% in the first three months of 2025 compared to 30.3% in the first three months of 2024. The medium-duty market was 26,000 units in the first three months of 2025 compared to 25,200 units in the same period of 2024. The Company’s medium-duty market share was 14.5% in the first three months of 2025 compared to 17.0% in the first three months of 2024.
Previous wording
The over 16‑tonne truck market in Europe in the first nine months of 2024 was 239,800 units compared to 263,100 units in the first nine months of 2023. DAF over 16‑tonne market share was 14.0% in the first nine months of 2024 compared to 15.9% in the same period of 2023. The 6 to 16‑tonne market in the first nine months of 2024 was 38,900 units compared to 35,800 units in the same period of 2023. DAF market share in the 6 to 16-tonne market in the first nine months of 2024 was 9.1% compared to 9.0% in the same period of 2023.
Current wording
The over 16‑tonne truck market in Europe in the first three months of 2025 was 72,000 units compared to 84,600 units in the first three months of 2024. DAF over 16‑tonne market share was 14.0% in the first three months of 2025 compared to 13.4% in the same period of 2024. The 6 to 16‑tonne market in the first three months of 2025 was 9,700 units compared to 12,100 units in the same period of 2024. DAF market share in the 6 to 16-tonne market in the first three months of 2025 was 10.7% compared to 9.2% in the same period of 2024.
Previous wording
The over 16-tonne truck market in Brasil in the first nine months of 2024 was 71,500 units compared to 59,500 units in the same period of 2023. DAF Brasil market share for the first nine months of 2024 was 10.0% compared to 9.9% in the same period in 2023.
Current wording
The over 16-tonne truck market in Brasil in the first three months of 2025 was 21,500 units compared to 21,000 units in the same period of 2024. DAF Brasil market share for the first three months of 2025 was 9.6% compared to 10.7% in the same period in 2024.
Previous wording
In the third quarter and first nine months of 2024, Truck segment income before taxes and pretax return on revenues decreased primarily due to lower truck unit deliveries in Europe. The decrease was partially offset by higher truck unit deliveries in Mexico, South America, Australia and other for the third quarter, and by higher truck unit deliveries in the U.S. and Canada for the first nine months of 2024, respectively.
Current wording
In the first quarter of 2025, Truck segment income before income taxes and pre-tax return on revenues decreased primarily due to lower truck unit deliveries and lower price realization in the U.S. and Canada and Europe.
Previous wording
Truck sales volume decreased revenues by $950.8 million and costs by $770.7 million, primarily reflecting lower truck deliveries in Europe, partially offset by higher truck deliveries in the U.S. and Canada.
Current wording
Truck sales volume decreased revenues by $1,123.0 million and costs by $909.0 million, primarily reflecting lower truck deliveries in the U.S. and Canada and Europe, partially offset by higher truck deliveries in Mexico.
Previous wording
Factory overhead and other indirect costs decreased $14.3 million, primarily due to lower repair and maintenance costs, factory supplies and depreciation.
Current wording
Factory overhead and other indirect costs decreased $44.3 million, primarily due to lower labor costs, R&M costs and factory supplies from lower truck build rates.
Previous wording
Extended warranties, operating leases and other increased revenues by $59.9 million primarily due to higher volume of extended warranty, dealer support services and R&M contracts. The increase in extended warranty, operating leases and other cost of $100.6 million reflects higher costs from dealer support services, extended warranty, R&M contracts, and lower used truck results.
Current wording
Extended warranties, operating leases and other increased revenues by $10.5 million, primarily due to higher dealer support services and higher volume of extended warranty contracts. The increase in cost of sales by $4.3 million reflects higher costs from extended warranty.
Previous wording
The currency translation effect on sales and cost of sales primarily reflects a decline in the value of the Brazilian real and Canadian dollar relative to the U.S. dollar, partially offset by the increase in the value of the euro relative to the U.S. dollar.
Current wording
The currency translation effect on sales and cost of sales primarily reflects a decline in the value of the Brazilian real, euro and Canadian dollar relative to the U.S. dollar.
Previous wording
Truck gross margin was 13.0% in the third quarter of 2024 compared to 16.8% in the same period of 2023 due to the factors noted above.
Current wording
Truck gross margin was 9.7% in the first quarter of 2025 compared to 15.6% in the same period of 2024 due to the factors noted above.
Previous wording
Truck selling, general and administrative (SG&A) expense decreased in the third quarter of 2024 to $61.9 million from $71.5 million in 2023, primarily due to lower salaries and related expenses and professional expenses. For the first nine months of 2024, Truck SG&A decreased to $183.3 million from $206.6 million in 2023, primarily due to lower professional expenses.
Current wording
Truck SG&A expenses in the first quarter of 2025 decreased to $57.3 million from $61.7 million in the first quarter of 2024, primarily due to lower salaries and related expenses and professional fees, partially offset by higher sales and marketing expenses.
Previous wording
As a percentage of sales, Truck SG&A was 1.0% for both the third quarter and first nine months of 2024, compared to 1.1% and 1.0% in the third quarter and first nine months of 2023, respectively.
Current wording
As a percentage of sales, Truck SG&A was 1.1% for the first quarter of 2025 compared to .9% in the first quarter of 2024.
Previous wording
The Company’s Parts segment accounted for 20% of revenues in the third quarter and first nine months of 2024, compared to 19% for both the third quarter and first nine months of 2023.
Current wording
The Company’s Parts segment accounted for 23% of revenues in the first quarter 2025 compared to 19% for the first quarter of 2024.
Previous wording
The Company’s worldwide parts net sales and revenues for the third quarter increased to $1.66 billion in 2024 from $1.58 billion in 2023. For the first nine months, worldwide parts net sales and revenues increased to $5.00 billion in 2024 from $4.80 billion in 2023. The increase in both periods was primarily due to higher sales in all markets.
Current wording
The Company’s worldwide parts net sales and revenues for the first quarter increased to $1.69 billion in 2025 from $1.68 billion in 2024. The increase was primarily due to higher sales in the U.S. and Canada.
Previous wording
Average aftermarket parts sales prices increased sales by $133.2 million, primarily due to price realization in Europe and the U.S. and Canada.
Current wording
Average aftermarket parts sales prices increased sales by $54.2 million, primarily due to price realization in the U.S. and Canada.
Previous wording
Average aftermarket parts direct costs increased $40.6 million due to higher material costs, primarily in the U.S. and Canada and Europe.
Current wording
Average aftermarket parts direct costs increased $50.7 million due to higher material costs, primarily in the U.S. and Canada.
Previous wording
The currency translation effect on sales and cost of sales primarily reflects a decline in the value of the Brazilian real, Canadian dollar and the Australian dollar relative to the U.S. dollar, partially offset by the increase in value of the euro relative to the U.S. dollar.
Current wording
The currency translation effect on sales and cost of sales primarily reflects a decline in the value of the euro, Brazilian real and Australian dollar relative to the U.S. dollar.
Previous wording
As a percentage of sales, Parts SG&A was 3.8% and 3.7% in the third quarter and first nine months of 2024, respectively, compared to 3.9% and 3.7% in the third quarter and first nine months of 2023, respectively.
Current wording
As a percentage of sales, Parts SG&A was 3.6% in the first quarter of 2025 compared to 3.7% in the first quarter of 2024.
Previous wording
The Company’s Financial Services segment accounted for 7% of revenues in the third quarter and 6% in the first nine months of 2024, compared to 5% in both the third quarter and first nine months of 2023.
Current wording
The Company’s Financial Services segment accounted for 7% of revenues in the first quarter of 2025 compared to 6% in the first quarter of 2024.
Previous wording
In the third quarter of 2024, PFS finance market share of new PACCAR truck sales was 26.9% compared to 23.7% in the third quarter of 2023. In the first nine months of 2024, PFS finance market share of new PACCAR truck sales was 24.2% compared to 23.4% in the first nine months of 2023.
Current wording
In the first quarter of 2025, PFS finance market share of new PACCAR truck sales was 24.6% compared to 21.4% in the first quarter of 2024.
Previous wording
In the third quarter of 2024, PFS revenues increased to $536.1 million from $464.1 million in 2023. In the first nine months of 2024, PFS revenues increased to $1.56 billion from $1.33 billion in 2023. The increase in both periods was primarily driven by portfolio growth in all markets except Europe.
Current wording
In the first quarter of 2025, PFS revenues increased to $528.0 million from $509.3 million in 2024. The increase was primarily driven by portfolio growth in all markets except Europe. The effect of currency translation decreased PFS revenues by $30.3 million in the first quarter of 2025, primarily due to a decrease in the value of the Mexican peso and Brazilian real relative to the U.S. dollar.
Previous wording
PFS income before income taxes decreased to $106.5 million in the third quarter of 2024 from $133.8 million in the third quarter of 2023. In the first nine months of 2024, PFS income before income taxes decreased to $331.6 million from $427.3 million in 2023. The decrease in both periods was primarily due to lower operating lease margins, reflecting lower results on returned lease assets, partially offset by higher finance margins from a higher asset portfolio.
Current wording
PFS income before income taxes increased to $121.1 million in the first quarter of 2025 from $113.9 million in the first quarter of 2024. The increase was primarily due to higher finance margins from a higher loan and finance lease portfolio. The effect of currency translation decreased PFS income before income taxes by $10.2 million, primarily due to a decrease in the value of the Mexican peso and Brazilian real relative to the U.S. dollar.
Previous wording
Included in Financial Services, Other assets on the Company’s Consolidated Balance Sheets are used trucks held for sale, net of impairments, of $401.7 million at September 30, 2024 and $309.8 million at December 31, 2023. These trucks are primarily units returned from matured operating leases in the ordinary course of business, and also include trucks acquired from repossessions or through acquisitions of used trucks in trades related to new truck sales and trucks returned from residual value guarantees (RVGs).
Current wording
Included in Financial Services Other assets on the Company’s Consolidated Balance Sheets are used trucks held for sale, net of impairments, of $404.4 million at March 31, 2025 and $396.5 million at December 31, 2024. These trucks are primarily units returned from matured operating leases in the ordinary course of business, and also include trucks acquired from repossessions or through acquisitions of used trucks in trades related to new truck sales and trucks returned from residual value guarantees (RVGs).
Previous wording
The Company recognized losses on used trucks, excluding repossessions, of $13.0 million in the third quarter of 2024 compared to gains of $4.3 million in the third quarter of 2023, including $9.7 million of losses on multiple unit transactions in the third quarter of 2024 compared to $3.2 million in the third quarter of 2023. Used truck losses related to repossessions, which are recognized as credit losses, were $2.0 million for the third quarter of 2024 and not significant for the third quarter of 2023.
Current wording
The Company recognized losses on used trucks, excluding repossessions, of $11.1 million in the first quarter of 2025 compared to $10.9 million in the first quarter of 2024, including $12.0 million of losses on multiple unit transactions in the first quarter of 2025 compared to $10.6 million in the first quarter of 2024. Used truck losses related to repossessions, which are recognized as credit losses, were $3.3 million for the first quarter of 2025 and $4.2 million for the first quarter of 2024.
Previous wording
Average finance receivables increased $2.86 billion (excluding foreign exchange effects), increasing interest and fees by $53.8 million in the third quarter of 2024, primarily due to higher average loan, finance lease and dealer wholesale balances.
Current wording
Average finance receivables increased $2.59 billion (excluding foreign exchange effects), increasing interest and fees by $48.4 million in the first quarter of 2025, primarily due to higher average loan, finance lease and dealer wholesale balances in North America.
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Rearranged previous paragraphs (13)
Previous report — wording carried elsewhere
Worldwide net sales and revenues were $25.76 billion in 2024 compared to $26.05 billion in 2023, primarily due to lower truck revenues, partially offset by higher parts and financial services revenues.
Previous report — wording carried elsewhere
Research and development (R&D) expenses were $337.6 million in 2024 compared to $302.0 million in 2023.
Previous report — wording carried elsewhere
Extended warranties, operating leases and other increased revenues by $17.7 million primarily due to higher volume of extended warranty and R&M contracts. The increase in extended warranty, operating leases and other cost of $33.1 million reflects higher costs from extended warranty, R&M contracts, and lower used truck results.
Previous report — wording carried elsewhere
The major factors for the Truck segment changes in net sales and revenues, cost of sales and revenues and gross margin between the nine months ended September 30, 2024 and 2023 are as follows:
Previous report — wording carried elsewhere
Average aftermarket parts sales prices increased sales by $45.4 million, primarily due to price realization in Europe.
Previous report — wording carried elsewhere
The major factors for the changes in Parts segment net sales and revenues, cost of sales and revenues and gross margin between the nine months ended September 30, 2024 and 2023 are as follows:
Previous report — wording carried elsewhere
Average aftermarket parts direct costs increased $116.7 million due to higher material costs, primarily in the U.S. and Europe.
Previous report — wording carried elsewhere
The major factors for the changes in interest and fees, interest and other borrowing expenses and finance margin for the nine months ended September 30, 2024 and 2023 are outlined below:
Previous report — wording carried elsewhere
Average finance receivables increased $2.99 billion (excluding foreign exchange effects), increasing interest and fees by $163.8 million in the first nine months of 2024, primarily due to higher average loan, finance lease and dealer wholesale balances.
Previous report — wording carried elsewhere
Average debt balances increased $2.35 billion (excluding foreign exchange effects), increasing interest and other borrowing expenses by $83.5 million in the first nine months of 2024, reflecting higher funding requirements for the portfolio from growth in loans, finance leases and dealer wholesale receivables.
Previous report — wording carried elsewhere
The major factors for the changes in operating lease, rental and other revenues, depreciation and other expenses and lease margin between the nine months ended September 30, 2024 and 2023 are outlined below:
Previous report — wording carried elsewhere
Average operating lease assets decreased $398.1 million (excluding foreign exchange effects), which decreased revenues by $118.9 million and related depreciation and other expenses by $107.5 million.
Previous report — wording carried elsewhere
Revenue per asset increased $56.0 million primarily due to higher average truck values financed. Cost per asset increased $79.9 million due to higher depreciation and operating expenses, mainly in Europe.