PACCAR INC
For the period ended Jun 30, 2025. Filed Jul 31, 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.
Jun 30, 2025 · Filed Jul 31, 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 2025-03-31; filed 2025-05-01.
0000950170-25-061813
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-31.
0000950170-25-100887
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 131 previous paragraphs and 167 current paragraphs.
44 unchanged; 78 reworded; 26 added; 9 removed; 0 previous and 19 current paragraphs rearranged.
Tables are not compared: 18 previous and 23 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 (26)
Current report
Second Quarter Financial Highlights:
Current report
Net income was $723.8 million ($1.37 per diluted share) in 2025 compared to $1.12 billion ($2.13 per diluted share) in 2024.
Current report
Capital investments were $221.1 million in 2025 compared to $219.6 million in 2024.
Current report
First Six Months Financial Highlights:
Current report
Truck sales were $10.47 billion in 2025, compared to $13.12 billion in 2024, due to lower truck deliveries in all major markets.
Current report
Parts sales were $3.41 billion in 2025 compared to $3.34 billion in 2024, reflecting higher sales in the U.S. and Canada.
Current report
Financial Services revenues were $1.08 billion in 2025 compared to $1.02 billion in 2024, primarily due to higher interest income driven by portfolio growth and higher portfolio yields.
Current report
Capital investments were $393.0 million in 2025 compared to $383.9 million in 2024.
Current report
The Company’s worldwide truck net sales and revenues in the second quarter decreased to $5.24 billion in 2025 from $6.58 billion in 2024. Revenues for the first six months decreased to $10.47 billion in 2025 from $13.12 billion in 2024. The decrease in both periods was primarily due to lower truck unit deliveries in all major markets from lower retail demand reflecting economic conditions as well as higher tariff costs resulting from current trade policies primarily in the U.S.
Current report
Truck sales volume decreased revenues by $1.25 billion and costs by $1.06 billion, primarily reflecting lower truck deliveries in all major markets.
Current report
Average truck costs increased $216.6 million, primarily reflecting higher mix of trucks with higher content, product support accruals and higher tariff costs in the U.S.
Current report
Extended warranties, operating leases and other increased revenues by $24.9 million, primarily due to higher volume of extended warranty and R&M contracts. The increase in extended warranty, operating leases and other cost of $49.1 million reflects higher used truck costs, primarily in Europe, and higher costs from extended warranty and R&M contracts.
Current report
Truck sales volume decreased revenues by $2.37 billion and costs by $1.97 billion, primarily reflecting lower truck deliveries in all major markets.
Current report
Truck gross margin was 9.2% in the first six months of 2025 compared to 15.3% in the same period of 2024 due to the factors noted above.
Current report
Average aftermarket parts sales prices increased sales by $60.4 million, primarily due to price realization in all markets as well as tariff cost increases in the U.S. and Canada.
Current 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.
Current report
Parts gross margins in the second quarter of 2025 decreased to 30.0% from 30.3% in the second quarter of 2024 due to the factors noted above.
Current report
The currency translation effect on sales reflects a decline in the value of the Brazilian real, Australian dollar and Canadian dollar relative to the U.S. dollar, primarily offset by an increase in the value of the euro relative to the U.S. dollar.
Current report
Parts gross margins in the first six months of 2025 decreased to 30.3% from 31.4% in the first six months of 2024 due to the factors noted above.
Current report
Parts SG&A expense increased in the second quarter of 2025 to $64.6 million from $62.6 million in the same period of 2024, mainly due to unfavorable currency translation effect, primarily the euro. For the first six months, Parts SG&A increased to $125.5 million in 2025 from $123.9 million in the same period of 2024, primarily due to higher salaries and related expenses, partially offset by lower travel and entertainment expenses.
Current report
The Company recognized losses on used trucks, excluding repossessions, of $18.6 million in the first six months of 2025 and $24.5 million in the first six months of 2024, including losses on multiple unit transactions of $21.0 million in the first six months of 2025 compared to $18.0 million in the first six months of 2024. Used truck losses related to repossessions, which are recognized as credit losses, were $6.6 million for the first six months of 2025 and $6.0 million first six months of 2024.
Current report
Higher borrowing rates (5.1% in 2025 compared to 4.7% in 2024) increased interest and other borrowing expenses by $30.9 million and were primarily due to higher debt market rates in all markets except Canada.
Current report
The currency translation effects reflect an increase in the value of foreign currencies relative to the U.S. dollar, primarily the euro.
Current report
Used truck sales from used truck received on trade increased revenues by $2.3 million and related depreciation and other expenses by $.9 million, primarily reflecting improved used truck market prices.
Current report
Financial Services SG&A for the second quarter of 2025 decreased to $40.1 million from $40.8 million in the second quarter of 2024. For the first six months, Financial Services SG&A decreased to $78.4 million in 2025 from $79.8 million in 2024. The decrease in both periods was primarily due to lower professional fees and travel and entertainment expenses partially offset by higher salaries and related expenses.
Current report
On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was enacted in the U.S. The most significant impacts to the Company of the OBBBA are the immediate expensing of domestic Research and Development expenditures and the permanent reinstatement of bonus depreciation for qualifying properties. The Company expects the impact will defer the payment of a significant portion of current federal income taxes and will have an immaterial impact to the Company's Consolidated Statements of Comprehensive Income.
Removed paragraphs (9)
Previous report
First Quarter Financial Highlights:
Previous report
Capital investments were $171.9 million in 2025 compared to $164.3 million in 2024.
Previous 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.
Previous report
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 report
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 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.
Previous 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.
Previous report
The currency translation effects reflect a decrease in the value of foreign currencies relative to the U.S. dollar, primarily the Mexican peso and the euro.
Previous 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.
Reworded paragraphs (78)
Previous 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.
Current wording
Worldwide net sales and revenues were $7.51 billion in 2025 compared to $8.77 billion in 2024, primarily due to lower truck revenues, partially offset by higher parts and financial services revenues.
Previous wording
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 wording
Truck sales were $5.24 billion in 2025 compared to $6.58 billion in 2024, due to lower truck deliveries in all major markets.
Previous 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.
Current wording
Parts sales were $1.72 billion in 2025 compared to $1.66 billion in 2024, reflecting higher sales in the U.S. and Canada.
Previous 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.
Current wording
Financial Services revenues were $547.7 million in 2025 compared to $509.8 million in 2024, primarily due to higher interest income driven by portfolio growth and higher portfolio yields.
Previous wording
Research and development (R&D) expenses were $115.4 million in 2025 compared to $105.5 million in 2024.
Current wording
Research and development (R&D) expenses were $112.9 million in 2025 compared to $117.1 million in 2024.
Previous 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.
Current wording
Net income was $1.23 billion ($2.33 per diluted share) in 2025 compared to $2.32 billion ($4.40 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 $1.49 billion ($2.83 per diluted share). See Reconciliation of GAAP to Non-GAAP Financial Measures on page 53.
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 $22.75 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.
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 $23.31 billion. PFS issued $1.84 billion in medium-term notes during the first six months of 2025 to support new business volume and market share growth and repay maturing debt.
Previous 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.
Current wording
Truck industry heavy-duty retail sales in the U.S. and Canada in 2025 are expected to be 230,000 to 260,000 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 90,000 to 100,000 units compared to 119,000 in 2024.
Previous wording
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 wording
The Company has been affected by the import tariffs imposed by the U.S. government since March 2025 and actions taken by other countries. The ongoing 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 likely weaken and truck industry retail sales would likely decline.
Previous 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.
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 ongoing tariff uncertainty.
Previous 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.
Current wording
In 2025, average earning assets are expected to increase 4-6% compared to 2024. The used truck market has been improving, 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.
Previous 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.
Current wording
Capital investments in 2025 are expected to be $750 to $800 million and R&D is expected to be $450 to $480 million. PACCAR is investing in next generation clean diesel and alternative powertrains, integrated connected vehicle services, expanded manufacturing capabilities, and advanced driver assistance systems that create value for customers. In addition to the capital and R&D investments, the company plans to invest a total project amount of $600 to $900 million in its battery joint venture, Amplify Cell Technologies.
Previous wording
The Company’s results of operations for the three months ended March 31, 2025 and 2024 are presented below.
Current wording
The Company’s results of operations for the three and six months ended June 30, 2025 and 2024 are presented below.
Previous wording
In 2025, Other includes a $350.0 million charge related to civil litigation in Europe (EC-related claims).
Current wording
In 2025, Other includes a $350.0 million charge related to civil litigation in Europe (EC-related claims) in the first quarter 2025.
Previous 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.
Current wording
The Company’s Truck segment accounted for 70% of revenues in both the second quarter and first six months of 2025, compared to 75% in both the second quarter and first six months of 2024.
Previous 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.
Current wording
Worldwide new truck deliveries decreased in the second quarter and first six months of 2025 compared to the same periods of 2024, reflecting lower deliveries in all major markets from lower retail demand.
Previous 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.
Current wording
In the first six months of 2025, industry retail sales in the heavy-duty market in the U.S. and Canada were 120,800 units compared to 127,600 units in the same period of 2024. The Company’s heavy-duty truck retail market share was 30.4% in the first six months of 2025 compared to 31.5% in the first six months of 2024. The medium-duty market was 49,600 units in the first six months of 2025 compared to 52,300 units in the same period of 2024. The Company’s medium-duty market share was 15.3% in the first six months of 2025 compared to 17.3% in the first six months of 2024.
Previous 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.
Current wording
The over 16‑tonne truck market in Europe in the first six months of 2025 was 151,100 units compared to 174,800 units in the first six months of 2024. DAF over 16‑tonne market share was 14.2% in the first six months of 2025 compared to 13.7% in the same period of 2024. The 6 to 16‑tonne market in the first six months of 2025 was 19,900 units compared to 27,700 units in the same period of 2024. DAF market share in the 6 to 16-tonne market in the first six months of 2025 was 9.9% compared to 8.4% in the same period of 2024.
Previous 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.
Current wording
The over 16-tonne truck market in Brasil in the first six months of 2025 was 41,700 units compared to 44,600 units in the same period of 2024. DAF Brasil market share for the first six months of 2025 was 9.4% compared to 10.3% in the same period in 2024.
Previous 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.
Current wording
In the second quarter and first six months of 2025, Truck segment income before taxes and pre-tax return on revenues decreased primarily due to lower truck unit deliveries and lower price realization.
Previous 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.
Current wording
Factory overhead and other indirect costs decreased $55.3 million, primarily due to lower labor costs, maintenance costs and factory supplies from lower truck build rates.
Previous 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.
Current wording
The currency translation effect on sales and cost of sales primarily reflects an increase in the value of the euro relative to the U.S. dollar, partially offset by the decline in the value of the Brazilian real, Australian dollar and Canadian dollar relative to the U.S. dollar.
Previous 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.
Current wording
Truck gross margin was 8.7% in the second quarter of 2025 compared to 15.0% in the same period of 2024 due to the factors noted above.
Previous wording
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 wording
Average truck sales prices decreased by $268.5 million, primarily due to lower price realization in the U.S. and Canada and Europe, reflecting an increased competitive environment in all markets.
Previous wording
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 wording
Average truck costs increased by $438.4 million, primarily reflecting higher mix of trucks with higher content, increased tariff costs and product support accruals.
Previous 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.
Current wording
Extended warranties, operating leases and other increased revenues by $35.4 million due to higher volume of extended warranty and R&M contracts and higher dealer support services. The increase in extended warranty, operating leases and other cost of $53.4 million reflects higher used truck costs, primarily in Europe, higher dealer support services and higher volume of extended warranty contracts.
Previous 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.
Current 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.
Previous 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.
Current wording
Truck SG&A expenses decreased in the second quarter of 2025 to $54.7 million from $59.7 million in the same period of 2024. For the first six months of 2025, Truck SG&A decreased to $112.0 million from $121.4 million in the same period of 2024. The decrease in both periods was primarily due to lower salaries and related expenses, lower professional fees and lower travel and entertainments expenses, partially offset by higher sales and marketing expenses. As a percentage of sales, Truck SG&A was 1.0% and 1.1% for the second quarter and first six months of 2025, respectively, compared to .9% for both second quarter and first six months of 2024.
Previous 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.
Current wording
The Company’s Parts segment accounted for 23% of revenues in both the second quarter and first six months of 2025, compared to 19% for both the second quarter and first six months of 2024.
Previous 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.
Current wording
The Company’s worldwide parts net sales and revenues for the second quarter increased to $1.72 billion in 2025 from $1.66 billion in 2024. For the first six months, worldwide parts net sales and revenues increased to $3.41 billion in 2025 from $3.34 billion in 2024. The increase in both periods was primarily due to higher sales in the U.S. and Canada.
Previous wording
Average aftermarket parts direct costs increased $50.7 million due to higher material costs, primarily in the U.S. and Canada.
Current wording
Average aftermarket parts direct costs increased $31.8 million due to higher material costs, primarily in the U.S. and Canada.
Previous wording
Warehouse and other indirect costs increased $11.0 million, primarily due to higher indirect costs including depreciation expense.
Current wording
Warehouse and other indirect costs increased $11.3 million, primarily due to higher indirect costs, including depreciation expense.
Previous wording
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 wording
Aftermarket parts sales volume decreased by $41.7 million and related cost of sales decreased by $16.0 million. The decrease in parts sales and costs primarily reflects lower sales volume in Europe, Mexico and Brasil, partially offset by higher sales volume in the U.S. and Canada.
Previous wording
Average aftermarket parts sales prices increased sales by $54.2 million, primarily due to price realization in the U.S. and Canada.
Current wording
Average aftermarket parts sales prices increased sales by $114.6 million, primarily due to price realization in the U.S. and Canada.
Previous 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.
Current wording
As a percentage of sales, Parts SG&A was 3.8% for both the second quarter of 2025 and 2024, and 3.7% for both the first six months of 2025 and 2024.
Previous 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.
Current wording
The Company’s Financial Services segment accounted for 7% of revenues in both the second quarter and first six months of 2025, compared to 6% in both the second quarter and first six months of 2024.
Previous wording
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 wording
New loan and lease volume was $1.85 billion in the second quarter of 2025 compared to $1.92 billion in the second quarter of 2024, and for the first six months of 2025 was $3.36 billion compared to $3.44 billion in the same period in 2024. The decrease in both periods was primarily due to lower new loan and lease volume in the U.S and Canada from lower retail sales of PACCAR trucks and lower currency translation effects, mostly offset by higher finance market shares of new PACCAR truck sales. 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.
Previous 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.
Current wording
In the second quarter of 2025, PFS finance market share of new PACCAR truck sales was 26.2% compared to 24.2% in the second quarter of 2024. In the first six months of 2025, PFS finance market share of new PACCAR truck sales was 25.5% compared to 22.8% in the first six months of 2024. The increase in the second quarter of 2025 reflects higher share in all markets except the U.S. The increase in the first six months of 2025 reflects higher share in all markets.
Previous 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.
Current wording
In the second quarter of 2025, PFS revenues increased to $547.7 million from $509.8 million in the same period of 2024. In the first six months of 2025, PFS revenues increased to $1.08 billion from $1.02 billion in the same period of 2024. The increase in both periods was primarily driven by portfolio growth in all markets except Europe.
Previous 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.
Current wording
PFS income before income taxes increased to $123.2 million in the second quarter of 2025 from $111.2 million in the same period of 2024. In the first six months of 2025, PFS income before income taxes increased to $244.3 million from $225.1 million in the same period of 2024. The increase in both periods 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 $6.6 million and $16.7 million in the second quarter and first six months of 2025, respectively, primarily due to a decrease in the value of the Mexican peso and Brazilian real relative to the U.S. dollar.
Showing the first 40 of 78 pairs. Open the source sections for the rest.
Rearranged current paragraphs (19)
Current report — wording carried from elsewhere
Worldwide net sales and revenues were $14.95 billion in 2025 compared to $17.52 billion in 2024, primarily due to lower truck revenues, partially offset by higher parts and financial services revenues.
Current report — wording carried from elsewhere
Research and development (R&D) expenses were $228.3 million in 2025 compared to $222.6 million in 2024.
Current report — wording carried from elsewhere
Average truck sales prices decreased $153.8 million, primarily due to lower price realization, reflecting an increased competitive environment in all markets, partially offset by tariff price increases in the U.S.
Current report — wording carried from elsewhere
The major factors for the Truck segment changes in net sales and revenues, cost of sales and revenues and gross margin between the six months ended June 30, 2025 and 2024 are as follows:
Current report — wording carried from elsewhere
Factory overhead and other indirect costs decreased $99.6 million, primarily due to lower labor costs, maintenance costs and factory supplies from lower truck build rates.
Current report — wording carried from elsewhere
Aftermarket parts sales volume decreased by $19.3 million and related cost of sales decreased by $6.7 million. The decrease in parts sales and costs primarily reflects lower sales volume in most markets, primarily Europe and Mexico.
Current report — wording carried from elsewhere
The major factors for the changes in Parts segment net sales and revenues, cost of sales and revenues and gross margin between the six months ended June 30, 2025 and 2024 are as follows:
Current report — wording carried from elsewhere
Average aftermarket parts direct costs increased $82.5 million due to higher material costs, primarily in the U.S. and Canada.
Current report — wording carried from elsewhere
Warehouse and other indirect costs increased $22.3 million, primarily due to higher indirect costs, including depreciation expense.
Current report — wording carried from elsewhere
The major factors for the changes in interest and fees, interest and other borrowing expenses and finance margin for the six months ended June 30, 2025 and 2024 are outlined below:
Current report — wording carried from elsewhere
Average finance receivables increased $2.36 billion (excluding foreign exchange effects), increasing interest and fees by $88.1 million in the first six months of 2025, higher average loan, finance lease and dealer wholesale balances in North America and Brasil.
Current report — wording carried from elsewhere
Average debt balances increased $1.54 billion (excluding foreign exchange effects), increasing interest and other borrowing expenses by $42.7 million in the first six months of 2025, reflecting higher funding requirements for the portfolio from growth in loans, finance leases and dealer wholesale receivables.
Current report — wording carried from elsewhere
Higher portfolio yields (7.4% in 2025 compared to 7.3% in 2024) increased interest and fees by $20.6 million. The higher portfolio yields were primarily due to higher market rates on new portfolio assets, primarily in the U.S. and Brasil.
Current report — wording carried from elsewhere
The currency translation effects reflect a decrease in the value of foreign currencies relative to the U.S. dollar, primarily the Mexican peso and Brazilian real.
Current report — wording carried from elsewhere
The major factors for the changes in operating lease, rental and other revenues, depreciation and other expenses and lease margin between the six months ended June 30, 2025 and 2024 are outlined below:
Current report — wording carried from elsewhere
Results on returned lease assets decreased depreciation and other expenses by $4.4 million.
Current report — wording carried from elsewhere
Average operating lease assets decreased $241.9 million (excluding foreign exchange effects), which decreased revenues by $55.3 million and related depreciation and other expenses by $46.1 million.
Current report — wording carried from elsewhere
Revenue per asset increased $39.0 million primarily due to higher average truck values financed. Cost per asset increased $14.4 million due to higher depreciation and operating expenses, mainly in Europe and Mexico.
Current report — wording carried from elsewhere
The currency translation effects reflect a decrease in the value of foreign currencies relative to the U.S. dollar, primarily the Mexican peso.