PACCAR INC
For the period ended Mar 31, 2026. Filed Apr 29, 2026.
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, 2026 · Filed Apr 29, 2026
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 2025-09-30; filed 2025-10-30.
0001193125-25-258509
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-04-29.
0001193125-26-191499
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 168 previous paragraphs and 135 current paragraphs.
39 unchanged; 73 reworded; 22 added; 44 removed; 12 previous and 1 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 (22)
Current report
First Quarter Financial Highlights:
Current report
Parts sales were $1.71 billion in 2026 compared to $1.69 billion in 2025.
Current report
Financial Services revenues were $542.2 million in 2026 compared to $528.0 million in 2025.
Current report
Capital investments were $135.5 million in 2026 compared to $171.9 million in 2025.
Current report
Kenworth recently unveiled the new Kenworth C580 truck in the heavy-duty vocational segment. The C580 is designed to meet the most demanding vocational applications, such as mining and off-highway petroleum field work. DAF Trucks expanded its range of battery-electric trucks to include multiple axle tractor and rigid models for specific vocational applications such as construction. The new chassis models are available for the XD and XF Electric, which recently won the International Truck of the Year 2026, and for the larger XG and XG+ Electric, which feature the most spacious cabs in the European truck market.
Current report
The Company has taken mitigating actions to reduce the impact from import tariffs on truck order intake. The Company's North American truck factories are optimally located to operate under the new Section 232 truck tariffs that began in November 2025. The Company’s tariff exposure is minimized by producing trucks locally for the United States, Canada and Mexico. The Company manufactures its trucks for U.S. customers in its Ohio, Texas, and Washington state factories. Further on February 20, 2026, the United States Supreme Court issued a decision invalidating tariffs imposed under the International Emergency Economic Powers Act (IEEPA). This decision may provide tariff relief and the potential recovery of amounts previously paid.
Current report
The U.S. Environmental Protection Agency announcement reaffirmed the EPA27 NOx limit. It could make
Current report
changes to extended warranty requirements, useful life requirements or other modifications to new emissions systems.
Current report
The Company's results could be impacted by further changes in tariff policy, geopolitical uncertainty, emissions regulations and improving freight fundamentals.
Current report
In addition to the capital and R&D investments, the Company expects to continue investing in its U.S.-based battery joint venture, Amplify Cell Technologies. During the first quarter, expectations on electric vehicle demand in the commercial vehicle market continued to change. As a result, the Company and its joint venture partners agreed to finish building out the facility, and adjust the timing for installing the manufacturing capacity. As a result of these changes the production start date will be extended. See discussion in Note A.
Current report
The Company’s worldwide truck net sales and revenues in the first quarter decreased to $4.53 billion in 2026 from $5.23 billion in 2025, primarily due to lower unit truck deliveries from lower retail demand.
Current report
Average cost per truck increased cost of sales by $162.3 million, primarily reflecting higher truck content, tariff and labor costs, partially offset by lower product support cost.
Current report
Truck SG&A expenses in the first quarter of 2026 increased to $61.4 million from $57.3 million in the first quarter of 2025, primarily due to higher sales and marketing expenses and higher currency translation effects, partially offset by lower salaries and related expenses and lower professional fees.
Current report
The Company’s worldwide parts net sales and revenues for the first quarter increased to $1.71 billion in 2026 from $1.69 billion in 2025. The decrease in the U.S. and Canada mainly reflects a softer retail market. The increase in Europe primarily reflects an increase in the value of the euro relative to the U.S. dollar.
Current report
Parts gross margin was 29.6% in the first quarter of 2026 compared to 30.7% in the first quarter of 2025 due to the factors noted above.
Current report
In the first quarter of 2026, PFS revenues slightly increased to $542.2 million from $528.0 million in the first quarter of 2025. The increase was primarily due to a currency translation effect and higher average retail loan and finance lease portfolio, mostly offset by a lower dealer wholesale portfolio. The effects of currency translation increased PFS revenues by $34.6 million, primarily due to an increase in the value of the euro, Mexican peso and Brazilian real relative to the U.S. dollar.
Current report
PFS income before income taxes decreased to $115.5 million in the first quarter of 2026 from $121.1 million in the first quarter of 2025. The decrease was primarily due to higher provision for losses, partially offset by favorable currency effects. The effects of currency translation increased PFS income before income taxes by $7.8 million, primarily from an increase in the value of the Mexican peso relative to the U.S. dollar.
Current report
Average finance receivables decreased $301.7 million (excluding foreign exchange effects), decreasing interest and fees by $5.4 million, primarily due to lower dealer wholesale balances.
Current report
Average debt balances decreased $1.10 billion (excluding foreign exchange effects), decreasing interest and other borrowing costs by $13.0 million, reflecting lower funding requirements from a decrease in dealer wholesale receivables.
Current report
Financial Services SG&A for the first quarter of 2026 increased to $39.7 million from $38.3 million in the first quarter of 2025, primarily reflecting an increase in the value of the euro and Mexican peso relative to the U.S. dollar, partially offset by lower salaries and related expenses.
Current report
The provision for losses on receivables was $44.1 million in the first quarter of 2026 compared to $18.3 million in the first quarter of 2025, primarily due to a higher provision in Brasil and the U.S., reflecting an increase in 30+ days past due accounts. Net charge-offs increased to $43.1 million in the first quarter of 2026 from $21.0 million in the same period of 2025. Higher net charge-offs in Brasil reflected a decline in market conditions, including elevated interest rates. The increased charge-offs in the U.S. and Canada were driven by soft freight market conditions and included one large fleet customer, which was provisioned for previously.
Current report
The effective tax rate for the first quarter of 2026 was 22.0% compared to 21.5% for the first quarter of 2025. Included in 2025 was the EC-related charge of $350.0 million, which lowered the effective tax rate.
Removed paragraphs (44)
Previous report
Third Quarter Financial Highlights:
Previous report
Truck sales were $4.38 billion in 2025 compared to $6.03 billion in 2024, due to lower truck deliveries, primarily in the U.S. and Canada and Mexico.
Previous report
Parts sales were $1.72 billion in 2025 compared to $1.66 billion in 2024, reflecting higher sales in the U.S. and Canada and Europe.
Previous report
Financial Services revenues were $565.3 million in 2025 compared to $536.1 million in 2024, primarily due to higher interest income driven by retail portfolio growth and higher portfolio yields.
Previous report
Net income was $590.0 million ($1.12 per diluted share) in 2025 compared to $972.1 million ($1.85 per diluted share) in 2024.
Previous report
Capital investments were $156.0 million in 2025 compared to $183.8 million in 2024.
Previous report
First Nine Months Financial Highlights:
Previous report
Parts sales were $5.14 billion in 2025 compared to $5.00 billion in 2024, reflecting higher sales in the U.S. and Canada.
Previous report
Financial Services revenues were $1.64 billion in 2025 compared to $1.56 billion in 2024, primarily due to higher interest income driven by retail portfolio growth and higher portfolio yields.
Previous report
Capital investments were $549.0 million in 2025 compared to $567.7 million in 2024.
Previous report
PACCAR is finalizing construction of a new $92 million, 46,000 square-foot chassis frame painting facility which will increase capacity with robotic paint capabilities in Chillicothe, Ohio, to be opened in early 2026. PACCAR is also finalizing construction of a new $35 million, 50,000 square-foot engine remanufacturing facility in Columbus, Mississippi, to be opened in 2026. PACCAR will open a new 180,000 square-foot Parts Distribution Center (PDC) in Calgary, Canada, in 2026, to expedite parts delivery to dealers and customers in the region. In the third quarter 2025, Kenworth launched the T880S high horsepower vocational truck for heavy-haul, logging, and other high horsepower applications, featuring a set-forward front axle configuration to optimize weight distribution and bridge law compliance.
Previous report
The Company's truck and parts products have been negatively affected since March 2025 by import tariffs imposed by the U.S. government and actions taken by other countries. While the Company has taken mitigating actions to reduce the impact, the ongoing impact from import tariffs on truck order intake and profit margins remains unfavorable. The recently announced clarification of the Section 232 tariffs on medium- and heavy-duty trucks, which imposes a 25% tariff on imported trucks, is positive for the Company. The Company manufactures over 90% of its trucks for U.S. customers in its Ohio, Texas, and Washington State factories. As tariff policy, including the expected U.S. Supreme Court ruling on the International Emergency Economic Power Acts (IEEPA) tariffs, brings clarity to the market in the coming months, the impact could benefit the Company.
Previous report
** See Reconciliation of GAAP to Non-GAAP Financial Measures for 2025 on page 52.
Previous report
The Company’s worldwide truck net sales and revenues in the third quarter decreased to $4.38 billion in 2025 from $6.03 billion in 2024. Revenues for the first nine months decreased to $14.85 billion in 2025 from $19.15 billion in 2024. The decrease in both periods was primarily due to lower truck unit deliveries in most 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.
Previous report
Truck sales volume decreased revenues by $1.64 billion and costs by $1.39 billion, primarily reflecting lower truck deliveries in the U.S. and Canada and Mexico, partially offset by higher deliveries in Europe.
Previous report
Average truck sales prices decreased $78.3 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.
Previous report
Average truck costs increased $243.4 million, primarily reflecting higher tariff costs in the U.S. and higher regulatory and other truck content, partially offset by a higher mix of fleet trucks and lower product support cost.
Previous report
Factory overhead and other indirect costs decreased $58.1 million, primarily due to lower labor costs, repair and maintenance costs and factory supplies from lower truck build rates.
Previous report
Average truck sales prices decreased by $346.8 million, primarily due to lower price realization in the U.S. and Canada and Europe, reflecting an increased competitive environment, partially offset by tariff price increases in the U.S.
Previous report
Average truck costs increased by $681.8 million, primarily reflecting higher regulatory and other truck content, increased tariff costs and product support accruals.
Previous report
Extended warranties, operating leases and other increased revenues by $43.6 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 $77.5 million reflects higher volume of extended warranty contracts, higher used truck costs, primarily in Europe, and higher volume of R&M contracts.
Previous report
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 decrease in value of the Brazilian real, Canadian dollar and the Australian dollar relative to the U.S. dollar.
Previous report
Truck gross margin was 8.2% in the first nine months of 2025 compared to 14.6% in the same period of 2024 due to the factors noted above.
Previous report
The Company’s worldwide parts net sales and revenues for the third quarter increased to $1.72 billion in 2025 from $1.66 billion in 2024. For the first nine months, worldwide parts net sales and revenues increased to $5.14 billion in 2025 from $5.00 billion in 2024. The increase in both periods was primarily due to higher sales in the U.S. and Canada.
Previous report
Parts gross margins in the third quarter of 2025 decreased to 29.5% from 30.1% in the third quarter of 2024 due to the factors noted above.
Previous report
Aftermarket parts sales volume decreased by $83.8 million and related cost of sales decreased by $43.3 million. The decrease in parts sales and costs reflects lower sales volume in most markets, primarily Mexico, Europe and Brasil.
Previous report
The currency translation effect on sales reflects an increase in the value of euro relative to the U.S. dollar, partially offset by a decrease in the value of the Brazilian real, Australian dollar and Canadian dollar relative to the U.S. dollar.
Previous report
Parts gross margins in the first nine months of 2025 decreased to 30.0% from 31.0% in the first nine months of 2024 due to the factors noted above.
Previous report
In the third quarter of 2025, PFS revenues increased to $565.3 million from $536.1 million in the same period of 2024. In the first nine months of 2025, PFS revenues increased to $1.64 billion from $1.56 billion in the same period of 2024. The increase in both periods was primarily driven by portfolio growth in the U.S. and Canada, Mexico and Brasil.
Previous report
PFS income before income taxes increased to $126.2 million in the third quarter of 2025 from $106.5 million in the same period of 2024. In the first nine months of 2025, PFS income before income taxes increased to $370.5 million from $331.6 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, and higher lease margins from operating lease portfolio, partially offset by a higher provision for losses on receivables.
Previous report
The Company recognized losses on used trucks, excluding repossessions, of $26.6 million in the first nine months of 2025 and $37.5 million in the first nine months of 2024, including losses on multiple unit transactions of $28.2 million in the first nine months of 2025 compared to $27.7 million in the first nine months of 2024. Used truck losses related to repossessions, which are recognized as credit losses, were $8.5 million for the first nine months of 2025 and $8.0 million first nine months of 2024.
Previous report
Average finance receivables increased $1.22 billion (excluding foreign exchange effects), increasing interest and fees by $23.0 million in the third quarter of 2025, primarily due to higher average loan and finance lease balances in the U.S. and Canada, Brasil and Mexico.
Previous report
Average debt balances increased $472.2 million (excluding foreign exchange effects), increasing interest and other borrowing costs by $6.1 million in the third quarter of 2025, reflecting higher funding requirements for the portfolio from growth in loans and finance leases receivables.
Previous report
Average finance receivables increased $1.97 billion (excluding foreign exchange effects), increasing interest and fees by $111.1 million in the first nine months of 2025, reflecting higher average loan, finance lease and dealer wholesale balances in the U.S. and Canada, Brasil and Mexico.
Previous report
Average debt balances increased $1.18 billion (excluding foreign exchange effects), increasing interest and other borrowing expenses by $48.8 million in the first nine months of 2025, reflecting higher funding requirements for the portfolio from growth in loans, finance leases and dealer wholesale receivables.
Previous report
Higher borrowing rates (5.1% in 2025 compared to 4.7% in 2024) increased interest and other borrowing expenses by $35.4 million, primarily due to higher debt market rates in all markets except Canada.
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 Brazilian real.
Previous report
Used truck sales from used truck received on trade increased revenues by $2.7 million and related depreciation and other expenses by $1.0 million, primarily reflecting improved used truck market prices.
Previous report
Average operating lease assets decreased $233.9 million (excluding foreign exchange effects), which decreased revenues by $82.6 million and related depreciation and other expenses by $68.5 million.
Previous report
The currency translation effects reflect the changes in the value of foreign currencies relative to the U.S. dollar, primarily the Mexican peso and the euro.
Showing the first 40 of 44 passages. Open the source sections for the rest.
Reworded paragraphs (73)
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 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.
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.
Previous wording
Worldwide net sales and revenues were $6.67 billion in 2025 compared to $8.24 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 $6.78 billion in 2026 compared to $7.44 billion in 2025, primarily due to lower truck revenues, partially offset by higher parts and financial services revenues.
Previous wording
Truck sales were $14.85 billion in 2025, compared to $19.15 billion in 2024, due to lower truck deliveries in all major markets.
Current wording
Truck sales were $4.53 billion in 2026 compared to $5.23 billion in 2025, due to lower truck deliveries in all major markets except Europe.
Previous wording
Net income was $1.82 billion ($3.45 per diluted share) in 2025 compared to $3.29 billion ($6.25 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 $2.08 billion ($3.95 per diluted share). See Reconciliation of GAAP to Non-GAAP Financial Measures on page 52.
Current wording
Net income was $605.3 million ($1.15 per diluted share) in 2026 compared to $505.1 million ($.96 per diluted share) in 2025. 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 45.
Previous wording
Research and development (R&D) expenses were $111.0 million in 2025 compared to $115.0 million in 2024.
Current wording
Research and development (R&D) expenses were $109.1 million in 2026 compared to $115.4 million in 2025.
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 $23.02 billion. PFS issued $2.37 billion in medium-term notes during the first nine months of 2025 to support new business volume and market share growth 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 $22.35 billion. PFS issued $400.0 million in medium-term notes during the first three months of 2026 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 230,000 to 245,000 units compared to 268,100 in 2024. Estimates for the U.S. and Canada truck industry heavy-duty retail sales in 2026 are in the range of 230,000 to 270,000 units. In Europe, 2025 truck industry registrations for over 16-tonne vehicles are expected to be 275,000 to 295,000 units compared to 316,100 in 2024. The European truck registrations in the above 16-tonne truck market for 2026 are projected to be in a range of 270,000 to 300,000 units. In South America, heavy-duty truck industry registrations in 2025 are projected to be 95,000 to 105,000 units compared to 119,000 in 2024, and in a similar range for 2026.
Current wording
Truck industry heavy-duty retail sales in the U.S. and Canada in 2026 are expected to be 230,000 to 270,000 units compared to 232,800 in 2025. In Europe, the 2026 truck industry registrations for over 16-tonne vehicles are expected to be 280,000 to 320,000 units compared to 297,000 in 2025. In South America, heavy-duty truck industry registrations in 2026 are projected to be 100,000 to 110,000 units compared to 115,000 in 2025.
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 ongoing tariff uncertainty. In 2026, PACCAR Parts sales are expected to increase from 2025 levels, depending on the economic conditions.
Current wording
In 2026, PACCAR Parts sales are expected to increase 3-6% compared to 2025, depending on the economic conditions.
Previous wording
In 2025, average earning assets are expected to increase 5-6% 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. In 2026, average earning assets are expected to be comparable to 2025 levels.
Current wording
In 2026, average earning assets are expected to be comparable to 2025. The used truck market has begun improving. 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 and average earning assets would likely decline.
Previous wording
The Company’s results of operations for the three and nine months ended September 30, 2025 and 2024 are presented below.
Current wording
The Company’s results of operations for the three months ended March 31, 2026 and 2025 are presented below.
Previous wording
In 2025, Other includes a $350.0 million charge related to civil litigation in Europe (EC-related claims) in the first quarter 2025.
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 and impact from tariffs, 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, geopolitical events, freight tonnage and economic conditions affecting the Company’s results of operations.
Previous wording
The Company’s Truck segment accounted for 66% of revenues in the third quarter and 68% for the first nine months of 2025, compared to 73% in the third quarter and 74% for the first nine months of 2024.
Current wording
The Company’s Truck segment accounted for 67% of revenues in the first quarter of 2026 compared to 70% in the first quarter of 2025.
Previous wording
Worldwide new truck deliveries decreased in the third quarter compared to the same period of 2024, reflecting lower deliveries in the U.S. and Canada and Brasil, partially offset by higher deliveries in Europe. New truck deliveries also decreased for the first nine months of 2025 compared to the same period of 2024, reflecting lower retail demand in all major markets.
Current wording
Worldwide new truck deliveries decreased in the first quarter of 2026 compared to the same period of 2025, reflecting lower retail demand in all major markets except Europe.
Previous wording
In the first nine months of 2025, industry retail sales in the heavy-duty market in the U.S. and Canada were 180,300 units compared to 198,600 units in the same period of 2024. The Company’s heavy-duty truck retail market share was 30.3% in the first nine months of 2025 compared to 31.1% in the first nine months of 2024. The medium-duty market was 70,200 units in the first nine months of 2025 compared to 80,800 units in the same period of 2024. The Company’s medium-duty market share was 15.7% in the first nine months of 2025 compared to 17.2% in the first nine months of 2024.
Current wording
In the first three months of 2026, industry retail sales in the heavy-duty market in the U.S. and Canada was 44,900 units compared to 56,600 units in the same period of 2025. The Company’s heavy-duty truck retail market share was 29.4% in the first three months of 2026 compared to 29.1% in the first three months of 2025. The medium-duty market was 22,500 units in the first three months of 2026 compared to 26,000 units in the same period of 2025. The Company’s medium-duty market share was 12.8% in the first three months of 2026 compared to 14.5% in the first three months of 2025.
Previous wording
The over 16‑tonne truck market in Europe in the first nine months of 2025 was 218,300 units compared to 239,800 units in the first nine months of 2024. DAF over 16‑tonne market share was 13.6% in the first nine months of 2025 compared to 14.0% in the same period of 2024. The 6 to 16‑tonne market in the first nine months of 2025 was 29,700 units compared to 38,900 units in the same period of 2024. DAF market share in the 6 to 16-tonne market in the first nine months of 2025 was 9.7% compared to 9.1% in the same period of 2024.
Current wording
The over 16‑tonne truck market in Europe in the first three months of 2026 was 79,800 units compared to 72,000 units in the first three months of 2025. DAF over 16‑tonne market share was 13.1% in the first three months of 2026 compared to 14.0% in the same period of 2025. The 6 to 16‑tonne market in the first three months of 2026 was 8,800 units compared to 9,700 units in the same period of 2025. DAF market share in the 6 to 16-tonne market in the first three months of 2026 was 9.6% compared to 10.7% in the same period of 2025.
Previous wording
The over 16-tonne truck market in Brasil in the first nine months of 2025 was 63,900 units compared to 71,500 units in the same period of 2024. DAF Brasil market share for the first nine months of 2025 was 9.1% compared to 10.0% in the same period in 2024.
Current wording
The over 16-tonne truck market in Brasil in the first three months of 2026 was 16,900 units compared to 21,500 units in the same period of 2025. DAF Brasil market share for the first three months of 2026 was 9.2% compared to 9.6% in the same period in 2025.
Previous wording
In the third quarter and first nine months of 2025, Truck segment income before taxes and pre-tax return on revenues decreased primarily due to lower truck unit deliveries and progressively lower price realization.
Current wording
In the first quarter of 2026, Truck segment income before income taxes and pre-tax return on revenues decreased primarily due to lower truck unit deliveries from lower retail demand, reflecting economic conditions as well as higher tariff costs resulting from current trade policies, primarily in the U.S.
Previous wording
Truck sales volume decreased revenues by $4.01 billion and costs by $3.37 billion, primarily reflecting lower truck deliveries in all major markets.
Current wording
Truck sales volume decreased revenues by $972.0 million and costs by $826.6 million, primarily reflecting lower truck deliveries.
Previous wording
Average aftermarket parts sales prices increased sales by $91.0 million, primarily due to price realization in all major markets as well as tariff cost increases in the U.S.
Current wording
Average truck sales prices increased sales by $104.9 million, primarily due to higher price realization in the U.S. and Canada.
Previous wording
Factory overhead and other indirect costs decreased by $157.7 million, primarily due to lower labor costs, maintenance costs and factory supplies from lower truck build rates.
Current wording
Factory overhead and other indirect costs decreased $7.2 million, primarily due to lower overhead costs from lower truck build rates.
Previous wording
Extended warranties, operating leases and other increased revenues by $8.2 million, primarily due to higher volume of extended warranty and R&M contracts. The increase in extended warranty, operating leases and other costs of $24.1 million reflects higher costs from extended warranty and R&M contracts and higher used truck costs.
Current wording
Extended warranties, operating leases and other increased revenues by $12.9 million, primarily due to higher volume of extended warranty contracts and R&M contracts. The increase in cost of sales by $1.8 million reflects higher costs from R&M contracts partially offset by lower extended warranty costs in the U.S. and Canada.
Previous wording
The currency translation effect on sales and cost of sales primarily reflects an increase in the value of the euro and the Brazilian real relative to the U.S. dollar, partially offset by the decline in the value of the Australian dollar and Canadian 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, Australian dollar, Canadian dollar and Brazilian real relative to the U.S. dollar.
Previous wording
Truck gross margin was 5.8% in the third quarter of 2025 compared to 13.0% in the same period of 2024 due to the factors noted above.
Current wording
Truck gross margin was 7.0% in the first quarter of 2026 compared to 9.7% in the same period of 2025 due to the factors noted above.
Previous wording
Truck SG&A expenses increased in the third quarter of 2025 to $63.3 million from $61.9 million in the same period of 2024, primarily due to higher sales and marketing expenses. For the first nine months of 2025, Truck SG&A decreased to $175.3 million from $183.3 million in the same period of 2024, primarily due to lower salaries and related expenses, lower professional fees and lower travel and entertainment expenses, partially offset by higher sales and marketing expenses. As a percentage of sales, Truck SG&A was 1.4% and 1.2% for the third quarter and first nine months of 2025, respectively, compared to 1.0% for the third quarter and first nine months of 2024.
Current wording
As a percentage of sales, Truck SG&A was 1.4% in the first quarter of 2026 compared to 1.1% in the first quarter of 2025.
Previous wording
The Company’s Parts segment accounted for 26% of revenues in the third quarter and 24% in the first nine months of 2025, compared to 20% for both the third quarter and first nine months of 2024.
Current wording
The Company’s Parts segment accounted for 25% of revenues in the first quarter 2026 compared to 23% in the first quarter of 2025.
Previous wording
Aftermarket parts sales volume decreased by $42.1 million and related cost of sales decreased by $27.3 million. The decrease in parts sales and costs primarily reflects lower sales volume in most major markets, primarily in Mexico, the U.S. and Canada and Europe.
Current wording
Aftermarket parts sales volume decreased by $128.5 million and related cost of sales decreased by $65.7 million primarily due to lower sales volume in the U.S. and Canada and a higher mix of lower margin direct ship sales.
Previous wording
Average aftermarket parts sales prices increased sales by $205.6 million, primarily due to price realization in the U.S. and Canada as well as tariff cost increases in the U.S.
Current wording
Average aftermarket parts sales prices increased sales by $101.5 million, primarily due to price realization in the U.S. and Canada and Europe.
Previous wording
Average aftermarket parts direct costs increased $61.8 million due to higher material costs and higher tariff costs, primarily in the U.S.
Current wording
Average aftermarket parts direct costs increased $55.9 million due to higher material costs, primarily in the U.S. and Canada and Europe and higher tariff costs, primarily in the U.S.
Previous wording
Warehouse and other indirect costs increased $11.8 million, primarily due to higher indirect costs, including depreciation expense.
Current wording
Warehouse and other indirect costs increased $13.1 million, primarily due to higher indirect costs including R&M and depreciation expense.
Previous wording
Parts SG&A expense increased in the third quarter of 2025 to $66.5 million from $62.5 million in the same period of 2024. For the first nine months, Parts SG&A increased to $192.0 million in 2025 from $186.4 million in the same period of 2024. The increase in both periods was primarily due to higher salaries and related expenses.
Current wording
Parts SG&A expense in the first quarter of 2026 increased to $67.7 million from $60.9 million in the same period of 2025. The increase was primarily due to higher currency translation effects.
Previous wording
As a percentage of sales, Parts SG&A was 3.9% for the third quarter of 2025 and 3.8% for the same period of 2024, and 3.7% for the first nine months of both 2025 and 2024.
Current wording
As a percentage of sales, Parts SG&A was 4.0% in the first quarter of 2026 compared to 3.6% in the first quarter of 2025.
Previous wording
The Company’s Financial Services segment accounted for 8% of revenues in both the third quarter and for the first nine months of 2025, compared to 7% in the third quarter and 6% for the first nine months of 2024.
Current wording
The Company’s Financial Services segment accounted for 8% of revenues in the first quarter of 2026 compared to 7% in the first quarter of 2025.
Previous wording
New loan and lease volume was $1.69 billion in the third quarter of 2025 compared to $2.01 billion in the third quarter of 2024, and for the first nine months of 2025 was $5.06 billion compared to $5.45 billion in the same period in 2024. The decrease in new loan and lease volume was primarily due to lower new loan and lease volume from lower retail sales of PACCAR trucks and currency translation effects, mostly offset by higher finance market share 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 and Australia.
Current wording
New loan and lease volume was $1.35 billion in the first quarter of 2026 compared to $1.51 billion in the first quarter of 2025. The decrease in new loan and lease volume was primarily due to lower retail sales of PACCAR trucks in the U.S. and Canada, Mexico and Brasil. The increase in equipment on operating lease dollar volume was primarily due to higher currency effect and market demand in Europe and Australia, partly offset by lower demand in Mexico. The effect of currency translation also increased new loan and lease volume by $70.7 million, primarily due to the euro.
Previous wording
In the third quarter of 2025, PFS finance market share of new PACCAR truck sales was 27.1% compared to 26.9% in the third quarter of 2024. In the first nine months of 2025, PFS finance market share of new PACCAR truck sales was 25.9% compared to 24.2% in the first nine months of 2024. The increase in the third quarter of 2025 and in the first nine months of 2025 reflects higher share in all markets.
Current wording
In the first quarter of 2026, PFS finance market share of new PACCAR truck sales was 24.2% compared to 24.6% in the first quarter of 2025.
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 $407.5 million at September 30, 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.
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 $354.0 million at March 31, 2026 and $389.4 million at December 31, 2025. 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 RVGs.
Previous wording
The Company recognized losses on used trucks, excluding repossessions, of $8.0 million in the third quarter of 2025 compared to $13.0 million in the third quarter of 2024, including $7.2 million of losses on multiple unit transactions in the third quarter of 2025 compared to $9.7 million in the third quarter of 2024. Used truck losses related to repossessions, which are recognized as credit losses, were $1.9 million for the third quarter of 2025 and $2.0 million the third quarter of 2024.
Current wording
The Company recognized losses on used trucks, excluding repossessions, of $5.7 million in the first quarter of 2026 compared to $11.1 million in the first quarter of 2025, including $7.9 million of losses on multiple unit transactions in the first quarter of 2026 compared to $12.0 million in the first quarter of 2025. Used truck losses related repossessions, which are recognized as credit losses, were $4.7 million for the first quarter of 2026 and $3.3 million for the first quarter of 2025.
Previous wording
Higher portfolio yields (7.4% in 2025 compared to 7.3% in 2024) increased interest and fees by $27.0 million. The higher portfolio yields were primarily due to higher market rates on new portfolio assets, primarily in the U.S. and Brasil.
Current wording
Slightly lower portfolio yields (7.3% in 2026 compared to 7.4% in 2025) decreased interest and fees by $10.6 million. The lower portfolio yields were primarily due to lower market rates on new portfolio assets, primarily in the U.S.
Previous wording
Higher borrowing rates (5.1% in 2025 compared to 4.9% in 2024) increased interest and other borrowing expenses by $4.5 million and were primarily due to higher debt market rates in all markets except Canada.
Current wording
Slightly lower borrowing rates (4.8% in 2026 compared to 4.9% in 2025) decreased interest and other borrowing expenses by $3.8 million and were primarily due to lower debt market rates, primarily in Europe and Mexico.
Previous wording
The currency translation effects reflect an increase in the value of foreign currencies relative to the U.S. dollar, primarily the euro, the Mexican peso and Brazilian real.
Current wording
The currency translation effects reflect an increase in the value of foreign currencies relative to the U.S. dollar, primarily the Mexican peso and euro.
Showing the first 40 of 73 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Capital investments in 2026 are expected to be $725 to $775 million and R&D is expected to be $450 to $500 million. PACCAR is increasing its investment in next generation internal combustion, hybrid and battery-electric powertrains, integrated connected vehicle services, advanced manufacturing capabilities, and the Company's autonomous vehicle platform.
Rearranged previous paragraphs (12)
Previous report — wording carried elsewhere
Worldwide net sales and revenues were $21.62 billion in 2025 compared to $25.76 billion in 2024, 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 $339.3 million in 2025 compared to $337.6 million in 2024.
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, 2025 and 2024 are as follows:
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, 2025 and 2024 are as follows:
Previous report — wording carried elsewhere
Average aftermarket parts direct costs increased $144.3 million due to higher material costs and higher tariff costs, primarily in the U.S.
Previous report — wording carried elsewhere
Warehouse and other indirect costs increased $34.1 million, primarily due to higher indirect costs, including depreciation expense.
Previous report — wording carried elsewhere
Higher portfolio yields (7.5% in 2025 compared to 7.4% in 2024) increased interest and fees by $6.4 million. The higher portfolio yields were primarily due to higher market rates on new portfolio assets, primarily in the U.S. and Brasil.
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, 2025 and 2024 are outlined below:
Previous report — wording carried elsewhere
Revenue per asset increased $15.2 million primarily due to higher average truck values financed and higher yield. Cost per asset increased $6.6 million due to higher depreciation and operating expenses, mainly in Europe.
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, 2025 and 2024 are outlined below:
Previous report — wording carried elsewhere
Results on returned lease assets decreased depreciation and other expenses by $8.9 million.
Previous report — wording carried elsewhere
In 2025, total capital investments for PACCAR are expected to be $750 to $775 million and R&D is expected to be $450 to $465 million. In 2026, capital investments are expected to be $725 to $775 million and R&D is expected to be $450 to $500 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.