Core Insights - The company is well positioned to benefit from the sustained increase in e-commerce spending over the long term [1] Summary by Category - **Company Positioning** - The company is strategically aligned to capitalize on the growth in e-commerce spending, indicating a strong potential for future revenue growth [1] - **Market Trends** - There is a sustained increase in e-commerce spending, which is expected to continue over the long term, providing a favorable environment for the company [1]

Company Performance - Paccar (PCAR) stock closed at $93.56, reflecting a +1.95% increase from the previous day, outperforming the S&P 500's gain of 0.58% [1] - Over the past month, Paccar shares increased by 2.59%, which is below the Auto-Tires-Trucks sector's gain of 10.94% and the S&P 500's gain of 4.61% [1] Earnings Projections - Analysts expect Paccar to report an EPS of $1.29, indicating a 39.44% decline compared to the same quarter last year [2] - The Zacks Consensus Estimate for revenue is projected at $6.81 billion, down 17.63% from the previous year [2] - For the full year, earnings are projected at $5.72 per share and revenue at $27.75 billion, reflecting changes of -27.59% and -12.09% respectively from the prior year [3] Analyst Sentiment - Recent shifts in analyst projections for Paccar should be monitored, as positive revisions indicate confidence in the company's performance and profit potential [4] - The Zacks Rank system, which assesses estimate changes, currently ranks Paccar at 5 (Strong Sell), with a 4.27% decrease in the EPS estimate over the last 30 days [6] Valuation Metrics - Paccar is trading with a Forward P/E ratio of 16.05, which is a premium compared to the industry's average Forward P/E of 10.14 [7] - The company has a PEG ratio of 3.39, significantly higher than the industry average PEG ratio of 1.07 [7] Industry Context - The Automotive - Domestic industry, part of the Auto-Tires-Trucks sector, has a Zacks Industry Rank of 218, placing it in the bottom 12% of over 250 industries [8]

Group 1 - Paccar Inc. is a leading producer and distributor of commercial trucks and parts, operating through three reportable segments: Truck, Parts, and Financial Services [1] - The company employs over 30,000 people worldwide and has a significant market presence [1]

Core Viewpoint - Paccar's shares have increased by approximately 4.3% since the last earnings report, but this performance is below that of the S&P 500, raising questions about the sustainability of this trend leading up to the next earnings release [1] Group 1: Earnings Report and Estimates - The consensus estimate for Paccar has decreased by 23.06% over the past month, indicating a downward trend in estimates revisions [2] - The stock has received a Zacks Rank of 5, categorized as a Strong Sell, suggesting expectations of below-average returns in the coming months [4] Group 2: VGM Scores - Paccar currently holds a Growth Score of B, but has a low Momentum Score of D, indicating weaker performance in momentum compared to growth [3] - The stock has a value grade of C, placing it in the middle 20% for this investment strategy, contributing to an overall aggregate VGM Score of B [3]

Company Performance - Paccar (PCAR) closed at $94.05, reflecting a -0.97% change from the previous day, which is less than the S&P 500's daily loss of 0.56% [1] - Over the past month, Paccar's shares have increased by 5.18%, underperforming the Auto-Tires-Trucks sector's gain of 16.76% and the S&P 500's gain of 7.37% [1] Upcoming Earnings - Paccar is expected to report earnings of $1.29 per share, indicating a year-over-year decline of 39.44% [2] - The Zacks Consensus Estimate for revenue is projected at $6.81 billion, down 17.63% from the previous year [2] Annual Forecast - For the entire year, the Zacks Consensus Estimates forecast earnings of $5.70 per share and revenue of $27.88 billion, representing declines of -27.85% and -11.69% respectively compared to the previous year [3] - Recent changes to analyst estimates for Paccar suggest a dynamic business outlook, with positive revisions indicating a potentially favorable business trend [3] Analyst Ratings - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently rates Paccar at 5 (Strong Sell) [5] - Over the last 30 days, the Zacks Consensus EPS estimate has decreased by 13.94% [5] Valuation Metrics - Paccar has a Forward P/E ratio of 16.67, which is a premium compared to the industry's average Forward P/E of 10.66 [6] - The company has a PEG ratio of 3.52, while the average PEG ratio for the Automotive - Domestic industry is 1.11 [7] Industry Context - The Automotive - Domestic industry, part of the Auto-Tires-Trucks sector, has a Zacks Industry Rank of 218, placing it in the bottom 12% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Core Insights - Harley-Davidson, Inc. reported first-quarter 2025 adjusted earnings of $1.07 per share, exceeding the Zacks Consensus Estimate of 80 cents, but down from $1.72 per share in the same quarter last year [1] - Consolidated revenues for the quarter were $1.33 billion, a decline of 23% year-over-year [1] Segmental Highlights - Revenues from the Motorcycle and Related Products segment fell 27% year-over-year to $1.08 billion, missing the forecast of $1.17 billion due to lower motorcycle shipments [2] - Worldwide motorcycle shipments decreased by 33% to 38,600 units, below the estimate of 43,571 units [2] - Revenues from motorcycle sales were $864 million, down 29% year-over-year, with operating income plunging 51% to $116 million, falling short of the estimate of $165.2 million [2] Retail Performance - Harley-Davidson retailed 31,000 motorcycle units globally, a decline of 21% year-over-year, and below expectations of 38,000 units [3] - Retail motorcycle sales in North America decreased by 24% to 20,900 units, while sales in EMEA declined by 2%, and Asia Pacific and Latin America saw declines of 28% and 6%, respectively [3] Parts and Accessories - Revenues from parts and accessories fell 14% year-over-year to $143 million, missing the estimate of $162.2 million [4] - Revenues from apparel decreased by 11% year-over-year to $57 million, also falling short of the forecast of $63 million [4] Financial Services - Revenues for Harley-Davidson Financial Services totaled $245 million, a decline of 2% year-over-year, missing the forecast of $273 million [5] - Operating income increased by 19% to $64 million, surpassing the estimate of $51.4 million due to lower provisions for credit losses and reduced operating expenses [5] LiveWire Performance - Total shipments for LiveWire were 33 units, a decline of 72% from the previous year, with revenues down 42% to $3 million, missing the estimate of $6.5 million [6] - Operating loss narrowed from $29 million to $20 million, which was better than the projected loss of $29.7 million [6] Financial Position - As of March 31, 2025, Harley-Davidson had cash and cash equivalents of $1.93 billion, up from $1.59 billion at the end of 2024 [7] - Long-term debt increased to $4.96 billion from $4.46 billion as of December 31, 2024 [7] - The company withdrew its 2025 guidance amid macroeconomic uncertainties and tariff issues [7]

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) PACCAR reported Q1 2025 net sales and revenues of $7.44 billion and net income of $505.1 million, a significant decrease from Q1 2024, primarily due to lower truck sales and a $350 million pre-tax charge for European civil litigation Q1 2025 vs Q1 2024 Consolidated Statement of Comprehensive Income Highlights | Metric | Q1 2025 (in millions) | Q1 2024 (in millions) | Change | | :--- | :--- | :--- | :--- | | **Net Sales and Revenues** | $6,913.7 | $8,235.0 | -16.0% | | **Total Income Before Income Taxes** | $643.1 | $1,534.5 | -58.1% | | **Net Income** | $505.1 | $1,195.3 | -57.7% | | **Diluted EPS** | $0.96 | $2.27 | -57.7% | Consolidated Balance Sheet Highlights | Metric | March 31, 2025 (in millions) | Dec 31, 2024 (in millions) | | :--- | :--- | :--- | | **Total Assets** | $42,724.7 | $43,418.9 | | Cash and cash equivalents | $5,517.7 | $7,060.8 | | Total Stockholders' Equity | $18,022.1 | $17,506.9 | Q1 2025 vs Q1 2024 Consolidated Statement of Cash Flows Highlights | Metric | Q1 2025 (in millions) | Q1 2024 (in millions) | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $910.3 | $1,469.0 | | Net Cash Used in Investing Activities | ($392.6) | ($526.1) | | Net Cash Used in Financing Activities | ($2,134.7) | ($1,880.0) | | Net Decrease in Cash and Cash Equivalents | ($1,543.1) | ($987.2) | [Note A - Basis of Presentation](index=8&type=section&id=Note%20A%20-%20Basis%20of%20Presentation) The financial statements are prepared under GAAP for interim reporting, with a key development being the formation of a U.S. battery manufacturing joint venture, Amplify Cell Technologies, accounted for using the equity method - PACCAR formed a battery manufacturing joint venture, Amplify Cell Technologies, with a **30% interest**, accounted for using the equity method[22](index=22&type=chunk) - PACCAR contributed **$44.7 million** to the joint venture in Q1 2025, with a maximum required contribution of **$830.0 million**, and the equity method investment was valued at **$237.6 million** as of March 31, 2025[22](index=22&type=chunk) [Note B – Sales and Revenues](index=9&type=section&id=Note%20B%20%E2%80%93%20Sales%20and%20Revenues) This note details the disaggregation of revenues, with Truck sales forming the largest component, followed by Parts sales, and Financial Services revenues primarily from interest income on loans and leases Truck, Parts and Other Revenues by Source (in millions) | Source | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Truck Sales | $4,971.7 | $6,304.7 | | Parts Sales | $1,637.6 | $1,625.6 | | **Total Truck, Parts and Other** | **$6,913.7** | **$8,235.0** | Financial Services Lease Revenues by Type (in millions) | Lease Type | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Finance lease revenues | $88.2 | $82.6 | | Operating lease revenues | $150.8 | $174.9 | | **Total lease revenues** | **$239.0** | **$257.5** | - The company's total commitment to acquire trucks at a guaranteed value for contracts accounted for as a sale was **$572.8 million** at March 31, 2025[31](index=31&type=chunk) [Note E - Finance and Other Receivables](index=13&type=section&id=Note%20E%20-%20Finance%20and%20Other%20Receivables) Total net finance and other receivables increased to $19.61 billion at March 31, 2025, from $19.31 billion at year-end 2024, with the allowance for credit losses stable at $144.6 million Allowance for Credit Losses Activity (in millions) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Balance at January 1 | $145.2 | $133.0 | | Provision for losses | $18.3 | $16.1 | | Charge-offs | ($23.3) | ($10.8) | | Recoveries | $2.3 | $2.2 | | **Balance at March 31** | **$144.6** | **$139.3** | - The balance of repossessed inventory increased to **$107.8 million** at March 31, 2025, from **$80.9 million** at December 31, 2024, primarily due to one large fleet customer in the U.S[78](index=78&type=chunk) [Note F - Product Support Liabilities](index=19&type=section&id=Note%20F%20-%20Product%20Support%20Liabilities) This note covers warranty reserves and deferred revenues from extended service contracts, with warranty reserves increasing slightly to $622.4 million and deferred revenues growing to $1.34 billion in Q1 2025 Changes in Product Support Liabilities (in millions) | Liability Type | Balance at Jan 1, 2025 | Balance at Mar 31, 2025 | Balance at Mar 31, 2024 | | :--- | :--- | :--- | :--- | | Warranty Reserves | $606.1 | $622.4 | $763.4 | | Deferred Revenues on Extended Warranties & R&M | $1,302.2 | $1,343.5 | $1,253.6 | [Note I - Segment Information](index=22&type=section&id=Note%20I%20-%20Segment%20Information) PACCAR operates in three segments: Truck, Parts, and Financial Services, with the Truck segment's income before tax falling sharply and the 'Other' segment reporting a significant loss due to a $350.0 million charge for European civil litigation Segment Income Before Income Taxes (in millions) | Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Truck | $364.9 | $881.6 | | Parts | $426.5 | $455.8 | | Other | ($353.2) | ($2.3) | | **Truck, Parts and Other** | **$438.2** | **$1,335.1** | | Financial Services | $121.1 | $113.9 | - The 'Other' segment includes a **$350.0 million** pre-tax charge related to civil litigation in Europe (EC-related claims) in the first quarter of 2025[94](index=94&type=chunk) [Note M – Commitments and Contingencies](index=30&type=section&id=Note%20M%20%E2%80%93%20Commitments%20and%20Contingencies) This note details ongoing legal proceedings, most notably the EC-related claims, for which the company recorded an additional pre-tax charge of $350.0 million in Q1 2025 due to higher anticipated settlement costs - Due to higher settlement costs for EC-related claims, the Company recorded an additional pre-tax charge of **$350.0 million** (**$264.5 million** after-tax) in Q1 2025[128](index=128&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management attributes the 15% YoY revenue decline to lower truck deliveries and a $350 million pre-tax charge for European litigation, while providing a cautious outlook for 2025 truck sales and planning significant investments in new technologies [Outlook](index=31&type=section&id=Outlook) The company projects lower heavy-duty truck sales for 2025 in key markets, forecasts a 2-4% increase in Parts sales, and plans significant capital and R&D investments focusing on new powertrains, connected services, and a battery joint venture 2025 Truck Industry Sales Outlook | Region | 2025 Projected Sales | 2024 Sales | | :--- | :--- | :--- | | U.S. & Canada (Heavy-duty) | 235,000 - 265,000 units | 268,100 units | | Europe (>16-tonne) | 270,000 - 300,000 units | 316,100 units | | South America (Heavy-duty) | 100,000 - 110,000 units | 119,000 units | - PACCAR Parts sales are expected to increase **2-4%** in 2025 compared to 2024[136](index=136&type=chunk) - Planned 2025 investments include **$700-$800 million** in capital expenditures and **$450-$480 million** in R&D, plus a total project investment of **$600-$900 million** in the Amplify Cell Technologies battery joint venture[139](index=139&type=chunk)[203](index=203&type=chunk) [Results of Operations](index=32&type=section&id=Results%20of%20Operations) The Truck segment's income before tax plummeted 59% YoY due to decreased deliveries and lower price realization, while the Parts segment saw record revenue but a 6% income decline, and Financial Services income grew 6% due to portfolio growth New Truck Deliveries by Region (Units) | Region | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | U.S. and Canada | 22,200 | 29,500 | (25)% | | Europe | 10,400 | 11,600 | (10)% | | Other | 7,500 | 7,000 | 7% | | **Total Units** | **40,100** | **48,100** | **(17)%** | - Truck segment income before tax decreased **59%** to **$364.9 million**, primarily due to lower truck unit deliveries and lower price realization in the U.S., Canada, and Europe[151](index=151&type=chunk)[152](index=152&type=chunk) - Parts segment income before tax decreased **6%** to **$426.5 million**, with gross margin falling to **30.7%** from **32.5%** YoY due to higher material and warehouse costs[160](index=160&type=chunk)[164](index=164&type=chunk) - Financial Services income before tax increased **6%** to **$121.1 million**, driven by higher finance margins from a larger loan and lease portfolio[166](index=166&type=chunk)[170](index=170&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) The company's cash and marketable securities decreased by $1.5 billion to $8.34 billion, primarily due to $1.75 billion in dividend payments, while cash from operations decreased to $910.3 million, yet strong liquidity is maintained with $4.93 billion in unused credit lines - Total cash and marketable securities stood at **$8.34 billion** at March 31, 2025, a decrease of **$1.50 billion** from December 31, 2024[194](index=194&type=chunk) - Cash provided by operations decreased to **$910.3 million** in Q1 2025 from **$1,469.0 million** in Q1 2024, mainly due to lower net income[195](index=195&type=chunk) - The company paid **$1.75 billion** in dividends during Q1 2025[197](index=197&type=chunk) - As of March 31, 2025, the company had **$4.93 billion** unused out of **$5.52 billion** in total credit line arrangements[199](index=199&type=chunk) [Reconciliation of GAAP to Non-GAAP Financial Measures](index=44&type=section&id=RECONCILIATION%20OF%20GAAP%20TO%20NON-GAAP%20FINANCIAL%20MEASURES) This section reconciles GAAP to non-GAAP measures by adjusting for the $350.0 million pre-tax EC-related claims charge, resulting in an adjusted net income of $769.6 million for Q1 2025 Q1 2025 GAAP to Non-GAAP Reconciliation (in millions, except per share) | Metric | GAAP | Adjustment (EC-related claims) | Non-GAAP | | :--- | :--- | :--- | :--- | | Net Income | $505.1 | $264.5 | $769.6 | | Diluted EPS | $0.96 | $0.50 | $1.46 | | After-tax Return on Revenues | 6.8% | 3.5% | 10.3% | - The adjustment for EC-related claims relates to a pre-tax charge of **$350.0 million** (**$264.5 million** after-tax) recorded in Q1 2025[214](index=214&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company states there were no material changes in its market risk during the first quarter of 2025 and refers to its 2024 Annual Report on Form 10-K for further information - There were no material changes in the Company's market risk during the three months ended March 31, 2025[218](index=218&type=chunk) [Controls and Procedures](index=46&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period, with no material changes to internal controls over financial reporting occurring during the quarter - The Principal Executive Officer and Principal Financial Officer concluded that the Company's disclosure controls and procedures were effective as of March 31, 2025[219](index=219&type=chunk) - No changes in internal controls over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting[220](index=220&type=chunk) [PART II. OTHER INFORMATION](index=47&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=47&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) This section refers to Note M, "Commitments and Contingencies," for information on litigation matters, primarily discussing the EC-related claims and the additional $350 million charge taken in Q1 2025 - Information on legal proceedings is incorporated by reference from Note M – "Commitments and Contingencies"[223](index=223&type=chunk) [Risk Factors](index=47&type=section&id=ITEM%201A.%20RISK%20FACTORS) The company states there have been no material changes to its risk factors during the first quarter of 2025 and refers to the 2024 Annual Report on Form 10-K for a full description - There have been no material changes in the Company's risk factors during the three months ended March 31, 2025[224](index=224&type=chunk) [Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=47&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES,%20USE%20OF%20PROCEEDS,%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) The company reported no unregistered sales of equity securities and no share repurchases during Q1 2025 under its $500 million plan, with $110.0 million repurchased to date - No repurchases were made under the company's stock repurchase plan during the first three months of 2025[226](index=226&type=chunk) - As of March 31, 2025, the Company has repurchased a cumulative **$110.0 million** of shares under its **$500.0 million** authorization from 2018[226](index=226&type=chunk)

Financial Performance - PACCAR's 2024 revenues reached $33.7 billion [9], with a net income of $4.2 billion [9] - The company's average dividend yield in 2024 was 4.0% [9] - PACCAR Parts achieved record sales of $6.67 billion and pretax profits of $1.71 billion in 2024 [164] - In the first quarter of 2025, PACCAR reported revenues of $7.442 billion [215] and adjusted net income of $770 million [215], resulting in an adjusted return on revenues of 10.3% [215] Truck Production and Market - PACCAR produced 185,300 trucks in 2024 [51] - The company has produced over 738,000 MX engines in Europe and over 347,000 engines in North America [104] - PACCAR Financial financed 25% of all Kenworth, Peterbilt, and DAF trucks in 2024 [185] - Kenworth and Peterbilt combined have approximately 40% share in the vocational segment in the US and Canada [200] Innovation and Technology - New Kenworth T680 and Peterbilt Model 579 trucks offer 7% greater fuel economy [19, 22] - DAF's new truck models offer 13% greater fuel efficiency [36] - PACCAR is investing in a battery cell joint venture with a total project investment of $2-3 billion and a capacity of 21 GWh, with production starting in 2027 [119]

Financial Data and Key Metrics Changes - PACCAR achieved revenues of $7.4 billion and adjusted net income of $770 million in Q1 2025, with PACCAR Parts achieving record quarterly revenues of $1.7 billion and pre-tax income of $427 million [6][10] - PACCAR Financial Services reported pre-tax income of $121 million, a 6% increase from $114 million in the same quarter last year [6][11] - Gross margins for truck parts and other were 14.8% in Q1, with expectations for Q2 margins to be in the range of 13% to 14% due to economic uncertainties and tariffs [8][10] Business Line Data and Key Metrics Changes - PACCAR Parts experienced record revenues and excellent gross margins of 30.7% in Q1, with expectations for parts sales to grow by 2% to 4% in Q2 and for the full year [10][11] - The truck divisions performed well, with PACCAR delivering 40,100 trucks in Q1 and anticipating deliveries of 37,000 to 39,000 trucks in Q2 [7][10] Market Data and Key Metrics Changes - The U.S. and Canadian Class 8 truck market is estimated to be between 235,000 to 265,000 trucks for the year [6] - The European above 16-ton market is projected to be in the range of 270,000 to 300,000 trucks, while the South American market is expected to be between 100,000 to 110,000 vehicles [7] Company Strategy and Development Direction - PACCAR is investing between $700 million to $800 million in capital investments and $450 million to $480 million in R&D for 2025, focusing on next-generation powertrains and advanced driver assistance systems [12][13] - The company is expanding its manufacturing capacity, including a new engine remanufacturing facility in Mississippi and an expansion of the DAF factory in Brazil [12][13] Management's Comments on Operating Environment and Future Outlook - Management noted that economic uncertainties and tariffs are affecting input costs and truck pricing, but they anticipate increased customer demand in the second half of the year as policies stabilize [8][12] - The company remains confident in its ability to manage costs and pricing in response to tariff impacts, emphasizing the importance of maintaining strong relationships with suppliers and customers [20][68] Other Important Information - The adjusted net income of $770 million excludes a $265 million after-tax provision related to EU civil litigation settlements, with progress being made in resolving these issues [10] - The company has a strong focus on maintaining profitability during all phases of the business cycle, with PACCAR Financial Services showing solid portfolio growth and strong credit quality [11][12] Q&A Session Summary Question: Can you elaborate on the guidance for gross margins and tariff costs? - Management indicated uncertainty regarding tariff policies and their impact on costs, noting that they are an American company building trucks for local markets, which helps mitigate some tariff impacts [19][20] Question: How do you view the vocational market and its stability? - The vocational market remains solid, and management expects it to continue being a strength throughout the year, despite pressures in the truckload carrier segment [21][22] Question: What is the comfort level with inventory levels? - PACCAR's inventory for Class A trucks is around 3.1 months, which is lower than the industry average of four months, indicating a comfortable position [36][37] Question: How do you anticipate the impact of EPA emissions changes? - Management discussed the potential changes in regulatory standards and their preparedness to meet future requirements, emphasizing investments in clean diesel technology [44][46] Question: What is the outlook for parts growth and margins? - Management expressed confidence in parts growth despite a soft market, with expectations for margins to remain above 30% [50][51] Question: How are you managing through the dynamic tariff environment? - The company is actively working with suppliers to manage costs and ensure compliance with tariff regulations, maintaining flexibility in pricing strategies [68][109]

Core Insights - PACCAR Inc. reported earnings of $1.46 per share for Q1 2025, missing the Zacks Consensus Estimate of $1.57 and declining from $2.27 in the same period last year [1] - Consolidated revenues were $7.44 billion, down from $8.74 billion in Q1 2024, with Truck, Parts, and Others sales at $6.91 billion [1] Revenue Breakdown - Truck segment revenues totaled $5.23 billion, lower than $6.54 billion in the prior-year quarter and missing the estimate of $5.43 billion; global truck deliveries were 40,100 units, down from 48,110 units in Q1 2024 [2] - Parts segment revenues were $1.69 billion, slightly up from $1.68 billion year-over-year and matching estimates; pre-tax income was $426.5 million, down from $455.8 million [3] - Financial Services segment revenues reached $528 million, higher than $509.3 million in the year-ago quarter but below the estimate of $553 million; pre-tax income increased to $121.1 million from $113.9 million [4] Expense and Financial Position - Selling, general and administrative expenses decreased to $143.3 million from $147.6 million year-over-year; R&D expenses rose to $115.4 million from $105.5 million [5] - As of March 31, 2025, PACCAR's cash and marketable debt securities totaled $8.1 billion, down from $9.65 billion as of December 31, 2024 [5] Future Outlook - Capital expenditures for 2025 are projected between $700 million and $800 million; R&D expenses are estimated to be in the range of $450 million to $480 million [6]