PACCAR(US:PCAR)2025-10-30 20:06Financial Performance - Worldwide net sales and revenues were $6.67 billion in Q3 2025, down from $8.24 billion in Q3 2024, primarily due to lower truck revenues [141]. - Net income for Q3 2025 was $590 million ($1.12 per diluted share), down from $972.1 million ($1.85 per diluted share) in Q3 2024 [141]. - Truck segment income before taxes fell to $102.5 million in Q3 2025 from $630.8 million in Q3 2024, representing an 84% decrease, and for the first nine months, it dropped to $776.2 million from $2.35 billion, a 67% decline [158]. - The company reported a net income of $1,818.9 million for the nine months ended September 30, 2025, with adjusted net income of $2,083.4 million [231]. - Adjusted net income per diluted share was $3.95, while net income per diluted share was $3.45 for the same period [231]. - The effective tax rate for Q3 2025 was 20.7%, down from 22.6% in Q3 2024, reflecting higher U.S. Federal R&D tax credits [207]. - The effective tax rate was 21.6%, with an adjusted effective tax rate of 21.9% [231]. Truck Sales and Deliveries - Truck sales in Q3 2025 were $4.38 billion, a decrease of 27% from $6.03 billion in Q3 2024, attributed to lower truck deliveries in the U.S., Canada, and Mexico [141]. - The Company’s truck deliveries decreased by 29% in Q3 2025 compared to Q3 2024, with total units delivered at 31,900 [154]. - Truck industry heavy-duty retail sales in the U.S. and Canada are expected to be 230,000 to 245,000 units in 2025, down from 268,100 units in 2024 [143]. - Worldwide truck net sales and revenues for the third quarter of 2025 were $4.38 billion, down 27% from $6.03 billion in 2024, while revenues for the first nine months decreased to $14.85 billion from $19.15 billion, a 22% decline [158]. - Truck sales volume decreased revenues by $1.64 billion and costs by $1.39 billion in Q3 2025, primarily due to lower truck deliveries in the U.S. and Canada and Mexico [161]. Parts Sales and Performance - Parts sales increased to $1.72 billion in Q3 2025 from $1.66 billion in Q3 2024, reflecting higher sales in the U.S. and Canada and Europe [141]. - Parts segment revenues increased to $1.72 billion in Q3 2025 from $1.66 billion in Q3 2024, a 4% increase, and for the first nine months, revenues rose to $5.14 billion from $5.00 billion, a 3% increase [165]. - The Parts segment accounted for 26% of revenues in Q3 2025, up from 20% in the same period of 2024, indicating a growing contribution to overall revenues [164]. - Average aftermarket parts sales prices increased sales by $91.0 million in Q3 2025, primarily due to price realization and tariff cost increases in the U.S. [167]. - Average aftermarket parts sales prices increased sales by $205.6 million, primarily due to price realization in the U.S. and Canada [169]. - Parts gross margin decreased to 29.5% in Q3 2025 from 30.1% in Q3 2024 due to increased costs and lower sales volume in major markets [167]. - Parts gross margins in the first nine months of 2025 decreased to 30.0% from 31.0% in the first nine months of 2024 [170]. Financial Services Performance - Financial Services revenues were $565.3 million in Q3 2025, an increase from $536.1 million in Q3 2024, driven by higher interest income [141]. - PFS revenues increased to $565.3 million in the third quarter of 2025 from $536.1 million in the same period of 2024, an increase of 5% [177]. - 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, an increase of 18% [178]. - Average finance receivables increased by $1.22 billion in the third quarter of 2025, increasing interest and fees by $23.0 million [182]. - The Financial Services segment accounted for 8% of revenues in both the third quarter and the first nine months of 2025, compared to 7% and 6% in the same periods of 2024 [173]. - Average finance receivables rose by $1.97 billion in the first nine months of 2025, leading to an increase in interest and fees by $111.1 million [188]. - The provision for losses on receivables was $36.5 million in Q3 2025, up from $22.4 million in Q3 2024, driven by an increase in 30+ days past due accounts [194]. - The percentage of retail loan and lease accounts 30+ days past due increased to 2.1% as of September 30, 2025, compared to 1.3% at December 31, 2024 [199]. Capital Investments and Future Outlook - PACCAR plans to invest $750 to $775 million in capital investments and $450 to $465 million in R&D in 2025, focusing on clean diesel and alternative powertrains [147]. - Total capital investments for 2025 are expected to be between $750 million and $775 million, with R&D expected to be between $450 million and $465 million [218]. - The company maintains sufficient liquidity through cash balances, investments, and committed bank facilities, mitigating liquidity risk [227]. - The company believes its investment-grade credit ratings will continue to provide access to capital markets at competitive interest rates [227]. Market Conditions and Risks - The company faces various risks including competitive pressures, regulatory changes, and supply chain disruptions that may affect future performance [232]. - No material changes in the company's market risk were reported during the three months ended September 30, 2025 [234].