PACCAR(US:PCAR)2026-01-27 13:05Financial Performance - PACCAR achieved annual revenues of $28.44 billion and net income of $2.38 billion ($4.51 per diluted share) in 2025, including a $264.5 million after-tax charge related to civil litigation[3]. - In Q4 2025, PACCAR reported revenues of $6.82 billion and net income of $556.9 million ($1.06 per diluted share), a decrease from $7.91 billion and $872.0 million in Q4 2024[2]. - Net income for the year ended December 31, 2025, was $2,375.8 million, down from $4,162.0 million in 2024, representing a decrease of 43.0%[27]. - Total income before income taxes for the year was $3,023.5 million, a decrease of 44.0% from $5,400.9 million in 2024[27]. - The company declared dividends of $1.73 per share in Q4 2025, down from $3.30 per share in Q4 2024, a reduction of 47.5%[27]. - Cash and cash equivalents at the end of the period were $6,307.9 million, down from $7,060.8 million at the end of 2024, a decrease of 10.7%[30]. Segment Performance - PACCAR Parts achieved record annual revenues of $6.87 billion, a 3% increase from $6.67 billion in 2024, with pretax income of $1.67 billion[16]. - PACCAR Financial Services reported record revenues of $2.21 billion in 2025, with pretax income of $485.4 million, an 11% increase from $435.6 million in 2024[19]. - Net sales for the Truck, Parts and Other segment decreased to $6,252.1 million in Q4 2025 from $7,363.2 million in Q4 2024, a decline of 15.1%[27]. - Total revenues for the Financial Services segment increased to $2,209.7 million in 2025 from $2,099.5 million in 2024, an increase of 5.2%[27]. Vehicle Deliveries and Market Share - PACCAR delivered 144,200 vehicles worldwide in 2025, maintaining a 30% market share in the U.S. and Canada Class 8 retail sales[9]. - New truck deliveries in the United States and Canada decreased to 15,000 units in Q4 2025 from 22,300 units in Q4 2024, a decline of 32.4%[37]. Research and Development - The company invested $1.17 billion in capital projects and research and development in 2025, with plans to invest $725-$775 million in capital projects and $450-$500 million in R&D in 2026[20]. - Research and development expenses for the year were $445.5 million, slightly down from $452.9 million in 2024, indicating a decrease of 1.0%[27]. Innovation and Infrastructure - The DAF XD and XF Electric trucks were awarded International Truck of the Year 2026, highlighting PACCAR's commitment to innovation in electric vehicle technology[14]. - PACCAR Parts opened a new 180,000 sq. ft. Parts Distribution Center in Calgary, Canada, enhancing parts delivery capabilities[16]. Financial Stability - PACCAR's strong balance sheet and A+/A1 credit ratings enabled the issuance of $3.12 billion in medium-term notes during 2025, facilitating competitive retail financing[19]. - Financial Services income before income taxes increased to $485.4 million for the year ended December 31, 2025, compared to $435.6 million in 2024, an increase of 11.0%[27]. Legal and Charges - The company recorded a pre-tax charge of $350.0 million related to civil litigation in Europe in Q1 2025[27]. - PACCAR's cash provided by operations was $4.42 billion in 2025, supporting strong financial performance and shareholder returns[10].