PACCAR Q2 Earnings Surpass Expectations, Sales Decline Y/Y

Core Insights - PACCAR Inc. reported Q2 2025 earnings of $1.37 per share, exceeding the Zacks Consensus Estimate of $1.28 but down from $2.13 in the same quarter last year [1][10] - Consolidated revenues for the quarter were $7.51 billion, a decrease from $8.77 billion in Q2 2024, with Truck, Parts, and Others sales at $6.96 billion [1][10] Trucks Segment - Revenues from the Trucks segment were $5.24 billion, lower than $6.58 billion in the prior-year quarter but above the estimate of $5.03 billion [2] - Global truck deliveries totaled 39,300 units, surpassing the projection of 38,203 units but down from 48,400 units in Q2 2024 [2] - Pre-tax income for the Trucks segment was $308.8 million, falling short of the estimate of $412 million and down 63.2% year-over-year [2] Parts Segment - Revenues from the Parts segment reached $1.72 billion, an increase from $1.66 billion in the year-ago period and above the estimate of $1.7 billion [3] - Pre-tax income for the Parts segment was $416.5 million, slightly up from $413.8 million reported last year and exceeding the forecast of $335.3 million [3] Financial Services Segment - Financial Services segment revenues were $547.7 million, higher than $509.8 million in the prior-year quarter and above the estimate of $536.5 million [4] - Pre-tax income for the Financial Services segment increased to $123.2 million from $111.2 million in the year-ago period, also surpassing the projection of $112.3 million [4] Expenses and Cash Position - Selling, general and administrative expenses decreased to $139.2 million from $142.7 million in the prior-year period [5] - Research & development expenses were $112.9 million compared to $117.1 million in the year-ago quarter [5] - As of June 30, 2025, PACCAR's cash and marketable debt securities totaled $8.28 billion, down from $9.65 billion as of December 31, 2024 [5] Capital Expenditure and R&D Outlook - Capital expenditures for 2025 are now projected to be in the range of $750-$800 million, up from the previous estimate of $700-$800 million [6] - Research & development expenses are estimated to be between $450-$480 million [6] Zacks Rank and Comparisons - PACCAR currently holds a Zacks Rank 3 (Hold) [7] - Comparatively, Geely Automobile Holdings Limited, Adient plc, and Ferrari N.V. have a Zacks Rank 1 (Strong Buy) [7]