PACCAR Q3 Earnings Match Expectations, Capex Outlook Revised

Core Insights - PACCAR Inc. reported Q3 2025 earnings of $1.12 per share, matching estimates but down from $1.85 in the same quarter last year [1][10] - Consolidated revenues decreased to $6.67 billion from $8.24 billion year-over-year, with truck sales declining but parts and financial services showing growth [1][10] Revenue Breakdown - Truck segment revenues were $4.38 billion, down from $6.03 billion year-over-year, but exceeded the estimate of $4.28 billion; global truck deliveries fell to 31,900 units from 44,900 units in the prior year [2] - Parts segment revenues increased to $1.72 billion from $1.66 billion year-over-year, matching estimates; pre-tax income rose to $410 million from $406.7 million [3] - Financial Services segment revenues were $565.3 million, up from $536.1 million year-over-year, exceeding estimates; pre-tax income increased to $126.2 million from $106.5 million [4] Expense Management - Selling, general and administrative expenses decreased to $140.3 million from $144.3 million year-over-year; R&D expenses were $111 million compared to $115 million in the prior year [5] - Capital expenditures for 2025 are now estimated between $750-$775 million, down from the previous range of $750-$800 million; R&D expenses are projected to be between $450-$465 million, reduced from $450-$480 million [6] Market Position - PACCAR currently holds a Zacks Rank of 5 (Strong Sell) [7] - Comparatively, Mobileye Global Inc. (MBLY) has a Zacks Rank of 1 (Strong Buy), while Autoliv, Inc. (ALV) and Standard Motor Products, Inc. (SMP) both hold a Zacks Rank of 2 (Buy) [7]