PACCAR Q4 Earnings Match Estimates, Revenues Decline Y/Y

Core Insights - PACCAR Inc. reported fourth-quarter 2025 earnings of $1.06 per share, matching the Zacks Consensus Estimate but declining from $1.66 in the same quarter of the previous year [1] - Consolidated revenues for the quarter were $6.8 billion, down from $7.91 billion in the corresponding quarter of 2024 [1] Trucks Segment - Revenues from the Trucks segment totaled $4.52 billion, lower than $5.69 billion in the prior-year quarter but exceeding the estimate of $4.43 billion [2] - Global truck deliveries were 32,900 units, surpassing the projection of 32,145 units but down from 43,900 units delivered in the same quarter of 2024 [2] - The segment's pre-tax income was $94.6 million, significantly below the estimate of $237.3 million and down 81.2% year over year [2] Parts Segment - Revenues from the Parts segment reached $1.74 billion, an increase from $1.67 billion in the year-earlier period, but slightly below the estimate of $1.75 billion [3] - Pre-tax income for the Parts segment totaled $415 million, down from $428.2 million reported in the previous year, yet exceeding the forecast of $332.1 million [3] Financial Services Segment - Financial Services segment revenues amounted to $568.7 million, higher than $544.3 million in the year-ago quarter but lower than the estimate of $576.8 million [4] - Pre-tax income increased to $114.9 million from $104 million in the previous year, although it fell short of the projection of $128.1 million [4] Expenses and Cash Position - Selling, general and administrative expenses rose to $153.8 million from $150.4 million in the prior-year period [5] - Research & development expenses totaled $106.2 million compared to $115 million in the year-ago quarter [5] - As of December 31, 2025, PACCAR's cash and marketable debt securities amounted to $9.25 billion, down from $9.65 billion as of December 31, 2024 [5] - Capital expenditures and R&D expenses for 2026 are projected to be between $725-$775 million and $450-$500 million, respectively [5] Zacks Rank and Comparisons - PACCAR currently holds a Zacks Rank 3 (Hold) [6] - Other better-ranked stocks in the auto sector include Ford Motor, REV Group, and PHINIA Inc., each with a Zacks Rank 1 (Strong Buy) [6] - The Zacks Consensus Estimate for Ford's 2025 sales implies a year-over-year growth of 0.3% [6] - The Zacks Consensus Estimate for REV Group's fiscal 2026 sales and earnings implies year-over-year growth of 8.1% and 37.8%, respectively [7] - The Zacks Consensus Estimate for PHIN's 2025 sales and earnings implies year-over-year growth of 1.1% and 33.4%, respectively [7]