Core Viewpoint - Investors in the Automotive - Domestic sector should consider General Motors (GM) as a more attractive option compared to Paccar (PCAR) for value investing opportunities [1] Valuation Metrics - GM has a forward P/E ratio of 6.87, significantly lower than PCAR's forward P/E of 19.43 [5] - GM's PEG ratio is 0.98, while PCAR's PEG ratio is considerably higher at 4.11 [5] - GM's P/B ratio stands at 0.94, compared to PCAR's P/B ratio of 2.66 [6] Earnings Outlook - GM currently holds a Zacks Rank of 1 (Strong Buy), indicating a positive earnings estimate revision trend, while PCAR has a Zacks Rank of 5 (Strong Sell) [3] - The improving earnings outlook for GM enhances its attractiveness as a value investment [7] Value Grades - GM has been assigned a Value grade of A, reflecting its undervaluation based on key metrics, whereas PCAR has a Value grade of C [6]

Group 1 - The article does not provide any specific content related to a company or industry [1]

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]

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Financial Data and Key Metrics Changes - PACCAR achieved revenues of $6.7 billion and net income of $590 million in Q3 2025, with PACCAR Parts achieving record quarterly revenues of $1.72 billion and pre-tax income of $410 million, reflecting a 4% growth in parts revenue compared to the same period last year [4][5][9] - Gross margins for PACCAR's trucks, parts, and other segments were 12.5% in Q3, affected by tariff increases on steel and aluminum, with expectations for fourth quarter margins to be around 12% as tariffs peak [7][8] Business Line Data and Key Metrics Changes - PACCAR Parts reported gross margins of 29.5% and continued to grow by investing in capacity and services, with a new parts distribution center opening in Calgary next year [9][10] - PACCAR Financial Services achieved pre-tax income of $126 million, an 18% increase from the previous year, supported by a high-quality portfolio and improving used truck results [10] Market Data and Key Metrics Changes - The U.S. and Canadian Class 8 market is estimated to be between 238,000 to 245,000 trucks this year, with expectations for next year to range from 230,000 to 270,000 [5][6] - The European above 16-ton market is projected to be between 275,000 to 295,000 vehicles this year, with expectations for 2026 to be in the range of 270,000 to 300,000 [6][7] Company Strategy and Development Direction - PACCAR is focused on long-term growth through investments in truck and engine factories, advanced technology, and expanding its parts business [10][11] - The company aims to improve its competitive position with the implementation of Section 232 tariffs, which are expected to reduce costs for customers and enhance market clarity [8][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving market conditions and the potential for increased demand in the truckload sector as customers begin to replace aging equipment [17][25] - The company anticipates that clarity around tariffs and emissions standards will encourage capital allocation towards truck purchases in the upcoming quarters [25][52] Other Important Information - PACCAR plans to invest between $725 to $775 million in capital projects and $450 to $500 million in research and development expenses next year, focusing on clean diesel technology and advanced driver assistance systems [10][11] - The company is also expanding its used truck centers globally to support the sale of premium used trucks [10] Q&A Session Summary Question: Impact of Section 232 tariffs on competitive position - Management indicated that Section 232 tariffs will improve PACCAR's competitive position as most trucks are manufactured in the U.S., and the full benefits will be realized gradually [14][15] Question: Pricing strategy in light of tariffs - Management noted that while tariffs peaked in Q4, they expect to integrate pricing discussions without the need for tariff surcharges, focusing on the value of their trucks [89][100] Question: North American growth outlook and customer conversations - Management highlighted mixed customer sentiments, with positive conditions in vocational and less-than-truckload markets driving orders, while truckload sector challenges persist [25][26] Question: Inventory levels and demand outlook - Management reported healthy inventory levels, with 2.8 months of inventory for PACCAR, and expressed confidence in demand for the first half of next year as customers prepare for potential regulatory changes [85][86] Question: Parts business growth and margin expansion - Management acknowledged challenges in the parts business due to tariffs but emphasized ongoing investments and opportunities for growth in the future [45][80]

Financial Data and Key Metrics Changes - PACCAR achieved revenues of $6.7 billion and net income of $590 million in Q3 2025, with PACCAR Parts achieving record quarterly revenues of $1.72 billion and pre-tax income of $410 million, reflecting a 4% growth in parts revenue compared to the same period last year [4][5][9] - PACCAR's gross margins for trucks, parts, and other were 12.5% in Q3, affected by tariff increases on steel and aluminum, with expectations for fourth quarter margins around 12% as tariffs peak in October [7][8] Business Line Data and Key Metrics Changes - PACCAR Parts reported gross margins of 29.5% and a 4% increase in sales compared to the previous year, with similar growth expected in Q4 [9][10] - PACCAR Financial Services achieved pre-tax income of $126 million, an 18% increase from $107 million reported a year earlier, reflecting a high-quality portfolio and improving used truck results [10] Market Data and Key Metrics Changes - The U.S. and Canadian Class eight market is estimated to be between 238,000 - 245,000 trucks this year, with expectations for next year in the range of 230,000 - 270,000 [5][6] - The European above 16-ton market is projected to be between 275,000 - 295,000 vehicles this year, with expectations for 2026 in the range of 270,000 - 300,000 [6][7] Company Strategy and Development Direction - PACCAR is investing in capacity and services for PACCAR Parts, including a new 180,000 sq ft parts distribution center in Calgary and a new engine remanufacturing center in Columbus, Mississippi [9][10] - The company is focused on long-term growth through investments in truck and engine factories, advanced technology, and clean diesel and alternative powertrains [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving market conditions and the potential for increased demand in the truckload sector as clarity around tariffs and emissions policies develops [5][8] - The company anticipates that the new Section 232 tariffs will benefit customers by reducing costs and improving competitive positioning [8][15] Other Important Information - Capital expenditures for this year are projected to be between $750 million and $775 million, with research and development expenses estimated at $450 million - $465 million [10] - The company is prepared for the EPA's 35 mg NOx standard and is working on new products to support it [28] Q&A Session Summary Question: Impact of Section 232 tariffs on competitive position - Management indicated that Section 232 tariffs will improve PACCAR's competitive position as they manufacture trucks in the U.S., with expectations for stability and benefits to customers [15][16] Question: Pricing strategy in light of tariffs - Management noted that while pricing has been affected by tariffs, they expect opportunities for price increases as the market stabilizes and demand improves [18][19] Question: North American growth outlook and customer conversations - Management highlighted mixed customer feedback, with positive sentiment in the vocational market but challenges in the truckload sector, indicating a potential increase in orders as clarity around regulations improves [26][27] Question: Tariff headwinds and gross profit margin expectations - Management stated that the primary impact on margins in Q4 will be from tariff costs, with expectations for improvement as tariffs decrease [51][52] Question: Inventory levels and demand outlook - Management reported healthy inventory levels, with 2.8 months of inventory for PACCAR, and expressed optimism about demand in the first half of next year as customers finalize their buying plans [85][86]

Financial Data and Key Metrics Changes - PACCAR achieved revenues of $6.7 billion and net income of $590 million in Q3 2025, with PACCAR Parts recording record quarterly revenues of $1.72 billion and pre-tax income of $410 million, reflecting a 4% revenue growth compared to the same period last year [3][4][8] - Gross margins for PACCAR's trucks, parts, and other segments were 12.5% in Q3, impacted by tariff increases on steel and aluminum, with expectations for fourth quarter margins around 12% as tariffs peak in October [5][6] Business Line Data and Key Metrics Changes - PACCAR Parts reported gross margins of 29.5% and a 4% increase in sales compared to the previous year, with similar growth anticipated in Q4 [8] - PACCAR Financial Services achieved pre-tax income of $126 million, an 18% increase from $107 million a year earlier, driven by a high-quality portfolio and improving used truck results [9] Market Data and Key Metrics Changes - The U.S. and Canadian Class 8 truck market is estimated to be between 238,000 to 245,000 trucks for this year, with projections for next year ranging from 230,000 to 270,000 [4] - The European above 16-ton truck market is projected to be between 275,000 to 295,000 vehicles this year, with expectations for 2026 to be in the range of 270,000 to 300,000 [5] Company Strategy and Development Direction - PACCAR is investing in capacity and services for PACCAR Parts, including a new distribution center in Calgary and an engine remanufacturing center in Mississippi [8] - The company is focused on long-term growth through investments in truck and engine factories, advanced technology, and clean diesel and alternative powertrains [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving market conditions and the potential for increased demand in the truckload sector as customers return to replacement cycles [17][24] - The implementation of Section 232 tariffs is expected to enhance PACCAR's competitive position, with management anticipating stability and improved margins as tariffs decrease [13][40] Other Important Information - Capital expenditures for this year are projected to be between $750 million and $775 million, with research and development expenses estimated at $450 million to $465 million [9] - The company is preparing for the EPA's 35 mg NOx standard, with confidence in their ability to meet regulatory requirements [26] Q&A Session Summary Question: Impact of Section 232 tariffs on competitive position - Management indicated that Section 232 tariffs will improve PACCAR's competitive position as they manufacture trucks in the U.S., with full implementation expected to stabilize costs [12][14] Question: Pricing strategy in light of tariffs - Management noted that while tariffs peaked in Q4, they expect to integrate pricing discussions without surcharges, focusing on the value of their trucks [45][78] Question: Customer demand and order outlook - Management highlighted mixed customer responses, with positive sentiment in vocational and less-than-truckload markets, while truckload sector remains cautious [24][40] Question: Inventory levels and destocking needs - Current industry inventory is at four months, with PACCAR's inventory at 2.8 months, indicating a healthy position without excess stock [74] Question: Future growth in parts business - Management expressed confidence in the parts business growth, leveraging AI for better service and anticipating continued demand as truck fleets age [69][70]

Financial Data and Key Metrics Changes - PACCAR achieved revenues of $6.7 billion and net income of $590 million in the third quarter of 2025, with PACCAR Parts recording quarterly revenues of $1.72 billion and pretax income of $410 million, reflecting a 4% revenue growth compared to the same period last year [5][12] - PACCAR Financial Services reported a pretax income of $126 million, an 18% increase from $107 million reported a year earlier [14] Business Line Data and Key Metrics Changes - PACCAR Parts experienced a gross margin of 29.5% and a 4% growth in part sales compared to the same period last year, with similar growth expected in the fourth quarter [12][14] - PACCAR Financial Services continues to provide steady profitability, with a focus on high-quality portfolios and improving used truck results [14] Market Data and Key Metrics Changes - The U.S. and Canadian Class 8 market is estimated to be between 230,000 to 270,000 trucks for next year, with customer demand in the Less Than Truckload and Vocational segments remaining strong [6][7] - The European above 16-ton market is projected to be in the range of 270,000 to 300,000 vehicles for 2026, with the DAF XF truck recognized for its fuel efficiency and driver comfort [7][8] Company Strategy and Development Direction - PACCAR is investing in capacity and services for PACCAR Parts, including a new 180,000 square foot parts distribution center in Calgary and a new engine remanufacturing center in Columbus, Mississippi [12][13] - The company is focused on next-generation clean diesel and alternative powertrains, advanced driver assistance systems, and integrated connected vehicle services as part of its long-term growth strategy [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving market conditions as tariff costs are expected to decrease towards the end of the year, which should enhance competitive positioning [10][11] - The company anticipates that the fourth quarter margins could be around 12% as tariffs peak, with expectations for improved margins in 2026 [9][15] Other Important Information - PACCAR's truck parts and other gross margins were 12.5% in the third quarter, affected by tariff increases on steel and aluminum [8][9] - The company is preparing for the implementation of Section 232, which is expected to reduce tariff costs and improve competitive positioning [20][21] Q&A Session Summary Question: Thoughts on Section 232 and competitive position - Management believes Section 232 will improve competitive positioning as PACCAR manufactures trucks in the U.S. and anticipates gradual implementation benefits [20][21] Question: Pricing strategy amidst tariff changes - Management indicated that pricing discussions will shift away from tariffs to focus on the value of trucks, with expectations for pricing opportunities as the market stabilizes [24][109] Question: North American growth outlook and customer conversations - Management noted mixed customer sentiments, with positive conditions in vocational and LTL markets, while truckload sector remains cautious [33][34] Question: Inventory levels and destocking needs - The industry inventory is improving, with PACCAR's inventory at a healthy level, indicating no immediate need for destocking [104][105] Question: Impact of tariffs on gross profit margins - Management expects tariff impacts to peak in October, with improvements anticipated as tariffs decline through the fourth quarter [64][66] Question: Customer pre-buying behavior related to NOx regulations - Customers are expected to start pre-buying in the fourth quarter as they assess the implications of the 35 milligram NOx standard [114][115]

分组1 - Paccar reported quarterly earnings of $1.12 per share, matching the Zacks Consensus Estimate, but down from $1.85 per share a year ago [1] - The company posted revenues of $6.11 billion for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 1.53%, but down from $7.7 billion year-over-year [2] - Paccar shares have declined approximately 6.3% since the beginning of the year, contrasting with the S&P 500's gain of 14.5% [3] 分组2 - The earnings outlook for Paccar is uncertain, with current consensus EPS estimate at $1.21 on revenues of $6.3 billion for the upcoming quarter and $5.15 on revenues of $26.65 billion for the current fiscal year [7] - The Zacks Industry Rank for Automotive - Domestic is in the bottom 27% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [8]

Executive Summary & Overall Performance [Third Quarter 2025 Financial Highlights](index=1&type=section&id=Third%20Quarter%202025%20Financial%20Highlights) PACCAR reported lower Q3 2025 revenues and net income year-over-year, with strong contributions from PACCAR Parts and Financial Services Third Quarter 2025 Key Financials | Metric | Q3 2025 | Q3 2024 | | :-------------------------------- | :-------------- | :-------------- | | Consolidated Net Sales and Revenues | $6.67 billion | $8.24 billion | | Consolidated Net Income | $590.0 million | $972.1 million | | Diluted EPS | $1.12 | $1.85 | | Global Truck Deliveries | 31,900 units | 44,900 units | | PACCAR Parts Revenues | $1.72 billion (Record) | $1.66 billion | | PACCAR Parts Pretax Income | $410.0 million | $406.7 million | | PACCAR Financial Services Pretax Income | $126.2 million | $106.5 million | | Capital Investments | $156.0 million | N/A | | R&D Expenses | $111.0 million | N/A | | Cash Generated from Operations | $1.53 billion | N/A | - Upcoming Section 232 truck tariffs are scheduled to begin in November, expected to bring clarity to the market[4](index=4&type=chunk) - Over **90%** of PACCAR's U.S. sold trucks are produced in Texas, Ohio, and Washington[4](index=4&type=chunk) [Nine Months 2025 Financial Highlights](index=1&type=section&id=Nine%20Months%202025%20Financial%20Highlights) PACCAR's nine-month 2025 net income of $1.82 billion includes a European litigation charge, with adjusted net income at $2.08 billion Nine Months 2025 Key Financials | Metric | 9 Months 2025 | | :-------------------------------- | :-------------- | | Consolidated Net Sales and Revenues | $21.62 billion | | Consolidated Net Income | $1.82 billion | | Adjusted Net Income (non-GAAP) | $2.08 billion | | Diluted EPS | $3.45 | | Adjusted Diluted EPS (non-GAAP) | $3.95 | | PACCAR Parts Pretax Income | $1.25 billion | | PACCAR Financial Services Pretax Income | $370.5 million | | Capital Investments | $549.0 million | | R&D Expenses | $339.3 million | | Cash Generated from Operations | $3.27 billion | - Net income for the first nine months of 2025 includes a **$264.5 million** after-tax non-recurring charge related to civil litigation in Europe[3](index=3&type=chunk) Global Truck Market Overview [North American Class 8 Truck Market](index=2&type=section&id=North%20American%20Class%208%20Truck%20Market) North American Class 8 truck sales are estimated at 230,000-245,000 for 2025, with Kenworth and Peterbilt holding a **30.3% market share** U.S. and Canada Class 8 Truck Industry Retail Sales Estimates | Year | Estimated Range (Vehicles) | | :--- | :------------------------- | | 2025 | 230,000-245,000 | | 2026 | 230,000-270,000 | - Kenworth and Peterbilt achieved a **30.3% market share** in the U.S. and Canada Class 8 truck industry in 2025[5](index=5&type=chunk) [European Truck Market](index=2&type=section&id=European%20Truck%20Market) European truck registrations for above 16-tonne segment are estimated at 275,000-295,000 for 2025, with DAF XF noted for **7-8% higher fuel efficiency** European Truck Industry Registrations (above 16-tonne) Estimates | Year | Estimated Range (Trucks) | | :--- | :----------------------- | | 2025 | 275,000-295,000 | | 2026 | 270,000-300,000 | - The DAF XF truck was named 'Fleet Truck of the Year' and noted for **7-8% higher fuel efficiency** over competitors[6](index=6&type=chunk) [South American Truck Market](index=3&type=section&id=South%20American%20Truck%20Market) The South American above 16-tonne truck market is projected to remain stable at 95,000-105,000 units for 2025-2026, with DAF and Kenworth valued for durability South American Above 16-tonne Truck Market Projections | Year | Projected Range (Units) | | :--- | :---------------------- | | 2025 | 95,000-105,000 | | 2026 | 95,000-105,000 | - South American customers value DAF and Kenworth trucks for their durability and reliability[9](index=9&type=chunk) [Product Innovations](index=3&type=section&id=Product%20Innovations) Kenworth launched the T880S High Horsepower Vocational Truck for heavy-haul and logging, featuring a set-forward front axle and powerful powertrain - Kenworth launched the T880S High Horsepower Vocational Truck, designed for heavy-haul and logging[9](index=9&type=chunk) - The T880S features a set-forward front axle, longer cab length, and a powertrain with up to **605 hp** and **2,050 lb.-ft. of torque**[9](index=9&type=chunk) Business Segment Performance [PACCAR Parts Division](index=4&type=section&id=PACCAR%20Parts%20Division) PACCAR Parts achieved strong Q3 and nine-month 2025 financial results with increased revenues and pretax profits, expanding its global distribution network PACCAR Parts Financial Performance | Metric | Q3 2025 | Q3 2024 | 9 Months 2025 | 9 Months 2024 | | :---------------- | :-------------- | :-------------- | :-------------- | :-------------- | | Revenues | $1.72 billion | $1.66 billion | $5.14 billion | $5.00 billion | | Pretax Profit | $410.0 million | $406.7 million | $1.25 billion | $1.28 billion | - PACCAR Parts operates **20 global parts distribution centers** (PDCs) totaling over **3.9 million square feet**[12](index=12&type=chunk) - A new **180,000 sq. ft.** PDC in Calgary, Canada, is scheduled to open next year to expedite parts delivery[12](index=12&type=chunk) - Utilizes technology solutions such as Managed Dealer Inventory, connected trucks, and Fleet Services[12](index=12&type=chunk) [PACCAR Financial Services](index=4&type=section&id=PACCAR%20Financial%20Services) PACCAR Financial Services reported strong Q3 and nine-month 2025 results, driven by its high-quality portfolio and an improving used truck market PACCAR Financial Services Financial Performance | Metric | Q3 2025 | Q3 2024 | 9 Months 2025 | 9 Months 2024 | | :---------------- | :-------------- | :-------------- | :-------------- | :-------------- | | Revenues | $565.3 million | $536.1 million | $1.64 billion | $1.56 billion | | Pretax Income | $126.2 million | $106.5 million | $370.5 million | $331.6 million | - PFS manages a portfolio of **229,000 trucks and trailers**, with total assets of **$23.02 billion**[14](index=14&type=chunk) - PFS holds **A+/A1 credit ratings**, providing excellent access to commercial paper and medium-term note markets[14](index=14&type=chunk) - Issued **$2.37 billion** of medium-term notes during the first nine months of 2025[14](index=14&type=chunk) - PFS will open a used truck center in Warsaw, Poland, this year to increase used truck sales in Central Europe[13](index=13&type=chunk) Strategic Investments & Technology Initiatives [Capital Expenditures and Research & Development](index=5&type=section&id=Capital%20Expenditures%20and%20Research%20&%20Development) PACCAR continues substantial capital investments and R&D, having invested **$9.1 billion** over the past decade, focusing on next-gen powertrains and connected services - PACCAR invested **$9.1 billion** in new facilities, innovative products, and new technologies over the past decade[16](index=16&type=chunk) Capital Investments and R&D Expenses | Metric | Q3 2025 | 2025 Projection | 2026 Projection | | :----------------------- | :-------------- | :---------------- | :---------------- | | Capital Investments | $156.0 million | $750-$775 million | $725-$775 million | | R&D Expenses | $111.0 million | $450-$465 million | $450-$500 million | - A new **$35 million**, **50,000 square foot** engine remanufacturing facility in Columbus, Mississippi, will open next year[16](index=16&type=chunk) [Electric Battery Cell Technology](index=5&type=section&id=Electric%20Battery%20Cell%20Technology) PACCAR's Amplify Cell Technologies is building a **2.6 million sq. ft.** battery factory in Mississippi, targeting lithium-iron-phosphate cell production by 2028 for hybrid and electric trucks - Amplify Cell Technologies is constructing a **2.6 million sq. ft.** battery factory in Byhalia, Mississippi[17](index=17&type=chunk) - The factory targets start of lithium-iron-phosphate battery cell production in **2028**[17](index=17&type=chunk) - PACCAR plans to deploy these batteries in Kenworth, Peterbilt, and DAF hybrid and battery electric trucks[17](index=17&type=chunk) [Artificial Intelligence Integration](index=6&type=section&id=Artificial%20Intelligence%20Integration) PACCAR leverages AI to reduce operational costs, enhance performance, and improve customer service, streamlining IT infrastructure and powering predictive analytics for vehicle uptime - PACCAR leverages AI to reduce operational costs and enhance performance[19](index=19&type=chunk) - AI has reduced the time and cost of upgrading IT infrastructure[19](index=19&type=chunk) - Predictive analytics technology uses AI to forecast and implement vehicle service parameters, enhancing vehicle uptime for customers[19](index=19&type=chunk) Consolidated Financial Statements [Summary Statements of Operations](index=7&type=section&id=Summary%20Statements%20of%20Operations) Consolidated net sales, revenues, and net income declined for both Q3 and nine months 2025 year-over-year, primarily due to the Truck, Parts and Other segment, while Financial Services showed growth Summary Statements of Operations (Unaudited) - Key Metrics | Metric | Q3 2025 (Millions) | Q3 2024 (Millions) | 9 Months 2025 (Millions) | 9 Months 2024 (Millions) | | :-------------------------------- | :----------------- | :----------------- | :----------------------- | :----------------------- | | Truck, Parts and Other Net Sales and Revenues | $6,106.5 | $7,703.8 | $19,983.0 | $24,201.1 | | Truck, Parts and Other Income Before Income Taxes | $526.6 | $1,041.1 | $1,689.6 | $3,630.0 | | Financial Services Revenues | $565.3 | $536.1 | $1,641.0 | $1,555.2 | | Financial Services Income Before Income Taxes | $126.2 | $106.5 | $370.5 | $331.6 | | Total Income Before Income Taxes | $743.6 | $1,256.3 | $2,318.6 | $4,251.6 | | Net Income | $590.0 | $972.1 | $1,818.9 | $3,290.0 | | Diluted Net Income Per Share | $1.12 | $1.85 | $3.45 | $6.25 | | Dividends Declared Per Share | $0.33 | $0.30 | $0.99 | $0.87 | - Interest and other (income) expenses, net for the first nine months of 2025 includes a **$350.0 million** charge related to civil litigation in Europe[24](index=24&type=chunk) [Condensed Balance Sheets](index=8&type=section&id=Condensed%20Balance%20Sheets) PACCAR's balance sheet as of September 30, 2025, shows a slight increase in total assets, driven by Financial Services Assets and Property, plant and equipment, with stockholders' equity also increasing Condensed Balance Sheets (Unaudited) - Key Metrics | Metric | Sep 30, 2025 (Millions) | Dec 31, 2024 (Millions) | | :-------------------------------- | :---------------------- | :---------------------- | | Total Assets | $44,201.2 | $43,418.9 | | Cash and marketable securities | $9,068.6 | $9,649.9 | | Financial Services Assets | $23,020.5 | $22,411.5 | | Property, plant and equipment, net | $4,442.4 | $3,985.6 | | Total Liabilities | $24,832.6 | $25,912.0 | | Stockholders' Equity | $19,368.6 | $17,506.9 | | Common Shares Outstanding | 525.2 | 524.4 | [Condensed Cash Flow Statements](index=9&type=section&id=Condensed%20Cash%20Flow%20Statements) For the nine months ended September 30, 2025, net cash from operating activities increased, but a significant rise in net cash used in financing activities led to a larger net decrease in cash and cash equivalents Condensed Cash Flow Statements (Unaudited) - Key Metrics (Nine Months Ended Sep 30) | Metric | 2025 (Millions) | 2024 (Millions) | | :-------------------------------- | :-------------- | :-------------- | | Net Cash Provided by Operating Activities | $3,271.5 | $3,195.2 | | Net Cash Used in Investing Activities | $(1,513.4) | $(2,755.3) | | Net Cash Used in Financing Activities | $(2,687.8) | $(766.4) | | Net Decrease in Cash and Cash Equivalents | $(756.9) | $(332.5) | | Cash and cash equivalents at end of period | $6,303.9 | $6,849.2 | - Net decrease in wholesale receivables on new trucks was **$714.9 million** in 2025, a positive change compared to a net increase of **$837.4 million** in 2024[28](index=28&type=chunk) - Net decrease in debt and other was **$590.0 million** in 2025, contrasting with a net increase of **$1,323.9 million** in 2024[28](index=28&type=chunk) Segment and Geographic Financial Data [Segment Sales and Pretax Profit Analysis](index=10&type=section&id=Segment%20Sales%20and%20Pretax%20Profit%20Analysis) Truck segment sales and pretax profit declined significantly for Q3 and nine months 2025, while PACCAR Parts and Financial Services generally showed revenue growth and consistent pretax profit growth Sales and Revenues by Segment (Unaudited) | Segment | Q3 2025 (Millions) | Q3 2024 (Millions) | 9 Months 2025 (Millions) | 9 Months 2024 (Millions) | | :---------------- | :----------------- | :----------------- | :----------------------- | :----------------------- | | Truck | $4,381.4 | $6,027.0 | $14,850.3 | $19,145.8 | | Parts | $1,724.6 | $1,657.6 | $5,135.4 | $4,997.8 | | Financial Services | $565.3 | $536.1 | $1,641.0 | $1,555.2 | Pretax Profit by Segment (Unaudited) | Segment | Q3 2025 (Millions) | Q3 2024 (Millions) | 9 Months 2025 (Millions) | 9 Months 2024 (Millions) | | :---------------- | :----------------- | :----------------- | :----------------------- | :----------------------- | | Truck | $102.5 | $630.8 | $776.2 | $2,349.7 | | Parts | $410.0 | $406.7 | $1,253.0 | $1,276.3 | | Financial Services | $126.2 | $106.5 | $370.5 | $331.6 | - Investment Income and Other for the nine months ended September 30, 2025, includes a **$350.0 million** charge related to civil litigation in Europe[30](index=30&type=chunk) [Geographic Revenue Distribution](index=10&type=section&id=Geographic%20Revenue%20Distribution) Geographic revenue for Q3 and nine months 2025 decreased in the United States, Canada, and 'Other' regions year-over-year, while Europe saw a slight Q3 increase but a nine-month decline Geographic Revenue (Unaudited) | Region | Q3 2025 (Millions) | Q3 2024 (Millions) | 9 Months 2025 (Millions) | 9 Months 2024 (Millions) | | :----------------------- | :----------------- | :----------------- | :----------------------- | :----------------------- | | United States and Canada | $3,980.4 | $5,061.6 | $13,356.2 | $16,315.1 | | Europe | $1,676.5 | $1,605.5 | $4,916.3 | $5,155.7 | | Other | $1,014.9 | $1,572.8 | $3,351.5 | $4,285.5 | | **Total** | **$6,671.8** | **$8,239.9** | **$21,624.0** | **$25,756.3** | [New Truck Delivery Statistics](index=10&type=section&id=New%20Truck%20Delivery%20Statistics) New truck deliveries significantly decreased in the United States, Canada, and 'Other' regions for both Q3 and nine months 2025, with European deliveries remaining stable in Q3 but declining over nine months New Truck Deliveries (Unaudited) | Region | Q3 2025 (Units) | Q3 2024 (Units) | 9 Months 2025 (Units) | 9 Months 2024 (Units) | | :----------------------- | :-------------- | :-------------- | :-------------------- | :-------------------- | | United States and Canada | 17,100 | 25,900 | 62,300 | 84,100 | | Europe | 10,100 | 10,000 | 31,100 | 33,100 | | Other | 4,700 | 9,000 | 17,900 | 24,200 | | **Total** | **31,900** | **44,900** | **111,300** | **141,400** | Non-GAAP Financial Measures Reconciliation [Explanation and Reconciliation of Adjusted Net Income](index=11&type=section&id=Explanation%20and%20Reconciliation%20of%20Adjusted%20Net%20Income) This section reconciles GAAP net income to adjusted net income (non-GAAP) for the nine months ended September 30, 2025, by excluding a **$264.5 million** after-tax charge related to European civil litigation - Adjusted net income (non-GAAP) and adjusted net income per diluted share (non-GAAP) exclude a charge for EC-related claims[36](index=36&type=chunk) - An additional pre-tax charge of **$350.0 million** (**$264.5 million** after-tax) was recorded in the first quarter of 2025 for estimable remaining costs related to civil litigation in Europe[37](index=37&type=chunk) Reconciliation of GAAP to Non-GAAP Financial Measures (Nine Months Ended Sep 30, 2025) | Metric | Amount (Millions) | Per Diluted Share | | :-------------------------- | :---------------- | :---------------- | | Net income (GAAP) | $1,818.9 | $3.45 | | EC-related claims, net of taxes | $264.5 | $0.50 | | Adjusted net income (non-GAAP) | $2,083.4 | $3.95 |