PACCAR Posts Strong Q1 Earnings Amid Economic Uncertainty

PACCAR, the renowned manufacturer of heavy-duty trucks and related services, has announced its first-quarter 2025 earnings, showcasing resilience in the face of economic uncertainty. The company reported revenues of $7.4 billion and adjusted net income of $770 million, with record-breaking performances from PACCAR Parts and strong financial services results.

The PACCAR Parts division achieved remarkable quarterly revenues of $1.7 billion and pretax income of $427 million, demonstrating the continued growth and success of this business segment after a record-setting 2024. The division's excellent gross margins of 30.7% also underscored its operational efficiency.

PACCAR Financial Services delivered a robust pretax income of $121 million, a 6% increase from the same period last year. This performance is attributed to the company's diversified financial services offerings and its ability to navigate uncertain economic conditions effectively.

The North American truck market is experiencing significant headwinds due to uncertain economic conditions and the impact of new tariffs, with the U.S. and Canadian Class 8 market estimated to be in a range of 235,000 to 265,000 trucks this year. Conversely, Europe's above-16-tonne market is expected to grow within a projected range of 270,000 to 300,000 vehicles.

PACCAR's truck deliveries were 40,100 units during the first quarter, with expectations for 37,000 to 39,000 trucks in the second quarter. The company's gross margins are being impacted by economic uncertainties and tariffs, with a range of 13% to 14% anticipated for the second quarter.

Looking ahead to the second half of the year, PACCAR is optimistic about increased customer demand as policy and emissions regulations become more stable. The company's industry-leading trucks, expanding parts business, best-in-class financial services, and advanced technology strategy position it well for an excellent future.