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PACCAR Q2 Earnings Surpass Expectations, Sales Decline Y/Y

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Key Takeaways

  • PCAR posted Q2 EPS of $1.37, topping estimates but down from $2.13 in the prior-year quarter.
  • Truck revenues declined to $5.24B, yet exceeded projections; deliveries fell to 39,300 units.
  • Parts and Financial segments both topped estimates, with improved revenues and pre-tax income performance.

PACCAR Inc. (PCAR - Free Report) recorded earnings of $1.37 per share for the second quarter of 2025, which topped the Zacks Consensus Estimate of $1.28 but declined from $2.13 reported in the year-ago period. 

Consolidated revenues (including trucks and financial services) came in at $7.51 billion, down from $8.77 billion in the corresponding quarter of 2024. Sales from Trucks, Parts and Others were $6.96 billion.

PACCAR Inc. Price, Consensus and EPS Surprise

PACCAR Inc. Price, Consensus and EPS Surprise

PACCAR Inc. price-consensus-eps-surprise-chart | PACCAR Inc. Quote

Key Takeaways

Revenues from the Trucks segment totaled $5.24 billion in the second quarter, lower than the prior-year quarter’s $6.58 billion. The metric, however, surpassed our estimate of $5.03 billion. Global truck deliveries came in at 39,300 units, higher than our projection of 38,203 units but down from 48,400 units delivered in the corresponding quarter of 2024. The segment’s pre-tax income was $308.8 million, which fell short of our estimate of $412 million and plunged 63.2% year over year.

Revenues from the Parts segment totaled $1.72 billion in the reported quarter, which increased from the year-earlier period’s $1.66 billion and topped our estimate of $1.7 billion. The segment’s pre-tax income came in at $416.5 million, up from $413.8 million reported in the year-ago period. The metric also topped our forecast of $335.3 million.

Financial Services segment revenues came in at $547.7 million, higher than the year-ago quarter’s $509.8 million and our estimate of $536.5 million. Pre-tax income increased to $123.2 million from $111.2 million reported in the year-ago period and also topped our projection of $112.3 million.

Selling, general and administrative expenses in the second quarter of 2025 decreased to $139.2 million from $142.7 million in the prior-year period. Research & development expenses were $112.9 million compared with the year-earlier quarter’s $117.1 million.

PACCAR’s cash and marketable debt securities amounted to $8.28 billion as of June 30, 2025, compared with $9.65 billion as of Dec. 31, 2024.

Capex for 2025 is now envisioned in the band of $750-$800 million compared with the previous estimate of $700-$800 million. R&D expenses are estimated in the range of $450-$480 million.

PACCAR’s Zacks Rank & Key Picks

PCAR carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the auto space are Geely Automobile Holdings Limited (GELYY - Free Report) , Adient plc (ADNT - Free Report) and Ferrari N.V. (RACE - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for GELYY’s fiscal 2025 sales implies year-over-year growth of 94.14%. EPS estimates for 2025 and 2026 have improved 43 cents and 68 cents, respectively, in the past 30 days.

The Zacks Consensus Estimate for ADNT’s fiscal 2025 earnings implies year-over-year growth of 1.63%. EPS estimates for fiscal 2025 and 2026 have improved 5 cents and 15 cents, respectively, in the past seven days.

The Zacks Consensus Estimate for RACE’s 2025 sales and earnings implies year-over-year growth of 13.56% and 12.12%, respectively. EPS estimates for 2025 have improved 2 cents in the past seven days.


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