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Paccar 2025 Q1 Earnings Misses Targets with Net Income Down 57.7%

Daily EarningsFriday, May 2, 2025 7:10 am ET
38min read
PCAR Trend
Paccar (PCAR) reported its fiscal 2025 Q1 earnings on May 01st, 2025. Despite achieving revenues of $7.44 billion, Paccar missed analyst expectations, reporting adjusted earnings per share (EPS) of $1.46, below the consensus estimate of $1.59. The company projected capital expenditures between $700-$800 million and research and development expenses of $450-$480 million for 2025, aligning with market forecasts. Paccar also noted ongoing investments in next-generation powertrains as a cornerstone for future growth, amidst challenges posed by tariffs and economic uncertainties.

Revenue

Paccar's total revenue in the first quarter of 2025 decreased by 14.9% to $7.44 billion compared to $8.74 billion in the same period last year. The truck segment generated $5.23 billion in revenue, while the parts division contributed a record $1.69 billion. Financial services added $528 million, and other segments accounted for a $2 million decrease, culminating in the overall revenue figure.

Earnings/Net Income

Paccar's EPS fell significantly by 57.9% to $0.96 in 2025 Q1 from $2.28 in 2024 Q1. Concurrently, net income dropped 57.7% to $505.10 million from $1.20 billion in the first quarter of 2024. The decline in EPS and net income reflects ongoing challenges in the market.

Post Earnings Price Action Review

The backtest analysis of Paccar (PCAR) stock price indicates a positive correlation between earnings beats and stock price appreciation. Following earnings reports, revenue, net income, and EPS beats show a consistent trend of stock price increases. Within three days, the stock has a 35% chance of appreciation, which rises to 45% over ten days and 65% over thirty days. The average return on investment is modest, with a 0.01% increase in the three-day window, growing to 1.08% over ten days and 1.90% across thirty days. The maximum observed return following earnings beats was 6.62% over thirty days, highlighting potential upside for medium-term investors. Overall, Paccar's stock generally performs well when surpassing revenue, net income, and EPS expectations, providing a basis for investor decisions.

CEO Commentary

“PACCAR reported good revenues and net income in the first quarter of 2025,” said Preston Feight, Chief Executive Officer. He highlighted that Peterbilt, Kenworth, and DAF delivered good results, while PACCAR Parts achieved record revenue and strong profits. Feight emphasized the exciting and dynamic technological changes within the truck industry, noting that PACCAR’s long-term investments in new truck models and advanced manufacturing will support both customer and company growth. He expressed pride in the employees and dealers for delivering outstanding trucks and solutions, reflecting an optimistic outlook for continued performance despite current market uncertainties.

Guidance

PACCAR projects capital expenditures in the range of $700-$800 million and research and development expenses estimated to be between $450-$480 million for 2025. The company anticipates Class 8 truck industry retail sales in the U.S. and Canada to fall between 235,000 and 265,000 trucks. Additionally, Feight indicated that ongoing investments in next-generation internal combustion, hybrid, and battery-electric powertrains will be crucial for future growth.

Additional News

In the wake of its earnings report, PACCAR Inc declared a regular quarterly cash dividend of thirty-three cents per share, payable on June 4, 2025, to stockholders of record. This decision reflects the company's commitment to returning value to shareholders amidst challenging market conditions. Additionally, PACCAR announced plans to expand its DAF truck factory in Ponta Grossa, Brazil, by 65,000 sq. ft., aimed at increasing capacity and enhancing engine production capabilities. This expansion aligns with PACCAR's strategy to grow its footprint in the South American market, further supported by its investment in a new engine remanufacturing facility in Columbus, Mississippi, which will provide reliable and cost-effective powertrains for current vehicles.
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fmaz008
05/02
Diversifying with PCAR, $TSLA, and $AAPL. Playing it safe with trucking giants during market turbulence.
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MysteryMan526
05/02
Dividend steady, but $PCAR's growth shaky now.
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repairmanjack2023
05/02
@MysteryMan526 True, $PCAR's growth looks shaky right now.
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ajaxbeta
05/02
@MysteryMan526 What do you think is holding back $PCAR's growth?
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THenrich
05/02
Holding $PCAR long-term, betting on truck rebound.
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AlmightyAntwan12
05/02
Paccar's parts division flexing hard, but that EPS hit hurts. Time to dig deeper into those balance sheets.
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TickernomicsOfficial
05/02
@AlmightyAntwan12 EPS dip tough, but parts rev strong.
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TenMillionYears
05/02
Paccar's EPS tanked, time to reconsider $PCAR?
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Ok-Afternoon-2113
05/02
@TenMillionYears I held PCAR last year, sold at a loss. Regretted it seeing the dip. Missed opportunity for long-term growth.
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BlazingCentury
05/02
@TenMillionYears What’s your time horizon? Holding long or looking for a quick bounce back?
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ashish1512
05/02
Tariffs are brutal, Paccar needs tariff relief 🤔
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anti-faxerr
05/02
@ashish1512 Tariffs hit hard, Paccar's gotta adapt.
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Putrid-Bumblebee3417
05/02
@ashish1512 Yeah, tariffs suck.
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Traditional_Wave8524
05/02
Tariffs and uncertainties are rough, but PCAR's long-term vision seems solid with those next-gen powertrains.
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Interesting_Mix_3535
05/02
@Traditional_Wave8524 Think PCAR can recover soon?
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PancakeBreakfest
05/02
Next-gen powertrains could be $PCAR's game-changer.
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Tiger_bomb_241
05/02
Paccar's parts segment flexing hard with record revenue. 🚀
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Outrageous-Rate-4080
05/02
@Tiger_bomb_241 Parts segment pumping, but EPS tanked.
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Fantastic_Vast_6089
05/02
Damn!!I profited significantly from the signal generated by PCAR stock.
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