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- **Revenue & Profit Growth**: Q3 net income $590M (+15% YoY); Parts revenue $1.72B (+4% YoY). 
- **Tariff Relief**: Section 232 reduces U.S. truck tariffs, cutting Q4 costs by $80M (from peak). 
- **Market Outlook**: 2026 Class 8 market 230K-270K units; Europe/South America stable. 
- **Margins**: Q3 gross margin 12.5%; Q4 expected ~12% before improvement in 2026. 
- **Strategic Advantage**: 90% U.S. production vs. peers' global sourcing. 
- **Investment Focus**: $750M+ in factories; R&D into electric, ADAS, and fuel efficiency. 


**【CEO Summary Section】**
- PACCAR reported Q3 2025 revenue of $6.7 billion and net income of $590 million, driven by strong performance in PACCAR Parts and Financial Services. 
- PACCAR Parts achieved record quarterly revenue of $1.72 billion (+4% YoY) with pretax income of $410 million. 
- PACCAR Financial Services delivered pretax income of $126 million (+18% YoY). 
- U.S./Canada Class 8 truck market estimated at 230,000-245,000 units for 2025, with 2026 outlook of 230,000-270,000 units. 
- Truckload market remains challenging, while LTL and vocational segments show strength. 
- Q3 gross margin was 12.5%, with tariffs peaking in Q4 at ~12% before expected improvement in 2026. 
- New Section 232 tariffs will reduce costs for U.S.-built trucks, benefiting PACCAR's 90% domestic production. 

**【CFO Financial Commentary】**
- Q3 2025 GAAP net income: $590 million; Non-GAAP EPS: $1.08 (exceeds expectations). 
- Truck, Parts, and Other gross margin: 12.5% (down 120bps YoY due to tariffs). 
- Tariff-related headwinds: $75 million in Q3, peaking at $80 million in Q4 before declining. 
- 2025 capital expenditures: $750-775 million; R&D: $450-465 million. 
- 2026 capex: $725-775 million; R&D: $450-500 million. 
- Investments in next-gen powertrains, ADAS, and factory automation. 

**【Q&A Highlights】**
- **Section 232 Impact**: 
  - Tariffs on trucks built in U.S. (TX, OH, WA) will be reduced, improving competitiveness. 
  - Tariffs peaked in Q4 2025 at $80 million, expected to decline gradually through 2026. 
  - Rebates will flow through pricing, eliminating $3,500-$4,000 tariff surcharges. 
- **Market Outlook**: 
  - 2026 U.S./Canada Class 8 market: 230,000-270,000 units (driven by 35mg NOx standard). 
  - Europe: 275,000-295,000 units; South America: 95,000-105,000 units. 
  - Q4 2025 deliveries expected to remain flat at ~32,000 units. 
- **NOx Standard Uncertainty**: 
  - Current law assumes 35mg standard; potential rollback to 200mg could delay prebuy. 
  - PACCAR prepared for both scenarios with compliant engines. 
- **Parts Business**: 
  - 4% YoY growth despite soft truck market; gross margin 29.5%. 
  - New distribution centers in Calgary (Canada) and Columbus, MS to expand capacity. 
  - Used truck sales at premium prices ($126M pretax income). 
  - 2026 outlook: growth driven by aging truck fleet and 35mg NOx compliance. 


PACCAR Inc (PCAR) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

PCAR

PCAR fundamentals

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