PACCAR shares fall 3% as Q3 earnings fall short of expectations

BELLEVUE, Wash. - PACCAR Inc. (NASDAQ:PCAR) shares dropped 3% premarket Tuesday after the truck manufacturer reported third-quarter earnings that fell short of analyst expectations, despite revenue exceeding forecasts.

The company reported earnings of $1.12 per share for the third quarter, missing analyst estimates of $1.16, while revenue came in at $6.67 billion, surpassing the consensus forecast of $6.18 billion.

PACCAR’s third-quarter net income fell to $590 million compared to $972.1 million in the same period last year, representing a 39% decline. Revenue decreased to $6.67 billion from $8.24 billion in the third quarter of 2024, a 19% drop.

"PACCAR delivered good revenues and net income in the third quarter of 2025," said Preston Feight, chief executive officer. "PACCAR Parts and PACCAR Financial Services continued to deliver excellent performance and strong profits."

The company’s truck segment saw a significant decline in pretax profit, which fell to $102.5 million from $630.8 million a year earlier. Global truck deliveries decreased to 31,900 units during the quarter, down from 44,900 units in the same period last year.

PACCAR Parts remained a bright spot, achieving record quarterly revenues of $1.72 billion and pretax income of $410 million. The Financial Services division reported pretax income of $126.2 million, up from $106.5 million in the third quarter of 2024.

Feight noted, "The new Section 232 truck tariffs that are scheduled to begin in November should bring clarity to the market in the coming months. PACCAR is proud to produce over 90% of its U.S. sold trucks in Texas, Ohio and Washington."

For 2025, PACCAR estimates U.S. and Canada Class 8 truck industry retail sales to be in the range of 230,000-245,000 vehicles, with an expected increase to 230,000-270,000 vehicles in 2026.

The company continues to invest in future technologies, including its battery joint venture, Amplify Cell Technologies, which is constructing a 2.6 million sq. ft. battery factory in Mississippi targeting production start in 2028.

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