PACCAR Q3 Earnings Match Expectations, Capex Outlook Revised

PACCAR Inc. PCAR recorded earnings of $1.12 per share for the third quarter of 2025, matching the Zacks Consensus Estimate but declining from $1.85 reported in the year-ago period. 

Consolidated revenues (including trucks and financial services) came in at $6.67 billion, down from $8.24 billion in the corresponding quarter of 2024. Sales from Trucks, Parts and Others were $6.11 billion.

PACCAR Inc. Price, Consensus and EPS Surprise

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

PACCAR’s Q3 Earnings Details

Revenues from the Trucks segment totaled $4.38 billion in the third quarter, lower than the prior-year quarter’s $6.03 billion. The metric, however, surpassed our estimate of $4.28 billion. Global truck deliveries came in at 31,900 units, lower than our projection of 32,153 units and down from 44,900 units delivered in the corresponding quarter of 2024. The segment’s pre-tax income was $102.5 million, which fell short of our estimate of $326.2 million and plunged 83.8% 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 matched our estimate. The segment’s pre-tax income came in at $410 million, up from $406.7 million reported in the year-ago period. The metric also topped our forecast of $325.5 million.

Financial Services segment revenues came in at $565.3 million, higher than the year-ago quarter’s $536.1 million and topped our estimate of $560.8 million. Pre-tax income increased to $126.2 million from $106.5 million reported in the year-ago period and also topped our projection of $118.3 million.

Selling, general and administrative expenses in the third quarter of 2025 decreased to $140.3 million from $144.3 million in the prior-year period. Research & development (R&D) expenses were $111 million compared with the year-earlier quarter’s $115 million.

PACCAR’s cash and marketable debt securities amounted to $9.07 billion as of Sept. 30, 2025, compared with $9.65 billion as of Dec. 31, 2024.

Capex for 2025 is now envisioned in the band of $750-$775 million compared with the previous estimate of $750-$800 million. R&D expenses are estimated in the range of $450-$465 million, down from the previous estimate of $450-$480 million.

PACCAR’s Zacks Rank & Key Picks

PCAR carries a Zacks Rank #5 (Strong Sell) at present.

Some better-ranked stocks in the auto space are Mobileye Global Inc. MBLY, Autoliv, Inc. ALV and Standard Motor Products, Inc. SMP. MBLY sports a Zacks Rank #1 (Strong Buy), while ALV and SMP carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for MBLY’s fiscal 2025 earnings implies year-over-year growth of 36%. EPS estimates for 2025 and 2026 have improved a cent in the past 60 and 30 days, respectively.

The Zacks Consensus Estimate for ALV’s fiscal 2025 earnings implies year-over-year growth of 13.34%. EPS estimates for fiscal 2025 and 2026 have improved 11 cents and 16 cents, respectively, in the past seven days.

The Zacks Consensus Estimate for SMP’s 2025 sales and earnings implies year-over-year growth of 20.94% and 18.61%, respectively. EPS estimate for 2025 has improved 5 cents in the past 60 days. The 2026 EPS estimate improved 2 cents in the past seven days.

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This article originally published on Zacks Investment Research (zacks.com).

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