It has been about a month since the last earnings report for Paccar (PCAR). Shares have added about 1.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Paccar due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for PACCAR Inc. before we dive into how investors and analysts have reacted as of late.
PACCAR Q4 Earnings In Line With Estimates
PACCAR recorded fourth-quarter 2025 earnings of $1.06 per share, matching the Zacks Consensus Estimate but declining from $1.66 per share reported in the year-ago period.
Consolidated revenues (including trucks and financial services) were $6.8 billion, down from $7.91 billion in the corresponding quarter of 2024. Sales from Trucks, Parts and Others amounted to $6.25 billion.
Key Takeaways
Revenues from the Trucks segment totaled $4.52 billion in the fourth quarter, lower than the prior-year quarter’s $5.69 billion. The metric, however, surpassed our estimate of $4.43 billion. Global truck deliveries totaled 32,900 units, higher than our projection of 32,145 units but lower than 43,900 units delivered in the corresponding quarter of 2024. The segment’s pre-tax income was $94.6 million, which fell short of our estimate of $237.3 million and plunged 81.2% year over year.
Revenues from the Parts segment totaled $1.74 billion, up from the year-earlier period’s $1.67 billion. Our estimate was $1.75 billion. The segment’s pre-tax income totaled $415 million, down from $428.2 million reported in the year-ago period. The metric, however, topped our forecast of $332.1 million.
Financial Services segment revenues amounted to $568.7 million, higher than the year-ago quarter’s $544.3 million but lower than our estimate of $576.8 million. Pre-tax income increased to $114.9 million from $104 million reported in the year-ago period but fell short of our projection of $128.1 million.
Selling, general and administrative expenses increased to $153.8 million from $150.4 million in the prior-year period. Research & development (R&D) expenses totaled $106.2 million compared with the year-earlier quarter’s $115 million.
PACCAR’s cash and marketable debt securities amounted to $9.25 billion as of Dec. 31, 2025, compared with $9.65 billion as of Dec. 31, 2024.
Capex and R&D expenses for 2026 are envisioned in the band of $725-$775 million and $450-$500 million, respectively.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -16.13% due to these changes.
VGM Scores
At this time, Paccar has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Paccar has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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PACCAR Inc. (PCAR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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