PACCAR Q1 Earnings Miss Expectations, Revenues Decline Y/Y

PACCAR Inc. PCAR recorded earnings of $1.46 per share for the first quarter of 2025, which missed the Zacks Consensus Estimate of $1.57 and declined from $2.27 reported in the year-ago period. 

Consolidated revenues (including trucks and financial services) came in at $7.44 billion, down from $8.74 billion in the corresponding quarter of 2024. Sales from Trucks, Parts and Others were $6.91 billion.

PACCAR Inc. Price, Consensus and EPS Surprise

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

Key Takeaways

Revenues from the Trucks segment totaled $5.23 billion in the first quarter, lower than the prior-year quarter’s $6.54 billion. The metric also missed our estimate of $5.43 billion. Global truck deliveries came in at 40,100 units, lower than our projection of 40,139 units and down from 48,110 units delivered in the corresponding quarter of 2024. The segment’s pre-tax income was $364.9 million, which fell short of our estimate of $551.1 million and plunged 58.6% year over year.

Revenues from the Parts segment totaled $1.69 billion in the reported quarter, up from the year-earlier period’s $1.68 billion and matched our estimate. The segment’s pre-tax income came in at $426.5 million, down from $455.8 million reported in the year-ago period. The metric, however, topped our forecast of $339 million.

Financial Services segment revenues came in at $528 million, higher than the year-ago quarter’s $509.3 million but lower than our estimate of $553 million. Pre-tax income increased to $121.1 million from $113.9 million reported in the year-ago period and also topped our projection of $118 million.

Selling, general and administrative expenses in the first quarter of 2025 decreased to $143.3 million from $147.6 million in the prior-year period. Research & development (R&D) expenses were $115.4 million compared with the year-earlier quarter’s $105.5 million.

PACCAR’s cash and marketable debt securities amounted to $8.1 billion as of March 31, 2025, compared with $9.65 billion as of Dec. 31, 2024.

Capex for 2025 is envisioned in the band of $700-$800 million. R&D expenses are now estimated in the range of $450-$480 million compared with the previous estimate of $460-$500 million.

(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

PCAR’s Zacks Rank & Key Picks

PACCAR carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the auto space are Hesai Group HSAI and Standard Motor Products, Inc. SMP. HSAI sports a Zacks Rank #1 (Strong Buy), while SMP carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for HSAI’s 2025 earnings indicates year-over-year growth of 336.36%, respectively. EPS estimates for 2026 have improved 12 cents in the past seven days.

The Zacks Consensus Estimate for SMP’s 2025 sales and earnings implies year-over-year growth of 16.61% and 10.73%, respectively. EPS estimates for 2025 have improved 5 cents in the past 60 days. EPS estimates for 2026 have improved by a penny in the past 30 days.

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

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