Paccar Q1 Profit Dives on Demand Slump, European Charge
[Stay on top of transportation news: .]
Paccar Inc. profit halved year over year in the on the back of a slump in sales and a charge against earnings.
Kenworth and Peterbilt’s parent company cut its expectations for U.S. Class 8 retail sales by 5.7% as a result of the dive in demand.
Bellevue, Wash.-based Paccar reported net income of $505.1 million in the first three months of 2025, less than half the $1.2 billion profit posted in the year-ago period.
Paccar posted revenue of $7.44 billion in Q1, compared with $8.74 billion in the same period in 2024.
The company sold 22,200 Kenworth and Peterbilt trucks in the U.S. and Canada in the most recent quarter, down 24.7% compared with 29,500 trucks in the year-ago period.
“The North American truck market is being affected by uncertain economic conditions and the impact of new tariffs,” said Kevin Baney, Paccar executive vice president.
U.S. and Canadian Class 8 truck industry retail sales are now estimated to be in a range of 235,000-265,000 trucks in 2025. When releasing its fourth-quarter 2024 results, Paccar said it expected sales to be in a range of 250,000-280,000 trucks in 2025.
Globally, Paccar sold 40,100 trucks in Q1, a decrease of 16.6% from 48,100 trucks a year earlier. In Europe, Paccar sold 10,400 trucks, down 10.3% from 11,600 trucks in the year-ago period.
Earnings were also hurt by a $264.5 million after-tax charge related to civil litigation in Europe. The litigation follows a 2016 European Commission price-fixing ruling.
“Paccar reported good revenues and net income in the first quarter of 2025,” said CEO Preston Feight. “Peterbilt, Kenworth and DAF delivered good results, Paccar Parts delivered record revenue and strong profits, and Paccar Financial Services achieved good results due to its high-quality portfolio.”
Want more news? Listen to today's daily briefing belowor go here for more info:
