Paccar Financial Services, the financial division of the truck manufacturer Paccar, experienced a rise in both revenue and assets during the third quarter, even amid a decline in sales at its parent company.
In the third quarter, Paccar Financial reported a pretax income of $126.2 million, reflecting an 18.5% increase from the previous year, driven by robust demand and premium pricing for used Kenworth, Peterbilt, and DAF trucks, according to executive vice president Kevin Baney during today’s earnings call.
He stated, “This demonstrates our high-quality portfolio and the improving performance of used trucks. Like Paccar Parts, Paccar Financial remains a reliable source of profitability throughout all business cycle phases.”
The strong performance in the used truck segment was a key factor for Paccar Financial, which operates 13 used truck centers globally, with a new facility set to open in Warsaw, Poland, this year, according to Bailey.
Paccar forecasts that the U.S. and Canadian Class 8 market will range from 230,000 to 245,000 trucks this year, with an expected increase to 230,000 to 270,000 next year, as noted by Chief Executive Preston Feight during the call.
He remarked, “There is still uncertainty in the truckload market. The truck market in the U.S. and Canada next year could surpass this year as we gain clarity on tariffs, emissions policies, and potential freight market improvements.”
Financial Overview
For Q3, Paccar Financial and its parent company reported:
- Paccar Financial revenue at $565.3 million, up 5.4% year-over-year;
- A provision for losses on receivables of $36.5 million for Q3, a 63% increase YoY;
- Total assets at $23 billion, marking a 2.7% YoY increase;
- Paccar’s consolidated net sales and revenue at $6.7 billion, down 19.1% YoY; and
- A net income of $590 million, down 39.3% YoY.
Additionally, Paccar Financial oversees a portfolio of 229,000 trucks and trailers, which includes a fleet of 39,000 vehicles through PacLease, its North American and European truck leasing arm. The company has also issued $2.4 billion in medium-term notes in the first nine months of 2025.
MARKET OUTLOOK: Paccar Inc. shares [Nasdaq: PCAR] closed at $99.85 today, down 2.43% or $2.37 from the day’s start. The company has a market capitalization of $51.19 billion.
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