PCAR PACCAR Inc

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) January 28, 2025

PACCAR Inc

(Exact name of registrant as specified in its charter)

 

Delaware		001-14817		91-0351110
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

 

777 106th Avenue NE, Bellevue, WA 98004

(Address of principal executive offices) (Zip Code)

 

Registrant's telephone number, including area code (425) 468-7400

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common stock, $1 par value	PCAR	The Nasdaq Stock Market

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

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Item 2.02 Results of Operations and Financial Condition

On January 28, 2025 PACCAR Inc (the “Registrant”) issued a press release announcing its financial results for the fourth quarter of 2024 and announcing that it would hold a conference call with securities analysts to discuss fourth quarter 2024 earnings to be held that same day as more fully described in the press release attached as Exhibit 99.1 to this report.

The information in this Current Report on Form 8-K, including Exhibit 99.1 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any filing or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing or document.

Item 9.01 Financial Statements and Exhibits

The following is furnished as an Exhibit to this report.

 

Exhibit Number	Description
99.1	Press release issued January 28, 2025.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

			PACCAR Inc
Date: January 28, 2025		By:	/s/ B. J. Poplawski
			B. J. Poplawski
			Vice President and Controller

 

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Exhibit 99.1

 

		PACCAR Inc
		Public Affairs Department
		P.O. Box 1518
		Bellevue, WA 98009
		Contact:		Ken Hastings
				(425) 468-7530
				ken.hastings@paccar.com

 

FOR IMMEDIATE RELEASE

 

PACCAR Achieves Strong Annual Revenues and Net Income

January 28, 2025, Bellevue, Washington – “PACCAR reported strong annual revenues and net income in 2024,” said Preston Feight, chief executive officer. “PACCAR’s results reflect the enhanced profitability of the latest generation of DAF, Peterbilt and Kenworth trucks, record PACCAR Parts revenue and profit, and good financial services performance. I am very proud of our employees and dealers who delivered outstanding trucks and transportation solutions to our customers. In 2025, PACCAR is celebrating the 120th anniversary of the company’s founding in 1905 by William Pigott.”

PACCAR achieved quarterly revenues of $7.91 billion in the fourth quarter of 2024, compared to the $9.08 billion reported in the same period in 2023. The company earned $872.0 million ($1.66 per diluted share) in the fourth quarter of 2024, compared to $1.42 billion ($2.70 per diluted share) earned in the fourth quarter of 2023. PACCAR achieved strong revenues of $33.66 billion in 2024, compared to revenues of $35.13 billion in 2023. The company earned $4.16 billion ($7.90 per diluted share) in 2024, compared to $4.60 billion ($8.76 per diluted share) in 2023. Included in 2023 was a $446.4 million after-tax, non-recurring charge related to civil litigation in Europe.1 Harrie Schippers, president and chief financial officer, noted, “PACCAR’s financial results in 2024 were the second best in company history.”

PACCAR Increases Regular Quarterly Dividend

PACCAR declared cash dividends of $4.17 per share during 2024. This included a $3.00 per share year-end cash dividend paid on January 8, 2025. In December 2024, PACCAR announced a 10% increase to its regular quarterly cash dividend, to 33 cents per share, payable on March 5, 2025. “PACCAR has generated excellent financial results and shareholder returns for many years due to its premium quality vehicles, and strong performance by PACCAR Parts and PACCAR Financial Services,” shared Mark Pigott, executive chairman.

Business Highlights – 2024

 

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Peterbilt 589 Truck

Financial Highlights – Fourth Quarter 2024

Highlights of PACCAR’s financial results during the fourth quarter of 2024 include:

Financial Highlights – Full Year 2024

Highlights of PACCAR’s financial results during 2024 include:

 

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Global Truck Markets

Kenworth and Peterbilt achieved excellent U.S. and Canada Class 8 retail sales market share of 30.7% in 2024. U.S. and Canada Class 8 truck industry retail sales were 268,000 units in 2024 and are estimated to be in a range of 250,000-280,000 trucks in 2025. “Infrastructure spending is driving steady demand for Kenworth and Peterbilt’s industry-leading vocational trucks,” said Laura Bloch, PACCAR senior vice president. “The less-than-truckload segment is also performing well.”

Kevin Baney, PACCAR executive vice president, added, “Kenworth, Peterbilt and DAF trucks deliver premium quality, industry-leading fuel efficiency and low operating costs to our customers. PACCAR is investing in the next generation of diesel and alternative powertrains, and aftermarket transportation solutions, that enable customers to achieve their operational and environmental goals.”

Kenworth T680 Truck

Harald Seidel, DAF president, said, “Customers appreciate the industry-leading fuel efficiency and driver comfort of DAF trucks. DAF trucks have a competitive advantage in the European truck market due to an innovative, aerodynamic design with a spacious, luxurious cab interior.” European above 16-tonne truck industry registrations were 316,000 trucks in 2024 and are estimated to be in the range of 270,000-300,000 trucks in 2025.

DAF XG+ Truck

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The South American above 16-tonne truck market was 119,000 vehicles in 2024 and is estimated to be in the range of 115,000-125,000 trucks in 2025. “Kenworth and DAF premium heavy-duty trucks deliver the durability and reliability required for the challenging operating environments of South America,” said Mike Dozier, PACCAR executive vice president.

PACCAR Parts Achieves Record Annual Revenues and Record Profits

PACCAR Parts achieved quarterly pretax income of $428.2 million, compared to $432.4 million earned in the fourth quarter of 2023. Fourth quarter 2024 revenues were $1.67 billion compared to $1.61 billion reported in the fourth quarter of 2023. PACCAR Parts achieved record annual pretax income of $1.71 billion, compared to $1.70 billion earned in 2023. Annual revenues were a record $6.67 billion, four percent higher than the $6.41 billion achieved in 2023. Bryan Sitko, PACCAR vice president and PACCAR Parts general manager, said, “PACCAR Parts provides strong profitability through all phases of the business cycle. PACCAR Parts’ excellent long-term growth reflects the growing population of connected PACCAR vehicles with PACCAR MX engines, and the benefits of investments that increase customer vehicle uptime. These investments include new parts distribution centers (PDCs), Fleet Services, and Managed Dealer Inventory programs.”

PACCAR’s PDCs support over 2,000 DAF, Kenworth and Peterbilt dealer sales, parts and service locations, and more than 350 TRP stores. These independent, well-capitalized dealers provide excellent service to customers, complementing the premium quality of DAF, Kenworth and Peterbilt vehicles.

PACCAR opened its new, 240,000 square-foot PDC in Massbach, Germany, in November 2024. This PDC supports DAF’s growth in Germany, Europe’s largest truck market, by enhancing parts delivery to dealers and customers.

PACCAR Parts Distribution Center in Massbach, Germany

PACCAR Financial Services Achieves Good Annual Results

PACCAR Financial Services (PFS) achieved pretax income of $104.0 million in the fourth quarter of 2024, compared to $113.0 million earned in the fourth quarter of 2023. Fourth quarter 2024 revenues were $544.3 million compared to $484.8 million in the same quarter of 2023. PFS earned $435.6 million of pretax profit in 2024, compared to $540.3 million earned in 2023. PFS revenues were $2.10 billion in 2024 compared to $1.81 billion achieved in 2023. “PFS achieved good annual results due to its strong portfolio quality. PFS is a leader in the market with its superior Kenworth, Peterbilt and DAF vehicles, innovative technologies that provide seamless credit application and loan servicing processes, and its support of customers in all phases of the business cycle,” said Todd Hubbard, PACCAR vice president.

PFS has a portfolio of 237,000 trucks and trailers, with total assets of $22.41 billion. PacLease, a major full-service truck leasing company in North America and Europe with a fleet of approximately 41,000 vehicles, is included in this segment. “PACCAR’s strong balance sheet, complemented by its A+/A1 credit ratings, enables PFS to offer competitive retail financing to Kenworth, Peterbilt and DAF dealers and customers in 26 countries on four continents,” said Craig Gryniewicz, PACCAR Financial Corp. president. “PACCAR Financial Services has excellent access to the debt markets, issuing $3.65 billion in medium-term notes during 2024.”

Capital and R&D Investments in Products, Technologies and Facilities

PACCAR’s excellent long-term profits, strong balance sheet and consistent focus on quality have enabled the company to invest $8.6 billion in new and enhanced facilities, innovative products and new technologies during the past decade. PACCAR invested $796 million in capital projects and $453 million in research and development expenses in 2024. PACCAR estimates that it will invest $700-$800 million in capital projects and $460-$500 million in research and development expenses in 2025.

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DAF Electric Truck Factory, Eindhoven, Netherlands

“PACCAR is investing in its truck factories, including expansions at Kenworth Chillicothe, Ohio, PACCAR Mexico, and the DAF electric truck assembly plant in Eindhoven, Netherlands. Investments in PACCAR’s global engine business include additional manufacturing and remanufacturing capacity,” said John Rich, PACCAR senior vice president and chief technology officer. “In addition to the capital and R&D investments, the company expects to invest a total project amount of $600-$900 million in its battery joint venture, Amplify Cell Technologies.”

PACCAR Engine Remanufacturing Facility in Columbus, Mississippi (Rendering)

PACCAR is a global technology leader in the design, manufacture and customer support of high-quality light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt and DAF nameplates. PACCAR also designs and manufactures advanced powertrains, provides financial services and information technology, and distributes truck parts related to its principal business.

PACCAR will hold a conference call with securities analysts to discuss fourth quarter earnings on January 28, 2025, at 9:00 a.m. Pacific time. Interested parties may listen to the call by selecting “Q4 Earnings Webcast” at PACCAR’s homepage. The webcast will be available on a recorded basis through February 4, 2025. PACCAR shares are traded on the Nasdaq Stock Market, symbol PCAR. Its homepage is www.paccar.com.

This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of factors. More information about these factors is contained in PACCAR’s filings with the Securities and Exchange Commission.

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PACCAR Inc

SUMMARY STATEMENTS OF OPERATIONS

(in millions except per share amounts)

 

		Three Months Ended								Year Ended
		December 31								December 31
		2024				2023				2024				2023
Truck, Parts and Other:
Net sales and revenues		$	7,363.2			$	8,591.8			$	31,564.3			$	33,315.5
Cost of sales and revenues			6,195.8				6,922.7				26,069.6				26,894.2
Research and development			115.3				108.9				452.9				410.9
Selling, general and administrative			150.4				156.0				585.0				604.3
Interest and other (income) expenses, net			(38.9	)			(24.4	)			(113.8	)			520.4		(1)
Truck, Parts and Other Income Before Income Taxes			940.6				1,428.6				4,570.6				4,885.7
Financial Services:
Revenues			544.3				484.8				2,099.5				1,811.9
Interest and other			377.9				316.5				1,429.3				1,091.3
Selling, general and administrative			37.0				38.1				159.0				149.0
Provision for losses on receivables			25.4				17.2				75.6				31.3
Financial Services Income Before Income Taxes			104.0				113.0				435.6				540.3
Investment income			104.7				99.7				394.7				292.2
Total Income Before Income Taxes			1,149.3				1,641.3				5,400.9				5,718.2
Income taxes			277.3				224.0				1,238.9				1,117.4
Net Income		$	872.0			$	1,417.3			$	4,162.0			$	4,600.8
Net Income Per Share:
Basic		$	1.66			$	2.70			$	7.92			$	8.78
Diluted		$	1.66			$	2.70			$	7.90			$	8.76
Weighted Average Shares Outstanding:
Basic			525.5				524.3				525.3				523.9
Diluted			526.7				525.6				526.6				525.0
Dividends declared per share		$	3.30			$	3.47			$	4.17			$	4.24
(1) Includes a $600.0 million non-recurring charge related to civil litigation in Europe (EC-related claims) in the first quarter 2023.

 

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PACCAR Inc

CONDENSED BALANCE SHEETS

(in millions)

		December 31				December 31
		2024				2023
ASSETS
Truck, Parts and Other:
Cash and marketable securities		$	9,649.9			$	8,659.3
Trade and other receivables, net			1,933.8				2,198.1
Inventories, net			2,367.1				2,576.7
Property, plant and equipment, net			3,985.6				3,780.1
Equipment on operating leases and other, net			3,071.0				2,645.3
Financial Services Assets			22,411.5				20,963.9
		$	43,418.9			$	40,823.4
LIABILITIES AND STOCKHOLDERS' EQUITY
Truck, Parts and Other:
Accounts payable, deferred revenues and other		$	8,333.2			$	9,015.8
Financial Services Liabilities			17,578.8				15,928.8
STOCKHOLDERS' EQUITY			17,506.9				15,878.8
		$	43,418.9			$	40,823.4
Common Shares Outstanding			524.4				523.3

 

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PACCAR Inc

CONDENSED CASH FLOW STATEMENTS

(in millions)

Year Ended December 31,		2024				2023
OPERATING ACTIVITIES:
Net income		$	4,162.0			$	4,600.8
Depreciation and amortization:
Property, plant and equipment			398.4				415.0
Equipment on operating leases and other			518.5				508.9
Net change in trade receivables, inventory and payables			478.8				(405.6	)
Net increase in wholesale receivables on new trucks			(478.7	)			(1,266.4	)
All other operating activities, net			(438.1	)			337.3
Net Cash Provided by Operating Activities			4,640.9				4,190.0
INVESTING ACTIVITIES:
Payments for property, plant and equipment			(838.7	)			(695.0	)
Acquisitions of equipment for operating leases			(906.9	)			(567.5	)
Net increase in financial services receivables			(2,338.7	)			(2,076.9	)
Net increase in marketable debt securities			(965.5	)			(163.6	)
Proceeds from asset disposals and other			562.5				632.0
Net Cash Used in Investing Activities			(4,487.3	)			(2,871.0	)
FINANCING ACTIVITIES:
Payments of cash dividends			(2,288.5	)			(1,518.6	)
Purchases of treasury stock			(4.5	)			(3.5	)
Proceeds from stock compensation transactions			51.9				51.5
Net increase in debt and other			2,118.0				2,572.8
Net Cash (Used in) Provided by Financing Activities			(123.1	)			1,102.2
Effect of exchange rate changes on cash			(151.4	)			69.6
Net (Decrease) Increase in Cash and Cash Equivalents			(120.9	)			2,490.8
Cash and cash equivalents at beginning of period			7,181.7				4,690.9
Cash and cash equivalents at end of period		$	7,060.8			$	7,181.7

 

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PACCAR Inc

SEGMENT AND OTHER INFORMATION

(in millions)

		Three Months Ended								Year Ended
		December 31								December 31
		2024				2023				2024				2023
Sales and Revenues:
Truck		$	5,692.6			$	6,968.7			$	24,838.4			$	26,846.4
Parts			1,668.6				1,610.3				6,666.4				6,414.4
Financial Services			544.3				484.8				2,099.5				1,811.9
Other			2.0				12.8				59.5				54.7
		$	7,907.5			$	9,076.6			$	33,663.8			$	35,127.4
Pretax Profit:
Truck		$	502.9			$	996.4			$	2,852.6			$	3,799.9
Parts			428.2				432.4				1,704.5				1,702.6
Financial Services			104.0				113.0				435.6				540.3
Investment Income and Other			114.2				99.5				408.2				(324.6	)	(1)
		$	1,149.3			$	1,641.3			$	5,400.9			$	5,718.2

 

GEOGRAPHIC REVENUE

(in millions)

		Three Months Ended								Year Ended
		December 31								December 31
		2024				2023				2024				2023
United States and Canada		$	4,639.3			$	5,508.5			$	20,954.4			$	21,222.1
Europe			1,806.9				2,202.2				6,962.6				8,741.4
Other			1,461.3				1,365.9				5,746.8				5,163.9
		$	7,907.5			$	9,076.6			$	33,663.8			$	35,127.4

 

NEW TRUCK DELIVERIES

 

		Three Months Ended								Year Ended
		December 31								December 31
		2024				2023				2024				2023
United States and Canada			22,300				28,100				106,400				109,100
Europe			12,300				14,900				45,400				63,200
Other			9,300				8,100				33,500				31,900
			43,900				51,100				185,300				204,200

 

(1) Includes a $600.0 million non-recurring charge related to civil litigation in Europe (EC-related claims) in the first quarter 2023.

 

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PACCAR Inc
SUPPLEMENTARY INFORMATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
This earnings release includes “adjusted net income (non-GAAP)” and “adjusted net income per diluted share (non-GAAP)”, which are financial measures that are not in accordance with U.S. generally accepted accounting principles (“GAAP”), since they exclude a charge for EC-related claims. These measures differ from the most directly comparable measures calculated in accordance with GAAP and may not be comparable to similarly titled non-GAAP financial measures used by other companies.
Adjustment for the EC-related claims relates to a pre-tax charge of $600.0 million ($446.4 million after-tax) for estimable total costs recorded in Interest and other expenses (income), net in the first quarter 2023.
Management utilizes these non-GAAP measures to evaluate the Company’s performance and believes these measures allow investors and management to evaluate operating trends by excluding a significant non-recurring charge that is not representative of underlying operating trends.
Reconciliations from the most directly comparable GAAP measures to adjusted net income (non-GAAP) and adjusted net income per diluted share (non-GAAP) are as follows:
								Year Ended
($ in millions, except per share amounts)								December 31, 2023
Net income								$	4,600.8
EC-related claims, net of taxes									446.4
Adjusted net income (non-GAAP)								$	5,047.2
Per diluted share:
Net income								$	8.76
EC-related claims, net of taxes									.85
Adjusted net income (non-GAAP)								$	9.61

 

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v3.24.4

Document and Entity Information	Jan. 28, 2025
Cover [Abstract]
Amendment Flag	false
Entity Central Index Key	0000075362
Document Type	8-K
Document Period End Date	Jan. 28, 2025
Entity Registrant Name	PACCAR Inc
Entity Incorporation State Country Code	DE
Entity File Number	001-14817
Entity Tax Identification Number	91-0351110
Entity Address, Address Line One	777 106th Avenue NE
Entity Address, City or Town	Bellevue
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98004
City Area Code	425
Local Phone Number	468-7400
Written Communications	false
Soliciting Material	false
Pre Commencement Tender Offer	false
Pre Commencement Issuer Tender Offer	false
Security 12b Title	Common stock, $1 par value
Trading Symbol	PCAR
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false

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