Paccar Q2 Profit Slumps as Weak Truckload Market Persists
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Truck manufacturer Paccar’s profit dived 35.3% year over year as the freight recession continued to hamper tractor sales, particularly among truckload carriers.
Paccar posted Q2 net income of $723.8 million, or $1.37 per diluted share, compared with $1.12 billion, $2.13, in the same period in 2024. Paccar said consolidated Q2 sales and financial services revenue slid 14.4% to $7.51 billion compared with $8.77 billion in the year-ago quarter.
The parent company of truck brands Kenworth and Peterbilt as well as the DAF global brand, Paccar saw truck sales revenue slide 20.3% to $5.243 billion compared with $6.578 billion last year. However, that result beat consensus analyst expectations of $4.971 billion by more than 5%, according to Truist Securities Managing Director Jamie Cook.
“Paccar achieved good revenue and net income in the second quarter of 2025,” said CEO Preston Feight. “Peterbilt, Kenworth and DAF delivered good results, Paccar Parts delivered record quarterly revenue and strong profits, and Paccar Financial Services achieved very good results.”
Peterbilt and Kenworth sold 23,000 trucks in the most recent quarter in the U.S. and Canada, down 19.9% compared with 28,700 trucks in Q2 2024. The company did not provide a breakdown by brand or weight class. Sales in the first six months of 2025 for the two brands in the U.S. and Canada totaled 45,200 trucks, a decrease of 22.3% from 58,200 trucks in the same period 12 months earlier.
Kenworth and Peterbilt achieved 30.4% market share in the first six months of this year.
North American Truck Market
“The North American truck market is being affected by economic conditions, the uncertain impact of tariffs, and a soft truckload market. Customer demand in the less-than-truckload and vocational segments, including construction, is good,” said Feight.
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Paccar said U.S. and Canada retail Class 8 truck sales are now estimated to be in a range of 230,000-260,000 trucks in 2025, compared with previous expectations of 235,000–265,000 trucks, for what would be a year-over-over decrease of 3%–14%.
The company’s financial services division reported a 7.4% increase in revenue to $547.7 million in Q2 from $509.8 million a year earlier. The division earned pre-tax Q2 income of $123.2 million compared with $111.2 million a year ago.
Paccar Parts posted a 3.4% increase in revenue to $1.721 billion in Q2 from $1.664 billion in the year-ago period.
Effects of Tariffs
Uncertainty caused by tariffs is prolonging the freight market recession that began in 2022, with carriers adopting a wait-and-see approach to investing in rolling stock as margins are the lowest since 2010, analysts say.
Further turmoil for many truck manufacturers may come in the form of potential Section 232 tariffs on heavy- and medium-duty trucks and parts for the vehicles the Trump administration is considering. Trucking organizations urged the administration to hold back on a planned investigation built around national security concerns, citing an expected jump in truck prices that could follow.
Domestic Production
Paccar, however, believes it is more insulated than most against such measures, with Executive Vice President Kevin Baney noting in the latest earnings statement that the company produces more than 90% of its trucks for U.S. customers in Ohio, Texas and Washington state.
Bellevue, Wash.-based Paccar also is expanding its Columbus, Miss., engine factory to further insulate its operations from tariffs. The company is building a $35 million, 50,000 square foot engine remanufacturing facility there.
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