PACCAR Q3 Net Income, Deliveries Fall Amid Tariffs

PACCAR reported Q3 2025 net income of $590 million ($1.12 per share) on consolidated revenue of about $6.67 billion, and truck deliveries fell to 31,900 units amid softer demand and dealer inventory buildups. Management cited rising raw-material costs and new U.S. Section 232 tariffs — a 25% duty on some imported trucks and parts effective Nov. 1 — as key headwinds, with CEO Preston Feight saying the tariffs should bring market clarity since most of the company’s trucks are made in the U.S. Parts revenue and operating margins remained resilient and the company continued to generate strong cash flow. Analysts warned that weaker deliveries and limited pricing power could make PACCAR’s margin targets difficult to meet. PACCAR reiterated multi-year industry retail sales ranges for Class 8 trucks in North America and registrations in Europe and highlighted ongoing investments, including a battery joint venture, R&D spending and capital projects, as it navigates a cyclical downturn.