Kenworth sold 31,536 trucks in 2025, including its T680 model. (Kenworth)
January 27, 2026 2:32 PM, EST
Key Takeaways:
- Paccar Inc. reported Q4 2025 net income of $556.9 million, down 36.1% year over year, as weak freight demand slowed truck sales.
- Executives said the downturn stemmed from the freight recession but highlighted strong parts and financial services performance and noted Class 8 orders surged 118% in December.
- Paccar expects a stronger North American truck market in 2026 as tariff clarity and improving freight conditions lift orders, while remaining cautious about Europe.
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Paccar Inc. is optimistic about the prospects for truck sales in 2026 after customer demand remained weak in the fourth quarter of 2025 due to the ongoing freight recession, which weighed on profit and revenue in the period, executives said Jan. 27.
The parent company of Kenworth and Peterbilt posted net income of $556.9 million, $1.06 per diluted share, in the most recent quarter, down 36.1% compared with $872 million, $1.66 per diluted share, in the year-ago period.
Paccar reported revenue of $6.82 billion in Q4, a decrease of 13.8% compared with $7.91 billion in the same period in 2024.
The company beat consensus analyst expectations of $6.12 billion though, according to Zacks Equity Research. Consensus EPS analyst expectations came in at $1.24, according to Zacks, although the metric matched Zacks’ own forecast.
“Paccar reported very good annual revenues and net income in 2025,” said CEO Preston Feight. “Paccar Parts and Paccar Financial Services delivered record revenue and strong profits. Kenworth, Peterbilt and DAF’s premium quality trucks contributed to the very good results.”
Paccar sold 63,300 Class 8 trucks in the U.S. in 2025, a 15% decrease from 74,450 in 2024, according to Wards Intelligence data. Peterbilt sold 31,764 trucks last year, while Kenworth sold 31,536. In 2024, Peterbilt sold 37,829 trucks and Kenworth sold 36,621.
Kenworth and Peterbilt posted a U.S. and Canada Class 8 retail sales market share of 30% in 2025, according to the parent company.
Industrywide U.S. and Canada Class 8 truck retail sales totaled 233,000 units in 2025, Paccar said, and are expected to range from 230,000 to 270,000 trucks in 2026.
Executives are positive about the coming year in North America.
“Paccar’s North American truck factories are optimally located to operate under the Section 232 truck tariff regulations that began in November. Paccar produces trucks in the United States, Canada and Mexico for the local markets, which minimizes tariff costs,” Feight said.
“Industry truck orders increased in December,” added Laura Bloch, Paccar senior vice president. “The truck market is responding to the clarification of tariff policy and emissions regulations, which combined with early improvements in freight fundamentals, should lead to a stronger truck market in 2026.”
However, Paccar is less certain about the prospects for an upturn in Europe, where the company’s DAF division focuses, noting the floor could be lower in 2026.
The company said European above 16-tonne truck industry registrations totaled 298,000 trucks in 2025 and expects 2026’s total to range from 280,000 to 320,000 trucks.
Meanwhile, Paccar Parts posted record quarterly revenue of $1.74 billion in Q4, 4% higher than the year-ago period’s $1.67 billion.
Paccar Financial Services reported revenue of $568.7 million in the most recent three-month period, up 4.3% compared with $544.3 million a year earlier.
PFS has a portfolio of 226,000 trucks and trailers. “PFS achieved excellent retail market share of 27% in 2025,” said Craig Gryniewicz, Paccar vice president.
Preliminary Class 8 orders soared 118% in December to 42,700 units from 19,547 in November and rose 16% year over year.
For the full year, Paccar posted net income of $2.38 billion ($4.51 per diluted share) in 2025, down 42.8% compared with $4.16 billion in 2024.
Paccar reported 2025 annual revenue of $28.44 billion, a decline of 15.5% compared with $33.66 billion.
The company invested $728 million in capital projects and $446 million in research and development in 2025, compared with $796 million and $452 million in 2024, respectively.
Capex is set to total $725 million to $775 million in 2026 while research and development spending will be between $450 million and $500 million, Paccar said.
“Paccar is investing in exciting next-generation clean diesel and alternative powertrains, electric battery cells, integrated connected vehicle services, flexible manufacturing capabilities, and autonomous and advanced driver assistance systems that create value for customers,” said Chief Financial Officer Brice Poplawski.
Peterbilt and Kenworth each launched a couple of Class 8 battery-electric trucks in December.
Kenworth is constructing a 46,000-square-foot robotic chassis paint facility in Chillicothe, Ohio.
Paccar built a 50,000-square-foot engine remanufacturing facility in Mississippi. The plant will open in the first half of 2026, the company said.
