Paccar Inc.
PCAR
Market Cap$51.51B
Close$
Earnings Call Q2 2025
July 22, 2025 - AI Summary
Strong Financial Performance: PACCAR reported revenues of $7.5 billion and adjusted net income of $724 million for Q2 2025. The PACCAR Parts division achieved record revenues of $1.72 billion, with a significant pretax income of $417 million. This represents a strong performance amid a flat parts market, highlighting the company's operational efficiency and market strength.
U.S. and Canada Class 8 Market Forecast: The company anticipates the 2025 U.S. and Canadian Class 8 market to be between 230,000 to 260,000 trucks. Despite ongoing uncertainties regarding tariffs and economic conditions, there is optimism for a stronger second half of the year driven by potential market stabilization and purchasing incentives from customers.
Tariff Impact and Pricing Strategy: PACCAR estimates a tariff-related cost impact of around $75 million for Q3, suggesting an increase from the lower impact experienced in Q2. The company's pricing strategies are affected by ongoing tariff discussions, and improvements in customer profitability could lead to increased truck orders moving into the latter part of the year, especially as tariff clarity emerges.
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$139.80
42.5% upside
Current Fair Value
42.5% upsideUndervalued by 42.5% based on the discounted cash flow analysis.
Share Statistics
| Market cap | $51.51 Billion |
|---|---|
| Enterprise Value | $58.99 Billion |
| Dividend Yield | $0.99 (4.07%) |
| Earnings per Share | $7.92 |
| Beta | 0.95 |
| Outstanding Shares | 525,900,000 |
Return
| Return on Equity | - |
|---|---|
| Return on Assets | - |
| Return on Invested Capital | - |
Valuation & Multiples
| P/E Ratio | 16.79 |
|---|---|
| PEG | -47.25 |
| Price to Sales | 1.85 |
| Price to Book Ratio | 3.07 |
| Enterprise Value to Revenue | 2.11 |
| Enterprise Value to EBIT | 23.31 |
| Enterprise Value to Net Income | 19 |
| Total Debt to Enterprise | 0.13 |
| Debt to Equity | - |
Revenue Sources
No data
Insider Trades
ESG Score
No data
About Paccar Inc.
27,000 employees
CEO: R. Preston Feight 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 po...