PACCAR Inc. reported a year-over-year drop in revenue for the first quarter of 2025, alongside continued growth in its aftermarket parts and financial services segments—areas of particular interest to equipment finance professionals tracking performance trends across truck-related portfolios.

The company reported $7.44 billion in consolidated revenue for the quarter, down from $8.74 billion in Q1 2024. Net income was $505.1 million, or $0.96 per diluted share, reflecting a $264.5 million after-tax charge related to European civil litigation. Excluding that charge, adjusted net income was $769.6 million, or $1.46 per share. That compares to $1.20 billion, or $2.27 per share, in the same quarter a year ago.

PACCAR Financial Services (PFS) earned $121.1 million in pretax income during the quarter, a 6% increase over the $113.9 million reported in Q1 2024. Revenue for the segment grew to $528.0 million, up from $509.3 million year over year. PFS manages a portfolio of 235,000 trucks and trailers, with total assets of $22.75 billion. During the quarter, it issued $695 million in medium-term notes.

“PFS achieved good quarterly results due to its strong portfolio quality,” said Craig Gryniewicz, PACCAR vice president.

The aftermarket business also saw continued strength. PACCAR Parts posted record quarterly revenue of $1.69 billion and pretax income of $426.5 million. This was slightly below the $455.8 million earned in Q1 2024, but the segment benefited from ongoing investment in distribution centers, TRP all-makes stores, and logistics infrastructure.

Bryan Sitko, PACCAR vice president and general manager of PACCAR Parts, cited expanded logistics capabilities and dealer support as drivers of continued performance.

The company’s global truck brands—Kenworth, Peterbilt, and DAF—remain active in diverse markets. North American Class 8 truck retail sales are forecast to range between 235,000 and 265,000 units for 2025. In Europe, above-16-tonne truck registrations are projected at 270,000 to 300,000 units. DAF Brasil, which holds a 10% share of its local market, is expanding its manufacturing facility in Ponta Grossa to support regional growth.

PACCAR also continues to invest in new product development. First-quarter capital expenditures totaled $171.9 million, with R&D expenses at $115.4 million. Full-year capital and R&D spending are projected to reach $700–$800 million and $450–$480 million, respectively.