PACCAR Inc. (NASDAQ:PCAR) shares are trading lower on Tuesday after it reported first-quarter results.
The company reported quarterly adjusted earnings per share of $1.46, missing the analyst consensus estimate of $1.59.
Quarterly sales of $6.91 billion (down 16% year over year) missed the street view of $7.17 billion.
Harrie Schippers, president and chief financial officer, said, “PACCAR is making good progress on substantially resolving the EU civil litigation.”
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PACCAR Parts achieved quarterly pretax income of $426.5 million, compared to $455.8 million earned in the first quarter of 2024.
The company has produced 1.2 million PACCAR MX engines, leading to a downstream powertrain business opportunity in remanufactured engines. “PACCAR is investing in a 50,000 sq. ft., $35 million PACCAR engine remanufacturing facility in Columbus, Mississippi,” shared Harry Wolters, PACCAR vice president.
PACCAR said it is increasing its investment in next generation internal combustion, hybrid and battery-electric powertrains, integrated connected vehicle services, expanded manufacturing capabilities, and advanced driver assistance systems.
The company’s capital expenditures are projected to be in the range of $700-$800 million and research and development expenses are estimated to be in the range $450-$480 million in 2025.
In addition to the capital and R&D investments, the company said it plans to invest a total project amount of $600-$900 million in its battery joint venture, Amplify Cell Technologies.
The company’s cash and cash equivalents at end of quarter was $5.517 billion.
PACCAR said that the North American truck market is being affected by uncertain economic conditions and the impact of new tariffs.
U.S. and Canada Class 8 truck industry retail sales are estimated to be in a range of 235,000-265,000 trucks in 2025.
Price Action: PCAR shares are trading lower by 3.36% to $88.95 at last check Tuesday.
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