By Elias Schisgall

Paccar posted a lower profit in the fourth quarter as lower revenues in the trucks segment offset gains from the company's parts and financial services businesses.

The truck designer and manufacturer on Tuesday reported a profit of $556.9 million, or $1.06 a share, compared with $872 million, or $1.66 a share, a year earlier.

Paccar reported revenue of $6.82 billion, down from $7.91 billion a year earlier. Analysts were expecting $6.05 billion.

The decline was driven by a drop in truck revenues to $4.52 billion, down from $5.69 billion a year earlier. That drop was partially offset by revenue gains in the parts segment, which rose to $1.74 billion from $1.67 billion a year earlier, and the financial services segment, which rose to $568.7 million from $544.3 million.

Paccar's chief executive, Preston Feight, suggested the company would not be significantly impacted by the Trump administration's 25% tariff on imported heavy trucks that began in November.

"PACCAR's North American truck factories are optimally located to operate under the Section 232 truck tariff regulations that began in November," Feight said.

"PACCAR produces trucks in the United States, Canada and Mexico for the local markets, which minimizes tariff costs."

Paccar said it expects to invest between $725 million and $775 million in capital projects and between $450 million and $500 million in research and development in 2026.

The company said it paid $2.72 a share in dividends during 2025, including one $1.40 year-end dividend paid on Jan. 7.

Write to Elias Schisgall at elias.schisgall@wsj.com

(END) Dow Jones Newswires

January 27, 2026 08:20 ET (13:20 GMT)

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