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▼ FY 2025 Summary Analysis
Annual report ending Dec 31, 2025Overview and Growth
PACCAR INC generated $28.44B of revenue in fiscal 2025, with net income of $2.38B and an operating cash inflow of $4.42B. At $28.44B, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. Revenue was 15.5% below fiscal 2024 revenue of $33.66B, marking a top-line contraction. Diluted earnings per share were $4.51, translating the period’s attributable earnings into the amount reported for each diluted share. Against diluted EPS of $7.90 in fiscal 2024, the current result was 42.9% lower. The diluted weighted-average share count was 526.80M, linking total earnings with the per-share result received by shareholders. The diluted share count was 0.0% higher than fiscal 2024, when diluted shares averaged 526.60M, adding context to the EPS comparison. The company employed $44.34B of total assets, the balance-sheet base supporting its current operating and cash-flow results. The revenue-to-assets relationship was 0.64x, showing the sales generated relative to the resources carried on the balance sheet.Profitability
Gross profit was $5.71B, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. The gross-profit relationship equaled 20.1% of revenue, quantifying the portion retained before operating expenses were recognized. After all reported below-operating-line items, the company recorded net income of $2.38B for the fiscal year. The final earnings result represented 8.4% of revenue, connecting the absolute net income figure with the company’s top-line scale. The earnings statement records $3.02B of pretax income, the profit base against which the reported tax provision can be assessed. The pretax margin was 10.6%, relating income before taxes directly to revenue. The company recognized $647.70M of income tax for the period, completing the transition from pretax income to net income. The effective relationship between income tax and positive pretax income was 21.4%, without assuming a statutory-rate comparison. Net income equaled 12.3% of period-end equity, showing the earnings generated on shareholders’ book capital. Net income represented 5.4% of period-end assets, placing the company’s bottom-line result against the total resource base employed. The company moved from fiscal 2024 net income of $4.16B to $2.38B, with the current outcome ending below that comparison.Liquidity and Capital Structure
Total assets were $44.34B, supported by $25.07B of liabilities and $19.26B of shareholder equity. Equity equaled 43.4% of assets, showing the shareholder-capital layer within the company’s balance sheet. The liabilities-to-assets relationship was 56.6%, placing reported obligations against the full positive asset balance. The asset base changed 2.1% from $43.42B in fiscal 2024, leaving current total assets higher year over year. Reported equity changed 10.0% from $17.51B in fiscal 2024, placing the current capital base higher year over year.Cash Flow and Earnings Quality
The company reported $4.42B of operating cash flow, a cash inflow that shows the cash generated by operations. The operating-cash-flow-to-net-income relationship was 1.86x, comparing cash generated by operations with the bottom-line earnings result. The cash-flow statement records $743.00M of capital expenditures, the investment amount considered after operating cash generation. Capital expenditures represented 16.8% of operating cash flow, leaving the remainder available as free cash flow. After capital spending, free cash flow was $3.67B, leaving cash available for debt reduction, shareholder returns, or further investment. Free cash flow represented 12.9% of revenue, linking post-investment cash generation with the company’s operating scale. The free-cash-flow-to-assets relationship was 8.3%, comparing post-investment cash with the balance-sheet asset base. Compared with $4.64B in fiscal 2024, current operating cash flow of $4.42B was below the prior result.
Based on the annual report for the fiscal year ending Dec 31, 2025.
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