In This Article:
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Annual Revenue: $33.7 billion in 2024.
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Net Income: $4.2 billion in 2024.
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After-Tax Return on Revenues: 12.4% in 2024.
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Dividends Declared: $4.17 per share in 2024, including a year-end dividend of $3 per share.
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Fourth Quarter Revenue: $7.9 billion.
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Fourth Quarter Net Income: $872 million.
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PACCAR Parts Revenue: $1.6 billion in the fourth quarter.
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PACCAR Parts Pre-Tax Profit: $428 million in the fourth quarter.
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Class 8 Truck Market Share: 30.7% in the US and Canada.
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Medium-Duty Truck Market Share: Increased from 14.5% to 18%.
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PACCAR Parts Annual Revenue: $6.7 billion, a 4% increase.
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PACCAR Parts Pre-Tax Profit: $1.71 billion annually.
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Parts Gross Margins: 30.9% on average.
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PACCAR Financial Services Fourth Quarter Pre-Tax Income: $104 million.
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PACCAR Financial Services Annual Pre-Tax Income: $436 million.
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Capital Investments: $796 million in 2024, with a planned range of $700 million to $800 million for 2025.
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Research and Development Expenses: $453 million in 2024, with a planned range of $460 million to $500 million for 2025.
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Return on Invested Capital: 25.5% in 2024.
Release Date: January 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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PACCAR Inc (NASDAQ:PCAR) achieved annual revenues of $33.7 billion and net income of $4.2 billion in 2024, marking the second-highest profit in the company's history.
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The company declared $4.17 per share in dividends, representing a 53% payout of net income and a dividend yield of 4%.
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PACCAR Parts set new records for revenues and profits, with annual revenues increasing by 4% to $6.7 billion and pre-tax profit reaching $1.71 billion.
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Kenworth and Peterbilt's market share in the US and Canadian Class 8 truck market increased to 30.7%, up from 29.5% the previous year.
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PACCAR Financial Services achieved a fourth-quarter pre-tax income of $104 million, with an annual pre-tax income of $436 million, reflecting excellent credit quality and low past use.
Negative Points
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The medium-duty truck market is expected to normalize, potentially leading to a decrease in demand compared to the previous robust performance.
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The company faces challenges from unfavorable foreign exchange rates, which negatively impacted net income by approximately $20 million in the fourth quarter.
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PACCAR Inc (NASDAQ:PCAR) anticipates a slight decline in truck deliveries in the first quarter of 2025, with a forecast of around 40,000 units compared to 43,900 in the fourth quarter.
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The European truck market, particularly in Central and Eastern Europe, experienced a downturn, with markets like Poland and Lithuania being significantly impacted.
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The company is cautious about potential regulatory changes and their impact on operations, particularly concerning the EPA 2027 regulations and potential differences between California and other states.