AddedRisk Factors
•litigation or activism by certain regulators, shareholders, environmental groups or other stakeholders.
PCARPaccar
PACCAR Inc (the Company or PACCAR), incorporated under the laws of Delaware in 1971, is the successor to Pacific Car and Foundry Company which was incorporated in Washington in 1924. 10-K, Item 1
- Employees
- 25,900
- Headquarters
- Bellevue, WA
- CEO
- R. Preston Feight
- Next results
- around Jan 26, 2027
10-K 0001193125-26-057025 (2026-02-18) vs 10-K 0000950170-25-023145 (2025-02-19)
| Section | Compared text | Words now | Changed |
|---|---|---|---|
| Risk Factors | Item 1A | 2,096 | 5.8% |
| MD&A | Item 7 | 8,226 | 17.9% |
| Legal Proceedings | Item 3 | 30 | not compared |
| Accounting Policies | Item 8 (note not found) | 0 | not compared |
The redline: what was cut and what was added
In each section, the paragraph that changed most, marked against last year's 10-K:
cut words struck through, new words highlighted and underlined.
MD&A 140 words changed in this paragraph; it is 49% similar to last year's version.
New loan and lease volume increased was $6.88 billion in 2025 compared to a record $7.50 billion in 2024 from $7.21 billion in 2023. 2024. The increase decrease in new loan and finance lease volume reflected was primarily due to lower new loan and lease volume from lower retail sales of PACCAR trucks and currency translation effects, partly offset by higher finance market share of new PACCAR truck sales, sales. PFS finance market share of new PACCAR truck sales was 27.0% in 2025 compared to 25.0% in 2024, reflecting higher shares in all markets. The decrease in equipment on operating lease volume was primarily due to lower market demand in the U.S. and Canada and Brasil. The increase in equipment on operating lease volume reflected higher market demand and a higher amount financed per truck in all major markets. Mexico. The effect of currency translation decreased new loan and lease volume by $85.7 $28.3 million, primarily due to a decrease in the value of the Mexican peso and Brazilian real and Mexican peso relative to the U.S. dollar, partially offset by an increase in the value of the euro relative to the U.S. dollar. PFS finance market share of new PACCAR truck sales was 25.0% in 2024 compared to 24.0% in 2023.
Source: Item 7, 10-K 0001193125-26-057025 vs Item 7, 10-K 0000950170-25-023145
Risk Factors 60 words changed in this paragraph; it is 86% similar to last year's version.
Emissions Requirements and Reduction Targets. PACCAR’s operations and products are subject to extensive statutory and regulatory requirements governing greenhouse gas and non-greenhouse gas emissions. These include standards imposed by the U.S. Environmental Protection Agency (EPA), the European Union, U.S. state regulatory agencies (such as the California Air Resources Board), regulatory agencies in other international markets where the Company operates, and international accords related to climate change including the Paris Agreement. accords. The primary laws and regulations are the EPA’s Greenhouse Gas Emissions Standards and Fuel Efficiency Standards for Medium and Heavy-Duty Engines and Vehicles, EPA’s Clean Truck Initiative, Low NOx Rule, the Regulation of the European Parliament and of the Council on the Monitoring and Reporting of CO2 Emissions from Fuel Consumption of New Heavy-Duty Vehicles, and the Heavy-Duty Omnibus Regulation and Regulation, Emergency Rulemaking and, subject to pending litigation, the Advanced Clean Truck (ACT) regulation of the California Air Resources Board. Board (CARB). The EU regulations have set CO2 emission reduction targets and require a significant portion of vehicles sold to be zero or near zero emission. Not meeting these targets would result in significant fines by the EU commission. The Commission. California's ACT regulation, which has been adopted by several states, requires an increasing percentage of medium- and heavy-duty trucks sold into the state to be zero emission. CARB's authority to enact the ACT regulations has been revoked by the U.S. Congress and President; however, the revocation, is currently being challenged and the outcome is uncertain.
Source: Item 1A, 10-K 0001193125-26-057025 vs Item 1A, 10-K 0000950170-25-023145
Every change, by type
Sentences and paragraphs of PCAR's Risk Factors and MD&A, 10-K 2026-02-18 against 10-K 2025-02-19. Each links to the text at sec.gov.
Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier
(may, could, will, not, significant, material…). A year or date rolling forward is not counted.
The full word list
adverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, would
AddedRisk Factors
The Company is deploying AI tools to reduce operational costs and enhance performance for the Company and its customers, including the use of AI in its predictive analytics technology to forecast and implement vehicle service parameters to improve vehicle uptime. The Company's business, financial condition and result of operations may eventually be adversely affected if it fails to integrate these rapidly developing technologies in a timely, cost-effective, compliant and responsible manner.
RewordedRisk Factors
The primary laws and regulations are the EPA’s Greenhouse Gas Emissions Standards and Fuel Efficiency Standards for Medium and Heavy-Duty Engines and Vehicles, EPA’s Clean Truck Initiative, Low NOx Rule, the Regulation of the European Parliament and of the Council on the Monitoring and Reporting of CO2 Emissions from Fuel Consumption of New Heavy-Duty Vehicles, and the Heavy-Duty Omnibus Regulation and Regulation, Emergency Rulemaking and, subject to pending litigation, the Advanced Clean Truck (ACT) regulation of the California Air Resources Board. Board (CARB).
RewordedRisk Factors
The Company’s product planning is aligned with these statutory and regulatory requirements, and uses a climate change scenario analysis to limit global warming to below 2°C. requirements.
RewordedRisk Factors
Environmental Protection Agency (EPA), the European Union, U.S. state regulatory agencies (such as the California Air Resources Board), regulatory agencies in other international markets where the Company operates, and international accords related to climate change including the Paris Agreement. accords.
RewordedRisk Factors
Information Technology Technology, Cybersecurity and Cybersecurity. AI.
AddedMD&A
•Adjusted net income (non-GAAP), excluding a $264.5 million after-tax charge related to civil litigation in Europe, was $2.64 billion ($5.01 per diluted share). After-tax return on beginning equity (ROE) was 13.6% in 2025, which includes the $264.5 million after-tax charge related to civil litigation in Europe in the first quarter of this year. Excluding the after-tax charge, adjusted ROE (non-GAAP) was 15.1%. This compares to an ROE of 26.2% in 2024. See Reconciliation of GAAP to Non-GAAP Financial Measures on page 31.
AddedMD&A
Kenworth constructed a 46,000 square-foot robotic chassis paint facility in Chillicothe, Ohio. PACCAR also completed a new $35 million, 50,000 square-foot engine remanufacturing facility and is enhancing its existing engine factory in Columbus, Mississippi. PACCAR is also enhancing its other engine facility in the Netherlands. PACCAR opened a new 180,000 square-foot Parts Distribution Center (PDC) in Calgary, Canada, to enhance parts delivery to dealers and customers in the region.
AddedMD&A
The Company's truck and parts products have been negatively affected since March 2025 by import tariffs imposed by the U.S. government and actions taken by other countries. While the Company has taken mitigating actions to reduce the impact, the ongoing impact from import tariffs on truck order intake and profit margins remains unfavorable. The Company's North American truck factories are optimally located to operate under the new Section 232 truck tariffs that began in November 2025. The Company’s tariff exposure is minimized by producing trucks locally for the United States, Canada and Mexico. The Company manufactures its trucks for U.S. customers in its Ohio, Texas, and Washington state factories.
AddedMD&A
The recent U.S. Environmental Protection Agency announcement reaffirmed the EPA27 NOx limit and could eliminate changes to extended warranty requirements and useful life requirements on new emissions systems. The Company's results could be impacted by changes in tariff policy, including the expected U.S. Supreme Court ruling on the International Emergency Economic Power Acts (IEEPA) tariffs, emissions regulations and improving freight fundamentals.
AddedMD&A
In 2025, the effective tax rate was 21.4% compared to 22.9% in 2024, primarily reflecting higher U.S. federal R&D tax credits. Excluding the $350.0 million EC charge and its associated tax benefit, the adjusted 2025 effective tax rate (non-GAAP) was 21.7%.
AddedMD&A
This Form 10-K includes “adjusted net income (non-GAAP)” and “adjusted net income per diluted share (non-GAAP)”, which are financial measures that are not in accordance with U.S. generally accepted accounting principles (“GAAP”), since they exclude a charge for EC-related claims. These measures differ from the most directly comparable measures calculated in accordance with GAAP and may not be comparable to similarly titled non-GAAP financial measures used by other companies. In addition, the Form 10-K includes the financial ratios noted below calculated on non-GAAP measures.
AddedMD&A
Adjustment for the EC-related claims relates to a pre-tax charge of $350.0 million ($264.5 million after-tax) for estimable total costs recorded in Interest and other expenses (income), net in the first quarter 2025.
AddedMD&A
The Company utilizes these non-GAAP measures to allow investors and management to evaluate operating trends by excludinga significant charge that is not representative of company performance.
AddedMD&A
Reconciliations from the most directly comparable GAAP measures to adjusted net income (non-GAAP) and adjusted net income per diluted shares (non-GAAP) are as follows:
AddedMD&A
($ in millions, except per share amounts) Year Ended December 31, 2025 Net income $ 2,375.8 EC-related claims, net of taxes 264.5 Adjusted net income (non-GAAP) $ 2,640.3 Per diluted share Net income $ 4.51 EC-related claims, net of taxes .50 Adjusted net income (non-GAAP) $ 5.01 After-tax return on revenues 8.4% EC-related claims, net of taxes .9% After-tax adjusted return on revenues (non-GAAP) * 9.3% Tax rate Effective tax rate 21.4% EC-related claims .3% Adjusted effective tax rate (non-GAAP) ** 21.7% After-tax return on beginning equity 13.6% EC-related claims, net of taxes 1.5% After-tax adjusted return on beginning equity (non-GAAP) * 15.1% * Calculated using adjusted net income. ** Calculated using adjusted pre-tax net income.
RemovedMD&A
RemovedMD&A
RemovedMD&A
RemovedMD&A
RewordedMD&A
The increase decrease in net cash used in investing activities primarily reflects increased lower net purchases of marketable securities, net securities of proceeds from sales $628.2 million, lower originations of retail loans and maturities, finance leases of $801.9 $551.8 million, a higher lower net increase in wholesale receivables on equipment of $483.0 million, increased acquisition $507.2 million and a decrease in acquisitions of equipment on for operating leases of $339.4 million and cash contributed to the battery manufacturing joint venture, Amplify Cell Technologies, of $207.6 $263.3 million.
RewordedMD&A
NET COST OF SALES AND SALES AND GROSS ($ in millions) REVENUES REVENUES MARGIN 2023 2024 $ 26,846.4 24,838.4 $ 22,440.6 21,389.8 $ 4,405.8 3,448.6 (Decrease) increase Truck sales volume (2,107.6) (1,650.0) (457.6) (5,333.6) (4,489.9) (843.7) Average truck sales prices 155.6 155.6 (306.2) (306.2) Average material, labor and other direct costs 557.1 (557.1) 962.2 (962.2) Factory overhead and other indirect costs 18.6 (18.6) (188.6) 188.6 Extended warranties, operating leases and other 61.5 106.3 (44.8) 41.2 80.0 (38.8) Currency translation (117.5) (82.8) (34.7) 125.5 151.3 (25.8) Total decrease (2,008.0) (1,050.8) (957.2) 2024 (5,473.1) (3,485.0) (1,988.1) 2025 $ 24,838.4 19,365.3 $ 21,389.8 17,904.8 $ 3,448.6 1,460.5
RewordedMD&A
The provision for losses on receivables increased to $124.5 million in 2025 from $75.6 million in 2024 from $31.3 million 2024, primarily due to a higher provision in 2023, primarily driven by portfolio growth, Brasil and the U.S., reflecting an increase in the Company’s 30+ days past due accounts and higher charge-offs growth in the U.S. and Canada and Europe. retail portfolios.
RewordedMD&A
Truck segment income before income taxes and pre-tax return on revenues decreased primarily due to lower truck unit deliveries in Europe and all major markets from lower retail demand, reflecting economic conditions as well as higher tariff costs resulting from current trade policies primarily in the U.S. and Canada, partially offset by higher truck unit deliveries in Mexico and South America.
RewordedMD&A
The effects of currency translation decreased PFS revenues by $23.5 $9.9 million in 2024, 2025, primarily due to a decrease in the value of foreign currencies the Mexican peso and Brazilian real relative to the U.S. dollar, primarily partially offset by an increase in the Brazilian real and Mexican peso. value of the euro relative to the U.S. dollar.
RewordedMD&A
The net changes in operating assets and liabilities are mainly due to higher cash provided by net changes in operating assets, primarily wholesale receivables on new trucks in the Financial Services segment of $787.7 million, trade and other receivables of $587.6 $1,485.8 million and lower cash usage of $393.2 $253.9 million for inventories, partially offset by decrease in accounts payable and accruals of $1,084.7 million, including the EC-related charge and product support liabilities. $712.0 million.
RewordedMD&A
Included in Other is sales, income and expenses not attributable to a reportable segment, as well as the Company’s industrial winch manufacturing business through October 31, 2024, as well as sales, income and expenses not attributable to a reportable segment. 2024.
RewordedMD&A
Cash used in financing net borrowing activities was $123.1 $822.6 million in 2024 2025 compared to cash provided by financing activities of $1.10 billion in 2023, reflecting higher cash dividends and lower net borrowing activity. activity of $2,118.0 million in 2024.
RewordedMD&A
The over 16‑tonne 16-tonne truck market in Brasil in 2024 increased 2025 was 86,700 units compared to 97,700 units from 82,100 units in 2023, 2024, and DAF Brasil's market share was 8.6% in 2025 compared to 9.9% in 2024 compared to 10.2% in 2023. 2024.
RewordedMD&A
The increased charge-offs in 2024 included three large fleet customers in the U.S. and Canada were driven by a soft truckload market and two included several large fleet customers in Europe. customers, which were provisioned for previously.
RewordedMD&A
In 2024, 2025, foreign income before income taxes increased, as 2023 decreased due to lower Truck operation results, mainly Mexico and Brasil, and included the EC-related charge of $600.0 million, $350.0 million in the first quarter 2025, which also reduced foreign pre-tax return on revenues.
RewordedMD&A
The decrease increase related to Insignificant delay modifications reflects a decrease an increase in customers requesting payment relief for up to three months, primarily in the U.S., partially offset by an increase in customers requesting payment relief for up to three months in Brasil. U.S.
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