Thu, May 1, 8:12 PM (22 days ago)
**PACCAR Financial Corp. (PCAR26) Q1 2025 Financial Summary** **Revenue & Profit:** - **Revenue:** $242.9 million, up 15% from $211.2 million in Q1 2024. - **Net Income:** $40.5 million, up 38.7% from $29.2 million in Q1 2024. - **Profit Margin:** 16.7% (Net Income / Total Revenue). **Cash Flow:** - **Operating Cash Flow:** $131.7 million, down from $254.0 million in Q1 2024. - **Investing Cash Flow:** -$131.9 million, improved from -$359.2 million in Q1 2024. - **Financing Cash Flow:** -$47.8 million, compared to -$21.6 million in Q1 2024. **Earnings Changes:** - **Earnings per Share (EPS) not reported** due to being a wholly-owned subsidiary. **Quarterly Performance:** - **New Business Volume:** Decreased to $666.5 million from $697.5 million in Q1 2024. - **Finance Market Share:** Increased to 18.5% from 16.8% in Q1 2024. - **Average Earning Assets:** Increased by 18% year-over-year. **Trends & Uncertainties:** - **Economic Conditions:** Potential decline in freight transportation conditions due to a weaker economy or tariff uncertainty could increase past due accounts, repossessions, and credit losses. - **Credit Ratings:** A decrease in credit ratings could negatively impact the company's ability to access capital markets at competitive interest rates. - **Funding and Liquidity:** The company has committed bank facilities and believes its current investment grade credit ratings will provide sufficient resources to maintain liquidity. **Future Operations Impact:** - **Truck Industry Outlook:** Class 8 retail sales in the U.S. in 2025 are expected to be between 215,000-240,000 units. - **Average Earning Assets:** Expected to be comparable to 2024. - **Liquidity Risk:** The company may face liquidity risk if it cannot refinance maturing debt in the financial markets due to a decrease in credit ratings or market disruption.