PACCAR INC, 10-Q filed on 4/29/2026
Quarterly Report
v3.26.1
Document and Entity Information - shares
 3 Months Ended
Mar. 31, 2026
Apr. 24, 2026
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Mar. 31, 2026  
Document Fiscal Year Focus 2026  
Document Fiscal Period Focus Q1  
Entity Registrant Name PACCAR Inc  
Entity Central Index Key 0000075362  
Current Fiscal Year End Date --12-31  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Common Stock, Shares Outstanding   526,286,229
Entity Shell Company false  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity File Number 001-14817  
Entity Tax Identification Number 91-0351110  
Entity Address, Address Line One 777 - 106th Ave. N.E.  
Entity Address, City or Town Bellevue  
Entity Address, State or Province WA  
Entity Address, Postal Zip Code 98004  
City Area Code 425  
Local Phone Number 468-7400  
Entity Incorporation, State or Country Code DE  
Document Quarterly Report true  
Document Transition Report false  
Title of Each Class Common stock, $1 par value  
Trading Symbol PCAR  
Name of Each Exchange on Which Registered NASDAQ  
v3.26.1
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
shares in Millions, $ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Revenues $ 6,776.5 $ 7,441.7
Cost of sales and revenues 5,416.5 5,891.0
Research and development 109.1 115.4
Interest and other borrowing expenses 182.8 190.6
Depreciation and other expenses 160.1 159.7
Selling, general and administrative 189.3 181.6
Provision for losses on receivables 44.1 18.3
Interest and other (income) expenses, net (21.3) 325.8
Income before income taxes 695.9 559.3
Investment income 80.4 83.8
Total Income Before Income Taxes 776.3 643.1
Income taxes 171.0 138.0
Net Income $ 605.3 $ 505.1
Net Income Per Share    
Basic $ 1.15 $ 0.96
Diluted $ 1.15 $ 0.96
Weighted Average Number of Common Shares Outstanding    
Basic 526.7 525.9
Diluted 527.4 526.9
Comprehensive Income $ 613.3 $ 655.3
Truck, Parts and Other    
Revenues 6,234.3 6,913.7
Cost of sales and revenues 5,416.5 5,891.0
Research and development 109.1 115.4
Selling, general and administrative 149.6 143.3
Interest and other (income) expenses, net (21.3) 325.8
Costs and Expenses, Total 5,653.9 6,475.5
Income before income taxes 580.4 438.2
Total Income Before Income Taxes 580.4 438.2
Financial Services    
Interest and fees 344.9 343.0
Operating lease, rental and other revenues 197.3 185.0
Revenues 542.2 528.0
Interest and other borrowing expenses 182.8 190.6
Depreciation and other expenses 160.1 159.7
Selling, general and administrative 39.7 38.3
Provision for losses on receivables 44.1 18.3
Costs and Expenses, Total 426.7 406.9
Income before income taxes 115.5 121.1
Total Income Before Income Taxes $ 115.5 $ 121.1
v3.26.1
Consolidated Balance Sheets - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
ASSETS    
Total Assets $ 43,553.5 $ 44,336.2
STOCKHOLDERS' EQUITY:    
Common stock, $1 par value - authorized 1.2 billion shares, issued 526.3 and 525.4 million shares 526.3 525.4
Additional paid-in capital 436.3 379.2
Treasury stock, at cost - .04 million and nil shares (4.8)  
Retained earnings 19,127.5 18,696.1
Accumulated other comprehensive loss (328.7) (336.7)
Total Stockholders' Equity 19,756.6 19,264.0
Liabilities and Equity, Total 43,553.5 44,336.2
Truck, Parts and Other    
ASSETS    
Cash and cash equivalents 5,381.9 6,046.0
Trade and other receivables, net (allowance for losses: 2026 - $1.8, 2025 - $1.5) 2,256.9 1,981.1
Marketable securities 3,213.5 3,207.7
Inventories, net 2,223.4 2,187.5
Other current assets 822.8 903.9
Total Truck, Parts and Other Current Assets 13,898.5 14,326.2
Property, plant and equipment, net 4,518.8 4,505.3
Other noncurrent assets, net 2,788.0 2,701.3
Total Assets 21,205.3 21,532.8
Liabilities    
Accounts payable, accrued expenses and other 5,101.2 4,876.3
Dividend payable   735.8
Total Truck, Parts and Other Current Liabilities 5,101.2 5,612.1
Other liabilities 2,197.4 2,278.8
Total Liabilities 7,298.6 7,890.9
Financial Services    
ASSETS    
Cash and cash equivalents 262.9 261.9
Finance and other receivables, net (allowance for losses: 2026 - $196.3, 2025 - $192.9) 19,341.8 19,754.5
Equipment on operating leases, net 1,832.4 1,868.6
Other assets 911.1 918.4
Total Assets 22,348.2 22,803.4
Liabilities    
Accounts payable, accrued expenses and other 901.9 907.7
Commercial paper and bank loans 4,756.1 4,989.5
Term notes 10,189.5 10,646.8
Deferred taxes and other liabilities 650.8 637.3
Total Liabilities $ 16,498.3 $ 17,181.3
v3.26.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
Preferred stock, no par value $ 0 $ 0
Preferred stock, authorized 1,000,000 1,000,000
Preferred stock, issued 0 0
Common stock, par value $ 1 $ 1
Common stock, authorized 1,200,000,000 1,200,000,000
Common stock, issued 526,300,000 525,400,000
Treasury stock, shares 40,000.00 0
Truck, Parts and Other    
Allowance for losses $ 1.8 $ 1.5
Financial Services    
Allowance for credit losses $ 196.3 $ 192.9
v3.26.1
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
OPERATING ACTIVITIES:    
Net Income $ 605.3 $ 505.1
Adjustments to reconcile net income to cash provided by operations:    
Depreciation and amortization, Property, plant and equipment 100.5 99.7
Depreciation and amortization, Other assets 99.6 105.4
Provision for losses on financial services receivables 44.1 18.3
Deferred taxes (159.0) 5.0
Other, net 17.4 31.3
Pension contributions (4.0) (6.5)
Change in operating assets and liabilities:    
Trade and other receivables (279.1) (230.9)
Wholesale receivables on new trucks 198.7 28.8
Inventories (29.7) 33.0
Accounts payable and accrued expenses 234.4 155.9
Income taxes, warranty and other 143.6 165.2
Net Cash Provided by Operating Activities 971.8 910.3
INVESTING ACTIVITIES:    
Originations of retail loans and finance leases (1,162.8) (1,332.0)
Collections on retail loans and finance leases 1,276.0 1,110.0
Net decrease in wholesale receivables on equipment 50.6 23.7
Purchases of marketable debt securities (586.2) (405.1)
Proceeds from sales and maturities of marketable debt securities 549.4 384.5
Payments for property, plant and equipment (147.2) (165.1)
Acquisitions of equipment for operating leases (170.7) (160.7)
Proceeds from asset disposals 178.5 200.2
Contributions to joint venture   (44.7)
Other, net (62.6) (3.4)
Net Cash Used in Investing Activities (75.0) (392.6)
FINANCING ACTIVITIES:    
Payments of cash dividends (909.4) (1,747.0)
Purchases of treasury stock (4.8) (4.3)
Proceeds from stock compensation transactions 42.4 22.5
Net decrease in commercial paper, short-term bank loans and other (225.4) (347.0)
Proceeds from term debt 453.4 697.5
Payments on term debt (907.9) (756.4)
Net Cash Used in Financing Activities (1,551.7) (2,134.7)
Effect of exchange rate changes on cash and cash equivalents (8.2) 73.9
Net Decrease in Cash and Cash Equivalents (663.1) (1,543.1)
Cash and cash equivalents at beginning of period 6,307.9 7,060.8
Cash and cash equivalents at end of period $ 5,644.8 $ 5,517.7
v3.26.1
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($)
$ in Millions
Total
COMMON STOCK, $1 PAR VALUE:
ADDITIONAL PAID-IN CAPITAL:
TREASURY STOCK, AT COST:
RETAINED EARNINGS:
ACCUMULATED OTHER COMPREHENSIVE LOSS:
Beginning balance at Dec. 31, 2024   $ 524.4 $ 344.8   $ 17,751.0 $ (1,113.3)
Net income $ 505.1       505.1  
Purchases       $ (4.3)    
Cash dividends declared on common stock         (173.6)  
Stock compensation   0.6 37.2      
Other comprehensive income 150.2         150.2
Ending balance at Mar. 31, 2025 18,022.1 525.0 382.0 (4.3) 18,082.5 (963.1)
Beginning balance at Dec. 31, 2025 19,264.0 525.4 379.2   18,696.1 (336.7)
Net income 605.3       605.3  
Purchases       (4.8)    
Cash dividends declared on common stock         (173.9)  
Stock compensation   0.9 57.1      
Other comprehensive income 8.0         8.0
Ending balance at Mar. 31, 2026 $ 19,756.6 $ 526.3 $ 436.3 $ (4.8) $ 19,127.5 $ (328.7)
v3.26.1
Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Cash dividends declared on common stock, per share $ 0.33 $ 0.33
v3.26.1
Pay vs Performance Disclosure - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Pay vs Performance Disclosure    
Net Income (Loss) $ 605.3 $ 505.1
v3.26.1
Insider Trading Arrangements
 3 Months Ended
Mar. 31, 2026
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
Rule 10b5-1 Arr Modified Flag false
Non-Rule 10B5-1 Arr Modified Flag false
v3.26.1
Basis of Presentation
 3 Months Ended
Mar. 31, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation

NOTE A - Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10‑Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2026 are not necessarily indicative of the results that may be expected for the year ending December 31, 2026. For further information, refer to the consolidated financial statements and footnotes included in PACCAR Inc’s (PACCAR or the Company) Annual Report on Form 10‑K for the year ended December 31, 2025.

Equity Method Investment: In 2024, PACCAR and three partners completed the formation of a U.S.-based battery manufacturing joint venture, Amplify Cell Technologies, with PACCAR owning a 30 percent interest. The joint venture meets the definition of a variable interest entity since the equity-at-risk is not currently sufficient to support the future operations of the joint venture. All significant decisions require majority or super-majority approval of the board. As a result, PACCAR is not the primary beneficiary and the Company uses the equity method to account for the investment. Under the equity method, the original investments in the joint venture are recorded at cost and subsequently adjusted by the Company's share of equity in income or losses. The investment is included in Truck, Parts and Other "Other noncurrent assets, net" on the Company’s Consolidated Balance Sheets. PACCAR's share of the loss is included in Truck, Parts and Other "Interest and other (income) expenses, net" on the Company's Consolidated Statements of Income.

During the first quarter, expectations on electric vehicle demand in the commercial vehicle market continued to change. As a result, the Company and its joint venture partners agreed to finish building out the facility, and adjust the timing for installing the manufacturing capacity. As a result of these changes, the production start date will be extended. The Company and its joint venture partners concluded there is no impairment as of March 31, 2026. As of March 31, 2026, the Company has contributed $412.5 to the joint venture. PACCAR did not make contributions to the joint venture in the three months ended March 31, 2026 compared to $44.7 in the same period in 2025 and the maximum required contribution is $830.0. The Company's equity method investment, net of operating losses, was $373.4 and $379.4 at March 31, 2026 and December 31, 2025, respectively.

Earnings per Share: Basic earnings per common share are computed by dividing earnings by the weighted average number of common shares outstanding, plus the effect of any participating securities. Diluted earnings per common share are computed assuming that all potentially dilutive securities are converted into common shares under the treasury stock method.

The dilutive and antidilutive options are shown separately in the table below:

Three Months Ended March 31,

 

2026

 

 

2025

 

Additional shares

 

 

760,000

 

 

 

1,030,200

 

Antidilutive options

 

 

1,178,400

 

 

 

1,305,900

 

New Accounting Pronouncements: In November 2024, the Financial Accounting Standards Board (FASB) issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The amendments in this ASU expand the disclosures in the notes to the financial statements about specific cost and expense categories presented on the face of the income statement. This ASU is effective for annual periods beginning after December 15, 2026, and interim periods within annual periods beginning after December 15, 2027. Early adoption is permitted. The amendments in this ASU should be applied either (1) prospectively to financial statements issued for reporting periods after the effective date or (2) retrospectively to any or all prior periods presented. The Company is currently evaluating the impact of this update on the related notes to the financial statements.

The Company adopted the following standards on January 1, 2026, which had no impact on the Company's consolidated financial statements.

STANDARD

 

DESCRIPTION

 

2025-05

 

Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets

 

2025-09

 

Derivatives and Hedging (Topic 815): Hedge Accounting Improvements

 

 

 

The FASB also issued the following standards, which are not expected to have a material impact on the Company's consolidated financial statements.

STANDARD

 

DESCRIPTION

EFFECTIVE DATE

2025-06*

 

Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software

January 1, 2028

2025-10*

 

Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities

January 1, 2029

* The Company will adopt on the effective date.
v3.26.1
Sales and Revenues
 3 Months Ended
Mar. 31, 2026
Sales And Revenues [Abstract]  
Sales and Revenues

NOTE B – Sales and Revenues

Truck, Parts and Other

The Company enters into sales contracts with customers associated with purchases of the Company’s products and services including trucks, parts, product support, and other related services. Generally, the Company recognizes revenue for the amount of consideration it will receive for delivering a product or service to a customer. Revenue is recognized when the customer obtains control of the product or receives benefits of the service. The Company excludes sales taxes, value added taxes and other related taxes assessed by government agencies from revenue. There are no significant financing components included in product or services revenue since generally customers pay shortly after the products or services are transferred. In the Truck and Parts segments, when the Company grants extended payment terms on selected receivables and charges interest, interest income is recognized when earned.

The following table disaggregates Truck, Parts and Other revenues by major sources:

Three Months Ended March 31,

 

2026

 

 

2025

 

Truck

 

 

 

 

 

 

Truck sales

 

$

4,239.1

 

 

$

4,971.7

 

Revenues from extended warranties, operating leases and other

 

 

287.4

 

 

 

254.1

 

 

 

4,526.5

 

 

 

5,225.8

 

Parts

 

 

 

 

 

 

Parts sales

 

 

1,656.1

 

 

 

1,637.6

 

Revenues from dealer services and other

 

 

54.0

 

 

 

52.3

 

 

 

1,710.1

 

 

 

1,689.9

 

Intersegment eliminations and other

 

 

(2.3

)

 

 

(2.0

)

Truck, Parts and Other sales and revenues

 

$

6,234.3

 

 

$

6,913.7

 

The Company recognizes truck and parts sales as revenues when control of the products is transferred to customers which generally occurs upon shipment, except for certain truck sales which are subject to a residual value guarantee (RVG) by the Company. The standard payment term for trucks and aftermarket parts is typically within 30 days, but the Company may grant extended payment terms on selected receivables. The Company recognizes revenue for the invoice amount adjusted for estimated sales incentives and returns. Sales incentives and returns are estimated based on historical experience and are adjusted to current period revenue when the most likely amount of consideration the Company expects to receive changes or becomes fixed. Truck and parts sales include a standard product warranty which is included in cost of sales. The Company has elected to treat delivery services as a fulfillment activity with revenues recognized when the customer obtains control of the product. Delivery revenue is included in revenues and the related costs are included in cost of sales. For the Parts segment, revenue for remanufactured components (cores) is recognized using the same criteria as other parts sales. When a remanufactured part is sold, a deposit is collected that is repaid if the customer returns a core that meets certain specifications within a defined time period. The deposit received from the customer is recognized as a liability in "Accounts payable, accrued expenses and other" on the Company's Consolidated Balance Sheets. When a customer returns a core, the deposit is repaid and the liability is reversed. The Company is not disclosing truck order backlog, as a significant majority of the backlog has a duration of less than one year.

Truck sales with RVGs that allow customers the option to return their truck are accounted for as a sale when the customer does not have an economic incentive to return the truck to the Company, or as an operating lease when the customer does have an economic incentive to return the truck. The estimate of customers’ economic incentive to return the trucks is based on an analysis of historical guaranteed buyback value and estimated market value. When truck sales with RVGs are accounted for as a sale, revenue is recognized when the truck is transferred to the customer less an amount for expected returns. Expected returns are estimated by using a historical return rate.

Aftermarket parts sales allow for returns which are estimated at the time of sale based on historical data. Parts dealer services and other revenues are recognized as services are performed.

The following table presents the balance sheet classification of the estimated value of the returned goods assets and the related return liabilities:

 

 

March 31, 2026

 

 

December 31, 2025

 

 

 

ASSETS

 

 

LIABILITIES

 

 

ASSETS

 

 

LIABILITIES

 

Trucks

 

 

 

 

 

 

 

 

 

 

 

 

Other current assets

 

$

80.1

 

 

 

 

 

$

83.1

 

 

 

 

Accounts payable, accrued expenses and other

 

 

 

$

83.5

 

 

 

 

 

$

87.2

 

Other noncurrent assets, net

 

 

197.3

 

 

 

 

 

 

195.2

 

 

 

 

Other liabilities

 

 

 

 

204.6

 

 

 

 

 

203.0

 

 

$

277.4

 

 

$

288.1

 

 

$

278.3

 

 

$

290.2

 

Parts

 

 

 

 

 

 

 

 

 

 

Other current assets

 

$

92.2

 

 

 

 

 

$

97.0

 

 

 

 

Accounts payable, accrued expenses and other

 

 

 

$

227.0

 

 

 

 

$

239.6

 

 

 

$

92.2

 

 

$

227.0

 

 

$

97.0

 

 

$

239.6

 

The Company’s total commitment to acquire trucks at a guaranteed value for contracts accounted for as a sale was $630.6 at March 31, 2026.

Revenues from extended warranties, operating leases and other include optional extended warranty and repair and maintenance (R&M) service contracts which can be purchased for periods generally ranging up to five years. The Company defers revenue based on stand-alone observable selling prices when it receives payments in advance and generally recognizes the revenue on a straight-line basis over the warranty or R&M contract periods. See Note F, Product Support Liabilities, in the Notes to the Consolidated Financial Statements for further information. Also included are truck sales with an RVG accounted for as an operating lease. A liability is created for the residual value obligation with the remainder of the proceeds recorded as deferred revenue. The deferred revenue is recognized on a straight-line basis over the guarantee period, which typically ranges from three to five years. Deferred revenue related to trucks sold with an RVG was $22.5 at March 31, 2026. The Company expects to recognize approximately $8.0 of the remaining deferred revenue in 2026, $7.4 in 2027, $3.6 in 2028, $2.7 in 2029, $.7 in 2030 and $.1 thereafter. For the three months ended March 31, 2026, total operating lease revenue from truck sales with RVGs was $5.0 compared to $3.1 for the three months ended March 31, 2025. The Company’s total commitment to acquire trucks at a guaranteed value for contracts accounted for as a lease was $44.6 at March 31, 2026.

Intersegment eliminations and other consists of intersegment eliminations and other revenues not attributable to a reportable segment.

Financial Services

The Company’s Financial Services segment products include loans to customers collateralized by the vehicles being financed, finance leases for retail customers and dealers, dealer wholesale financing which includes floating-rate wholesale loans to PACCAR dealers for new and used trucks, and operating leases which include rentals on Company owned equipment. Interest income from finance and other receivables is recognized using the interest method. Certain loan origination costs are deferred and amortized to interest income over the expected life of the contracts using the straight-line method which approximates the interest method.

Operating lease rental revenue is recognized on a straight-line basis over the term of the lease. Customer contracts may include additional services such as excess mileage, R&M and other services on which revenue is recognized when earned. The Company’s full-service lease arrangements bundle these additional services. Rents for full-service lease contracts are allocated between lease and non-lease components based on the relative stand-alone price of each component. Taxes, such as sales and use and value added, which are collected by the Company from a customer, are excluded from the measurement of lease income and expenses.

Recognition of interest income and rental revenue is suspended (put on non-accrual status) when the receivable becomes more than 90 days past the contractual due date or earlier if some other event causes the Company to determine that collection is not probable. Accordingly, no finance receivables more than 90 days past due were accruing interest at March 31, 2026 or December 31, 2025. Recognition is resumed if the receivable becomes current by the payment of all amounts due under the terms of the existing contract and collection of remaining amounts is considered probable (if not contractually modified) or if the customer makes scheduled payments for three months and collection of remaining amounts is considered probable (if contractually modified). Payments received while the finance receivable is on non-accrual status are applied to interest and principal in accordance with the contractual terms.

Finance leases are secured by the trucks and related equipment being leased and the lease terms generally range from three to five years depending on the type and use of the equipment. The lessee is required to either purchase the equipment or guarantee to the Company a stated residual value upon the disposition of the equipment at the end of the finance lease term.

Operating lease terms generally range from three to five years. At the end of the operating lease term, the lessee has the option to return the equipment to the Company or purchase the equipment at its fair market value.

The Company determines its estimate of the residual value of leased vehicles by considering the length of the lease term, the truck model, the expected usage of the truck and anticipated market demand. If the sales price of the truck at the end of the agreement differs from the Company’s estimated residual value, a gain or loss will result. Future market conditions, changes in government regulations and other factors outside the Company’s control could impact the ultimate sales price of trucks returned under these contracts. Residual values are reviewed regularly and adjusted if market conditions warrant.

 

The following table summarizes Financial Services lease revenues by lease type:

Three Months Ended March 31,

 

2026

 

 

2025

 

Finance lease revenues

 

$

93.2

 

 

$

88.2

 

Operating lease revenues

 

 

154.8

 

 

 

150.8

 

Total lease revenues

 

$

248.0

 

 

$

239.0

 
v3.26.1
Investments in Marketable Securities
 3 Months Ended
Mar. 31, 2026
Investments, Debt and Equity Securities [Abstract]  
Investments in Marketable Securities

NOTE C - Investments in Marketable Securities

Debt Securities

The Company's investments in marketable debt securities are classified as available-for-sale. These investments are stated at fair value and may include an allowance for credit losses. Changes in the allowance for credit losses are recognized in the current period earnings and any unrealized gains or losses, net of tax, are included as a component of accumulated other comprehensive income (loss) (AOCI).

The Company utilizes third-party pricing services for all of its marketable debt security valuations. The Company reviews the pricing methodology used by the third‑party pricing services, including the manner employed to collect market information. On a quarterly basis, the Company also performs review and validation procedures on the pricing information received from the third-party providers. These procedures help ensure the fair value information used by the Company is determined in accordance with applicable accounting guidance.

The Company evaluates its investment in marketable debt securities at the end of each reporting period to determine if a decline in fair value is the result of credit losses or unrealized losses. In assessing credit losses, the Company considers the collectability of principal and interest payments by monitoring changes to issuers’ credit ratings, specific credit events associated with individual issuers as well as the credit ratings of any financial guarantor. The Company considers its intent for selling the security and whether it is more likely than not the Company will be able to hold the security until the recovery of

any credit losses and unrealized losses. Charges against the allowance for credit losses occur when a security with credit losses is sold or the Company no longer intends to hold that security.

Equity Securities

Marketable equity securities are traded on active exchanges and are measured at fair value. The realized and unrealized gains (losses) are recognized in investment income.

Marketable securities at March 31, 2026 and December 31, 2025 consisted of the following:

 

 

 

 

 

UNREALIZED

 

 

UNREALIZED

 

 

FAIR

 

At March 31, 2026

 

COST

 

 

GAINS

 

 

LOSSES

 

 

VALUE

 

Marketable debt securities

 

 

 

 

 

 

 

 

 

 

 

 

U.S. tax-exempt securities

 

$

288.1

 

 

$

2.3

 

 

$

.2

 

 

$

290.2

 

U.S. taxable municipal / non-U.S. provincial bonds

 

 

424.3

 

 

 

2.5

 

 

 

.8

 

 

 

426.0

 

U.S. corporate securities

 

 

970.5

 

 

 

3.9

 

 

 

2.1

 

 

 

972.3

 

U.S. government securities

 

 

467.6

 

 

 

.5

 

 

 

1.4

 

 

 

466.7

 

Non-U.S. corporate securities

 

 

616.3

 

 

 

2.5

 

 

 

2.1

 

 

 

616.7

 

Non-U.S. government securities

 

 

219.5

 

 

 

.2

 

 

 

1.4

 

 

 

218.3

 

Other debt securities

 

 

218.8

 

 

 

.9

 

 

 

.5

 

 

 

219.2

 

Marketable equity securities

 

 

10.0

 

 

 

 

 

 

5.9

 

 

 

4.1

 

Total marketable securities

 

$

3,215.1

 

 

$

12.8

 

 

$

14.4

 

 

$

3,213.5

 

 

 

 

 

 

 

UNREALIZED

 

 

UNREALIZED

 

 

FAIR

 

At December 31, 2025

 

COST

 

 

GAINS

 

 

LOSSES

 

 

VALUE

 

Marketable debt securities

 

 

 

 

 

 

 

 

 

 

 

 

U.S. tax-exempt securities

 

$

341.0

 

 

$

3.6

 

 

$

.1

 

 

$

344.5

 

U.S. taxable municipal / non-U.S. provincial bonds

 

 

417.7

 

 

 

4.2

 

 

 

.3

 

 

 

421.6

 

U.S. corporate securities

 

 

931.7

 

 

 

8.7

 

 

 

.1

 

 

 

940.3

 

U.S. government securities

 

 

433.9

 

 

 

2.5

 

 

 

.2

 

 

 

436.2

 

Non-U.S. corporate securities

 

 

634.8

 

 

 

5.4

 

 

 

.5

 

 

 

639.7

 

Non-U.S. government securities

 

 

212.8

 

 

 

1.3

 

 

 

.3

 

 

 

213.8

 

Other debt securities

 

 

206.4

 

 

 

1.6

 

 

 

.2

 

 

 

207.8

 

Marketable equity securities

 

 

10.0

 

 

 

 

 

 

6.2

 

 

 

3.8

 

Total marketable securities

 

$

3,188.3

 

 

$

27.3

 

 

$

7.9

 

 

$

3,207.7

 

 

The cost of marketable debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Amortization, accretion, interest and dividend income and realized gains and losses are included in investment income. The cost of securities sold is based on the specific identification method. Gross realized gains were $1.5 and $.9 and gross realized losses were $.7 and $.9 for the three months ended March 31, 2026 and 2025, respectively.

Net unrealized gains on marketable equity securities recognized in investment income were $.3 and $.4 for the three months ended March 31, 2026 and 2025, respectively.

Marketable debt securities with continuous unrealized losses and their related fair values were as follows:

 

 

March 31, 2026

 

 

December 31, 2025

 

 

 

LESS THAN

 

 

TWELVE MONTHS

 

 

LESS THAN

 

 

TWELVE MONTHS

 

 

 

TWELVE MONTHS

 

 

OR GREATER

 

 

TWELVE MONTHS

 

 

OR GREATER

 

Fair value

 

$

1,319.7

 

 

$

52.7

 

 

$

298.5

 

 

$

75.5

 

Unrealized losses

 

 

8.0

 

 

 

.5

 

 

 

1.0

 

 

 

.7

 

 

The unrealized losses on marketable debt securities above were due to higher yields on certain securities. The Company did not identify any indicators of a credit loss in its assessments. Accordingly, no allowance for credit losses was recorded at March 31, 2026 and December 31, 2025. The Company does not currently intend, and it is more likely than not that it will not be required, to sell the investment securities before recovery of the unrealized losses. The Company expects that the contractual principal and interest will be received on the investment securities.

Contractual maturities on marketable debt securities at March 31, 2026 were as follows:

 

 

AMORTIZED

 

 

FAIR

 

 

 

COST

 

 

VALUE

 

Within one year

 

$

681.3

 

 

$

682.9

 

One to five years

 

 

2,512.8

 

 

 

2,515.5

 

Six to ten years

 

 

6.0

 

 

 

5.9

 

More than ten years

 

 

5.0

 

 

 

5.1

 

 

$

3,205.1

 

 

$

3,209.4

 
v3.26.1
Inventories
 3 Months Ended
Mar. 31, 2026
Inventory Disclosure [Abstract]  
Inventories

NOTE D - Inventories

Inventories are stated at the lower of cost or net realizable value. Cost of inventories is determined principally by the first-in, first-out (FIFO) method. Inventories included the following:

 

 

March 31

 

 

December 31

 

 

 

2026

 

 

2025

 

Finished products

 

$

1,019.0

 

 

$

954.2

 

Work in process and raw materials

 

 

1,204.4

 

 

 

1,233.3

 

 

$

2,223.4

 

 

$

2,187.5

 
v3.26.1
Finance and Other Receivables
 3 Months Ended
Mar. 31, 2026
Receivables [Abstract]  
Finance and Other Receivables

NOTE E - Finance and Other Receivables

Finance and other receivables included the following:

 

 

March 31

 

 

December 31

 

 

 

2026

 

 

2025

 

Loans

 

$

10,357.3

 

 

$

10,407.6

 

Finance leases

 

 

5,143.2

 

 

 

5,264.6

 

Dealer wholesale financing

 

 

3,879.8

 

 

 

4,126.3

 

Operating lease receivables and other

 

 

157.8

 

 

 

148.9

 

 

 

19,538.1

 

 

 

19,947.4

 

Less allowance for losses:

 

 

 

 

 

 

Loans and leases

 

 

(190.8

)

 

 

(187.2

)

Dealer wholesale financing

 

 

(2.6

)

 

 

(2.8

)

Operating lease receivables and other

 

 

(2.9

)

 

 

(2.9

)

 

$

19,341.8

 

 

$

19,754.5

 

The net activity of dealer direct loans and dealer wholesale financing on new trucks is shown in the operating section of the Condensed Consolidated Statements of Cash Flows since those receivables finance the sale of Company inventory.

Allowance for Credit Losses

The Company continuously monitors the payment performance of its finance receivables. For large retail finance customers and dealers with wholesale financing, the Company regularly reviews their financial statements and makes site visits and phone contact as appropriate. If the Company becomes aware of circumstances that could cause those customers or dealers to face financial difficulty, whether or not they are past due, the customers are placed on a watch list.

The Company modifies loans and finance leases in the normal course of its Financial Services operations. The Company may modify loans and finance leases for commercial reasons or for credit reasons. Modifications for commercial reasons are changes to contract terms for customers that are not considered to be in financial difficulty. Insignificant delays are

modifications extending terms up to three months for customers experiencing some short-term financial stress, but not considered to be in financial difficulty. Modifications for credit reasons are changes to contract terms for customers considered to be in financial difficulty. The Company’s modifications typically result in granting more time to pay the contractual amounts owed and charging a fee and interest for the term of the modification.

 

When considering whether to modify customer accounts for credit reasons, the Company evaluates the creditworthiness of the customers and modifies those accounts that the Company considers likely to perform under the modified terms. The Company does not typically grant credit modifications for customers that do not meet minimum underwriting standards since the Company normally repossesses the financed equipment in these circumstances.

On average, commercial and other modifications extended contractual terms by approximately six months in 2026 and four months in 2025, and did not have a significant effect on the weighted-average term or interest rate of the total portfolio at March 31, 2026 and December 31, 2025.

The Company has developed a systematic methodology for determining the allowance for credit losses for its two portfolio segments, retail and wholesale. The retail segment consists of retail loans and sales-type finance leases, net of unearned interest. The wholesale segment consists of truck inventory financing loans to dealers that are collateralized by trucks and other collateral. The wholesale segment generally has less risk than the retail segment. Wholesale receivables generally are shorter in duration than retail receivables, and the Company requires periodic reporting of the wholesale dealer’s financial condition, conducts periodic audits of the trucks being financed and in many cases, obtains guarantees or other security such as dealership assets. In determining the allowance for credit losses, retail loans and finance leases are evaluated together since they relate to a similar customer base, their contractual terms require regular payment of principal and interest, generally over three to five years, and they are secured by the same type of collateral. The allowance for credit losses consists of both specific and general reserves.

The Company individually evaluates certain finance receivables for expected credit losses. Finance receivables that are evaluated individually consist of all wholesale accounts and certain large retail accounts with past due balances or otherwise determined to be at a higher risk of loss. In general, finance receivables that are 90 days past due are placed on non-accrual status. Finance receivables on non-accrual status which have been performing for 90 consecutive days are placed on accrual status if it is deemed probable that the Company will collect all principal and interest payments.

Individually evaluated receivables on non-accrual status are generally considered collateral dependent. Large balance retail and all wholesale receivables on non-accrual status are individually evaluated for loss based on the value of the underlying collateral or a discounted cash flow analysis. Small balance receivables on non-accrual status with similar risk characteristics are evaluated as a separate pool to determine the appropriate reserve for losses using the historical loss information discussed below.

The Company evaluates finance receivables that are not individually evaluated and share similar risk characteristics on a collective basis and determines the general allowance for credit losses for both retail and wholesale receivables based on historical loss information, using past due account data, current market conditions, and expected changes in future macroeconomic conditions that affect collectability. Historical credit loss data provides relevant information of expected credit losses. The historical information used includes assumptions regarding the likelihood of collecting current and past due accounts, repossession rates, and the recovery rate on the underlying collateral based on used truck values and other pledged collateral or recourse.

The Company has developed a range of loss estimates for each of its country portfolios based on historical experience, taking into account loss frequency and severity in both strong and weak truck market conditions. A projection is made of the range of estimated credit losses inherent in the portfolio from which an amount is determined based on current market conditions and other factors impacting the creditworthiness of the Company’s borrowers and their ability to repay. Adjustments to historical loss information are made for changes in forecasted economic conditions that are specific to the industry and markets in which the Company conducts business. The Company utilizes economic forecasts from third-party sources and determines expected losses based on historical experience under similar market conditions. After determining the appropriate level of the allowance for credit losses, a provision for losses on finance receivables is charged to income as necessary to reflect management’s estimate of expected credit losses, net of recoveries, inherent in the portfolio.

In determining the fair value of the collateral, the Company uses a pricing matrix and categorizes the fair value as Level 2 in the hierarchy of fair value measurement. The pricing matrix is reviewed quarterly and updated as appropriate. The pricing matrix considers the make, model and year of the equipment as well as recent sales prices of comparable equipment sold individually, which is the lowest unit of account, through wholesale channels to the Company’s dealers (principal market). The fair value of the collateral also considers the overall condition of the equipment.

 

Accounts are charged off against the allowance for credit losses when, in the judgment of management, they are considered uncollectible, which generally occurs upon repossession of the collateral. Typically the timing between the repossession and charge-off is not significant. In cases where repossession is delayed (e.g., for legal proceedings), the Company records a partial charge-off. The charge-off is determined by comparing the fair value of the collateral, less cost to sell, to the amortized cost basis.

For the following credit quality disclosures, finance receivables are classified into two portfolio segments, wholesale and retail. The retail portfolio is further segmented into dealer retail and customer retail. The dealer wholesale segment consists of truck inventory financing to PACCAR dealers. The dealer retail segment consists of loans and leases to participating dealers and franchises that use the proceeds to fund customers’ acquisition of commercial vehicles and related equipment. The customer retail segment consists of loans and leases directly to customers for the acquisition of commercial vehicles and related equipment. Customer retail receivables are further segregated between fleet and owner/operator classes. The fleet class consists of customer retail accounts operating five or more trucks. All other customer retail accounts are considered owner/operator. These two classes have similar measurement attributes, risk characteristics and common methods to monitor and assess credit risk.

The allowance for credit losses is summarized as follows:

 

 

2026

 

 

 

DEALER

 

 

CUSTOMER

 

 

 

 

 

 

 

 

 

WHOLESALE

 

 

RETAIL

 

 

RETAIL

 

 

OTHER*

 

 

TOTAL

 

Balance at January 1

 

$

2.8

 

 

$

1.7

 

 

$

185.5

 

 

$

2.9

 

 

$

192.9

 

Provision for losses

 

 

(.3

)

 

 

 

 

 

44.0

 

 

 

.4

 

 

 

44.1

 

Charge-offs

 

 

 

 

 

 

 

 

(44.6

)

 

 

(.6

)

 

 

(45.2

)

Recoveries

 

 

 

 

 

 

 

 

1.9

 

 

 

.2

 

 

 

2.1

 

Currency translation and other

 

 

.1

 

 

 

 

 

 

2.3

 

 

 

 

 

 

2.4

 

Balance at March 31

 

$

2.6

 

 

$

1.7

 

 

$

189.1

 

 

$

2.9

 

 

$

196.3

 

 

 

 

2025

 

 

 

DEALER

 

 

CUSTOMER

 

 

 

 

 

 

 

 

 

WHOLESALE

 

 

RETAIL

 

 

RETAIL

 

 

OTHER*

 

 

TOTAL

 

Balance at January 1

 

$

3.0

 

 

$

1.5

 

 

$

137.7

 

 

$

3.0

 

 

$

145.2

 

Provision for losses

 

 

 

 

 

(.1

)

 

 

18.2

 

 

 

.2

 

 

 

18.3

 

Charge-offs

 

 

 

 

 

 

 

 

(23.0

)

 

 

(.3

)

 

 

(23.3

)

Recoveries

 

 

 

 

 

 

 

 

2.2

 

 

 

.1

 

 

 

2.3

 

Currency translation and other

 

 

 

 

 

 

 

 

2.2

 

 

 

(.1

)

 

 

2.1

 

Balance at March 31

 

$

3.0

 

 

$

1.4

 

 

$

137.3

 

 

$

2.9

 

 

$

144.6

 

* Operating lease and other trade receivables.

Credit Quality

The Company’s customers are principally concentrated in the transportation industry in North America, Europe, Australia and Brasil. The Company’s portfolio assets are diversified over a large number of customers and dealers with no single customer or dealer balances representing over 5% of the total portfolio assets. The Company retains as collateral a security interest in the related equipment.

At the inception of each contract, the Company considers the credit risk based on a variety of credit quality factors including prior payment experience, customer financial information, credit-rating agency ratings, loan-to-value ratios and other internal metrics. On an ongoing basis, the Company monitors credit quality based on past due status and collection experience as there is a meaningful correlation between the past due status of customers and the risk of loss.

The Company has three credit quality indicators: performing, watch and at-risk. Performing accounts pay in accordance with the contractual terms and are not considered high-risk. Watch accounts include accounts 31 to 90 days past due and large accounts that are performing but are considered to be high‑risk. Watch accounts are not collateral dependent. At-risk accounts are collateral dependent, including accounts over 90 days past due and other accounts on non-accrual status.

The tables below summarize the amortized cost basis of the Company’s finance receivables within each credit quality indicator by year of origination and portfolio class and current period gross charge-offs of the Company’s finance receivables by year of origination and portfolio class.

 

REVOLVING

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At March 31, 2026

LOANS

 

 

2026

 

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

PRIOR

 

 

TOTAL

 

Amortized cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dealer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

$

3,866.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

3,866.8

 

Watch

 

5.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5.3

 

At-risk

 

7.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7.7

 

$

3,879.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

3,879.8

 

Retail:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

$

229.4

 

 

$

93.5

 

 

$

563.6

 

 

$

538.2

 

 

$

470.4

 

 

$

283.2

 

 

$

215.3

 

 

$

2,393.6

 

Watch

 

 

 

 

 

 

 

1.5

 

 

 

.8

 

 

 

1.2

 

 

 

.4

 

 

 

.1

 

 

 

4.0

 

 

$

229.4

 

 

$

93.5

 

 

$

565.1

 

 

$

539.0

 

 

$

471.6

 

 

$

283.6

 

 

$

215.4

 

 

$

2,397.6

 

Total dealer

$

4,109.2

 

 

$

93.5

 

 

$

565.1

 

 

$

539.0

 

 

$

471.6

 

 

$

283.6

 

 

$

215.4

 

 

$

6,277.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer retail:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fleet:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

 

$

785.3

 

 

$

3,960.2

 

 

$

3,026.0

 

 

$

1,771.9

 

 

$

740.3

 

 

$

445.2

 

 

$

10,728.9

 

Watch

 

 

 

 

9.7

 

 

 

105.0

 

 

 

57.6

 

 

 

55.3

 

 

 

36.1

 

 

 

15.5

 

 

 

279.2

 

At-risk

 

 

 

 

52.1

 

 

 

98.6

 

 

 

104.6

 

 

 

177.8

 

 

 

50.4

 

 

 

12.2

 

 

 

495.7

 

 

 

 

$

847.1

 

 

$

4,163.8

 

 

$

3,188.2

 

 

$

2,005.0

 

 

$

826.8

 

 

$

472.9

 

 

$

11,503.8

 

Owner/operator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

 

$

145.4

 

 

$

616.7

 

 

$

401.5

 

 

$

201.9

 

 

$

101.0

 

 

$

97.4

 

 

$

1,563.9

 

Watch

 

 

 

 

.4

 

 

 

6.5

 

 

 

5.9

 

 

 

5.6

 

 

 

2.3

 

 

 

1.5

 

 

 

22.2

 

At-risk

 

 

 

 

 

 

 

3.2

 

 

 

2.6

 

 

 

2.8

 

 

 

3.1

 

 

 

1.3

 

 

 

13.0

 

 

 

 

 

$

145.8

 

 

$

626.4

 

 

$

410.0

 

 

$

210.3

 

 

$

106.4

 

 

$

100.2

 

 

$

1,599.1

 

Total customer retail

 

 

 

$

992.9

 

 

$

4,790.2

 

 

$

3,598.2

 

 

$

2,215.3

 

 

$

933.2

 

 

$

573.1

 

 

$

13,102.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$

4,109.2

 

 

$

1,086.4

 

 

$

5,355.3

 

 

$

4,137.2

 

 

$

2,686.9

 

 

$

1,216.8

 

 

$

788.5

 

 

$

19,380.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2026

REVOLVING
LOANS

 

 

2026

 

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

PRIOR

 

 

TOTAL

 

Gross charge-offs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer retail:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fleet

 

 

 

$

.2

 

 

$

3.8

 

 

$

9.2

 

 

$

12.8

 

 

$

7.7

 

 

$

7.0

 

 

$

40.7

 

Owner/operator

 

 

 

 

.1

 

 

 

.5

 

 

 

.9

 

 

 

1.2

 

 

 

1.0

 

 

 

.2

 

 

 

3.9

 

Total

 

 

 

$

.3

 

 

$

4.3

 

 

$

10.1

 

 

$

14.0

 

 

$

8.7

 

 

$

7.2

 

 

$

44.6

 

 

 

 

REVOLVING

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At December 31, 2025

LOANS

 

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

PRIOR

 

 

TOTAL

 

Amortized cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dealer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

$

4,114.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

4,114.6

 

Watch

 

8.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8.1

 

At-risk

 

3.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.6

 

$

4,126.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

4,126.3

 

Retail:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

$

228.5

 

 

$

590.5

 

 

$

567.7

 

 

$

506.1

 

 

$

306.7

 

 

$

134.7

 

 

$

119.6

 

 

$

2,453.8

 

Watch

 

 

 

 

1.5

 

 

 

.8

 

 

 

1.3

 

 

 

.4

 

 

 

.3

 

 

 

 

 

 

4.3

 

 

$

228.5

 

 

$

592.0

 

 

$

568.5

 

 

$

507.4

 

 

$

307.1

 

 

$

135.0

 

 

$

119.6

 

 

$

2,458.1

 

Total dealer

$

4,354.8

 

 

$

592.0

 

 

$

568.5

 

 

$

507.4

 

 

$

307.1

 

 

$

135.0

 

 

$

119.6

 

 

$

6,584.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer retail:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fleet:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

 

$

4,465.0

 

 

$

3,399.5

 

 

$

2,060.2

 

 

$

919.3

 

 

$

254.4

 

 

$

68.6

 

 

$

11,167.0

 

Watch

 

 

 

 

63.7

 

 

 

35.0

 

 

 

63.4

 

 

 

44.8

 

 

 

16.2

 

 

 

.6

 

 

 

223.7

 

At-risk

 

 

 

 

70.7

 

 

 

80.0

 

 

 

147.9

 

 

 

50.5

 

 

 

9.0

 

 

 

1.7

 

 

 

359.8

 

 

 

 

$

4,599.4

 

 

$

3,514.5

 

 

$

2,271.5

 

 

$

1,014.6

 

 

$

279.6

 

 

$

70.9

 

 

$

11,750.5

 

Owner/operator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

 

$

624.5

 

 

$

404.0

 

 

$

213.5

 

 

$

114.9

 

 

$

54.2

 

 

$

10.1

 

 

$

1,421.2

 

Watch

 

 

 

 

5.4

 

 

 

5.5

 

 

 

4.2

 

 

 

3.6

 

 

 

1.6

 

 

 

.3

 

 

 

20.6

 

At-risk

 

 

 

 

8.1

 

 

 

3.8

 

 

 

4.0

 

 

 

4.5

 

 

 

1.1

 

 

 

.3

 

 

 

21.8

 

 

 

 

 

$

638.0

 

 

$

413.3

 

 

$

221.7

 

 

$

123.0

 

 

$

56.9

 

 

$

10.7

 

 

$

1,463.6

 

Total customer retail

 

 

 

$

5,237.4

 

 

$

3,927.8

 

 

$

2,493.2

 

 

$

1,137.6

 

 

$

336.5

 

 

$

81.6

 

 

$

13,214.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$

4,354.8

 

 

$

5,829.4

 

 

$

4,496.3

 

 

$

3,000.6

 

 

$

1,444.7

 

 

$

471.5

 

 

$

201.2

 

 

$

19,798.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended December 31, 2025

REVOLVING
LOANS

 

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

PRIOR

 

 

TOTAL

 

Gross charge-offs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer retail:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fleet

 

 

 

$

1.3

 

 

$

10.6

 

 

$

37.6

 

 

$

19.7

 

 

$

9.0

 

 

$

6.8

 

 

$

85.0

 

Owner/operator

 

 

 

 

.3

 

 

 

2.1

 

 

 

2.6

 

 

 

2.9

 

 

 

.6

 

 

 

.3

 

 

 

8.8

 

Total

 

 

 

$

1.6

 

 

$

12.7

 

 

$

40.2

 

 

$

22.6

 

 

$

9.6

 

 

$

7.1

 

 

$

93.8

 

 

The tables below summarize the Company’s finance receivables by aging category. In determining past due status, the Company considers the entire contractual account balance past due when any installment is over 30 days past due. Substantially all customer accounts that were greater than 30 days past due prior to credit modification became current upon modification for aging purposes.

 

 

DEALER

 

 

CUSTOMER RETAIL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OWNER/

 

 

 

 

At March 31, 2026

 

WHOLESALE

 

 

RETAIL

 

 

FLEET

 

 

OPERATOR

 

 

TOTAL

 

Current and up to 30 days past due

 

$

3,872.2

 

 

$

2,397.6

 

 

$

11,156.5

 

 

$

1,568.0

 

 

$

18,994.3

 

31 – 60 days past due

 

 

3.5

 

 

 

 

 

 

117.1

 

 

 

15.4

 

 

 

136.0

 

Greater than 60 days past due

 

 

4.1

 

 

 

 

 

 

230.2

 

 

 

15.7

 

 

 

250.0

 

 

 

$

3,879.8

 

 

$

2,397.6

 

 

$

11,503.8

 

 

$

1,599.1

 

 

$

19,380.3

 

 

 

 

DEALER

 

 

CUSTOMER RETAIL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OWNER/

 

 

 

 

At December 31, 2025

 

WHOLESALE

 

 

RETAIL

 

 

FLEET

 

 

OPERATOR

 

 

TOTAL

 

Current and up to 30 days past due

 

$

4,117.7

 

 

$

2,458.1

 

 

$

11,412.2

 

 

$

1,428.7

 

 

$

19,416.7

 

31 – 60 days past due

 

 

5.0

 

 

 

 

 

 

137.9

 

 

 

16.8

 

 

 

159.7

 

Greater than 60 days past due

 

 

3.6

 

 

 

 

 

 

200.4

 

 

 

18.1

 

 

 

222.1

 

 

 

$

4,126.3

 

 

$

2,458.1

 

 

$

11,750.5

 

 

$

1,463.6

 

 

$

19,798.5

 

The amortized cost basis of finance receivables that are on non-accrual status was as follows:

 

 

DEALER

 

CUSTOMER RETAIL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OWNER/

 

 

 

 

At March 31, 2026

 

WHOLESALE

 

 

RETAIL

 

FLEET

 

 

OPERATOR

 

 

TOTAL

 

Amortized cost basis with a specific reserve

 

 

 

 

 

 

$

441.7

 

 

$

11.5

 

 

$

453.2

 

Amortized cost basis with no specific reserve

 

$

7.7

 

 

 

 

 

53.8

 

 

 

1.5

 

 

 

63.0

 

Total

 

$

7.7

 

 

 

 

$

495.5

 

 

$

13.0

 

 

$

516.2

 

 

 

 

DEALER

 

CUSTOMER RETAIL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OWNER/

 

 

 

 

At December 31, 2025

 

WHOLESALE

 

 

RETAIL

 

FLEET

 

 

OPERATOR

 

 

TOTAL

 

Amortized cost basis with a specific reserve

 

 

 

 

 

 

$

334.2

 

 

$

15.5

 

 

$

349.7

 

Amortized cost basis with no specific reserve

 

$

3.6

 

 

 

 

 

18.0

 

 

 

6.2

 

 

 

27.8

 

Total

 

$

3.6

 

 

 

 

$

352.2

 

 

$

21.7

 

 

$

377.5

 

The increase in the amortized cost basis of finance receivables on non-accrual status as of March 31, 2026, compared to December 31, 2025, primarily reflects an increase in finance receivables modified for customers experiencing financial difficulty during the first quarter of 2026, driven by soft freight market conditions in the U.S. and Canada and elevated interest rates in Brasil.

Interest income recognized on a cash basis for finance receivables that are on non-accrual status was as follows:

Three Months Ended March 31,

 

2026

 

 

2025

 

Customer retail:

 

 

 

 

 

 

Fleet

 

$

.6

 

 

$

4.6

 

Owner/operator

 

 

.1

 

 

 

.1

 

 

 

$

.7

 

 

$

4.7

 

 

Customers Experiencing Financial Difficulty

The Company modified $224.3 and $49.8 of finance receivables for customers experiencing financial difficulty during the first three months of 2026 and 2025, respectively. Generally, other than insignificant term extensions and payment delays are modifications extending terms and payment delays for more than three months. The ending amortized cost basis of finance receivables for other than insignificant extensions and payment delays for customers in financial difficulty was as follows for the three months ended March 31, 2026 and March 31, 2025:

At March 31,

 

2026

 

 

2025

 

Customer retail:

 

 

 

 

 

 

Fleet

 

$

155.2

 

 

$

11.6

 

Owner/operator

 

 

.6

 

 

 

.1

 

 

 

$

155.8

 

 

$

11.7

 

Annualized % of total retail portfolio

 

 

4.0

%

 

 

.3

%

The credit modifications generally granted customers additional time to pay. The financial effects of the term extensions added a weighted average of 11 and 6 months to the life of the modified contracts for the three months ended March 31, 2026 and 2025, respectively. The higher level of modified contracts at March 31, 2026 also reflected a modification for a fleet customer in the U.S. and Canada that included a combination of principal forgiveness and additional time to pay. The financial effect of this modification was not significant to the allowance for credit losses.

The ending amortized cost basis and performance of finance receivables modified during the previous twelve months ended March 31, 2026 and March 31, 2025 was as follows:

At March 31,

 

2026

 

 

2025

 

Customer Retail:

 

 

 

 

 

 

Fleet:

 

 

 

 

 

 

Current and up to 30 days past due

 

$

196.6

 

 

$

160.6

 

31 – 60 days past due

 

 

.9

 

 

 

.2

 

Greater than 60 days past due

 

 

49.0

 

 

 

2.4

 

Owner/operator:

 

 

 

 

 

 

Current and up to 30 days past due

 

 

2.8

 

 

 

.5

 

31 – 60 days past due

 

 

1.4

 

 

 

 

Greater than 60 days past due

 

 

.2

 

 

 

 

 

 

$

250.9

 

 

$

163.7

 

The greater than 60 days past due at March 31, 2026 increased to $49.0 and was primarily due to one large fleet customer in the U.S. and two fleet customers in Mexico that became over 30 days past due during prior quarters. Contract modifications with customers experiencing financial difficulty during the previous twelve months that became over 30 days past due in the first quarter of 2026 and 2025 were not significant.

The Company continues to monitor the performance of finance receivables that are modified with customers experiencing financial difficulty. The effect of modifications is included in the Company's historical loss information used to determine the allowance for credit losses for the three months ended March 31, 2026 and 2025. For certain modifications to customers experiencing financial difficulties that are at-risk at March 31, 2026 and December 31, 2025, the allowance for credit loss is based on the value of underlying collateral or a discounted cash flow analysis.

Repossessions

When the Company determines a customer is not likely to meet its contractual commitments, the Company repossesses the vehicles which serve as collateral for the loans, finance leases and equipment under operating leases. The Company records the vehicles as used truck inventory included in Financial Services Other assets on the Consolidated Balance Sheets. The balance of repossessed inventory at March 31, 2026 and December 31, 2025 was $104.0 and $93.9, respectively.

Proceeds from the sales of repossessed assets were $21.2 and $21.1 for the three months ended March 31, 2026 and 2025, respectively. These amounts are included in Proceeds from asset disposals in the Condensed Consolidated Statements of Cash Flows. Write-downs of repossessed equipment on operating leases are recorded as impairments and included in Financial Services Depreciation and other expenses on the Consolidated Statements of Comprehensive Income.
v3.26.1
Product Support Liabilities
 3 Months Ended
Mar. 31, 2026
Product Warranties Disclosures [Abstract]  
Product Support Liabilities

NOTE F - Product Support Liabilities

Product support liabilities include estimated future payments related to product warranties and deferred revenues on optional extended warranties and R&M contracts. The Company generally offers one year warranties covering most of its vehicles and related aftermarket parts. For vehicles equipped with engines manufactured by PACCAR, the Company generally offers two year warranties on the engine. Specific terms and conditions vary depending on the product and the country of sale. Optional extended warranty and R&M contracts can be purchased for periods which generally range up to five years. Warranty expenses and reserves are estimated and recorded at the time products or contracts are sold based on historical and current data and reasonable expectations for the future regarding the frequency and cost of warranty claims, net of recoveries. The Company periodically assesses the adequacy of its recorded liabilities and adjusts them as appropriate to reflect actual experience. Revenue from extended warranty and R&M contracts is deferred and recognized to income generally on a straight-line basis over the contract period. Warranty and R&M costs on these contracts are recognized as incurred.

Changes in product support liabilities are summarized as follows:

WARRANTY RESERVES

2026

 

 

2025

 

Balance at January 1

$

596.2

 

 

$

606.1

 

Cost accruals

 

138.1

 

 

 

199.5

 

Payments

 

(174.2

)

 

 

(211.3

)

Change in estimates for pre-existing warranties

 

28.6

 

 

 

19.2

 

Currency translation and other

 

(2.8

)

 

 

8.9

 

Balance at March 31

$

585.9

 

 

$

622.4

 

 

DEFERRED REVENUES ON EXTENDED WARRANTIES AND R&M CONTRACTS

 

2026

 

 

 

2025

 

Balance at January 1

$

1,411.1

 

 

$

1,302.2

 

Deferred revenues

 

177.9

 

 

 

172.7

 

Revenues recognized

 

(173.7

)

 

 

(157.9

)

Currency translation

 

(11.3

)

 

 

26.5

 

Balance at March 31

$

1,404.0

 

 

$

1,343.5

 

The Company expects to recognize approximately $336.0 of the remaining deferred revenues on extended warranties and R&M contracts in 2026, $412.4 in 2027, $308.5 in 2028, $186.8 in 2029, $115.3 in 2030 and $45.0 thereafter.
v3.26.1
Stockholders' Equity
 3 Months Ended
Mar. 31, 2026
Equity [Abstract]  
Stockholders' Equity

NOTE G - Stockholders’ Equity

Comprehensive Income

The components of comprehensive income are as follows:

Three Months Ended March 31,

 

2026

 

 

2025

 

Net income

 

$

605.3

 

 

$

505.1

 

Other comprehensive income (loss) (OCI):

 

 

 

 

 

 

Unrealized gains (losses) on derivative contracts

 

 

13.6

 

 

 

(21.9

)

Tax effect

 

 

(2.5

)

 

 

6.5

 

 

 

11.1

 

 

 

(15.4

)

Unrealized (losses) gains on marketable debt securities

 

 

(21.3

)

 

 

15.7

 

Tax effect

 

 

5.4

 

 

 

(4.4

)

 

 

(15.9

)

 

 

11.3

 

Pension plans

 

 

.3

 

 

 

.4

 

Tax effect

 

 

(.1

)

 

 

 

 

 

.2

 

 

 

.4

 

Foreign currency translation gains

 

 

12.6

 

 

 

153.9

 

Net other comprehensive income

 

 

8.0

 

 

 

150.2

 

Comprehensive income

 

$

613.3

 

 

$

655.3

 

Accumulated Other Comprehensive Income (Loss)

The components of AOCI and the changes in AOCI, net of tax, included in the Consolidated Balance Sheets and the Consolidated Statements of Stockholders’ Equity consisted of the following:

 

 

DERIVATIVE
CONTRACTS

 

 

MARKETABLE
DEBT
SECURITIES

 

 

PENSION
PLANS

 

 

FOREIGN
CURRENCY
TRANSLATION

 

 

TOTAL

 

Balance at January 1, 2026

 

$

3.4

 

 

$

19.2

 

 

$

280.9

 

 

$

(640.2

)

 

$

(336.7

)

Recorded into AOCI

 

 

(45.5

)

 

 

(16.5

)

 

 

(1.1

)

 

 

12.6

 

 

 

(50.5

)

Reclassified out of AOCI

 

 

56.6

 

 

 

.6

 

 

 

1.3

 

 

 

 

 

 

58.5

 

Net other comprehensive income (loss)

 

 

11.1

 

 

 

(15.9

)

 

 

.2

 

 

 

12.6

 

 

 

8.0

 

Balance at March 31, 2026

 

$

14.5

 

 

$

3.3

 

 

$

281.1

 

 

$

(627.6

)

 

$

(328.7

)

 

 

 

DERIVATIVE
CONTRACTS

 

 

MARKETABLE
DEBT
SECURITIES

 

 

PENSION
PLANS

 

 

FOREIGN
CURRENCY
TRANSLATION

 

 

TOTAL

 

Balance at January 1, 2025

 

$

32.5

 

 

$

(.7

)

 

$

69.7

 

 

$

(1,214.8

)

 

$

(1,113.3

)

Recorded into AOCI

 

 

(69.2

)

 

 

11.4

 

 

 

(.4

)

 

 

153.9

 

 

 

95.7

 

Reclassified out of AOCI

 

 

53.8

 

 

 

(.1

)

 

 

.8

 

 

 

 

 

 

54.5

 

Net other comprehensive (loss) income

 

 

(15.4

)

 

 

11.3

 

 

 

.4

 

 

 

153.9

 

 

 

150.2

 

Balance at March 31, 2025

 

$

17.1

 

 

$

10.6

 

 

$

70.1

 

 

$

(1,060.9

)

 

$

(963.1

)

 

Reclassifications out of AOCI were as follows:

 

 

 

 

Three Months Ended

 

 

 

LINE ITEM IN THE CONSOLIDATED STATEMENTS OF

 

March 31

 

AOCI COMPONENTS

 

COMPREHENSIVE INCOME

 

 

2026

 

 

 

2025

 

Unrealized losses (gains) on derivative contracts:

 

 

 

 

 

 

Truck, Parts and Other

 

 

 

 

 

 

 

 

Foreign-exchange contracts

 

Net sales and revenues

 

$

4.4

 

 

$

(2.8

)

 

 

Cost of sales and revenues

 

 

1.7

 

 

 

(9.5

)

 

 

Interest and other (income) expenses, net

 

 

16.7

 

 

 

12.4

 

 

 

 

 

 

 

 

 

 

Commodity contracts

 

Cost of sales and revenues

 

 

.1

 

 

 

(.1

)

Financial Services

 

 

 

 

 

 

 

 

Foreign-exchange contracts

 

Interest and other borrowing expenses

 

 

7.7

 

 

 

5.8

 

Interest-rate contracts

 

Interest and other borrowing expenses

 

 

46.6

 

 

 

62.4

 

 

 

Pre-tax expense increase

 

 

77.2

 

 

 

68.2

 

 

 

Tax benefit

 

 

(20.6

)

 

 

(14.4

)

 

 

After-tax expense increase

 

 

56.6

 

 

 

53.8

 

Unrealized losses (gains) on marketable debt securities:

 

 

 

 

 

 

Marketable debt securities

 

Investment income

 

 

.8

 

 

 

(.2

)

 

 

Tax (benefit) expense

 

 

(.2

)

 

 

.1

 

 

 

After-tax income reduction (increase)

 

 

.6

 

 

 

(.1

)

Pension plans:

 

 

 

 

 

 

 

 

Truck, Parts and Other

 

 

 

 

 

 

 

 

Actuarial loss

 

Interest and other (income) expenses, net

 

 

1.1

 

 

 

.7

 

Prior service costs

 

Interest and other (income) expenses, net

 

 

.4

 

 

 

.3

 

 

 

Pre-tax expense increase

 

 

1.5

 

 

 

1.0

 

 

 

Tax benefit

 

 

(.2

)

 

 

(.2

)

 

 

After-tax expense increase

 

 

1.3

 

 

 

.8

 

Total reclassifications out of AOCI

 

 

 

$

58.5

 

 

$

54.5

 

 

Stock Compensation Plans

Stock-based compensation expense was $14.6 and $13.7 for the three months ended March 31, 2026 and 2025, respectively.

During the first three months of 2026, the Company issued 851,246 common shares under deferred and stock compensation arrangements.

Other Capital Stock Changes

During the first three months of 2026, the Company purchased 41,602 treasury shares under the Company’s Long-Term Incentive Plan. There were no treasury shares repurchased pursuant to the Company's common stock repurchase plan. Stock repurchases of $371.6 remain authorized under the current $500.0 program approved by the PACCAR Board of Directors on December 4, 2018.
v3.26.1
Income Taxes
 3 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
Income Taxes

NOTE H - Income Taxes

The effective tax rate for the first quarter of 2026 was 22.0% compared to 21.5% for the first quarter of 2025, reflecting the EC claims charge and related tax deduction recognized in 2025.
v3.26.1
Segment Information
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Information

NOTE I - Segment Information

PACCAR operates in three principal segments: Truck, Parts and Financial Services. The Company evaluates the performance of its Truck and Parts segments based on operating profits, which excludes investment income, other income and expense and income taxes. The Financial Services segment’s performance is evaluated based on income before income taxes. The accounting policies of the reportable segments are the same as those applied in the consolidated financial statements as described in Note A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

Truck and Parts

The Truck segment includes the design and manufacture of high-quality, light-, medium- and heavy-duty commercial trucks and the Parts segment includes the distribution of aftermarket parts for trucks and related commercial vehicles, both of which are sold through the same network of independent dealers. These segments derive a large proportion of their revenues and operating profits from operations in North America and Europe. The Truck segment incurs substantial costs to design, manufacture and sell trucks to its customers. The sale of new trucks provides the Parts segment with the basis for parts sales that may continue over the life of the truck, but are generally concentrated in the first five years after truck delivery. To reflect the benefit the Parts segment receives from costs incurred by the Truck segment, certain expenses are allocated from the Truck segment to the Parts segment. The expenses allocated are based on a percentage of the average annual expenses for factory overhead, engineering, research and development and selling, general and administrative (SG&A) expenses for the preceding five years. The allocation is based on the ratio of the average parts direct margin dollars (net sales less material and labor costs) to the total truck and parts direct margin dollars for the previous five years. The Company believes such expenses have been allocated on a reasonable basis. Truck segment assets related to the indirect expense allocation are not allocated to the Parts segment. Other expenses (income) included in the Truck and Parts segments is primarily the effects of foreign currency translation.

Financial Services

The Financial Services segment derives its earnings primarily from financing or leasing of PACCAR products and services provided to truck customers and dealers. Revenues are primarily generated from operations in North America and Europe.

In Europe, the marketing of used trucks, including those units sold by the Truck segment subject to an RVG, is performed by the Financial Services segment. When a customer returns the truck at the end of the RVG contract, the Company’s Truck segment records a reduction in an RVG liability and the Company’s Financial Services segment records a used truck asset and revenue from the subsequent sale. Certain gains and losses from the sale of these used trucks are shared with the Truck segment.

Other

Included in Other is sales, income and expenses not attributable to a reportable segment. The primary items include non-service cost components of pension expense, certain corporate income and expenses and a charge for civil litigation claims in Europe in 2025. Intercompany interest (expense) income on dealer wholesale financing and on cash advances with the financial services companies are also included.

 

Three Months Ended March 31, 2026

 

 

Truck

 

 

Parts

 

 

Other

 

 

Truck, Parts and Other

 

 

Financial Services

 

 

Total

 

Net sales and revenues

$

4,672.3

 

 

$

1,730.1

 

 

$

(2.3

)

 

$

6,400.1

 

 

$

542.2

 

 

$

6,942.3

 

Less intersegment

 

(145.8

)

 

 

(20.0

)

 

 

 

 

 

(165.8

)

 

 

 

 

 

(165.8

)

External Customers

$

4,526.5

 

 

$

1,710.1

 

 

$

(2.3

)

 

$

6,234.3

 

 

$

542.2

 

 

$

6,776.5

 

Cost of sales and revenues

 

4,208.8

 

 

 

1,203.7

 

 

 

4.0

 

 

 

5,416.5

 

 

 

 

 

 

5,416.5

 

Research and development

 

73.6

 

 

 

35.5

 

 

 

 

 

 

109.1

 

 

 

 

 

 

109.1

 

Selling, general and administrative

 

61.4

 

 

 

67.7

 

 

 

20.5

 

 

 

149.6

 

 

 

39.7

 

 

 

189.3

 

Interest and other borrowing expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

182.8

 

 

 

182.8

 

Depreciation and other expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

160.1

 

 

 

160.1

 

Provision for losses on receivables

 

 

 

 

 

 

 

 

 

 

 

 

 

44.1

 

 

 

44.1

 

Other segment expenses (income), net

 

6.5

 

 

 

.9

 

 

 

(28.7

)

 

 

(21.3

)

 

 

 

 

 

(21.3

)

$

176.2

 

 

$

402.3

 

 

$

1.9

 

 

$

580.4

 

 

$

115.5

 

 

$

695.9

 

Investment income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

80.4

 

Income before income taxes

$

176.2

 

 

$

402.3

 

 

$

1.9

 

 

$

580.4

 

 

$

115.5

 

 

$

776.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

$

92.4

 

 

$

4.5

 

 

$

6.1

 

 

$

103.0

 

 

$

97.1

 

 

$

200.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenditures for long-lived assets

$

125.2

 

 

$

5.1

 

 

$

12.2

 

 

$

142.5

 

 

$

163.7

 

 

$

306.2

 

 

 

 

Three Months Ended March 31, 2025

 

 

Truck

 

 

Parts

 

 

Other

 

 

Truck, Parts and Other

 

 

Financial Services

 

 

Total

 

Net sales and revenues

$

5,390.8

 

 

$

1,708.7

 

 

$

(2.0

)

 

$

7,097.5

 

 

$

528.0

 

 

$

7,625.5

 

Less intersegment

 

(165.0

)

 

 

(18.8

)

 

 

 

 

 

(183.8

)

 

 

 

 

 

(183.8

)

External Customers

$

5,225.8

 

 

$

1,689.9

 

 

$

(2.0

)

 

$

6,913.7

 

 

$

528.0

 

 

$

7,441.7

 

Cost of sales and revenues

 

4,716.5

 

 

 

1,171.5

 

 

 

3.0

 

 

 

5,891.0

 

 

 

 

 

 

5,891.0

 

Research and development

 

85.4

 

 

 

30.0

 

 

 

 

 

 

115.4

 

 

 

 

 

 

115.4

 

Selling, general and administrative

 

57.3

 

 

 

60.9

 

 

 

25.1

 

 

 

143.3

 

 

 

38.3

 

 

 

181.6

 

Interest and other borrowing expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

190.6

 

 

 

190.6

 

Depreciation and other expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

159.7

 

 

 

159.7

 

Provision for losses on receivables

 

 

 

 

 

 

 

 

 

 

 

 

 

18.3

 

 

 

18.3

 

Other segment expenses, net*

 

1.7

 

 

 

1.0

 

 

 

323.1

 

 

 

325.8

 

 

 

 

 

 

325.8

 

$

364.9

 

 

$

426.5

 

 

$

(353.2

)

 

$

438.2

 

 

$

121.1

 

 

$

559.3

 

Investment income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

83.8

 

Income (loss) before income taxes

$

364.9

 

 

$

426.5

 

 

$

(353.2

)

 

$

438.2

 

 

$

121.1

 

 

$

643.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

$

90.9

 

 

$

4.3

 

 

$

6.1

 

 

$

101.3

 

 

$

103.8

 

 

$

205.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenditures for long-lived assets

$

162.1

 

 

$

3.3

 

 

$

14.7

 

 

$

180.1

 

 

$

152.5

 

 

$

332.6

 

* In the first quarter of 2025, Other includes a $350.0 charge related to civil litigation in Europe (EC-related claims) which is discussed in Note M.

 

March 31

 

 

December 31

 

Business Segment Data

2026

 

 

2025

 

Segment Assets:

 

 

 

 

 

Truck

$

8,189.1

 

 

$

7,966.1

 

Parts

 

2,350.9

 

 

 

2,278.5

 

Other

 

2,069.9

 

 

 

2,034.5

 

Cash and marketable securities

 

8,595.4

 

 

 

9,253.7

 

 

 

21,205.3

 

 

 

21,532.8

 

Financial services

 

22,348.2

 

 

 

22,803.4

 

 

$

43,553.5

 

 

$

44,336.2

 
v3.26.1
Derivative Financial Instruments
 3 Months Ended
Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments

NOTE J - Derivative Financial Instruments

As part of its risk management strategy, the Company enters into derivative contracts to hedge against the risks of interest rates, foreign currency rates and commodity prices. Certain derivative instruments designated as fair value hedges, cash flow hedges or net investment hedges are subject to hedge accounting. Derivative instruments that are not subject to hedge accounting are held as derivatives not designated as hedging instruments. The Company’s policies prohibit the use of derivatives for speculation or trading. At the inception of each hedge relationship, the Company documents its risk management objectives, procedures and accounting treatment. All of the Company’s interest-rate, commodity as well as certain foreign-exchange contracts are transacted under International Swaps and Derivatives Association (ISDA) master agreements. Each agreement permits the net settlement of amounts owed in the event of default and certain other termination events. For derivative financial instruments, the Company has elected not to offset derivative positions in the balance sheet with the same counterparty under the same agreements and is not required to post or receive collateral.

Exposure limits and minimum credit ratings are used to minimize the risks of counterparty default. The Company’s maximum exposure to potential default of its derivative counterparties is limited to the asset position of its derivative portfolio. The asset position of the Company’s derivative portfolio was $61.0 at March 31, 2026.

The Company assesses hedges at inception and on an ongoing basis to determine if the designated derivatives are highly effective in offsetting changes in fair values or cash flow of the hedged items. Hedge accounting is discontinued prospectively when the Company determines a derivative financial instrument has ceased to be a highly effective hedge. Cash flows from derivative instruments are included in Operating activities in the Condensed Consolidated Statements of Cash Flows.

Interest-Rate Contracts: The Company enters into various interest-rate contracts, including interest-rate swaps and cross currency interest-rate swaps. Interest-rate swaps involve the exchange of fixed for floating rate or floating for fixed rate interest payments based on the contractual notional amounts in a single currency. Cross currency interest-rate swaps involve the exchange of notional amounts and interest payments in different currencies. The Company is exposed to interest-rate and exchange-rate risk caused by market volatility as a result of its borrowing activities. The objective of these contracts is to mitigate the fluctuations on earnings, cash flows and fair value of borrowings. Net amounts paid or received are reflected as adjustments to interest expense.

At March 31, 2026, the notional amount of the Company’s interest-rate contracts was $4,465.6 with amounts expiring over the next 8.0 years. Notional maturities for all interest-rate contracts are $1,126.5 for the remainder of 2026, $865.0 for 2027, $841.2 for 2028, $1,186.4 for 2029, $34.5 for 2030, $412.0 for 2031 and thereafter.

Foreign-Exchange Contracts: The Company enters into foreign-exchange contracts to hedge certain anticipated transactions and assets and liabilities denominated in foreign currencies, particularly the Canadian dollar, the euro, the British pound, the Australian dollar, the Brazilian real and the Mexican peso. The objective is to reduce fluctuations in earnings and cash flows associated with changes in foreign currency exchange rates. The Company enters into foreign-exchange contracts as net investment hedges to reduce the foreign currency exposure from its investments in foreign subsidiaries. At March 31, 2026, the notional amount of the outstanding foreign-exchange contracts was $1,698.5. Foreign-exchange contracts typically mature within one year.

Commodity Contracts: The Company enters into commodity forward contracts to hedge the prices of certain commodities used in the production of trucks. The objective is to reduce the fluctuation in earnings and cash flows associated with adverse movement in commodity prices. At March 31, 2026, the notional amount of the outstanding commodity contracts was $26.2. Commodity contracts mature within one year.

The following table presents the balance sheet classification, fair value, gross and net amounts of derivative financial instruments:

 

March 31, 2026

 

 

December 31, 2025

 

 

 

ASSETS

 

 

LIABILITIES

 

 

ASSETS

 

 

LIABILITIES

 

Derivatives designated under hedge accounting:

 

 

 

 

 

 

 

 

 

 

 

 

Interest-rate contracts:

 

 

 

 

 

 

 

 

 

 

 

 

Financial Services:

 

 

 

 

 

 

 

 

 

 

 

 

Other assets

 

$

40.5

 

 

 

 

 

$

50.0

 

 

 

 

Deferred taxes and other liabilities

 

 

 

 

$

101.7

 

 

 

 

 

$

76.8

 

Foreign-exchange contracts:

 

 

 

 

 

 

 

 

 

 

 

 

Truck, Parts and Other:

 

 

 

 

 

 

 

 

 

 

 

 

Other current assets

 

 

17.3

 

 

 

 

 

 

11.9

 

 

 

 

Accounts payable, accrued expenses and other

 

 

 

 

 

27.5

 

 

 

 

 

 

84.3

 

Financial Services:

 

 

 

 

 

 

 

 

 

 

 

 

Deferred taxes and other liabilities

 

 

 

 

 

12.1

 

 

 

 

 

 

4.2

 

Commodity contracts:

 

 

 

 

 

 

 

 

 

 

 

 

Truck, Parts and Other:

 

 

 

 

 

 

 

 

 

 

 

 

Other current assets

 

 

1.1

 

 

 

 

 

 

.3

 

 

 

 

Accounts payable, accrued expenses and other

 

 

 

 

 

.1

 

 

 

 

 

 

 

 

$

58.9

 

 

$

141.4

 

 

$

62.2

 

 

$

165.3

 

Derivatives not designated as hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

Foreign-exchange contracts:

 

 

 

 

 

 

 

 

 

 

 

 

Truck, Parts and Other:

 

 

 

 

 

 

 

 

 

 

 

 

Other current assets

 

$

1.7

 

 

 

 

 

$

.5

 

 

 

 

Accounts payable, accrued expenses and other

 

 

 

 

$

1.3

 

 

 

 

 

$

.9

 

Financial Services:

 

 

 

 

 

 

 

 

 

 

 

 

Other assets

 

 

.4

 

 

 

 

 

 

.3

 

 

 

 

Deferred taxes and other liabilities

 

 

 

 

 

.7

 

 

 

 

 

 

.1

 

 

$

2.1

 

 

$

2.0

 

 

$

.8

 

 

$

1.0

 

Gross amounts recognized in Balance Sheets

 

$

61.0

 

 

$

143.4

 

 

$

63.0

 

 

$

166.3

 

Less amounts not offset in financial instruments, subject to
enforceable master netting arrangements:

 

 

 

 

 

 

 

 

 

 

 

 

Truck, Parts and Other:

 

 

 

 

 

 

 

 

 

 

 

 

Foreign-exchange contracts

 

$

(.8

)

 

$

(.8

)

 

$

(.4

)

 

$

(.4

)

Commodity contracts

 

 

(.1

)

 

 

(.1

)

 

 

 

 

 

 

Financial Services:

 

 

 

 

 

 

 

 

 

 

 

 

Interest-rate contracts

 

 

(15.2

)

 

 

(15.2

)

 

 

(15.6

)

 

 

(15.6

)

Net amount

 

$

44.9

 

 

$

127.3

 

 

$

47.0

 

 

$

150.3

 

 

The following table presents the amount of loss (gain) from derivative financial instruments recorded in the Consolidated Statements of Comprehensive Income:

Three Months Ended March 31,

2026

 

 

2025

 

 

INTEREST-

 

 

FOREIGN-

 

 

INTEREST-

 

 

FOREIGN-

 

 

RATE

 

 

EXCHANGE

 

 

RATE

 

 

EXCHANGE

 

Truck, Parts and Other:

 

 

 

 

 

 

 

 

 

 

 

Net sales and revenues

 

 

 

 

 

 

 

 

 

 

 

Cash flow hedges

 

 

 

$

4.4

 

 

 

 

 

$

(2.8

)

Cost of sales and revenues

 

 

 

 

 

 

 

 

 

 

 

Cash flow hedges

 

 

 

 

1.7

 

 

 

 

 

 

(9.5

)

Derivatives not designated as hedging instruments

 

 

 

 

.1

 

 

 

 

 

 

(.7

)

Interest and other (income) expenses, net

 

 

 

 

 

 

 

 

 

 

 

Cash flow hedges

 

 

 

 

16.7

 

 

 

 

 

 

12.4

 

Net investment hedges

 

 

 

 

(3.7

)

 

 

 

 

 

(4.1

)

Derivatives not designated as hedging instruments

 

 

 

 

(.9

)

 

 

 

 

 

1.3

 

 

 

 

 

$

18.3

 

 

 

 

 

$

(3.4

)

Financial Services:

 

 

 

 

 

 

 

 

 

 

 

Interest and other borrowing expenses

 

 

 

 

 

 

 

 

 

 

 

Cash flow hedges

$

46.6

 

 

$

7.7

 

 

$

62.4

 

 

$

5.8

 

Fair value hedges

 

.3

 

 

 

 

 

 

1.0

 

 

 

 

Derivatives not designated as hedging instruments

 

 

 

 

(1.4

)

 

 

 

 

 

.1

 

 

$

46.9

 

 

$

6.3

 

 

$

63.4

 

 

$

5.9

 

Total

$

46.9

 

 

$

24.6

 

 

$

63.4

 

 

$

2.5

 

 

The loss (gain) from commodity contracts recorded in Cost of sales and revenues was $.1 and $(.1) for the three months ended March 31, 2026 and 2025, respectively.

Fair Value Hedges

Changes in the fair value of derivatives designated as fair value hedges are recorded in earnings together with the changes in fair value of the hedged item attributable to the risk being hedged. The following table presents the amounts recorded on the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges:

 

 

March 31

 

 

December 31

 

 

 

2026

 

 

2025

 

Financial Services

 

 

 

 

 

 

Term notes:

 

 

 

 

 

 

Carrying amount of the hedged liabilities

 

$

759.2

 

 

$

753.7

 

Cumulative basis adjustment increase included in the carrying amount

 

 

.8

 

 

 

3.9

 

The above table excludes the cumulative basis adjustments on discontinued hedge relationships of $.7 and nil as of March 31, 2026 and December 31, 2025, respectively.

Cash Flow Hedges

Substantially all of the Company’s interest-rate contracts and commodity contracts and some foreign-exchange contracts have been designated as cash flow hedges. Changes in the fair value of derivatives designated as cash flow hedges are recorded in AOCI. Amounts in AOCI are reclassified into net income in the same period in which the hedged transaction affects earnings. The Company elected to exclude the forward premium component (excluded component) on some foreign-exchange cash flow hedges and amortize the excluded component over the life of the derivative instruments. The amortization of the excluded component is recognized in Interest and other (income) expenses, net in the Truck, Parts and Other segment and Interest and other borrowing expenses in the Financial Services segment in the Consolidated Statements of Comprehensive Income. The maximum length of time over which the Company is hedging its exposure to the variability in future cash flows is 6.7 years.

The following table presents the pre-tax effect of (loss) gain on cash flow hedges recognized in other comprehensive income (loss) (OCI):

Three Months Ended March 31,

 

2026

 

 

2025

 

 

 

INTEREST-

 

 

FOREIGN-

 

 

 

 

 

INTEREST-

 

 

FOREIGN-

 

 

 

 

 

 

RATE

 

 

EXCHANGE

 

 

COMMODITY

 

 

RATE

 

 

EXCHANGE

 

 

COMMODITY

 

(Loss) gain recognized in OCI:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Truck, Parts and Other

 

 

 

 

$

(18.2

)

 

$

1.3

 

 

 

 

 

$

(11.3

)

 

$

(.2

)

Financial Services

 

$

(38.9

)

 

 

(7.8

)

 

 

 

 

$

(72.0

)

 

 

(9.1

)

 

 

 

 

 

$

(38.9

)

 

$

(26.0

)

 

$

1.3

 

 

$

(72.0

)

 

$

(20.4

)

 

$

(.2

)

The amount of loss in AOCI at March 31, 2026 that is estimated to be reclassified into earnings in the following 12 months if interest rates and exchange rates remain unchanged is approximately $26.3, net of taxes. The fixed interest earned on finance receivables will offset the amount recognized in interest expense, resulting in a stable interest margin consistent with the Company’s risk management strategy.

The amount of gains (losses) reclassified out of AOCI into net income based on the probability that the original forecasted transactions would not occur was nil for the three months ended March 31, 2026 and 2025.

Net Investment Hedges

Changes in the fair value of derivatives designated as net investment hedges are recorded in AOCI as an adjustment to the Cumulative Translation Adjustment (CTA). At March 31, 2026, the notional amount of the outstanding net investment hedges was $471.1. For the three months ended March 31, 2026 and 2025, the pre-tax gain (loss) recognized in OCI for the net investment hedges was $18.8 and $(55.6), respectively.
v3.26.1
Fair Value Measurements
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements

NOTE K - Fair Value Measurements

Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Inputs to valuation techniques used to measure fair value are either observable or unobservable. These inputs have been categorized into the fair value hierarchy described below.

Level 1 – Valuations are based on quoted prices that the Company has the ability to obtain in actively traded markets for identical assets or liabilities. Since valuations are based on quoted prices that are readily and regularly available in an active market or exchange traded market, valuation of these instruments does not require a significant degree of judgment.

Level 2 – Valuations are based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market.

Level 3 – Valuations are based on model-based techniques for which some or all of the assumptions are obtained from indirect market information that is significant to the overall fair value measurement and which require a significant degree of management judgment.

The Company uses the following methods and assumptions to measure fair value for assets and liabilities subject to recurring fair value measurements.

Marketable Debt Securities: The Company’s marketable debt securities consist of municipal bonds, government obligations, investment-grade corporate obligations, commercial paper, asset-backed securities and term deposits. The fair value of U.S. government obligations is determined using the market approach and is based on quoted prices in active markets and are categorized as Level 1.

The fair value of non-U.S. government bonds, municipal bonds, corporate bonds, asset-backed securities, commercial paper and term deposits is determined using the market approach and is primarily based on matrix pricing as a practical expedient which does not rely exclusively on quoted prices for a specific security. Significant inputs used to determine fair value include interest rates, yield curves, credit rating of the security and other observable market information and are categorized as Level 2.

Marketable Equity Securities: The Company’s equity securities are traded on active exchanges and are classified as Level 1.

Derivative Financial Instruments: The Company’s derivative contracts consist of interest-rate swaps, cross currency swaps, foreign currency exchange and commodity contracts. These derivative contracts are traded over the counter, and their fair value is determined using industry standard valuation models, which are based on the income approach (i.e., discounted cash flows). The significant observable inputs into the valuation models include interest rates, yield curves, currency exchange rates, credit default swap spreads, forward rates and commodity prices and are categorized as Level 2.

Assets and Liabilities Subject to Recurring Fair Value Measurement

The Company’s assets and liabilities subject to recurring fair value measurements are either Level 1 or Level 2 as follows:

At March 31, 2026

 

LEVEL 1

 

 

LEVEL 2

 

 

TOTAL

 

Assets:

 

 

 

 

 

 

 

 

 

Marketable debt securities

 

 

 

 

 

 

 

 

 

U.S. tax-exempt securities

 

 

 

 

$

290.2

 

 

$

290.2

 

U.S. taxable municipal / non-U.S. provincial bonds

 

 

 

 

 

426.0

 

 

 

426.0

 

U.S. corporate securities

 

 

 

 

 

972.3

 

 

 

972.3

 

U.S. government securities

 

$

466.7

 

 

 

 

 

 

466.7

 

Non-U.S. corporate securities

 

 

 

 

 

616.7

 

 

 

616.7

 

Non-U.S. government securities

 

 

 

 

 

218.3

 

 

 

218.3

 

Other debt securities

 

 

 

 

 

219.2

 

 

 

219.2

 

Total marketable debt securities

 

$

466.7

 

 

$

2,742.7

 

 

$

3,209.4

 

Marketable equity securities

 

$

4.1

 

 

 

 

 

$

4.1

 

Total marketable securities

 

$

470.8

 

 

$

2,742.7

 

 

$

3,213.5

 

Derivatives

 

 

 

 

 

 

 

 

 

Cross currency swaps

 

 

 

 

$

22.0

 

 

$

22.0

 

Interest-rate swaps

 

 

 

 

 

18.5

 

 

 

18.5

 

Foreign-exchange contracts

 

 

 

 

 

19.4

 

 

 

19.4

 

Commodity contracts

 

 

 

 

 

1.1

 

 

 

1.1

 

Total derivative assets

 

 

 

 

$

61.0

 

 

$

61.0

 

Liabilities:

 

 

 

 

 

 

 

 

 

Derivatives

 

 

 

 

 

 

 

 

 

Cross currency swaps

 

 

 

 

$

96.5

 

 

$

96.5

 

Interest-rate swaps

 

 

 

 

 

5.2

 

 

 

5.2

 

Foreign-exchange contracts

 

 

 

 

 

41.6

 

 

 

41.6

 

Commodity contracts

 

 

 

 

 

.1

 

 

 

.1

 

Total derivative liabilities

 

 

 

 

$

143.4

 

 

$

143.4

 

 

At December 31, 2025

 

LEVEL 1

 

 

LEVEL 2

 

 

TOTAL

 

Assets:

 

 

 

 

 

 

 

 

 

Marketable debt securities

 

 

 

 

 

 

 

 

 

U.S. tax-exempt securities

 

 

 

 

$

344.5

 

 

$

344.5

 

U.S. taxable municipal / non-U.S. provincial bonds

 

 

 

 

 

421.6

 

 

 

421.6

 

U.S. corporate securities

 

 

 

 

 

940.3

 

 

 

940.3

 

U.S. government securities

 

$

436.2

 

 

 

 

 

 

436.2

 

Non-U.S. corporate securities

 

 

 

 

 

639.7

 

 

 

639.7

 

Non-U.S. government securities

 

 

 

 

 

213.8

 

 

 

213.8

 

Other debt securities

 

 

 

 

 

207.8

 

 

 

207.8

 

Total marketable debt securities

 

$

436.2

 

 

$

2,767.7

 

 

$

3,203.9

 

Marketable equity securities

 

$

3.8

 

 

 

 

 

$

3.8

 

Total marketable securities

 

$

440.0

 

 

$

2,767.7

 

 

$

3,207.7

 

Derivatives

 

 

 

 

 

 

 

 

 

Cross currency swaps

 

 

 

$

30.0

 

 

$

30.0

 

Interest-rate swaps

 

 

 

 

20.0

 

 

 

20.0

 

Foreign-exchange contracts

 

 

 

 

12.7

 

 

 

12.7

 

Commodity contracts

 

 

 

 

 

.3

 

 

 

.3

 

Total derivative assets

 

 

 

 

$

63.0

 

 

$

63.0

 

Liabilities:

 

 

 

 

 

 

 

 

 

Derivatives

 

 

 

 

 

 

 

 

 

Cross currency swaps

 

 

 

$

67.1

 

 

$

67.1

 

Interest-rate swaps

 

 

 

 

9.7

 

 

 

9.7

 

Foreign-exchange contracts

 

 

 

 

89.5

 

 

 

89.5

 

Total derivative liabilities

 

 

 

 

$

166.3

 

 

$

166.3

 

Fair Value Disclosure of Other Financial Instruments

For financial instruments that are not recognized at fair value, the Company uses the following methods and assumptions to determine the fair value. These instruments are categorized as Level 2, except cash which is categorized as Level 1 and fixed rate loans which are categorized as Level 3.

Cash and Cash Equivalents: Carrying amounts approximate fair value.

Financial Services Net Receivables: For floating-rate loans, floating-rate wholesale financing, and operating lease and other trade receivables, carrying values approximate fair values. For fixed rate loans, fair values are estimated using the income approach by discounting cash flows to their present value based on assumptions regarding the credit and market risks to approximate current rates for comparable loans. Finance lease receivables and related allowance for credit losses have been excluded from the accompanying table.

Debt: The carrying amounts of Financial Services commercial paper, variable rate bank loans and variable rate term notes approximate fair value. For fixed rate debt, fair values are estimated using the income approach by discounting cash flows to their present value based on current rates for comparable debt.

The Company’s estimate of fair value for fixed rate loans and debt that are not carried at fair value was as follows:

 

 

March 31, 2026

 

 

December 31, 2025

 

 

 

CARRYING

 

 

FAIR

 

 

CARRYING

 

 

FAIR

 

 

 

AMOUNT

 

 

VALUE

 

 

AMOUNT

 

 

VALUE

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Financial Services fixed rate loans

 

$

9,903.6

 

 

$

9,944.8

 

 

$

9,928.0

 

 

$

10,118.4

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Financial Services fixed rate debt

 

 

10,042.6

 

 

 

10,110.5

 

 

 

10,453.1

 

 

 

10,570.6

 
v3.26.1
Employee Benefit Plans
 3 Months Ended
Mar. 31, 2026
Retirement Benefits [Abstract]  
Employee Benefit Plans

NOTE L - Employee Benefit Plans

The Company has several defined benefit pension plans, which cover a majority of its employees. The following information details the components of net pension income for the Company’s defined benefit plans:

Three Months Ended March 31,

 

2026

 

 

2025

 

Service cost

 

$

22.4

 

 

$

24.2

 

Interest on projected benefit obligation

 

 

35.6

 

 

 

35.8

 

Expected return on assets

 

 

(65.4

)

 

 

(62.3

)

Amortization of prior service costs

 

 

.4

 

 

 

.3

 

Recognized actuarial loss

 

 

1.1

 

 

 

.7

 

Net pension income

 

$

(5.9

)

 

$

(1.3

)

The components of net pension expense other than service cost are included in Interest and other (income) expenses, net on the Consolidated Statements of Comprehensive Income.

The Company contributed $4.0 and $6.5 for the three months ended March 31, 2026 and 2025, respectively.
v3.26.1
Commitments and Contingencies
 3 Months Ended
Mar. 31, 2026
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

NOTE M – Commitments and Contingencies

On July 19, 2016, the European Commission (EC) concluded its investigation of all major European truck manufacturers and reached a settlement with DAF Trucks N.V., DAF Trucks Deutschland GmbH and PACCAR Inc (collectively “the Company”). Following the settlement, certain EC-related claims and lawsuits have been filed in various jurisdictions primarily in Europe against all major European truck manufacturers including the Company and certain subsidiaries. These claims and lawsuits include individual and collective proceedings seeking monetary damages, including class actions in the United Kingdom (U.K.), the Netherlands and Israel. In certain jurisdictions, additional claimants may bring EC-related claims and lawsuits.

Several European courts have issued judgments; some have been favorable while others have been unfavorable and have been appealed. The Company believes it has meritorious defenses to all pending legal claims. In the first quarter 2023, the Company recorded a pre-tax charge of $600.0 ($446.4 after-tax) for the estimable total cost. The Company has settled with a significant majority of claimants and continues to pursue appropriate resolutions. Due to ongoing settlement costs, the Company updated its estimate and recorded an additional pre-tax charge of $350.0 ($264.5 after-tax) for the total estimable remaining costs in Interest and other expenses (income), net in the first quarter of 2025.

PACCAR is also a defendant in various other legal proceedings and, in addition, there are various other contingent liabilities arising in the normal course of business. After consultation with legal counsel, management does not anticipate that disposition of these various other proceedings and contingent liabilities will have a material effect on the consolidated financial statements.
v3.26.1
Accounting Policies (Policies)
 3 Months Ended
Mar. 31, 2026
Accounting Policies [Abstract]  
Equity Method Investment

Equity Method Investment: In 2024, PACCAR and three partners completed the formation of a U.S.-based battery manufacturing joint venture, Amplify Cell Technologies, with PACCAR owning a 30 percent interest. The joint venture meets the definition of a variable interest entity since the equity-at-risk is not currently sufficient to support the future operations of the joint venture. All significant decisions require majority or super-majority approval of the board. As a result, PACCAR is not the primary beneficiary and the Company uses the equity method to account for the investment. Under the equity method, the original investments in the joint venture are recorded at cost and subsequently adjusted by the Company's share of equity in income or losses. The investment is included in Truck, Parts and Other "Other noncurrent assets, net" on the Company’s Consolidated Balance Sheets. PACCAR's share of the loss is included in Truck, Parts and Other "Interest and other (income) expenses, net" on the Company's Consolidated Statements of Income.

During the first quarter, expectations on electric vehicle demand in the commercial vehicle market continued to change. As a result, the Company and its joint venture partners agreed to finish building out the facility, and adjust the timing for installing the manufacturing capacity. As a result of these changes, the production start date will be extended. The Company and its joint venture partners concluded there is no impairment as of March 31, 2026. As of March 31, 2026, the Company has contributed $412.5 to the joint venture. PACCAR did not make contributions to the joint venture in the three months ended March 31, 2026 compared to $44.7 in the same period in 2025 and the maximum required contribution is $830.0. The Company's equity method investment, net of operating losses, was $373.4 and $379.4 at March 31, 2026 and December 31, 2025, respectively.
Earnings Per Share

Earnings per Share: Basic earnings per common share are computed by dividing earnings by the weighted average number of common shares outstanding, plus the effect of any participating securities. Diluted earnings per common share are computed assuming that all potentially dilutive securities are converted into common shares under the treasury stock method.

The dilutive and antidilutive options are shown separately in the table below:

Three Months Ended March 31,

 

2026

 

 

2025

 

Additional shares

 

 

760,000

 

 

 

1,030,200

 

Antidilutive options

 

 

1,178,400

 

 

 

1,305,900

 
New Accounting Pronouncements

New Accounting Pronouncements: In November 2024, the Financial Accounting Standards Board (FASB) issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The amendments in this ASU expand the disclosures in the notes to the financial statements about specific cost and expense categories presented on the face of the income statement. This ASU is effective for annual periods beginning after December 15, 2026, and interim periods within annual periods beginning after December 15, 2027. Early adoption is permitted. The amendments in this ASU should be applied either (1) prospectively to financial statements issued for reporting periods after the effective date or (2) retrospectively to any or all prior periods presented. The Company is currently evaluating the impact of this update on the related notes to the financial statements.

The Company adopted the following standards on January 1, 2026, which had no impact on the Company's consolidated financial statements.

STANDARD

 

DESCRIPTION

 

2025-05

 

Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets

 

2025-09

 

Derivatives and Hedging (Topic 815): Hedge Accounting Improvements

 

 

 

The FASB also issued the following standards, which are not expected to have a material impact on the Company's consolidated financial statements.

STANDARD

 

DESCRIPTION

EFFECTIVE DATE

2025-06*

 

Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software

January 1, 2028

2025-10*

 

Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities

January 1, 2029

* The Company will adopt on the effective date.
Sales and Revenues

Truck, Parts and Other

The Company enters into sales contracts with customers associated with purchases of the Company’s products and services including trucks, parts, product support, and other related services. Generally, the Company recognizes revenue for the amount of consideration it will receive for delivering a product or service to a customer. Revenue is recognized when the customer obtains control of the product or receives benefits of the service. The Company excludes sales taxes, value added taxes and other related taxes assessed by government agencies from revenue. There are no significant financing components included in product or services revenue since generally customers pay shortly after the products or services are transferred. In the Truck and Parts segments, when the Company grants extended payment terms on selected receivables and charges interest, interest income is recognized when earned.

The following table disaggregates Truck, Parts and Other revenues by major sources:

Three Months Ended March 31,

 

2026

 

 

2025

 

Truck

 

 

 

 

 

 

Truck sales

 

$

4,239.1

 

 

$

4,971.7

 

Revenues from extended warranties, operating leases and other

 

 

287.4

 

 

 

254.1

 

 

 

4,526.5

 

 

 

5,225.8

 

Parts

 

 

 

 

 

 

Parts sales

 

 

1,656.1

 

 

 

1,637.6

 

Revenues from dealer services and other

 

 

54.0

 

 

 

52.3

 

 

 

1,710.1

 

 

 

1,689.9

 

Intersegment eliminations and other

 

 

(2.3

)

 

 

(2.0

)

Truck, Parts and Other sales and revenues

 

$

6,234.3

 

 

$

6,913.7

 

The Company recognizes truck and parts sales as revenues when control of the products is transferred to customers which generally occurs upon shipment, except for certain truck sales which are subject to a residual value guarantee (RVG) by the Company. The standard payment term for trucks and aftermarket parts is typically within 30 days, but the Company may grant extended payment terms on selected receivables. The Company recognizes revenue for the invoice amount adjusted for estimated sales incentives and returns. Sales incentives and returns are estimated based on historical experience and are adjusted to current period revenue when the most likely amount of consideration the Company expects to receive changes or becomes fixed. Truck and parts sales include a standard product warranty which is included in cost of sales. The Company has elected to treat delivery services as a fulfillment activity with revenues recognized when the customer obtains control of the product. Delivery revenue is included in revenues and the related costs are included in cost of sales. For the Parts segment, revenue for remanufactured components (cores) is recognized using the same criteria as other parts sales. When a remanufactured part is sold, a deposit is collected that is repaid if the customer returns a core that meets certain specifications within a defined time period. The deposit received from the customer is recognized as a liability in "Accounts payable, accrued expenses and other" on the Company's Consolidated Balance Sheets. When a customer returns a core, the deposit is repaid and the liability is reversed. The Company is not disclosing truck order backlog, as a significant majority of the backlog has a duration of less than one year.

Truck sales with RVGs that allow customers the option to return their truck are accounted for as a sale when the customer does not have an economic incentive to return the truck to the Company, or as an operating lease when the customer does have an economic incentive to return the truck. The estimate of customers’ economic incentive to return the trucks is based on an analysis of historical guaranteed buyback value and estimated market value. When truck sales with RVGs are accounted for as a sale, revenue is recognized when the truck is transferred to the customer less an amount for expected returns. Expected returns are estimated by using a historical return rate.

Aftermarket parts sales allow for returns which are estimated at the time of sale based on historical data. Parts dealer services and other revenues are recognized as services are performed.

The following table presents the balance sheet classification of the estimated value of the returned goods assets and the related return liabilities:

 

 

March 31, 2026

 

 

December 31, 2025

 

 

 

ASSETS

 

 

LIABILITIES

 

 

ASSETS

 

 

LIABILITIES

 

Trucks

 

 

 

 

 

 

 

 

 

 

 

 

Other current assets

 

$

80.1

 

 

 

 

 

$

83.1

 

 

 

 

Accounts payable, accrued expenses and other

 

 

 

$

83.5

 

 

 

 

 

$

87.2

 

Other noncurrent assets, net

 

 

197.3

 

 

 

 

 

 

195.2

 

 

 

 

Other liabilities

 

 

 

 

204.6

 

 

 

 

 

203.0

 

 

$

277.4

 

 

$

288.1

 

 

$

278.3

 

 

$

290.2

 

Parts

 

 

 

 

 

 

 

 

 

 

Other current assets

 

$

92.2

 

 

 

 

 

$

97.0

 

 

 

 

Accounts payable, accrued expenses and other

 

 

 

$

227.0

 

 

 

 

$

239.6

 

 

 

$

92.2

 

 

$

227.0

 

 

$

97.0

 

 

$

239.6

 

The Company’s total commitment to acquire trucks at a guaranteed value for contracts accounted for as a sale was $630.6 at March 31, 2026.

Revenues from extended warranties, operating leases and other include optional extended warranty and repair and maintenance (R&M) service contracts which can be purchased for periods generally ranging up to five years. The Company defers revenue based on stand-alone observable selling prices when it receives payments in advance and generally recognizes the revenue on a straight-line basis over the warranty or R&M contract periods. See Note F, Product Support Liabilities, in the Notes to the Consolidated Financial Statements for further information. Also included are truck sales with an RVG accounted for as an operating lease. A liability is created for the residual value obligation with the remainder of the proceeds recorded as deferred revenue. The deferred revenue is recognized on a straight-line basis over the guarantee period, which typically ranges from three to five years. Deferred revenue related to trucks sold with an RVG was $22.5 at March 31, 2026. The Company expects to recognize approximately $8.0 of the remaining deferred revenue in 2026, $7.4 in 2027, $3.6 in 2028, $2.7 in 2029, $.7 in 2030 and $.1 thereafter. For the three months ended March 31, 2026, total operating lease revenue from truck sales with RVGs was $5.0 compared to $3.1 for the three months ended March 31, 2025. The Company’s total commitment to acquire trucks at a guaranteed value for contracts accounted for as a lease was $44.6 at March 31, 2026.

Intersegment eliminations and other consists of intersegment eliminations and other revenues not attributable to a reportable segment.

Inventories Inventories are stated at the lower of cost or net realizable value. Cost of inventories is determined principally by the first-in, first-out (FIFO) method.
Allowance for Credit Losses

Allowance for Credit Losses

The Company continuously monitors the payment performance of its finance receivables. For large retail finance customers and dealers with wholesale financing, the Company regularly reviews their financial statements and makes site visits and phone contact as appropriate. If the Company becomes aware of circumstances that could cause those customers or dealers to face financial difficulty, whether or not they are past due, the customers are placed on a watch list.

The Company modifies loans and finance leases in the normal course of its Financial Services operations. The Company may modify loans and finance leases for commercial reasons or for credit reasons. Modifications for commercial reasons are changes to contract terms for customers that are not considered to be in financial difficulty. Insignificant delays are

modifications extending terms up to three months for customers experiencing some short-term financial stress, but not considered to be in financial difficulty. Modifications for credit reasons are changes to contract terms for customers considered to be in financial difficulty. The Company’s modifications typically result in granting more time to pay the contractual amounts owed and charging a fee and interest for the term of the modification.

 

When considering whether to modify customer accounts for credit reasons, the Company evaluates the creditworthiness of the customers and modifies those accounts that the Company considers likely to perform under the modified terms. The Company does not typically grant credit modifications for customers that do not meet minimum underwriting standards since the Company normally repossesses the financed equipment in these circumstances.

On average, commercial and other modifications extended contractual terms by approximately six months in 2026 and four months in 2025, and did not have a significant effect on the weighted-average term or interest rate of the total portfolio at March 31, 2026 and December 31, 2025.

The Company has developed a systematic methodology for determining the allowance for credit losses for its two portfolio segments, retail and wholesale. The retail segment consists of retail loans and sales-type finance leases, net of unearned interest. The wholesale segment consists of truck inventory financing loans to dealers that are collateralized by trucks and other collateral. The wholesale segment generally has less risk than the retail segment. Wholesale receivables generally are shorter in duration than retail receivables, and the Company requires periodic reporting of the wholesale dealer’s financial condition, conducts periodic audits of the trucks being financed and in many cases, obtains guarantees or other security such as dealership assets. In determining the allowance for credit losses, retail loans and finance leases are evaluated together since they relate to a similar customer base, their contractual terms require regular payment of principal and interest, generally over three to five years, and they are secured by the same type of collateral. The allowance for credit losses consists of both specific and general reserves.

The Company individually evaluates certain finance receivables for expected credit losses. Finance receivables that are evaluated individually consist of all wholesale accounts and certain large retail accounts with past due balances or otherwise determined to be at a higher risk of loss. In general, finance receivables that are 90 days past due are placed on non-accrual status. Finance receivables on non-accrual status which have been performing for 90 consecutive days are placed on accrual status if it is deemed probable that the Company will collect all principal and interest payments.

Individually evaluated receivables on non-accrual status are generally considered collateral dependent. Large balance retail and all wholesale receivables on non-accrual status are individually evaluated for loss based on the value of the underlying collateral or a discounted cash flow analysis. Small balance receivables on non-accrual status with similar risk characteristics are evaluated as a separate pool to determine the appropriate reserve for losses using the historical loss information discussed below.

The Company evaluates finance receivables that are not individually evaluated and share similar risk characteristics on a collective basis and determines the general allowance for credit losses for both retail and wholesale receivables based on historical loss information, using past due account data, current market conditions, and expected changes in future macroeconomic conditions that affect collectability. Historical credit loss data provides relevant information of expected credit losses. The historical information used includes assumptions regarding the likelihood of collecting current and past due accounts, repossession rates, and the recovery rate on the underlying collateral based on used truck values and other pledged collateral or recourse.

The Company has developed a range of loss estimates for each of its country portfolios based on historical experience, taking into account loss frequency and severity in both strong and weak truck market conditions. A projection is made of the range of estimated credit losses inherent in the portfolio from which an amount is determined based on current market conditions and other factors impacting the creditworthiness of the Company’s borrowers and their ability to repay. Adjustments to historical loss information are made for changes in forecasted economic conditions that are specific to the industry and markets in which the Company conducts business. The Company utilizes economic forecasts from third-party sources and determines expected losses based on historical experience under similar market conditions. After determining the appropriate level of the allowance for credit losses, a provision for losses on finance receivables is charged to income as necessary to reflect management’s estimate of expected credit losses, net of recoveries, inherent in the portfolio.

In determining the fair value of the collateral, the Company uses a pricing matrix and categorizes the fair value as Level 2 in the hierarchy of fair value measurement. The pricing matrix is reviewed quarterly and updated as appropriate. The pricing matrix considers the make, model and year of the equipment as well as recent sales prices of comparable equipment sold individually, which is the lowest unit of account, through wholesale channels to the Company’s dealers (principal market). The fair value of the collateral also considers the overall condition of the equipment.

 

Accounts are charged off against the allowance for credit losses when, in the judgment of management, they are considered uncollectible, which generally occurs upon repossession of the collateral. Typically the timing between the repossession and charge-off is not significant. In cases where repossession is delayed (e.g., for legal proceedings), the Company records a partial charge-off. The charge-off is determined by comparing the fair value of the collateral, less cost to sell, to the amortized cost basis.
Product Support Liabilities

Product support liabilities include estimated future payments related to product warranties and deferred revenues on optional extended warranties and R&M contracts. The Company generally offers one year warranties covering most of its vehicles and related aftermarket parts. For vehicles equipped with engines manufactured by PACCAR, the Company generally offers two year warranties on the engine. Specific terms and conditions vary depending on the product and the country of sale. Optional extended warranty and R&M contracts can be purchased for periods which generally range up to five years. Warranty expenses and reserves are estimated and recorded at the time products or contracts are sold based on historical and current data and reasonable expectations for the future regarding the frequency and cost of warranty claims, net of recoveries. The Company periodically assesses the adequacy of its recorded liabilities and adjusts them as appropriate to reflect actual experience. Revenue from extended warranty and R&M contracts is deferred and recognized to income generally on a straight-line basis over the contract period. Warranty and R&M costs on these contracts are recognized as incurred.
Derivative Financial Instruments

As part of its risk management strategy, the Company enters into derivative contracts to hedge against the risks of interest rates, foreign currency rates and commodity prices. Certain derivative instruments designated as fair value hedges, cash flow hedges or net investment hedges are subject to hedge accounting. Derivative instruments that are not subject to hedge accounting are held as derivatives not designated as hedging instruments. The Company’s policies prohibit the use of derivatives for speculation or trading. At the inception of each hedge relationship, the Company documents its risk management objectives, procedures and accounting treatment. All of the Company’s interest-rate, commodity as well as certain foreign-exchange contracts are transacted under International Swaps and Derivatives Association (ISDA) master agreements. Each agreement permits the net settlement of amounts owed in the event of default and certain other termination events. For derivative financial instruments, the Company has elected not to offset derivative positions in the balance sheet with the same counterparty under the same agreements and is not required to post or receive collateral.

Exposure limits and minimum credit ratings are used to minimize the risks of counterparty default. The Company’s maximum exposure to potential default of its derivative counterparties is limited to the asset position of its derivative portfolio. The asset position of the Company’s derivative portfolio was $61.0 at March 31, 2026.

The Company assesses hedges at inception and on an ongoing basis to determine if the designated derivatives are highly effective in offsetting changes in fair values or cash flow of the hedged items. Hedge accounting is discontinued prospectively when the Company determines a derivative financial instrument has ceased to be a highly effective hedge. Cash flows from derivative instruments are included in Operating activities in the Condensed Consolidated Statements of Cash Flows.
Fair Value Measurement Policy

Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Inputs to valuation techniques used to measure fair value are either observable or unobservable. These inputs have been categorized into the fair value hierarchy described below.

Level 1 – Valuations are based on quoted prices that the Company has the ability to obtain in actively traded markets for identical assets or liabilities. Since valuations are based on quoted prices that are readily and regularly available in an active market or exchange traded market, valuation of these instruments does not require a significant degree of judgment.

Level 2 – Valuations are based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market.

Level 3 – Valuations are based on model-based techniques for which some or all of the assumptions are obtained from indirect market information that is significant to the overall fair value measurement and which require a significant degree of management judgment.

The Company uses the following methods and assumptions to measure fair value for assets and liabilities subject to recurring fair value measurements.

Marketable Debt Securities: The Company’s marketable debt securities consist of municipal bonds, government obligations, investment-grade corporate obligations, commercial paper, asset-backed securities and term deposits. The fair value of U.S. government obligations is determined using the market approach and is based on quoted prices in active markets and are categorized as Level 1.

The fair value of non-U.S. government bonds, municipal bonds, corporate bonds, asset-backed securities, commercial paper and term deposits is determined using the market approach and is primarily based on matrix pricing as a practical expedient which does not rely exclusively on quoted prices for a specific security. Significant inputs used to determine fair value include interest rates, yield curves, credit rating of the security and other observable market information and are categorized as Level 2.

Marketable Equity Securities: The Company’s equity securities are traded on active exchanges and are classified as Level 1.

Derivative Financial Instruments: The Company’s derivative contracts consist of interest-rate swaps, cross currency swaps, foreign currency exchange and commodity contracts. These derivative contracts are traded over the counter, and their fair value is determined using industry standard valuation models, which are based on the income approach (i.e., discounted cash flows). The significant observable inputs into the valuation models include interest rates, yield curves, currency exchange rates, credit default swap spreads, forward rates and commodity prices and are categorized as Level 2.
v3.26.1
Basis of Presentation (Tables)
 3 Months Ended
Mar. 31, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Dilutive and Antidilutive Options

The dilutive and antidilutive options are shown separately in the table below:

Three Months Ended March 31,

 

2026

 

 

2025

 

Additional shares

 

 

760,000

 

 

 

1,030,200

 

Antidilutive options

 

 

1,178,400

 

 

 

1,305,900

 
v3.26.1
Sales and Revenues (Tables)
 3 Months Ended
Mar. 31, 2026
Schedule of Revenues by Major Sources

The following table disaggregates Truck, Parts and Other revenues by major sources:

Three Months Ended March 31,

 

2026

 

 

2025

 

Truck

 

 

 

 

 

 

Truck sales

 

$

4,239.1

 

 

$

4,971.7

 

Revenues from extended warranties, operating leases and other

 

 

287.4

 

 

 

254.1

 

 

 

4,526.5

 

 

 

5,225.8

 

Parts

 

 

 

 

 

 

Parts sales

 

 

1,656.1

 

 

 

1,637.6

 

Revenues from dealer services and other

 

 

54.0

 

 

 

52.3

 

 

 

1,710.1

 

 

 

1,689.9

 

Intersegment eliminations and other

 

 

(2.3

)

 

 

(2.0

)

Truck, Parts and Other sales and revenues

 

$

6,234.3

 

 

$

6,913.7

 
Estimated Value of Returned Goods Assets and Related Return Liabilities

The following table presents the balance sheet classification of the estimated value of the returned goods assets and the related return liabilities:

 

 

March 31, 2026

 

 

December 31, 2025

 

 

 

ASSETS

 

 

LIABILITIES

 

 

ASSETS

 

 

LIABILITIES

 

Trucks

 

 

 

 

 

 

 

 

 

 

 

 

Other current assets

 

$

80.1

 

 

 

 

 

$

83.1

 

 

 

 

Accounts payable, accrued expenses and other

 

 

 

$

83.5

 

 

 

 

 

$

87.2

 

Other noncurrent assets, net

 

 

197.3

 

 

 

 

 

 

195.2

 

 

 

 

Other liabilities

 

 

 

 

204.6

 

 

 

 

 

203.0

 

 

$

277.4

 

 

$

288.1

 

 

$

278.3

 

 

$

290.2

 

Parts

 

 

 

 

 

 

 

 

 

 

Other current assets

 

$

92.2

 

 

 

 

 

$

97.0

 

 

 

 

Accounts payable, accrued expenses and other

 

 

 

$

227.0

 

 

 

 

$

239.6

 

 

 

$

92.2

 

 

$

227.0

 

 

$

97.0

 

 

$

239.6

 
Financial Services  
Summary of Financial Services Lease Revenues by Lease Type

The following table summarizes Financial Services lease revenues by lease type:

Three Months Ended March 31,

 

2026

 

 

2025

 

Finance lease revenues

 

$

93.2

 

 

$

88.2

 

Operating lease revenues

 

 

154.8

 

 

 

150.8

 

Total lease revenues

 

$

248.0

 

 

$

239.0

 
v3.26.1
Investments in Marketable Securities (Tables)
 3 Months Ended
Mar. 31, 2026
Investments, Debt and Equity Securities [Abstract]  
Marketable Securities

Marketable securities at March 31, 2026 and December 31, 2025 consisted of the following:

 

 

 

 

 

UNREALIZED

 

 

UNREALIZED

 

 

FAIR

 

At March 31, 2026

 

COST

 

 

GAINS

 

 

LOSSES

 

 

VALUE

 

Marketable debt securities

 

 

 

 

 

 

 

 

 

 

 

 

U.S. tax-exempt securities

 

$

288.1

 

 

$

2.3

 

 

$

.2

 

 

$

290.2

 

U.S. taxable municipal / non-U.S. provincial bonds

 

 

424.3

 

 

 

2.5

 

 

 

.8

 

 

 

426.0

 

U.S. corporate securities

 

 

970.5

 

 

 

3.9

 

 

 

2.1

 

 

 

972.3

 

U.S. government securities

 

 

467.6

 

 

 

.5

 

 

 

1.4

 

 

 

466.7

 

Non-U.S. corporate securities

 

 

616.3

 

 

 

2.5

 

 

 

2.1

 

 

 

616.7

 

Non-U.S. government securities

 

 

219.5

 

 

 

.2

 

 

 

1.4

 

 

 

218.3

 

Other debt securities

 

 

218.8

 

 

 

.9

 

 

 

.5

 

 

 

219.2

 

Marketable equity securities

 

 

10.0

 

 

 

 

 

 

5.9

 

 

 

4.1

 

Total marketable securities

 

$

3,215.1

 

 

$

12.8

 

 

$

14.4

 

 

$

3,213.5

 

 

 

 

 

 

 

UNREALIZED

 

 

UNREALIZED

 

 

FAIR

 

At December 31, 2025

 

COST

 

 

GAINS

 

 

LOSSES

 

 

VALUE

 

Marketable debt securities

 

 

 

 

 

 

 

 

 

 

 

 

U.S. tax-exempt securities

 

$

341.0

 

 

$

3.6

 

 

$

.1

 

 

$

344.5

 

U.S. taxable municipal / non-U.S. provincial bonds

 

 

417.7

 

 

 

4.2

 

 

 

.3

 

 

 

421.6

 

U.S. corporate securities

 

 

931.7

 

 

 

8.7

 

 

 

.1

 

 

 

940.3

 

U.S. government securities

 

 

433.9

 

 

 

2.5

 

 

 

.2

 

 

 

436.2

 

Non-U.S. corporate securities

 

 

634.8

 

 

 

5.4

 

 

 

.5

 

 

 

639.7

 

Non-U.S. government securities

 

 

212.8

 

 

 

1.3

 

 

 

.3

 

 

 

213.8

 

Other debt securities

 

 

206.4

 

 

 

1.6

 

 

 

.2

 

 

 

207.8

 

Marketable equity securities

 

 

10.0

 

 

 

 

 

 

6.2

 

 

 

3.8

 

Total marketable securities

 

$

3,188.3

 

 

$

27.3

 

 

$

7.9

 

 

$

3,207.7

 

 
Marketable Debt Securities Continuous Unrealized Losses

Marketable debt securities with continuous unrealized losses and their related fair values were as follows:

 

 

March 31, 2026

 

 

December 31, 2025

 

 

 

LESS THAN

 

 

TWELVE MONTHS

 

 

LESS THAN

 

 

TWELVE MONTHS

 

 

 

TWELVE MONTHS

 

 

OR GREATER

 

 

TWELVE MONTHS

 

 

OR GREATER

 

Fair value

 

$

1,319.7

 

 

$

52.7

 

 

$

298.5

 

 

$

75.5

 

Unrealized losses

 

 

8.0

 

 

 

.5

 

 

 

1.0

 

 

 

.7

 

 
Contractual Maturities on Debt Securities

Contractual maturities on marketable debt securities at March 31, 2026 were as follows:

 

 

AMORTIZED

 

 

FAIR

 

 

 

COST

 

 

VALUE

 

Within one year

 

$

681.3

 

 

$

682.9

 

One to five years

 

 

2,512.8

 

 

 

2,515.5

 

Six to ten years

 

 

6.0

 

 

 

5.9

 

More than ten years

 

 

5.0

 

 

 

5.1

 

 

$

3,205.1

 

 

$

3,209.4

 
v3.26.1
Inventories (Tables)
 3 Months Ended
Mar. 31, 2026
Inventory Disclosure [Abstract]  
Inventories Inventories included the following:

 

 

March 31

 

 

December 31

 

 

 

2026

 

 

2025

 

Finished products

 

$

1,019.0

 

 

$

954.2

 

Work in process and raw materials

 

 

1,204.4

 

 

 

1,233.3

 

 

$

2,223.4

 

 

$

2,187.5

 
v3.26.1
Finance and Other Receivables (Tables)
 3 Months Ended
Mar. 31, 2026
Receivables [Abstract]  
Finance and Other Receivables

Finance and other receivables included the following:

 

 

March 31

 

 

December 31

 

 

 

2026

 

 

2025

 

Loans

 

$

10,357.3

 

 

$

10,407.6

 

Finance leases

 

 

5,143.2

 

 

 

5,264.6

 

Dealer wholesale financing

 

 

3,879.8

 

 

 

4,126.3

 

Operating lease receivables and other

 

 

157.8

 

 

 

148.9

 

 

 

19,538.1

 

 

 

19,947.4

 

Less allowance for losses:

 

 

 

 

 

 

Loans and leases

 

 

(190.8

)

 

 

(187.2

)

Dealer wholesale financing

 

 

(2.6

)

 

 

(2.8

)

Operating lease receivables and other

 

 

(2.9

)

 

 

(2.9

)

 

$

19,341.8

 

 

$

19,754.5

 
Allowance for Credit Losses

The allowance for credit losses is summarized as follows:

 

 

2026

 

 

 

DEALER

 

 

CUSTOMER

 

 

 

 

 

 

 

 

 

WHOLESALE

 

 

RETAIL

 

 

RETAIL

 

 

OTHER*

 

 

TOTAL

 

Balance at January 1

 

$

2.8

 

 

$

1.7

 

 

$

185.5

 

 

$

2.9

 

 

$

192.9

 

Provision for losses

 

 

(.3

)

 

 

 

 

 

44.0

 

 

 

.4

 

 

 

44.1

 

Charge-offs

 

 

 

 

 

 

 

 

(44.6

)

 

 

(.6

)

 

 

(45.2

)

Recoveries

 

 

 

 

 

 

 

 

1.9

 

 

 

.2

 

 

 

2.1

 

Currency translation and other

 

 

.1

 

 

 

 

 

 

2.3

 

 

 

 

 

 

2.4

 

Balance at March 31

 

$

2.6

 

 

$

1.7

 

 

$

189.1

 

 

$

2.9

 

 

$

196.3

 

 

 

 

2025

 

 

 

DEALER

 

 

CUSTOMER

 

 

 

 

 

 

 

 

 

WHOLESALE

 

 

RETAIL

 

 

RETAIL

 

 

OTHER*

 

 

TOTAL

 

Balance at January 1

 

$

3.0

 

 

$

1.5

 

 

$

137.7

 

 

$

3.0

 

 

$

145.2

 

Provision for losses

 

 

 

 

 

(.1

)

 

 

18.2

 

 

 

.2

 

 

 

18.3

 

Charge-offs

 

 

 

 

 

 

 

 

(23.0

)

 

 

(.3

)

 

 

(23.3

)

Recoveries

 

 

 

 

 

 

 

 

2.2

 

 

 

.1

 

 

 

2.3

 

Currency translation and other

 

 

 

 

 

 

 

 

2.2

 

 

 

(.1

)

 

 

2.1

 

Balance at March 31

 

$

3.0

 

 

$

1.4

 

 

$

137.3

 

 

$

2.9

 

 

$

144.6

 

* Operating lease and other trade receivables.
Amortized Cost Basis of Finance Receivables and Charge-offs by Credit Quality Indicator and Portfolio Class

The tables below summarize the amortized cost basis of the Company’s finance receivables within each credit quality indicator by year of origination and portfolio class and current period gross charge-offs of the Company’s finance receivables by year of origination and portfolio class.

 

REVOLVING

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At March 31, 2026

LOANS

 

 

2026

 

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

PRIOR

 

 

TOTAL

 

Amortized cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dealer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

$

3,866.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

3,866.8

 

Watch

 

5.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5.3

 

At-risk

 

7.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7.7

 

$

3,879.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

3,879.8

 

Retail:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

$

229.4

 

 

$

93.5

 

 

$

563.6

 

 

$

538.2

 

 

$

470.4

 

 

$

283.2

 

 

$

215.3

 

 

$

2,393.6

 

Watch

 

 

 

 

 

 

 

1.5

 

 

 

.8

 

 

 

1.2

 

 

 

.4

 

 

 

.1

 

 

 

4.0

 

 

$

229.4

 

 

$

93.5

 

 

$

565.1

 

 

$

539.0

 

 

$

471.6

 

 

$

283.6

 

 

$

215.4

 

 

$

2,397.6

 

Total dealer

$

4,109.2

 

 

$

93.5

 

 

$

565.1

 

 

$

539.0

 

 

$

471.6

 

 

$

283.6

 

 

$

215.4

 

 

$

6,277.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer retail:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fleet:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

 

$

785.3

 

 

$

3,960.2

 

 

$

3,026.0

 

 

$

1,771.9

 

 

$

740.3

 

 

$

445.2

 

 

$

10,728.9

 

Watch

 

 

 

 

9.7

 

 

 

105.0

 

 

 

57.6

 

 

 

55.3

 

 

 

36.1

 

 

 

15.5

 

 

 

279.2

 

At-risk

 

 

 

 

52.1

 

 

 

98.6

 

 

 

104.6

 

 

 

177.8

 

 

 

50.4

 

 

 

12.2

 

 

 

495.7

 

 

 

 

$

847.1

 

 

$

4,163.8

 

 

$

3,188.2

 

 

$

2,005.0

 

 

$

826.8

 

 

$

472.9

 

 

$

11,503.8

 

Owner/operator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

 

$

145.4

 

 

$

616.7

 

 

$

401.5

 

 

$

201.9

 

 

$

101.0

 

 

$

97.4

 

 

$

1,563.9

 

Watch

 

 

 

 

.4

 

 

 

6.5

 

 

 

5.9

 

 

 

5.6

 

 

 

2.3

 

 

 

1.5

 

 

 

22.2

 

At-risk

 

 

 

 

 

 

 

3.2

 

 

 

2.6

 

 

 

2.8

 

 

 

3.1

 

 

 

1.3

 

 

 

13.0

 

 

 

 

 

$

145.8

 

 

$

626.4

 

 

$

410.0

 

 

$

210.3

 

 

$

106.4

 

 

$

100.2

 

 

$

1,599.1

 

Total customer retail

 

 

 

$

992.9

 

 

$

4,790.2

 

 

$

3,598.2

 

 

$

2,215.3

 

 

$

933.2

 

 

$

573.1

 

 

$

13,102.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$

4,109.2

 

 

$

1,086.4

 

 

$

5,355.3

 

 

$

4,137.2

 

 

$

2,686.9

 

 

$

1,216.8

 

 

$

788.5

 

 

$

19,380.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2026

REVOLVING
LOANS

 

 

2026

 

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

PRIOR

 

 

TOTAL

 

Gross charge-offs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer retail:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fleet

 

 

 

$

.2

 

 

$

3.8

 

 

$

9.2

 

 

$

12.8

 

 

$

7.7

 

 

$

7.0

 

 

$

40.7

 

Owner/operator

 

 

 

 

.1

 

 

 

.5

 

 

 

.9

 

 

 

1.2

 

 

 

1.0

 

 

 

.2

 

 

 

3.9

 

Total

 

 

 

$

.3

 

 

$

4.3

 

 

$

10.1

 

 

$

14.0

 

 

$

8.7

 

 

$

7.2

 

 

$

44.6

 

 

 

 

REVOLVING

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At December 31, 2025

LOANS

 

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

PRIOR

 

 

TOTAL

 

Amortized cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dealer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

$

4,114.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

4,114.6

 

Watch

 

8.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8.1

 

At-risk

 

3.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.6

 

$

4,126.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

4,126.3

 

Retail:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

$

228.5

 

 

$

590.5

 

 

$

567.7

 

 

$

506.1

 

 

$

306.7

 

 

$

134.7

 

 

$

119.6

 

 

$

2,453.8

 

Watch

 

 

 

 

1.5

 

 

 

.8

 

 

 

1.3

 

 

 

.4

 

 

 

.3

 

 

 

 

 

 

4.3

 

 

$

228.5

 

 

$

592.0

 

 

$

568.5

 

 

$

507.4

 

 

$

307.1

 

 

$

135.0

 

 

$

119.6

 

 

$

2,458.1

 

Total dealer

$

4,354.8

 

 

$

592.0

 

 

$

568.5

 

 

$

507.4

 

 

$

307.1

 

 

$

135.0

 

 

$

119.6

 

 

$

6,584.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer retail:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fleet:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

 

$

4,465.0

 

 

$

3,399.5

 

 

$

2,060.2

 

 

$

919.3

 

 

$

254.4

 

 

$

68.6

 

 

$

11,167.0

 

Watch

 

 

 

 

63.7

 

 

 

35.0

 

 

 

63.4

 

 

 

44.8

 

 

 

16.2

 

 

 

.6

 

 

 

223.7

 

At-risk

 

 

 

 

70.7

 

 

 

80.0

 

 

 

147.9

 

 

 

50.5

 

 

 

9.0

 

 

 

1.7

 

 

 

359.8

 

 

 

 

$

4,599.4

 

 

$

3,514.5

 

 

$

2,271.5

 

 

$

1,014.6

 

 

$

279.6

 

 

$

70.9

 

 

$

11,750.5

 

Owner/operator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

 

$

624.5

 

 

$

404.0

 

 

$

213.5

 

 

$

114.9

 

 

$

54.2

 

 

$

10.1

 

 

$

1,421.2

 

Watch

 

 

 

 

5.4

 

 

 

5.5

 

 

 

4.2

 

 

 

3.6

 

 

 

1.6

 

 

 

.3

 

 

 

20.6

 

At-risk

 

 

 

 

8.1

 

 

 

3.8

 

 

 

4.0

 

 

 

4.5

 

 

 

1.1

 

 

 

.3

 

 

 

21.8

 

 

 

 

 

$

638.0

 

 

$

413.3

 

 

$

221.7

 

 

$

123.0

 

 

$

56.9

 

 

$

10.7

 

 

$

1,463.6

 

Total customer retail

 

 

 

$

5,237.4

 

 

$

3,927.8

 

 

$

2,493.2

 

 

$

1,137.6

 

 

$

336.5

 

 

$

81.6

 

 

$

13,214.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$

4,354.8

 

 

$

5,829.4

 

 

$

4,496.3

 

 

$

3,000.6

 

 

$

1,444.7

 

 

$

471.5

 

 

$

201.2

 

 

$

19,798.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended December 31, 2025

REVOLVING
LOANS

 

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

PRIOR

 

 

TOTAL

 

Gross charge-offs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer retail:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fleet

 

 

 

$

1.3

 

 

$

10.6

 

 

$

37.6

 

 

$

19.7

 

 

$

9.0

 

 

$

6.8

 

 

$

85.0

 

Owner/operator

 

 

 

 

.3

 

 

 

2.1

 

 

 

2.6

 

 

 

2.9

 

 

 

.6

 

 

 

.3

 

 

 

8.8

 

Total

 

 

 

$

1.6

 

 

$

12.7

 

 

$

40.2

 

 

$

22.6

 

 

$

9.6

 

 

$

7.1

 

 

$

93.8

 

 
Financing Receivables by Aging Category

The tables below summarize the Company’s finance receivables by aging category. In determining past due status, the Company considers the entire contractual account balance past due when any installment is over 30 days past due. Substantially all customer accounts that were greater than 30 days past due prior to credit modification became current upon modification for aging purposes.

 

 

DEALER

 

 

CUSTOMER RETAIL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OWNER/

 

 

 

 

At March 31, 2026

 

WHOLESALE

 

 

RETAIL

 

 

FLEET

 

 

OPERATOR

 

 

TOTAL

 

Current and up to 30 days past due

 

$

3,872.2

 

 

$

2,397.6

 

 

$

11,156.5

 

 

$

1,568.0

 

 

$

18,994.3

 

31 – 60 days past due

 

 

3.5

 

 

 

 

 

 

117.1

 

 

 

15.4

 

 

 

136.0

 

Greater than 60 days past due

 

 

4.1

 

 

 

 

 

 

230.2

 

 

 

15.7

 

 

 

250.0

 

 

 

$

3,879.8

 

 

$

2,397.6

 

 

$

11,503.8

 

 

$

1,599.1

 

 

$

19,380.3

 

 

 

 

DEALER

 

 

CUSTOMER RETAIL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OWNER/

 

 

 

 

At December 31, 2025

 

WHOLESALE

 

 

RETAIL

 

 

FLEET

 

 

OPERATOR

 

 

TOTAL

 

Current and up to 30 days past due

 

$

4,117.7

 

 

$

2,458.1

 

 

$

11,412.2

 

 

$

1,428.7

 

 

$

19,416.7

 

31 – 60 days past due

 

 

5.0

 

 

 

 

 

 

137.9

 

 

 

16.8

 

 

 

159.7

 

Greater than 60 days past due

 

 

3.6

 

 

 

 

 

 

200.4

 

 

 

18.1

 

 

 

222.1

 

 

 

$

4,126.3

 

 

$

2,458.1

 

 

$

11,750.5

 

 

$

1,463.6

 

 

$

19,798.5

 
Summary of Amortized Cost Basis of Finance Receivables that are on Non-Accrual Status

The amortized cost basis of finance receivables that are on non-accrual status was as follows:

 

 

DEALER

 

CUSTOMER RETAIL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OWNER/

 

 

 

 

At March 31, 2026

 

WHOLESALE

 

 

RETAIL

 

FLEET

 

 

OPERATOR

 

 

TOTAL

 

Amortized cost basis with a specific reserve

 

 

 

 

 

 

$

441.7

 

 

$

11.5

 

 

$

453.2

 

Amortized cost basis with no specific reserve

 

$

7.7

 

 

 

 

 

53.8

 

 

 

1.5

 

 

 

63.0

 

Total

 

$

7.7

 

 

 

 

$

495.5

 

 

$

13.0

 

 

$

516.2

 

 

 

 

DEALER

 

CUSTOMER RETAIL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OWNER/

 

 

 

 

At December 31, 2025

 

WHOLESALE

 

 

RETAIL

 

FLEET

 

 

OPERATOR

 

 

TOTAL

 

Amortized cost basis with a specific reserve

 

 

 

 

 

 

$

334.2

 

 

$

15.5

 

 

$

349.7

 

Amortized cost basis with no specific reserve

 

$

3.6

 

 

 

 

 

18.0

 

 

 

6.2

 

 

 

27.8

 

Total

 

$

3.6

 

 

 

 

$

352.2

 

 

$

21.7

 

 

$

377.5

 
Interest Income Recognized on Cash Basis for Finance Receivables that are on Non-Accrual Status

Interest income recognized on a cash basis for finance receivables that are on non-accrual status was as follows:

Three Months Ended March 31,

 

2026

 

 

2025

 

Customer retail:

 

 

 

 

 

 

Fleet

 

$

.6

 

 

$

4.6

 

Owner/operator

 

 

.1

 

 

 

.1

 

 

 

$

.7

 

 

$

4.7

 

 
Financing receivable other than significant extensions and payment delays The ending amortized cost basis of finance receivables for other than insignificant extensions and payment delays for customers in financial difficulty was as follows for the three months ended March 31, 2026 and March 31, 2025:

At March 31,

 

2026

 

 

2025

 

Customer retail:

 

 

 

 

 

 

Fleet

 

$

155.2

 

 

$

11.6

 

Owner/operator

 

 

.6

 

 

 

.1

 

 

 

$

155.8

 

 

$

11.7

 

Annualized % of total retail portfolio

 

 

4.0

%

 

 

.3

%
Amortized Cost Basis and Performance of Finance Receivables Modified

The ending amortized cost basis and performance of finance receivables modified during the previous twelve months ended March 31, 2026 and March 31, 2025 was as follows:

At March 31,

 

2026

 

 

2025

 

Customer Retail:

 

 

 

 

 

 

Fleet:

 

 

 

 

 

 

Current and up to 30 days past due

 

$

196.6

 

 

$

160.6

 

31 – 60 days past due

 

 

.9

 

 

 

.2

 

Greater than 60 days past due

 

 

49.0

 

 

 

2.4

 

Owner/operator:

 

 

 

 

 

 

Current and up to 30 days past due

 

 

2.8

 

 

 

.5

 

31 – 60 days past due

 

 

1.4

 

 

 

 

Greater than 60 days past due

 

 

.2

 

 

 

 

 

 

$

250.9

 

 

$

163.7

 

The greater than 60 days past due at March 31, 2026 increased to $49.0 and was primarily due to one large fleet customer in the U.S. and two fleet customers in Mexico that became over 30 days past due during prior quarters. Contract modifications with customers experiencing financial difficulty during the previous twelve months that became over 30 days past due in the first quarter of 2026 and 2025 were not significant.

v3.26.1
Product Support Liabilities (Tables)
 3 Months Ended
Mar. 31, 2026
Product Warranties Disclosures [Abstract]  
Changes in Product Support Liabilities, Warranty Reserves

Changes in product support liabilities are summarized as follows:

WARRANTY RESERVES

2026

 

 

2025

 

Balance at January 1

$

596.2

 

 

$

606.1

 

Cost accruals

 

138.1

 

 

 

199.5

 

Payments

 

(174.2

)

 

 

(211.3

)

Change in estimates for pre-existing warranties

 

28.6

 

 

 

19.2

 

Currency translation and other

 

(2.8

)

 

 

8.9

 

Balance at March 31

$

585.9

 

 

$

622.4

 
Changes in Deferred Revenues on Extended Warranties and R&M Contracts

DEFERRED REVENUES ON EXTENDED WARRANTIES AND R&M CONTRACTS

 

2026

 

 

 

2025

 

Balance at January 1

$

1,411.1

 

 

$

1,302.2

 

Deferred revenues

 

177.9

 

 

 

172.7

 

Revenues recognized

 

(173.7

)

 

 

(157.9

)

Currency translation

 

(11.3

)

 

 

26.5

 

Balance at March 31

$

1,404.0

 

 

$

1,343.5

 
v3.26.1
Stockholders' Equity (Tables)
 3 Months Ended
Mar. 31, 2026
Equity [Abstract]  
Components of Comprehensive Income, Net of Related Tax

The components of comprehensive income are as follows:

Three Months Ended March 31,

 

2026

 

 

2025

 

Net income

 

$

605.3

 

 

$

505.1

 

Other comprehensive income (loss) (OCI):

 

 

 

 

 

 

Unrealized gains (losses) on derivative contracts

 

 

13.6

 

 

 

(21.9

)

Tax effect

 

 

(2.5

)

 

 

6.5

 

 

 

11.1

 

 

 

(15.4

)

Unrealized (losses) gains on marketable debt securities

 

 

(21.3

)

 

 

15.7

 

Tax effect

 

 

5.4

 

 

 

(4.4

)

 

 

(15.9

)

 

 

11.3

 

Pension plans

 

 

.3

 

 

 

.4

 

Tax effect

 

 

(.1

)

 

 

 

 

 

.2

 

 

 

.4

 

Foreign currency translation gains

 

 

12.6

 

 

 

153.9

 

Net other comprehensive income

 

 

8.0

 

 

 

150.2

 

Comprehensive income

 

$

613.3

 

 

$

655.3

 
Changes in Accumulated Other Comprehensive Income (loss) by Component

The components of AOCI and the changes in AOCI, net of tax, included in the Consolidated Balance Sheets and the Consolidated Statements of Stockholders’ Equity consisted of the following:

 

 

DERIVATIVE
CONTRACTS

 

 

MARKETABLE
DEBT
SECURITIES

 

 

PENSION
PLANS

 

 

FOREIGN
CURRENCY
TRANSLATION

 

 

TOTAL

 

Balance at January 1, 2026

 

$

3.4

 

 

$

19.2

 

 

$

280.9

 

 

$

(640.2

)

 

$

(336.7

)

Recorded into AOCI

 

 

(45.5

)

 

 

(16.5

)

 

 

(1.1

)

 

 

12.6

 

 

 

(50.5

)

Reclassified out of AOCI

 

 

56.6

 

 

 

.6

 

 

 

1.3

 

 

 

 

 

 

58.5

 

Net other comprehensive income (loss)

 

 

11.1

 

 

 

(15.9

)

 

 

.2

 

 

 

12.6

 

 

 

8.0

 

Balance at March 31, 2026

 

$

14.5

 

 

$

3.3

 

 

$

281.1

 

 

$

(627.6

)

 

$

(328.7

)

 

 

 

DERIVATIVE
CONTRACTS

 

 

MARKETABLE
DEBT
SECURITIES

 

 

PENSION
PLANS

 

 

FOREIGN
CURRENCY
TRANSLATION

 

 

TOTAL

 

Balance at January 1, 2025

 

$

32.5

 

 

$

(.7

)

 

$

69.7

 

 

$

(1,214.8

)

 

$

(1,113.3

)

Recorded into AOCI

 

 

(69.2

)

 

 

11.4

 

 

 

(.4

)

 

 

153.9

 

 

 

95.7

 

Reclassified out of AOCI

 

 

53.8

 

 

 

(.1

)

 

 

.8

 

 

 

 

 

 

54.5

 

Net other comprehensive (loss) income

 

 

(15.4

)

 

 

11.3

 

 

 

.4

 

 

 

153.9

 

 

 

150.2

 

Balance at March 31, 2025

 

$

17.1

 

 

$

10.6

 

 

$

70.1

 

 

$

(1,060.9

)

 

$

(963.1

)

 
Reclassifications Out of Accumulated Other Comprehensive Income

Reclassifications out of AOCI were as follows:

 

 

 

 

Three Months Ended

 

 

 

LINE ITEM IN THE CONSOLIDATED STATEMENTS OF

 

March 31

 

AOCI COMPONENTS

 

COMPREHENSIVE INCOME

 

 

2026

 

 

 

2025

 

Unrealized losses (gains) on derivative contracts:

 

 

 

 

 

 

Truck, Parts and Other

 

 

 

 

 

 

 

 

Foreign-exchange contracts

 

Net sales and revenues

 

$

4.4

 

 

$

(2.8

)

 

 

Cost of sales and revenues

 

 

1.7

 

 

 

(9.5

)

 

 

Interest and other (income) expenses, net

 

 

16.7

 

 

 

12.4

 

 

 

 

 

 

 

 

 

 

Commodity contracts

 

Cost of sales and revenues

 

 

.1

 

 

 

(.1

)

Financial Services

 

 

 

 

 

 

 

 

Foreign-exchange contracts

 

Interest and other borrowing expenses

 

 

7.7

 

 

 

5.8

 

Interest-rate contracts

 

Interest and other borrowing expenses

 

 

46.6

 

 

 

62.4

 

 

 

Pre-tax expense increase

 

 

77.2

 

 

 

68.2

 

 

 

Tax benefit

 

 

(20.6

)

 

 

(14.4

)

 

 

After-tax expense increase

 

 

56.6

 

 

 

53.8

 

Unrealized losses (gains) on marketable debt securities:

 

 

 

 

 

 

Marketable debt securities

 

Investment income

 

 

.8

 

 

 

(.2

)

 

 

Tax (benefit) expense

 

 

(.2

)

 

 

.1

 

 

 

After-tax income reduction (increase)

 

 

.6

 

 

 

(.1

)

Pension plans:

 

 

 

 

 

 

 

 

Truck, Parts and Other

 

 

 

 

 

 

 

 

Actuarial loss

 

Interest and other (income) expenses, net

 

 

1.1

 

 

 

.7

 

Prior service costs

 

Interest and other (income) expenses, net

 

 

.4

 

 

 

.3

 

 

 

Pre-tax expense increase

 

 

1.5

 

 

 

1.0

 

 

 

Tax benefit

 

 

(.2

)

 

 

(.2

)

 

 

After-tax expense increase

 

 

1.3

 

 

 

.8

 

Total reclassifications out of AOCI

 

 

 

$

58.5

 

 

$

54.5

 

 
v3.26.1
Segment Information (Tables)
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Reporting Information by Segment

 

Three Months Ended March 31, 2026

 

 

Truck

 

 

Parts

 

 

Other

 

 

Truck, Parts and Other

 

 

Financial Services

 

 

Total

 

Net sales and revenues

$

4,672.3

 

 

$

1,730.1

 

 

$

(2.3

)

 

$

6,400.1

 

 

$

542.2

 

 

$

6,942.3

 

Less intersegment

 

(145.8

)

 

 

(20.0

)

 

 

 

 

 

(165.8

)

 

 

 

 

 

(165.8

)

External Customers

$

4,526.5

 

 

$

1,710.1

 

 

$

(2.3

)

 

$

6,234.3

 

 

$

542.2

 

 

$

6,776.5

 

Cost of sales and revenues

 

4,208.8

 

 

 

1,203.7

 

 

 

4.0

 

 

 

5,416.5

 

 

 

 

 

 

5,416.5

 

Research and development

 

73.6

 

 

 

35.5

 

 

 

 

 

 

109.1

 

 

 

 

 

 

109.1

 

Selling, general and administrative

 

61.4

 

 

 

67.7

 

 

 

20.5

 

 

 

149.6

 

 

 

39.7

 

 

 

189.3

 

Interest and other borrowing expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

182.8

 

 

 

182.8

 

Depreciation and other expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

160.1

 

 

 

160.1

 

Provision for losses on receivables

 

 

 

 

 

 

 

 

 

 

 

 

 

44.1

 

 

 

44.1

 

Other segment expenses (income), net

 

6.5

 

 

 

.9

 

 

 

(28.7

)

 

 

(21.3

)

 

 

 

 

 

(21.3

)

$

176.2

 

 

$

402.3

 

 

$

1.9

 

 

$

580.4

 

 

$

115.5

 

 

$

695.9

 

Investment income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

80.4

 

Income before income taxes

$

176.2

 

 

$

402.3

 

 

$

1.9

 

 

$

580.4

 

 

$

115.5

 

 

$

776.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

$

92.4

 

 

$

4.5

 

 

$

6.1

 

 

$

103.0

 

 

$

97.1

 

 

$

200.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenditures for long-lived assets

$

125.2

 

 

$

5.1

 

 

$

12.2

 

 

$

142.5

 

 

$

163.7

 

 

$

306.2

 

 

 

 

Three Months Ended March 31, 2025

 

 

Truck

 

 

Parts

 

 

Other

 

 

Truck, Parts and Other

 

 

Financial Services

 

 

Total

 

Net sales and revenues

$

5,390.8

 

 

$

1,708.7

 

 

$

(2.0

)

 

$

7,097.5

 

 

$

528.0

 

 

$

7,625.5

 

Less intersegment

 

(165.0

)

 

 

(18.8

)

 

 

 

 

 

(183.8

)

 

 

 

 

 

(183.8

)

External Customers

$

5,225.8

 

 

$

1,689.9

 

 

$

(2.0

)

 

$

6,913.7

 

 

$

528.0

 

 

$

7,441.7

 

Cost of sales and revenues

 

4,716.5

 

 

 

1,171.5

 

 

 

3.0

 

 

 

5,891.0

 

 

 

 

 

 

5,891.0

 

Research and development

 

85.4

 

 

 

30.0

 

 

 

 

 

 

115.4

 

 

 

 

 

 

115.4

 

Selling, general and administrative

 

57.3

 

 

 

60.9

 

 

 

25.1

 

 

 

143.3

 

 

 

38.3

 

 

 

181.6

 

Interest and other borrowing expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

190.6

 

 

 

190.6

 

Depreciation and other expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

159.7

 

 

 

159.7

 

Provision for losses on receivables

 

 

 

 

 

 

 

 

 

 

 

 

 

18.3

 

 

 

18.3

 

Other segment expenses, net*

 

1.7

 

 

 

1.0

 

 

 

323.1

 

 

 

325.8

 

 

 

 

 

 

325.8

 

$

364.9

 

 

$

426.5

 

 

$

(353.2

)

 

$

438.2

 

 

$

121.1

 

 

$

559.3

 

Investment income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

83.8

 

Income (loss) before income taxes

$

364.9

 

 

$

426.5

 

 

$

(353.2

)

 

$

438.2

 

 

$

121.1

 

 

$

643.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

$

90.9

 

 

$

4.3

 

 

$

6.1

 

 

$

101.3

 

 

$

103.8

 

 

$

205.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenditures for long-lived assets

$

162.1

 

 

$

3.3

 

 

$

14.7

 

 

$

180.1

 

 

$

152.5

 

 

$

332.6

 

* In the first quarter of 2025, Other includes a $350.0 charge related to civil litigation in Europe (EC-related claims) which is discussed in Note M.

 

March 31

 

 

December 31

 

Business Segment Data

2026

 

 

2025

 

Segment Assets:

 

 

 

 

 

Truck

$

8,189.1

 

 

$

7,966.1

 

Parts

 

2,350.9

 

 

 

2,278.5

 

Other

 

2,069.9

 

 

 

2,034.5

 

Cash and marketable securities

 

8,595.4

 

 

 

9,253.7

 

 

 

21,205.3

 

 

 

21,532.8

 

Financial services

 

22,348.2

 

 

 

22,803.4

 

 

$

43,553.5

 

 

$

44,336.2

 
v3.26.1
Derivative Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Balance Sheet Classifications, Fair Value, Gross and Net Amounts of Derivative Financial Instruments

The following table presents the balance sheet classification, fair value, gross and net amounts of derivative financial instruments:

 

March 31, 2026

 

 

December 31, 2025

 

 

 

ASSETS

 

 

LIABILITIES

 

 

ASSETS

 

 

LIABILITIES

 

Derivatives designated under hedge accounting:

 

 

 

 

 

 

 

 

 

 

 

 

Interest-rate contracts:

 

 

 

 

 

 

 

 

 

 

 

 

Financial Services:

 

 

 

 

 

 

 

 

 

 

 

 

Other assets

 

$

40.5

 

 

 

 

 

$

50.0

 

 

 

 

Deferred taxes and other liabilities

 

 

 

 

$

101.7

 

 

 

 

 

$

76.8

 

Foreign-exchange contracts:

 

 

 

 

 

 

 

 

 

 

 

 

Truck, Parts and Other:

 

 

 

 

 

 

 

 

 

 

 

 

Other current assets

 

 

17.3

 

 

 

 

 

 

11.9

 

 

 

 

Accounts payable, accrued expenses and other

 

 

 

 

 

27.5

 

 

 

 

 

 

84.3

 

Financial Services:

 

 

 

 

 

 

 

 

 

 

 

 

Deferred taxes and other liabilities

 

 

 

 

 

12.1

 

 

 

 

 

 

4.2

 

Commodity contracts:

 

 

 

 

 

 

 

 

 

 

 

 

Truck, Parts and Other:

 

 

 

 

 

 

 

 

 

 

 

 

Other current assets

 

 

1.1

 

 

 

 

 

 

.3

 

 

 

 

Accounts payable, accrued expenses and other

 

 

 

 

 

.1

 

 

 

 

 

 

 

 

$

58.9

 

 

$

141.4

 

 

$

62.2

 

 

$

165.3

 

Derivatives not designated as hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

Foreign-exchange contracts:

 

 

 

 

 

 

 

 

 

 

 

 

Truck, Parts and Other:

 

 

 

 

 

 

 

 

 

 

 

 

Other current assets

 

$

1.7

 

 

 

 

 

$

.5

 

 

 

 

Accounts payable, accrued expenses and other

 

 

 

 

$

1.3

 

 

 

 

 

$

.9

 

Financial Services:

 

 

 

 

 

 

 

 

 

 

 

 

Other assets

 

 

.4

 

 

 

 

 

 

.3

 

 

 

 

Deferred taxes and other liabilities

 

 

 

 

 

.7

 

 

 

 

 

 

.1

 

 

$

2.1

 

 

$

2.0

 

 

$

.8

 

 

$

1.0

 

Gross amounts recognized in Balance Sheets

 

$

61.0

 

 

$

143.4

 

 

$

63.0

 

 

$

166.3

 

Less amounts not offset in financial instruments, subject to
enforceable master netting arrangements:

 

 

 

 

 

 

 

 

 

 

 

 

Truck, Parts and Other:

 

 

 

 

 

 

 

 

 

 

 

 

Foreign-exchange contracts

 

$

(.8

)

 

$

(.8

)

 

$

(.4

)

 

$

(.4

)

Commodity contracts

 

 

(.1

)

 

 

(.1

)

 

 

 

 

 

 

Financial Services:

 

 

 

 

 

 

 

 

 

 

 

 

Interest-rate contracts

 

 

(15.2

)

 

 

(15.2

)

 

 

(15.6

)

 

 

(15.6

)

Net amount

 

$

44.9

 

 

$

127.3

 

 

$

47.0

 

 

$

150.3

 
Amount of Loss (Gain) from Derivative Financial Instruments Recorded in Consolidated Statements of Comprehensive Income

The following table presents the amount of loss (gain) from derivative financial instruments recorded in the Consolidated Statements of Comprehensive Income:

Three Months Ended March 31,

2026

 

 

2025

 

 

INTEREST-

 

 

FOREIGN-

 

 

INTEREST-

 

 

FOREIGN-

 

 

RATE

 

 

EXCHANGE

 

 

RATE

 

 

EXCHANGE

 

Truck, Parts and Other:

 

 

 

 

 

 

 

 

 

 

 

Net sales and revenues

 

 

 

 

 

 

 

 

 

 

 

Cash flow hedges

 

 

 

$

4.4

 

 

 

 

 

$

(2.8

)

Cost of sales and revenues

 

 

 

 

 

 

 

 

 

 

 

Cash flow hedges

 

 

 

 

1.7

 

 

 

 

 

 

(9.5

)

Derivatives not designated as hedging instruments

 

 

 

 

.1

 

 

 

 

 

 

(.7

)

Interest and other (income) expenses, net

 

 

 

 

 

 

 

 

 

 

 

Cash flow hedges

 

 

 

 

16.7

 

 

 

 

 

 

12.4

 

Net investment hedges

 

 

 

 

(3.7

)

 

 

 

 

 

(4.1

)

Derivatives not designated as hedging instruments

 

 

 

 

(.9

)

 

 

 

 

 

1.3

 

 

 

 

 

$

18.3

 

 

 

 

 

$

(3.4

)

Financial Services:

 

 

 

 

 

 

 

 

 

 

 

Interest and other borrowing expenses

 

 

 

 

 

 

 

 

 

 

 

Cash flow hedges

$

46.6

 

 

$

7.7

 

 

$

62.4

 

 

$

5.8

 

Fair value hedges

 

.3

 

 

 

 

 

 

1.0

 

 

 

 

Derivatives not designated as hedging instruments

 

 

 

 

(1.4

)

 

 

 

 

 

.1

 

 

$

46.9

 

 

$

6.3

 

 

$

63.4

 

 

$

5.9

 

Total

$

46.9

 

 

$

24.6

 

 

$

63.4

 

 

$

2.5

 

 
Amounts Related to Cumulative Basis Adjustments for Fair Value Hedges The following table presents the amounts recorded on the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges:

 

 

March 31

 

 

December 31

 

 

 

2026

 

 

2025

 

Financial Services

 

 

 

 

 

 

Term notes:

 

 

 

 

 

 

Carrying amount of the hedged liabilities

 

$

759.2

 

 

$

753.7

 

Cumulative basis adjustment increase included in the carrying amount

 

 

.8

 

 

 

3.9

 
Pre-Tax Effects of (Loss) Gain Derivative Instruments Recognized in OCI

The following table presents the pre-tax effect of (loss) gain on cash flow hedges recognized in other comprehensive income (loss) (OCI):

Three Months Ended March 31,

 

2026

 

 

2025

 

 

 

INTEREST-

 

 

FOREIGN-

 

 

 

 

 

INTEREST-

 

 

FOREIGN-

 

 

 

 

 

 

RATE

 

 

EXCHANGE

 

 

COMMODITY

 

 

RATE

 

 

EXCHANGE

 

 

COMMODITY

 

(Loss) gain recognized in OCI:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Truck, Parts and Other

 

 

 

 

$

(18.2

)

 

$

1.3

 

 

 

 

 

$

(11.3

)

 

$

(.2

)

Financial Services

 

$

(38.9

)

 

 

(7.8

)

 

 

 

 

$

(72.0

)

 

 

(9.1

)

 

 

 

 

 

$

(38.9

)

 

$

(26.0

)

 

$

1.3

 

 

$

(72.0

)

 

$

(20.4

)

 

$

(.2

)
v3.26.1
Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Financial Assets and Liabilities Subject to Recurring Fair Value Measurements

The Company’s assets and liabilities subject to recurring fair value measurements are either Level 1 or Level 2 as follows:

At March 31, 2026

 

LEVEL 1

 

 

LEVEL 2

 

 

TOTAL

 

Assets:

 

 

 

 

 

 

 

 

 

Marketable debt securities

 

 

 

 

 

 

 

 

 

U.S. tax-exempt securities

 

 

 

 

$

290.2

 

 

$

290.2

 

U.S. taxable municipal / non-U.S. provincial bonds

 

 

 

 

 

426.0

 

 

 

426.0

 

U.S. corporate securities

 

 

 

 

 

972.3

 

 

 

972.3

 

U.S. government securities

 

$

466.7

 

 

 

 

 

 

466.7

 

Non-U.S. corporate securities

 

 

 

 

 

616.7

 

 

 

616.7

 

Non-U.S. government securities

 

 

 

 

 

218.3

 

 

 

218.3

 

Other debt securities

 

 

 

 

 

219.2

 

 

 

219.2

 

Total marketable debt securities

 

$

466.7

 

 

$

2,742.7

 

 

$

3,209.4

 

Marketable equity securities

 

$

4.1

 

 

 

 

 

$

4.1

 

Total marketable securities

 

$

470.8

 

 

$

2,742.7

 

 

$

3,213.5

 

Derivatives

 

 

 

 

 

 

 

 

 

Cross currency swaps

 

 

 

 

$

22.0

 

 

$

22.0

 

Interest-rate swaps

 

 

 

 

 

18.5

 

 

 

18.5

 

Foreign-exchange contracts

 

 

 

 

 

19.4

 

 

 

19.4

 

Commodity contracts

 

 

 

 

 

1.1

 

 

 

1.1

 

Total derivative assets

 

 

 

 

$

61.0

 

 

$

61.0

 

Liabilities:

 

 

 

 

 

 

 

 

 

Derivatives

 

 

 

 

 

 

 

 

 

Cross currency swaps

 

 

 

 

$

96.5

 

 

$

96.5

 

Interest-rate swaps

 

 

 

 

 

5.2

 

 

 

5.2

 

Foreign-exchange contracts

 

 

 

 

 

41.6

 

 

 

41.6

 

Commodity contracts

 

 

 

 

 

.1

 

 

 

.1

 

Total derivative liabilities

 

 

 

 

$

143.4

 

 

$

143.4

 

 

At December 31, 2025

 

LEVEL 1

 

 

LEVEL 2

 

 

TOTAL

 

Assets:

 

 

 

 

 

 

 

 

 

Marketable debt securities

 

 

 

 

 

 

 

 

 

U.S. tax-exempt securities

 

 

 

 

$

344.5

 

 

$

344.5

 

U.S. taxable municipal / non-U.S. provincial bonds

 

 

 

 

 

421.6

 

 

 

421.6

 

U.S. corporate securities

 

 

 

 

 

940.3

 

 

 

940.3

 

U.S. government securities

 

$

436.2

 

 

 

 

 

 

436.2

 

Non-U.S. corporate securities

 

 

 

 

 

639.7

 

 

 

639.7

 

Non-U.S. government securities

 

 

 

 

 

213.8

 

 

 

213.8

 

Other debt securities

 

 

 

 

 

207.8

 

 

 

207.8

 

Total marketable debt securities

 

$

436.2

 

 

$

2,767.7

 

 

$

3,203.9

 

Marketable equity securities

 

$

3.8

 

 

 

 

 

$

3.8

 

Total marketable securities

 

$

440.0

 

 

$

2,767.7

 

 

$

3,207.7

 

Derivatives

 

 

 

 

 

 

 

 

 

Cross currency swaps

 

 

 

$

30.0

 

 

$

30.0

 

Interest-rate swaps

 

 

 

 

20.0

 

 

 

20.0

 

Foreign-exchange contracts

 

 

 

 

12.7

 

 

 

12.7

 

Commodity contracts

 

 

 

 

 

.3

 

 

 

.3

 

Total derivative assets

 

 

 

 

$

63.0

 

 

$

63.0

 

Liabilities:

 

 

 

 

 

 

 

 

 

Derivatives

 

 

 

 

 

 

 

 

 

Cross currency swaps

 

 

 

$

67.1

 

 

$

67.1

 

Interest-rate swaps

 

 

 

 

9.7

 

 

 

9.7

 

Foreign-exchange contracts

 

 

 

 

89.5

 

 

 

89.5

 

Total derivative liabilities

 

 

 

 

$

166.3

 

 

$

166.3

 
Carrying Amount and Fair Value of Financial Services Fixed-Rate Loans and Fixed-Rate Debt

The Company’s estimate of fair value for fixed rate loans and debt that are not carried at fair value was as follows:

 

 

March 31, 2026

 

 

December 31, 2025

 

 

 

CARRYING

 

 

FAIR

 

 

CARRYING

 

 

FAIR

 

 

 

AMOUNT

 

 

VALUE

 

 

AMOUNT

 

 

VALUE

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Financial Services fixed rate loans

 

$

9,903.6

 

 

$

9,944.8

 

 

$

9,928.0

 

 

$

10,118.4

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Financial Services fixed rate debt

 

 

10,042.6

 

 

 

10,110.5

 

 

 

10,453.1

 

 

 

10,570.6

 
v3.26.1
Employee Benefit Plans (Tables)
 3 Months Ended
Mar. 31, 2026
Retirement Benefits [Abstract]  
Components of Net Pension (Income) Expense The following information details the components of net pension income for the Company’s defined benefit plans:

Three Months Ended March 31,

 

2026

 

 

2025

 

Service cost

 

$

22.4

 

 

$

24.2

 

Interest on projected benefit obligation

 

 

35.6

 

 

 

35.8

 

Expected return on assets

 

 

(65.4

)

 

 

(62.3

)

Amortization of prior service costs

 

 

.4

 

 

 

.3

 

Recognized actuarial loss

 

 

1.1

 

 

 

.7

 

Net pension income

 

$

(5.9

)

 

$

(1.3

)
v3.26.1
Basis of Presentation - Additional Information (Detail) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2026
Dec. 31, 2025
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]      
Change in accounting principle, accounting standards update, adopted [true false]   true  
Change in accounting principle, accounting standards update adoption date   Jan. 01, 2026  
Change in accounting principle, accounting standards update, immaterial effect [true false]   true  
Equity method investment Contribution $ 44.7 $ 412.5  
Contributions to joint venture $ 44.7    
Equity Method Investments   $ 373.4 $ 379.4
PACCAR      
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]      
Equity method investment, ownership percentage   30.00%  
Maximum      
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]      
Equity method investment Contribution   $ 830.0  
v3.26.1
Basis of Presentation - Dilutive and Antidilutive Options (Detail) - shares
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Earnings Per Share [Abstract]    
Additional shares 760,000 1,030,200
Antidilutive options 1,178,400 1,305,900
v3.26.1
Schedule of Revenues by Major Sources (Detail) - Truck, Parts and Other - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Entity Wide Information Revenue From External Customer [Line Items]    
Total sales and revenues $ 6,234.3 $ 6,913.7
Trucks    
Entity Wide Information Revenue From External Customer [Line Items]    
Total sales and revenues 4,526.5 5,225.8
Trucks | Truck Sales    
Entity Wide Information Revenue From External Customer [Line Items]    
Total sales and revenues 4,239.1 4,971.7
Trucks | Revenues from extended warranties, operating leases and other    
Entity Wide Information Revenue From External Customer [Line Items]    
Total sales and revenues 287.4 254.1
Parts Subsegment    
Entity Wide Information Revenue From External Customer [Line Items]    
Total sales and revenues 1,710.1 1,689.9
Parts Subsegment | Parts    
Entity Wide Information Revenue From External Customer [Line Items]    
Total sales and revenues 1,656.1 1,637.6
Parts Subsegment | Revenues from dealer services and other    
Entity Wide Information Revenue From External Customer [Line Items]    
Total sales and revenues 54.0 52.3
Intersegment Eliminations and Other    
Entity Wide Information Revenue From External Customer [Line Items]    
Total sales and revenues $ (2.3) $ (2.0)
v3.26.1
Estimated Value of Returned Goods Assets and Related Return Liabilities (Detail) - Truck, Parts and Other - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
Trucks    
Entity Wide Information Revenue From External Customer [Line Items]    
Other current assets $ 80.1 $ 83.1
Accounts payable, accrued expenses and other 83.5 87.2
Other noncurrent assets, net 197.3 195.2
Other liabilities 204.6 203.0
Assets 277.4 278.3
Liabilities 288.1 290.2
Parts Subsegment    
Entity Wide Information Revenue From External Customer [Line Items]    
Other current assets 92.2 97.0
Accounts payable, accrued expenses and other 227.0 239.6
Assets 92.2 97.0
Liabilities $ 227.0 $ 239.6
v3.26.1
Sales and Revenues - Additional Information (Detail) - USD ($)
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Dec. 31, 2025
Entity Wide Information Revenue From External Customer [Line Items]      
Payment to acquire commitment value $ 630,600,000    
Payment to acquire commitment related to lease value 44,600,000    
Financial Services      
Entity Wide Information Revenue From External Customer [Line Items]      
Total operating lease revenue 154,800,000 $ 150,800,000  
Financing receivable, recorded investment, 90 days past due and still accruing 0   $ 0
Trucks | Truck Sales      
Entity Wide Information Revenue From External Customer [Line Items]      
Total operating lease revenue 5,000,000 $ 3,100,000  
Deferred revenue 22,500,000    
Deferred revenue recognize, in 2026 8,000,000    
Deferred revenue recognize, in 2027 7,400,000    
Deferred revenue recognize, in 2028 3,600,000    
Deferred revenue recognize, in 2029 2,700,000    
Deferred revenue recognize, in 2030 700,000    
Deferred revenue recognize, Thereafter $ 100,000    
Minimum      
Entity Wide Information Revenue From External Customer [Line Items]      
Lease and guarantee periods (in years) 3 years    
Minimum | Financial Services      
Entity Wide Information Revenue From External Customer [Line Items]      
Finance leases, lease term 3 years    
Operating lease term 3 years    
Maximum      
Entity Wide Information Revenue From External Customer [Line Items]      
Lease and guarantee periods (in years) 5 years    
Warranty period 5 years    
Maximum | Financial Services      
Entity Wide Information Revenue From External Customer [Line Items]      
Finance leases, lease term 5 years    
Operating lease term 5 years    
v3.26.1
Summary of Financial Services Lease Revenues by Lease Type (Detail) - Financial Services - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Entity Wide Information Revenue From External Customer [Line Items]    
Finance lease revenues $ 93.2 $ 88.2
Operating lease revenues 154.8 150.8
Total lease revenues $ 248.0 $ 239.0
v3.26.1
Marketable Securities (Detail) - Truck, Parts and Other - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
Schedule Of Available For Sale Securities [Line Items]    
Marketable debt securities, Cost $ 3,205.1  
Marketable debt securities, Fair Value 3,209.4  
Marketable equity securities, Cost 10.0 $ 10.0
Marketable equity securities, Unrealized Losses 5.9 6.2
Marketable equity securities, Fair Value 4.1 3.8
Total marketable securities, Cost 3,215.1 3,188.3
Total marketable securities, Unrealized Gains 12.8 27.3
Total marketable securities, Unrealized Losses 14.4 7.9
Total marketable securities, Fair Value 3,213.5 3,207.7
U.S. tax-exempt securities    
Schedule Of Available For Sale Securities [Line Items]    
Marketable debt securities, Cost 288.1 341.0
Marketable debt securities, Unrealized Gains 2.3 3.6
Marketable debt securities, Unrealized Losses 0.2 0.1
Marketable debt securities, Fair Value 290.2 344.5
U.S. taxable municipal / non-U.S. provincial bonds    
Schedule Of Available For Sale Securities [Line Items]    
Marketable debt securities, Cost 424.3 417.7
Marketable debt securities, Unrealized Gains 2.5 4.2
Marketable debt securities, Unrealized Losses 0.8 0.3
Marketable debt securities, Fair Value 426.0 421.6
U.S. corporate securities    
Schedule Of Available For Sale Securities [Line Items]    
Marketable debt securities, Cost 970.5 931.7
Marketable debt securities, Unrealized Gains 3.9 8.7
Marketable debt securities, Unrealized Losses 2.1 0.1
Marketable debt securities, Fair Value 972.3 940.3
U.S. government securities    
Schedule Of Available For Sale Securities [Line Items]    
Marketable debt securities, Cost 467.6 433.9
Marketable debt securities, Unrealized Gains 0.5 2.5
Marketable debt securities, Unrealized Losses 1.4 0.2
Marketable debt securities, Fair Value 466.7 436.2
Non-U.S. corporate securities    
Schedule Of Available For Sale Securities [Line Items]    
Marketable debt securities, Cost 616.3 634.8
Marketable debt securities, Unrealized Gains 2.5 5.4
Marketable debt securities, Unrealized Losses 2.1 0.5
Marketable debt securities, Fair Value 616.7 639.7
Non-U.S. government securities    
Schedule Of Available For Sale Securities [Line Items]    
Marketable debt securities, Cost 219.5 212.8
Marketable debt securities, Unrealized Gains 0.2 1.3
Marketable debt securities, Unrealized Losses 1.4 0.3
Marketable debt securities, Fair Value 218.3 213.8
Other debt securities    
Schedule Of Available For Sale Securities [Line Items]    
Marketable debt securities, Cost 218.8 206.4
Marketable debt securities, Unrealized Gains 0.9 1.6
Marketable debt securities, Unrealized Losses 0.5 0.2
Marketable debt securities, Fair Value $ 219.2 $ 207.8
v3.26.1
Investments in Marketable Securities - Additional Information (Detail) - USD ($)
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Dec. 31, 2025
Schedule Of Available For Sale Securities [Line Items]      
Net unrealized gains (losses) on marketable equity securities recognized in investment income $ 300,000 $ (400,000)  
Allowance for credit losses 0   $ 0
Truck, Parts and Other      
Schedule Of Available For Sale Securities [Line Items]      
Gross realized gains from sales of marketable debt securities 1,500,000 900,000  
Gross realized loss from sales of marketable debt securities $ 700,000 $ 900,000  
v3.26.1
Marketable Debt Securities Continuous Unrealized Losses (Detail) - Truck, Parts and Other - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
Schedule Of Available For Sale Securities [Line Items]    
Less than 12 Months Fair Value $ 1,319.7 $ 298.5
Less than 12 Months Unrealized Losses 8.0 1.0
12 Months or Greater Fair value 52.7 75.5
12 Months or Greater Unrealized losses $ 0.5 $ 0.7
v3.26.1
Contractual Maturities on Marketable Debt Securities (Detail) - Truck, Parts and Other
$ in Millions
Mar. 31, 2026
USD ($)
Amortized Cost Maturities:  
Within one year $ 681.3
One to five years 2,512.8
Six to ten years 6.0
More than ten years 5.0
Marketable debt securities, Cost 3,205.1
Fair Value Maturities:  
Within one year 682.9
One to five years 2,515.5
Six to ten years 5.9
More than ten years 5.1
Fair Value $ 3,209.4
v3.26.1
Inventories (Detail) - Truck, Parts and Other - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
Inventory [Line Items]    
Finished products $ 1,019.0 $ 954.2
Work in process and raw materials 1,204.4 1,233.3
Inventories, gross $ 2,223.4 $ 2,187.5
v3.26.1
Finance and Other Receivables (Detail) - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
Mar. 31, 2025
Dec. 31, 2024
Financial Services        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Loans $ 10,357.3 $ 10,407.6    
Finance leases 5,143.2 5,264.6    
Dealer wholesale financing 3,879.8 4,126.3    
Operating lease receivables and other 157.8 148.9    
Finance and other receivables, net of deferred income 19,538.1 19,947.4    
Less allowance for losses (196.3) (192.9) $ (144.6) $ (145.2)
Finance and other receivables, net 19,341.8 19,754.5    
Loans and Leases        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Less allowance for losses (190.8) (187.2)    
Dealer | Wholesale        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Less allowance for losses (2.6) (2.8)    
Dealer | Wholesale | Financial Services        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Less allowance for losses (2.6) (2.8) (3.0) (3.0)
Other        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Less allowance for losses (2.9) (2.9)    
Other | Financial Services        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Less allowance for losses [1] $ (2.9) $ (2.9) $ (2.9) $ (3.0)
[1] Operating lease and other trade receivables.
v3.26.1
Finance and Other Receivables - Additional Information (Detail) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Dec. 31, 2025
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Finance receivable modified with customers financial difficulty $ 224.3 $ 49.8  
Repossessed inventory 104.0   $ 93.9
Proceeds from the sales of repossessed assets $ 21.2 $ 21.1  
ASU 2022-02      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Financing receivable modifications weighted average term extension 11 months 6 months  
Financial Services      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Months contractual terms extended 6 months   4 months
Financial Services | Loans and Leases | Minimum      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Contractual terms of retails loans and finance leases 3 years    
Financial Services | Loans and Leases | Maximum      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Contractual terms of retails loans and finance leases 5 years    
Financial Services | Financing Receivable | Maximum | Revenue Benchmark | Customer Concentration Risk      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Percentage of portfolio assets 5.00%    
Customer Retail | Fleet | Greater than 60 days past due      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Finance receivable modified, increase from modification $ 49.0    
v3.26.1
Allowance for Credit Losses (Detail) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Dec. 31, 2025
Dealer | Wholesale      
Financing Receivable, Allowance for Credit Losses [Line Items]      
Beginning Balance $ 2.8    
Ending Balance 2.6   $ 2.8
Other      
Financing Receivable, Allowance for Credit Losses [Line Items]      
Beginning Balance 2.9    
Ending Balance 2.9   2.9
Financial Services      
Financing Receivable, Allowance for Credit Losses [Line Items]      
Beginning Balance 192.9 $ 145.2 145.2
Provision for losses 44.1 18.3  
Charge-offs (45.2) (23.3)  
Recoveries 2.1 2.3  
Currency translation and other 2.4 2.1  
Ending Balance 196.3 144.6 192.9
Financial Services | Dealer | Wholesale      
Financing Receivable, Allowance for Credit Losses [Line Items]      
Beginning Balance 2.8 3.0 3.0
Provision for losses (0.3)    
Currency translation and other 0.1    
Ending Balance 2.6 3.0 2.8
Financial Services | Dealer | Retail      
Financing Receivable, Allowance for Credit Losses [Line Items]      
Beginning Balance 1.7 1.5 1.5
Provision for losses   (0.1)  
Ending Balance 1.7 1.4 1.7
Financial Services | Customer Retail      
Financing Receivable, Allowance for Credit Losses [Line Items]      
Beginning Balance 185.5 137.7 137.7
Provision for losses 44.0 18.2  
Charge-offs (44.6) (23.0) (93.8)
Recoveries 1.9 2.2  
Currency translation and other 2.3 2.2  
Ending Balance 189.1 137.3 185.5
Financial Services | Other      
Financing Receivable, Allowance for Credit Losses [Line Items]      
Beginning Balance [1] 2.9 3.0 3.0
Provision for losses [1] 0.4 0.2  
Charge-offs [1] (0.6) (0.3)  
Recoveries [1] 0.2 0.1  
Currency translation and other [1]   (0.1)  
Ending Balance [1] $ 2.9 $ 2.9 $ 2.9
[1] Operating lease and other trade receivables.
v3.26.1
Amortized Cost Basis of Finance Receivables and Charge-offs by Credit Quality Indicator and Portfolio Class (Detail) - Financial Services - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Dec. 31, 2025
Financing Receivable, Recorded Investment [Line Items]      
Financed Receivables, By Origination Year, Loans $ 4,109.2   $ 4,354.8
Financing Receivable Originated In Current Fiscal Year 1,086.4   5,829.4
Financing Receivable, Originated One Year before Current Fiscal Year 5,355.3   4,496.3
Financing Receivable, Originated Two Years before Current Fiscal Year 4,137.2   3,000.6
Financing Receivable, Originated Three Years before Current Fiscal Year 2,686.9   1,444.7
Financing Receivable, Originated Four Years before Current Fiscal Year 1,216.8   471.5
Financed Receivables, By Origination Year, Prior 788.5   201.2
Finance Receivables, Total 19,380.3   19,798.5
Finance Receivables Gross Charge-offs, Total 45.2 $ 23.3  
Dealer      
Financing Receivable, Recorded Investment [Line Items]      
Financed Receivables, By Origination Year, Loans 4,109.2   4,354.8
Financing Receivable Originated In Current Fiscal Year 93.5   592.0
Financing Receivable, Originated One Year before Current Fiscal Year 565.1   568.5
Financing Receivable, Originated Two Years before Current Fiscal Year 539.0   507.4
Financing Receivable, Originated Three Years before Current Fiscal Year 471.6   307.1
Financing Receivable, Originated Four Years before Current Fiscal Year 283.6   135.0
Financed Receivables, By Origination Year, Prior 215.4   119.6
Finance Receivables, Total 6,277.4   6,584.4
Dealer | Wholesale      
Financing Receivable, Recorded Investment [Line Items]      
Financed Receivables, By Origination Year, Loans 3,879.8   4,126.3
Finance Receivables, Total 3,879.8   4,126.3
Dealer | Wholesale | Performing      
Financing Receivable, Recorded Investment [Line Items]      
Financed Receivables, By Origination Year, Loans 3,866.8   4,114.6
Finance Receivables, Total 3,866.8   4,114.6
Dealer | Wholesale | Watch      
Financing Receivable, Recorded Investment [Line Items]      
Financed Receivables, By Origination Year, Loans 5.3   8.1
Finance Receivables, Total 5.3   8.1
Dealer | Wholesale | At-risk      
Financing Receivable, Recorded Investment [Line Items]      
Financed Receivables, By Origination Year, Loans 7.7   3.6
Finance Receivables, Total 7.7   3.6
Dealer | Retail      
Financing Receivable, Recorded Investment [Line Items]      
Financed Receivables, By Origination Year, Loans 229.4   228.5
Financing Receivable Originated In Current Fiscal Year 93.5   592.0
Financing Receivable, Originated One Year before Current Fiscal Year 565.1   568.5
Financing Receivable, Originated Two Years before Current Fiscal Year 539.0   507.4
Financing Receivable, Originated Three Years before Current Fiscal Year 471.6   307.1
Financing Receivable, Originated Four Years before Current Fiscal Year 283.6   135.0
Financed Receivables, By Origination Year, Prior 215.4   119.6
Finance Receivables, Total 2,397.6   2,458.1
Dealer | Retail | Performing      
Financing Receivable, Recorded Investment [Line Items]      
Financed Receivables, By Origination Year, Loans 229.4   228.5
Financing Receivable Originated In Current Fiscal Year 93.5   590.5
Financing Receivable, Originated One Year before Current Fiscal Year 563.6   567.7
Financing Receivable, Originated Two Years before Current Fiscal Year 538.2   506.1
Financing Receivable, Originated Three Years before Current Fiscal Year 470.4   306.7
Financing Receivable, Originated Four Years before Current Fiscal Year 283.2   134.7
Financed Receivables, By Origination Year, Prior 215.3   119.6
Finance Receivables, Total 2,393.6   2,453.8
Dealer | Retail | Watch      
Financing Receivable, Recorded Investment [Line Items]      
Financing Receivable Originated In Current Fiscal Year     1.5
Financing Receivable, Originated One Year before Current Fiscal Year 1.5   0.8
Financing Receivable, Originated Two Years before Current Fiscal Year 0.8   1.3
Financing Receivable, Originated Three Years before Current Fiscal Year 1.2   0.4
Financing Receivable, Originated Four Years before Current Fiscal Year 0.4   0.3
Financed Receivables, By Origination Year, Prior 0.1    
Finance Receivables, Total 4.0   4.3
Customer Retail      
Financing Receivable, Recorded Investment [Line Items]      
Financing Receivable Originated In Current Fiscal Year 992.9   5,237.4
Financing Receivable, Originated One Year before Current Fiscal Year 4,790.2   3,927.8
Financing Receivable, Originated Two Years before Current Fiscal Year 3,598.2   2,493.2
Financing Receivable, Originated Three Years before Current Fiscal Year 2,215.3   1,137.6
Financing Receivable, Originated Four Years before Current Fiscal Year 933.2   336.5
Financed Receivables, By Origination Year, Prior 573.1   81.6
Finance Receivables, Total 13,102.9   13,214.1
Financing Receivables Gross Charge-offs, Year One, Originated, Current Fiscal Year 0.3   1.6
Financing Receivables Gross Charge-offs, Originated One Year before Current Fiscal Year 4.3   12.7
Financing Receivables Gross Charge-offs, Originated Two Years before Current Fiscal Year 10.1   40.2
Financing Receivables Gross Charge-offs, Originated Three Years before Current Fiscal Year 14.0   22.6
Financing Receivables Gross Charge-offs, Originated Four Years before Current Fiscal Year 8.7   9.6
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Writeoff 7.2   7.1
Finance Receivables Gross Charge-offs, Total 44.6 $ 23.0 93.8
Customer Retail | Fleet      
Financing Receivable, Recorded Investment [Line Items]      
Financing Receivable Originated In Current Fiscal Year 847.1   4,599.4
Financing Receivable, Originated One Year before Current Fiscal Year 4,163.8   3,514.5
Financing Receivable, Originated Two Years before Current Fiscal Year 3,188.2   2,271.5
Financing Receivable, Originated Three Years before Current Fiscal Year 2,005.0   1,014.6
Financing Receivable, Originated Four Years before Current Fiscal Year 826.8   279.6
Financed Receivables, By Origination Year, Prior 472.9   70.9
Finance Receivables, Total 11,503.8   11,750.5
Financing Receivables Gross Charge-offs, Year One, Originated, Current Fiscal Year 0.2   1.3
Financing Receivables Gross Charge-offs, Originated One Year before Current Fiscal Year 3.8   10.6
Financing Receivables Gross Charge-offs, Originated Two Years before Current Fiscal Year 9.2   37.6
Financing Receivables Gross Charge-offs, Originated Three Years before Current Fiscal Year 12.8   19.7
Financing Receivables Gross Charge-offs, Originated Four Years before Current Fiscal Year 7.7   9.0
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Writeoff 7.0   6.8
Finance Receivables Gross Charge-offs, Total 40.7   85.0
Customer Retail | Fleet | Performing      
Financing Receivable, Recorded Investment [Line Items]      
Financing Receivable Originated In Current Fiscal Year 785.3   4,465.0
Financing Receivable, Originated One Year before Current Fiscal Year 3,960.2   3,399.5
Financing Receivable, Originated Two Years before Current Fiscal Year 3,026.0   2,060.2
Financing Receivable, Originated Three Years before Current Fiscal Year 1,771.9   919.3
Financing Receivable, Originated Four Years before Current Fiscal Year 740.3   254.4
Financed Receivables, By Origination Year, Prior 445.2   68.6
Finance Receivables, Total 10,728.9   11,167.0
Customer Retail | Fleet | Watch      
Financing Receivable, Recorded Investment [Line Items]      
Financing Receivable Originated In Current Fiscal Year 9.7   63.7
Financing Receivable, Originated One Year before Current Fiscal Year 105.0   35.0
Financing Receivable, Originated Two Years before Current Fiscal Year 57.6   63.4
Financing Receivable, Originated Three Years before Current Fiscal Year 55.3   44.8
Financing Receivable, Originated Four Years before Current Fiscal Year 36.1   16.2
Financed Receivables, By Origination Year, Prior 15.5   0.6
Finance Receivables, Total 279.2   223.7
Customer Retail | Fleet | At-risk      
Financing Receivable, Recorded Investment [Line Items]      
Financing Receivable Originated In Current Fiscal Year 52.1   70.7
Financing Receivable, Originated One Year before Current Fiscal Year 98.6   80.0
Financing Receivable, Originated Two Years before Current Fiscal Year 104.6   147.9
Financing Receivable, Originated Three Years before Current Fiscal Year 177.8   50.5
Financing Receivable, Originated Four Years before Current Fiscal Year 50.4   9.0
Financed Receivables, By Origination Year, Prior 12.2   1.7
Finance Receivables, Total 495.7   359.8
Customer Retail | Owner/Operator      
Financing Receivable, Recorded Investment [Line Items]      
Financing Receivable Originated In Current Fiscal Year 145.8   638.0
Financing Receivable, Originated One Year before Current Fiscal Year 626.4   413.3
Financing Receivable, Originated Two Years before Current Fiscal Year 410.0   221.7
Financing Receivable, Originated Three Years before Current Fiscal Year 210.3   123.0
Financing Receivable, Originated Four Years before Current Fiscal Year 106.4   56.9
Financed Receivables, By Origination Year, Prior 100.2   10.7
Finance Receivables, Total 1,599.1   1,463.6
Financing Receivables Gross Charge-offs, Year One, Originated, Current Fiscal Year 0.1   0.3
Financing Receivables Gross Charge-offs, Originated One Year before Current Fiscal Year 0.5   2.1
Financing Receivables Gross Charge-offs, Originated Two Years before Current Fiscal Year 0.9   2.6
Financing Receivables Gross Charge-offs, Originated Three Years before Current Fiscal Year 1.2   2.9
Financing Receivables Gross Charge-offs, Originated Four Years before Current Fiscal Year 1.0   0.6
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Writeoff 0.2   0.3
Finance Receivables Gross Charge-offs, Total 3.9   8.8
Customer Retail | Owner/Operator | Performing      
Financing Receivable, Recorded Investment [Line Items]      
Financing Receivable Originated In Current Fiscal Year 145.4   624.5
Financing Receivable, Originated One Year before Current Fiscal Year 616.7   404.0
Financing Receivable, Originated Two Years before Current Fiscal Year 401.5   213.5
Financing Receivable, Originated Three Years before Current Fiscal Year 201.9   114.9
Financing Receivable, Originated Four Years before Current Fiscal Year 101.0   54.2
Financed Receivables, By Origination Year, Prior 97.4   10.1
Finance Receivables, Total 1,563.9   1,421.2
Customer Retail | Owner/Operator | Watch      
Financing Receivable, Recorded Investment [Line Items]      
Financing Receivable Originated In Current Fiscal Year 0.4   5.4
Financing Receivable, Originated One Year before Current Fiscal Year 6.5   5.5
Financing Receivable, Originated Two Years before Current Fiscal Year 5.9   4.2
Financing Receivable, Originated Three Years before Current Fiscal Year 5.6   3.6
Financing Receivable, Originated Four Years before Current Fiscal Year 2.3   1.6
Financed Receivables, By Origination Year, Prior 1.5   0.3
Finance Receivables, Total 22.2   20.6
Customer Retail | Owner/Operator | At-risk      
Financing Receivable, Recorded Investment [Line Items]      
Financing Receivable Originated In Current Fiscal Year     8.1
Financing Receivable, Originated One Year before Current Fiscal Year 3.2   3.8
Financing Receivable, Originated Two Years before Current Fiscal Year 2.6   4.0
Financing Receivable, Originated Three Years before Current Fiscal Year 2.8   4.5
Financing Receivable, Originated Four Years before Current Fiscal Year 3.1   1.1
Financed Receivables, By Origination Year, Prior 1.3   0.3
Finance Receivables, Total $ 13.0   $ 21.8
v3.26.1
Financing Receivables by Aging Category (Detail) - Financial Services - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Finance Receivable $ 19,380.3 $ 19,798.5
Current and up to 30 days past due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Finance Receivable 18,994.3 19,416.7
31 - 60 days past due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Finance Receivable 136.0 159.7
Greater than 60 days past due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Finance Receivable 250.0 222.1
Dealer    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Finance Receivable 6,277.4 6,584.4
Dealer | Wholesale    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Finance Receivable 3,879.8 4,126.3
Dealer | Retail    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Finance Receivable 2,397.6 2,458.1
Dealer | Current and up to 30 days past due | Wholesale    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Finance Receivable 3,872.2 4,117.7
Dealer | Current and up to 30 days past due | Retail    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Finance Receivable 2,397.6 2,458.1
Dealer | 31 - 60 days past due | Wholesale    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Finance Receivable 3.5 5.0
Dealer | Greater than 60 days past due | Wholesale    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Finance Receivable 4.1 3.6
Customer Retail    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Finance Receivable 13,102.9 13,214.1
Customer Retail | Fleet    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Finance Receivable 11,503.8 11,750.5
Customer Retail | Owner/Operator    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Finance Receivable 1,599.1 1,463.6
Customer Retail | Current and up to 30 days past due | Fleet    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Finance Receivable 11,156.5 11,412.2
Customer Retail | Current and up to 30 days past due | Owner/Operator    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Finance Receivable 1,568.0 1,428.7
Customer Retail | 31 - 60 days past due | Fleet    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Finance Receivable 117.1 137.9
Customer Retail | 31 - 60 days past due | Owner/Operator    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Finance Receivable 15.4 16.8
Customer Retail | Greater than 60 days past due | Fleet    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Finance Receivable 230.2 200.4
Customer Retail | Greater than 60 days past due | Owner/Operator    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Finance Receivable $ 15.7 $ 18.1
v3.26.1
Summary of Non-Accrual Loans and Finance Leases with Specific Reserve and No Specific Reserve (Details) - Financial Services - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Amortized cost basis with a specific reserve $ 453.2 $ 349.7
Amortized cost basis with no specific reserve 63.0 27.8
Total 516.2 377.5
Dealer | Wholesale    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Amortized cost basis with no specific reserve 7.7 3.6
Total 7.7 3.6
Customer Retail | Fleet    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Amortized cost basis with a specific reserve 441.7 334.2
Amortized cost basis with no specific reserve 53.8 18.0
Total 495.5 352.2
Customer Retail | Owner/Operator    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Amortized cost basis with a specific reserve 11.5 15.5
Amortized cost basis with no specific reserve 1.5 6.2
Total $ 13.0 $ 21.7
v3.26.1
Interest Income Recognized on Cash Basis for Finance Receivables that are on Non-Accrual Status (Detail) - Financial Services - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Interest income recognized:    
Interest income recognized on a cash basis $ 0.7 $ 4.7
Customer Retail | Fleet    
Interest income recognized:    
Interest income recognized on a cash basis 0.6 4.6
Customer Retail | Owner/Operator    
Interest income recognized:    
Interest income recognized on a cash basis $ 0.1 $ 0.1
v3.26.1
Amortized Cost Basis of Finance Receivables Modified by Portfolio Class (Detail) - Customer Retail - USD ($)
$ in Millions
Mar. 31, 2026
Mar. 31, 2025
Financing Receivable, Modified [Line Items]    
Amortized cost basis of finance receivables $ 155.8 $ 11.7
Financing receivable modifications percentage 4.00% 0.30%
Fleet    
Financing Receivable, Modified [Line Items]    
Amortized cost basis of finance receivables $ 155.2 $ 11.6
Owner/Operator    
Financing Receivable, Modified [Line Items]    
Amortized cost basis of finance receivables $ 0.6 $ 0.1
v3.26.1
Amortized Cost Basis and Performance of Finance Receivables Modified (Details) - Customer Retail - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Financing Receivable, Modified [Line Items]    
Amortized cost basis of finance receivables $ 250.9 $ 163.7
Fleet | Current and up to 30 days past due    
Financing Receivable, Modified [Line Items]    
Amortized cost basis of finance receivables 196.6 160.6
Fleet | 31 - 60 days past due    
Financing Receivable, Modified [Line Items]    
Amortized cost basis of finance receivables 0.9 0.2
Fleet | Greater than 60 days past due    
Financing Receivable, Modified [Line Items]    
Amortized cost basis of finance receivables 49.0 2.4
Owner/Operator | Current and up to 30 days past due    
Financing Receivable, Modified [Line Items]    
Amortized cost basis of finance receivables 2.8 $ 0.5
Owner/Operator | 31 - 60 days past due    
Financing Receivable, Modified [Line Items]    
Amortized cost basis of finance receivables 1.4  
Owner/Operator | Greater than 60 days past due    
Financing Receivable, Modified [Line Items]    
Amortized cost basis of finance receivables $ 0.2  
v3.26.1
Product Support Liabilities - Additional Information (Detail)
$ in Millions
 3 Months Ended
Mar. 31, 2026
USD ($)
Product Warranty Liability [Line Items]  
Deferred revenue on extended warranties and R&M recognize, in 2026 $ 336.0
Deferred revenue on extended warranties and R&M recognize, in 2027 412.4
Deferred revenue on extended warranties and R&M recognize, in 2028 308.5
Deferred revenue on extended warranties and R&M recognize, in 2029 186.8
Deferred revenue on extended warranties and R&M recognize, in 2030 115.3
Deferred revenue on extended warranties and R&M recognize, thereafter $ 45.0
Truck, Parts and Other  
Product Warranty Liability [Line Items]  
Standard product warranty, description The Company generally offers one year warranties covering most of its vehicles and related aftermarket parts. For vehicles equipped with engines manufactured by PACCAR, the Company generally offers two year warranties on the engine.
Standard product warranty, term 1 year
Extended product warranty, description Optional extended warranty and R&M contracts can be purchased for periods which generally range up to five years.
Truck, Parts and Other | Maximum  
Product Warranty Liability [Line Items]  
Extended product warranty, term 5 years
Truck, Parts and Other | Engines manufactured by PACCAR  
Product Warranty Liability [Line Items]  
Standard product warranty, term 2 years
v3.26.1
Changes in Product Support Liabilities (Detail) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
DEFERRED REVENUES ON EXTENDED WARRANTIES AND R&M CONTRACTS    
Beginning balance $ 1,411.1 $ 1,302.2
Deferred revenues 177.9 172.7
Revenues recognized (173.7) (157.9)
Currency translation (11.3) 26.5
Ending balance 1,404.0 1,343.5
Truck, Parts and Other    
WARRANTY RESERVES    
Beginning balance 596.2 606.1
Cost accruals 138.1 199.5
Payments (174.2) (211.3)
Change in estimates for pre-existing warranties 28.6 19.2
Currency translation and other (2.8) 8.9
Ending balance $ 585.9 $ 622.4
v3.26.1
Components of Comprehensive Income, Net of Related Tax (Detail) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Statement of Comprehensive Income [Abstract]    
Net income $ 605.3 $ 505.1
Other comprehensive income (loss) (OCI):    
Unrealized gains (losses) on derivative contracts 13.6 (21.9)
Tax effect (2.5) 6.5
Net current period OCI, unrealized (losses) gains on derivative contracts 11.1 (15.4)
Unrealized (losses) gains on marketable debt securities (21.3) 15.7
Tax effect 5.4 (4.4)
Net current period OCI, unrealized gains (losses) on marketable debt securities (15.9) 11.3
Pension plans 0.3 0.4
Tax effect (0.1)  
Net current period OCI, pension plans 0.2 0.4
Foreign currency translation gains 12.6 153.9
Net other comprehensive income (loss) 8.0 150.2
Comprehensive income $ 613.3 $ 655.3
v3.26.1
Changes in Accumulated Other Comprehensive Income (Loss) by Component (Detail) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning balance $ 19,264.0  
Reclassified out of AOCI 58.5 $ 54.5
Net other comprehensive income (loss) 8.0 150.2
Ending balance 19,756.6 18,022.1
Derivative Contracts    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning balance 3.4 32.5
Recorded into AOCI (45.5) (69.2)
Reclassified out of AOCI 56.6 53.8
Net other comprehensive income (loss) 11.1 (15.4)
Ending balance 14.5 17.1
Marketable Debt Securities    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning balance 19.2 (0.7)
Recorded into AOCI (16.5) 11.4
Reclassified out of AOCI 0.6 (0.1)
Net other comprehensive income (loss) (15.9) 11.3
Ending balance 3.3 10.6
Pension Plans    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning balance 280.9 69.7
Recorded into AOCI (1.1) (0.4)
Reclassified out of AOCI 1.3 0.8
Net other comprehensive income (loss) 0.2 0.4
Ending balance 281.1 70.1
Foreign Currency Translation    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning balance (640.2) (1,214.8)
Recorded into AOCI 12.6 153.9
Net other comprehensive income (loss) 12.6 153.9
Ending balance (627.6) (1,060.9)
Accumulated Other Comprehensive Income (Loss)    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning balance (336.7) (1,113.3)
Recorded into AOCI (50.5) 95.7
Reclassified out of AOCI 58.5 54.5
Net other comprehensive income (loss) 8.0 150.2
Ending balance $ (328.7) $ (963.1)
v3.26.1
Reclassifications Out of Accumulated Other Comprehensive Income (Detail) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Cost of sales and revenues $ 5,416.5 $ 5,891.0
Interest and other (income) expenses, net (21.3) 325.8
Interest and other borrowing expenses 182.8 190.6
Income before income taxes 776.3 643.1
Investment income 80.4 83.8
Tax (benefit) expense 171.0 138.0
Net Income 605.3 505.1
Reclassified out of AOCI 58.5 54.5
Derivative Contracts    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Reclassified out of AOCI 56.6 53.8
Derivative Contracts | Reclassification out of Accumulated Other Comprehensive Income    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Income before income taxes 77.2 68.2
Tax (benefit) expense (20.6) (14.4)
Net Income 56.6 53.8
Marketable Debt Securities    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Reclassified out of AOCI 0.6 (0.1)
Marketable Debt Securities | Reclassification out of Accumulated Other Comprehensive Income    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Investment income 0.8 (0.2)
Tax (benefit) expense (0.2) 0.1
Net Income 0.6 (0.1)
Truck, Parts and Other    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Net sales and revenues (6,234.3) (6,913.7)
Truck, Parts and Other | Derivative Contracts | Foreign-exchange contracts | Reclassification out of Accumulated Other Comprehensive Income    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Net sales and revenues 4.4 (2.8)
Cost of sales and revenues 1.7 (9.5)
Interest and other (income) expenses, net 16.7 12.4
Truck, Parts and Other | Derivative Contracts | Commodity contracts | Reclassification out of Accumulated Other Comprehensive Income    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Cost of sales and revenues 0.1 (0.1)
Truck, Parts and Other | Actuarial loss | Reclassification out of Accumulated Other Comprehensive Income    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Interest and other (income) expenses, net 1.1 0.7
Truck, Parts and Other | Prior service costs | Reclassification out of Accumulated Other Comprehensive Income    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Interest and other (income) expenses, net 0.4 0.3
Truck, Parts and Other | Settlement loss | Reclassification out of Accumulated Other Comprehensive Income    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Income before income taxes 1.5 1.0
Tax (benefit) expense (0.2) (0.2)
Net Income 1.3 0.8
Financial Services | Derivative Contracts | Foreign-exchange contracts | Reclassification out of Accumulated Other Comprehensive Income    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Interest and other borrowing expenses 7.7 5.8
Financial Services | Derivative Contracts | Interest-Rate Contracts | Reclassification out of Accumulated Other Comprehensive Income    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Interest and other borrowing expenses $ 46.6 $ 62.4
v3.26.1
Stockholders' Equity - Additional Information (Detail) - USD ($)
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Dec. 04, 2018
Equity Class Of Treasury Stock [Line Items]      
Stock-based compensation expense $ 14,600,000 $ 13,700,000  
Additional common shares issued under deferred and stock compensation arrangements 851,246    
Long Term Incentive Plan      
Equity Class Of Treasury Stock [Line Items]      
Treasury stock purchases, shares 41,602    
Common Stock Repurchase Plan      
Equity Class Of Treasury Stock [Line Items]      
Treasury stock purchases, shares 0    
Stock repurchase programs, remaining authorized amount $ 371,600,000    
Stock repurchase programs, authorized amount     $ 500,000,000
v3.26.1
Income Taxes - Additional Information (Detail)
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Income Tax Disclosure [Abstract]    
Effective tax rate 22.00% 21.50%
v3.26.1
Segment Information - Additional Information (Detail)
 3 Months Ended
Mar. 31, 2026
Segment
Segment Reporting [Abstract]  
Reportable segments 3
v3.26.1
Segment Reporting Information by Segment (Detail) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Dec. 31, 2025
Segment Reporting Information [Line Items]      
Revenues $ 6,776.5 $ 7,441.7  
Cost of sales and revenues 5,416.5 5,891.0  
Research and development 109.1 115.4  
Selling, general and administrative 189.3 181.6  
Interest and other borrowing expenses 182.8 190.6  
Depreciation and other expenses 160.1 159.7  
Provision for losses on receivables 44.1 18.3  
Other segment expenses (income), net (21.3) 325.8  
Income (Loss) before investment income and income taxes 695.9 559.3  
Investment income 80.4 83.8  
Total Income Before Income Taxes 776.3 643.1  
Depreciation and amortization 200.1 205.1  
Expenditures for long-lived assets 306.2 332.6  
Assets 43,553.5   $ 44,336.2
Operating Segments      
Segment Reporting Information [Line Items]      
Revenues 6,942.3 7,625.5  
Intersegment      
Segment Reporting Information [Line Items]      
Revenues (165.8) (183.8)  
Truck, Parts and Other      
Segment Reporting Information [Line Items]      
Net sales and revenues 6,234.3 6,913.7  
Revenues 6,234.3 6,913.7  
Cost of sales and revenues 5,416.5 5,891.0  
Research and development 109.1 115.4  
Selling, general and administrative 149.6 143.3  
Other segment expenses (income), net (21.3) 325.8  
Income (Loss) before investment income and income taxes 580.4 438.2  
Total Income Before Income Taxes 580.4 438.2  
Depreciation and amortization 103.0 101.3  
Expenditures for long-lived assets 142.5 180.1  
Assets 21,205.3   21,532.8
Cash and marketable securities 8,595.4   9,253.7
Truck, Parts and Other | Operating Segments      
Segment Reporting Information [Line Items]      
Net sales and revenues 6,400.1 7,097.5  
Truck, Parts and Other | Intersegment      
Segment Reporting Information [Line Items]      
Net sales and revenues (165.8) (183.8)  
Truck, Parts and Other | Truck      
Segment Reporting Information [Line Items]      
Net sales and revenues 4,526.5 5,225.8  
Cost of sales and revenues 4,208.8 4,716.5  
Research and development 73.6 85.4  
Selling, general and administrative 61.4 57.3  
Other segment expenses (income), net 6.5 1.7  
Income (Loss) before investment income and income taxes 176.2 364.9  
Total Income Before Income Taxes 176.2 364.9  
Depreciation and amortization 92.4 90.9  
Expenditures for long-lived assets 125.2 162.1  
Assets 8,189.1   7,966.1
Truck, Parts and Other | Truck | Operating Segments      
Segment Reporting Information [Line Items]      
Net sales and revenues 4,672.3 5,390.8  
Truck, Parts and Other | Truck | Intersegment      
Segment Reporting Information [Line Items]      
Net sales and revenues (145.8) (165.0)  
Truck, Parts and Other | Parts      
Segment Reporting Information [Line Items]      
Net sales and revenues 1,710.1 1,689.9  
Cost of sales and revenues 1,203.7 1,171.5  
Research and development 35.5 30.0  
Selling, general and administrative 67.7 60.9  
Other segment expenses (income), net 0.9 1.0  
Income (Loss) before investment income and income taxes 402.3 426.5  
Total Income Before Income Taxes 402.3 426.5  
Depreciation and amortization 4.5 4.3  
Expenditures for long-lived assets 5.1 3.3  
Assets 2,350.9   2,278.5
Truck, Parts and Other | Parts | Operating Segments      
Segment Reporting Information [Line Items]      
Net sales and revenues 1,730.1 1,708.7  
Truck, Parts and Other | Parts | Intersegment      
Segment Reporting Information [Line Items]      
Net sales and revenues (20.0) (18.8)  
Truck, Parts and Other | Other      
Segment Reporting Information [Line Items]      
Net sales and revenues (2.3) (2.0)  
Cost of sales and revenues 4.0 3.0  
Selling, general and administrative 20.5 25.1  
Other segment expenses (income), net (28.7) 323.1  
Income (Loss) before investment income and income taxes 1.9 (353.2)  
Total Income Before Income Taxes 1.9 (353.2)  
Depreciation and amortization 6.1 6.1  
Expenditures for long-lived assets 12.2 14.7  
Assets 2,069.9   2,034.5
Truck, Parts and Other | Other | Operating Segments      
Segment Reporting Information [Line Items]      
Net sales and revenues (2.3) (2.0)  
Financial Services      
Segment Reporting Information [Line Items]      
Revenues 542.2 528.0  
Selling, general and administrative 39.7 38.3  
Interest and other borrowing expenses 182.8 190.6  
Depreciation and other expenses 160.1 159.7  
Provision for losses on receivables 44.1 18.3  
Income (Loss) before investment income and income taxes 115.5 121.1  
Total Income Before Income Taxes 115.5 121.1  
Depreciation and amortization 97.1 103.8  
Expenditures for long-lived assets 163.7 152.5  
Assets 22,348.2   $ 22,803.4
Financial Services | Operating Segments      
Segment Reporting Information [Line Items]      
Revenues $ 542.2 $ 528.0  
v3.26.1
Segment Reporting Information by Segment (Parenthetical) (Detail)
$ in Millions
 3 Months Ended
Mar. 31, 2025
USD ($)
Segment Reporting [Abstract]  
Expenses related to litigation $ 350.0
v3.26.1
Derivative Financial Instruments - Additional Information (Detail) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosures [Line Items]      
Derivative assets $ 61.0   $ 63.0
Fair Value Hedging      
Derivative Instruments and Hedging Activities Disclosures [Line Items]      
Remaining cumulative basis adjustments on discontinued hedge relationship $ 0.7   $ 0.0
Cash Flow Hedging      
Derivative Instruments and Hedging Activities Disclosures [Line Items]      
Maximum length of future cash flow hedges 6 years 8 months 12 days    
Accumulated net gain on derivative contracts included in accumulated other comprehensive loss expected to be recognized in the Consolidated Statements of Comprehensive Income in the following 12 months, net of tax $ 26.3    
Gains (losses) reclassification from AOCI 0.0 $ 0.0  
Net Investment Hedging      
Derivative Instruments and Hedging Activities Disclosures [Line Items]      
Derivative notional amount outstanding 471.1    
Pre-tax gain (loss) recognized in OCI 18.8 (55.6)  
Cost of sales and revenues      
Derivative Instruments and Hedging Activities Disclosures [Line Items]      
(Gain) loss from commodity contracts 0.1 $ (0.1)  
Interest-Rate Contracts      
Derivative Instruments and Hedging Activities Disclosures [Line Items]      
Notional amount of outstanding contracts $ 4,465.6    
Derivative notional amount expiry period 8 years    
Notional maturities for interest-rate contracts, remainder of 2026 $ 1,126.5    
Notional maturities for interest-rate contracts 2027 865.0    
Notional maturities for interest-rate contracts 2028 841.2    
Notional maturities for interest-rate contracts 2029 1,186.4    
Notional maturities for interest-rate contracts 2030 34.5    
Notional maturities for interest-rate contracts 2031 412.0    
Foreign-exchange contracts      
Derivative Instruments and Hedging Activities Disclosures [Line Items]      
Derivative notional amount outstanding $ 1,698.5    
Foreign-exchange contracts maturity period within one year    
Commodity contracts      
Derivative Instruments and Hedging Activities Disclosures [Line Items]      
Derivative notional amount outstanding $ 26.2    
Foreign-exchange contracts maturity period within one year    
v3.26.1
Balance Sheet Classifications, Fair Value, Gross and Net Amounts of Derivative Financial Instruments (Detail) - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
ASSETS    
Derivative assets $ 61.0 $ 63.0
Net amount $ 44.9 $ 47.0
Derivative Asset, Statement of Financial Position [Extensible Enumeration] Assets Assets
LIABILITIES    
Derivative liabilities $ 143.4 $ 166.3
Net amount $ 127.3 $ 150.3
Derivative Liability, Statement of Financial Position [Extensible Enumeration] Liabilities Liabilities
Interest-Rate Contracts | Financial Services    
ASSETS    
Less amounts not offset in financial instruments, subject to enforceable master netting arrangements $ (15.2) $ (15.6)
LIABILITIES    
Less amounts not offset in financial instruments (15.2) (15.6)
Foreign-exchange contracts | Truck, Parts and Other    
ASSETS    
Less amounts not offset in financial instruments, subject to enforceable master netting arrangements (0.8) (0.4)
LIABILITIES    
Less amounts not offset in financial instruments (0.8) (0.4)
Commodity contracts | Truck, Parts and Other    
ASSETS    
Less amounts not offset in financial instruments, subject to enforceable master netting arrangements (0.1)  
LIABILITIES    
Less amounts not offset in financial instruments (0.1)  
Designated under hedge accounting    
ASSETS    
Derivative assets 58.9 62.2
LIABILITIES    
Derivative liabilities 141.4 165.3
Designated under hedge accounting | Interest-Rate Contracts | Financial Services | Other Assets    
ASSETS    
Derivative assets 40.5 50.0
Designated under hedge accounting | Interest-Rate Contracts | Financial Services | Deferred Taxes and Other Liabilities    
LIABILITIES    
Derivative liabilities 101.7 76.8
Designated under hedge accounting | Foreign-exchange contracts | Financial Services | Deferred Taxes and Other Liabilities    
LIABILITIES    
Derivative liabilities 12.1 4.2
Designated under hedge accounting | Foreign-exchange contracts | Truck, Parts and Other | Other current assets    
ASSETS    
Derivative assets 17.3 11.9
Designated under hedge accounting | Foreign-exchange contracts | Truck, Parts and Other | Accounts payable, accrued expenses and other    
LIABILITIES    
Derivative liabilities 27.5 84.3
Designated under hedge accounting | Commodity contracts | Truck, Parts and Other | Other current assets    
ASSETS    
Derivative assets 1.1 0.3
Designated under hedge accounting | Commodity contracts | Truck, Parts and Other | Accounts payable, accrued expenses and other    
LIABILITIES    
Derivative liabilities 0.1  
Not designated as hedging instruments    
ASSETS    
Derivative assets 2.1 0.8
LIABILITIES    
Derivative liabilities 2.0 1.0
Not designated as hedging instruments | Foreign-exchange contracts | Financial Services | Other Assets    
ASSETS    
Derivative assets 0.4 0.3
Not designated as hedging instruments | Foreign-exchange contracts | Financial Services | Deferred Taxes and Other Liabilities    
LIABILITIES    
Derivative liabilities 0.7 0.1
Not designated as hedging instruments | Foreign-exchange contracts | Truck, Parts and Other | Other current assets    
ASSETS    
Derivative assets 1.7 0.5
Not designated as hedging instruments | Foreign-exchange contracts | Truck, Parts and Other | Accounts payable, accrued expenses and other    
LIABILITIES    
Derivative liabilities $ 1.3 $ 0.9
v3.26.1
Amount of Loss (Gain) from Derivative Financial Instruments Recorded in Consolidated Statements of Comprehensive Income (Detail) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Interest-Rate Contracts    
Derivative Instruments Gain Loss [Line Items]    
Derivatives designated as hedging instruments loss (gain) $ 46.9 $ 63.4
Interest-Rate Contracts | Financial Services | Interest and other borrowing expenses    
Derivative Instruments Gain Loss [Line Items]    
Derivatives designated as hedging instruments loss (gain) 46.9 63.4
Foreign-exchange contracts    
Derivative Instruments Gain Loss [Line Items]    
Derivatives designated as hedging instruments loss (gain) 24.6 2.5
Foreign-exchange contracts | Truck, Parts and Other    
Derivative Instruments Gain Loss [Line Items]    
Derivatives designated as hedging instruments loss (gain) 18.3 (3.4)
Foreign-exchange contracts | Truck, Parts and Other | Cost of sales and revenues | Not designated as hedging instruments    
Derivative Instruments Gain Loss [Line Items]    
Derivatives designated as hedging instruments loss (gain) (1.4) 0.1
Foreign-exchange contracts | Truck, Parts and Other | Interest and other (income) expenses, net | Not designated as hedging instruments    
Derivative Instruments Gain Loss [Line Items]    
Derivatives designated as hedging instruments loss (gain) (0.9) 1.3
Foreign-exchange contracts | Financial Services | Interest and other borrowing expenses    
Derivative Instruments Gain Loss [Line Items]    
Derivatives designated as hedging instruments loss (gain) 6.3 5.9
Foreign-exchange contracts | Financial Services | Interest and other borrowing expenses | Not designated as hedging instruments    
Derivative Instruments Gain Loss [Line Items]    
Derivatives designated as hedging instruments loss (gain) 0.1 (0.7)
Cash Flow Hedging | Interest-Rate Contracts | Financial Services | Interest and other borrowing expenses    
Derivative Instruments Gain Loss [Line Items]    
Derivatives designated as hedging instruments loss (gain) 46.6 62.4
Cash Flow Hedging | Foreign-exchange contracts | Truck, Parts and Other | Net sales and revenues    
Derivative Instruments Gain Loss [Line Items]    
Derivatives designated as hedging instruments loss (gain) 4.4 (2.8)
Cash Flow Hedging | Foreign-exchange contracts | Truck, Parts and Other | Cost of sales and revenues    
Derivative Instruments Gain Loss [Line Items]    
Derivatives designated as hedging instruments loss (gain) 1.7 (9.5)
Cash Flow Hedging | Foreign-exchange contracts | Truck, Parts and Other | Interest and other (income) expenses, net    
Derivative Instruments Gain Loss [Line Items]    
Derivatives designated as hedging instruments loss (gain) 16.7 12.4
Cash Flow Hedging | Foreign-exchange contracts | Financial Services | Interest and other borrowing expenses    
Derivative Instruments Gain Loss [Line Items]    
Derivatives designated as hedging instruments loss (gain) 7.7 5.8
Net Investment Hedging | Foreign-exchange contracts | Truck, Parts and Other | Interest and other (income) expenses, net    
Derivative Instruments Gain Loss [Line Items]    
Derivatives designated as hedging instruments loss (gain) (3.7) (4.1)
Fair Value Hedging | Interest-Rate Contracts | Financial Services | Interest and other borrowing expenses    
Derivative Instruments Gain Loss [Line Items]    
Derivatives designated as hedging instruments loss (gain) $ 0.3 $ 1.0
v3.26.1
Amounts Related to Cumulative Basis Adjustments for Fair Value Hedges (Detail) - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Carrying amount of the hedged liabilities $ 759.2 $ 753.7
Hedged Liability, Statement of Financial Position [Extensible Enumeration] Notes Payable Notes Payable
Cumulative basis adjustment increase included in the carrying amount $ 0.8 $ 3.9
v3.26.1
Pre-Tax Effects of (Loss) Gain on Cash Flow Hedges Recognized in OCI (Detail) - Derivative Contracts - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Interest-Rate Contracts    
Derivative [Line Items]    
(Loss) gain recognized in OCI $ (38.9) $ (72.0)
Foreign-exchange contracts    
Derivative [Line Items]    
(Loss) gain recognized in OCI (26.0) (20.4)
Commodity contracts    
Derivative [Line Items]    
(Loss) gain recognized in OCI 1.3 (0.2)
Truck, Parts and Other | Foreign-exchange contracts    
Derivative [Line Items]    
(Loss) gain recognized in OCI (18.2) (11.3)
Truck, Parts and Other | Commodity contracts    
Derivative [Line Items]    
(Loss) gain recognized in OCI 1.3 (0.2)
Financial Services | Interest-Rate Contracts    
Derivative [Line Items]    
(Loss) gain recognized in OCI (38.9) (72.0)
Financial Services | Foreign-exchange contracts    
Derivative [Line Items]    
(Loss) gain recognized in OCI $ (7.8) $ (9.1)
v3.26.1
Financial Assets and Liabilities Subject to Recurring Fair Value Measurements (Detail) - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Derivative assets $ 61.0 $ 63.0
Derivative liabilities 143.4 166.3
Fair Value, Measurements, Recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Marketable debt securities 3,209.4 3,203.9
Marketable equity securities, Fair Value 4.1 3.8
Total marketable securities 3,213.5 3,207.7
Derivative assets 61.0 63.0
Derivative liabilities 143.4 166.3
Fair Value, Measurements, Recurring | Level 1    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Marketable debt securities 466.7 436.2
Marketable equity securities, Fair Value 4.1 3.8
Total marketable securities 470.8 440.0
Fair Value, Measurements, Recurring | Level 2    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Marketable debt securities 2,742.7 2,767.7
Total marketable securities 2,742.7 2,767.7
Derivative assets 61.0 63.0
Derivative liabilities 143.4 166.3
Fair Value, Measurements, Recurring | Cross currency swaps    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Derivative assets 22.0 30.0
Derivative liabilities 96.5 67.1
Fair Value, Measurements, Recurring | Cross currency swaps | Level 2    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Derivative assets 22.0 30.0
Derivative liabilities 96.5 67.1
Fair Value, Measurements, Recurring | Interest-rate swaps    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Derivative assets 18.5 20.0
Derivative liabilities 5.2 9.7
Fair Value, Measurements, Recurring | Interest-rate swaps | Level 2    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Derivative assets 18.5 20.0
Derivative liabilities 5.2 9.7
Fair Value, Measurements, Recurring | Foreign-exchange contracts    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Derivative assets 19.4 12.7
Derivative liabilities 41.6 89.5
Fair Value, Measurements, Recurring | Foreign-exchange contracts | Level 2    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Derivative assets 19.4 12.7
Derivative liabilities 41.6 89.5
Fair Value, Measurements, Recurring | Commodity contracts    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Derivative assets 1.1 0.3
Derivative liabilities 0.1  
Fair Value, Measurements, Recurring | Commodity contracts | Level 2    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Derivative assets 1.1 0.3
Derivative liabilities 0.1  
U.S. tax-exempt securities | Fair Value, Measurements, Recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Marketable debt securities 290.2 344.5
U.S. tax-exempt securities | Fair Value, Measurements, Recurring | Level 2    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Marketable debt securities 290.2 344.5
U.S. taxable municipal / non-U.S. provincial bonds | Fair Value, Measurements, Recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Marketable debt securities 426.0 421.6
U.S. taxable municipal / non-U.S. provincial bonds | Fair Value, Measurements, Recurring | Level 2    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Marketable debt securities 426.0 421.6
U.S. corporate securities | Fair Value, Measurements, Recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Marketable debt securities 972.3 940.3
U.S. corporate securities | Fair Value, Measurements, Recurring | Level 2    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Marketable debt securities 972.3 940.3
U.S. government securities | Fair Value, Measurements, Recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Marketable debt securities 466.7 436.2
U.S. government securities | Fair Value, Measurements, Recurring | Level 1    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Marketable debt securities 466.7 436.2
Non-U.S. corporate securities | Fair Value, Measurements, Recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Marketable debt securities 616.7 639.7
Non-U.S. corporate securities | Fair Value, Measurements, Recurring | Level 2    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Marketable debt securities 616.7 639.7
Non-U.S. government securities | Fair Value, Measurements, Recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Marketable debt securities 218.3 213.8
Non-U.S. government securities | Fair Value, Measurements, Recurring | Level 2    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Marketable debt securities 218.3 213.8
Other debt securities | Fair Value, Measurements, Recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Marketable debt securities 219.2 207.8
Other debt securities | Fair Value, Measurements, Recurring | Level 2    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Marketable debt securities $ 219.2 $ 207.8
v3.26.1
Carrying Amount and Fair Value of Financial Services Fixed-Rate Loans and Fixed-Rate Debt (Detail) - Financial Services - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
Assets, carrying amount    
Fixed-rate loans $ 9,903.6 $ 9,928.0
Liabilities, carrying amount    
Fixed-rate debt 10,042.6 10,453.1
Assets, Fair Value    
Fixed-rate loans 9,944.8 10,118.4
Liabilities, Fair Value    
Fixed-rate debt $ 10,110.5 $ 10,570.6
v3.26.1
Components of Net Pension (Income) Expense (Detail) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]    
Service cost $ 22.4 $ 24.2
Interest on projected benefit obligation 35.6 35.8
Expected return on assets $ (65.4) $ (62.3)
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] Costs and Expenses Costs and Expenses
Amortization of prior service costs $ 0.4 $ 0.3
Recognized actuarial loss 1.1 0.7
Net pension income $ (5.9) $ (1.3)
v3.26.1
Employee Benefit Plans - Additional Information (Detail) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Defined Benefit Pension Plans    
Defined Benefit Plan Disclosure [Line Items]    
Contribution to pension plans $ 4.0 $ 6.5
v3.26.1
Commitments and Contingencies - Additional Information (Detail) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]    
Settlement charge, pre-tax $ 350.0 $ 600.0
Settlement charge, after-tax $ 264.5 $ 446.4