Capital investments were $795.8 million in 2024 compared to $698.3 million in 2023. Research and development (R&D) expenses were $452.9 million in 2024 compared to $410.9 million in 2023.

PACCAR opened its new, 240,000 square-foot Parts Distribution Center (PDC) in Massbach, Germany, in November 2024. This PDC supports DAF's growth in Germany, Europe's largest truck market, by enhancing parts delivery to dealers and customers.

PFS issued $3.65 billion in medium-term notes during 2024 to support new business volume and repay maturing debt. The global breadth of PFS and its rigorous credit application process support a portfolio of loans and leases with total assets of $22.41 billion.

Truck segment income before income taxes and pre-tax return on revenues decreased primarily due to lower truck unit deliveries in Europe and the U.S. and Canada, partially offset by higher truck unit deliveries in Mexico and South America.

Parts gross margin was 30.9% in 2024 compared to 31.9% in 2023 due to the factors noted above. Parts SG&A expense in 2024 increased to $246.4 million from $238.0 million in 2023.

PFS income before income taxes decreased to $435.6 million in 2024 from $540.3 million in 2023, primarily due to lower operating lease margins, reflecting lower results on returned lease assets, partially offset by higher finance margins from a higher asset portfolio and higher portfolio yields.

The Company's business is highly sensitive to global and national economic conditions as well as economic conditions in the industries and markets it serves. Negative economic conditions and outlook can materially weaken demand for the Company's equipment and services.

The Company has ongoing product development programs intended to address changing customer demand in the context of climate change and achieve its targeted reductions in emissions. The pace of transition from diesel combustion to alternative powertrain commercial vehicles is highly uncertain.

The Company relies on information technology systems and networks, some of which are managed by third parties, to process, transmit and store electronic information, and to manage or support a variety of its business processes and activities. If the Company's computer systems were to be damaged, disrupted or breached, it could impact data availability and integrity, result in a theft of the Company's intellectual property or lead to unauthorized disclosure of confidential information of the Company's customers, suppliers and employees.

The Company's heavy-duty truck retail market share was 30.7% in 2024 compared to 29.5% in 2023. The medium-duty market share was 18.0% in 2024 compared to 14.5% in 2023.

The over 16-tonne truck market in Europe in 2024 decreased to 316,100 units from 343,300 units in 2023, and DAF's market share was 14.4% in 2024 compared to 15.6% in 2023.

The over 16-tonne truck market in Brasil in 2024 increased to 97,700 units from 82,100 units in 2023, and DAF Brasil's market share was 9.9% in 2024 compared to 10.2% in 2023.

Truck gross margin was 13.9% in 2024 compared to 16.4% in 2023 due to the factors noted above. Truck selling, general and administrative (SG&A) expenses in 2024 decreased to $254.2 million from $278.5 million in 2023.

Parts gross margin was 30.9% in 2024 compared to 31.9% in 2023 due to the factors noted above. Parts SG&A expense in 2024 increased to $246.4 million from $238.0 million in 2023.

The Company maintains rigorous control of selling, general and administrative (SG&A) expenses and seeks to minimize such costs. The Company maintains rigorous control of SG&A expenses and seeks to minimize such costs.

Research and development (R&D) expenses were $452.9 million in 2024 compared to $410.9 million in 2023. PACCAR expects to invest $460 to $500 million in R&D in 2025.

In addition to the capital and R&D investments, the Company expects to invest another $400 to $700 million in its battery joint venture, Amplify Cell Technologies.

The Company has ongoing product development programs intended to address changing customer demand in the context of climate change and achieve its targeted reductions in emissions. These involve the continuing development of compliant clean diesel powertrains and the design, manufacture, and sale of alternative powertrain commercial vehicles (e.g., battery-electric, hybrid, hydrogen fuel cell, and hydrogen combustion).

Capital investments in 2025 are expected to be $700 to $800 million, and R&D is expected to be $460 to $500 million. PACCAR is investing in its truck factories, including expansions at Kenworth Chillicothe, Ohio, PACCAR Mexico, and the DAF truck assembly plant in Eindhoven, Netherlands.

Cash dividends declared for the last two years were as follows: 2024 - $4.17 per share; 2023 - $4.24 per share.

On December 4, 2018, PACCAR's Board of Directors approved the repurchase of up to $500.0 million of the Company's outstanding common stock. As of December 31, 2024, the Company has repurchased $110.0 million of shares under this plan.

PACCAR expects to continue to significantly invest in technologies to improve fuel efficiency for its customers, which would also reduce greenhouse gas emissions. PACCAR is currently producing battery-electric Kenworth, Peterbilt and DAF trucks.

PACCAR is committed to environmental responsibility in the vehicle production process. PACCAR is continuously looking for ways to reduce waste, reuse materials, conserve energy in its facilities and reduce the environmental impact of our activities.

The Company's operations are subject to environmental laws and regulations that impose significant compliance costs. The Company could experience higher research and development and manufacturing costs due to changes in government requirements for its products, including changes in emissions, fuel, greenhouse gas or other regulations.

Truck industry heavy-duty retail sales in the U.S. and Canada in 2025 are expected to be 250,000 to 280,000 units compared to 268,100 in 2024. In Europe, the 2025 truck industry registrations for over 16-tonne vehicles are expected to be 270,000 to 300,000 units compared to 316,100 in 2024.

In South America, heavy-duty truck industry registrations in 2025 are projected to be 115,000 to 125,000 compared to 119,000 in 2024.

Even without legislation to reduce greenhouse gas emissions, PACCAR expects to continue to significantly invest in technologies to improve fuel efficiency for its customers, which would also reduce greenhouse gas emissions.