PACCAR (PCAR) 10-K risk factor changes: FY2025 vs FY2024

Information [removed: Technology] [added: Technology, Cybersecurity] and [removed: Cybersecurity.] [added: AI.] 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.

Some of the Company’s products include telematics which provide over-the-air software updates, advanced fleet management tools and real-time data [removed: analytics] on driver and vehicle performance.

[added: Multinational Operations.] The Company’s global operations are exposed to political, economic and other risks and events beyond its control in the countries in which the Company operates.

Changes in government monetary or fiscal policies and international trade [removed: policies] [added: policies, including tariffs,] may impact demand for the Company’s products, financial results and competitive position.

These include standards imposed by the U.S. Environmental Protection Agency (EPA), the European Union, U.S. state regulatory agencies (such as the California Air Resources Board), regulatory agencies in other international markets where the Company operates, and international [removed: accords related to climate change including the Paris Agreement.][added: accords.]

The primary laws and regulations are the EPA’s Greenhouse Gas Emissions Standards and Fuel Efficiency Standards for Medium and Heavy-Duty Engines and Vehicles, EPA’s [removed: Clean Truck Initiative,] [added: Low NOx Rule,] the Regulation of the European Parliament and of the Council on the Monitoring and Reporting of CO2 Emissions from Fuel Consumption of New Heavy-Duty Vehicles, and the Heavy-Duty Omnibus [removed: Regulation and] [added: Regulation, Emergency Rulemaking and, subject to pending litigation, the] Advanced Clean Truck (ACT) regulation of the California Air Resources [removed: Board.][added: Board (CARB).]

[removed: The] [added: California's] ACT regulation, which has been adopted by several states, requires an increasing percentage of medium- and heavy-duty trucks sold into the state to be zero emission.

The Company’s product planning is aligned with these statutory and regulatory [removed: requirements, and uses a climate change scenario analysis to limit global warming to below 2°C.][added: requirements.]

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 [removed: also] [added: further] reduce greenhouse gas emissions.

litigation or activism by certain regulators, shareholders, environmental groups or other stakeholders.

The Company is deploying AI tools to reduce operational costs and enhance performance for the Company and its customers, including the use of AI in its predictive analytics technology to forecast and implement vehicle service parameters to improve vehicle uptime.

The Company's business, financial condition and result of operations may eventually be adversely affected if it fails to integrate these rapidly developing technologies in a timely, cost-effective, compliant and responsible manner.

CARB's authority to enact the ACT regulations has been revoked by the U.S. Congress and President; however, the revocation, is currently being challenged and the outcome is uncertain.

Multinational Operations.

[removed: 2024] [added: 2025] Financial Highlights

Worldwide net sales and revenues were [removed: $33.66] [added: $28.44] billion in [removed: 2024] [added: 2025] compared to [removed: $35.13] [added: $33.66] billion in [removed: 2023,] [added: 2024,] primarily due to lower truck revenues, partially offset by higher parts and financial services revenues.

Parts sales were [removed: $6.67] [added: $6.87] billion in [removed: 2024] [added: 2025] compared to [removed: $6.41] [added: $6.67] billion in [removed: 2023,] [added: 2024,] reflecting higher [removed: price realization] [added: sales] in [removed: all markets.][added: the U.S. and Canada]

Financial Services revenues were [removed: $2.10] [added: $2.21] billion in [removed: 2024] [added: 2025] compared to [removed: $1.81] [added: $2.10] billion in [removed: 2023,] [added: 2024,] primarily due to [added: higher interest income driven by retail] portfolio growth and higher portfolio yields.

In [removed: 2024,] [added: 2025,] PACCAR earned net income for the [removed: 86th] [added: 87th] consecutive year.

Net income was [removed: $4.16] [added: $2.38] billion [removed: ($7.90] [added: ($4.51] per diluted share) in [removed: 2024] [added: 2025] compared to [removed: $4.60] [added: $4.16] billion [removed: ($8.76] [added: ($7.90] per diluted share) in [removed: 2023.][added: 2024.]

Capital investments were [removed: $795.8] [added: $728.5] million in [removed: 2024] [added: 2025] compared to [removed: $698.3] [added: $795.8] million in [removed: 2023.][added: 2024.]

Research and development (R&D) expenses were [removed: $452.9] [added: $445.5] million in [removed: 2024] [added: 2025] compared to [removed: $410.9] [added: $452.9] million in [removed: 2023.][added: 2024.]

The global breadth of PFS and its rigorous credit application process support a portfolio of loans and leases with total assets of [removed: $22.41] [added: $22.80] billion.

PFS issued [removed: $3.65] [added: $3.12] billion in medium-term notes during [removed: 2024] [added: 2025] to support new business volume and [added: market share growth and] repay maturing debt.

[removed: Truck] [added: In 2025,] industry [removed: heavy-duty] retail sales in the [added: heavy-duty market in the] U.S. and Canada [removed: in 2025 are expected to be 250,000 to 280,000] [added: was 232,800] units compared to 268,100 [added: units] in 2024.

In Europe, the [removed: 2025] [added: 2026] truck industry registrations for over 16-tonne vehicles are expected to be [removed: 270,000] [added: 280,000] to [removed: 300,000] [added: 320,000] units compared to [removed: 316,100] [added: 297,000] in [removed: 2024.][added: 2025.]

In South America, heavy-duty truck industry registrations in [removed: 2025] [added: 2026] are projected to be [removed: 115,000] [added: 100,000] to [removed: 125,000] [added: 110,000] compared to [removed: 119,000] [added: 115,000] in [removed: 2024.][added: 2025.]

In [removed: 2025,] [added: 2026,] PACCAR Parts sales are expected to increase [removed: 2-4%] [added: 4-8%] compared to [removed: 2024,] [added: 2025,] depending on the economic conditions.

In [removed: 2025,] [added: 2026,] average earning assets are expected to be comparable to [removed: 2024.][added: 2025.]

If freight transportation conditions decline due to a weaker economy, then past due accounts, truck repossessions and credit losses would likely increase from the current levels and new business volume [added: and average earning assets] would likely decline.

PACCAR's excellent long-term profits, strong balance sheet and consistent focus on quality have enabled the Company to invest [removed: $8.6] [added: $9.2] billion in new and expanded facilities, innovative products and new technologies during the past decade.

Capital investments in [removed: 2025] [added: 2026] are expected to be [removed: $700] [added: $725] to [removed: $800] [added: $775] million, and R&D is expected to be [removed: $460] [added: $450] to $500 million.

In addition to the capital and R&D investments, the Company expects to [removed: invest another $400 to $700 million] [added: continue investing] in its [added: U.S.-based] battery joint venture, Amplify Cell Technologies.

[added: ##] See the Forward-Looking Statements section of Management’s Discussion and Analysis for factors that may affect these outlooks.

The Company’s results of operations for the years ended December 31, [removed: 2024] [added: 2025] and [removed: 2023] [added: 2024] are presented below.

For information on the year ended December 31, [removed: 2022,] [added: 2023,] refer to Part II, Item 7 in the [removed: 2023] [added: 2024] Annual Report on Form 10-K.

| *Year Ended December 31,* | | [removed: 2024] [added: 2025] | | | | [removed: 2023] [added: 2024] | | |

| Truck | | $ | [removed: 24,838.4] [added: 19,365.3] | | | $ | [removed: 26,846.4] [added: 24,838.4] | |

| Parts | | | [removed: 6,666.4] [added: 6,873.7] | | | | [removed: 6,414.4] [added: 6,666.4] | |

| Other | | | [removed: 59.5] [added: (3.9] | [added: )] | | | [removed: 54.7] [added: 59.5] | |

| Truck, Parts and Other | | | [removed: 31,564.3] [added: 26,235.1] | | | | [removed: 33,315.5] [added: 31,564.3] | |

| Financial Services | | | [removed: 2,099.5] [added: 2,209.7] | | | | [removed: 1,811.9] [added: 2,099.5] | |

| Truck | | $ | [removed: 2,852.6] [added: 870.8] | | | $ | [removed: 3,799.9] [added: 2,852.6] | |

| Parts | | | [removed: 1,704.5] [added: 1,668.0] | | | | [removed: 1,702.6] [added: 1,704.5] | |

| Other* | | | [removed: 13.5] [added: (346.8] | [added: )] | | | [removed: (616.8] [added: 13.5] | [removed: )] |

| Truck, Parts and Other | | | [removed: 4,570.6] [added: 2,192.0] | | | | [removed: 4,885.7] [added: 4,570.6] | |

| Financial Services | | | [removed: 435.6] [added: 485.4] | | | | [removed: 540.3] [added: 435.6] | |

| Investment income | | | [removed: 394.7] [added: 346.1] | | | | [removed: 292.2] [added: 394.7] | |

| Income taxes | | | [removed: (1,238.9] [added: (647.7] | ) | | | [removed: (1,117.4] [added: (1,238.9] | ) |

| Net income | | $ | [removed: 4,162.0] [added: 2,375.8] | | | $ | [removed: 4,600.8] [added: 4,162.0] | |

| Diluted earnings per share | | $ | [removed: 7.90] [added: 4.51] | | | $ | [removed: 8.76] [added: 7.90] | |

| After-tax return on revenues | | | [removed: 12.4] [added: 8.4] | % | | | [removed: 13.1] [added: 12.4] | % |

* In [removed: 2023,] [added: 2025,] Other includes a [removed: $600.0] [added: $350.0] million [removed: non-recurring] charge related to civil litigation in Europe (EC-related claims) in the first quarter [removed: 2023.][added: 2025.]

Factors for which the Company is unable to specifically quantify the impact include market [removed: demand,] [added: demand and impact from tariffs,] fuel prices, freight tonnage and economic conditions affecting the Company’s results of operations.

Truck sales were $19.37 billion in 2025 compared to $24.84 billion in 2024 due to lower truck deliveries in all major markets.

and Europe.

Adjusted net income (non-GAAP), excluding a $264.5 million after-tax charge related to civil litigation in Europe, was $2.64 billion ($5.01 per diluted share).

After-tax return on beginning equity (ROE) was 13.6% in 2025, which includes the $264.5 million after-tax charge related to civil litigation in Europe in the first quarter of this year.

Excluding the after-tax charge, adjusted ROE (non-GAAP) was 15.1%.

This compares to an ROE of 26.2% in 2024.

See Reconciliation of GAAP to Non-GAAP Financial Measures on page 31.

Kenworth constructed a 46,000 square-foot robotic chassis paint facility in Chillicothe, Ohio.

PACCAR also completed a new $35 million, 50,000 square-foot engine remanufacturing facility and is enhancing its existing engine factory in Columbus, Mississippi.

PACCAR is also enhancing its other engine facility in the Netherlands.

PACCAR opened a new 180,000 square-foot Parts Distribution Center (PDC) in Calgary, Canada, to enhance parts delivery to dealers and customers in the region.

Truck industry heavy-duty retail sales in the U.S. and Canada in 2026 are expected to be 230,000 to 270,000 units compared to 232,800 in 2025.

The Company's truck and parts products have been negatively affected since March 2025 by import tariffs imposed by the U.S. government and actions taken by other countries.

While the Company has taken mitigating actions to reduce the impact, the ongoing impact from import tariffs on truck order intake and profit margins remains unfavorable.

The Company's North American truck factories are optimally located to operate under the new Section 232 truck tariffs that began in November 2025.

The Company’s tariff exposure is minimized by producing trucks locally for the United States, Canada and Mexico.

The Company manufactures its trucks for U.S. customers in its Ohio, Texas, and Washington state factories.

The recent U.S. Environmental Protection Agency announcement reaffirmed the EPA27 NOx limit and could eliminate changes to extended warranty requirements and useful life requirements on new emissions systems.

The Company's results could be impacted by changes in tariff policy, including the expected U.S. Supreme Court ruling on the International Emergency Economic Power Acts (IEEPA) tariffs, emissions regulations and improving freight fundamentals.

The used truck market has been improving, which is reflected in PFS' quarterly results this year.

PACCAR is investing in next generation clean diesel and alternative powertrains, integrated connected vehicle services, flexible manufacturing capabilities and autonomous and advanced driver assistance systems that create value for customers.

The Company is embedding artificial intelligence across its business to drive innovation, profitable growth and enhanced performance for the Company's customers.

| | | $ | 28,444.8 | | | $ | 33,663.8 | |

| *Year Ended December 31,* | | | 2025 | | | | 2024 | | | % CHANGE | | |

| | | $ | 19,365.3 | | | $ | 24,838.4 | | | | (22 | ) |

| Truck sales volume | | | (5,333.6 | ) | | | (4,489.9 | ) | | | (843.7 | ) |

| Currency translation | | | 125.5 | | | | 151.3 | | | | (25.8 | ) |

| Total decrease | | | (5,473.1 | ) | | | (3,485.0 | ) | | | (1,988.1 | ) |

| 2025 | | $ | 19,365.3 | | | $ | 17,904.8 | | | $ | 1,460.5 | |

costs and factory supplies from lower truck build rates.

Truck SG&A expenses in 2025 decreased to $237.7 million from $254.2 million in 2024.

| *Year Ended December 31,* | | | 2025 | | | | 2024 | | | % CHANGE | | |

| | | $ | 6,873.7 | | | $ | 6,666.4 | | | | 3 | |

| Aftermarket parts volume | | | (143.1 | ) | | | (69.6 | ) | | | (73.5 | ) |

| Currency translation | | | 43.1 | | | | 24.1 | | | | 19.0 | |

| Total increase (decrease) | | | 207.3 | | | | 214.3 | | | | (7.0 | ) |

| 2025 | | $ | 6,873.7 | | | $ | 4,818.7 | | | $ | 2,055.0 | |

Aftermarket parts sales volume decreased by $143.1 million and related cost of sales decreased by $69.6 million.

The

decrease in parts sales and costs reflects lower sales volume, primarily Europe and Mexico.

The Company’s Other business included the manufacturing and marketing of industrial winches through October 31, 2024, when PACCAR sold its industrial winch business.

Truck sales were $24.84 billion in 2024 compared to $26.85 billion in 2023 from lower revenues in Europe and the U.S. and Canada.

After-tax return on beginning equity (ROE) was 26.2% in 2024 compared to 34.9% in 2023.

Equity increased 10.3% from $15.88 billion in 2023 to a record $17.51 billion in 2024.

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.

The used truck market has normalized in North America, but remains soft in Europe.

PACCAR is investing in its truck factories, including expansions at Kenworth Chillicothe, Ohio, PACCAR Mexico, and the DAF truck assembly plant in Eindhoven, Netherlands.

Investments in PACCAR's global engine business include additional manufacturing and remanufacturing capacity.

| | | $ | 33,663.8 | | | $ | 35,127.4 | |

In 2024, industry retail sales in the heavy-duty market in the U.S. and Canada decreased to 268,100 units from 297,000 units in 2023.

| | | $ | 24,838.4 | | | $ | 26,846.4 | | | | (7 | ) |

| 2023 | | $ | 26,846.4 | | | $ | 22,440.6 | | | $ | 4,405.8 | |

| Truck sales volume | | | (2,107.6 | ) | | | (1,650.0 | ) | | | (457.6 | ) |

| Currency translation | | | (117.5 | ) | | | (82.8 | ) | | | (34.7 | ) |

| Total decrease | | | (2,008.0 | ) | | | (1,050.8 | ) | | | (957.2 | ) |

Truck selling, general and administrative (SG&A) expenses in 2024 decreased to $254.2 million from $278.5 million in 2023.

| | | $ | 6,666.4 | | | $ | 6,414.4 | | | | 4 | |

| 2023 | | $ | 6,414.4 | | | $ | 4,369.6 | | | $ | 2,044.8 | |

| Aftermarket parts volume | | | 89.8 | | | | 81.2 | | | | 8.6 | |

| Currency translation | | | .6 | | | | (4.5 | ) | | | 5.1 | |

| Total increase | | | 252.0 | | | | 234.8 | | | | 17.2 | |

Aftermarket parts sales volume increased by $89.8 million and related cost of sales increased by $81.2 million, primarily reflecting higher sales volume in all markets except the U.S. and Canada.

| | | $ | 7,499.8 | | | $ | 7,205.3 | | | | 4 | |

| | | | 54,350 | | | | 54,400 | | | | | |

| | | $ | 19,894.7 | | | $ | 17,540.9 | | | | 13 | |

| | | $ | 2,099.5 | | | $ | 1,811.9 | | | | 16 | |

New loan and lease volume increased to a record $7.50 billion in 2024 from $7.21 billion in 2023.

The increase in equipment on operating lease volume reflected higher market demand and a higher amount financed per truck in all major markets.

| 2023 | | $ | 1,009.3 | | | $ | 500.6 | | | $ | 508.7 | |

| Yields | | | 96.7 | | | | | | | | 96.7 | |

| Total increase | | | 286.6 | | | | 210.2 | | | | 76.4 | |

| 2023 | | $ | 802.6 | | | $ | 590.7 | | | $ | 211.9 | |

| Used truck sales | | | 72.2 | | | | 74.0 | | | | (1.8 | ) |

| Total increase (decrease) | | | 1.0 | | | | 127.8 | | | | (126.8 | ) |

Financial Services SG&A expense increased to $159.0 million in 2024 from $149.0 million in 2023.

The increase was primarily due to higher salaries and related expenses and higher depreciation.

| | | 2024 | | | | | | | | 2023 | | | | | | |

| | | $ | 75.6 | | | $ | 53.5 | | | $ | 31.3 | | | $ | 23.3 | |

The higher charge-offs in 2024 also reflected higher average loss severity in all markets from lower used truck market values.

| Fair Value (Losses) Gains | | [removed: 2024] [added: 2025] | | | | [removed: 2023] [added: 2024] | | |

| Cash equivalents and marketable debt securities | | $ | [removed: (49.6] [added: (58.6] | ) | | $ | [removed: (29.2] [added: (49.6] | ) |

| Fixed rate loans | | | [removed: (157.7] [added: (179.8] | ) | | | [removed: (146.5] [added: (157.7] | ) |

| Interest-rate swaps [added: related to debt] | | | [removed: (35.1] | [removed: )] | | | [added: (35.1] | [added: )] |

| Fixed rate term debt | | | [removed: 198.9] [added: 202.3] | | | | [removed: 156.8] [added: 198.9] | |

| Interest-rate swaps [added: related to debt] | | | [added: (22.0] | [added: )] | | | [removed: 1.2] | |

| Total | | $ | [removed: (43.5] [added: (58.1] | ) | | $ | [removed: (17.7] [added: (43.5] | ) |

Based on the Company’s sensitivity analysis, the potential loss in fair value for such financial instruments from a 10% unfavorable change in quoted foreign currency exchange rates would be a loss of [removed: $126.3] [added: $96.8] related to contracts outstanding at December 31, [removed: 2024,] [added: 2025,] compared to a loss of [removed: $259.7] [added: $126.3] at December 31, [removed: 2023.][added: 2024.]

Based on the Company’s sensitivity analysis, the potential loss in fair value for such financial instruments from a 10% unfavorable change in quoted commodity prices would be [removed: nil] [added: $.9] related to contracts outstanding at December 31, [removed: 2024,] [added: 2025,] compared to a loss of [removed: $3.3] [added: nil] at December 31, [removed: 2023.][added: 2024.]

The Company also designs and manufactures diesel engines, primarily for use in the Company’s trucks, at its facilities in Columbus, Mississippi; Eindhoven, the [removed: Netherlands;] [added: Netherlands] and Ponta Grossa, Brasil.

These trucks are assembled at facilities in Chillicothe, Ohio; Denton, Texas; Renton, [removed: Washington and] [added: Washington;] Mexicali, [removed: Mexico.][added: Mexico and Ste.]

Therese, Canada; [added: Chillicothe, Ohio;] Denton, [removed: Texas,] [added: Texas] and Mexicali, Mexico.

PACCAR competes in the Australian medium and heavy truck markets with Kenworth conventional and COE models and certain DAF COE models assembled at its facility at Bayswater in the state of Victoria, Australia, and DAF COE models primarily assembled in the U.K. Commercial truck manufacturing comprises the largest segment of PACCAR’s business and accounted for [removed: 74%] [added: 68%] of total [removed: 2024] [added: 2025] net sales and revenues.

In [removed: 2024,] [added: 2025,] the Company installed PACCAR engines in approximately [removed: 33%] [added: 29%] of the Company’s Kenworth and Peterbilt [removed: heavy‑duty] [added: heavy-duty] trucks in the U.S. and Canada and substantially all of the DAF heavy-duty trucks sold throughout the world.

Sales of trucks manufactured with these cabs amounted to approximately 2% of consolidated revenues in [removed: 2024.][added: 2025.]

The Company’s share of the U.S. and Canadian Class 8 market was [removed: 30.7%] [added: 29.9%] of retail sales in [removed: 2024,] [added: 2025,] and the Company’s medium-duty market share was [removed: 18.0%.][added: 15.9%.]

In Europe, there are six principal competitors in the commercial truck market, including parent companies to the four competitors of the Company in the U.S. In [removed: 2024,] [added: 2025,] DAF had a [removed: 14.4%] [added: 13.5%] share of the European heavy-duty market and a [removed: 9.5%] [added: 9.7%] share of the light/medium-duty market.

The Company had a total production backlog of [removed: $7.6] [added: $4.9] billion at the end of [removed: 2024.][added: 2025.]

The 90‑day backlog approximated [removed: $3.8] [added: $2.6] billion at December 31, [removed: 2024, $7.6] [added: 2025, $3.8] billion at December 31, [removed: 2023] [added: 2024] and [removed: $8.0] [added: $7.6] billion at December 31, [removed: 2022.][added: 2023.]

Production of the year-end [removed: 2024] [added: 2025] backlog is expected to be substantially completed during [removed: 2025.][added: 2026.]

The Parts segment includes the distribution of aftermarket parts for trucks and related commercial vehicles to over 2,000 Kenworth, Peterbilt and DAF dealers and more than 350 TRP, PACCAR's aftermarket parts brand, stores in [removed: 95] [added: 99] countries around the world.

Aftermarket truck parts are sold and delivered to the Company’s independent dealers through the Company’s [removed: 20] [added: 21] strategically located parts distribution centers (PDCs) in the U.S., Canada, Europe, Australia, Mexico and Central and South America.

The Parts segment accounted for [removed: 20%] [added: 24%] of total [removed: 2024] [added: 2025] net sales and revenues.

PFS accounted for [removed: 6%] [added: 8%] of total net sales and revenues and [removed: 52%] [added: 51%] of total assets in [removed: 2024.][added: 2025.]

Sales of industrial winches were less than 1% of total net sales and revenues in [removed: 2024, 2023] [added: 2024] and [removed: 2022.][added: 2023.]

The Company’s operations and products are subject to extensive statutory and regulatory requirements governing greenhouse [removed: gas and] [added: gas,] non-greenhouse gas [removed: emissions.][added: emissions and batteries.]

The primary laws and regulations are the EPA’s Greenhouse Gas Emissions Standards and Fuel Efficiency Standards for Medium and Heavy-Duty Engines and Vehicles, EPA’s [removed: Clean Truck Initiative,] [added: Low NOx Rule,] the Regulation of the European Parliament and of the Council on the Monitoring and Reporting of CO2 Emissions from Fuel Consumption of New Heavy-Duty Vehicles, and the Heavy-Duty Omnibus Regulation [removed: and] [added: and, subject to pending litigation, the] Advanced Clean Truck (ACT) regulation of the California Air Resources Board.

The Company will continue to fund capital and [removed: R&D] [added: research and development (R&D)] projects to meet future emissions and certification requirements through the introduction of new technologies into our products, engines and exhaust after-treatment systems.

PACCAR is committed to a [removed: strong, inclusive] [added: strong] and collaborative culture and the Company’s excellent financial results reflect its outstanding workforce.

The Company provides its employees with robust benefit packages, comprehensive training programs, tuition assistance and a work environment that promotes [removed: safety, respect] [added: safety] and [removed: belonging.][added: respect.]

On December 31, [removed: 2024,] [added: 2025,] the Company had approximately [removed: 30,100] [added: 25,900] employees.

Approximately [removed: 38%] [added: 40%] were U.S. employees.

The Company invests in technologies that reduce greenhouse gas emissions such as highly fuel-efficient diesel engines, [removed: natural gas and] biofuel engines, as well as next generation [removed: electric, hybrid,] [added: electric] and [removed: hydrogen powertrains.][added: hybrid powertrains and battery cell and pack technology.]

PACCAR’s Zero Emissions Trucks \- PACCAR’s research and development efforts include demonstration and development projects for Kenworth, Peterbilt and DAF vehicles, including battery-electric, hydrogen [removed: fuel cell, hydrogen] combustion and hybrid technologies.

Low Carbon and Renewable Fuels [removed: –] [added: \-] All truck sales and diesel engine unit sales are certified to use biofuels.

PACCAR’s MX-13 and MX-11 engines are certified to use [removed: B10/B20/B30] [added: B7] and [removed: XTL] [added: B100] biofuels in Europe and B20 biofuel in the U.S. Engines used in PACCAR trucks not manufactured by the Company are certified to use up to B20 biofuels.

[added: Advanced Vehicles \- PACCAR continued its work on the] SuperTruck 3 [removed: is] [added: program,] a U.S. Department of Energy (DOE) initiative to develop state-of-the-art zero emissions medium- and heavy-duty [removed: trucks.][added: trucks, until the cancellation of the program in 2025.]

PACCAR is investing in additional global engine manufacturing capacity, and [removed: in the construction of] [added: has constructed] a new engine remanufacturing facility in Columbus, Mississippi.

Therese, Canada.

The Company is also embedding artificial intelligence (AI) across its business to drive innovation, profitable growth and enhanced performance for PACCAR’s customers.

The SuperTruck initiative, launched in 2009, has driven significant advancements in heavy-duty truck freight efficiency, and Kenworth and Peterbilt have successfully deployed many of those technologies in production.

PACCAR continues to independently advance key battery-electric vehicle technologies and drive towards their implementation.

Along with our joint venture partners, the Company is reviewing the timing of investments as a result of changing market-adoption projections.

PACCAR's Other business included the manufacturing and marketing of industrial winches through October 31, 2024, when PACCAR sold 100% of the capital stock of PACCAR Winch Inc.

The ACT regulation, which has been adopted by several other states, requires an increasing percentage of medium- and heavy-duty trucks sold into the state to be zero emissions.

The Company’s benefit packages support employee physical, emotional and financial well-being.

Employee satisfaction and engagement are measured through periodic surveys.

Employee training and development programs are extensive and comprehensive, including professional and technical skills training, compliance training, leadership development and management training.

The Company is proud to have been honored for the past several years as a *Top Company for Women to Work for in Transportation* by the Women in Trucking Association.

PACCAR has a proud tradition of making grants around the world for education, social services and the arts to enrich the communities in which its employees live and work.

Safety is a key priority and the Company’s major manufacturing facilities are equipped with safety and health departments staffed with trained medical personnel.

The Company’s managers continuously address safety enhancements; provide regular and ongoing safety training; and use displays located in the Factories, Parts Distribution Centers and Offices to provide all employees with safety-related information.

PACCAR’s consistent focus on workplace safety has resulted in a recordable injury rate lower than the U.S. industry average.

Advanced Vehicles \- PACCAR continued its SuperTruck 3 program to develop and deploy next generation Class 8 Kenworth and Peterbilt battery-electric vehicles, along with its vehicle charging infrastructure.

The SuperTruck initiative was launched in 2009 by the DOE to improve heavy-duty truck freight efficiency.

Kenworth and Peterbilt successfully developed state-of-the-art vehicles in the prior SuperTruck and SuperTruck 2 programs.

Many of the technologies developed in the earlier SuperTruck programs were deployed in production vehicles, benefiting the environment and PACCAR’s customers.

The factory is expected to start production in the next few years.

For the fiscal year ended December 31, [removed: 2024][added: 2025]

As of June 30, [removed: 2024,] [added: 2025,] the aggregate market value of the voting stock held by non-affiliates of the registrant was [removed: $53.00] [added: $49.01] billion.

As of January 31, [removed: 2025,] [added: 2026,] there were [removed: 524,802,603] [added: 525,894,443] shares of common stock, $1 par value, of the registrant outstanding.

Portions of the proxy statement for the annual stockholders meeting to be held on April [removed: 29, 2025] [added: 28, 2026] are incorporated by reference into Part III of this Form 10-K.

| ITEM 1A. | [RISK FACTORS](#item_1a_risk_factors) | [removed: 11] [added: 10] |

| ITEM 1C. | [CYBERSECURITY](#item_1c_cybersecurity) | [removed: 14] [added: 13] |

| ITEM 2. | [PROPERTIES](#item_2_properties) | [removed: 14] [added: 13] |

| ITEM 3. | [LEGAL PROCEEDINGS](#item_3_legal_proceedings) | [removed: 14] [added: 13] |

| ITEM 4. | [MINE SAFETY DISCLOSURES](#item_4_mine_safety_disclosures) | [removed: 14] [added: 13] |

| [PART II](#part_ii) | | [removed: 15] [added: 14] |

| ITEM 5. | [MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES](#item_5_market_for_registrants_common_equ) | [removed: 15] [added: 14] |

| ITEM 6. | [\[RESERVED\]](#item_6_reserved) | [removed: 17] [added: 16] |

| ITEM 7. | [MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#item_7_managements_discussion_analysis_f) | [removed: 18] [added: 17] |

| ITEM 9. | [CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE](#item_9_changes_in_disagreements_with_acc) | [removed: 83] [added: 82] |

| ITEM 9A. | [CONTROLS AND PROCEDURES](#item_9a_controls_procedures) | [removed: 83] [added: 82] |

| ITEM 9B. | [OTHER INFORMATION](#item_9b_or_information) | [removed: 83] [added: 82] |

| ITEM 9C. | [DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS](#item_9c_disclosure_regarding_foreign) | [removed: 83] [added: 82] |

| [PART III](#part_iii) | | [removed: 84] [added: 83] |

| ITEM 10. | [DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE](#item_10_directors_executive_ficers_corpo) | [removed: 84] [added: 83] |

| ITEM 11. | [EXECUTIVE COMPENSATION](#item_11_executive_compensation) | [removed: 84] [added: 83] |

| ITEM 12. | [SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS](#item_12_security_ownership_certain_benef) | [removed: 85] [added: 84] |

| ITEM 13. | [CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE](#item_13_certain_relationships_related_tr) | [removed: 85] [added: 84] |

| ITEM 14. | [PRINCIPAL ACCOUNTING FEES AND SERVICES](#item_14_principal_accounting_fees_servic) | [removed: 85] [added: 84] |

| [PART IV](#part_iv) | | [removed: 86] [added: 85] |

| ITEM 15. | [EXHIBITS, FINANCIAL STATEMENT SCHEDULES](#item_15_exhibits_financial_statement_sch) | [removed: 86] [added: 85] |

| [SIGNATURES](#signatures) | | [removed: 89] [added: 88] |

Information about the Company’s Executive Officers as of February [removed: 19, 2025] [added: 18, 2026] is as follows:

| Mark C. Pigott [removed: (71)] [added: (72)] | | Executive Chairman of the Board of Directors since April 2014; Chairman and Chief Executive Officer from 1997 to April 2014. Mr. Pigott is the brother of John M. Pigott, a director of the Company. |

| R. Preston Feight [removed: (57)] [added: (58)] | | Chief Executive Officer since July 2019. |

| Kevin D. Baney [removed: (54)] [added: (55)] | | [added: President since January 2026;] Executive Vice President [removed: since] [added: from] January [added: 2025 to December] 2025; Senior Vice President from January 2024 to December 2024; Vice President of PACCAR and General Manager of Kenworth Truck Company from August 2019 to December 2023. |

| C. Michael Dozier [removed: (59)] [added: (60)] | | Executive Vice President since January 2023; Senior Vice President from January 2020 to December 2022. |

| Laura J. Bloch [removed: (48)] [added: (49)] | | Senior Vice President since January 2025; Vice President of PACCAR and General Manager of PACCAR Parts from March 2022 to December 2024; Senior Assistant General Manager of Sales and Marketing, PACCAR Parts from August 2021 to February 2022; Assistant General Manager of Sales and Marketing, Kenworth from February 2019 to July 2021. |

| John N. Rich [removed: (56)] [added: (57)] | | [removed: Senior] [added: Executive] Vice President and Chief Technology Officer since January [removed: 2024;] [added: 2026; Senior] Vice President and Chief Technology Officer from [added: January 2024 to December 2025; Vice President and Chief Technology Officer from] March 2021 to December 2023; Prior to that, he worked for 30 years at Ford Motor Company in positions of increasing responsibility including Director of Autonomous Vehicles and Technology; Chief Operating Officer of AV LLC and Executive Director of Global Strategy. |

| Paulo H. Bolgar [removed: (56)] [added: (57)] | | Vice President and Chief Human Resources Officer since June 2022; Served as Human Resources Vice President of Americas and Global Business Units and Global R&D for Baxter International, Inc. from January 2020 to May 2022. |

| Craig R. Gryniewicz [removed: (57)] [added: (58)] | | Vice President, Global Financial Services since February 2025; Vice President of PACCAR and President of PACCAR Financial Corp. from February 2019 to January 2024. |

| A. Lily Ley [removed: (59)] [added: (60)] | | Vice President and Chief Information Officer since January 2017. |

| Jacob J. Montero [removed: (41)] [added: (42)] | | Vice President of PACCAR and General Manager of Peterbilt since January 2025; Assistant General Manager of Sales and Marketing, Peterbilt from July 2023 to December 2024; General Sales Manager, Peterbilt from August 2019 to June 2023. |

| Brice J. Poplawski [removed: (60)] [added: (61)] | | [added: Senior] Vice President and [removed: Controller] [added: Chief Financial Officer] since [added: June 2025; Vice President and Controller from] May [removed: 2023;] [added: 2023 to June 2025;] Senior Operations Controller from July 2020 to April [removed: 2023; Corporate Operations Controller from January 2007 to June 2020.] [added: 2023.] |

| Harald P. Seidel [removed: (57)] [added: (58)] | | Vice President of PACCAR and President of DAF Trucks N.V. since August 2022; Director of Finance of DAF Trucks N.V. from October 2017 to July 2022. |

| Bryan M. Sitko [removed: (48)] [added: (49)] | | Vice President and General Manager of PACCAR Parts since January 2025; Assistant General Manager of Operations, Kenworth from June 2022 to December 2024; Assistant General Manager of Sales and Marketing, PACCAR Financial Corp from January 2019 to May 2022. |

| James W. Walenczak [removed: (50)] [added: (51)] | | Vice President of PACCAR and General Manager of Kenworth since January 2024; Assistant General Manager – Sales and Marketing, Kenworth from August 2021 to December 2023; Assistant General Manager – Operations, PACCAR Parts from February 2019 to July 2021. |

| Michael K. Walton [removed: (60)] [added: (61)] | | Vice President and General Counsel since August [removed: 2020; Senior Counsel from August 2007 to July] 2020. |

| Harry M.B. Wolters [removed: (54)] [added: (55)] | | Vice President of PACCAR and General Manager Global Powertrain & Electrification since August 2022; Vice President of PACCAR and President of DAF Trucks N.V. from September 2018 to July 2022. |

| | | |

| Harrie C.A.M. Schippers (62) | | President and Chief Financial Officer since January 2018. |

| Darrin C. Siver (58) | | Executive Vice President since January 2023; Senior Vice President from January 2017 to December 2022. |

[removed: Certain] [added: Some] dealers and suppliers have reported they have experienced cyberattacks and those have not caused any material impact to the Company.

The Company also has [removed: 20] [added: 21] parts distribution centers, many sales and service offices, and finance and administrative offices which are operated in owned or leased premises in these and other locations, including [removed: a service] [added: an] office in India.

| Parts | | | 7 | | | | [removed: 2] [added: 3] | | | | 2 | | | | 1 | | | | 5 | | | | 3 | |

There were [removed: 1,392] [added: 1,320] record holders of the common stock at December 31, [removed: 2024.][added: 2025.]

The following table provides information as of December 31, [removed: 2024] [added: 2025] regarding compensation plans under which PACCAR equity securities are authorized for issuance.

Securities to be issued include [removed: 682,514] [added: 314,814] shares that represent deferred cash awards payable in stock.

Securities available for future grant are authorized under the following two plans: (i) [removed: 13,321,465] [added: 12,752,820] shares under the LTI Plan, and (ii) [removed: 925,589] [added: 911,997] shares under the RSDC Plan.

*Stockholder Return Performance [removed: Graph.*][added: Graph*]

The following line graph compares the yearly percentage change in the cumulative total stockholder return on the Company’s common stock, to the cumulative total return of the Standard & Poor’s Composite 500 Stock Index and the return of the industry peer group of companies identified below (the “Peer Group Index”) for the last five fiscal years ended December 31, [removed: 2024.][added: 2025.]

The Peer Group Index includes AGCO Corporation, Caterpillar Inc., Cummins Inc., Daimler Truck Holdings AG (effective January 1, 2022), Deere & Company, Eaton Corporation, Iveco Group N.V. (effective January 1, 2022), Oshkosh Corporation, [added: Terex Corporation,] TRATON SE [removed: (effective January 1, 2021), Navistar International Corporation (from 2019 through 2020), Terex Corporation] and AB Volvo.

The comparison assumes that $100 was invested December 31, [removed: 2019,] [added: 2020,] in the Company’s common stock and in the stated indices and assumes reinvestment of dividends.

[removed: ][added: ]

| | | [removed: 2019 | | | |] 2020 | | | | 2021 | | | | 2022 | | | | 2023 | | | | 2024 | | | [added: | 2025 | | |]

As of December 31, [removed: 2024,] [added: 2025,] the Company has repurchased [removed: $110.0] [added: $128.4] million of shares under this plan.

There were no repurchases made during the fourth quarter of [removed: 2024.][added: 2025.]

| Stock compensation plans approved by stockholders | | | 3,808,472 | | | $ | 78.71 | | | | 13,664,817 | |

| PACCAR Inc | | | 100 | | | | 105.63 | | | | 123.58 | | | | 191.56 | | | | 212.27 | | | | 229.33 | |

| S&P 500 Index | | | 100 | | | | 128.71 | | | | 105.40 | | | | 133.10 | | | | 166.40 | | | | 196.16 | |

| Peer Group Index | | | 100 | | | | 121.88 | | | | 132.86 | | | | 160.50 | | | | 195.23 | | | | 248.17 | |

| Stock compensation plans approved by stockholders | | | 4,564,123 | | | $ | 68.77 | | | | 14,247,054 | |

| PACCAR Inc | | | 100 | | | | 111.74 | | | | 118.03 | | | | 138.09 | | | | 214.05 | | | | 237.19 | |

| S&P 500 Index | | | 100 | | | | 118.40 | | | | 152.39 | | | | 124.79 | | | | 157.59 | | | | 197.02 | |

| Peer Group Index | | | 100 | | | | 133.64 | | | | 162.88 | | | | 177.56 | | | | 214.49 | | | | 260.91 | |

| *Year Ended December 31,* | | [removed: 2024] [added: 2025] | | | | [removed: 2023] [added: 2024] | | | | [removed: 2022] [added: 2023] | | |

| Net sales and revenues | | $ | [removed: 31,564.3] [added: 26,235.1] | | | $ | [removed: 33,315.5] [added: 31,564.3] | | | $ | [removed: 27,314.3] [added: 33,315.5] | |

| Cost of sales and revenues | | | [removed: 26,069.6] [added: 22,736.7] | | | | [removed: 26,894.2] [added: 26,069.6] | | | | [removed: 23,291.0] [added: 26,894.2] | |

| Research and development | | | [removed: 452.9] [added: 445.5] | | | | [removed: 410.9] [added: 452.9] | | | | [removed: 341.2] [added: 410.9] | |

| Selling, general and administrative | | | [removed: 585.0] [added: 576.6] | | | | [removed: 604.3] [added: 585.0] | | | | [removed: 592.4] [added: 604.3] | |

| Interest and other [removed: (income) expenses,] [added: expenses (income),] net | | | [removed: (113.8] [added: 284.3] | [removed: )] | | | [removed: 520.4] [added: (113.8] | [added: )] | | | [removed: (109.1] [added: 520.4] | [removed: )] |

| | | | [removed: 26,993.7] [added: 24,043.1] | | | | [removed: 28,429.8] [added: 26,993.7] | | | | [removed: 24,115.5] [added: 28,429.8] | |

| *Truck, Parts and Other Income Before Income Taxes* | | | [removed: 4,570.6] [added: 2,192.0] | | | | [removed: 4,885.7] [added: 4,570.6] | | | | [removed: 3,198.8] [added: 4,885.7] | |

| Interest and fees | | | [removed: 1,295.9] [added: 1,428.7] | | | | [removed: 1,009.3] [added: 1,295.9] | | | | [removed: 628.7] [added: 1,009.3] | |

| Operating lease, rental and other revenues | | | [removed: 803.6] [added: 781.0] | | | | [removed: 802.6] [added: 803.6] | | | | [removed: 876.7] [added: 802.6] | |

| Revenues | | | [removed: 2,099.5] [added: 2,209.7] | | | | [removed: 1,811.9] [added: 2,099.5] | | | | [removed: 1,505.4] [added: 1,811.9] | |

| Interest and other borrowing expenses | | | [removed: 710.8] [added: 783.0] | | | | [removed: 500.6] [added: 710.8] | | | | [removed: 216.3] [added: 500.6] | |

| Depreciation and other expenses | | | [removed: 718.5] [added: 657.6] | | | | [removed: 590.7] [added: 718.5] | | | | [removed: 560.8] [added: 590.7] | |

| Selling, general and administrative | | | [removed: 159.0] [added: 159.2] | | | | [removed: 149.0] [added: 159.0] | | | | [removed: 133.9] [added: 149.0] | |

| Provision for losses on receivables | | | [removed: 75.6] [added: 124.5] | | | | [removed: 31.3] [added: 75.6] | | | | [removed: 5.5] [added: 31.3] | |

| | | | [removed: 1,663.9] [added: 1,724.3] | | | | [removed: 1,271.6] [added: 1,663.9] | | | | [removed: 916.5] [added: 1,271.6] | |

| *Financial Services Income Before Income Taxes* | | | [removed: 435.6] [added: 485.4] | | | | [removed: 540.3] [added: 435.6] | | | | [removed: 588.9] [added: 540.3] | |

| Investment income | | | [removed: 394.7] [added: 346.1] | | | | [removed: 292.2] [added: 394.7] | | | | [removed: 61.0] [added: 292.2] | |

| *Total Income Before Income Taxes* | | | [removed: 5,400.9] [added: 3,023.5] | | | | [removed: 5,718.2] [added: 5,400.9] | | | | [removed: 3,848.7] [added: 5,718.2] | |

| Income taxes | | | [removed: 1,238.9] [added: 647.7] | | | | [removed: 1,117.4] [added: 1,238.9] | | | | [removed: 837.1] [added: 1,117.4] | |

| *Net Income* | | $ | [removed: 4,162.0] [added: 2,375.8] | | | $ | [removed: 4,600.8] [added: 4,162.0] | | | $ | [removed: 3,011.6] [added: 4,600.8] | |

| Basic | | $ | [removed: 7.92] [added: 4.52] | | | $ | [removed: 8.78] [added: 7.92] | | | $ | [removed: 5.76] [added: 8.78] | |

| Diluted | | $ | [removed: 7.90] [added: 4.51] | | | $ | [removed: 8.76] [added: 7.90] | | | $ | [removed: 5.75] [added: 8.76] | |

| Basic | | | [removed: 525.3] [added: 525.9] | | | | [removed: 523.9] [added: 525.3] | | | | [removed: 522.6] [added: 523.9] | |

| Diluted | | | [removed: 526.6] [added: 526.8] | | | | [removed: 525.0] [added: 526.6] | | | | [removed: 523.4] [added: 525.0] | |

| *Year Ended December 31,* | | | [removed: 2024] [added: 2025] | | | | [removed: 2023] [added: 2024] | | | | [removed: 2022] [added: 2023] | |

| Net income | | $ | [removed: 4,162.0] [added: 2,375.8] | | | $ | [removed: 4,600.8] [added: 4,162.0] | | | $ | [removed: 3,011.6] [added: 4,600.8] | |

| Unrealized [removed: gains] (losses) [added: gains] on derivative contracts | | | | | | | | | | | | |

| Net [removed: gain] (loss) [added: gain] arising during the period | | | [removed: 261.1] [added: (214.7] | [added: )] | | | [removed: (174.9] [added: 261.1] | [removed: )] | | | [removed: 17.7] [added: (174.9] | [added: )] |

| Tax effect | | | [removed: (56.9] [added: 45.9] | [removed: )] | | | [removed: 37.0] [added: (56.9] | [added: )] | | | [removed: (9.1] [added: 37.0] | [removed: )] |

| Reclassification adjustment | | | [removed: (200.2] [added: 175.6] | [removed: )] | | | [removed: 111.8] [added: (200.2] | [added: )] | | | [removed: 48.0] [added: 111.8] | |

| Tax effect | | | [removed: 39.5] [added: (35.9] | [added: )] | | | [removed: (20.0] [added: 39.5] | [removed: )] | | | [removed: (8.0] [added: (20.0] | ) |

| | | | [removed: 43.5] [added: (29.1] | [added: )] | | | [removed: (46.1] [added: 43.5] | [removed: )] | | | [removed: 48.6] [added: (46.1] | [added: )] |

| Unrealized [removed: gains (losses)] [added: losses (gains)] on marketable debt [removed: securities] [added: securities:] | | | | | | | | | | | | | [added: | |]

| Net holding gain [removed: (loss)] | | | [removed: 20.6] [added: 25.5] | | | | [removed: 43.2] [added: 20.6] | | | | [removed: (54.9] [added: 43.2] | [removed: )] |

| Tax effect | | | [removed: (5.1] [added: (6.3] | ) | | | [removed: (10.8] [added: (5.1] | ) | | | [removed: 13.6] [added: (10.8] | [added: )] |

| Reclassification adjustment | | | [removed: (3.0] [added: 1.0] | [removed: )] | | | [removed: (3.6] [added: (3.0] | ) | | | [removed: (1.6] [added: (3.6] | ) |

| Tax effect | | | [removed: .7] [added: (.3] | [added: )] | | | [removed: .9] [added: .7] | | | | [removed: .4] [added: .9] | |

| | | | [removed: 13.2] [added: 19.9] | | | | [removed: 29.7] [added: 13.2] | | | | [removed: (42.5] [added: 29.7] | [removed: )] |

| Net gain (loss) arising during the period | | | [removed: 230.3] [added: 272.7] | | | | [removed: (5.8] [added: 230.3] | [removed: )] | | | [removed: 170.5] [added: (5.8] | [added: )] |

| | | | 211.2 | | | | 180.0 | | | | .6 | |

| | | $ | 44,336.2 | | | $ | 43,418.9 | |

| Other liabilities | | | 2,278.8 | | | | 1,954.3 | |

| | | $ | 44,336.2 | | | $ | 43,418.9 | |

| Other assets, net | | | 429.2 | | | | 518.5 | | | | 508.9 | |

| Treasury stock retirement | | | (.4 | ) | | | | | | | | |

| Net income | | | 2,375.8 | | | | 4,162.0 | | | | 4,600.8 | |

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.

*December 31, 2025, 2024 and 2023 (currencies in millions)*

| | | $ | 278.3 | | | $ | 290.2 | | | $ | 252.6 | | | $ | 266.4 | |

| | | $ | 97.0 | | | $ | 239.6 | | | $ | 101.7 | | | $ | 244.4 | |

*December 31, 2025, 2024 and 2023 (currencies in millions)*

*December 31, 2025, 2024 and 2023 (currencies in millions)*

*December 31, 2025, 2024 and 2023 (currencies in millions)*

*December 31, 2025, 2024 and 2023 (currencies in millions)*

*December 31, 2025, 2024 and 2023 (currencies in millions)*

In November 2025, the FASB issued ASU 2025-09, *Derivatives and Hedging (Topic 815): Hedge Accounting Improvements.* The amendments in this ASU clarify certain aspects of the guidance on hedge accounting and address several incremental hedge accounting issues arising from the global reference rate reform initiative.

The Company is currently evaluating the impact of this update on the Company's consolidated financial statements.

The additional disclosures resulting from the implementation of this ASU are reflected in Note N, Income Taxes, on a retrospective basis.

| 2023-09 | | *Income Taxes (Topic 740): Improvements to Income Tax Disclosures* | |

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 |

| 2025-05* | | *Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets* | January 1, 2026 |

| 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.

*December 31, 2025, 2024 and 2023 (currencies in millions)*

| U.S. corporate securities | | | 931.7 | | | | 8.7 | | | | .1 | | | | 940.3 | |

| U.S. government securities | | | 433.9 | | | | 2.5 | | | | .2 | | | | 436.2 | |

| Total marketable securities | | $ | 3,188.3 | | | $ | 27.3 | | | $ | 7.9 | | | $ | 3,207.7 | |

*December 31, 2025, 2024 and 2023 (currencies in millions)*

| *At December 31,* | | 2025 | | | | | | | | 2024 | | | | | | |

| | | $ | 3,178.3 | | | $ | 3,203.9 | |

| *At December 31,* | | 2025 | | | | 2024 | | |

| | | $ | 2,187.5 | | | $ | 2,367.1 | |

*December 31, 2025, 2024 and 2023 (currencies in millions)*

| | | | | | | | | | | | | |

| | | | 180.0 | | | | .6 | | | | 158.9 | |

| Equipment on operating leases, net | | | 1,891.4 | | | | 2,175.4 | |

| Other liabilities | | | 1,874.0 | | | | 2,121.9 | |

| Equipment on operating leases and other | | | 518.5 | | | | 508.9 | | | | 458.0 | |

| Residual value guarantees and deferred revenues | | | (.8 | ) | | | (36.8 | ) | | | (44.3 | ) |

| 50% stock dividend | | | | | | | | | | | 174.0 | |

| 50% stock dividend | | | | | | | | | | | (174.0 | ) |

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

| | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | $ | 252.6 | | | $ | 266.4 | | | $ | 334.0 | | | $ | 345.9 | |

| | | $ | 101.7 | | | $ | 244.4 | | | $ | 86.8 | | | $ | 216.3 | |

On December 6, 2022, the Board of Directors declared a 50% common stock dividend paid on February 7, 2023, to stockholders of record on January 17, 2023, with fractional shares paid in cash.

This resulted in the issuance of 174,035,361 additional shares and 411 fractional shares paid in cash.

For 2022, net income per share, weighted average number of common shares outstanding and cash dividends declared per share on common stock have been restated for the effect of the 50% dividend.

New Accounting Pronouncements: In December 2023, the FASB issued ASU 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures.* The amendments in this ASU require entities to disclose certain, specific categories within the rate reconciliation and enhance disclosures regarding income taxes paid and income tax expense.

Early adoption is permitted.

The implementation of this ASU will result in additional disclosures and will not have an impact on the Company’s consolidated financial statements.

| 2022-03 | | *Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to* *Contractual Sale Restrictions* | |

| 2023-07 | | *Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures* | |

| U.S. corporate securities | | | 357.1 | | | | 1.4 | | | | 5.2 | | | | 353.3 | |

| Total marketable securities | | $ | 1,846.9 | | | $ | 8.1 | | | $ | 32.4 | | | $ | 1,822.6 | |

| | | $ | 2,773.5 | | | $ | 2,772.5 | |

| | | $ | 2,367.1 | | | $ | 2,576.7 | |

| | | | 19,459.5 | | | | 17,704.7 | |

| | | $ | 19,314.3 | | | $ | 17,571.7 | |

Included in Finance and other receivables, net on the Consolidated Balance Sheets is accrued interest receivable (net of allowance for credit losses) of $66.4 and $67.6 as of December 31, 2024 and December 31, 2023, respectively.

Dealer wholesale financing increased $796.3 to $4,944.1 at December 31, 2024, mainly due to new dealer groups added in the U.S. and Canada during the year.

| 2025 | | $ | 3,081.8 | |

| 2026 | | | 2,320.7 | |

| 2027 | | | 1,895.1 | |

| 2028 | | | 1,284.4 | |

| 2029 | | | 671.6 | |

| Thereafter | | | 188.8 | |

| | | $ | 9,442.4 | |

| 2025 | | $ | 1,699.7 | |

| 2026 | | | 1,334.6 | |

| 2027 | | | 1,042.3 | |

| 2028 | | | 706.7 | |

Management’s Report on Internal Control over Financial Reporting on page [removed: 80] [added: 79] and Report of Independent Registered Public Accounting Firm on the Company’s internal control over financial reporting on page [removed: 82] [added: 81] for the year ended December 31, [removed: 2024,] [added: 2025,] are included in this Form 10-K.

There have been no changes in the Company’s internal controls over financial reporting during the fourth quarter of [removed: 2024] [added: 2025] that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

None of the Company’s directors or officers adopted, modified or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the Company’s [removed: year-ended] [added: year ended] December 31, [removed: 2024,] [added: 2025,] as such terms are defined under Item 408(a) of Regulation S-K.

The following information is included in the proxy statement for the annual stockholders meeting of April [removed: 29, 2025] [added: 28, 2026] and is incorporated herein by reference:

The information required by this item is included in the proxy statement for the annual stockholders meeting of April [removed: 29, 2025] [added: 28, 2026] and is incorporated herein by reference.

The Company [removed: has adopted] [added: maintains] insider trading policies and procedures governing the purchase and sale of the Company’s securities by directors, officers and employees that are reasonably designed to promote compliance with applicable insider trading laws, rules and regulations and Nasdaq listing standards.

The Company’s insider trading policies and procedures are [removed: filed] [added: included] as Exhibit 19 [removed: to] [added: of] this Form 10-K.

The following information is included in the proxy statement for the annual stockholders meeting of April 28, 2026 and is incorporated herein by reference:

The following information is included in the proxy statement for the annual stockholders meeting of April [removed: 29, 2025] [added: 28, 2026] and is incorporated herein by reference:

Stock ownership information is included under the captions “STOCK OWNERSHIP OF CERTAIN BENEFICIAL OWNERS” and “STOCK OWNERSHIP OF DIRECTORS AND EXECUTIVE OFFICERS” in the proxy statement for the annual stockholders meeting of April [removed: 29, 2025] [added: 28, 2026] and is incorporated herein by reference.

No transactions with management and others as defined by Item 404 of Regulation S‑K occurred in [removed: 2024.][added: 2025.]

Information concerning director independence is included under the caption “BOARD GOVERNANCE” in the proxy statement for the annual stockholders meeting of April [removed: 29, 2025] [added: 28, 2026] and is incorporated herein by reference.

Principal accounting fees and services information is included under the caption “INDEPENDENT AUDITORS” in the proxy statement for the annual stockholders meeting of April [removed: 29, 2025] [added: 28, 2026] and is incorporated herein by reference.

— Years Ended December 31, [removed: 2024, 2023] [added: 2025, 2024] and [removed: 2022][added: 2023]

— December 31, [added: 2025,] 2024 and 2023

— [added: Years Ended] December 31, [removed: 2024, 2023] [added: 2025, 2024] and [removed: 2022][added: 2023]

| | | (f) | | [Terms and Conditions of the Notes applicable to the €2,500,000,000 Medium Term Note Programme of PACCAR Financial Europe B.V. set forth in the Information Memorandum dated July [removed: 15, 2021](https://www.sec.gov/Archives/edgar/data/75362/000156459021039777/pcar-ex4g_63.htm)] [added: 13, 2022](https://www.sec.gov/Archives/edgar/data/75362/000156459022027473/pcar-ex4h_303.htm)] | | 10-Q | | | August 2, [removed: 2021] [added: 2022] | | [removed: 4(g)] [added: 4(h)] | | 001-14817 |

| | | [removed: (g)] [added: (h)] | | [Terms and Conditions of the Notes applicable to the €2,500,000,000 Medium Term Note Programme of PACCAR Financial Europe B.V. set forth in the Information Memorandum dated July [removed: 13, 2022](https://www.sec.gov/Archives/edgar/data/75362/000156459022027473/pcar-ex4h_303.htm)] [added: 17, 2024](https://www.sec.gov/Archives/edgar/data/75362/000095017024118960/pcar-ex4_h.htm)] | | 10-Q | | | [removed: August 2, 2022] [added: October 30, 2024] | | 4(h) | | 001-14817 |

| | | [removed: (h)] [added: (g)] | | [Terms and Conditions of the Notes applicable to the €2,500,000,000 Medium Term Note Programme of PACCAR Financial Europe B.V. set forth in the Information Memorandum dated September 20, 2023](https://www.sec.gov/Archives/edgar/data/75362/000095017023058179/pcar-ex4_g.htm) | | 10-Q | | | November 2, 2023 | | 4(g) | | 001-14817 |

| | | (i) | | [Terms and Conditions of the Notes applicable to the €2,500,000,000 Medium Term Note Programme of PACCAR Financial Europe B.V. set forth in the Information Memorandum dated [removed: July 17, 2024](https://www.sec.gov/Archives/edgar/data/75362/000095017024118960/pcar-ex4_h.htm)] [added: May 8, 2025](https://www.sec.gov/Archives/edgar/data/75362/000095017025100887/pcar-ex4_j.htm)] | | 10-Q | | | [removed: October 30, 2024] [added: July 31, 2025] | | [removed: 4(h)] [added: 4(j)] | | 001-14817 |

| | | (f) | | [PACCAR Inc Senior Executive Yearly Incentive Compensation [removed: Plan](https://www.sec.gov/Archives/edgar/data/75362/000156459020005276/pcar-ex10g_464.htm)] [added: Plan](https://www.sec.gov/Archives/edgar/data/75362/000119312526057025/pcar-ex10_f.htm)*] | | [removed: 10-K] | [removed: February 19, 2020] | | [removed: 10(g)] | | [removed: 001-14817] | | |

| | | [removed: (g)] [added: (h)] | | [PACCAR Inc Long Term Incentive [removed: Plan](https://www.sec.gov/Archives/edgar/data/75362/000156459023002203/pcar-ex10h_925.htm)] [added: Plan, Form of Stock Option Agreement](https://www.sec.gov/Archives/edgar/data/75362/000095017025023145/pcar-ex10_h.htm)] | | 10-K | February [removed: 22, 2023] [added: 19, 2025] | | 10(h) | | 001-14817 | | |

| | | [removed: (h)] [added: (i)] | | [PACCAR Inc Long Term Incentive Plan, Form of [added: Restricted] Stock [removed: Option Agreement](https://www.sec.gov/Archives/edgar/data/75362/000095017025023145/pcar-ex10_h.htm)*] [added: Award Agreement](https://www.sec.gov/Archives/edgar/data/75362/000119312526057025/pcar-ex10_i.htm)*] | | [removed: 10-K] | | | | | | | |

| | | [removed: (i)] [added: (j)] | | [PACCAR Inc Long Term Incentive Plan, Form of Restricted Stock [removed: Award Agreement](https://www.sec.gov/Archives/edgar/data/75362/000156459019003670/pcar-ex10m_938.htm)] [added: Unit Agreement](https://www.sec.gov/Archives/edgar/data/75362/000119312526057025/pcar-ex10_j.htm)*] | | [removed: 10-K] | [removed: February 21, 2019] | | [removed: 10(m)] | | [removed: 001-14817] | | |

| | | [removed: (j)] [added: (g)] | | [PACCAR Inc Long Term Incentive [removed: Plan, Form of Restricted Stock Unit Agreement](https://www.sec.gov/Archives/edgar/data/75362/000156459019003670/pcar-ex10n_939.htm)] [added: Plan](https://www.sec.gov/Archives/edgar/data/75362/000119312526057025/pcar-ex10_g.htm)*] | | [removed: 10-K] | [removed: February 21, 2019] | | [removed: 10(n)] | | [removed: 001-14817] | | |

| (19) | | | | [Insider Trading Policies and [removed: Procedures](https://www.sec.gov/Archives/edgar/data/75362/000095017025023145/pcar-ex19.htm)*] [added: Procedures](https://www.sec.gov/Archives/edgar/data/75362/000095017025023145/pcar-ex19.htm)] | | [added: 10-K] | | | [added: February 19, 2025] | | [added: 19] | | [added: 001-14817] |

| (21) | | | | [Subsidiaries of the [removed: registrant](https://www.sec.gov/Archives/edgar/data/75362/000095017025023145/pcar-ex21.htm)*] [added: registrant](https://www.sec.gov/Archives/edgar/data/75362/000119312526057025/pcar-ex21.htm)*] | | | | | | | | | |

| (23) | | | | [Consent of the independent registered public accounting [removed: firm](https://www.sec.gov/Archives/edgar/data/75362/000095017025023145/pcar-ex23.htm)*] [added: firm](https://www.sec.gov/Archives/edgar/data/75362/000119312526057025/pcar-ex23.htm)*] | | | | | | | | | |

| (24) | | | | [Power of attorney – Powers of attorney of certain [removed: directors](https://www.sec.gov/Archives/edgar/data/75362/000095017025023145/pcar-ex24.htm)*] [added: directors](https://www.sec.gov/Archives/edgar/data/75362/000119312526057025/pcar-ex24.htm)*] | | | | | | | | | |

| | | (a) | | [Certification of Principal Executive [removed: Officer](https://www.sec.gov/Archives/edgar/data/75362/000095017025023145/pcar-ex31_a.htm)*] [added: Officer](https://www.sec.gov/Archives/edgar/data/75362/000119312526057025/pcar-ex31_a.htm)*] | | | | | | | | | |

| | | (b) | | [Certification of Principal Financial [removed: Officer](https://www.sec.gov/Archives/edgar/data/75362/000095017025023145/pcar-ex31_b.htm)*] [added: Officer](https://www.sec.gov/Archives/edgar/data/75362/000119312526057025/pcar-ex31_b.htm)*] | | | | | | | | | |

| | | | | [Certification pursuant to rule 13a-14(b) and section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. section [removed: 1350)](https://www.sec.gov/Archives/edgar/data/75362/000095017025023145/pcar-ex32.htm)*] [added: 1350)](https://www.sec.gov/Archives/edgar/data/75362/000119312526057025/pcar-ex32.htm)*] | | | | | | | | | |

| Date: February [removed: 19, 2025] [added: 18, 2026] | /s/ R. Preston Feight |

| /s/ [removed: H. C. A. M. Schippers] [added: B. J. Poplawski] | | [added: Senior Vice] President and Chief Financial Officer |

| [removed: H. C. A. M. Schippers] [added: B. J. Poplawski] | | (Principal Financial Officer) |

— December 31, 2025 and 2024

— Years Ended December 31, 2025, 2024 and 2023

— Years Ended December 31, 2025, 2024 and 2023

| | | |

| /s/ B. J. Poplawski | | Vice President and Controller |

| B. J. Poplawski | | (Principal Accounting Officer) |

| */s/ R. C. McGeary | | Director |

| R. C. McGeary | | |

| */s/ G. M. E. Spierkel | | Director |

| G. M. E. Spierkel | | |