PACCAR Inc stock research
FY2025 Q1
PACCAR (PCAR) Gross Margin — Quarter Ended Mar 31, 2025
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin weakened relative to both comparison periods, reflecting a larger proportional decline in gross profit relative to revenue.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin weakened relative to both comparison periods, reflecting a larger proportional decline in gross profit relative to revenue.
- The strongest observable margin driver is the relationship between revenue and cost of revenue: although cost of revenue decreased, it did not decline enough to offset the revenue drop, leading to a lower gross margin.
- Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened. Versus the same quarter one year earlier, all three metrics were also lower, with gross margin showing a more pronounced weakening.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
20.8%
Gross profit
$1.6B
Revenue
$7.4B
Cost of revenue
$5.9B
Quarter-over-quarter change
-0.8 pts
Year-over-year change
-2.8 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2024 | $8.8B | $2.0B | $6.8B | 22.8% |
| Sep 30, 2024 | $8.2B | $1.8B | $6.4B | 22.0% |
| Dec 31, 2024 | $7.9B | $1.7B | $6.2B | 21.6% |
| Mar 31, 2025 | $7.4B | $1.6B | $5.9B | 20.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
-0.8 pts
Year-over-year change
Mar 31, 2024
-2.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue and cost of revenue: although cost of revenue decreased, it did not decline enough to offset the revenue drop, leading to a lower gross margin.
Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened. Versus the same quarter one year earlier, all three metrics were also lower, with gross margin showing a more pronounced weakening.
Monitor the trend in cost of revenue relative to revenue, as its rate of decline will be key to future gross margin stability.