PACCAR (PCAR) Gross Margin — Quarter Ended Jun 30, 2025

Revenue increased slightly from the previous quarter, but gross profit declined as cost of revenue grew. Gross margin weakened compared to both the prior quarter and the same quarter last year.

Gross margin takeaway

Quarter ended Jun 30, 2025 · FY2025 Q2

Revenue increased slightly from the previous quarter, but gross profit declined as cost of revenue grew. Gross margin weakened compared to both the prior quarter and the same quarter last year.

The growth in cost of revenue outpaced the modest increase in revenue, compressing gross margin.
Gross margin for the current quarter is lower than the immediately preceding quarter and also lower than the same quarter one year earlier.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

20.2%

Gross profit

$1.5B

Revenue

$7.5B

Cost of revenue

$6.0B

Quarter-over-quarter change

-0.7 pts

Year-over-year change

-2.6 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
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%
Jun 30, 2025	$7.5B	$1.5B	$6.0B	20.2%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Mar 31, 2025

-0.7 pts

Year-over-year change

Jun 30, 2024

-2.6 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The growth in cost of revenue outpaced the modest increase in revenue, compressing gross margin.

Gross margin for the current quarter is lower than the immediately preceding quarter and also lower than the same quarter one year earlier.

Monitor the trend in cost of revenue as a proportion of revenue, as it directly affects gross margin.