Slide 1: July 2025
July 2025 Page 1
Slide 2: Disclosure Regarding Forward-Looking Statements
Disclosure Regarding Forward-Looking Statements This presentation may contain statements that are forward looking. These statements are based on current expectations and assumptions that are subject to risks and uncertainties, which may cause actual results to differ materially. A summary of risks a
Slide 3: Index
Index PACCAR Overview 4 Trucking Moves the Economy 25 Parts Strategy 46 Our Culture 5 >6t Global Truck Market 26 Distribution Centers and Dealer Map 47 PACCAR Brands 6 >16t Truck Market Size 27 Global Dealer Network 48 New Kenworth T680 8 PACCAR Strategy 29 Kenworth and Peterbilt Locations 49 New Pe
Slide 4: PACCAR: A Global Technology Company in Commercial Vehicles
PACCAR A Global Technology Company in Commercial Vehicles 2024 Revenues $33.7B 2024 Net Income $4.2B 2024 Avg Dividend Yield 4.0% 86 Years of Consecutive Profitability; Dividend Paid Every Year Since 1941 Truck and Other Aftermarket Parts $24.8B Revenues $6.7B Revenues Premium Quality Light, Medium
Slide 5: Our Vision
Our Vision PACCAR is creating trucks and transportation solutions that drive the world’s future. Our focus is on doing things in an ethical and disciplined manner. We make decisions utilizing conservative financial principles and common sense for the long-term benefit of our customers, employees and
Slide 6: PACCAR brands and business segments
PACCAR’s business segments include Commercial Vehicles, Powertrain, Aftermarket Parts, Financial Services and Information Technology. PACCAR’s premium brands Kenworth, Peterbilt and DAF are the premier light, medium and heavy duty commercial trucks in their markets. Other brands include PACCAR Power
Slide 7: PACCAR's product investments deliver industry-leading performance and value
PACCAR’s product investments Our products reflect our core deliver industry-leading brand values of quality, performance and value to our innovation and technology customers July 2025 Page 7
Slide 8: New Kenworth T680
New Kenworth T680 Kenworth’s T680 heavy truck features an enhanced aerodynamic exterior design, driver optimized technology, including a customizable 15” digital dash display, and 7% greater fuel economy July 2025 Page 8
Slide 9: New Peterbilt Model 579
New Peterbilt Model 579 Peterbilt’s Model 579 Class 8 truck sets the standard for technology and driver comfort and delivers 7% greater fuel efficiency July 2025 Page 9
Slide 10: New Peterbilt Model 589
New Peterbilt Model 589 Peterbilt’s new Model 589 Class 8 truck features a new 2.1-meter-wide cab with advanced driver technology and a new digital display July 2025 Page 10
Slide 11: New Peterbilt and Kenworth Medium Duty
New Peterbilt and Kenworth Medium Duty The all new medium duty product line-up features an 8” wider cab with 3-person seating. Powered by the updated PACCAR PX engine and PACCAR TX-8 automatic transmission. July 2025 Page 11
Slide 12: New DAF XB, XD, XF, XG, XG+
New DAF XB, XD, XF, XG, XG+ DAF is the first truck manufacturer in the industry to have taken full advantage of Europe’s new regulations governing truck design. The new trucks feature a new aerodynamic design, 13% greater fuel efficiency and larger interior space. July 2025 Page 12
Slide 13: New DAF Truck Models
New DAF Truck Models Electric XD and XF DAF XG+ Interior XF and XG+ XD Vocational July 2025 Page 13
Slide 14: PACCAR Powertrain
The proprietary PACCAR Powertrain is the most advanced heavy-duty powertrain in the market. The PACCAR MX engines are integrated to the PACCAR TX-12 automated transmission and the efficient DX-40 tandem drive axle to achieve exceptional performance and fuel economy. Kenworth and Peterbilt offer the
Slide 15: PACCAR Truck Production
PACCAR Truck Production Over 1.7 Million Trucks Produced 2015 - 2024 PACCAR produced 185,300 trucks in 2024 Units (000s) 250 198.8 204.2 Brasil 189.1 185.9 185.3 Australia 200 154.7 158.9 162.7 Mexico 140.9 Canada 133.3 150 US Europe 100 50 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 July 20
Slide 16: Excellent Financial Performance Throughout the Business Cycle
PACCAR Excellent Financial Performance Throughout the Business Cycle $ Billions Revenues $ Billions • Reputation for superior operational 40 35 40 35 excellence and premium-quality products 30 30 and services 25 25 20 20 15 10 15 10 • Long-term growth in revenues and net 5 5 income reflect increased
Slide 17: Best-in-Class Operating Efficiency: Industry Operating Margin
Best-in-Class Operating Efficiency Industry Operating Margin 18% 18% 15% 15% 12% 12% 9% 9% 6% 6% 3% 3% 0% 0% -3% -3% -6% -6% 15 16 17 18 19 20 21 22 23 24 1H25 PACCAR Volvo Daimler Truck Traton Iveco July 2025 Page 17
Slide 18: Best-in-Class Operating Efficiency: SG&A % of Sales
Best-in-Class Operating Efficiency SG&A % of Sales PACCAR’s SG&A as a percentage of sales is much lower than its peer group, reflecting strong financial discipline 16% 16% 12% 12% 8% 8% 4% 4% 0% 0% 15 16 17 18 19 20 21 22 23 24 PACCAR Volvo Daimler Truck Traton Iveco July 2025 Page 18
Slide 19: Best-in-Class Inventory Turns
Best-in-Class Inventory Turns 2024 14 14 12 12 10 8 10 8 PACCAR’s inventory turns 6 6 4 4 are the highest in the 2 2 0 0 PACCAR Iveco Volvo Daimler Truck Traton industry, a result of the Average 2020 - 2024 PACCAR Production System, 14 14 12 12 10 8 10 8 Lean Manufacturing and Six 6 6 4 4 Sigma. 2 2
Slide 20: Net Income per Truck
Net Income per Truck • Net income per truck is PACCAR’s Truck Units $/Truck net income divided by total truck (000s) unit sales. 250 25,000 225 22,500 200 20,000 • Truck sales not only generate profit from the sale, but also parts and 175 17,500 finance profit. This illustrates the 150 15,000 streng
Slide 21: Best-in-Class Return on Invested Capital
Best-in-Class Return on Invested Capital 2024 40% 40% • 25.5% ROIC in 2024 30% 30% 20% 20% 10% 10% • Premium price and strong 0% 0% profitability • Effective capital allocation Average 2020 - 2024 process 25% 25% 20% 20% 15% 15% 10% 10% • Lean operations from PACCAR 5% 5% 0% 0% production system • I
Slide 22: Capital Allocation Strategy
Capital Allocation Strategy • High ROI capital investments • Pay regular quarterly and annual dividend − Dividend paid every year since 1941 − Total dividends paid approximately 50% of net income for many years − Regular quarterly dividend 10-year annualized growth of 7% (as of 4Q24) • Strategic M&A
Slide 23: Dividends Declared and Stock Repurchases
Dividends Declared and Stock Repurchases $ Millions CAGR = 7% $ Millions 2,500 2,500 2,000 2,000 1,500 1,500 1,000 1,000 500 500 0 0 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Dividends Stock Repurchased July 2025 Page 23
Slide 24: Excellent Dividend Yield
Excellent Dividend Yield Average Dividend Yield = 3.9% • PACCAR’s dividend yield 6% 6% reflects the total quarterly + annual dividends declared in 5% 5% the year, divided by the 4% 4% average stock price for the year 3% 3% • PACCAR’s dividend yield has 2% 2% averaged 3.9% over the last ten years 1%
Slide 25: Trucking Moves the Economy
Trucking Moves the Economy 72% of U.S. Freight is Moved by Truck Trucking is the lifeblood of the economy. In the U.S., the economy depends on trucks to deliver ten billion tons of virtually every commodity consumed - 72% of all the freight transported. Rail 38.9 million commercial trucks, including
Slide 26: >6t Global Truck Market
>6t Truck Market 2019 – 3.1 Million >6t Global Truck Market 2024 – 3.0 Million Europe Russia/CIS China 374 358 96 142 1,314 1,026 North America 453 408 Rest of Asia 316 316 301 India Africa & South America Middle East 277 329 115 176 152 180 Australia PACCAR Truck Assembly 2019 2024 24 32 Units in T
Slide 27: >16t Truck Market Size
>16t Truck Market Size Units (000s) Units (000s) 400 400 350 350 300 300 2025 Market Forecast Estimate 250 250 U.S. and Canada 230,000 – 260,000 200 200 Europe 270,000 – 300,000 150 150 S. America 90,000 – 100,000 100 100 50 50 0 0 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 US &
Slide 28: Strategy
Strategy July 2025 Page 28
Slide 29: A Culture of Excellence
A Culture of Excellence Premium Trucks Profitable Growth Effective Transportation Solutions Market Expansion Quality Technology Innovation Foundation July 2025 Page 29
Slide 30: Investing Throughout the Business Cycle
PACCAR Investing Throughout the Business Cycle • Operating cash flow has averaged $3.4 billion for the last Operating Cash Flow five years and has grown 9%/year over the last 20 years $ Billions $ Billions 5.0 5.0 − Strong operating cash flow enables PACCAR to invest in 4.5 4.5 4.0 4.0 growth throug
Slide 31: Cumulative PACCAR MX Engines Produced
Cumulative PACCAR MX Engines Produced • PACCAR has produced over 738,000 engines in Europe and # of Engines Cumulative PACCAR MX Engines Produced # of Engines over 347,000 engines in North America. (000s) (000s) • Growing presence in South America and Australia. 1,400 1,400 • The PACCAR engine facto
Slide 32: PACCAR Zero Emissions
PACCAR Zero Emissions DAF XD Electric Kenworth T680E Kenworth K270E/K370E DAF XF Electric DAF XB Electric Peterbilt 520EV Peterbilt 220EV Peterbilt 579EV Amplify Cell Technologies JV Battery Factory (Rendering) July 2025 Page 32
Slide 33: Battery Charging Solutions
Battery Charging Solutions • PACCAR Parts has introduced new electric vehicle charging stations to support the global launch of electric vehicles • Compatible with Kenworth, Peterbilt and DAF electric trucks and other brands • Charging power from 20 kW up to 350 kW • PACCAR is collaborating with Fai
Slide 34: PACCAR Battery Strategy
PACCAR Battery Strategy Advantages of lithium-iron-phosphate (LFP) battery technology: • Lower cost • Longer life • Enhanced safety • No nickel or cobalt PACCAR proprietary packs deliver • Cost leadership • Supply security • Commercial vehicle specific • Battery management system July 2025 Page 34
Slide 35: Amplify Cell Technologies Battery Cell Joint Venture
Amplify Cell Technologies Battery Cell Joint Venture • Domestic LFP production • PACCAR owns 30% of JV • Commercial vehicle products • Total project investment $2 – 3B Marshall County, Mississippi • 21 GWh capacity • Start of production in 2027 July 2025 Page 35
Slide 36: PACCAR Batteries Reduce Cost in Multiple Applications
PACCAR Batteries Reduce Cost in Multiple Applications Battery Electric Fuel Cell Electric Hybrid Electric Charger Energy Storage July 2025 Page 36
Slide 37: Autonomous Trucks
Autonomous Trucks • PACCAR has invested in a strategic partnership with Aurora to develop, test and commercialize autonomous Peterbilt and Kenworth trucks • PACCAR’s autonomous vehicle platform will be integrated with the Aurora self-driving technologies • PACCAR customers will benefit from the auto
Slide 38: PACCAR's Essential Role in Autonomous Trucking
PACCAR’s Essential Role in Autonomous Trucking PACCAR’s Autonomous Vehicle Platform Controls & Automated Driver High Power Interface Compute Braking Steering Engineering and Manufacturing Repair and Maintenance Replacement Parts Connected Services July 2025 Page 38
Slide 39: PACCAR and Aurora Partner on Autonomous Truck Pilots
PACCAR and Aurora Partner on Autonomous Truck Pilots • PACCAR and Aurora have five customer trials underway with FedEx, Uber Freight, Werner Enterprises, Hirschbach Motor Lines, and Schneider National July 2025 Page 39
Slide 40: PACCAR Electronics Creates Strong Competitive Advantage
PACCAR Electronics Creates Strong Competitive Advantage • PACCAR formed PACCAR Electronics in 2024 to address the growing importance of electronics within PACCAR product development • Electronic systems include new vehicle Engine Controller architecture, safety systems, vehicle controls and switches
Slide 41: Connected Services
Connected Services PACCAR is launching a new state-of-the-art global connected truck platform, PACCAR Connect. New proprietary hardware and data Secure Vehicle Data Business Solutions platform provides: • Cybersecurity protection & monitoring • Over-the-air software updates • Access to industry lead
Slide 42: PACCAR and Platform Science Connected Vehicle Partnership
PACCAR and Platform Science Connected Vehicle Partnership • PACCAR has made a strategic investment in Platform Science • PACCAR and Platform Science will collaborate on connected trucks • PACCAR will integrate Platform Science Virtual Vehicle into Kenworth and Peterbilt trucks • The solution enables
Slide 43: PACCAR Innovation Center, Sunnyvale, CA
PACCAR Innovation Center, Sunnyvale, CA • PACCAR Innovation Center in Silicon Valley enhances PACCAR’s access to emerging technologies and talent from around the world • The Innovation Center collaborates with other PACCAR engineering teams to develop next generation technologies such as autonomous
Slide 44: PACCAR Global Embedded Services
PACCAR Global Embedded Services PACCAR has three embedded service technology centers located at Kenworth in Kirkland, WA; at DAF in Eindhoven, the Netherlands; and in Pune, India The centers will accelerate embedded software development and connected vehicle solutions to benefit customers’ operating
Slide 45: PACCAR Manufacturing Capacity Investments
PACCAR Manufacturing Capacity Investments Kenworth Test Building, Chillicothe, Ohio PACCAR Mexico Expansion July 2025 Page 45 PACCAR Engine Factories New Test Building, St. Therese, Quebec
Slide 46: PACCAR Parts Strategy
PACCAR Parts Strategy PACCAR Parts achieved record $6.67 billion in sales PACCAR Parts Sales $ Millions $ Millions and record $1.71 billion in pretax profits in 2024. Over 7,000 CAGR = 8% 7,000 the last 20 years, PACCAR Parts has achieved a sales 6,000 32% 32% 31% 6,000 5,000 5,000 CAGR of 8% and pr
Slide 47: PACCAR Parts Distribution Centers and Dealers
PACCAR Parts Distribution Centers and Dealers 20 PDCs in 10 Countries; 2,400 Dealer Locations PACCAR Distribution Centers Kenworth and Peterbilt Dealers DAF Dealers Kenworth/DAF Dealers July 2025 Page 47
Slide 48: PACCAR Global Dealer Network
PACCAR Global Dealer Network • Independent dealer network of 2,400 dealer locations • Premium customer experience • Strong dealer profitability and expanded opportunities from PACCAR engines and TRP stores • Competitive flooring and retail financing provided by PACCAR Financial and PACCAR Leasing Ju
Slide 49: Growth in Kenworth and Peterbilt Dealer Locations
Growth in Kenworth and Peterbilt Dealer Locations U.S. and Canada Locations Locations 1,000 PACCAR MX-13 Introduced in 2010 1000 900 Dealer Investments of $4.1 Billion since 2010 900 800 66% Growth in Dealer Locations since 2010 800 Drives Long-Term PACCAR Parts Growth 700 700 600 600 500 500 400 40
Slide 50: PACCAR Financial Services Strategy
PACCAR Financial Services Strategy • PACCAR Financial Services supports truck sales by Total Assets 12/31/24 = $22.4 Billion providing financing and leasing services to Australia, Mexico & Brasil $4.3 Billion PACCAR customers 19% U.S. & Canada $10.7 Billion • In 2024, PACCAR Financial financed 25% o
Slide 51: Long-Term Growth in PACCAR Heavy Duty Market Share
Long-Term Growth in PACCAR Heavy Duty Market Share Market Share • Since 2004, PACCAR’s above 16 tonne market 32% 32% share has increased in South America, Europe, Australia and U.S. & Canada 28% 28% • Kenworth is the market leader in Australia 24% 24% 20% 20% • PACCAR’s investment in truck manufactu
Slide 52: DAF Brasil
DAF Brasil Opened Manufacturing Plant 2013 PFS Brasil Begins Operations 2019 Opened New Parts Distribution Center 2020 4th Brand of the Year Award from FENABRAVE 2021 DAF CF Rigid Introduced 2021 DAF Brasil Builds 20,000th Truck 2022 DAF Brasil 10th Anniversary 2023 DAF CF Parts Distribution Center
Slide 53: PACCAR Rest-of-World Growth
PACCAR Rest-of-World Growth Deliveries Deliveries Rev. $M Rev. $M 35,000 35,000 $6,000 $6,000 30,000 30,000 54% $5,000 110% $5,000 25,000 25,000 $4,000 $4,000 20,000 20,000 $3,000 $3,000 15,000 15,000 $2,000 $2,000 10,000 10,000 5,000 5,000 $1,000 $1,000 0 0 $0 $0 2019 2024 2019 2024 July 2025 Page
Slide 54: Infrastructure Investment and Jobs Act
Infrastructure Investment and Jobs Act • In 2021, congress approved $1.2 trillion in new infrastructure spending in the Infrastructure Investment and Jobs Act • This $1.2 trillion in spending will benefit PACCAR, as it is the industry leader in vocational trucks • Kenworth and Peterbilt combined hav
Slide 55: Emissions Regulations Summary
Emissions Regulations Summary Euro 7 Greenhouse Gas - 15% GHG - 50% NOx - 28% GHG – 43% vs. 2019 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Greenhouse Gas – 39% vs. 2021 -6% GHG -7% GHG -6% GHG -20% GHG Nationwide - 82% NOx July 2025 Page 55
Slide 56: Fuel Economy Improvement
Fuel Economy Improvement % Increase % Increase % Increase % Increase MPG US and Canada Fuel Economy MPG MPG Europe Fuel Economy MPG 80% 80% 80% 80% 70% 70% 70% 70% 60% 60% 60% 60% 50% 50% 50% 50% 40% 40% 40% 40% 30% 30% 30% 30% 20% 20% 20% 20% 10% 10% 10% 10% 0% 0% 0% 0% July 2025 Page 56
Slide 57: ESG Leadership
ESG Leadership CDP “A-” Rating Newsweek America’s Greatest Workplaces 2023 PACCAR achieved an “A-” rating for its Recognized as one of the environmental practices; top 0.26% workplaces in Leadership Tier of over America by Newsweek 24,000 reporting and Plant-A Insights Group companies Science Based
Slide 58: Second Quarter 2025 Earnings
Second Quarter 2025 Earnings July 2025 Page 58
Slide 59: PACCAR Revenues and Profit
PACCAR Revenues and Profit 86 consecutive years of net profit Dividends every year since 1941 2nd Quarter First Half ($ in Millions) 2025 2024 2025 2024 Revenues $7,511 $8,772 $14,952 $17,516 Net Income $724 $1,123 $1,229 $2,318 Adjusted Net Income $724 $1,123 $1,493 $2,318 Adjusted Return on Revenu
Slide 60: 2025 Financial Results: Second Quarter 2025 vs. Second Quarter 2024
2025 Financial Results Second Quarter 2025 vs. Second Quarter 2024 Sales and Revenues Adjusted Net Income (Billions of Dollars) (Millions of Dollars) $1,123 • Sales and revenues of $7.5 billion $8.8 • Net income of $724 million $7.5 • After-tax adjusted return on revenues of 9.6% $724 • Record PACCA
Slide 61: Historical Annual Gross Margins
Historical Annual Gross Margins • Truck margins benefited from new products launched Total Manufacturing in 2021/2022 20% 20% 18% 18% • 2Q25 truck margins were affected by economic 16% 16% uncertainty and tariffs 14% 14% 14.3% • Parts margins have benefited from distribution and 12% 12% technology i
Slide 62: Truck: Second Quarter 2025 vs. Second Quarter 2024
Truck Second Quarter 2025 vs. Second Quarter 2024 Sales Segment Pretax Profit (Millions of Dollars) (Millions of Dollars) $6,578 $837 • Sales totaled $5.2 billion $5,243 • Pretax operating profit of $309 million • Deliveries for 2Q25 totaled 39,300 compared to 48,400 units in the same period a year
Slide 63: Aftermarket Parts: Second Quarter 2025 vs. Second Quarter 2024
Aftermarket Parts Second Quarter 2025 vs. Second Quarter 2024 Revenues Segment Pretax Profit (Millions of Dollars) (Millions of Dollars) $414 $417 $1,721 $1,664 • Record revenues of $1.7 billion, an increase of 3% • Pretax profit of $417 million • Strong 30.0% Parts gross margin 2024 2025 2024 2025
Slide 64: Financial Services Balance Sheet & Second Quarter 2025 Profit
Financial Services Balance Sheet & Second Quarter 2025 Profit Segment $ Millions Pretax Profit (Millions of Dollars) 6/30/2025 Finance & Other Receivables $20,193 $123 $111 Equipment on Operating Leases 1,928 Other Assets 1,192 Total Financial Services Assets $23,313 Commercial Paper & Bank Loans $5
Slide 65: PACCAR Inc: A+/A1 Credit Ratings
PACCAR Inc A+/A1 Credit Ratings ($ Millions) • Superb balance sheet 6/30/25 Mfg Cash & Securities $8,280 • $8.3 billion in manufacturing cash and securities to support growth opportunities Other Manufacturing Assets 12,502 and investments in all phases of the cycle Financial Services Assets 23,313 T
Slide 66: PACCAR is Structurally Stronger & Positioned for Future Growth
PACCAR is Structurally Stronger & Positioned for Future Growth Game Changing New Truck Models Strong Parts Growth and Profit Rest of World Growth Technology Enabling Opportunities July 2025 Page 66
Slide 67: Appendix
Appendix This earnings release includes “adjusted net income (non-GAAP)” and “adjusted net income per diluted share (non-GAAP)”, which are financial measures that are not in accordance with U.S. generally accepted accounting principles (“GAAP”), since they exclude a charge for EC-related claims. The
Slide 68: July 2025 Page 68
July 2025 Page 68