Paccar reported fourth-quarter earnings that matched analysts’ consensus estimates, delivering adjusted EPS of $1.19 per share. While this result was in line with expectations, it represented a 15% decline from the prior-year period. Net income fell to $582 million, down from $685 million in Q4 of last year, reflecting persistent headwinds in the heavy-truck market and higher raw material costs.

Total revenues for the quarter decreased 10% year over year to $6.2 billion. Truck deliveries fell by 12% to 54,000 units, driven primarily by soft demand in North America where Class 8 orders have been pressured by fleet operators’ extended replacement cycles. European and Asia-Pacific markets also saw modest volume contractions, contributing to the overall revenue slide.

On the back of a larger installed base, Paccar’s aftermarket parts and service segment generated $1.8 billion in revenues, marking a 5% increase versus the prior year. Higher utilization of telematics-based maintenance programs supported parts sales growth, while service hours billed rose by 7%, offsetting some of the declines in truck manufacturing margins.

Despite the year-over-year drop in sales and earnings, Paccar’s forward price-to-earnings ratio sits below its five-year average, suggesting potential value for long-term investors. The company holds a Zacks Style Score of ‘A’ for momentum, driven by improving relative strength over the past three months and steady institutional buying. With a trailing free cash flow yield above 6%, Paccar remains attractive on both value and momentum criteria.