In the first quarter of 2026, PACCAR experienced a decline in truck deliveries across most markets, driven by weaker retail demand and tariff-related cost increases, which pressured truck revenue and segment income. Meanwhile, its Parts and Financial Services segments delivered modest revenue growth, supported by stable aftermarket demand and improved portfolio yields. PACCAR's integrated business model and localized manufacturing have cushioned the impact of tariffs, while ongoing investments in electrification and autonomous systems position the company for future growth. Key risks include macroeconomic cycles affecting truck demand and financial credit exposure. The company's liquidity remains robust with substantial cash reserves and available credit facilities.