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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒	Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2025


☐	Transition Report Pursuant to Section 13 Or 15(d) of the Securities Exchange Act of 1934

For transition period from __________ to __________

Commission File No. 001-11677

PACCAR FINANCIAL CORP.

(Exact name of registrant as specified in its charter)


Washington	91-6029712
(State of incorporation)	(I.R.S. Employer Identification No.)

777 – 106th Ave. N.E., Bellevue, Washington	98004
(Address of principal executive offices)	(Zip code)

(425) 468-7100

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

     Title of each class

     Trading Symbol(s)

     Name of each exchange on which registered

     Series P Medium-Term Notes 
$300.0 Million Due May 11, 2026
 
PCAR26

The NASDAQ Stock Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date:

Common Stock, $100 par value—145,000 shares as of July 30, 2025

THE REGISTRANT IS A WHOLLY OWNED SUBSIDIARY OF PACCAR INC AND MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTIONS (H)(1)(a) and (b) OF FORM 10-Q AND IS, THEREFORE, FILING THIS FORM WITH THE REDUCED DISCLOSURE FORMAT.

PACCAR FINANCIAL CORP.

INDEX



		Page

PART I.	FINANCIAL INFORMATION:

ITEM 1.	FINANCIAL STATEMENTS:
	Statements of Comprehensive Income and Retained Earnings — Three and Six Months Ended June 30, 2025 and 2024 (Unaudited)	3
	Balance Sheets — June 30, 2025 (Unaudited) and December 31, 2024	4
	Statements of Cash Flows — Six Months Ended June 30, 2025 and 2024 (Unaudited)	5
	Statements of Stockholder’s Equity — Three and Six Months Ended June 30, 2025 and 2024 (Unaudited)	6
	Notes to Financial Statements (Unaudited)	7
ITEM 2.	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	19
ITEM 4.	CONTROLS AND PROCEDURES	27

PART II.	OTHER INFORMATION:	28

ITEM 1.	LEGAL PROCEEDINGS	28
ITEM 1A.	RISK FACTORS	28
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS AND ISSUER PURCHASES OF EQUITY SECURITIES	28
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	28
ITEM 4.	MINE SAFETY DISCLOSURES	28
ITEM 5.	OTHER INFORMATION	28
ITEM 6.	EXHIBITS	28

EXHIBIT INDEX		29

SIGNATURES		30

PACCAR FINANCIAL CORP.

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

STATEMENTS OF COMPREHENSIVE INCOME AND RETAINED EARNINGS (Unaudited)


	Three Months Ended				Six Months Ended
	June 30				June 30
(Millions of Dollars)		2025	2024			2025	2024
Interest and fee income	$	193.0	$	160.9	$	383.0	$	308.0
Operating lease and rental revenues		37.2		42.4		75.3		94.7
Used truck sales and other revenues		5.2		5.7		20.0		17.5

TOTAL INTEREST AND OTHER REVENUES		235.4		209.0		478.3		420.2

Interest and other borrowing costs		123.8		97.8		242.3		187.5
Depreciation and other rental expenses		29.4		41.5		64.5		89.1
Cost of used truck sales and other expenses		4.1		5.6		18.2		17.1
Selling, general and administrative expenses		17.3		18.0		34.4		35.2
Provision for losses on receivables		12.7		6.1		18.2		13.2

TOTAL EXPENSES		187.3		169.0		377.6		342.1

INCOME BEFORE INCOME TAXES		48.1		40.0		100.7		78.1

Income taxes		11.7		10.0		23.8		18.9

NET INCOME	$	36.4	$	30.0	$	76.9	$	59.2
COMPREHENSIVE INCOME	$	36.2	$	29.3	$	73.8	$	60.4
RETAINED EARNINGS AT BEGINNING OF PERIOD	$	1,809.9	$	1,682.3	$	1,769.4	$	1,703.1
RETAINED EARNINGS AT END OF PERIOD	$	1,846.3	$	1,712.3	$	1,846.3	$	1,712.3

Earnings per share and dividends per share are not reported because the Company is a wholly owned subsidiary of PACCAR Inc.

See Notes to Financial Statements.

- 3 -

PACCAR FINANCIAL CORP.


BALANCE SHEETS
	June 30		December 31
		2025	2024*
(Millions of Dollars)	(Unaudited)
ASSETS
Cash	$	57.1	$	83.1
Finance and other receivables, net of allowance for losses (2025 - $65.1 and 2024 - $74.4)		11,208.9		11,091.3
Due from PACCAR and affiliates		2,193.9		2,070.5
Equipment on operating leases, net of accumulated depreciation (2025 - $289.6 and 2024 - $314.6)		436.1		509.1
Other assets		280.4		266.5

TOTAL ASSETS	$	14,176.4	$	14,020.5

LIABILITIES
Accounts payable, accrued expenses and other	$	656.5	$	696.7
Due to PACCAR and affiliates		49.8		21.8
Commercial paper		3,153.0		3,610.3
Medium-term notes		7,781.0		7,216.6
Deferred taxes and other liabilities		454.4		473.6

TOTAL LIABILITIES		12,094.7		12,019.0

STOCKHOLDER'S EQUITY
Preferred stock, par value $100 per share, 6% noncumulative and nonvoting, 450,000 shares authorized, 310,000 shares issued and outstanding		31.0		31.0
Common stock, par value $100 per share, 200,000 shares authorized, 145,000 shares issued and outstanding		14.5		14.5
Additional paid-in capital		185.1		178.7
Retained earnings		1,846.3		1,769.4
Accumulated other comprehensive income		4.8		7.9

TOTAL STOCKHOLDER'S EQUITY		2,081.7		2,001.5

TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY	$	14,176.4	$	14,020.5

* The December 31, 2024 balance sheet has been derived from audited financial statements.

See Notes to Financial Statements.

- 4 -

PACCAR FINANCIAL CORP.


STATEMENTS OF CASH FLOWS (Unaudited)
	Six Months Ended
	June 30
(Millions of Dollars)		2025		2024
OPERATING ACTIVITIES
Net income	$	76.9		$	59.2
Items included in net income not affecting cash:
Depreciation and amortization		65.3			87.9
Provision for losses on receivables		18.2			13.2
Deferred taxes		(16.9	)		(2.4	)
Administrative fees for services from PACCAR		6.4			5.4
Change in tax-related balances with PACCAR		15.1			1.7
(Decrease) increase in payables and other		(35.9	)		36.1

NET CASH PROVIDED BY OPERATING ACTIVITIES		129.1			201.1

INVESTING ACTIVITIES
Finance and other receivables originated		(1,593.2	)		(1,778.9	)
Collections on finance and other receivables		1,331.7			1,493.5
Net decrease (increase) in wholesale receivables		80.0			(298.3	)
Loans to PACCAR and affiliates		(302.0	)		(364.6	)
Collections on loans from PACCAR and affiliates		130.0			290.0
Net decrease in other receivables to PACCAR and affiliates		48.0			51.0
Acquisitions of equipment for operating leases		(23.2	)		(188.9	)
Proceeds from disposals of equipment		114.4			108.7
Other, net		(25.9	)		(21.8	)

NET CASH USED IN INVESTING ACTIVITIES		(240.2	)		(709.3	)

FINANCING ACTIVITIES
Net decrease in short-term commercial paper		(459.8	)		(105.9	)
Proceeds from medium-term notes		1,344.9			1,442.9
Payments of medium-term notes		(800.0	)		(900.0	)
Dividends paid					(50.0	)

NET CASH PROVIDED BY FINANCING ACTIVITIES		85.1			387.0

NET DECREASE IN CASH		(26.0	)		(121.2	)

CASH AT BEGINNING OF PERIOD		83.1			175.1

CASH AT END OF PERIOD	$	57.1		$	53.9

See Notes to Financial Statements.

- 5 -

PACCAR FINANCIAL CORP.


STATEMENTS OF STOCKHOLDER'S EQUITY (Unaudited)
	Three Months Ended						Six Months Ended
	June 30						June 30
(Millions of Dollars)		2025		2024				2025		2024
PREFERRED STOCK, $100 par value

Balance at beginning of period	$	31.0		$	31.0		$	31.0		$	31.0
Balance at end of period		31.0			31.0			31.0			31.0

COMMON STOCK, $100 par value

Balance at beginning of period		14.5			14.5			14.5			14.5
Balance at end of period		14.5			14.5			14.5			14.5

ADDITIONAL PAID-IN CAPITAL

Balance at beginning of period		184.1			176.3			178.7			171.6
Investments from PACCAR		1.0			.7			6.4			5.4
Balance at end of period		185.1			177.0			185.1			177.0

RETAINED EARNINGS

Balance at beginning of period		1,809.9			1,682.3			1,769.4			1,703.1
Net income		36.4			30.0			76.9			59.2
Dividends paid											(50.0	)
Balance at end of period		1,846.3			1,712.3			1,846.3			1,712.3

ACCUMULATED OTHER COMPREHENSIVE INCOME

Accumulated unrealized net gain (loss) on derivative contracts:
Balance at beginning of period		5.0			12.9			7.9			11.0
Net unrealized (loss) gain		(.2	)		(.7	)		(3.1	)		1.2
Balance at end of period		4.8			12.2			4.8			12.2

TOTAL STOCKHOLDER'S EQUITY	$	2,081.7		$	1,947.0		$	2,081.7		$	1,947.0

See Notes to Financial Statements.

- 6 -

PACCAR FINANCIAL CORP.


Notes to Financial Statements (Unaudited)	(Millions of Dollars)

NOTE A – Basis of Presentation

PACCAR Financial Corp. (the “Company”) is a wholly owned subsidiary of PACCAR Inc (“PACCAR”). The Company primarily provides financing of PACCAR manufactured trucks and related equipment sold by authorized dealers. The Company also finances dealer inventories of transportation equipment and franchises Kenworth and Peterbilt dealerships to engage in full-service and finance leasing. The operations of the Company are fundamentally affected by its relationship with PACCAR.

The accompanying unaudited financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the six months ended June 30, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025. For further information, refer to the financial statements and footnotes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024.

New Accounting Pronouncements:

In December 2023, the Financial Accounting Standards Board (FASB) issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this ASU require entities to disclose certain, specific categories within the rate reconciliation and enhance disclosures regarding income taxes paid and income tax expense. This ASU is effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The amendments in this ASU should be applied on a prospective basis; however, retrospective application is permitted. The implementation of this ASU will result in additional disclosures and will not have an impact on the Company’s financial statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The amendments in this ASU expand the disclosures in the notes to the financial statements about specific cost and expense categories presented on the face of the income statement. This ASU is effective for annual periods beginning after December 15, 2026, and interim periods within annual periods beginning after December 15, 2027. Early adoption is permitted. The amendments in this ASU should be applied either (1) prospectively to financial statements issued for reporting periods after the effective date or (2) retrospectively to any or all prior periods presented. The Company is currently evaluating the impact of this update on the related notes to the financial statements.

NOTE B – Finance and Other Receivables

The Company’s finance and other receivables include the following:


	June 30			December 31
		2025		2024
Retail loans	$	5,860.9		$	5,675.3
Retail financing leases		1,843.8			1,846.3
Dealer wholesale financing		2,990.1			3,070.1
Dealer master notes		519.7			518.1
Operating lease receivables and other		59.5			55.9
		11,274.0			11,165.7

Less allowance for credit losses:
Loans and leases		(63.3	)		(71.8	)
Dealer wholesale financing		(1.1	)		(1.1	)
Operating lease receivables and other		(.7	)		(1.5	)
	$	11,208.9		$	11,091.3

Interest income recognized on finance leases was $27.5 and $54.4 for the three and six months ended June 30, 2025, respectively, compared to $23.6 and $46.8 for the same periods in 2024. Recognition of interest income and rental revenue is suspended (put on non-accrual status) when the receivable becomes more than 90 days past the contractual due date or earlier if some other event causes the Company to determine that collection is not probable. Accordingly, no finance receivables more than 90 days past due were accruing interest at June 30, 2025 or December 31, 2024. Recognition is resumed if the receivable becomes current by the payment of all amounts due under the terms of the existing contract and collection of remaining amounts is considered probable (if not

- 7 -

PACCAR FINANCIAL CORP.


Notes to Financial Statements (Unaudited)	(Millions of Dollars)

contractually modified) or if the customer makes scheduled payments for three months and collection of remaining amounts is considered probable (if contractually modified). Payments received while the finance receivable is on non-accrual status are applied to interest and principal in accordance with the contractual terms.

Allowance for Credit Losses

The Company continuously monitors the payment performance of its finance receivables. For large retail finance customers and dealers with wholesale financing, the Company regularly reviews their financial statements and makes site visits and phone contact as appropriate. If the Company becomes aware of circumstances that could cause those customers or dealers to face financial difficulty, whether or not they are past due, the customers are placed on a watch list.

The Company modifies loans and finance leases in the normal course of its operations. The Company may modify loans and finance leases for commercial reasons or for credit reasons. Modifications for commercial reasons are changes to contract terms for customers that are not considered to be in financial difficulty. Insignificant delays are modifications extending terms up to three months for customers experiencing some short-term financial stress, but not considered to be in financial difficulty. Modifications for credit reasons are changes to contract terms for customers considered to be in financial difficulty. The Company’s modifications typically result in granting more time to pay the contractual amounts owed and charging a fee and interest for the term of the modification.

When considering whether to modify customer accounts for credit reasons, the Company evaluates the creditworthiness of the customers and modifies those accounts that the Company considers likely to perform under the modified terms. The Company does not typically grant credit modifications for customers that do not meet minimum underwriting standards since the Company normally repossesses the financed equipment in these circumstances.

On average, commercial and other modifications extended contractual terms by approximately four months in 2025 and 2024, and did not have a significant effect on the weighted average term or interest rate of the total portfolio at June 30, 2025 and December 31, 2024.

The Company has developed a systematic methodology for determining the allowance for credit losses for its two portfolio segments, retail and wholesale. The retail segment consists of retail loans and sales-type finance leases, net of unearned interest. The wholesale segment consists of truck inventory financing loans to dealers that are collateralized by trucks and other collateral. The wholesale segment generally has less risk than the retail segment. Wholesale receivables generally are shorter in duration than retail receivables, and the Company requires periodic reporting of the wholesale dealer’s financial condition, conducts periodic audits of the trucks being financed and, in many cases, obtains guarantees or other security such as dealership assets. In determining the allowance for credit losses, retail loans and finance leases are evaluated together since they relate to a similar customer base, their contractual terms require regular payment of principal and interest, generally over 36 to 60 months, and they are secured by the same type of collateral. The allowance for credit losses consists of both specific and general reserves.

The Company individually evaluates certain finance receivables for expected credit losses. Finance receivables that are evaluated individually consist of all wholesale accounts and certain large retail accounts with past due balances or otherwise determined to be at a higher risk of loss. In general, finance receivables that are 90 days past due are placed on non-accrual status. Finance receivables on non-accrual status which have been performing for 90 consecutive days are placed on accrual status if it is deemed probable that the Company will collect all principal and interest payments.

Individually evaluated receivables on non-accrual status are generally considered collateral dependent. Large balance retail and all wholesale receivables on non-accrual status are individually evaluated to determine the appropriate reserve for losses. Generally, the determination of reserves for large balance receivables on non-accrual status considers the fair value of the associated collateral. When the underlying collateral fair value exceeds the Company’s amortized cost basis, no reserve is recorded. Small balance receivables on non-accrual status with similar risk characteristics are evaluated as a separate pool to determine the appropriate reserve for losses using the historical loss information discussed below.

The Company evaluates finance receivables that are not individually evaluated and share similar risk characteristics on a collective basis and determines the general allowance for credit losses for both retail and wholesale receivables based on historical loss information, using past due account data, current market conditions, and expected changes in future macroeconomic conditions that affect collectability. Historical credit loss information provides relevant information of expected credit losses. The historical data used includes assumptions regarding the likelihood of collecting current and past due accounts, repossession rates, and the recovery rate on the underlying collateral based on used truck values and other pledged collateral or recourse.

- 8 -

PACCAR FINANCIAL CORP.


Notes to Financial Statements (Unaudited)	(Millions of Dollars)

The Company has developed a range of loss estimates of its portfolio based on historical experience, taking into account loss frequency and severity in both strong and weak truck market conditions. A projection is made of the range of estimated credit losses inherent in the portfolio from which an amount is determined based on current market conditions and other factors impacting the creditworthiness of the Company’s borrowers and their ability to repay. Adjustments to historical loss information are made for changes in forecasted economic conditions that are specific to the industry and market in which the Company conducts business. The Company utilizes economic forecasts from third party sources and determines expected losses based on historical experience under similar market conditions. After determining the appropriate level of the allowance for credit losses, a provision for losses on finance receivables is charged to income as necessary to reflect management’s estimate of expected credit losses, net of recoveries, inherent in the portfolio.

In determining the fair value of the collateral, the Company uses a pricing matrix and categorizes the fair value as Level 2 in the hierarchy of fair value measurement. The pricing matrix is reviewed quarterly and updated as appropriate. The pricing matrix considers the make, model and year of the equipment as well as recent sales prices of comparable equipment sold individually, which is the lowest unit of account, through wholesale channels to the Company’s dealers (principal market). The fair value of the collateral also considers the overall condition of the equipment.

Accounts are charged off against the allowance for credit losses when, in the judgment of management, they are considered uncollectible, which generally occurs upon repossession of the collateral. Typically the timing between the repossession and charge-off is not significant. In cases where repossession is delayed (e.g., for legal proceedings), the Company records a partial charge-off. The charge-off is determined by comparing the fair value of the collateral, less cost to sell, to the amortized cost basis.

For the following credit quality disclosures, finance receivables are classified into two portfolio segments, wholesale and retail. The retail portfolio is further segmented into dealer retail and customer retail. The dealer wholesale segment consists of truck inventory financing to PACCAR dealers. The dealer retail segment consists of loans and leases to participating dealers and franchises that use the proceeds to fund customers’ acquisition of commercial vehicles and related equipment. The customer retail segment consists of loans and leases directly to customers for the acquisition of commercial vehicles and related equipment. Customer retail receivables are further segregated between fleet and owner/operator classes. The fleet class consists of customer retail accounts operating five or more trucks. All other customer retail accounts are considered owner/operator. These two classes have similar measurement attributes, risk characteristics and common methods to monitor and assess credit risk.

The allowance for credit losses is summarized as follows:


	2025
	Dealer				Customer
	Wholesale		Retail		Retail			Other*			Total
Balance at January 1	$	1.1	$	1.1	$	70.7		$	1.5		$	74.4
Provision for losses				.3		18.7			(.8	)		18.2
Charge-offs						(27.8	)					(27.8	)
Recoveries						.3						.3
Balance at June 30	$	1.1	$	1.4	$	61.9		$	.7		$	65.1


	2024
	Dealer					Customer
	Wholesale		Retail			Retail			Other*		Total
Balance at January 1	$	1.0	$	1.7		$	56.9		$	1.4	$	61.0
Provision for losses				(.6	)		13.7			.1		13.2
Charge-offs							(10.1	)				(10.1	)
Recoveries							.2					.2

Balance at June 30	$	1.0	$	1.1		$	60.7		$	1.5	$	64.3

* Operating lease and other trade receivables.

Charge-offs, net of recoveries, increased to $27.5 in the first half of 2025 from $9.9 in the first half of 2024. The increase in charge-offs reflected a soft truckload market and included losses on four large fleet customers which were provisioned for previously. The

- 9 -

PACCAR FINANCIAL CORP.


Notes to Financial Statements (Unaudited)	(Millions of Dollars)

higher charge-offs also reflect higher average loss severity due to normalizing used truck market values when compared to previous periods.

Credit Quality

The Company's customers are principally concentrated in the transportation industry in the United States. The Company’s portfolio assets are diversified over a large number of customers and dealers with no single customer or dealer balances representing over 10% of the total portfolio assets as of June 30, 2025 or December 31, 2024. The Company retains as collateral a security interest in the related equipment.

At the inception of each contract, the Company considers the credit risk based on a variety of credit quality factors including prior payment experience, customer financial information, credit-rating agency ratings, loan-to-value ratios and other internal metrics. On an ongoing basis, the Company monitors credit quality based on past due status and collection experience as there is a meaningful correlation between the past due status of customers and the risk of loss.

The Company has three credit quality indicators: performing, watch and at-risk. Performing accounts pay in accordance with the contractual terms and are not considered high-risk. Watch accounts include accounts 31 to 90 days past due and large accounts that are performing but are considered to be high-risk. Watch accounts are not collateral dependent. At-risk accounts are generally collateral dependent, including accounts over 90 days past due and other accounts on non-accrual status.

The tables below summarize the amortized cost basis of the Company’s finance receivables within each credit quality indicator by year of origination and portfolio class and current period gross charge-offs of the Company’s finance receivables by year of origination and portfolio class.


At June 30, 2025	Revolving Loans		2025		2024		2023		2022		2021		Prior		Total
Amortized cost:
Dealer:
Wholesale:
Performing	$	2,983.2													$	2,983.2
Watch		6.9														6.9
	$	2,990.1													$	2,990.1
Retail:
Performing	$	227.1	$	219.1	$	546.8	$	492.3	$	324.4	$	145.4	$	150.3	$	2,105.4
Watch				4.7		1.0		12.3		4.1		1.3		2.8		26.2
	$	227.1	$	223.8	$	547.8	$	504.6	$	328.5	$	146.7	$	153.1	$	2,131.6
Total dealer	$	3,217.2	$	223.8	$	547.8	$	504.6	$	328.5	$	146.7	$	153.1	$	5,121.7

Customer retail:
Fleet:
Performing			$	1,043.8	$	1,941.4	$	1,202.7	$	654.5	$	277.5	$	117.8	$	5,237.7
Watch				29.4		18.1		46.1		39.8		20.0		1.3		154.7
At-risk				6.5		14.7		81.9		17.9		1.0		.8		122.8
			$	1,079.7	$	1,974.2	$	1,330.7	$	712.2	$	298.5	$	119.9	$	5,515.2
Owner/operator:
Performing			$	143.4	$	211.7	$	87.7	$	68.0	$	42.1	$	14.8	$	567.7
Watch						1.1		1.8		1.9		1.1		.2		6.1
At-risk						.4		1.2		1.3		.7		.2		3.8
			$	143.4	$	213.2	$	90.7	$	71.2	$	43.9	$	15.2	$	577.6
Total customer retail			$	1,223.1	$	2,187.4	$	1,421.4	$	783.4	$	342.4	$	135.1	$	6,092.8
Total	$	3,217.2	$	1,446.9	$	2,735.2	$	1,926.0	$	1,111.9	$	489.1	$	288.2	$	11,214.5

- 10 -

PACCAR FINANCIAL CORP.


Notes to Financial Statements (Unaudited)	(Millions of Dollars)


Six Months Ended June 30, 2025	Revolving Loans	2025	2024		2023		2022		2021		Prior		Total
Gross charge-offs:
Customer retail:
Fleet			$	2.2	$	21.4	$	.9	$	1.3	$	.3	$	26.1
Owner/operator				.6		.3		.6		.1		.1		1.7
Total			$	2.8	$	21.7	$	1.5	$	1.4	$	.4	$	27.8


At December 31, 2024	Revolving Loans		2024		2023		2022		2021		2020		Prior		Total
Amortized cost:
Dealer:
Wholesale:
Performing	$	3,064.1													$	3,064.1
Watch		6.0														6.0
	$	3,070.1													$	3,070.1
Retail:
Performing	$	229.8	$	599.6	$	562.3	$	371.1	$	181.6	$	83.5	$	128.1	$	2,156.0
Watch				1.1		21.5		5.6		1.6		4.4		.4		34.6
	$	229.8	$	600.7	$	583.8	$	376.7	$	183.2	$	87.9	$	128.5	$	2,190.6
Total dealer	$	3,299.9	$	600.7	$	583.8	$	376.7	$	183.2	$	87.9	$	128.5	$	5,260.7

Customer retail:
Fleet:
Performing			$	2,140.6	$	1,418.7	$	830.5	$	398.9	$	185.7	$	39.8	$	5,014.2
Watch				2.5		5.6		5.4		1.8		.5		.9		16.7
At-risk				19.3		148.5		61.2		29.3		3.1		.7		262.1
			$	2,162.4	$	1,572.8	$	897.1	$	430.0	$	189.3	$	41.4	$	5,293.0
Owner/operator:
Performing			$	249.2	$	109.0	$	90.6	$	67.0	$	25.9	$	5.4	$	547.1
Watch				.5		2.5		1.6		.9		.4				5.9
At-risk				.5		.8		1.1		.3		.4				3.1
			$	250.2	$	112.3	$	93.3	$	68.2	$	26.7	$	5.4	$	556.1
Total customer retail			$	2,412.6	$	1,685.1	$	990.4	$	498.2	$	216.0	$	46.8	$	5,849.1
Total	$	3,299.9	$	3,013.3	$	2,268.9	$	1,367.1	$	681.4	$	303.9	$	175.3	$	11,109.8


Twelve Months Ended December 31, 2024	Revolving Loans	2024		2023		2022		2021		2020		Prior		Total
Gross charge-offs:
Customer retail:
Fleet		$	.2	$	4.5	$	6.1	$	1.2	$	1.6	$	5.8	$	19.4
Owner/operator					1.5		1.8		.5		.7		.5		5.0
Total		$	.2	$	6.0	$	7.9	$	1.7	$	2.3	$	6.3	$	24.4

- 11 -

PACCAR FINANCIAL CORP.


Notes to Financial Statements (Unaudited)	(Millions of Dollars)

The tables below summarize the amortized cost basis of the Company’s finance receivables by aging category. In determining past due status, the Company considers the entire contractual account balance past due when any installment is over 30 days past due. Substantially all customer accounts that were greater than 30 days past due prior to credit modification became current upon modification for aging purposes.


	Dealer				Customer Retail
							Owner/
At June 30, 2025	Wholesale		Retail		Fleet		Operator		Total
Current and up to 30 days past due	$	2,990.1	$	2,131.6	$	5,457.8	$	568.2	$	11,147.7
31 – 60 days past due						49.4		4.9		54.3
Greater than 60 days past due						8.0		4.5		12.5
	$	2,990.1	$	2,131.6	$	5,515.2	$	577.6	$	11,214.5


	Dealer				Customer Retail
							Owner/
At December 31, 2024	Wholesale		Retail		Fleet		Operator	Total
Current and up to 30 days past due	$	3,070.1	$	2,190.6	$	5,203.5	$

PACCAR FINANCIAL CORP 10-Q