PACCAR Inc.

Good morning, and welcome to PACR's third quarter 2025 earnings conference call. All lines will be in listen and learning mode until the question and answer session. Today's call is being recorded, and if anyone has an objection, they should disconnect at this time. And I'd like to introduce Mr. Ken Hastings, PACR's Director of Investor Relations. Mr. Hastings, please go ahead.

Good morning. We would like to welcome those listening by phone and those on the webcast. My name is Ken Hastings, PACRAS Director of Investor Relations, and joining me this morning are Preston Fite, Chief Executive Officer, Kevin Boehne, Executive Vice President, and Bryce Poplosky, Senior Vice President and CFO. As with prior conference calls, we ask that any members of the media on the line participate in a listen-only mode. Certain information presented today will be forward-looking and involve risks and uncertainties that may affect expected results. For additional information, please see our SEC filings at the investor relations page at paccar.com. I would now like to introduce Preston Fife.

Hey, thanks, Ken. And good morning, everyone. Kevin, Bryce, Ken, and I will update you on our good third quarter financial results and business highlights. I'd like to start by thanking our wonderful employees who deliver PACCAR's high-quality trucks and transportation solutions to our customers all around the world. and I'm especially appreciative of their efforts in these dynamic market conditions. PACCAR delivered good revenues and net income in the third quarter of 2025. Peterbilt, Kenworth, and Doft Trucks contributed to the good results. PACCAR Parts and PACCAR Financial Services continued to deliver excellent performance and strong profits. PACCAR achieved revenues of $6.7 billion and net income of $590 million. Packard Parts achieved record quarterly revenues of $1.72 billion and excellent quarterly pre-tax income of $410 million. Parts revenue grew 4% in the quarter compared to the same period last year. Packard Financial also had a very good quarter, achieving pre-tax income of $126 million. We estimate this year's US and Canadian Class 8 market to be in a range of 230,000 to 245,000 trucks. and next year to be in a range of 230,000 to 270,000. Customer demand in the less than truckload and vocational segments is good. The truckload market continues to have uncertainty. Next year's U.S. and Canadian truck market could be higher than this year as we realize clarity around tariffs, emissions policy, and potential improvements in the freight market. In Europe, The DOF XF truck was honored as the Fleet Truck of the Year in the UK due to its best-in-class fuel efficiency and driver comfort. We project this year's European above 16-ton market to be in a range of 275,000 to 295,000 vehicles. The 2026 market is expected to be in the range of 270,000 to 300,000. We estimate this year's South American above 16-ton truck market to be in the range of 95,000 to 105,000 vehicles, and in a similar range next year. PACCAR's premium trucks are performing well for customers in South America, especially in the important Brazilian market. PACCAR delivered 31,900 trucks during the third quarter and anticipates delivering around 32,000 in the fourth quarter. More production days in Europe will be offset by fewer production days due to normal holidays in North America. Packard's truck parts and other gross margins were 12.5% in the third quarter. Margins were affected by the August steel and aluminum tariff increases and the tariff costs on trucks that were built in the United States. Looking ahead, fourth quarter margins could be around 12% as tariffs peak in October. However, the new Section 232 on medium and heavy trucks that will become effective November 1st will be good for Packard's customers as it will reduce tariff costs and bring clarity to the market. PACCAR is proud to produce over 90% of its U.S. sold trucks in Texas, Ohio, and Washington. We look forward to improving market conditions. Tariff costs will begin to reduce as we head towards the end of the year, and PACCAR's continued strong performance. Kevin Vaney will now provide an update on PACCAR parts, PACCAR financial services, and other business highlights. Kevin?