10-Q

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 March 31, 2026

or

☐ 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 April 28, 2026

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 Months Ended March 31, 2026 and 2025 (Unaudited)	3
	Balance Sheets — March 31, 2026 (Unaudited) and December 31, 2025	4
	Statements of Cash Flows — Three Months Ended March 31, 2026 and 2025 (Unaudited)	5
	Statements of Stockholder’s Equity — Three Months Ended March 31, 2026 and 2025 (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	26
PART II.	OTHER INFORMATION:	27
ITEM 1.	LEGAL PROCEEDINGS	27
ITEM 1A.	RISK FACTORS	27
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS AND ISSUER PURCHASES OF EQUITY SECURITIES	27
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	27
ITEM 4.	MINE SAFETY DISCLOSURES	27
ITEM 5.	OTHER INFORMATION	27
ITEM 6.	EXHIBITS	27
EXHIBIT INDEX		28
SIGNATURES		29

PACCAR FINANCIAL CORP.

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

STATEMENTS OF COMPREHENSIVE INCOME AND RETAINED EARNINGS (Unaudited)

	Three Months Ended
	March 31
(Millions of Dollars)		2026	2025
Interest and fee income	$	180.8	$	190.0
Operating lease and rental revenues		30.4		38.1
Used truck sales and other revenues		6.2		14.8
TOTAL INTEREST AND OTHER REVENUES		217.4		242.9
Interest and other borrowing costs		110.4		118.5
Depreciation and other rental expenses		25.7		35.1
Cost of used truck sales and other expenses		5.1		14.1
Selling, general and administrative expenses		16.6		17.1
Provision for losses on receivables		14.2		5.5
TOTAL EXPENSES		172.0		190.3
INCOME BEFORE INCOME TAXES		45.4		52.6
Income taxes		11.4		12.1
NET INCOME	$	34.0	$	40.5
COMPREHENSIVE INCOME	$	34.8	$	37.6
RETAINED EARNINGS AT BEGINNING OF PERIOD	$	1,913.6	$	1,769.4
RETAINED EARNINGS AT END OF PERIOD	$	1,947.6	$	1,809.9

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.

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PACCAR FINANCIAL CORP.

BALANCE SHEETS
	March 31		December 31
		2026	2025*
(Millions of Dollars)	(Unaudited)
ASSETS
Cash	$	69.5	$	87.7
Finance and other receivables, net of allowance for losses    (2026 - $82.5 and 2025 - $83.8)		10,800.7		11,016.5
Due from PACCAR and affiliates		1,756.8		1,854.7
Equipment on operating leases, net of accumulated depreciation    (2026 - $259.6 and 2025 - $261.5)		334.2		356.2
Other assets		269.7		243.0
TOTAL ASSETS	$	13,230.9	$	13,558.1
LIABILITIES
Accounts payable, accrued expenses and other	$	488.3	$	474.3
Due to PACCAR and affiliates		63.7		21.5
Commercial paper		2,450.1		2,753.7
Medium-term notes		7,580.5		7,681.4
Deferred taxes and other liabilities		458.0		476.8
TOTAL LIABILITIES		11,040.6		11,407.7
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		192.7		187.6
Retained earnings		1,947.6		1,913.6
Accumulated other comprehensive income		4.5		3.7
TOTAL STOCKHOLDER'S EQUITY		2,190.3		2,150.4
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY	$	13,230.9	$	13,558.1

* The December 31, 2025 balance sheet has been derived from audited financial statements.

See Notes to Financial Statements.

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PACCAR FINANCIAL CORP.

STATEMENTS OF CASH FLOWS (Unaudited)
	Three Months Ended
	March 31
(Millions of Dollars)		2026		2025
OPERATING ACTIVITIES
Net income	$	34.0		$	40.5
Items included in net income not affecting cash:
Depreciation and amortization		26.9			35.7
Provision for losses on receivables		14.2			5.5
Deferred taxes		(9.5	)		(5.9	)
Administrative fees for services from PACCAR		5.1			5.4
Change in tax-related balances with PACCAR		26.6			20.6
(Decrease) increase in payables and other		(3.9	)		29.9
NET CASH PROVIDED BY OPERATING ACTIVITIES		93.4			131.7
INVESTING ACTIVITIES
Finance and other receivables originated		(588.0	)		(668.0	)
Collections on finance and other receivables		669.3			613.2
Net decrease in wholesale receivables		110.4			58.5
Loans to PACCAR and affiliates					(197.0	)
Collections on loans from PACCAR and affiliates		96.0			100.0
Net increase in other receivables to PACCAR and affiliates					(97.0	)
Acquisitions of equipment for operating leases		(8.5	)		(9.2	)
Proceeds from disposals of equipment		28.2			75.1
Other, net		(13.9	)		(7.5	)
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES		293.5			(131.9	)
FINANCING ACTIVITIES
Net decrease in short-term commercial paper		(303.6	)		(245.7	)
Proceeds from medium-term notes		398.5			597.9
Payments of medium-term notes		(500.0	)		(400.0	)
NET CASH USED IN FINANCING ACTIVITIES		(405.1	)		(47.8	)
NET DECREASE IN CASH		(18.2	)		(48.0	)
CASH AT BEGINNING OF PERIOD		87.7			83.1
CASH AT END OF PERIOD	$	69.5		$	35.1

See Notes to Financial Statements.

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PACCAR FINANCIAL CORP.

STATEMENTS OF STOCKHOLDER'S EQUITY (Unaudited)
	Three Months Ended
	March 31
(Millions of Dollars)		2026	2025
PREFERRED STOCK, $100 par value
Balance at beginning of period	$	31.0	$	31.0
Balance at end of period		31.0		31.0
COMMON STOCK, $100 par value
Balance at beginning of period		14.5		14.5
Balance at end of period		14.5		14.5
ADDITIONAL PAID-IN CAPITAL
Balance at beginning of period		187.6		178.7
Investments from PACCAR		5.1		5.4
Balance at end of period		192.7		184.1
RETAINED EARNINGS
Balance at beginning of period		1,913.6		1,769.4
Net income		34.0		40.5
Balance at end of period		1,947.6		1,809.9
ACCUMULATED OTHER COMPREHENSIVE INCOME
Accumulated unrealized net gain (loss) on derivative contracts:
Balance at beginning of period		3.7		7.9
Net unrealized gain (loss)		.8		(2.9	)
Balance at end of period		4.5		5.0
TOTAL STOCKHOLDER'S EQUITY	$	2,190.3	$	2,044.5
See Notes to Financial Statements.

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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 three months ended March 31, 2026 are not necessarily indicative of the results that may be expected for the year ending December 31, 2026. 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, 2025.

New Accounting Pronouncements:

In November 2024, the Financial Accounting Standards Board (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.

The Company adopted the following standards on January 1, 2026, which had no impact on the Company’s financial statements.

STANDARD	DESCRIPTION
2025-05	Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets
2025-09	Derivatives and Hedging (Topic 815): Hedge Accounting Improvements

NOTE B – Finance and Other Receivables

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

	March 31			December 31
		2026		2025
Retail loans	$	6,206.8		$	6,256.7
Retail financing leases		1,801.6			1,850.2
Dealer wholesale financing		2,330.4			2,440.8
Dealer master notes		502.0			510.4
Operating lease receivables and other		42.4			42.2
		10,883.2			11,100.3
Less allowance for credit losses:
Loans and leases		(81.0	)		(82.2	)
Dealer wholesale financing		(1.1	)		(1.1	)
Operating lease receivables and other		(.4	)		(.5	)
	$	10,800.7		$	11,016.5

Interest income recognized on finance leases was $26.8 and $26.9 for the three months ended March 31, 2026 and 2025 respectively. 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 March 31, 2026 or December 31, 2025. Recognition is resumed if the receivable becomes current by the payment of all amounts due under the terms of the existing contract

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PACCAR FINANCIAL CORP.

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

and collection of remaining amounts is considered probable (if not 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 six months in 2026 and four months in 2025, and did not have a significant effect on the weighted average term or interest rate of the total portfolio at March 31, 2026 and December 31, 2025.

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.

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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:

	2026
	Dealer				Customer
	Wholesale		Retail		Retail			Other*			Total
Balance at January 1	$	1.1	$	1.5	$	80.7		$	.5		$	83.8
Provision for losses						14.0			.2			14.2
Charge-offs						(15.7	)		(.3	)		(16.0	)
Recoveries						.5						.5
Balance at March 31	$	1.1	$	1.5	$	79.5		$	.4		$	82.5

	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						5.5					5.5
Charge-offs						(11.7	)				(11.7	)
Recoveries						.2					.2
Balance at March 31	$	1.1	$	1.1	$	64.7		$	1.5	$	68.4

* Operating lease and other trade receivables.

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PACCAR FINANCIAL CORP.

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

Charge-offs, net of recoveries, increased to $15.5 in the first three months of 2026 from $11.5 in the first three months of 2025. The increase in charge-offs was driven by a soft truckload market and included loss on one large fleet customer which was provisioned for previously.

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 March 31, 2026 or December 31, 2025. 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 March 31, 2026	Revolving Loans		2026		2025		2024		2023		2022		Prior		Total
Amortized cost:
Dealer:
Wholesale:
Performing	$	2,325.1													$	2,325.1
Watch		5.3														5.3
	$	2,330.4													$	2,330.4
Retail:
Performing	$	229.4	$	80.1	$	494.6	$	472.5	$	413.5	$	264.7	$	198.8	$	2,153.6
	$	229.4	$	80.1	$	494.6	$	472.5	$	413.5	$	264.7	$	198.8	$	2,153.6
Total dealer	$	2,559.8	$	80.1	$	494.6	$	472.5	$	413.5	$	264.7	$	198.8	$	4,484.0
Customer retail:
Fleet:
Performing			$	367.8	$	2,070.8	$	1,549.5	$	853.9	$	371.1	$	132.1	$	5,345.2
Watch				9.4		64.9		21.0		37.2		31.7		13.0		177.2
At-risk				1.2		20.9		46.9		121.0		30.1		4.7		224.8
			$	378.4	$	2,156.6	$	1,617.4	$	1,012.1	$	432.9	$	149.8	$	5,747.2
Owner/operator:
Performing			$	57.1	$	264.9	$	158.1	$	60.1	$	37.7	$	19.3	$	597.2
Watch						1.5		1.7		2.4		.8		.9		7.3
At-risk						1.8		1.0		.4		1.3		.6		5.1
			$	57.1	$	268.2	$	160.8	$	62.9	$	39.8	$	20.8	$	609.6
Total customer retail			$	435.5	$	2,424.8	$	1,778.2	$	1,075.0	$	472.7	$	170.6	$	6,356.8
Total	$	2,559.8	$	515.6	$	2,919.4	$	2,250.7	$	1,488.5	$	737.4	$	369.4	$	10,840.8

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PACCAR FINANCIAL CORP.

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

Three Months Ended March 31, 2026	Revolving Loans	2026	2025		2024		2023		2022		Prior		Total
Gross charge-offs:
Customer retail:
Fleet			$	1.6	$	1.1	$	6.7	$	3.0	$	1.6	$	14.0
Owner/operator				.1		.6		.3		.6		.1		1.7
Total			$	1.7	$	1.7	$	7.0	$	3.6	$	1.7	$	15.7

At December 31, 2025	Revolving Loans		2025		2024		2023		2022		2021		Prior		Total
Amortized cost:
Dealer:
Wholesale:
Performing	$	2,437.6													$	2,437.6
Watch		3.2														3.2
	$	2,440.8													$	2,440.8
Retail:
Performing	$	228.5	$	517.9	$	497.2	$	444.0	$	285.8	$	127.5	$	106.7	$	2,207.6
	$	228.5	$	517.9	$	497.2	$	444.0	$	285.8	$	127.5	$	106.7	$	2,207.6
Total dealer	$	2,669.3	$	517.9	$	497.2	$	444.0	$	285.8	$	127.5	$	106.7	$	4,648.4
Customer retail:
Fleet:
Performing			$	2,188.6	$	1,693.1	$	973.7	$	463.2	$	145.8	$	38.7	$	5,503.1
Watch				48.3		16.0		51.6		40.7		14.8		.6		172.0
At-risk				10.4		14.8		84.2		21.0		2.2		.6		133.2
			$	2,247.3	$	1,723.9	$	1,109.5	$	524.9	$	162.8	$	39.9	$	5,808.3
Owner/operator:
Performing			$	275.6	$	168.3	$	68.3	$	44.4	$	23.7	$	5.0	$	585.3
Watch				2.4		2.2		1.8		2.4		.9		.2		9.9
At-risk				1.2		1.6		.8		2.0		.4		.2		6.2
			$	279.2	$	172.1	$	70.9	$	48.8	$	25.0	$	5.4	$	601.4
Total customer retail			$	2,526.5	$	1,896.0	$	1,180.4	$	573.7	$	187.8	$	45.3	$	6,409.7
Total	$	2,669.3	$	3,044.4	$	2,393.2	$	1,624.4	$	859.5	$	315.3	$	152.0	$	11,058.1

Twelve Months Ended December 31, 2025	Revolving Loans	2025		2024		2023		2022		2021		Prior		Total
Gross charge-offs:
Customer retail:
Fleet				$	6.2	$	21.2	$	9.9	$	2.4	$	.2	$	39.9
Owner/operator		$	.2		1.2		1.5		1.3		.2		.2		4.6
Total		$	.2	$	7.4	$	22.7	$	11.2	$	2.6	$	.4	$	44.5

- 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 March 31, 2026	Wholesale		Retail		Fleet		Operator		Total
Current and up to 30 days past due	$	2,330.4	$	2,153.6	$	5,600.2	$	597.7	$	10,681.9
31 – 60 days past due						47.4		6.6		54.0
Greater than 60 days past due						99.6		5.3		104.9
	$	2,330.4	$	2,153.6	$	5,747.2	$	609.6	$	10,840.8

	Dealer				Customer Retail
							Owner/
At December 31, 2025	Wholesale		Retail		Fleet		Operator		Total
Current and up to 30 days past due	$	2,440.8	$	2,207.6	$	5,657.6	$	586.0	$	10,892.0
31 – 60 days past due						71.0		9.1		80.1
Greater than 60 days past due						79.7		6.3		86.0
	$	2,440.8	$	2,207.6	$	5,808.3	$	601.4	$	11,058.1

The amortized cost basis of finance receivables that are on non-accrual status was as follows:

	Dealer		Customer Retail
					Owner/
At March 31, 2026	Wholesale	Retail	Fleet		Operator		Total
Amortized cost basis with a specific reserve			$	207.4	$	4.3	$	211.7
Amortized cost basis with no specific reserve				17.3		.8		18.1
			$	224.7	$	5.1	$	229.8

	Dealer		Customer Retail
					Owner/
At December 31, 2025	Wholesale	Retail	Fleet		Operator		Total
Amortized cost basis with a specific reserve			$	132.5	$	5.5	$	138.0
Amortized cost basis with no specific reserve				.7		.7		1.4
			$	133.2	$	6.2	$	139.4

The increase in amortized cost basis of finance receivables on non-accrual status at March 31, 2026 compared to December 31, 2025 primarily reflects an increase in finance receivables from customers experiencing financial difficulty whose accounts were modified during the first quarter of 2026, driven by soft freight market conditions.

Interest income recognized on a cash basis for finance receivables that are on non-accrual status was as follows:

	Three Months Ended
	March 31
	2026	2025
Fleet		$	3.8
Owner/operator			.1
		$	3.9

- 12 -

PACCAR FINANCIAL CORP.

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

Customers Experiencing Financial Difficulty

The Company modified $127.7 and $5.3 of finance receivables for customers experiencing financial difficulty during the first three months of 2026 and 2025, respectively. Generally, other than insignificant term extensions and payment delays are modifications extending terms and payment delays for more than three months. The ending amortized cost basis of finance receivables for other than insignificant term extensions and payment delays for customers in financial difficulty was as follows for the three months ended March 2026 and 2025:

At March 31,		2026			2025
Customer Retail:
Fleet	$	76.3		$	4.5
Owner/operator					.2
	$	76.3		$	4.7
Annualized % of total retail portfolio		3.8	%		.3	%

These credit modifications generally granted customers additional time to pay. The financial effects of the term extensions added a weighted average of twelve and six months to the life of the modified contracts in the three months ended March 31, 2026 and 2025, respectively. The higher level of modified contracts at March 31, 2026 also reflected a modification for one large fleet customer that included a combination of principal forgiveness and additional time to pay. The financial effect of this modification was not significant to the allowance for credit losses.

The ending amortized cost basis and performance of finance receivables modified during the previous twelve months ended March 31, 2026 and March 31, 2025 was as follows:

At March 31,		2026		2025
Customer Retail:
Fleet
Current and up to 30 days past due	$	79.6	$	146.0
Greater than 60 days past due		33.9		.1
Owner/operator
Current and up to 30 days past due		.1		.1
Greater than 60 days past due		.1
	$	113.7	$	146.2

The greater than 60 days past due at March 31, 2026 increased to $33.9 and was primarily due to one large fleet customer that became over 30 days past due during the fourth quarter of 2025. Contract modifications with customers experiencing financial difficulty during the previous twelve months that became over 30 days past due in the first quarter of 2026 and 2025 were not significant.

The Company continues to monitor the performance of finance receivables that are modified with customers experiencing financial difficulty. The effect of modifications is included in the Company's historical loss information used to determine the allowance for credit losses for the three months ended March 31, 2026 and 2025. For certain modifications to customers experiencing financial difficulties that are at-risk at March 31, 2026 and December 31, 2025, the allowance for credit loss is based on the value of underlying collateral or a discounted cash flow analysis.

Repossessions

When the Company determines that a customer is not likely to meet its contractual commitments, the Company repossesses the vehicles which serve as collateral for the loans, finance leases and equipment under operating lease. The Company records the vehicles as used truck inventory included in Other assets on the Balance Sheets. The balance of repossessed units was $51.3 at March 31, 2026 and $64.6 at December 31, 2025.

Proceeds from sales of repossessed assets were $10.4 and $12.1 for the three months ended March 31, 2026 and 2025, respectively. These amounts are included in Proceeds from disposals of equipment on the Statements of Cash Flows. Write-downs of repossessed

- 13 -

PACCAR FINANCIAL CORP.

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

equipment under operating leases are recorded as impairments and included in Depreciation and other rental expenses on the Statements of Comprehensive Income and Retained Earnings.

NOTE C – Transactions with PACCAR and Affiliates

The Company and PACCAR are parties to a Support Agreement that obligates PACCAR to provide, when required, financial assistance to the Company to ensure that the Company maintains a ratio of earnings to fixed charges (as defined in the Support Agreement) of at least 1.25 to 1 for any fiscal year. The required ratio for the three months ended March 31, 2026 and full year 2025 was met without assistance. The Support Agreement also requires PACCAR to own, directly or indirectly, all outstanding voting stock of the Company.

Periodically, the Company makes loans to, borrows from and has intercompany transactions with PACCAR. In addition, the Company periodically loans funds to certain foreign finance and leasing affiliates of PACCAR. These affiliates have Support Agreements with PACCAR, similar to the Company’s Support Agreement with PACCAR. The foreign affiliates operate in the United Kingdom, the Netherlands, Mexico, Canada and Australia. Loans to these foreign affiliates during 2026 and 2025 were denominated in United States dollars. The foreign affiliates primarily provide financing and leasing of PACCAR manufactured trucks and related equipment sold through the DAF, Kenworth, and Peterbilt independent dealer networks in Europe, Mexico, Canada and Australia. The Company will not make loans to the foreign affiliates in excess of the equivalent of $1,100.0 U.S. dollars, unless the amount in excess of such limit is guaranteed by PACCAR. The Company periodically reviews the funding alternatives for these affiliates, and these limits may be revised in the future.

Amounts outstanding at March 31, 2026 and December 31, 2025, including balances with foreign finance affiliates operating in the United Kingdom, the Netherlands, Mexico, Canada and Australia, are summarized below:

	March 31		December 31
		2026	2025
Due from PACCAR and affiliates
Loans due from PACCAR	$	1,084.6	$	1,129.6
Loans due from foreign finance affiliates		651.0		702.0
Receivables		21.2		23.1
	$	1,756.8	$	1,854.7
Due to PACCAR and affiliates
Tax-related payable due to PACCAR	$	32.6	$	6.0
Payables		31.1		15.5
	$	63.7	$	21.5

The Company is included in the consolidated federal income tax return of PACCAR. The tax-related payable due to PACCAR represents the related tax provision to be settled with PACCAR.

PACCAR charges the Company for certain administrative services it provides. These costs were charged to the Company based upon the Company’s specific use of the services and PACCAR’s cost.

The Company’s principal office is located in the corporate headquarters building of PACCAR (owned by PACCAR). The Company also leases office space from five facilities leased by PACCAR. Lease payments for the use of these facilities are included in the above-mentioned administrative services charged by PACCAR.

The Company’s employees and PACCAR employees are covered by a defined benefit pension plan sponsored by PACCAR. The assets and liabilities of the plan are reflected on the balance sheet of PACCAR. PACCAR contributes to the plan and allocates the expenses to the Company based principally on the number of eligible plan participants. Expenses for the defined benefit pension plan are included in Selling, general and administrative expenses.

The Company’s employees and PACCAR employees are also covered by a defined contribution plan sponsored by PACCAR. Expenses incurred by the Company for the defined contribution plan benefits are based on the actual contribution made on behalf of the participating employees and are included in Selling, general and administrative expenses.

- 14 -

PACCAR FINANCIAL CORP.

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

NOTE D – Stockholder’s Equity

Preferred Stock

The Company’s Articles of Incorporation provide that the 6% noncumulative, nonvoting preferred stock (100% owned by PACCAR) is redeemable only at the option of the Company’s Board of Directors.

Comprehensive Income

The components of comprehensive income are as follows:

	Three Months Ended
	March 31
		2026	2025
Net income	$	34.0	$	40.5
Other comprehensive income (loss)
Derivative contracts increase (decrease)		.8		(2.9	)
Total comprehensive income	$	34.8	$	37.6

Accumulated Other Comprehensive Income

Accumulated other comprehensive income (AOCI) of $4.5 and $3.7 at March 31, 2026 and December 31, 2025, respectively, is comprised of the unrealized net gain (loss) on derivative contracts, net of taxes. Changes in and reclassifications out of AOCI during the periods are as follows:

	Three Months Ended
	March 31
		2026		2025
Balance at beginning of period	$	3.7		$	7.9
Amounts recorded in AOCI
Unrealized gain (loss) on derivative contracts		1.9			(2.5	)
Income tax effect		(.5	)		.4
Amounts reclassified out of AOCI
Interest and other borrowing costs		(.8	)		(1.3	)
Income tax effect		.2			.5
Net other comprehensive income (loss)		.8			(2.9	)
Balance at end of period	$	4.5		$	5.0

NOTE E – Fair Value Measurements

Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Inputs to valuation techniques used to measure fair value are either observable or unobservable. These inputs have been categorized into the fair value hierarchy described below:

Level 1 – Valuations are based on quoted prices that the Company has the ability to obtain in actively traded markets for identical assets or liabilities. Since valuations are based on quoted prices that are readily and regularly available in an active market or exchange traded market, valuation of these instruments does not require a significant degree of judgment.

Level 2 – Valuations are based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market.

Level 3 – Valuations are based on model-based techniques for which some or all of the assumptions are obtained from indirect market information that is significant to the overall fair value measurement and which require a significant degree of management judgment.

- 15 -

PACCAR FINANCIAL CORP.

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

Assets and Liabilities Subject to Non-recurring and Recurring Fair Value Measurement

Impaired loans and used trucks held for sale are measured on a non-recurring basis. Derivative contracts are measured on a recurring basis. The Company’s assets and liabilities subject to fair value measurements are as follows:

	March 31		December 31
Level 2		2026	2025
Assets:
Impaired loans, net of specific reserves (2026 - $6.5 and 2025 - $2.6)	$	38.1	$	4.1
Used trucks held for sale		16.9		17.0
Derivative contracts		2.8		9.9
Liabilities:
Derivative contracts	$	1.6	$	2.2

The Company uses the following methods and assumptions to measure fair value for assets and liabilities subject to non-recurring and recurring fair value measurements:

Impaired Loans: Impaired loans that are individually evaluated are generally considered collateral dependent. Accordingly, the evaluation of individual reserves on such loans considers the fair value of the associated collateral (estimated sales proceeds less the costs to sell).

Used Trucks Held for Sale: The carrying amount of used trucks held for sale is written down as necessary to reflect the fair value less costs to sell. The Company determines the fair value of used trucks from a pricing matrix, which is based on the market approach. The significant observable inputs into the valuation model are recent sales prices of comparable units sold individually, which is the lowest unit of account, and the condition of the vehicles. Used truck impairments related to units held at March 31, 2026 and 2025 were $.8 and $1.0 during the first three months of 2026 and 2025, respectively. These assets, which are shown in the above table when they are written down to fair value less costs to sell, are categorized as Level 2 and are included in Other assets on the Balance Sheets.

Derivative Financial Instruments: The Company’s derivative financial instruments consist of interest-rate swaps and are carried at fair value. These derivative contracts are traded over the counter and their fair value is determined using industry standard valuation models, which are based on the income approach (i.e., discounted cash flows). The significant observable inputs into the valuation models include interest rates, yield curves and credit default swap spreads. These contracts are categorized as Level 2 and are included in Other assets and Accounts payable, accrued expenses and other on the Balance Sheets.

Fair Value Disclosure of Other Financial Instruments

For financial instruments that are not recognized at fair value, the Company uses the following methods and assumptions to determine the fair value. These instruments are categorized as Level 2, except cash which is categorized as Level 1 and fixed rate loans which are categorized as Level 3.

Cash: Carrying amounts approximate fair value.

Net Receivables: For floating rate loans, dealer wholesale financing and operating lease and other trade receivables, carrying values approximate fair values. For fixed rate loans, fair values are estimated using the income approach by discounting cash flows to their present value based on assumptions regarding credit and liquidity risks to approximate current rates for comparable loans. Finance lease receivables and related allowance for credit losses have been excluded from the accompanying table.

Commercial Paper and Medium-Term Notes: The carrying amounts of the Company’s commercial paper and variable medium-term notes approximate fair value. For fixed rate debt, fair values are estimated using the income approach by discounting cash flows to their present value based on current rates for comparable debt.

- 16 -

PACCAR FINANCIAL CORP.

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

The Company’s estimate of fair value for fixed rate loans and debt that are not carried at fair value was as follows:

	March 31, 2026				December 31, 2025
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Assets:
Due from PACCAR	$	989.6	$	999.6	$	1,034.6	$	1,052.4
Due from foreign finance affiliates		651.0		657.4		702.0		713.7
Fixed rate loans		6,391.2		6,486.4		6,536.0		6,726.7
Liabilities:
Fixed rate debt	$	7,597.6	$	7,648.5	$	7,699.4	$	7,803.6

NOTE F – Derivative Financial Instruments

As part of its risk management strategy, the Company enters into derivative contracts to hedge against interest-rate risk. Certain derivative instruments designated as either cash flow hedges or fair value hedges are subject to hedge accounting. Derivative instruments that are not subject to hedge accounting are held as derivatives not designated as hedging instruments. The Company’s policies prohibit the use of derivatives for speculation or trading. At the inception of each hedge relationship, the Company documents its risk management objectives, procedures and accounting treatment.

All of the Company’s interest-rate contracts are transacted under International Swaps and Derivatives Association (ISDA) master agreements. Each agreement permits the net settlement of amounts owed in the event of default and certain other termination events. For derivative financial instruments, the Company has elected not to offset derivative positions in the balance sheet with the same counterparty under the same agreements and is not required to post or receive collateral. Exposure limits and minimum credit ratings are used to minimize the risks of counterparty default. The Company’s maximum exposure to potential default of its derivative counterparties is limited to the asset position of its derivative portfolio. The asset position of the Company’s derivative portfolio was $2.8 at March 31, 2026.

The Company assesses hedges at inception and on an ongoing basis to determine if the designated derivatives are highly effective in offsetting changes in fair values or cash flows of the hedged items. Hedge accounting is discontinued prospectively when the Company determines that a derivative financial instrument has ceased to be a highly effective hedge. Cash flows from derivative instruments are included in operating activities in the Statements of Cash Flows.

Interest-rate contracts involve the exchange of fixed for floating rate or floating for fixed rate interest payments based on the contractual notional amounts in a single currency. The Company is exposed to interest-rate risk caused by market volatility as a result of its borrowing activities. The objective of these contracts is to mitigate the fluctuations on earnings, cash flows and fair value of borrowings. Net amounts paid or received are reflected as adjustments to interest expense.

At March 31, 2026, the notional amount of these contracts totaled $1,594.6 with amounts expiring over the next 8.0 years. Notional maturities for all interest-rate contracts are $305.0 for the remainder of 2026, $106.1 for 2027, $188.5 for 2028, $583.0 for 2029, nil for 2030 and $412.0 thereafter.

The following table presents the balance sheet classification, fair value and gross and net amounts of derivative financial instruments:

	March 31, 2026						December 31, 2025
Interest-rate contracts:	Assets			Liabilities			Assets			Liabilities
Other assets	$	2.8					$	9.9
Accounts payable, accrued expenses and other				$	1.6					$	2.2
Gross amounts recognized in Balance Sheets		2.8			1.6			9.9			2.2
										-
Less amounts not offset in financial instruments		(.7	)		(.7	)		(1.1	)		(1.1	)
Pro forma net amount	$	2.1		$	.9		$	8.8		$	1.1

- 17 -

PACCAR FINANCIAL CORP.

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

Cash Flow Hedges

Certain of the Company’s interest-rate contracts have been designated as cash flow hedges. Changes in the fair value of derivatives designated as cash flow hedges are recorded in AOCI. The maximum length of time over which the Company is hedging its exposure to the variability in future cash flows is 6.7 years.

Amounts in AOCI are reclassified into net income in the same period in which the hedged transaction affects earnings and are presented in the same income statement line as the earnings effect of the hedged transaction. The amount of gain recorded in AOCI at March 31, 2026 that is estimated to be reclassified to interest expense in the following 12 months if interest rates remain unchanged is approximately $2.5, net of taxes. The fixed interest earned on finance receivables will offset the amount recognized in interest expense, resulting in a stable interest margin consistent with the Company’s interest-rate risk management strategy.

Fair Value Hedges

Changes in the fair value of derivatives designated as fair value hedges are recorded in earnings together with the changes in fair value of the hedged item attributable to the risk being hedged. The following table presents the amounts recorded on the Balance Sheets related to cumulative basis adjustments for fair value hedges:

	March 31		December 31
	2026		2025
Medium-term notes:
Carrying amount of the hedged liabilities	$	719.4	$	654.3
Cumulative basis adjustment included in the carrying amount		1.4		4.3

The above table excludes the cumulative basis adjustments on discontinued hedge relationships of $.7 and $.1 as of March 31, 2026 and December 31, 2025, respectively.

The following table presents the amount of expense (income) on cash flow and fair value hedges recognized in Interest and other borrowing costs on the Statements of Comprehensive Income and Retained Earnings:

	Three Months Ended
	March 31
		2026		2025
Loss (gain) on fair value hedges
Derivatives	$	2.5		$	(10.0	)
Hedged items		(2.2	)		10.9
Gain on cash flow hedges
Reclassified from AOCI into income		(.8	)		(1.3	)
	$	(.5	)	$	(.4	)

NOTE G – Income Taxes

The Company’s effective income tax rate for the first quarter of 2026 was 25.1% compared to 23.0% for the first quarter of 2025, reflecting changes in the state tax expense during 2026 as compared to 2025.

The Company is included in the consolidated federal income tax return of PACCAR. Federal income taxes for the Company are determined on a separate return basis. State income taxes, where the Company files combined tax returns with PACCAR, are determined on a blended statutory rate, which is substantially the same as the rate computed on a separate return basis.

NOTE H – Segment and Related Information

The Company is a single reportable segment entity and derives its earnings primarily from financing or leasing of PACCAR products and services provided to truck customers and dealers in the United States. The Company’s chief operating decision maker is the Chief Executive Officer (CEO). The CEO evaluates the performance of the Company based on income before income taxes. The significant expenses reviewed by the CEO are consistent with those presented on the Company’s Statements of Comprehensive Income and Retained Earnings. Refer to the Company’s financial statements under this Part I, Item 1 for further information.

- 18 -

PACCAR FINANCIAL CORP.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Millions of Dollars)

Results of Operations

	Three Months Ended
	March 31
		2026	2025		% Change
New business volume by product:
Retail loans and finance leases	$	547.5	$	589.2		(7	)
Equipment on operating leases		8.5		9.2		(8	)
Dealer master notes		37.5		68.1		(45	)
	$	593.5	$	666.5		(11	)
New loan and lease unit volume:
Retail loans and finance leases		3,650		4,050		(10	)
Equipment on operating leases		50		50
		3,700		4,100		(10	)
Average earning assets by product:
Retail loans and finance leases	$	7,995.2	$	7,482.7		7
Dealer wholesale financing		2,353.5		3,018.3		(22	)
Dealer master notes		501.0		532.0		(6	)
Average finance receivables		10,849.7		11,033.0		(2	)
Equipment on operating leases		383.9		548.0		(30	)
	$	11,233.6	$	11,581.0		(3	)
Revenue by product:
Retail loans and finance leases	$	146.5	$	144.1		2
Equipment on operating leases		30.4		38.1		(20	)
Dealer wholesale financing		28.0		38.9		(28	)
Dealer master notes		6.3		7.0		(10	)
Used truck sales and other revenues		6.2		14.8		(58	)
		217.4		242.9		(10	)
Income before income taxes	$	45.4	$	52.6		(14	)

New Business Volume

New business volume in the first quarter of 2026 decreased to $593.5 from $666.5 in the first quarter of 2025. New business volume from retail loans and finance leases in the first quarter of 2026 decreased to $547.5 from $589.2 in the first quarter of 2025, primarily due to lower retail sales of PACCAR trucks, partially offset by higher amount financed per truck and higher finance market share in 2026. Finance market share of new PACCAR truck sales was 19.4% in the first quarter of 2026 compared to 18.5% in the first quarter of 2025. Equipment on operating leases new business volume decreased to $8.5 in the first quarter of 2026 from $9.2 in the first quarter of 2025, reflecting lower amount financed per truck in 2026. Dealer master notes new business volume decreased to $37.5 in the first quarter of 2026 from $68.1 in the first quarter of 2025 due to decreased finance volume from dealers.

Revenues

The Company’s revenues decreased to $217.4 in the first quarter of 2026 from $242.9 in the first quarter of 2025, primarily driven by lower average wholesale and operating lease portfolio, partially offset by higher average retail loan and finance leases portfolio balances.

Income Before Income Taxes

The Company’s income before income taxes was $45.4 for the first quarter of 2026 compared to $52.6 for the first quarter of 2025. The decrease in income before income taxes in 2026 was primarily the result of higher provision for losses of $8.7 and lower finance margin of $1.1, partially offset by the higher operating lease margin of $1.7.

- 19 -

PACCAR FINANCIAL CORP.

Included in Other assets on the Company’s Balance Sheets are used trucks held for sale, net of impairments, of $107.4 at March 31, 2026 and $118.3 at December 31, 2025. These trucks include units returned from matured operating leases in the ordinary course of business and trucks acquired from repossessions or through acquisitions of used trucks in trades related to new truck sales.

In the first quarter, the Company recognized losses on used trucks, excluding repossessions, of $.8 in 2026 compared to $4.4 in 2025, including losses on multiple unit transactions of $.4 in 2026 compared to $3.2 in 2025. Used truck losses related to repossessions, which are recognized as credit losses, were $1.0 and $.6 in 2026 and 2025, respectively.

Revenue and Expenses

The major factors for the changes in interest and fee income, interest and other borrowing costs and finance margin between the three months ended March 31, 2026 and 2025 are outlined in the table below:

				Interest and
	Interest and			Other Borrowing			Finance
	Fee Income			Costs			Margin
Three Months Ended March 31, 2025	$	190.0		$	118.5		$	71.5
(Decrease) increase
Average finance receivables		(2.7	)					(2.7	)
Average receivables from PACCAR and affiliates		(4.2	)					(4.2	)
Average debt balances					(6.8	)		6.8
Yields		(2.3	)					(2.3	)
Borrowing rates					(1.3	)		1.3
Total decrease		(9.2	)		(8.1	)		(1.1	)
Three Months Ended March 31, 2026	$	180.8		$	110.4		$	70.4

•Average finance receivables decreased $183.3 in the first quarter of 2026, which decreased interest and fee income by $2.7. The decrease was primarily due to lower dealer wholesale financing, partially offset by higher retail loan and finance lease portfolio.

•Average receivables from PACCAR and affiliates decreased $359.9 in the first quarter of 2026 as a result of collections exceeding new loans to affiliated companies, which decreased interest and fee income by $4.2.

•Average debt balances decreased $621.3 in the first quarter of 2026, decreasing interest and other borrowing costs by $6.8. The lower average debt balances primarily reflect lower funding requirements for the wholesale and equipment on operating lease portfolios, as well as lower funding for the affiliated companies.

•Yields decreased $2.3 due to lower yields on receivables from customers and PACCAR and affiliates. Yields on customer finance receivables were 5.97% and 6.02% in the first quarter of 2026 and 2025, respectively. Yields on receivables from PACCAR and affiliates were 4.75% in the first quarter of 2026 compared to 4.93% in the first quarter of 2025.

•Average borrowing rates in the first quarter of 2026 were 4.43% compared to 4.48% in the first quarter of 2025 due to lower debt market interest rates, resulting in a decrease of $1.3 in interest and other borrowing costs.

The major factors for the changes in operating lease and rental revenues, depreciation and other rental expenses and operating lease margin between the three months ended March 31, 2026 and 2025 are outlined in the table below:

	Operating Lease			Depreciation
	and Rental			and Other			Operating
	Revenues			Rental Expenses			Lease Margin
Three Months Ended March 31, 2025	$	38.1		$	35.1		$	3.0
(Decrease) increase
Operating lease impairments					(1.8	)		1.8
Results on returned lease assets					(1.6	)		1.6
Average operating lease assets		(10.4	)		(8.5	)		(1.9	)
Revenue and cost per asset		2.7			2.5			.2
Total (decrease) increase		(7.7	)		(9.4	)		1.7
Three Months Ended March 31, 2026	$	30.4		$	25.7		$	4.7

•Lower operating lease impairments decreased depreciation and rental expenses by $1.8, reflecting fewer units requiring impairments in 2026.

- 20 -

PACCAR FINANCIAL CORP.

•Results on returned lease assets decreased depreciation and other rental expenses by $1.6, primarily due to lower losses in 2026.

•Average operating lease assets decreased in 2026 due to the volume of expiring leases exceeding new business volume for leased vehicles.

•Revenue per asset increased $2.7 primarily due to higher lease rates from higher average truck value financed and higher rental utilization. Cost per asset increased $2.5 primarily due to higher vehicle related expenses.

Used truck sales and other revenues and cost of used truck sales and other expenses are summarized below for the first quarter of 2026 compared to the first quarter of 2025:

	Three Months Ended
	March 31
		2026	2025
Used truck sales	$	3.1	$	11.5
Insurance, franchise and other revenues		3.1		3.3
Used truck sales and other revenues		6.2		14.8
Cost of used truck sales		3.7		12.1
Insurance, franchise and other expenses		1.4		2.0
Cost of used truck sales and other expenses		5.1		14.1
Results from used trucks and other	$	1.1	$	.7

Results from used trucks and other in the first quarter of 2026 increased by $.4 from the first quarter of 2025, primarily reflecting higher flooring insurance margin.

SG&A

The Company’s selling, general and administrative expenses (SG&A) decreased in the first quarter to $16.6 in 2026 from $17.1 in the same period of 2025 primarily due to lower personnel and related expenses, partially offset by higher professional fees. As an annualized percentage of average earning assets, the Company’s SG&A was .6% for both the first quarter of 2026 and 2025.

- 21 -

PACCAR FINANCIAL CORP.

Allowance for Credit Losses

The following table summarizes information on the Company’s allowance for credit losses on receivables and asset portfolio and presents related ratios:

	Three Months Ended			Year Ended			Three Months Ended
	March 31			December 31			March 31
	2026			2025			2025
Balance at beginning of period	$	83.8		$	74.4		$	74.4
Provision for losses		14.2			52.5			5.5
Charge-offs		(16.0	)		(44.6	)		(11.7	)
Recoveries		.5			1.5			.2
Balance at end of period	$	82.5		$	83.8		$	68.4
Ratios:
Charge-offs, net of recoveries ($15.5 in 2026) to
average total portfolio ($10,849.7 in 2026)
annualized at March 31, 2026		.57	%		.39	%		.42	%
Allowance for credit losses ($82.5 in 2026) to period-end
total portfolio ($10,883.2 in 2026)		.76	%		.75	%		.62	%
Period-end retail loan and lease receivables past
due over 30 days ($158.9 in 2026) to period-end
retail loan and lease receivables ($8,008.4 in 2026)		1.98	%		2.05	%		.80	%

The provision for losses on receivables was $14.2 for the first three months of 2026 compared to $5.5 for the first three months of 2025, reflecting an increase in 30+ days past due accounts and retail portfolio growth.

Charge-offs, net of recoveries, increased to $15.5 in the first three months of 2026 from $11.5 in the first three months of 2025. The increase in charge-offs was driven by a soft truckload market and included a loss on one large fleet customer which was provisioned for previously.

Retail loan and lease receivables past due over 30 days at March 31, 2026 was 1.98%, compared to .80% at March 31, 2025, reflecting a soft truckload market. The decrease in past dues from 2.05% at December 31, 2025 reflects the effect of contract modifications for one large fleet customer, which was partially offset by several fleet customers becoming past due. The Company continues to focus on maintaining low past due balances.

The estimation methods and factors considered for determining the allowance during the periods included in this filing have been consistently applied. See “Note B – Finance and Other Receivables” for additional discussion regarding the Allowance for Credit Losses.

Modifications

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.

- 22 -

PACCAR FINANCIAL CORP.

The post-modification balances of accounts modified during the three months ended March 31, 2026 and 2025 are summarized below:

	Three Months Ended					Three Months Ended
	March 31, 2026					March 31, 2025
	Amortized		% of Total			Amortized		% of Total
	Cost Basis		Portfolio*			Cost Basis		Portfolio*
Commercial	$	34.5		1.2	%	$	60.1		2.2	%
Insignificant delay		77.9		2.9	%		32.3		1.1	%
Credit		127.7		4.7	%		5.3		.2	%
	$	240.1		8.8	%	$	97.7		3.5	%

* Amortized cost basis immediately after modification as a percentage of period-end portfolio, on an annualized basis.

Modification activity increased to $240.1 in the first three months of 2026 from $97.7 in the first three months of 2025. The decrease in Commercial modifications primarily reflects lower volumes of end-of-term refinancing. The increase in Insignificant Delay modifications reflects an increase in customers requesting payment relief for up to three months. These customers were predominantly not past due at the time of modification and at March 31, 2026. The increase in Credit modifications primarily reflects three large fleet customers' contract modifications in 2026.

When the Company modifies a 30+ days past due account, the customer is then generally considered current under the revised contractual terms. The Company modified $61.2 of accounts during the first quarter of 2026, $22.0 of accounts during the fourth quarter of 2025 and $2.3 of accounts in the first quarter of 2025 that were 30+ days past due and became current at the time of modification. Had the accounts not been modified and had they continued to not make payments, the pro forma percentage of retail loan and lease accounts 30+ days past due would have been as follows:

	March 31			December 31			March 31
	2026			2025			2025
Pro forma percentage of retail loan and lease accounts 30+ days past due		2.75	%		2.32	%		.83	%

The Company typically requires customers to pay current before granting modifications. The higher proforma percentage of retail loan and lease accounts 30+ days past due at March 31, 2026 was primarily due to modification granted to one large fleet customer in financial difficulty.

A contract modification that improves the past due status reduces the probability of default. The effect of modifications is included in the Company’s historical loss information used to determine the allowance for credit losses. Modification of accounts in prior quarters that were 30+ days past due at the time of modification are included in past dues if they were not performing under the modified terms at March 31, 2026, December 31, 2025 and March 31, 2025. For certain modifications to customers experiencing financial difficulties that are at-risk at March 31, 2026, December 31, 2025 and March 31, 2025, the allowance for credit losses is based on the value of the underlying collateral or a discounted cash flow analysis.

Portfolio

The Company’s portfolio is concentrated with customers in the heavy- and medium-duty truck transportation industry. The portfolio is comprised of retail loans and leases, dealer wholesale financing and dealer master notes as follows:

	March 31				December 31				March 31
	2026				2025				2025
Retail loans	$	6,206.8	57	%	$	6,256.7	56	%	$	5,643.0	51	%
Retail leases		1,801.6	17	%		1,850.2	17	%		1,860.4	16	%
Dealer wholesale financing		2,330.4	21	%		2,440.8	22	%		3,011.6	27	%
Dealer master notes		502.0	4	%		510.4	4	%		535.1	5	%
Operating lease receivables and other		42.4	1	%		42.2	1	%		52.3	1	%
Total portfolio	$	10,883.2	100	%	$	11,100.3	100	%	$	11,102.4	100	%

Retail loans decreased to $6,206.8 at March 31, 2026 from $6,256.7 at December 31, 2025, reflecting collections exceeding new business volume.

- 23 -

PACCAR FINANCIAL CORP.

Retail leases decreased to $1,801.6 at March 31, 2026 from $1,850.2 at December 31, 2025, reflecting collections exceeding new business volume.

Dealer wholesale financing balances decreased to $2,330.4 at March 31, 2026 from $2,440.8 at December 31, 2025 due to lower dealer new truck inventory.

Dealer master notes were $502.0 at March 31, 2026 compared to $510.4 at December 31, 2025. Dealers may pay the loans early or make additional draws up to specified balances of the contracts and/or vehicles pledged to the Company. As of March 31, 2026, the underlying pledged contracts and/or vehicles were $671.8 of which the dealers have $162.8 as potential additional borrowing capacity.

Income Taxes

The Company’s effective income tax rate for the first quarter of 2026 was 25.1% compared to 23.0% for the first quarter of 2025, reflecting changes in the state tax expense during 2026 as compared to 2025.

The Company is included in the consolidated federal income tax return of PACCAR. Federal income taxes for the Company are determined on a separate return basis. State income taxes, where the Company files combined tax returns with PACCAR, are determined on a blended statutory rate, which is substantially the same as the rate computed on a separate return basis.

The Company’s deferred income tax benefit for the first quarter of 2026 was $9.5 compared to $5.9 for the first quarter of 2025. The Company's net deferred tax liability decreased to $455.2 at March 31, 2026 from $464.4 at December 31, 2025, primarily due to lower benefits from accelerated depreciation. Deferred taxes are impacted by new business volume and the accelerated depreciation deduction rate under U.S. federal and state tax law. The difference in the timing of depreciation for financial statement and income tax purposes does not impact operating results and is not expected to have a significant impact on liquidity in 2026.

Company Outlook

Truck Industry Class 8 retail sales in the U.S. in 2026 are expected to be 205,000-240,000 units compared to 208,200 in 2025. Average earning assets in 2026 are expected to be similar to 2025. If current freight transportation conditions decline due to a weaker economy, then past due accounts, truck repossessions and credit losses would likely increase from the current levels and new business volume and average earning assets would likely decline. See the Forward-Looking Statements section of Management’s Discussion and Analysis for factors that may affect this outlook.

Funding and Liquidity

The Company’s debt ratings at March 31, 2026 are as follows:

	Standard
	and Poor's	Moody's
Commercial paper	A-1	P-1
Senior unsecured debt	A+	A1

A decrease in these credit ratings could negatively impact the Company’s ability to access capital markets at competitive interest rates and the Company’s ability to maintain liquidity and financial stability.

The Company periodically registers debt securities under the Securities Act of 1933 for offering to the public. In November 2024, the Company filed a shelf registration statement to issue medium-term notes. In April 2026, the Company issued $150.0 of medium-term notes under this registration. The shelf registration statement expires in November 2027 and does not limit the principal amount of debt securities that may be issued during the period.

The Company participates with PACCAR and certain other PACCAR affiliates in committed bank facilities of $4,000.0 at March 31, 2026. Of this amount, $1,500.0 expires in June 2026, $1,250.0 expires in June 2028 and $1,250.0 expires in June 2030. PACCAR and the Company intend to extend or replace these credit facilities on or before expiration to maintain facilities of similar amounts and duration.

Of the $4,000.0 credit facilities, $3,088.0 is available for use by the Company and/or PACCAR and certain non-U.S. PACCAR financial subsidiaries. The remaining $912.0 is allocated to PACCAR and certain non-U.S. PACCAR financial subsidiaries. These credit facilities are maintained primarily to provide backup liquidity for the Company’s commercial paper and maturing medium-term

- 24 -

PACCAR FINANCIAL CORP.

notes. The Company is liable only for its own borrowings under these credit facilities. There were no borrowings under these credit facilities for the three months ended March 31, 2026.

The Company issues commercial paper and medium-term notes to fund its financing and leasing operations. The total principal amounts of commercial paper and medium-term notes outstanding for the Company as of March 31, 2026 were $2,454.4 and $7,600.0, respectively.

The Company believes its current investment grade credit ratings of A+/A1, committed bank facilities, collections on existing loans and leases and its ability to borrow from PACCAR, if necessary, will continue to provide it with sufficient resources and access to capital markets at competitive interest rates to maintain its liquidity and financial stability. In the event of a decrease in the Company’s credit ratings or a disruption in the financial markets, the Company may not be able to refinance its maturing debt in the financial markets. In such circumstances, the Company would be exposed to liquidity risk to the degree that the timing of debt maturities differs from the timing of receivable collections from customers. The Company believes its various sources of liquidity, including committed bank facilities, would continue to provide it with sufficient funding resources to service its maturing debt obligations.

Other information on liquidity, sources of capital, and contractual cash commitments as presented in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 Annual Report”) continues to be relevant.

Forward-Looking Statements

This report contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements relating to future results of operations or financial position and any other statement that does not relate to any historical or current fact. Such statements are based on currently available operating, financial and other information and are subject to risks and uncertainties that may affect actual results. Risks and uncertainties include, but are not limited to: national and local economic, political and industry conditions; changes in the levels of new business volume due to unit fluctuations in new PACCAR truck sales or reduced market share; changes in competitive factors; changes affecting the profitability of truck owners and operators; price changes impacting equipment costs and residual values; changes in interest rates and other operating costs; insufficient liquidity in the capital markets and availability of other funding sources; cybersecurity risks to the Company’s information technology systems; use of artificial intelligence and machine learning in business processes; pandemics; climate-related risks; global conflicts; litigation involving the Company or affiliated entities; and legislation and governmental regulation.

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PACCAR FINANCIAL CORP.

ITEM 3 is omitted pursuant to Form 10-Q General Instructions (H)(2)(c).

ITEM 4. CONTROLS AND PROCEDURES

The Company’s management, with the participation of the Principal Executive Officer and Principal Financial Officer, conducted an evaluation of the effectiveness of the Company’s disclosure controls and procedures (as defined in Exchange Act Rule 13a-15(e)) as of the end of the period covered by this report. Based on that evaluation, the Principal Executive Officer and Principal Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of the end of the period covered by this report.

There have been no significant changes in the Company’s internal control over financial reporting that occurred during the fiscal quarter covered by this report that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

- 26 -

PACCAR FINANCIAL CORP.

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

The Company is a party to various routine legal proceedings incidental to its business involving the collection of accounts and other matters. The Company does not consider such matters to be material with respect to the business or financial condition of the Company as a whole.

ITEM 1A. RISK FACTORS

For information regarding risk factors, refer to Part I, Item 1A as presented in the 2025 Annual Report on Form 10-K. There have been no material changes in the Company’s risk factors during the three months ended March 31, 2026.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS AND ISSUER PURCHASES OF EQUITY SECURITIES

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None of the Company’s directors or officers adopted, modified or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the Company’s quarter ended March 31, 2026, as such terms are defined under Item 408(a) of Regulation S-K.

ITEM 6. EXHIBITS

Any exhibits filed herewith are listed in the accompanying index to exhibits.

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PACCAR FINANCIAL CORP.

EXHIBIT INDEX

Exhibits (in order of assigned index numbers)

Exhibit Number	Exhibit Description		Form	Date of First Filing	Exhibit Number	File Number
(3)	Articles of incorporation and by-laws:
	(i)	Restated Articles of Incorporation of the Company, as amended	10-K	February 26, 2015	3(i)	001-11677
	(ii)	Restated by-laws of the Company	10-Q	August 7, 2014	3(c)	001-11677
(4)	Instruments defining the rights of security holders, including indentures:
	(a)	Indenture for Senior Debt Securities dated as of November 20, 2009 between the Company and and U.S. Bank Trust Company, National Association (as a successor to The Bank of New York Mellon Trust Company, N.A.)	S-3	November 20, 2009	4.1	333-163273
	(b)	Forms of Medium-Term Note, Series P	S-3	November 2, 2018	4.2 and 4.3	333-228141
	(c)	Forms of Medium-Term Note, Series Q	S-3	November 1, 2021	4.3 and 4.4	333-260663
	(d)	Forms of Medium-Term Note, Series R	S-3	November 7, 2024	4.4 and 4.5	333-283056
	(e)	Description of the Registrant’s Securities Registered Pursuant to Section 12 of the Securities Act of 1934	10-K	February 21, 2024	4(d)	001-11677
(10)	Material contracts:
	(a)	Support Agreement between the Company and PACCAR dated as of June 19, 1989. (P)	S-3	June 23, 1989	28.1	33-29434
(31)	Rule 13a-14(a)/15d-14(a) Certifications:
	(a)	Certification of Principal Executive Officer*
	(b)	Certification of Principal Financial Officer*
(32)	Section 1350 Certifications:
	(a)	Certification pursuant to rule 13a-14(b) and section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. section 1350)*
(101.INS)		Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document*
(101.SCH)		Inline XBRL Taxonomy Extension Schema with Embedded Linkbase Document*
(104)		Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)*

____________

* filed herewith

- 28 -

PACCAR FINANCIAL CORP.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		PACCAR Financial Corp.
		(Registrant)
Date	April 29, 2026	/s/ Terren D. Drake
		Terren D. Drake
		President
		(Authorized Officer)
		/s/ Shannon L. Farrar
		Shannon L. Farrar
		Controller
		(Chief Accounting Officer)

- 29 -

EX-31.A

Exhibit 31(a)

PACCAR FINANCIAL CORP.

CERTIFICATION

I, Kevin D. Baney, certify that:

1.I have reviewed this quarterly report on Form 10-Q of PACCAR Financial Corp.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date	April 29, 2026	/s/ Kevin D. Baney
		Kevin D. Baney
		Chief Executive Officer
		(Principal Executive Officer)

EX-31.B

Exhibit 31(b)

PACCAR FINANCIAL CORP.

CERTIFICATION

I, Craig R. Gryniewicz, certify that:

1.I have reviewed this quarterly report on Form 10-Q of PACCAR Financial Corp.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date	April 29, 2026	/s/ Craig R. Gryniewicz
		Craig R. Gryniewicz
		Principal Financial Officer

EX-32.A

Exhibit 32(a)

PACCAR FINANCIAL CORP.

CERTIFICATION PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002 (18 U.S.C. SECTION 1350)

In connection with the Quarterly Report of PACCAR Financial Corp. (the “Company”) on Form 10-Q for the quarter ended March 31, 2026 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned certify, pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. section 1350), that to the best of our knowledge and belief:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date	April 29, 2026	/s/ Kevin D. Baney
		Kevin D. Baney
		Chief Executive Officer
		PACCAR Financial Corp.
		(Principal Executive Officer)
		/s/ Craig R. Gryniewicz
		Craig R. Gryniewicz
		Principal Financial Officer
		PACCAR Financial Corp.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2026	Apr. 28, 2026
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2026
Document Fiscal Year Focus	2026
Document Fiscal Period Focus	Q1
Entity Registrant Name	PACCAR FINANCIAL CORP
Entity Central Index Key	0000731288
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		145,000
Entity Shell Company	false
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity File Number	001-11677
Entity Tax Identification Number	91-6029712
Entity Address, Address Line One	777 – 106th Ave. N.E.
Entity Address, City or Town	Bellevue
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98004
City Area Code	425
Local Phone Number	468-7100
Entity Incorporation, State or Country Code	WA
Document Quarterly Report	true
Title of Each Class	Series P Medium-Term Notes $300.0 Million Due May 11, 2026
Document Transition Report	false
Trading Symbol	PCAR26
Name of Each Exchange on Which Registered	NASDAQ

XML

STATEMENTS OF COMPREHENSIVE INCOME AND RETAINED EARNINGS - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2026		Mar. 31, 2025
Income Statement [Abstract]
Interest and fee income	$ 180.8		$ 190.0
Operating lease and rental revenues	30.4		38.1
Used truck sales and other revenues	6.2		14.8
TOTAL INTEREST AND OTHER REVENUES	217.4		242.9
Interest and other borrowing costs	110.4		118.5
Depreciation and other rental expenses	25.7		35.1
Cost of used truck sales and other expenses	5.1		14.1
Selling, general and administrative expenses	16.6		17.1
Provision for losses on receivables	14.2		5.5
TOTAL EXPENSES	172.0		190.3
INCOME BEFORE INCOME TAXES	45.4		52.6
Income taxes	11.4		12.1
NET INCOME	34.0		40.5
COMPREHENSIVE INCOME	34.8		37.6
RETAINED EARNINGS AT BEGINNING OF PERIOD	1,913.6	[1]	1,769.4
RETAINED EARNINGS AT END OF PERIOD	$ 1,947.6		$ 1,809.9

[1] The December 31, 2025 balance sheet has been derived from audited financial statements.

XML

BALANCE SHEETS - USD ($) $ in Millions	Mar. 31, 2026	Dec. 31, 2025
ASSETS
Cash	$ 69.5	$ 87.7	[1]
Finance and other receivables, net of allowance for losses (2026 - $82.5 and 2025 - $83.8)	10,800.7	11,016.5	[1]
Due from PACCAR and affiliates	$ 1,756.8	$ 1,854.7	[1]
Other Receivable, after Allowance for Credit Loss, Related Party [Extensible Enumeration]	Related Party [Member]	Related Party [Member]
Equipment on operating leases, net of accumulated depreciation (2026 - $259.6 and 2025 - $261.5)	$ 334.2	$ 356.2	[1]
Other assets	269.7	243.0	[1]
TOTAL ASSETS	13,230.9	13,558.1	[1]
LIABILITIES
Accounts payable, accrued expenses and other	488.3	474.3	[1]
Due to PACCAR and affiliates	$ 63.7	$ 21.5	[1]
Other Liability, Related Party [Extensible Enumeration]	Related Party [Member]	Related Party [Member]
Commercial paper	$ 2,450.1	$ 2,753.7	[1]
Medium-term notes	7,580.5	7,681.4	[1]
Deferred taxes and other liabilities	458.0	476.8	[1]
TOTAL LIABILITIES	11,040.6	11,407.7	[1]
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	[1]
Common stock, par value $100 per share, 200,000 shares authorized, 145,000 shares issued and outstanding	14.5	14.5	[1]
Additional paid-in capital	192.7	187.6	[1]
Retained earnings	1,947.6	1,913.6	[1]
Accumulated other comprehensive income	4.5	3.7	[1]
TOTAL STOCKHOLDER'S EQUITY	2,190.3	2,150.4	[1]
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY	$ 13,230.9	$ 13,558.1	[1]

[1] The December 31, 2025 balance sheet has been derived from audited financial statements.

XML

BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2026	Dec. 31, 2025
Statement of Financial Position [Abstract]
Finance and other receivables, allowance for losses	$ 82.5	$ 83.8
Equipment on operating leases, accumulated depreciation	$ 259.6	$ 261.5
Preferred stock, par value	$ 100	$ 100
Preferred stock, noncumulative and nonvoting	6.00%	6.00%
Preferred stock, shares authorized	450,000	450,000
Preferred stock, shares issued	310,000	310,000
Preferred stock, shares outstanding	310,000	310,000
Common stock, par value	$ 100	$ 100
Common stock, shares authorized	200,000	200,000
Common stock, shares issued	145,000	145,000
Common stock, shares outstanding	145,000	145,000

XML

STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
OPERATING ACTIVITIES
Net income	$ 34.0	$ 40.5
Items included in net income not affecting cash:
Depreciation and amortization	26.9	35.7
Provision for losses on receivables	14.2	5.5
Deferred taxes	(9.5)	(5.9)
Administrative fees for services from PACCAR	5.1	5.4
Change in tax-related balances with PACCAR	26.6	20.6
(Decrease) increase in payables and other	(3.9)	29.9
NET CASH PROVIDED BY OPERATING ACTIVITIES	93.4	131.7
INVESTING ACTIVITIES
Finance and other receivables originated	(588.0)	(668.0)
Collections on finance and other receivables	669.3	613.2
Net decrease in wholesale receivables	110.4	58.5
Loans to PACCAR and affiliates		(197.0)
Collections on loans from PACCAR and affiliates	96.0	100.0
Net increase in other receivables to PACCAR and affiliates		(97.0)
Acquisitions of equipment for operating leases	(8.5)	(9.2)
Proceeds from disposals of equipment	28.2	75.1
Other, net	(13.9)	(7.5)
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES	293.5	(131.9)
FINANCING ACTIVITIES
Net decrease in short-term commercial paper	(303.6)	(245.7)
Proceeds from medium-term notes	398.5	597.9
Payments of medium-term notes	(500.0)	(400.0)
NET CASH USED IN FINANCING ACTIVITIES	(405.1)	(47.8)
NET DECREASE IN CASH	(18.2)	(48.0)
CASH AT BEGINNING OF PERIOD	87.7	83.1
CASH AT END OF PERIOD	$ 69.5	$ 35.1

XML

STATEMENTS OF STOCKHOLDER'S EQUITY - USD ($) $ in Millions	Total		Preferred Stock	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income
Beginning balance at Dec. 31, 2024			$ 31.0	$ 14.5	$ 178.7	$ 1,769.4	$ 7.9
Investments from PACCAR					5.4
Net income	$ 40.5					40.5
Net unrealized gain (loss)	(2.9)						(2.9)
Ending balance at Mar. 31, 2025	2,044.5		31.0	14.5	184.1	1,809.9	5.0
Beginning balance at Dec. 31, 2025	2,150.4	[1]	31.0	14.5	187.6	1,913.6	3.7
Investments from PACCAR					5.1
Net income	34.0					34.0
Net unrealized gain (loss)	0.8						0.8
Ending balance at Mar. 31, 2026	$ 2,190.3		$ 31.0	$ 14.5	$ 192.7	$ 1,947.6	$ 4.5

[1] The December 31, 2025 balance sheet has been derived from audited financial statements.

XML

STATEMENTS OF STOCKHOLDER'S EQUITY (Parenthetical) - $ / shares	Mar. 31, 2026	Dec. 31, 2025	Mar. 31, 2025
Statement of Stockholders' Equity [Abstract]
Preferred stock, par value	$ 100	$ 100	$ 100
Common stock, par value	$ 100	$ 100	$ 100

XML

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Pay vs Performance Disclosure
Net Income (Loss)	$ 34.0	$ 40.5

XML

Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2026
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Rule 10b5-1 Arrangement Modified	false
Non-Rule 10b5-1 Arrangement Modified	false

XML

Basis of Presentation

3 Months Ended

Mar. 31, 2026

Accounting Policies [Abstract]

Basis of Presentation

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 three months ended March 31, 2026 are not necessarily indicative of the results that may be expected for the year ending December 31, 2026. 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, 2025.

New Accounting Pronouncements:

In November 2024, the Financial Accounting Standards Board (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.

The Company adopted the following standards on January 1, 2026, which had no impact on the Company’s financial statements.

STANDARD	DESCRIPTION
2025-05	Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets
2025-09	Derivatives and Hedging (Topic 815): Hedge Accounting Improvements

XML

Finance and Other Receivables

3 Months Ended

Mar. 31, 2026

Receivables [Abstract]

Finance and Other Receivables

NOTE B – Finance and Other Receivables

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

	March 31			December 31
		2026		2025
Retail loans	$	6,206.8		$	6,256.7
Retail financing leases		1,801.6			1,850.2
Dealer wholesale financing		2,330.4			2,440.8
Dealer master notes		502.0			510.4
Operating lease receivables and other		42.4			42.2
		10,883.2			11,100.3
Less allowance for credit losses:
Loans and leases		(81.0	)		(82.2	)
Dealer wholesale financing		(1.1	)		(1.1	)
Operating lease receivables and other		(.4	)		(.5	)
	$	10,800.7		$	11,016.5

Interest income recognized on finance leases was $26.8 and $26.9 for the three months ended March 31, 2026 and 2025 respectively. 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 March 31, 2026 or December 31, 2025. 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 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 six months in 2026 and four months in 2025, and did not have a significant effect on the weighted average term or interest rate of the total portfolio at March 31, 2026 and December 31, 2025.

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.

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:

	2026
	Dealer				Customer
	Wholesale		Retail		Retail			Other*			Total
Balance at January 1	$	1.1	$	1.5	$	80.7		$	.5		$	83.8
Provision for losses						14.0			.2			14.2
Charge-offs						(15.7	)		(.3	)		(16.0	)
Recoveries						.5						.5
Balance at March 31	$	1.1	$	1.5	$	79.5		$	.4		$	82.5

	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						5.5					5.5
Charge-offs						(11.7	)				(11.7	)
Recoveries						.2					.2
Balance at March 31	$	1.1	$	1.1	$	64.7		$	1.5	$	68.4

* Operating lease and other trade receivables.

Charge-offs, net of recoveries, increased to $15.5 in the first three months of 2026 from $11.5 in the first three months of 2025. The increase in charge-offs was driven by a soft truckload market and included loss on one large fleet customer which was provisioned for previously.

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 March 31, 2026 or December 31, 2025. 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 March 31, 2026	Revolving Loans		2026		2025		2024		2023		2022		Prior		Total
Amortized cost:
Dealer:
Wholesale:
Performing	$	2,325.1													$	2,325.1
Watch		5.3														5.3
	$	2,330.4													$	2,330.4
Retail:
Performing	$	229.4	$	80.1	$	494.6	$	472.5	$	413.5	$	264.7	$	198.8	$	2,153.6
	$	229.4	$	80.1	$	494.6	$	472.5	$	413.5	$	264.7	$	198.8	$	2,153.6
Total dealer	$	2,559.8	$	80.1	$	494.6	$	472.5	$	413.5	$	264.7	$	198.8	$	4,484.0
Customer retail:
Fleet:
Performing			$	367.8	$	2,070.8	$	1,549.5	$	853.9	$	371.1	$	132.1	$	5,345.2
Watch				9.4		64.9		21.0		37.2		31.7		13.0		177.2
At-risk				1.2		20.9		46.9		121.0		30.1		4.7		224.8
			$	378.4	$	2,156.6	$	1,617.4	$	1,012.1	$	432.9	$	149.8	$	5,747.2
Owner/operator:
Performing			$	57.1	$	264.9	$	158.1	$	60.1	$	37.7	$	19.3	$	597.2
Watch						1.5		1.7		2.4		.8		.9		7.3
At-risk						1.8		1.0		.4		1.3		.6		5.1
			$	57.1	$	268.2	$	160.8	$	62.9	$	39.8	$	20.8	$	609.6
Total customer retail			$	435.5	$	2,424.8	$	1,778.2	$	1,075.0	$	472.7	$	170.6	$	6,356.8
Total	$	2,559.8	$	515.6	$	2,919.4	$	2,250.7	$	1,488.5	$	737.4	$	369.4	$	10,840.8

Three Months Ended March 31, 2026	Revolving Loans	2026	2025		2024		2023		2022		Prior		Total
Gross charge-offs:
Customer retail:
Fleet			$	1.6	$	1.1	$	6.7	$	3.0	$	1.6	$	14.0
Owner/operator				.1		.6		.3		.6		.1		1.7
Total			$	1.7	$	1.7	$	7.0	$	3.6	$	1.7	$	15.7

At December 31, 2025	Revolving Loans		2025		2024		2023		2022		2021		Prior		Total
Amortized cost:
Dealer:
Wholesale:
Performing	$	2,437.6													$	2,437.6
Watch		3.2														3.2
	$	2,440.8													$	2,440.8
Retail:
Performing	$	228.5	$	517.9	$	497.2	$	444.0	$	285.8	$	127.5	$	106.7	$	2,207.6
	$	228.5	$	517.9	$	497.2	$	444.0	$	285.8	$	127.5	$	106.7	$	2,207.6
Total dealer	$	2,669.3	$	517.9	$	497.2	$	444.0	$	285.8	$	127.5	$	106.7	$	4,648.4
Customer retail:
Fleet:
Performing			$	2,188.6	$	1,693.1	$	973.7	$	463.2	$	145.8	$	38.7	$	5,503.1
Watch				48.3		16.0		51.6		40.7		14.8		.6		172.0
At-risk				10.4		14.8		84.2		21.0		2.2		.6		133.2
			$	2,247.3	$	1,723.9	$	1,109.5	$	524.9	$	162.8	$	39.9	$	5,808.3
Owner/operator:
Performing			$	275.6	$	168.3	$	68.3	$	44.4	$	23.7	$	5.0	$	585.3
Watch				2.4		2.2		1.8		2.4		.9		.2		9.9
At-risk				1.2		1.6		.8		2.0		.4		.2		6.2
			$	279.2	$	172.1	$	70.9	$	48.8	$	25.0	$	5.4	$	601.4
Total customer retail			$	2,526.5	$	1,896.0	$	1,180.4	$	573.7	$	187.8	$	45.3	$	6,409.7
Total	$	2,669.3	$	3,044.4	$	2,393.2	$	1,624.4	$	859.5	$	315.3	$	152.0	$	11,058.1

Twelve Months Ended December 31, 2025	Revolving Loans	2025		2024		2023		2022		2021		Prior		Total
Gross charge-offs:
Customer retail:
Fleet				$	6.2	$	21.2	$	9.9	$	2.4	$	.2	$	39.9
Owner/operator		$	.2		1.2		1.5		1.3		.2		.2		4.6
Total		$	.2	$	7.4	$	22.7	$	11.2	$	2.6	$	.4	$	44.5

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 March 31, 2026	Wholesale		Retail		Fleet		Operator		Total
Current and up to 30 days past due	$	2,330.4	$	2,153.6	$	5,600.2	$	597.7	$	10,681.9
31 – 60 days past due						47.4		6.6		54.0
Greater than 60 days past due						99.6		5.3		104.9
	$	2,330.4	$	2,153.6	$	5,747.2	$	609.6	$	10,840.8

	Dealer				Customer Retail
							Owner/
At December 31, 2025	Wholesale		Retail		Fleet		Operator		Total
Current and up to 30 days past due	$	2,440.8	$	2,207.6	$	5,657.6	$	586.0	$	10,892.0
31 – 60 days past due						71.0		9.1		80.1
Greater than 60 days past due						79.7		6.3		86.0
	$	2,440.8	$	2,207.6	$	5,808.3	$	601.4	$	11,058.1

The amortized cost basis of finance receivables that are on non-accrual status was as follows:

	Dealer		Customer Retail
					Owner/
At March 31, 2026	Wholesale	Retail	Fleet		Operator		Total
Amortized cost basis with a specific reserve			$	207.4	$	4.3	$	211.7
Amortized cost basis with no specific reserve				17.3		.8		18.1
			$	224.7	$	5.1	$	229.8

	Dealer		Customer Retail
					Owner/
At December 31, 2025	Wholesale	Retail	Fleet		Operator		Total
Amortized cost basis with a specific reserve			$	132.5	$	5.5	$	138.0
Amortized cost basis with no specific reserve				.7		.7		1.4
			$	133.2	$	6.2	$	139.4

The increase in amortized cost basis of finance receivables on non-accrual status at March 31, 2026 compared to December 31, 2025 primarily reflects an increase in finance receivables from customers experiencing financial difficulty whose accounts were modified during the first quarter of 2026, driven by soft freight market conditions.

Interest income recognized on a cash basis for finance receivables that are on non-accrual status was as follows:

	Three Months Ended
	March 31
	2026	2025
Fleet		$	3.8
Owner/operator			.1
		$	3.9

Customers Experiencing Financial Difficulty

The Company modified $127.7 and $5.3 of finance receivables for customers experiencing financial difficulty during the first three months of 2026 and 2025, respectively. Generally, other than insignificant term extensions and payment delays are modifications extending terms and payment delays for more than three months. The ending amortized cost basis of finance receivables for other than insignificant term extensions and payment delays for customers in financial difficulty was as follows for the three months ended March 2026 and 2025:

At March 31, 2026 2025