01—Abstract
Summary
Summary of the 10-K filed February 14, 2025. Cited figures are marked; the original filing is the authoritative source.
Caterpillar Inc. reported total sales and revenues of $64.809 billiona for the full year 2024, a decrease of 3% from 2023, primarily driven by lower sales volume across its Construction Industries and Resource Industries segments, partially offset by favorable price realization and growth in Energy & Transportation.
Despite the revenue decline, operating profit margin improved to 20.2% in 2024 from 19.3% in 2023, reflecting effective price realization and manufacturing cost efficiencies. Profit per share increased to $22.05b from $20.12 in the prior year.
The company maintained a strong financial position, with enterprise operating cash flow of $12.0 billionc and ended the year with $6.9 billion in enterprise cash. Looking ahead to 2025, Caterpillar anticipates slightly lower sales and revenues, primarily due to anticipated unfavorable price realization and lower sales volume, though services revenue is expected to grow across all segments.
02—Key points
Key Highlights
- Total sales and revenues for 2024 were $64.809 billion, a 3% decrease from $67.060 billion in 2023.
- Operating profit margin improved to 20.2% in 2024 from 19.3% in 2023.
- Profit per share increased to $22.05 in 2024, up from $20.12 in 2023.
- Enterprise operating cash flow was $12.0 billion in 2024.
- Order backlog increased to $30.0 billion at the end of 2024 from $27.5 billion at the end of 2023.
- The company repurchased $7.7 billion of common stock in 2024, with $20.1 billion remaining authorization.
- The company anticipates slightly lower sales and revenues in 2025 compared to 2024, driven by expected unfavorable price realization and lower sales volume, though services revenue is projected to grow.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Caterpillar Inc kept $0.17.
- Revenue$64.81B100.0%
- Cost of revenue−$40.20B62.0%
- Gross profit$24.61B38.0%
- Operating costs−$11.54B17.8%
- Operating income$13.07B20.2%
- Interest, other & tax−$2.28B3.5%
- Net income$10.79B16.7%
Where FY2024 revenue went
$64.81B- Cost of revenue: $40.20B, 62% of revenue
- Net income: $10.79B, 17% of revenue
- R&D: $2.11B, 3.3% of revenue
- SG&A: $6.67B, 10% of revenue
- Other operating costs: $2.76B, 4.3% of revenue
- Interest, other & tax: $2.28B, 3.5% of revenue
Kept 17% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 14, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $64.81B$67.06B | −3.4% |
| Cost of Revenue | $40.20B$42.77B | −6.0% |
| Gross Profit | $24.61B$24.29B | +1.3% |
| R&D Expenses | $2.11B$2.11B | 0.0% |
| SG&A Expenses | $6.67B$6.37B | +4.6% |
| Operating Expenses | $51.74B$54.09B | −4.4% |
| Operating Income | $13.07B$12.97B | +0.8% |
| Net Income | $10.79B$10.34B | +4.4% |
| EPS (Basic) | $22.17$20.24 | +9.5% |
| EPS (Diluted) | $22.05$20.12 | +9.6% |
| Shares Outstanding (Basic) | 486.70M510.60M | −4.7% |
| Shares Outstanding (Diluted) | 489.40M513.60M | −4.7% |
05—Questions
Frequently Asked Questions
What were Caterpillar's key financial results for 2024?
In 2024, Caterpillar reported total sales and revenues of $64.809 billion, a 3% decrease from 2023. However, operating profit margin improved to 20.2% and profit per share rose to $22.05. The company generated $12.0 billion in enterprise operating cash flow and ended the year with $6.9 billion in enterprise cash.
How did Caterpillar's different segments perform in 2024?
Sales were lower in the Construction Industries (-7%) and Resource Industries (-9%) segments compared to 2023. The Energy & Transportation segment saw an increase in sales of 3%. The Financial Products segment's revenues increased by 7%.
What is Caterpillar's outlook for 2025?
For the full year 2025, Caterpillar anticipates sales and revenues to be slightly lower than 2024, primarily due to expected unfavorable price realization and lower sales volume. However, the company expects services revenue to grow across all three primary segments. Specifically, Construction Industries and Resource Industries are projected to have lower sales, while Energy & Transportation is expected to see increased sales.
What is Caterpillar's capital allocation strategy?
Caterpillar's capital allocation strategy prioritizes maintaining a strong financial position to support a mid-A rating, funding operational requirements and commitments, and then investing in strategic growth initiatives and returning capital to shareholders through dividends and share repurchases. The company returned $2.65 billion in dividends and repurchased $7.7 billion of stock in 2024.
06—Continue