Summary
Caterpillar Inc. reported its first-quarter 2025 financial results, showing a notable decrease in sales and revenues compared to the prior year. Total sales and revenues were $14.249 billion, down 10% from $15.799 billion in Q1 2024. This decline was primarily attributed to lower sales volume, driven by changes in dealer inventories, and unfavorable price realization. Consequently, operating profit also saw a significant decrease, falling 27% to $2.579 billion, with the operating profit margin contracting to 18.1% from 22.3% year-over-year. Despite the revenue and profit headwinds, Caterpillar's profit per share remained robust at $4.20 (or $4.25 adjusted), though down from $5.78 ($5.75 adjusted) in Q1 2024. The company ended the quarter with $3.6 billion in enterprise cash, indicating a solid liquidity position. Management expressed cautious optimism for the full year, anticipating sales and revenues to be "about flat" compared to 2024 in a pre-tariff scenario, with potential for a slight decline if economic conditions worsen. The company is actively monitoring evolving economic conditions and tariffs, with significant efforts focused on mitigation strategies.
Financial Highlights
52 data points| Revenue | $14.25B |
| Cost of Revenue | $8.96B |
| Gross Profit | $5.28B |
| R&D Expenses | $480.00M |
| SG&A Expenses | $1.59B |
| Operating Expenses | $11.67B |
| Operating Income | $2.58B |
| Net Income | $2.00B |
| EPS (Basic) | $4.22 |
| EPS (Diluted) | $4.20 |
| Shares Outstanding (Basic) | 474.90M |
| Shares Outstanding (Diluted) | 477.10M |
Key Highlights
- 1Total sales and revenues decreased by 10% to $14.249 billion in Q1 2025 compared to $15.799 billion in Q1 2024, driven by lower sales volume and unfavorable price realization.
- 2Operating profit declined by 27% to $2.579 billion, resulting in an operating profit margin of 18.1%, down from 22.3% in the prior year.
- 3Profit per share was $4.20, a decrease from $5.78 in Q1 2024. Adjusted profit per share was $4.25.
- 4The company ended the quarter with $3.6 billion in enterprise cash, indicating a healthy liquidity position.
- 5Dealer inventory levels saw a smaller increase in Q1 2025 ($100 million) compared to Q1 2024 ($1.4 billion), reflecting a shift in inventory management.
- 6Full-year 2025 revenue is expected to be approximately flat to slightly down compared to 2024, depending on economic conditions and tariff impacts.
- 7The backlog for firm orders stood at approximately $35.0 billion at the end of Q1 2025, an increase from Q4 2024.