01—Abstract
Summary
Summary of the 10-Q filed August 6, 2025. Cited figures are marked; the original filing is the authoritative source.
Caterpillar Inc. reported its financial results for the second quarter and first half of 2025, showing a decrease in sales and revenues compared to the prior year.
For the quarter, total sales and revenues were $16.569 billiona, down 1% from $16.689 billion in Q2 2024, primarily due to unfavorable price realization. Profit per share for Q2 2025 was $4.62, a decline from $5.48 in Q2 2024, largely attributed to unfavorable manufacturing costs, including the impact of higher tariffs. The company ended the quarter with $5.4 billion in enterprise cash.
For the first six months of 2025, total sales and revenues decreased by 5% to $30.818 billion, with profit per share falling to $8.82b from $11.23 in the comparable period of 2024. Despite these top-line and bottom-line pressures, Caterpillar highlighted a resilient demand environment with a growing order backlog across its primary segments, particularly in Energy & Transportation, driven by strong order activity in Power Generation and Oil & Gas applications.
02—Key points
Key Highlights
- Total sales and revenues for Q2 2025 decreased by 1% to $16.569 billion, driven by unfavorable price realization (-$414 million), partially offset by higher sales volume (+$237 million) and increased Financial Products revenue (+$46 million).
- Profit per share for Q2 2025 was $4.62, down from $5.48 in Q2 2024. For the six months ended June 30, 2025, profit per share was $8.82, down from $11.23 in the prior year period.
- Operating profit margin for Q2 2025 was 17.3%, down from 20.9% in Q2 2024, and for the six months ended June 30, 2025, it was 17.6%, down from 21.5% in the prior year period, impacted by unfavorable manufacturing costs and tariffs.
- The company anticipates a full-year 2025 incremental tariff impact of $1.3 billion to $1.5 billion, with higher impacts expected in the third and fourth quarters.
- Energy & Transportation segment sales increased by 7% in Q2 2025 to $7.836 billion, driven by strong demand in Power Generation and Oil & Gas applications, despite a decline in Transportation sales.
- Construction Industries and Resource Industries segments experienced sales declines of 7% and 4% respectively in Q2 2025, primarily due to unfavorable price realization and lower sales volume.
- Caterpillar ended Q2 2025 with $5.4 billion in enterprise cash and reported an order backlog of approximately $37.5 billion, an increase of about $2.5 billion from Q1 2025.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2025, Caterpillar Inc kept $0.13.
- Revenue$16.57B100.0%
- Cost of revenue−$10.81B65.2%
- Gross profit$5.76B34.8%
- Operating costs−$2.90B17.5%
- Operating income$2.86B17.3%
- Interest, other & tax−$681.0M4.1%
- Net income$2.18B13.2%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed August 6, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $16.57B$16.69B | −0.7% |
| Cost of Revenue | $10.81B$10.15B | +6.5% |
| Gross Profit | $5.76B$6.54B | −11.9% |
| R&D Expenses | $551.00M$535.00M | +3.0% |
| SG&A Expenses | $1.69B$1.65B | +2.5% |
| Operating Expenses | $13.71B$13.21B | +3.8% |
| Operating Income | $2.86B$3.48B | −17.9% |
| Net Income | $2.18B$2.68B | −18.7% |
| EPS (Basic) | $4.64$5.50 | −15.6% |
| EPS (Diluted) | $4.62$5.48 | −15.7% |
| Shares Outstanding (Basic) | 469.70M487.20M | −3.6% |
| Shares Outstanding (Diluted) | 471.50M489.50M | −3.7% |
05—Questions
Frequently Asked Questions
What is the primary driver behind the decrease in sales and revenue for Q2 2025?
The primary driver for the 1% decrease in total sales and revenues for Q2 2025, compared to Q2 2024, was unfavorable price realization of $414 million. This was partially offset by higher sales volume of $237 million and higher Financial Products' revenues of $46 million.
What is the company's outlook for the full year 2025, particularly concerning tariffs?
For the full year 2025, Caterpillar expects an incremental tariff impact of approximately $1.3 billion to $1.5 billion, net of mitigating actions. The impact is expected to be higher in the third and fourth quarters of 2025.
How are the different business segments performing in the current environment?
The Energy & Transportation segment showed strength with a 7% sales increase in Q2 2025, driven by Power Generation and Oil & Gas. However, Construction Industries saw a 7% sales decrease and Resource Industries a 4% decrease, both impacted by unfavorable price realization and lower sales volume. Despite these segment-specific challenges, the company noted resilient demand and a growing order backlog across its primary segments.
What is the company's cash position and outlook for liquidity?
Caterpillar ended the second quarter of 2025 with $5.4 billion in enterprise cash. Consolidated operating cash flow for the first six months of 2025 was $4.411 billion. The company intends to maintain a strong cash and liquidity position and has a total of $14.584 billion in credit lines available, with $9.799 billion of available credit as of June 30, 2025.
06—Continue