Summary
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 billion, 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 $8.82 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.
Financial Highlights
53 data points| Revenue | $16.57B |
| Cost of Revenue | $10.81B |
| Gross Profit | $5.76B |
| R&D Expenses | $551.00M |
| SG&A Expenses | $1.69B |
| Operating Expenses | $13.71B |
| Operating Income | $2.86B |
| Net Income | $2.18B |
| EPS (Basic) | $4.64 |
| EPS (Diluted) | $4.62 |
| Shares Outstanding (Basic) | 469.70M |
| Shares Outstanding (Diluted) | 471.50M |
Key Highlights
- 1Total 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).
- 2Profit 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.
- 3Operating 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.
- 4The 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.
- 5Energy & 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.
- 6Construction 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.
- 7Caterpillar 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.