10-QPeriod: Q3 FY2025

CATERPILLAR INC Quarterly Report for Q3 Ended Sep 30, 2025

Filed November 3, 2025For Securities:CAT

Summary

Caterpillar Inc. reported its financial results for the third quarter and the first nine months of 2025. For the third quarter, total sales and revenues increased by 10% to $17.638 billion, primarily driven by higher sales volume across all major segments. However, operating profit margin decreased to 17.3% from 19.5% in the prior year's quarter, impacted by unfavorable manufacturing costs, notably due to higher tariffs, and increased selling, general, and administrative (SG&A) and R&D expenses. Profit per share for the quarter was $4.88, down from $5.06 in Q3 2024. For the first nine months of 2025, total sales and revenues remained relatively flat at $48.456 billion. Operating profit margin saw a more significant decline to 17.5% from 20.9% in the same period last year, largely due to unfavorable manufacturing costs and price realization, again impacted by tariffs. Profit per share for the nine-month period was $13.69, a decrease from $16.27 in the prior year. The company noted healthy demand signals and a robust backlog, with expectations for modest full-year sales and revenue growth in 2025, though tempered by ongoing tariff impacts and global economic uncertainties.

Financial Highlights

53 data points
Beta

Revenue

$17.64B

33.8% Gross Margin

Net Income

$2.30B

13.0% Net Margin

EPS (Diluted)

$4.88

Total Assets

$93.72B

Cash & Equivalents

$7.54B

Free Cash Flow

$3.08B

Financial Statements
Beta
Revenue$17.64B
Cost of Revenue$11.67B
Gross Profit$5.96B
R&D Expenses$555.00M
SG&A Expenses$1.82B
Operating Expenses$14.59B
Operating Income$3.05B
Net Income$2.30B
EPS (Basic)$4.91
EPS (Diluted)$4.88
Shares Outstanding (Basic)468.60M
Shares Outstanding (Diluted)470.80M

Key Highlights

  • 1Total sales and revenues for Q3 2025 increased by 10% to $17.638 billion, driven by higher sales volume across Construction Industries, Resource Industries, and Energy & Transportation.
  • 2Operating profit margin for Q3 2025 decreased to 17.3% from 19.5% in Q3 2024, impacted by unfavorable manufacturing costs (largely due to higher tariffs) and increased SG&A/R&D expenses.
  • 3Profit per share for Q3 2025 was $4.88, a decrease from $5.06 in Q3 2024.
  • 4For the nine months ended September 30, 2025, total sales and revenues were largely flat at $48.456 billion.
  • 5Operating profit margin for the nine months decreased to 17.5% from 20.9% in the prior year, mainly due to unfavorable manufacturing costs and price realization.
  • 6Profit per share for the nine months ended September 30, 2025, was $13.69, down from $16.27 in the prior year.
  • 7The company anticipates a net incremental tariff impact of approximately $650 million to $800 million in the fourth quarter of 2025.

Frequently Asked Questions

The primary driver of the sales increase in the third quarter of 2025 was higher sales volume, particularly in the Construction Industries, Resource Industries, and Energy & Transportation segments, largely due to increased sales of equipment to end users and a less pronounced decrease in dealer inventories compared to the prior year.

The decline in operating profit margin for both the third quarter and the nine-month period was primarily attributed to unfavorable manufacturing costs, significantly influenced by higher tariffs. Additionally, unfavorable price realization and increased selling, general, and administrative (SG&A) and research and development (R&D) expenses contributed to the margin compression.

Caterpillar is actively evaluating options to mitigate the impact of incremental tariffs and plans to implement longer-term actions once there is greater certainty. The company expects a net incremental tariff impact of approximately $1.6 billion to $1.75 billion for the full year 2025 and has already incurred a significant portion of this impact, with a notable portion expected in the fourth quarter.

Caterpillar anticipates modest full-year sales and revenue growth in 2025, supported by healthy demand signals and a robust backlog. Growth is expected in Construction Industries, driven by infrastructure projects, and strong performance in Power Generation within Energy & Transportation. However, Resource Industries may see lower sales due to customer capital discipline and declining coal prices, while some regions face softer economic conditions.