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Mar 31, 2025
Caterpillar Q1 2025 Earnings Report
Caterpillar reported lower revenue and earnings in Q1 2025 compared to the prior year, while maintaining shareholder returns and achieving record backlog growth.
Key Takeaways
Caterpillar experienced a decline in revenue and profit for Q1 2025 due to lower sales volume and unfavorable pricing, but continued strategic execution with strong shareholder returns and a record $5 billion increase in backlog.
Revenue declined 10% YoY to $14.25B, primarily due to lower sales volume and price realization.
Net income was $2.0B with GAAP EPS of $4.20 and adjusted EPS of $4.25.
Returned $4.3B to shareholders through buybacks and dividends.
Achieved record $5B increase in organic backlog in Q1.
Revenue by Segment
Forward Guidance
Caterpillar expects 2025 full-year adjusted margins and free cash flow to be within target ranges, with stable sales outlook under a base case and risks tied to tariffs and economic softening.
Positive Outlook
- Full-year 2025 sales and revenues expected to be flat compared to 2024.
- Adjusted operating profit margin projected in the top half of the target range.
- ME&T free cash flow also expected in top half of the $5B-$10B target range.
- Strong balance sheet and liquidity position maintained.
- Dealer inventory expected to remain flat through end of 2025.
Challenges Ahead
- Sales and revenues could be slightly down under a tariff-impact scenario.
- Adjusted margin may decline in Q2 2025 compared to Q2 2024.
- Tariff-related cost headwinds of $250M–$350M expected in Q2 2025.
- Higher credit loss provisions impacted Financial Products segment profit.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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