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Jun 30
Caterpillar Q2 2025 Earnings Report
Caterpillar reported slightly lower revenue and earnings compared to the prior year, with margins pressured by higher manufacturing costs, particularly tariffs.
Key Takeaways
Caterpillar delivered solid operational performance in Q2 2025, though EPS and revenue declined slightly year-over-year. Strong demand in Energy & Transportation helped offset weaker results in Construction and Resource Industries.
Revenue was $16.569 billion, down 1% from the prior year due to unfavorable price realization.
Adjusted EPS came in at $4.72, compared to $5.99 in Q2 2024.
Operating income dropped 18% YoY, mainly due to higher manufacturing costs driven by tariffs.
The company deployed $1.5 billion in cash for share repurchases and dividends.
Caterpillar
Caterpillar
Caterpillar Revenue by Segment
Caterpillar Revenue by Geographic Location
Revenue by Segment
Construction Industries Revenue
CapyFin.comResource Industries Revenue
CapyFin.comEnergy & Transportation Revenue
CapyFin.comFinancial Products Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comLatin America Revenue
CapyFin.comEAME Revenue
CapyFin.comAsia/Pacific Revenue
CapyFin.com Forward Guidance
Caterpillar expects continued demand strength, especially in Energy & Transportation, but remains cautious about cost pressures and market headwinds.
Positive Outlook
- Strong order pipeline across segments.
- Demand supported by infrastructure and energy markets.
- Solid enterprise operating cash flow.
- Improved performance in EAME and Asia/Pacific regions.
- Resilient sales in Power Generation applications.
Challenges Ahead
- Ongoing pressure from higher tariffs.
- Unfavorable price realization affecting margins.
- Manufacturing cost inflation.
- Weaker dealer inventory levels in North America.
- Decline in profitability in Construction and Resource Industries.