CATERPILLAR INC (CAT) Earnings History

CATERPILLAR INC - Q3 FY2025 Earnings

Filed at: Oct 28, 2025, 8:00 PM EDT|Read from source

EXECUTIVE SUMMARY

Caterpillar reported solid third-quarter results driven by resilient demand and focused execution across its segments, positioning the company for sustained momentum and long-term profitable growth.

POSITIVE HIGHLIGHTS

  • •

    Sales and revenues increased 10% to $17.6 billion, primarily due to higher sales volume of equipment to end users.

    positive
  • •

    Energy & Transportation segment sales increased 17% to $8.4 billion, driven by higher sales volume in Oil and Gas, and Power Generation applications.

    positive
  • •

    Enterprise operating cash flow was strong at $3.7 billion in the quarter.

    positive

CONCERNS & RISKS

  • •

    Operating profit margin decreased to 17.3% from 19.5% in the prior year, impacted by unfavorable manufacturing costs and higher SG&A/R&D expenses.

    negative
  • •

    Profit per share decreased to $4.88 from $5.06 in the prior year, impacted by an increase in the effective tax rate and a net discrete tax charge.

    negative
  • •

    Resource Industries segment profit decreased 19% to $499 million, primarily due to unfavorable manufacturing costs and price realization.

    negative
  • •

    Construction Industries segment profit decreased 7% to $1.377 billion, impacted by unfavorable price realization and manufacturing costs.

    attention

FINANCIAL METRICS

Revenue
Quarterly
$17.64B
+9.5%
Prior year: $16.11B
Annual (YTD)
$48.46B
N/A
Prior year: $48.59B
Net Income
Quarterly
$2.30B
-6.7%
Prior year: $2.46B
Annual (YTD)
$6.48B
N/A
Prior year: $8.00B
EPS (Diluted)
Quarterly
$4.88
-3.6%
Prior year: $5.06
Annual (YTD)
$13.69
N/A
Prior year: $16.27
Operating Income
Quarterly
$3.05B
-3.0%
Prior year: $3.15B
Annual (YTD)
$8.49B
N/A
Prior year: $10.15B
EPS (Basic)
Quarterly
$4.91
-3.5%
Prior year: $5.09
Annual (YTD)
$13.76
N/A
Prior year: $16.36

MARGIN ANALYSIS

Operating Margin
Current Quarter
17.3%
Prior Year
19.5%
YoY Change
-220 bps
Net Margin
Current Quarter
13.0%
Prior Year
15.3%
YoY Change
-226 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

REVENUE BY SEGMENT — Q3 FY2025 2025

VISUAL OVERVIEW

|
Energy & Transportation
-5200.0%
$156000.0B
Financial Products Segment
-1400.0%
$42000.0B
All Other Segment
33.3%
$-1000.0B
Corporate Items and Eliminations
166.7%
$-5000.0B
Resource Industries
633.3%
$-19000.0B
Corporate Items and Eliminations
5866.7%
$-176000.0B

DETAILED BREAKDOWN

|
SegmentCurrentPrior YrYoY% Total
Energy & Transportation
$156000.0B———
Financial Products Segment
$42000.0B———
All Other Segment
$-1000.0B——33.3%
Corporate Items and Eliminations
$-5000.0B——166.7%
Resource Industries
$-19000.0B——633.3%
Corporate Items and Eliminations
$-176000.0B——5866.7%
Total Revenue$-3000.0B——100.0%

Segment performance shows business unit health and growth drivers.

SPECIAL ITEMS & ADJUSTMENTS

Q3 2025
Restructuring costs
Excluded from adjusted profit per share
+$37M
$0.07 per share
Q3 2024
Restructuring costs
Excluded from adjusted profit per share
+$70M
$0.11 per share
Q3 2025
Increase in estimated global annual effective tax rate
Impacted Q3 2025 effective tax rate
+$54M
Q3 2025
Discrete tax charge for changes in estimates related to prior years
Impacted Q3 2025 effective tax rate
+$41M
Q3 2024
Discrete tax benefits for changes in estimates related to prior years
Impacted Q3 2024 effective tax rate
$47M
Q3 2025
Discrete tax benefit for settlement of stock-based compensation awards
Impacted Q3 2025 effective tax rate
$10M
Q3 2024
Discrete tax benefit for settlement of stock-based compensation awards
Impacted Q3 2024 effective tax rate
$7M
Total Impact
+$138M$0.18 per share

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

Solid performance driven by resilient demand and focused execution across three primary segments.

— CATERPILLAR INC, Q3 FY2025 2025 Earnings Call

Continued discipline in a dynamic environment, coupled with a growing backlog, positions for sustained momentum and long-term profitable growth.

— CATERPILLAR INC, Q3 FY2025 2025 Earnings Call

Higher sales volume was mainly driven by higher sales of equipment to end users.

— CATERPILLAR INC, Q3 FY2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.