Caterpillar Inc.
Caterpillar Inc. manufactures and sells construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives in the United States and internationally. Its Construction Industries segment offers asphalt pavers, cold planers, compactors, forestry machines, material handlers, motor graders, pipelayers, road reclaimers, telehandlers, track-type tractors, and track and wheel excavators; compact track, wheel, track-type, backhoe, and skid steer loaders; and related parts and tools. The company's Resource Industries segment provides electric rope and hydraulic shovels, draglines, rotary drills, hard rock vehicles, tractors, mining trucks, wheel loaders, off-highway and articulated trucks, wide-body trucks, wheel tractor scrapers and dozers, fleet management products, landfill and soil compactors, machinery components, autonomous ready vehicles and solutions, work tools, and safety services and mining performance solutions, as well as related parts and services. Its Energy & Transportation segment offers reciprocating engine powered generator sets; reciprocating engines, drivetrain, and integrated systems and solutions; turbines, centrifugal gas compressors, and related services; and diesel-electric locomotives and components, and other rail-related products. The company's Financial Products segment provides operating and finance leases, installment sale contracts, revolving charge accounts, repair/rebuild financing services, working capital loans, and wholesale financing; and insurance and risk management products and services. Its All Other segment offers wear and maintenance components; parts distribution; logistics solutions and distribution services; dealer portfolio management, and brand management and marketing strategy services; and digital investment services. Caterpillar Inc. was founded in 1925 and is headquartered in Irving, Texas.
Analysis Summary
Segment-wise, Construction Industries' total sales grew 7% to $6.760 billion, but segment profit decreased 7% to $1.377 billion, affected by unfavorable price realization and manufacturing costs. Resource Industries saw a modest 2% sales increase to $3.110 billion, but its profit declined significantly by 19% to $499 million, also due to manufacturing costs and price realization. The Energy & Transportation segment was the strongest performer, with sales surging 17% to $8.397 billion and profit matching that growth at 17% to $1.678 billion, driven by robust demand in Oil and Gas (turbines, gas compression) and Power Generation (data center applications). Financial Products revenues increased 4% to $1.076 billion, but profit dipped 2% to $241 million, primarily due to a higher provision for credit losses and increased write-offs.
CEO Joe Creed highlighted "solid performance," "resilient demand," and "focused execution," noting that a "growing backlog" positions the company for "sustained momentum and long-term profitable growth." The company generated strong enterprise operating cash flow of $3.7 billion and deployed $1.1 billion for dividends and share repurchases, demonstrating a commitment to shareholder returns. Key risk factors include ongoing pressures from tariffs on manufacturing costs, the inability to fully offset these costs with price increases, and the impact of a higher effective tax rate. While no explicit numerical forward-looking revenue or EPS guidance was provided for Q4 or full-year 2025, the company indicated an estimated global annual effective tax rate of 24.0% for 2025, excluding discrete items.
Key Highlights
- • Sales and revenues increased 10% to $17.6 billion in Q3 2025, driven by higher sales volume.
- • GAAP profit per share decreased 3.6% to $4.88, impacted by higher costs and tax rate.
- • Operating profit margin declined to 17.3% from 19.5% in Q3 2024, mainly due to unfavorable manufacturing costs (tariffs) and price realization.
- • Energy & Transportation segment was a strong performer with 17% growth in both sales and profit.
- • Generated $3.7 billion in enterprise operating cash flow and deployed $1.1 billion for dividends and share repurchases.
- • CEO noted resilient demand and a growing backlog positioning for sustained momentum.
- • Effective tax rate increased to 26.7% in Q3 2025, influenced by U.S. tax legislation changes.
Financial Metrics
Stock Performance (90 Days)
Positive Signals
- • 10% increase in sales and revenues, driven by higher sales volume to end users.
- • Strong enterprise operating cash flow of $3.7 billion.
- • Deployment of $1.1 billion for dividends and share repurchases, demonstrating commitment to shareholder returns.
- • CEO commentary on "resilient demand" and a "growing backlog" for sustained momentum.
- • Robust performance of the Energy & Transportation segment with 17% growth in sales and profit.
Risks & Concerns
- — Unfavorable manufacturing costs of $686 million, largely due to higher tariffs.
- — Unfavorable price realization of $191 million impacting profitability.
- — Higher selling, general and administrative (SG&A) and research and development (R&D) expenses, primarily from increased compensation.
- — Increase in the effective tax rate to 26.7% due to U.S. tax legislation changes and discrete tax charges.
- — Higher provision for credit losses at Cat Financial ($15 million increase) and increased write-offs.
Full Transcript
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Company Info
- Website
- www.caterpillar.com
- Industry
- Farm & Heavy Construction Machinery
- Sector
- Industrials
- Headquarters
- Irving, TX, United States
- CEO
- Mr. Joseph E. Creed CPA
- Employees
- 112,900
Layoff Stats
- Layoff Events
- 0
- Total Affected
- 0
Recent Layoffs
No canonical layoff events recorded for this company.