The earnings call presented a mixed picture. While Caterpillar highlighted strong backlog growth, particularly in the Energy & Transportation segment, and maintained a strong financial position, challenges such as a slight decline in sales and significant tariff headwinds were evident. The company's outlook remains optimistic for the second half of 2025, despite these challenges.

Company Guidance

During the Second Quarter 2025 Caterpillar Earnings Conference Call, the company reported a 1% decrease in sales and revenues compared to the previous year, reaching $16.6 billion, which was in line with their expectations. The adjusted operating profit was $2.9 billion, with a margin of 17.6%, both exceeding their expectations. The company highlighted a $2.5 billion growth in backlog across all three primary segments, resulting in a record backlog of $37.5 billion. Despite a dynamic environment, Caterpillar maintained an Enterprise Machinery, Energy & Transportation (ME&T) free cash flow within the $5 billion to $10 billion target range, with $1.5 billion returned to shareholders through share repurchases and dividends. The company noted a 9% sales increase in Energy & Transportation, driven primarily by a 19% growth in power generation. Meanwhile, sales in Construction Industries rose by 2%, while Resource Industries saw a 3% decline. Caterpillar expressed optimism about the second half of 2025, projecting moderate sales growth and a strong backlog, although they acknowledged that incremental tariffs posed a significant headwind to profitability, estimated at around $1.3 billion to $1.5 billion for the year.

Backlog Growth

Backlog increased by $2.5 billion, reaching a record level of $37.5 billion, driven by strong order rates across all three primary segments.

Energy & Transportation Segment Performance

Energy & Transportation sales increased by 7% year-over-year, with significant growth in power generation sales (28%) and an overall 9% increase in sales to users.

Shareholder Returns

Approximately $1.5 billion was returned to shareholders through share repurchases and dividends during the quarter.

Positive Cash Flow

ME&T free cash flow was about $2.4 billion in the second quarter, reflecting strong operating cash.

Strong Financial Position

The company issued bonds totaling $2 billion at attractive rates, maintaining a strong balance sheet with $5.4 billion in enterprise cash.

Caterpillar (CAT) Earnings, Revenues Date & History

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CAT Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Nov 04, 2025	2025 (Q3)	4.66 / -	5.17	―	―	―
Aug 06, 2025	2025 (Q2)	4.89 / 4.72	5.99	-21.20% (-1.27)
Apr 30, 2025	2025 (Q1)	4.35 / 4.25	5.6	-24.11% (-1.35)
Jan 30, 2025	2024 (Q4)	5.02 / 5.14	5.23	-1.72% (-0.09)
Oct 30, 2024	2024 (Q3)	5.35 / 5.17	5.52	-6.34% (-0.35)
Aug 06, 2024	2024 (Q2)	5.56 / 5.99	5.55	7.93% (+0.44)
Apr 25, 2024	2024 (Q1)	5.14 / 5.60	4.91	14.05% (+0.69)
Feb 05, 2024	2023 (Q4)	4.76 / 5.23	3.86	35.49% (+1.37)
Oct 31, 2023	2023 (Q3)	4.80 / 5.52	3.95	39.75% (+1.57)
Aug 01, 2023	2023 (Q2)	4.57 / 5.55	3.18	74.53% (+2.37)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

CAT Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Aug 06, 2025	$434.23	$427.72	-1.50%
Apr 30, 2025	$306.28	$308.14	+0.61%
Jan 30, 2025	$389.92	$371.82	-4.64%
Oct 30, 2024	$382.84	$374.67	-2.13%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.