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 -

Q3 2025

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 (DE:CAT1) Earnings, Revenues Date & History

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DE:CAT1 Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Nov 04, 2025	2025 (Q3)	4.05 / -	4.447	―	―	―
Aug 06, 2025	2025 (Q2)	4.21 / 4.06	5.152	-21.20% (-1.09)
Apr 30, 2025	2025 (Q1)	3.74 / 3.66	4.817	-24.11% (-1.16)
Jan 30, 2025	2024 (Q4)	4.32 / 4.42	4.498	-1.72% (-0.08)
Oct 30, 2024	2024 (Q3)	4.60 / 4.45	4.748	-6.34% (-0.30)
Aug 06, 2024	2024 (Q2)	4.78 / 5.15	4.773	7.93% (+0.38)
Apr 25, 2024	2024 (Q1)	4.42 / 4.82	4.223	14.05% (+0.59)
Feb 05, 2024	2023 (Q4)	4.10 / 4.50	3.32	35.49% (+1.18)
Oct 31, 2023	2023 (Q3)	4.13 / 4.75	3.397	39.75% (+1.35)
Aug 01, 2023	2023 (Q2)	3.93 / 4.77	2.735	74.53% (+2.04)

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

DE:CAT1 Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Aug 06, 2025	€373.50	€369.50	-1.07%
Apr 30, 2025	€266.53	€267.53	+0.37%
Jan 30, 2025	€378.30	€356.49	-5.77%
Oct 30, 2024	€354.22	€348.78	-1.53%

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.