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Caterpillar(CAT) - 2024 Q4 - Annual Results
CATCaterpillar(CAT)2025-01-30 11:32

Sales and Revenues - Fourth-quarter 2024 sales and revenues were 16.2billion,a516.2 billion, a 5% decrease compared to 17.1 billion in the fourth quarter of 2023[4] - Full-year 2024 sales and revenues were 64.8billion,down364.8 billion, down 3% compared to 67.1 billion in 2023[5] - Total sales and revenues for Q4 2024 were 16.215billion,adecreasefrom16.215 billion, a decrease from 17.070 billion in Q4 2023[77] - Total sales and revenues for Machinery, Energy & Transportation in 2024 were 61.363billion,withFinancialProductscontributing61.363 billion, with Financial Products contributing 4.212 billion, resulting in a total of 64.809 billion[99] - Total sales and revenues for Machinery, Energy & Transportation in 2023 were 63.869 billion, with Financial Products contributing 3.927billion,resultinginatotalof3.927 billion, resulting in a total of 67.060 billion[103] Profit and Earnings - Fourth-quarter 2024 profit per share was 5.78,comparedto5.78, compared to 5.28 in the fourth quarter of 2023[4] - Full-year 2024 profit per share was 22.05,comparedto22.05, compared to 20.12 in 2023[5] - Adjusted profit per share for Q4 2024 was 5.14,comparedto5.14, compared to 5.78 under GAAP[63] - Adjusted profit per share for 2024 was 21.90,comparedto21.90, compared to 22.05 under GAAP[63] - Profit of consolidated companies for Q4 2024 was 2.780billion,comparedto2.780 billion, compared to 2.662 billion in Q4 2023[77] - Profit of consolidated companies for 2024 was 10.744 billion, with Machinery, Energy & Transportation contributing 10.645 billion and Financial Products contributing 724million[99]−Profitofconsolidatedcompaniesfor2023was724 million[99] - Profit of consolidated companies for 2023 was 10.269 billion, with Machinery, Energy & Transportation contributing 9.928billionandFinancialProductscontributing9.928 billion and Financial Products contributing 686 million[103] - Consolidated profit of 10,788 million, with Machinery, Energy & Transportation contributing 10,689 million and Financial Products contributing 724million[122]OperatingProfitandMargins−Fourth−quarter2024operatingprofitmarginwas18.0724 million[122] Operating Profit and Margins - Fourth-quarter 2024 operating profit margin was 18.0%, compared to 18.4% in the fourth quarter of 2023[4] - Full-year 2024 operating profit margin was 20.2%, compared to 19.3% in 2023[5] - Operating profit for Q4 2024 was 2.924 billion, a decrease of 210million(7210 million (7%) compared to 3.134 billion in Q4 2023, primarily due to lower sales volume[23] - Adjusted operating profit margin for Q4 2024 was 18.3%, down from 18.9% in Q4 2023[23] - Operating profit for Q4 2024 was 2.924billion,downfrom2.924 billion, down from 3.134 billion in Q4 2023[77] - Operating profit for 2024 was 13.072 billion, with Machinery, Energy & Transportation contributing 13.098 billion and Financial Products contributing 605million[99]−Operatingprofitfor2023was605 million[99] - Operating profit for 2023 was 12.966 billion, with Machinery, Energy & Transportation contributing 12.659billionandFinancialProductscontributing12.659 billion and Financial Products contributing 923 million[103] - Adjusted operating profit for Q4 2024 increased to 2,961million,upfrom2,961 million, up from 2,924 million under GAAP, with a margin of 18.3%[63] - Annual adjusted operating profit for 2024 reached 13,431million,withamarginof20.713,431 million, with a margin of 20.7%, up from 13,072 million under GAAP[63] Segment Performance - Construction Industries segment sales decreased by 8% to 6.0billioninthefourthquarterof2024[14]−ResourceIndustriessegmentsalesdecreasedby96.0 billion in the fourth quarter of 2024[14] - Resource Industries segment sales decreased by 9% to 2.96 billion in the fourth quarter of 2024[14] - Construction Industries' sales decreased by 516million(8516 million (8%) to 6.003 billion in Q4 2024, driven by unfavorable price realization of 300millionandlowersalesvolumeof300 million and lower sales volume of 227 million[34] - Resource Industries' sales decreased by 280million(9280 million (9%) to 2.962 billion in Q4 2024, primarily due to lower sales volume[40] - Energy & Transportation segment sales increased by 48million(348 million (3%) to 1.477 billion in Q4 2024[24] - Energy & Transportation's total sales decreased by 20millionto20 million to 7.649 billion in Q4 2024 compared to 7.669billioninQ42023,primarilyduetolowersalesvolumeof7.669 billion in Q4 2023, primarily due to lower sales volume of 301 million, partially offset by favorable price realization of 221millionandhigherinter−segmentsalesof221 million and higher inter-segment sales of 52 million[43] - Energy & Transportation's segment profit increased by 48million(348 million (3%) to 1.477 billion in Q4 2024, driven by favorable price realization of 221million,partiallyoffsetbylowersalesvolumeimpactof221 million, partially offset by lower sales volume impact of 158 million and unfavorable manufacturing costs of 17million[44]−OilandGassalesdecreasedby17 million[44] - Oil and Gas sales decreased by 320 million (14%) to 1.927billioninQ42024,primarilyduetolowersalesinreciprocatingenginesandturbines[46]−PowerGenerationsalesincreasedby1.927 billion in Q4 2024, primarily due to lower sales in reciprocating engines and turbines[46] - Power Generation sales increased by 407 million (22%) to 2.242billioninQ42024,drivenbyhighersalesinlargereciprocatingenginesandturbines[46]−FinancialProducts′segmentrevenuesincreasedby2.242 billion in Q4 2024, driven by higher sales in large reciprocating engines and turbines[46] - Financial Products' segment revenues increased by 43 million (4%) to 1.024billioninQ42024,primarilyduetohigheraverageearningassetsof1.024 billion in Q4 2024, primarily due to higher average earning assets of 29 million and higher average financing rates of 11million[47]−FinancialProducts′segmentprofitdecreasedby11 million[47] - Financial Products' segment profit decreased by 68 million (29%) to 166millioninQ42024,mainlyduetounfavorableequitysecuritiesimpactof166 million in Q4 2024, mainly due to unfavorable equity securities impact of 23 million, lower margin impact of 17million,andhighercreditlossprovisionsof17 million, and higher credit loss provisions of 17 million[48] - Resource Industries' segment profit decreased by 134million(22134 million (22%) to 466 million in Q4 2024, primarily due to lower sales volume[41] Cash Flow and Financial Position - Enterprise operating cash flow for 2024 was 12.0billion,with12.0 billion, with 6.9 billion of enterprise cash at the end of the fourth quarter[9] - The company deployed 10.3billionofcashforsharerepurchasesanddividendsin2024[6]−Netcashprovidedbyoperatingactivitiesfor2024was10.3 billion of cash for share repurchases and dividends in 2024[6] - Net cash provided by operating activities for 2024 was 12.035 billion, down from 12.885billionin2023[84]−Capitalexpendituresfor2024were12.885 billion in 2023[84] - Capital expenditures for 2024 were 1.988 billion, up from 1.597billionin2023[84]−Dividendspaidin2024totaled1.597 billion in 2023[84] - Dividends paid in 2024 totaled 2.646 billion, compared to 2.563billionin2023[84]−Netcashprovidedbyoperatingactivitieswas2.563 billion in 2023[84] - Net cash provided by operating activities was 12,035 million, with Machinery, Energy & Transportation contributing 11,437millionandFinancialProductscontributing11,437 million and Financial Products contributing 1,445 million[122] - Capital expenditures excluding equipment leased to others were 1,988 million, with Machinery, Energy & Transportation accounting for 1,952 million[122] - Additions to finance receivables totaled 15,409million,primarilydrivenbyFinancialProductswith15,409 million, primarily driven by Financial Products with 16,845 million[122] - Dividends paid amounted to 2,646 million, with Machinery, Energy & Transportation contributing 2,646 million and Financial Products contributing 625million[122]−Proceedsfromdebtissued(originalmaturitiesgreaterthanthreemonths)were625 million[122] - Proceeds from debt issued (original maturities greater than three months) were 10,283 million, all attributed to Financial Products[122] - Cash, cash equivalents, and restricted cash at the end of the period were 6,896 million, with Machinery, Energy & Transportation holding 6,170 million and Financial Products holding 726million[122]−Depreciationandamortizationexpenseswere726 million[122] - Depreciation and amortization expenses were 2,153 million, with Machinery, Energy & Transportation accounting for 1,368millionandFinancialProductsfor1,368 million and Financial Products for 785 million[122] - Net cash used for investing activities was 2,453 million, with Machinery, Energy & Transportation providing 133 million and Financial Products using 2,787million[122]−Netcashusedforfinancingactivitieswas2,787 million[122] - Net cash used for financing activities was 9,565 million, with Machinery, Energy & Transportation using 11,417millionandFinancialProductsproviding11,417 million and Financial Products providing 1,206 million[122] Taxes and Tax Benefits - The company recorded a discrete tax benefit of 224millioninQ42024duetoataxlawchangerelatedtocurrencytranslation[29]−EffectivetaxrateforQ42024was14.3224 million in Q4 2024 due to a tax law change related to currency translation[29] - Effective tax rate for Q4 2024 was 14.3%, compared to 18.1% in Q4 2023, excluding discrete items[31] - The annual effective tax rate, excluding discrete items, was 22.2% for both Q4 and full-year 2024[67][69] - Tax law changes related to currency translation in 2024 resulted in a 224 million benefit[63][69] Regional Sales Performance - North America sales decreased by 532million(14532 million (14%) to 3.157 billion in Q4 2024, driven by lower sales volume and unfavorable price realization[33] - Latin America sales increased by 36million(636 million (6%) to 623 million in Q4 2024, driven by higher sales volume[33] Financial Products Performance - Cat Financial's past dues decreased to 1.56% at the end of 2024 from 1.79% at the end of 2023, while write-offs increased to 115millionin2024from115 million in 2024 from 65 million in 2023[49] - Interest expense of Financial Products for 2024 was 1.286billion,comparedto1.286 billion, compared to 1.030 billion in 2023[99][103] Assets and Liabilities - Total assets as of December 31, 2024, were 87.764billion,slightlyupfrom87.764 billion, slightly up from 87.476 billion in 2023[80] - Total liabilities as of December 31, 2024, were 68.270billion,upfrom68.270 billion, up from 67.973 billion in 2023[80] - Total assets increased to 87.764 billion, with Machinery, Energy & Transportation (ME&T) contributing 52.642 billion and Financial Products contributing 37.129billion[109]−Currentassetstotaled37.129 billion[109] - Current assets totaled 45.682 billion, including 6.889billionincashandcashequivalentsand6.889 billion in cash and cash equivalents and 16.827 billion in inventories[109] - Long-term receivables for finance amounted to 13.242billion,primarilydrivenbyFinancialProducts[109]−Totalliabilitiesstoodat13.242 billion, primarily driven by Financial Products[109] - Total liabilities stood at 68.270 billion, with current liabilities accounting for 32.272billion[109]−Shareholders′equitywasreportedat32.272 billion[109] - Shareholders' equity was reported at 19.494 billion, with profit employed in the business at 59.352billion[109]−Cashandcashequivalentsincreasedto59.352 billion[109] - Cash and cash equivalents increased to 6.978 billion, with ME&T holding 6.106billionandFinancialProductsholding6.106 billion and Financial Products holding 872 million[115] - Receivables – trade and other increased to 9.310 billion, with ME&T contributing 3.971 billion and Financial Products contributing 570million[115]−Totalcurrentliabilitiesroseto570 million[115] - Total current liabilities rose to 34.728 billion, driven by short-term borrowings of 4.643billionandaccountspayableof4.643 billion and accounts payable of 7.906 billion[115] - Long-term debt due after one year decreased to 24.472 billion, with ME&T holding 8.626 billion and Financial Products holding 15.893billion[115]−Shareholders′equityslightlyincreasedto15.893 billion[115] - Shareholders' equity slightly increased to 19.503 billion, with profit employed in the business at 51.250billion[115]ResearchandDevelopment−ResearchanddevelopmentexpensesforQ42024were51.250 billion[115] Research and Development - Research and development expenses for Q4 2024 were 519 million, down from 554millioninQ42023[77]−Researchanddevelopmentexpensesfor2024were554 million in Q4 2023[77] - Research and development expenses for 2024 were 2.107 billion, consistent with the previous year's 2.108billion[99][103]CorporateItemsandRestructuring−CorporateItemsandEliminationsexpensedecreasedby2.108 billion[99][103] Corporate Items and Restructuring - Corporate Items and Eliminations expense decreased by 257 million to 227millioninQ42024,drivenbytimingdifferences,favorablefairvalueadjustments,andlowerrestructuringcosts[50]−Restructuringcostsrelatedtodivestituresofnon−U.S.entitiesin2024amountedto227 million in Q4 2024, driven by timing differences, favorable fair value adjustments, and lower restructuring costs[50] - Restructuring costs related to divestitures of non-U.S. entities in 2024 amounted to 164 million[63] - Pension/OPEB mark-to-market losses for 2024 were 154million,impactingbothQ4andfull−yearresults[63][69]AdjustedFinancialMetrics−AdjustedprofitbeforetaxesforQ42024was154 million, impacting both Q4 and full-year results[63][69] Adjusted Financial Metrics - Adjusted profit before taxes for Q4 2024 was 3,126 million, slightly lower than the GAAP figure of 3,243million[63]−Adjustedprofitbeforetaxesfor2024was3,243 million[63] - Adjusted profit before taxes for 2024 was 13,578 million, compared to 13,373millionunderGAAP[63]ConsolidatedFinancials−Consolidatedprofitbeforetaxesfor2024was13,373 million under GAAP[63] Consolidated Financials - Consolidated profit before taxes for 2024 was 13.373 billion, with Machinery, Energy & Transportation contributing 13.308billionandFinancialProductscontributing13.308 billion and Financial Products contributing 690 million[99] - Consolidated profit before taxes for 2023 was 13.050 billion, with Machinery, Energy & Transportation contributing 12.488 billion and Financial Products contributing 907 million[103] Sales of Machinery, Energy & Transportation - Sales of Machinery, Energy & Transportation for Q4 2024 were 15.332 billion, down from 16.237billioninQ42023[77]Shareholders′Equity−Shareholders′equitywasreportedat16.237 billion in Q4 2023[77] Shareholders' Equity - Shareholders' equity was reported at 19.494 billion, with profit employed in the business at 59.352billion[109]−Shareholders′equityslightlyincreasedto59.352 billion[109] - Shareholders' equity slightly increased to 19.503 billion, with profit employed in the business at 51.250billion[115]Caterpillar′sMarketPosition−Caterpillar′stotalsalesandrevenuesfor2024were51.250 billion[115] Caterpillar's Market Position - Caterpillar's total sales and revenues for 2024 were 64.8 billion, maintaining its position as a global leader in construction and mining equipment, engines, and locomotives[54] Upcoming Events - Caterpillar will host a teleconference and webcast on January 30, 2025, to discuss its Q4 and full-year 2024 results, with accompanying slides available on the company's website[56]