Caterpillar(US:CAT)2025-10-29 10:32Financial Performance - Third-quarter 2025 sales and revenues were $17.6 billion, a 10% increase from $16.1 billion in the same quarter of 2024[1][2][7] - Profit per share for the third quarter of 2025 was $4.88, down from $5.06 in the third quarter of 2024; adjusted profit per share was $4.95 compared to $5.17[1][3] - Operating profit margin for the third quarter of 2025 was 17.3%, down from 19.5% in the same quarter of 2024; adjusted operating profit margin was 17.5% compared to 20.0%[3] - Operating profit for the third quarter of 2025 was $3.052 billion, a decrease of $95 million, or 3%, compared to $3.147 billion in the third quarter of 2024[17] - Profit attributable to common shareholders for the nine months ended September 30, 2025, was $6,482 million, compared to $8,001 million for the same period in 2024, representing a decline of 19%[58] - Operating profit for the nine months ended September 30, 2025, was $8,491 million, compared to $10,148 million in the same period of 2024, reflecting a decrease of approximately 16.3%[72] - The company reported a consolidated profit before taxes of $8,515 million for the nine months ended September 30, 2025, compared to $10,130 million in the same period of 2024[72] Cash Flow and Investments - Enterprise operating cash flow for the third quarter of 2025 was $3.7 billion, with $7.5 billion in enterprise cash at the end of the quarter[4] - Cash flow from operating activities for the nine months ended September 30, 2025, was $8,148 million, compared to $8,642 million in 2024, a decrease of 5.7%[63] - The company generated a net cash provided by operating activities of $8,148 million for the nine months ended September 30, 2025[85] - Net cash used for investing activities was $(804) million, a decrease from $1,009 million in the prior period[89] - The company paid dividends totaling $(2,043) million during the nine months ended September 30, 2025[85] - Dividends paid amounted to $(1,966) million, consistent with the previous period[89] Segment Performance - Sales in the Construction Industries segment increased by 7% to $6.76 billion, while the Energy & Transportation segment saw a 17% increase to $8.397 billion[7][9] - Construction Industries' total sales were $6.760 billion in Q3 2025, an increase of $415 million, or 7%, compared to Q3 2024[24] - Resource Industries' total sales were $3.110 billion in Q3 2025, an increase of $62 million, or 2%, compared to Q3 2024[27] - Energy & Transportation's total sales were $8.397 billion in Q3 2025, an increase of $1.210 billion, or 17%, compared to Q3 2024[31] - Construction Industries' segment profit was $1.377 billion in Q3 2025, a decrease of $109 million, or 7%, compared to Q3 2024[25] - Resource Industries' segment profit was $499 million in Q3 2025, a decrease of $120 million, or 19%, compared to Q3 2024[29] - Energy & Transportation's segment profit was $1.678 billion in Q3 2025, an increase of $245 million, or 17%, compared to Q3 2024[34] Tax and Other Income - The effective tax rate for Q3 2025 was 26.7%, compared to 20.7% for Q3 2024[23] - Other income in Q3 2025 was $208 million, compared to $76 million in Q3 2024, driven by favorable foreign currency impacts[23] - The company recorded a $54 million charge in Q3 2025 due to an increase in the estimated global annual effective tax rate[21] - The effective tax rate for Q3 2025 was 26.7%, with an adjusted rate of 24.0% excluding discrete items[52] Financial Products and Credit - Financial Products segment revenues were $1.076 billion in Q3 2025, an increase of $42 million, or 4%, compared to $1.034 billion in Q3 2024[36] - Segment profit for Financial Products was $241 million in Q3 2025, a decrease of $5 million, or 2%, from $246 million in Q3 2024[37] - Past dues at Cat Financial were 1.47% at the end of Q3 2025, down from 1.74% at the end of Q3 2024[38] - Write-offs, net of recoveries, were $40 million in Q3 2025, compared to $27 million in Q3 2024[38] - The allowance for credit losses at Cat Financial totaled $283 million, or 0.89% of finance receivables, as of September 30, 2025[38] - The company reported a higher provision for credit losses of $15 million at Cat Financial, contributing to the decrease in segment profit[37] Assets and Liabilities - Total assets increased to $93,722 million as of September 30, 2025, from $87,764 million at the end of 2024, marking a growth of 6.7%[61] - Total liabilities increased to $73,063 million as of September 30, 2025, from $68,270 million at the end of 2024, an increase of 7.5%[61] - Caterpillar's cash and cash equivalents rose to $7,538 million as of September 30, 2025, compared to $6,889 million at the end of 2024, an increase of 9.4%[61] - Caterpillar Inc. had total liabilities of $68,270 million, with current liabilities at $32,272 million[82] - Total shareholders' equity as of September 30, 2025, was $20,659 million, a decrease from $21,633 million in the previous year[78] Research and Development - Research and development expenses for Q3 2025 were $555 million, up from $533 million in Q3 2024, indicating a 4.1% increase[58] - Research and development expenses for the nine months ended September 30, 2025, totaled $1,586 million, consistent with the previous year[72] Future Outlook - The company reported a growing backlog, indicating potential for sustained momentum and long-term profitable growth[2] - Caterpillar plans to discuss its Q3 2025 results in a teleconference on October 29, 2025[43]