Caterpillar(US:CAT)2025-11-03 16:06Financial Performance - Total sales and revenues for Q3 2025 were $17.638 billion, an increase of $1.532 billion, or 10 percent, compared to $16.106 billion in Q3 2024[185]. - Profit for Q3 2025 was $2.300 billion, a decrease of $164 million, or 7 percent, compared to $2.464 billion for Q3 2024[186]. - Adjusted profit per share for Q3 2025 was $4.95, compared to $5.17 in Q3 2024[187]. - Operating profit margin for Q3 2025 was 17.3 percent, down from 19.5 percent in Q3 2024[187]. - Total sales and revenues for the nine months ended September 30, 2025, were $48.456 billion, a decrease of $138 million compared to $48.594 billion for the same period in 2024[187]. - Operating profit for Q3 2025 was $3.052 billion, a decrease of $95 million, or 3%, compared to $3.147 billion in Q3 2024[218]. - Total sales for Energy & Transportation in Q3 2025 were $8.397 billion, an increase of $1.210 billion, or 17 percent, compared to $7.187 billion in Q3 2024[233]. - Energy & Transportation's segment profit was $1.678 billion in Q3 2025, an increase of $245 million, or 17 percent, compared to $1.433 billion in Q3 2024[234]. - Total sales and revenues for the nine months ended September 30, 2025, were $48.456 billion, a decrease of $138 million compared to $48.594 billion for the same period in 2024[244]. - Operating profit for the nine months ended September 30, 2025, was $8.491 billion, a decrease of $1.657 billion, or 16 percent, compared to $10.148 billion for the same period in 2024[254]. Segment Performance - Construction Industries' total sales were $6.760 billion in Q3 2025, an increase of $415 million, or 7%, from $6.345 billion in Q3 2024[225]. - Resource Industries' total sales were $3.110 billion in Q3 2025, an increase of $62 million, or 2%, from $3.048 billion in Q3 2024[228]. - In Construction Industries, the company anticipates growth in sales of equipment to end users in 2025 despite softness in the global industry[189]. - In Energy & Transportation, strong growth in sales for Power Generation is expected in 2025, driven by demand related to cloud computing and generative AI[191]. - Total sales for Construction Industries were $18.134 billion for the nine months ended September 30, 2025, a decrease of $1.318 billion, or 7 percent, compared to $19.452 billion for the same period in 2024[260]. - Resource Industries' total sales were $9.121 billion for the nine months ended September 30, 2025, a decrease of $370 million, or 4 percent, compared to $9.491 billion for the same period in 2024[265]. - Energy & Transportation's total sales for the nine months ended September 30, 2025, were $22.801 billion, an increase of $1.596 billion, or 8%, compared to $21.205 billion for the same period in 2024[268]. Costs and Expenses - Unfavorable manufacturing costs impacted operating profit by $686 million in Q3 2025, largely due to higher tariffs[218]. - Interest expense excluding Financial Products in Q3 2025 was $133 million, up from $125 million in Q3 2024, due to higher average debt outstanding[230]. - Other income in Q3 2025 was $208 million, compared to $76 million in Q3 2024, primarily driven by favorable foreign currency impacts[230]. - Unfavorable manufacturing costs of $1.118 billion and unfavorable price realization of $855 million contributed to the decrease in operating profit[254]. - Corporate items and eliminations expense was $584 million in Q3 2025, an increase of $127 million from Q3 2024[239]. - Corporate items and eliminations expense was $1.601 billion for the nine months ended September 30, 2025, an increase of $117 million from the same period in 2024[274]. Cash Flow and Investments - Consolidated operating cash flow for the first nine months of 2025 was $8.148 billion, down $494 million compared to the same period a year ago[278]. - Net cash provided by operating activities for Machinery, Energy & Transportation was $7.745 billion in the first nine months of 2025, a slight increase from $7.726 billion in the same period of 2024[290]. - Capital expenditures for the first nine months of 2025 were $1.944 billion, compared to $1.284 billion for the same period in 2024, with expectations of approximately $2.5 billion for the full year[294]. - Net cash used for financing activities during the first nine months of 2025 was $5.128 billion, a decrease from $10.044 billion in the same period of 2024[292]. - The company reported a net cash used for investing activities of $2,827 million for the nine months ended September 30, 2025[326]. Debt and Equity - Total debt as of September 30, 2025, was $41.534 billion, an increase of $3.125 billion from year-end 2024[279]. - Total liabilities as of September 30, 2025, were $73,063 million, with long-term debt due after one year at $27,736 million[323]. - Total shareholders' equity as of September 30, 2025, was $20,659 million, reflecting a decrease of $974 million due to adjustments[323]. - The company repurchased $4.850 billion of common stock in the first nine months of 2025, with $15.280 billion remaining available under the 2024 share repurchase authorization[298]. - The company maintained a quarterly dividend of $1.51 per share, with total dividends paid amounting to $2.043 billion in the first nine months of 2025[297]. Future Outlook - The company expects a net incremental tariff impact of about $1.6 billion to $1.75 billion for 2025[194]. - Restructuring costs are anticipated to be approximately $300 million to $350 million in 2025[195]. - The company expects sales and revenues to increase modestly in 2025 compared to 2024, with services revenues expected to be about flat[192]. - The company intends to utilize liquidity and debt capacity to fund targeted investments that drive long-term profitable growth, including acquisitions[295]. - The company anticipates potential impacts from global economic conditions and commodity price fluctuations on future performance[331]. - The financial services segment faces risks related to delinquencies and market liquidity conditions[331]. - The company is committed to maintaining compliance with environmental laws and regulations, which may affect operational strategies[331].