Caterpillar Reports Second-Quarter 2025 Results

Core Insights - Caterpillar Inc. reported second-quarter 2025 results with sales and revenues of $16.6 billion, a 1% decrease from $16.7 billion in the same quarter of 2024, primarily due to unfavorable price realization [2][7] - The company experienced strong orders across segments, driven by infrastructure spending and growing energy needs [2] - Profit per share for the second quarter of 2025 was $4.62, down from $5.48 in the second quarter of 2024, while adjusted profit per share was $4.72 compared to $5.99 [3][11] Financial Performance - Operating profit margin decreased to 17.3% in Q2 2025 from 20.9% in Q2 2024, with adjusted operating profit margin at 17.6% compared to 22.4% [3] - Enterprise operating cash flow was $3.1 billion, with $5.4 billion in cash at the end of the quarter [4][11] - The company deployed $1.5 billion for share repurchases and dividends during the quarter [11] Segment Performance - Sales in the Energy & Transportation segment increased by 7% to $7.836 billion, driven by higher sales volume and favorable price realization [27][28] - Construction Industries sales decreased by 7% to $6.190 billion, primarily due to unfavorable price realization and lower sales volume [20][21] - Resource Industries sales fell by 4% to $3.087 billion, attributed to unfavorable price realization and manufacturing costs [24] Geographic Performance - North America saw a decline in Construction Industries sales by 15%, while EAME experienced a 13% increase due to higher sales volume [10][26] - Latin America sales decreased by 20% in Construction Industries, primarily due to lower sales volume and unfavorable currency impacts [20] - Asia/Pacific region sales increased in Energy & Transportation, driven by higher sales volume [26] Financial Products Segment - Financial Products segment revenues rose by 4% to $1.042 billion, mainly due to higher average earning assets [29][30] - Segment profit increased by 9% to $248 million, supported by favorable impacts from equity securities and higher average earning assets [31] - Past dues at Cat Financial decreased to 1.62% from 1.74% year-over-year, indicating improved credit performance [32]