Caterpillar Inc (CAT)

[DewDiligence]

CAT reports soft_but_expected 1Q25 results:

https://www.caterpillar.com/content/dam/caterpillarDotCom/releases/1q25/1q25-caterpillar-inc-financial-results.pdf

• 1Q25 sales were $14.25B, -10% YoY. Volume declined by 8% YoY mainly due to reduced dealer inventory; price declined by 2% YoY.

• 1Q25 sales in the Construction segment (comprising 39% of non-financial corporate sales) were $5.18B, -19% YoY.

• 1Q25 sales in the Resources Industries (mining equipment) segment (comprising 22% of non-financial corporate sales) were $2.88B, -10% YoY.

• 2Q24 sales in the Energy & Transportation segment (comprising 49% of non-financial corporate sales) were $6.57B, -2% YoY.

• Note: The three business segments above sum to more than 100% of corporate non-financial sales due to inter-segment sales, which are removed from the total sales number.

• 1Q25 GAAP EPS was $4.20, down from $5.75 in 1Q24.

• 1Q26 non-GAAP EPS, which excludes restructuring costs, was $4.25, down from $5.60 in 1Q24.

CAT does not provide specific guidance for sales or EPS, but it reiterated today—that full-year 2025 results are expected to be slightly down from 2024.

CAT estimates that 2Q25 results will take a $350M ($0.73/sh) hit from tariffs. CAT has not provided an estimate for the tariff hit for the full year.

1Q25 CC slides:
https://s25.q4cdn.com/358376879/files/doc_financials/2025/q1/1Q-2025-Analyst-Slide-Deck-Final.pdf