Caterpillar, Inc. · NYSE:CAT
Caterpillar — Q3 2024 Earnings Presentation
28 slides from Caterpillar's earnings presentation, Oct 30, 2024
Slide 1: Third Quarter 2024 Financial Review
Third Quarter 2024 Financial Review October 30, 2024 Caterpillar: Confidential Yellow
Slide 2: Forward-Looking Statements
3Q 2024 EARNINGS RELEASE Forward-Looking Statements Certain statements in this financial review relate to future events and expectations and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “believe,” “estimate,” “will be,” “wil
Slide 3: Thank you to our Global Team
3Q 2024 EARNINGS RELEASE Thank you to our Global Team We continue to execute our strategy for long-term profitable growth EXPECT FULL-YEAR ADJUSTED INCREASING FULL-YEAR EXPECTATIONS OPERATING PROFIT MARGIN1 TO BE FOR ME&T FREE CASH FLOW3 TO BE 3Q ADJUSTED OPERATING PROFIT MARGIN1 AND ADJUSTED PROFIT
Slide 4: Key Takeaways
3Q 2024 EARNINGS RELEASE Key Takeaways Third Quarter 2024 vs. Third Quarter 2023 4% 9% 8% 7% 6% ADJUSTED ADJUSTED SALES & OPERATING OPERATING PROFIT PROFIT REVENUES PROFIT PROFIT1 PER SHARE PER SHARE2 1 Adjusted operating profit is a non-GAAP measure, and a reconciliation to the most directly compar
Slide 5: ME&T Free Cash Flow & Capital Deployment
3Q 2024 EARNINGS RELEASE ME&T Free Cash Flow1 & Capital Deployment ME&T FREE CASH FLOW1 DEPLOYED TO SHAREHOLDERS DIVIDEND SEPTEMBER 2024 YTD SEPTEMBER 2024 YTD ARISTOCRAT Expect to return substantially Through share repurchases Higher annual dividends all ME&T Free Cash Flow1 and dividends to shareh
Slide 6: End Market Commentary
3Q 2024 EARNINGS RELEASE End Market Commentary CONSTRUCTION INDUSTRIES RESOURCE INDUSTRIES ENERGY & TRANSPORTATION 6 Caterpillar: Confidential Yellow
Slide 7: Strategy and Sustainability
3Q 2024 EARNINGS RELEASE Strategy and Sustainability 7 Caterpillar: Confidential Yellow
Slide 8: Financial Results Summary
3Q 2024 EARNINGS RELEASE Financial Results Summary Third Quarter 2024 vs. Third Quarter 2023 SALES & OPERATING ADJUSTED PROFIT REVENUES PROFIT PER SHARE1 (in billions of dollars) (in billions of dollars) (in dollars) $16.8 $3.4 $5.52 $3.1 $5.17 $16.1 2018 2019 1 Third-quarter 2024 adjusted profit pe
Slide 9: Consolidated Sales & Revenues
3Q 2024 EARNINGS RELEASE Consolidated Sales & Revenues Third Quarter 2024 vs. Third Quarter 2023 18,000 (759) 3RD QUARTER HIGHLIGHTS 16,810 104 (102) 53 16,106 16,000 Sales & Revenues Decreased $704M or 4% 14,000 • Lower sales volume 12,000 • Lower sales of equipment to end users 10,000 • Unfavorabl
Slide 10: Consolidated Operating Profit
3Q 2024 EARNINGS RELEASE Consolidated Operating Profit Third Quarter 2024 vs. Third Quarter 2023 4,000 3,500 3,449 (372) 3RD QUARTER HIGHLIGHTS 91 (42) (43) (5) (24) (11) 104 3,147 3,000 Operating Profit Decreased $302M or 9% • Profit impact of lower sales volume of $372M 2,500 • Favorable price rea
Slide 11: Construction Industries
3Q 2024 EARNINGS RELEASE Construction Industries Third Quarter 2024 vs. Third Quarter 2023 TOTAL SALES* SEGMENT PROFIT SEGMENT PROFIT 3RD QUARTER HIGHLIGHTS (in billions of dollars) (in millions of dollars) (as a percent of total sales*) Total Sales Decreased by $654M or 9% • North America – Lower s
Slide 12: Resource Industries
3Q 2024 EARNINGS RELEASE Resource Industries Third Quarter 2024 vs. Third Quarter 2023 TOTAL SALES* SEGMENT PROFIT SEGMENT PROFIT 3RD QUARTER HIGHLIGHTS (in billions of dollars) (in millions of dollars) (as a percent of total sales*) Total Sales Decreased $323M or 10% • Lower sales volume $3.4 $730
Slide 13: Energy & Transportation
3Q 2024 EARNINGS RELEASE Energy & Transportation Third Quarter 2024 vs. Third Quarter 2023 TOTAL SALES* SEGMENT PROFIT SEGMENT PROFIT 3RD QUARTER HIGHLIGHTS (in billions of dollars) (in millions of dollars) (as a percent of total sales*) Total Sales Increased $328M or 5% • Oil and Gas – Slight decre
Slide 14: Financial Products
3Q 2024 EARNINGS RELEASE Financial Products Third Quarter 2024 vs. Third Quarter 2023 TOTAL REVENUES* SEGMENT PROFIT 3RD QUARTER HIGHLIGHTS (in millions of dollars) (in millions of dollars) Total Revenues Increased $55M or 6% • Favorable impact from higher average earning $1,034 $246 $979 assets of
Slide 15: ME&T Free Cash Flow and Capital Deployment
3Q 2024 EARNINGS RELEASE ME&T Free Cash Flow1 and Capital Deployment ME&T FREE CASH FLOW1 DEPLOYED TO SHAREHOLDERS ENTERPRISE CASH 3Q 2024 3Q 2024 BALANCE Expect to be near the top of Through share repurchases Hold additional $1.8B in slightly our ME&T free cash flow1 and dividends longer-dated liqu
Slide 16: Key Thoughts As We Look Ahead – Full Year 2024
3Q 2024 EARNINGS RELEASE Key Thoughts As We Look Ahead – Full Year 2024 ● Expect 2024 sales and revenues to be slightly lower than our expectations at our last earnings call ● Full-year expectations for adjusted operating profit margin1 and adjusted profit per share1 remain unchanged compared to our
Slide 17: Key Thoughts As We Look Ahead – 4Q 2024
3Q 2024 EARNINGS RELEASE Key Thoughts As We Look Ahead – 4Q 2024 ● Expect 4Q 2024 sales and revenues to be slightly lower compared to 4Q 2023 ● Anticipate lower machine sales to end users in 4Q 2024 compared to a strong 4Q 2023 ● The decline for machine dealer inventory1 in 4Q 2024 is expected to be
Slide 18: Third Quarter 2024 Key Takeaways
3Q 2024 EARNINGS RELEASE Third Quarter 2024 Key Takeaways INCREASING FULL-YEAR EXPECT FULL-YEAR ADJUSTED EXPECTATIONS FOR ME&T FREE RESULTS REFLECT THE OPERATING PROFIT MARGIN1 TO BE BENEFIT OF THE CASH FLOW3 TO BE EXECUTING OUR STRATEGY FOR LONG-TERM PROFITABLE GROWTH 1 Adjusted operating profit ma
Slide 19: 3Q 2024 EARNINGS RELEASE
3Q 2024 EARNINGS RELEASE 19 Caterpillar: Confidential Yellow
Slide 20: 3Q 2024 EARNINGS RELEASE
3Q 2024 EARNINGS RELEASE 20 Caterpillar: Confidential Yellow
Slide 21: 2025 Caterpillar Earnings Call Schedule
3Q 2024 EARNINGS RELEASE 2025 Caterpillar Earnings Call Schedule Earnings Quarter Release Date Call Time 4th Quarter 2024 Thursday, January 30, 2025 8:30 a.m. Eastern 1st Quarter 2025 Wednesday, April 30, 2025 8:30 a.m. Eastern 2nd Quarter 2025 Tuesday, August 5, 2025 8:30 a.m. Eastern 3rd Quarter 2
Slide 22: Dealer Inventory Changes
3Q 2024 EARNINGS RELEASE Dealer Inventory1 Changes (in billions of dollars) Increase/(Decrease) 2023 2024 YoY Impact Full to 3Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Sales3 Year2 Dealer Inventory1 of Machines $1.1 $0.2 $0.4 ($1.4) $0.7 $1.1 ($0.4) $0.1 ($0.2) Total Dealer Inventory1 $1.4 $0.6 $0.6 ($0.9) $2.1 $1.4 (
Slide 23: Order Backlog
3Q 2024 EARNINGS RELEASE Order Backlog Increased Increased Increased $0.1B $0.7B $0.6B 3Q 2024 2Q 2024 3Q 2024 vs. 2Q 2024 vs. 1Q 2024 vs. 3Q 2023 23 Caterpillar: Confidential Yellow
Slide 24: Adjusted Operating Profit Margin Target Range
3Q 2024 EARNINGS RELEASE Adjusted Operating Profit Margin1 Target Range 25% Adjusted Operating Profit Margin %1 22.0% 20.0% 20% 18.0% • Progressive adjusted operating profit margin1 target 18.0% 14.0% 16.0% range 15% 16.0% 14.0% 12.0% • Adjusted operating profit margin1 target range: 10% 10.0% • 10-
Slide 25: Additional Key Thoughts As We Look Ahead – Full Year 2024
3Q 2024 EARNINGS RELEASE Additional Key Thoughts As We Look Ahead – Full Year 2024 ● Capital expenditures anticipated to be around $2.0 billion ● Anticipate restructuring costs to be approximately $400 million ● Expect global annual effective tax rate, excluding discrete items, of 22.5% 25 Caterpill
Slide 26: Non-GAAP Financial Measures
3Q 2024 EARNINGS RELEASE Non-GAAP Financial Measures Provision Operating Operating Profit Before (Benefit) for Profit per (Dollars in millions except per share data) Profit Profit Margin Taxes Income Taxes Profit Share Three Months Ended September 30, 2024 - U.S. GAAP $ 3,147 19.5% $ 3,098 $ 642 $ 2
Slide 27: Estimated Annual Tax Rate Reconciliation
3Q 2024 EARNINGS RELEASE Estimated Annual Tax Rate Reconciliation Provision Profit Before (Benefit) for Effective Tax (Dollars in millions) Taxes Income Taxes Rate Three Months Ended September 30, 2024 - U.S. GAAP $ 3,098 $ 642 20.7% Changes in estimates related to prior years - 47 Excess stock-base
Slide 28: Reconciliation to U.S. GAAP
3Q 2024 EARNINGS RELEASE Reconciliation to U.S. GAAP Reconciliation of ME&T Cash Flow from Operations to ME&T Free Cash Flow Sep YTD Sep YTD (USD in billions) 3Q 2023 3Q 2024 2023 2024 ME&T cash flow from operations $ 3.3 $ 3.2 $ 8.0 $ 7.7 ME&T capital expenditures (0.4) (0.4) (1.1) (1.3) ME&T free