Caterpillar, Inc. · NYSE:CAT
Caterpillar — Q4 2024 Earnings Presentation
32 slides from Caterpillar's earnings presentation, Jan 30, 2025
Slide 1: Fourth Quarter and Full Year 2024 Financial Review
4Q 2024 EARNINGS RELEASE Fourth Quarter and Full Year 2024 Financial Review January 30, 2025 Caterpillar: Confidential Yellow
Slide 2: Forward-Looking Statements
4Q 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
4Q 2024 EARNINGS RELEASE Thank you to our Global Team Strong execution in delivering another good year FULL-YEAR ADJUSTED FULL-YEAR RECORD OPERATING PROFIT MARGIN 1 ME&T FREE CASH FLOW 3 FULL-YEAR ADJUSTED PROFIT EXCEEDED THE TOP OF NEAR THE TOP OF THE TARGET RANGE THE TARGET RANGE 1 2 2 PER SHARE R
Slide 4: Key Takeaways: Fourth Quarter 2024 vs. Fourth Quarter 2023
4Q 2024 EARNINGS RELEASE Key Takeaways Fourth Quarter 2024 vs. Fourth Quarter 2023 $16.2B $2.9B $3.0B $5.78 $5.14 5% 7% 8% 2% 9% SALES & OPERATING ADJUSTED PROFIT ADJUSTED REVENUES PROFIT OPERATING PER SHARE PROFIT 2 PROFIT 1 PER SHARE 1 Adjusted operating profit is a non-GAAP measure, and a reconci
Slide 5: Key Takeaways: Full Year 2024 vs. Full Year 2023
4Q 2024 EARNINGS RELEASE Key Takeaways Full Year 2024 vs. Full Year 2023 $64.8B $13.1B $13.4B $22.05 $21.90 3% 2% 1% 10% 3% SALES & OPERATING ADJUSTED PROFIT ADJUSTED REVENUES PROFIT OPERATING PER SHARE PROFIT 2 PROFIT 1 PER SHARE Record 1 Adjusted operating profit is a non-GAAP measure, and a recon
Slide 6: ME&T Free Cash Flow and Capital Deployment
4Q 2024 EARNINGS RELEASE ME&T Free Cash Flow and Capital Deployment 1 31 $9.4B $10.3B Years 1 ME&T FREE CASH FLOW DEPLOYED TO DIVIDEND FULL YEAR 2024 SHAREHOLDERS IN 2024 ARISTOCRAT Returned approximately $40B Through $7.7B of share repurchases Paid higher annual 1 of ME&T Free Cash Flow to and $2.6
Slide 7: End Market Commentary
4Q 2024 EARNINGS RELEASE End Market Commentary CONSTRUCTION INDUSTRIES RESOURCE INDUSTRIES ENERGY & TRANSPORTATION 7 Caterpillar: Confidential Yellow
Slide 8: Sustainability
4Q 2024 EARNINGS RELEASE Sustainability HYBRID-ELECTRIC RETROFIT 972 WHEEL LOADER EXHIBITED AT CES 2025 8 Caterpillar: Confidential Yellow
Slide 9: Financial Results Summary
4Q 2024 EARNINGS RELEASE Financial Results Summary Fourth Quarter 2024 vs. Fourth Quarter 2023 SALES & OPERATING ADJUSTED PROFIT REVENUES PROFIT PER SHARE 1 (in billions of dollars) (in billions of dollars) (in dollars) $17.1 $3.1 $5.23 $5.14 $16.2 $2.9 2018 2019 1 Fourth-quarter 2024 adjusted profi
Slide 10: Consolidated Sales & Revenues
4Q 2024 EARNINGS RELEASE Consolidated Sales & Revenues Fourth Quarter 2024 vs. Fourth Quarter 2023 18,000 17,070 (859) 4TH QUARTER HIGHLIGHTS (54) 8 50 16,215 16,000 Sales & Revenues Decreased $855M or 5% 14,000 • Lower sales volume 12,000 • Unfavorable impact from changes in dealer inventories 10,0
Slide 11: Consolidated Operating Profit
4Q 2024 EARNINGS RELEASE Consolidated Operating Profit Fourth Quarter 2024 vs. Fourth Quarter 2023 3,500 4TH QUARTER HIGHLIGHTS 3,134 (192) (54) (1) 61 2 (50) 55 (31) 2,924 3,000 Operating Profit Decreased $210M or 7% • Profit impact of lower sales volume 2,500 Operating Profit Margin of 18.0% Milli
Slide 12: Construction Industries
4Q 2024 EARNINGS RELEASE Construction Industries Fourth Quarter 2024 vs. Fourth Quarter 2023 4TH QUARTER HIGHLIGHTS TOTAL SALES* SEGMENT PROFIT SEGMENT PROFIT Total Sales Decreased by $516M or 8% (in billions of dollars) (in millions of dollars) (as a percent of total sales*) • North America – Lower
Slide 13: Resource Industries
4Q 2024 EARNINGS RELEASE Resource Industries Fourth Quarter 2024 vs. Fourth Quarter 2023 4TH QUARTER HIGHLIGHTS TOTAL SALES* SEGMENT PROFIT SEGMENT PROFIT (in billions of dollars) (in millions of dollars) (as a percent of total sales*) Total Sales Decreased $280M or 9% • Lower sales volume Segment P
Slide 14: Energy & Transportation
4Q 2024 EARNINGS RELEASE Energy & Transportation Fourth Quarter 2024 vs. Fourth Quarter 2023 4TH QUARTER HIGHLIGHTS TOTAL SALES* SEGMENT PROFIT SEGMENT PROFIT Total Sales Decreased $20M (in billions of dollars) (in millions of dollars) (as a percent of total sales*) • Oil and Gas – Sales decreased i
Slide 15: Financial Products
4Q 2024 EARNINGS RELEASE Financial Products Fourth Quarter 2024 vs. Fourth Quarter 2023 4TH QUARTER HIGHLIGHTS TOTAL REVENUES* SEGMENT PROFIT Total Revenues Increased $43M or 4% (in millions of dollars) (in millions of dollars) • Favorable impact from higher average earning assets driven by North Am
Slide 16: ME&T Free Cash Flow and Capital Deployment
4Q 2024 EARNINGS RELEASE ME&T Free Cash Flow and Capital Deployment 1 $9.4B $10.3B $6.9B 1 ME&T FREE CASH FLOW DEPLOYED TO ENTERPRISE CASH FULL YEAR 2024 SHAREHOLDERS IN 2024 BALANCE Near the top of the Through $7.7B in share repurchases Hold additional $2.0B in slightly longer- 2 target range and $
Slide 17: Key Thoughts As We Look Ahead – Full Year 2025
4Q 2024 EARNINGS RELEASE Key Thoughts As We Look Ahead – Full Year 2025 ● Expect 2025 full-year sales and revenues to be slightly lower than 2024 ● Anticipate another year of services growth 1 ● Do not anticipate a significant change in dealer inventory of machines by the end of 2025 2 ● Expect 2025
Slide 18: Key Thoughts As We Look Ahead – 1Q 2025
4Q 2024 EARNINGS RELEASE Key Thoughts As We Look Ahead – 1Q 2025 ● Expect 1Q 2025 sales and revenues to be lower than 1Q 2024 ● Expect 1Q 2025 sales and revenues to account for a lower percentage of full-year sales and revenues than is typical by about 100 basis points ● Expect to build less dealer
Slide 19: Full Year 2024 Key Takeaways
4Q 2024 EARNINGS RELEASE Full Year 2024 Key Takeaways FULL-YEAR ADJUSTED FULL-YEAR ME&T THIRD STRAIGHT YEAR WITH OPERATING PROFIT MARGIN 1 FREE CASH FLOW 3 RECORD ADJUSTED EXCEEDED THE TOP OF NEAR THE TOP OF PROFIT PER SHARE 1 THE TARGET RANGE THE TARGET RANGE 2 2 EXECUTING OUR STRATEGY FOR LONG-TER
Slide 20: Q&A
4Q 2024 EARNINGS RELEASE Q&A 20 Caterpillar: Confidential Yellow
Slide 21: Appendix
4Q 2024 EARNINGS RELEASE Appendix 21 Caterpillar: Confidential Yellow
Slide 22: 2025 Caterpillar Earnings Call Schedule
4Q 2024 EARNINGS RELEASE 2025 Caterpillar Earnings Call Schedule Earnings Quarter Release Date Call Time 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 2025 Wednesday, October 29, 2025 8:30 a.m. Eastern 22 Caterpill
Slide 23: Dealer Inventory Changes
4Q 2024 EARNINGS RELEASE Dealer Inventory Changes 1 Increase/(Decrease) 2023 2024 YoY YoY Full Full Impact to Impact to 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q (USD in billions) Year2 Year2 4Q Sales3 FY Sales3 Dealer Inventory1 of Machines $1.1 $0.2 $0.4 ($1.4) $0.7 $1.1 ($0.4) $0.1 ($1.6) ($0.7) ($0.2) ($1.4) Tota
Slide 24: Order Backlog
4Q 2024 EARNINGS RELEASE Order Backlog Increased Increased Increased $1.3B $0.1B $2.5B 4Q 2024 3Q 2024 4Q 2024 vs. 3Q 2024 vs. 2Q 2024 vs. 4Q 2023 24 Caterpillar: Confidential Yellow
Slide 25: Adjusted Operating Profit Margin Target Range
4Q 2024 EARNINGS RELEASE Adjusted Operating Profit Margin Target Range 1 25% 1 Adjusted Operating Profit Margin % 22.0% 20.0% 20% Progressive adjusted operating profit margin target 1 18.0% • 18.0% 16.0% range 15% 14.0% 16.0% 14.0% Adjusted operating profit margin target range: 1 12.0% • 10% 10.0% •
Slide 26: Consolidated Sales & Revenues
4Q 2024 EARNINGS RELEASE Consolidated Sales & Revenues Full Year 2024 vs. Full Year 2023 26 Caterpillar: Confidential Yellow
Slide 27: Consolidated Operating Profit
4Q 2024 EARNINGS RELEASE Consolidated Operating Profit Full Year 2024 vs. Full Year 2023 27 Caterpillar: Confidential Yellow
Slide 28: Additional Key Thoughts As We Look Ahead – Full Year 2025
4Q 2024 EARNINGS RELEASE Additional Key Thoughts As We Look Ahead – Full Year 2025 ● Expect unfavorable price realization to account for about a 1 percent decrease in 2025 full-year sales and revenues ● Expect a slight headwind in 2025 full-year Other Income and Expense compared to 2024 due to lower
Slide 29: Non-GAAP Financial Measures
4Q 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 December 31, 2024 - U.S. GAAP $ 2,924 18.0% $ 3,243 $ 463 $ 2,
Slide 30: Estimated Annual Tax Rate Reconciliation
4Q 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 December 31, 2024 - U.S. GAAP $ 3,243 $ 463 14.3% Pension/OPEB mark-to-market (gains) losses (154) (43) Tax law chang
Slide 31: Estimated Annual Tax Rate Reconciliation
4Q 2024 EARNINGS RELEASE Estimated Annual Tax Rate Reconciliation Provision Profit Before (Benefit) for Effective Tax (Dollars in millions) Taxes Income Taxes Rate Twelve Months Ended December 31, 2024 - U.S. GAAP $ 13,373 $ 2,629 19.7% Restructuring (income) costs - divestitures of certain non-U.S.
Slide 32: Reconciliation to U.S. GAAP
4Q 2024 EARNINGS RELEASE Reconciliation to U.S. GAAP Reconciliation of ME&T Cash Flow from Operations to ME&T Free Cash Flow Note: Amounts may not add due to rounding. Note: See reconciliation of ME&T cash flow from operations to consolidated net cash provided by operating activities in the Suppleme