Caterpillar, Inc. · NYSE:CAT
Caterpillar — Q2 2025 Earnings Presentation
26 slides from Caterpillar's earnings presentation, Aug 5, 2025
Slide 1: Second Quarter 2025 Financial Review
Second Quarter 2025 Financial Review August 5, 2025
Slide 2: Forward-Looking Statements
2Q 2025 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: Solid Operational Performance
2Q 2025 EARNINGS RELEASE Solid Operational Performance DEPLOYED ABOUT ADJUSTED OPERATING PROFIT1 AND ADJUSTED OPERATING PROFIT MARGIN1 BACKLOG GREW BY $1.5 BILLION ABOVE OUR $2.5 BILLION TO SHAREHOLDERS WITH INCREASES ACROSS ALL EXPECTATIONS THREE PRIMARY SEGMENTS THROUGH SHARE REPURCHASES AND DIVID
Slide 4: Key Takeaways
2Q 2025 EARNINGS RELEASE Key Takeaways Second Quarter 2025 vs. Second Quarter 2024 $16.6B $2.9B $2.9B $4.62 $4.72 1% 18% 22% 16% 21% SALES & OPERATING ADJUSTED PROFIT ADJUSTED REVENUES PROFIT OPERATING PER SHARE2 PROFIT PROFIT1 PER SHARE2,3 1 Adjusted operating profit is a non-GAAP measure, and a re
Slide 5: End Market Commentary
2Q 2025 EARNINGS RELEASE End Market Commentary CONSTRUCTION INDUSTRIES RESOURCE INDUSTRIES ENERGY & TRANSPORTATION 5
Slide 6: Financial Results Summary
2Q 2025 EARNINGS RELEASE Financial Results Summary Second Quarter 2025 vs. Second Quarter 2024 SALES & OPERATING ADJUSTED PROFIT REVENUES PROFIT PER SHARE1,2 (in billions of dollars) (in billions of dollars) (in dollars) $16.7 $16.6 $3.5 $5.99 $2.9 $4.72 1 Second-quarter 2025 adjusted profit per sha
Slide 7: Consolidated Sales and Revenues
2Q 2025 EARNINGS RELEASE Consolidated Sales and Revenues Second Quarter 2025 vs. Second Quarter 2024 2ND QUARTER HIGHLIGHTS 20,000 Sales & Revenues Decreased $120M or 1% 18,000 • Unfavorable price realization 16,689 237 (414) 11 46 16,569 • Higher sales volume 16,000 • Higher sales of equipment to e
Slide 8: Consolidated Operating Profit
2Q 2025 EARNINGS RELEASE Consolidated Operating Profit Second Quarter 2025 vs. Second Quarter 2024 2ND QUARTER HIGHLIGHTS 4,000 Operating Profit Decreased $622M or 18% 3,482 98 (414) • Unfavorable manufacturing costs 3,500 (504) • Primarily due to the impact of higher tariffs2 3,000 202 27 2,860 • U
Slide 9: Construction Industries
2Q 2025 EARNINGS RELEASE Construction Industries Second Quarter 2025 vs. Second Quarter 2024 2ND QUARTER HIGHLIGHTS Total Sales Decreased $493M or 7% TOTAL SALES* SEGMENT PROFIT SEGMENT PROFIT • Unfavorable price realization (in billions of dollars) (in millions of dollars) (as a percent of total sa
Slide 10: Resource Industries
2Q 2025 EARNINGS RELEASE Resource Industries Second Quarter 2025 vs. Second Quarter 2024 2ND QUARTER HIGHLIGHTS Total Sales Decreased $119M or 4% TOTAL SALES* SEGMENT PROFIT SEGMENT PROFIT • Unfavorable price realization (in billions of dollars) (in millions of dollars) (as a percent of total sales*
Slide 11: Energy & Transportation
2Q 2025 EARNINGS RELEASE Energy & Transportation Second Quarter 2025 vs. Second Quarter 2024 2ND QUARTER HIGHLIGHTS Total Sales Increased $499M or 7% TOTAL SALES* SEGMENT PROFIT SEGMENT PROFIT • Higher sales volume (in billions of dollars) (in millions of dollars) (as a percent of total sales*) • Fa
Slide 12: Financial Products
2Q 2025 EARNINGS RELEASE Financial Products Second Quarter 2025 vs. Second Quarter 2024 2ND QUARTER HIGHLIGHTS Total Revenues Increased $38M or 4% TOTAL REVENUES* SEGMENT PROFIT • Higher average earning assets (in millions of dollars) (in millions of dollars) • Lower average financing rates Segment
Slide 13: ME&T Free Cash Flow and Capital Deployment
2Q 2025 EARNINGS RELEASE ME&T Free Cash Flow1 and Capital Deployment $2.4B $1.5B $5.4B ME&T FREE CASH FLOW 1 DEPLOYED TO ENTERPRISE 2Q 2025 SHAREHOLDERS IN 2Q 2025 CASH BALANCE Approximately $100M lower Share repurchases of about $800M Hold $1.2B in slightly than 2Q 2024 Announced 7% increase in qua
Slide 14: Expectations As We Look Ahead – Full Year 2025
2Q 2025 EARNINGS RELEASE Expectations As We Look Ahead – Full Year 2025 ● 2025 full-year sales and revenues slightly higher as compared to 2024, an improvement versus previous expectations of about flat ● 2025 full-year services revenues1 about flat as compared to 2024, slightly lower than our previ
Slide 15: Expectations As We Look Ahead – 3Q 2025
2Q 2025 EARNINGS RELEASE Expectations As We Look Ahead – 3Q 2025 ● 3Q 2025 sales and revenues grow moderately as compared to 3Q 2024 ● Net incremental tariffs1 about $400M to $500M in 3Q 2025 ● Excluding the net impact of incremental tariffs1, 3Q 2025 adjusted operating profit margin2 similar to 3Q
Slide 16: 2025 Key Takeaways
2Q 2025 EARNINGS RELEASE 2025 Key Takeaways Strong balance sheet and liquidity positions EXPECT1 2025 FULL-YEAR ADJUSTED EXPECT1 2025 FULL-YEAR ANTICIPATE OPERATING PROFIT MARGIN2 TO BE ME&T FREE CASH FLOW4 TO BE SLIGHTLY HIGHER WITHIN THE BOTTOM HALF AROUND THE MIDDLE OF 2025 FULL-YEAR SALES OF THE
Slide 17: Q&A
2Q 2025 EARNINGS RELEASE Q&A 17
Slide 18: Appendix
2Q 2025 EARNINGS RELEASE Appendix 18
Slide 19: 2025 Caterpillar Earnings Call Schedule
2Q 2025 EARNINGS RELEASE 2025 Caterpillar Earnings Call Schedule Earnings Quarter Release Date Call Time 3rd Quarter 2025 Wednesday, October 29, 2025 8:30 a.m. Eastern 19
Slide 20: Dealer Inventory Changes
2Q 2025 EARNINGS RELEASE Dealer Inventory1 Changes Increase/(Decrease) 2024 2025 YoY Full Impact to 1Q 2Q 3Q 4Q 1Q 2Q (USD in billions) Year2 2Q Sales3 Dealer Inventory1 of Machines $1.1 ($0.4) $0.1 ($1.6) ($0.7) $0.0 ($0.4) ($0.0) Total Dealer Inventory1 $1.4 ($0.2) $0.4 ($1.3) $0.4 $0.1 $0.1 $0.3
Slide 21: Order Backlog
2Q 2025 EARNINGS RELEASE Order Backlog Increased Increased Increased $2.5B $5.0B $8.9B 2Q 2025 1Q 2025 2Q 2025 vs. 1Q 2025 vs. 4Q 2024 vs. 2Q 2024 21
Slide 22: Additional Expectations As We Look Ahead – Full Year 2025
2Q 2025 EARNINGS RELEASE Additional Expectations As We Look Ahead – Full Year 2025 ● Machine dealer inventory1 about flat by the end of 2025 as compared to the end of 2024 ● Restructuring costs of approximately $300M to $350M in 2025 ● Capital expenditures of around $2.5B in 2025 ● Do not currently
Slide 23: Adjusted Operating Profit Margin Target Range
2Q 2025 EARNINGS RELEASE Adjusted Operating Profit Margin1 Target Range 25% Adjusted Operating Profit Margin %1 22.0% 20.0% 20% 18.0% 16.0% 18.0% • Progressive adjusted operating profit margin1 target range 15% 14.0% 16.0% 14.0% • Adjusted operating profit margin1 target range: 10% 10.0% 12.0% • 10-
Slide 24: Non-GAAP Financial Measures
2Q 2025 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 June 30, 2025 - U.S. GAAP $ 2,860 17.3% $ 2,818 $ 646 $ 2,179
Slide 25: Estimated Annual Tax Rate Reconciliation
2Q 2025 EARNINGS RELEASE Estimated Annual Tax Rate Reconciliation Provision Profit Before (Benefit) for Effective Tax (Dollars in millions) Taxes Income Taxes Rate Three Months Ended June 30, 2025 - U.S. GAAP $ 2,818 $ 646 23.0% Excess stock-based compensation - 1 Annual effective tax rate, excludin
Slide 26: Reconciliation to U.S. GAAP
2Q 2025 EARNINGS RELEASE Reconciliation to U.S. GAAP Reconciliation of ME&T Cash Flow from Operations to ME&T Free Cash Flow Jun YTD Jun YTD (USD in billions) 2Q 2024 2Q 2025 2024 2025 ME&T cash flow from operations $ 2.8 $ 2.9 $ 4.6 $ 3.9 ME&T capital expenditures (0.3) (0.6) (0.8) (1.3) ME&T free