Q1 25 EPS
$4.25
MISS 2.31%
Est. $4.35
Q1 25 Revenue
$14.25B
MISS 2.28%
Est. $14.58B
vs S&P Since Q1 25
+161.5%
BEATING MARKET
CAT +191.4% vs S&P +30.0%
Market Reaction
Did CAT Beat Earnings? Q1 2025 Results
Caterpillar delivered a disappointing first quarter of 2025, missing on both the top and bottom lines as softer demand and a sharp pullback in dealer inventory restocking weighed heavily on results. The heavy-equipment maker posted adjusted earnings … Read more Caterpillar delivered a disappointing first quarter of 2025, missing on both the top and bottom lines as softer demand and a sharp pullback in dealer inventory restocking weighed heavily on results. The heavy-equipment maker posted adjusted earnings per share of $4.25, falling 2.31% short of the $4.35 consensus estimate, while revenue slid 9.8% year-over-year to $14.25 billion, coming in 2.28% below expectations. The primary culprit was a dramatic shift in dealer inventory behavior: dealers added just $100 million in stock during the quarter versus $1.40 billion in the same period a year ago, creating a substantial volume headwind that rippled across all three business segments. Construction Industries bore the brunt, with sales tumbling 19% to $5.18 billion and segment margins compressing sharply from 27.5% to 19.8%. The one bright spot was Energy and Transportation, where a 23% surge in Power Generation sales, fueled by data center demand, helped the segment limit its overall revenue decline to just 2%. Looking ahead, the company flagged a potential tariff impact of $250 million to $350 million on second-quarter sales, adding further uncertainty to an already cautious outlook.
Key Takeaways
- • Lower sales volume of $1.1 billion primarily driven by changes in dealer inventories
- • Unfavorable price realization of $250 million across segments
- • Dealer inventory increased $100 million in Q1 2025 vs. $1.4 billion increase in Q1 2024
- • Power Generation sales surged 23% driven by large reciprocating engines for data center applications
- • Energy & Transportation segment profit grew 1% due to favorable price realization of $155 million
- • Construction Industries segment profit margin declined 7.7 percentage points to 19.8%
- • Higher effective tax rate of 22.3% vs 19.5% in prior year quarter
CAT YoY Financials
Q1 2025 vs Q1 2024, source: SEC Filings
CAT Revenue by Segment
With YoY comparisons, source: SEC Filings
CAT Revenue by Geography
With YoY comparisons, source: SEC Filings
“I'm proud of our global team's continued support of our customers and for delivering another quarter of solid results. Our strong balance sheet allowed us to deploy over $4 billion to shareholders through share repurchases and dividends during the quarter.”
— Jim Umpleby, Q1 2025 Earnings Press Release
CAT Earnings Trends
CAT vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
CAT EPS Trend
Earnings per share: estimate vs actual
CAT Revenue Trend
Quarterly revenue: estimate vs actual
CAT Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 | — | $5.54 | — | $17.42B | — |
| Q4 25 BEAT FY | $4.71 | $5.16 | +9.55% | $19.13B | +7.41% |
| FY Full Year | $18.70 | $19.06 | +1.92% | $67.59B | +1.99% |
| Q3 25 BEAT | $4.52 | $4.95 | +9.43% | $17.64B | +5.15% |
| Q2 25 MISS | $4.90 | $4.72 | -3.73% | $16.57B | +1.88% |
| Q1 25 MISS | $4.35 | $4.25 | -2.31% | $14.25B | -2.28% |