Core Insights - The CEO of Caterpillar stated that the situation is still evolving and the company will continue to monitor it closely [1] Group 1 - Caterpillar is actively observing changes in the market environment [1]

分组1 - Caterpillar reported quarterly earnings of $4.25 per share, missing the Zacks Consensus Estimate of $4.30 per share, and down from $5.60 per share a year ago, representing an earnings surprise of -1.16% [1] - The company posted revenues of $14.25 billion for the quarter, missing the Zacks Consensus Estimate by 2.01%, and down from $15.8 billion year-over-year [2] - Caterpillar shares have declined approximately 15.3% since the beginning of the year, compared to a decline of -5.5% for the S&P 500 [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $5.03 on revenues of $15.62 billion, and for the current fiscal year, it is $18.94 on revenues of $61.48 billion [7] - The Manufacturing - Construction and Mining industry is currently in the top 6% of over 250 Zacks industries, indicating a strong outlook for the sector [8] - The estimate revisions trend for Caterpillar is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6]

Financial Data and Key Metrics Changes - For Q1 2025, sales and revenues decreased by 10% year-over-year to $14.2 billion, primarily due to lower sales volume and unfavorable price realization [10][30] - Adjusted operating profit was $2.6 billion with an adjusted operating profit margin of 18.3%, slightly better than expectations [11][30] - Adjusted profit per share was $4.25, down from $5.60 in the previous year [31] Business Line Data and Key Metrics Changes - Construction Industries sales decreased by 19% to $5.2 billion, with a profit of $1 billion, a 42% decrease year-over-year [34][36] - Resource Industries sales decreased by 10% to $2.9 billion, with a profit of $599 million, an 18% decrease [38] - Energy and Transportation sales decreased by 2% to $6.6 billion, with a profit of $1.3 billion, a slight increase of 1% [40] Market Data and Key Metrics Changes - In North America, sales to users were slightly higher than the prior year, driven by residential construction [12] - Sales to users in Latin America continued to grow at a higher rate than anticipated [13] - Sales to users in Asia Pacific declined in line with expectations, while sales in Africa and the Middle East showed better-than-expected performance [12][13] Company Strategy and Development Direction - The company is focused on long-term profitable growth through disciplined execution of its strategy and leveraging its diverse end markets [8] - Strong order rates led to a record backlog growth of $5 billion, indicating robust demand across segments [8][15] - The company is evaluating a range of longer-term mitigation actions in response to tariff impacts, emphasizing the need for clarity in the tariff environment [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the full year, expecting sales and revenues to be flat in a pre-tariff scenario [22][45] - The potential impact of tariffs is estimated to be a cost headwind of $250 million to $350 million for Q2 2025 [19][51] - The company remains confident in its ability to navigate the evolving economic conditions and maintain strong performance [20][55] Other Important Information - The company deployed $4.3 billion to shareholders through share repurchases and dividends in Q1 2025 [16][44] - The company maintains a strong balance sheet with ample liquidity, including $3.6 billion in cash [44] Q&A Session Summary Question: Cost headwind of $250 million to $350 million in Q2 - Management is evaluating short-term cost reductions and overhead cuts, while also considering longer-term mitigation actions [57][58] Question: Construction industry dynamics and dealer inventory - Management noted that better-than-expected sales to users have resulted in minimal dealer inventory build, indicating positive customer sentiment [68][70] Question: Tariff impact and pricing strategy - Management clarified that not all tariffs will impact the full quarter and that they are exploring mitigation strategies [74][76] Question: Pricing within Construction and Resource Industries - Management indicated that pricing decisions will depend on market conditions and competitive positioning, with no immediate price increases assumed [80][82] Question: Backlog pricing protection - Management confirmed that there is flexibility in pricing for the backlog, and they have not seen evidence of widespread pre-buying [90][91]

Caterpillar (CAT) Q1 2025 Earnings Call April 30, 2025 08:30 AM ET Company Participants Alex Kapper - Vice President of Investor RelationsJames Umpleby - Chairman and Chief Executive OfficerJoseph Creed - Chief Operating OfficerAndrew Bonfield - CFOMichael Feniger - Director of Equity ResearchRob Wertheimer - Director of ResearchTami Zakaria - Executive DirectorDavid Raso - Senior Managing Director & PartnerJamie Cook - Managing Director - Equity ResearchAngel Castillo - Executive DirectorKristen Owen - Man ...

First Quarter 2025 Financial Review April 30, 2025 1Q 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," "will," "would," "expect," "anticipate," "plan," "forecast," "target," "guide," "project," "intend," "could," "should" or other similar words or expressions often id ...

Exhibit 99.1 Caterpillar Inc. 1Q 2025 Earnings Release FOR IMMEDIATE RELEASE | Caterpillar | Reports | First-Quarter | 2025 Results | | --- | --- | --- | --- | | | First Quarter | | | | ($ in billions except profit per share) | 2025 | 2024 | | | Sales and Revenues | $14.2 | $15.8 | ● First-quarter 2025 profit per share of $4.20; adjusted profit per share of $4.25 | | | | | ● Enterprise operating cash flow was $1.3 | | Profit Per Share | $4.20 | $5.75 | billion in the first quarter of 2025 | | Adjusted Profi ...

First-quarter 2025 profit per share of $4.20; adjusted profit per share of $4.25 Enterprise operating cash flow was $1.3 billion in the first quarter of 2025 Deployed $4.3 billion of cash for share repurchases and dividends in the first quarter First Quarter ($ in billions except profit per share) 2025 2024 Sales and Revenues $14.2 $15.8 Profit Per Share $4.20 $5.75 Adjusted Profit Per Share $4.25 $5.60 Please see a reconciliation of GAAP to non-GAAP financial measu ...

Industry Overview - The Zacks Manufacturing - Construction and Mining industry is positioned to benefit from increased infrastructure investment in the U.S. and strong demand from the mining sector driven by the energy transition trend [1][5] - The industry includes companies that manufacture and sell construction, mining, and utility equipment, supporting various sectors such as oil and gas, power generation, and industrial applications [3] Current Trends - The U.S. manufacturing sector showed resilience in early 2025, with a manufacturing index reading of 50.9% in January and 50.3% in February, indicating expansion, although it dipped to 49% in March due to tariff concerns [4] - Industrial production increased at an annual rate of 5.5% in Q1 2025, despite a 0.3% decline in March [4] - The energy transition trend is expected to drive demand for mining equipment as the shift from fossil fuels to zero emissions requires more commodities [5] Financial Performance - The Manufacturing - Construction and Mining industry has underperformed compared to the Zacks S&P 500 composite, declining 12.8% over the past year, while the S&P 500 rose 8.2% [10] - The industry is currently trading at a forward 12-month EV/EBITDA ratio of 10.11, lower than the S&P 500's 12.88 and the Industrial Products sector's 19.30 [11] Company Highlights - **Komatsu**: Reported a 6.2% increase in fiscal 2024 consolidated net sales, driven by higher demand for mining equipment, and targets business growth above industry levels with a return on equity (ROE) target of over 10% [18][19] - **Hitachi Construction Machinery**: Achieved a fiscal 2025 revenue target of 300 billion JPY from the Americas, focusing on value-chain businesses and digital technologies [22][23] - **Caterpillar**: Holds a substantial backlog of $30 billion, with long-term demand supported by increased infrastructure spending and a shift toward clean energy, despite a 19.6% decline in shares over the past six months [26][27]

Core Viewpoint - Caterpillar Inc. is expected to report year-over-year declines in both earnings and revenues for the first quarter of 2025, with earnings estimated at $4.30 per share, reflecting a 23% decline from the previous year, and revenues projected at $14.54 billion, indicating an 8% decrease [1]. Financial Estimates - The Zacks Consensus Estimate for Q1 2025 earnings has decreased by 0.46% over the past 60 days [2]. - The current earnings estimate for Q1 is $4.30, down from $4.33 30 days ago, and the revenue estimate is $14.54 billion [2]. - The operating income is projected to decrease by 25% year-over-year to $2.55 billion, with an operating margin of 18.8%, down from 22.8% in Q4 2024 [10]. Segment Performance - The Resource Industries segment is expected to report external sales of $2.72 billion, a 12% decline year-over-year, with an operating profit of $621 million, down 15% [11]. - The Construction segment's external sales are projected at $5.38 billion, reflecting a 16% decline, with an operating profit of $1.39 billion, indicating a 21% decrease [12]. - The Energy and Transportation segment is expected to see external sales of $5.5 billion, a slight increase of 0.5%, with an operating profit of $1.3 billion, down 0.3% year-over-year [14][15]. Market Conditions - The manufacturing sector showed initial signs of recovery in early 2025 but lost momentum, as indicated by the Institute for Supply Management's manufacturing index, which fell to 49% in March [6]. - The New Orders Index declined sharply from 55.1% in January to 45.2% in March, reflecting reduced customer orders due to rising tariff concerns [7]. Price Performance and Valuation - Caterpillar's stock has decreased by 12.4% over the past year, underperforming its industry and the broader market [16]. - The stock is currently trading at a forward P/E of 15.64, which is higher than the industry average of 14.79 [20]. - Compared to peers like Komatsu, Terex, and Manitowoc, Caterpillar's valuation is relatively high, with competitors trading at lower P/E ratios [21]. Strategic Outlook - Long-term demand prospects for Caterpillar are supported by increased infrastructure spending and a shift toward clean energy [25]. - The company has a strong balance sheet, allowing for investments in growth, share repurchases, and dividends [25]. - The upcoming leadership change with COO Joseph Creed succeeding James Umpleby as CEO will be closely monitored for its impact on navigating current challenges [25].

Join iREIT on Alpha today to get the most in-depth research that includes REITs, mREITs, Preferreds, BDCs, MLPs, ETFs, and other income alternatives. 438 testimonials and most are 5 stars. Nothing to lose with our FREE 2-week trial .Volatility comes with the benefits of being an equity investor, the same way rain is necessary for a lush garden to grow, or a challenging workout isAnalyst’s Disclosure: I/we have a beneficial long position in the shares of CAT either through stock ownership, options, or other ...