On August 5th, local time in the United States, Caterpillar released its second-quarter performance for 2025.
In the second quarter of 2025, Caterpillar's sales amounted to 16.6 billion US dollars, a decrease of 1% compared to 16.7 billion US dollars in the same period last year. The main reason for the sales decline was the price drop, although this was partially offset by an increase in sales volume.
The operating profit in the second quarter of 2025 was $2.86 billion, a year-on-year decrease of 18%. The main reason for the profit decline was the increase in manufacturing costs, which reflects the impact of higher tariffs.
In the first half of 2025, Caterpillar's sales were approximately 30.8 billion US dollars, a decrease of 5.19% compared to 32.488 billion US dollars in the same period of 2024; it achieved an operating profit of approximately 5.439 billion US dollars, a decrease of 22% compared to 7 billion US dollars in the same period of 2024.
The operating profit margin in the second quarter of 2025 was 17.3%, and the adjusted operating profit margin was 17.6%.
The earnings per share in the second quarter of 2025 were $4.62, and the adjusted earnings per share was $4.72.
Second quarter of 2025:
The sales of the construction machinery sector were $619.0 million, a decrease of 7% compared to $668.3 million in the same period last year; the profit was $124.4 million, a decrease of 29%.
The resources industry sector (including mining and quarrying equipment) had sales of $308.7 million, a decrease of 4%; the profit was $53.7 million, a decrease of 25%.
The energy and transportation sector had sales of $783.6 million, an increase of 7%; the profit was $158.5 million, an increase of 4%.
In the second quarter of 2025, the total sales of the construction machinery sector amounted to 6.190 billion US dollars, a decrease of 493 million US dollars. Caterpillar stated that the main reason for the reduction was the decline in prices. Due to changes in dealer inventories, sales volumes were also lower. In the second quarter of 2025, dealer inventories decreased, but they were basically the same as in 2024. By region:
The sales revenue in North America was 3.369 billion US dollars, a year-on-year decrease of 15%. This was mainly due to unfavorable price realization and a decline in sales volume, and the decline in sales volume was mainly caused by the impact of changes in dealer inventories. Compared with the second quarter of 2024, the dealer inventories in the second quarter of 2025 decreased.
The sales revenue in Latin America was 540 million US dollars, a year-on-year decrease of 20%. This was mainly due to a decline in sales volume and unfavorable currency effects related to the Brazilian real. The decline in sales volume was mainly caused by the impact of changes in dealer inventories. Compared with the increase in the second quarter of 2024, the dealer inventories in the second quarter of 2025 decreased.
The sales in the EAME region (Europe, the Middle East and Africa) amounted to 1.185 billion US dollars, representing a year-on-year growth of 13%. The increase in sales was due to the rise in sales volume and the favorable currency impact related to the euro, which was partially offset by unfavorable price realization. The increase in sales volume was mainly attributed to the impact of changes in dealer inventories. Compared with the decrease in the second quarter of 2024, the dealer inventories in the second quarter of 2025 increased. The sales in the Asia-Pacific region were 1.029 billion US dollars, representing a year-on-year growth of 6%.
The sales increase in the Asia-Pacific region due to the rise in sales volume, but this was partially offset by the decrease in prices. The increase in sales volume was mainly due to the impact of changes in dealer inventories. Compared with the decrease in the second quarter of 2024, the dealer inventories in the second quarter of 2025 increased.
In the second quarter of 2025, the profit of the construction machinery sector was 1.244 billion US dollars. Compared with 1.741 billion US dollars in the second quarter of 2024, it decreased by 497 million US dollars, or 29%. The main reason for the reduction was unfavorable pricing and higher tariffs.