Caterpillar Inc
Q3 2024 Earnings
Market Reaction
S&P 500 over the same 30 days: +4.07%.
Did CAT Beat Earnings? Q3 2024 Results
Caterpillar delivered a mixed third quarter, with earnings falling short of Wall Street expectations even as revenue edged past forecasts. The heavy equipment giant posted adjusted EPS of $5.17, missing the $5.34 consensus estimate by 3.18%, while revenue of $16.11 billion came in just ahead of the $16.08 billion consensus, though still down 4.2% from a year ago. The headline story was a broad-based pullback in equipment sales volume, with $759 million in lower volume weighing on results as dealer inventory builds moderated sharply from prior-year levels. Not all segments suffered equally, however; Energy and Transportation stood out with 5% growth to $7.19 billion, powered by a 26% surge in power generation sales tied to large reciprocating engines for data center applications, a demand tailwind increasingly shaping the industrial equipment landscape as peers in the power generation space report similar dynamics. Operating profit fell 9% to $3.15 billion, with margins contracting to 19.5%, as Construction Industries faced a rare negative pricing dynamic alongside weaker volumes across most geographies.
- Lower sales volume of $759 million was the primary driver of revenue decline, mainly from lower equipment sales to end users
- Favorable price realization of $104 million partially offset volume declines
- Energy & Transportation benefited from strong Power Generation sales, particularly large reciprocating engines for data center applications
- Construction Industries experienced unfavorable price realization of $147 million
- Dealer inventory increased less during Q3 2024 than Q3 2023, creating an unfavorable sales volume impact
- Unfavorable foreign currency impacts reduced other income significantly
“I'd like to thank our global team for delivering strong adjusted operating profit margin and adjusted profit per share while generating robust ME&T free cash flow.”
Caterpillar CEO, on the earnings call
CAT YoY Financials
CAT Revenue by Segment
CAT Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.