Caterpillar

Caterpillar (CAT) Q4 2024 Earnings

Reported Jan 30, 2025 at 6:32 AM ET · SEC Source

Q4 24 EPS

$5.14

BEAT +2.25%

Est. $5.03

Q4 24 Revenue

$16.22B

MISS 1.93%

Est. $16.53B

vs S&P Since Q4 24

+156.7%

BEATING MARKET

CAT +179.2% vs S&P +22.5%

Full Year 2024 Results

FY 24 EPS

$21.90

FY 24 Revenue

$64.81B

Market Reaction

Did CAT Beat Earnings? Q4 2024 Results

Caterpillar posted a mixed fourth quarter, edging past earnings expectations while falling short on the top line as dealer destocking weighed heavily on equipment demand. The industrial giant reported adjusted EPS of $5.14 for Q4 2024, clearing the $… Read more Caterpillar posted a mixed fourth quarter, edging past earnings expectations while falling short on the top line as dealer destocking weighed heavily on equipment demand. The industrial giant reported adjusted EPS of $5.14 for Q4 2024, clearing the $5.03 consensus estimate by 2.25%, but revenue of $16.21 billion trailed the $16.53 billion expected and slid 5.0% from the prior-year period. The single biggest culprit was dealer inventory drawdowns, with dealers reducing inventories by $1.30 billion in the quarter compared to $900 million a year ago, a dynamic that shaved $859 million from sales volume alone. The weakness was concentrated in Construction Industries, where sales fell 8% to $6.00 billion and segment profit dropped 24% as favorable pricing that had buffered results in prior periods reversed course. Energy and Transportation offered a counterpoint, holding sales roughly flat at $7.65 billion while Power Generation surged on data center demand, a tailwind CEO Jim Umpleby has flagged as a durable growth driver even as the company braces for a sluggish start to 2025.

Key Takeaways

  • Lower sales volume of $859 million driven by dealer inventory destocking and lower equipment sales to end users
  • Dealer inventory decreased by $1.3 billion during Q4 2024 vs $900 million decrease in Q4 2023
  • Construction Industries experienced $300 million in unfavorable price realization
  • Energy & Transportation benefited from $221 million favorable price realization
  • Power Generation sales increased 22% driven by large reciprocating engines for data center applications
  • Discrete tax benefit of $224 million for tax law change related to currency translation lowered effective tax rate
  • Favorable foreign currency impacts drove higher other income
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CAT YoY Financials

Q4 2024 vs Q4 2023, source: SEC Filings

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CAT Revenue by Segment

With YoY comparisons, source: SEC Filings

Q3 24 Q1 26
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CAT Revenue by Geography

With YoY comparisons, source: SEC Filings

Q3 24 Q1 26

“I'm proud of our global team's strong performance in 2024 as they delivered record adjusted profit per share and strong ME&T free cash flow.”

— Jim Umpleby, Q4 2024 Earnings Press Release