Caterpillar Inc
Q4 2024 Earnings
Market Reaction
S&P 500 over the same 30 days: −4.66%.
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 $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.
- 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
“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.”
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.