Caterpillar Inc. has established new credit facilities totaling up to $11.5 billion, which includes a 364-Day Facility for $3.5 billion, a Three-Year Facility for $3.0 billion, and a Five-Year Facility for $5.0 billion. The 364-Day Facility expires on August 27, 2026, while the Three-Year and Five-Year Facilities extend to August 28, 2028, and August 28, 2030, respectively. These facilities are intended for general corporate purposes, and as of now, Caterpillar has not drawn on them.
The credit agreements include specific financial covenants that require Caterpillar to maintain a consolidated net worth of at least $9 billion. Additionally, Cat Financial must maintain an interest coverage ratio above 1.15 to 1, and a leverage ratio no greater than 10.0 to 1. The agreements also outline conditions for drawing funds and include provisions for customary fees related to banking and financial services provided by lenders and agents involved in the agreements.
linkSep 03, 2025 16:06:11
Caterpillar Inc. has updated its financial expectations due to the impact of new tariffs announced since its second quarter earnings report. The company estimates that the net impact from these tariffs will be between $500 million to $600 million for the third quarter of 2025 and approximately $1.5 billion to $1.8 billion for the full year. Despite these tariff impacts, the company does not anticipate changes to its sales and revenue outlook provided earlier in August 2025.
As a result of the revised tariff estimates, Caterpillar expects its full-year adjusted operating profit margin to be near the lower end of its target margin range. The company is taking initial steps to mitigate the financial effects of the tariffs, and further updates will be provided during its third-quarter earnings announcement scheduled for October 29, 2025.
linkAug 28, 2025 16:37:57
Caterpillar Inc. announced its financial results for the second quarter of 2025, reporting sales and revenues of $16.6 billion, a slight decrease from $16.7 billion in the same quarter of 2024. The decline was attributed to unfavorable price realization, which was partially offset by higher sales volume driven by increased equipment sales to end users. The operating profit margin dropped to 17.3% from 20.9% year-over-year, with profit per share decreasing to $4.62 from $5.48 in the previous year. The company ended the quarter with $5.4 billion in cash and generated $3.1 billion in operating cash flow.
In terms of segment performance, the Construction Industries segment saw a significant decline in sales, down 7% to $6.2 billion, while Resource Industries also experienced a 4% drop. Conversely, the Energy & Transportation segment reported a 7% increase in sales, reaching $7.8 billion, primarily due to higher sales volume and favorable pricing. The company allocated $0.8 billion for stock repurchases and $0.7 billion for dividends during the quarter. Despite challenges such as increased tariffs and unfavorable manufacturing costs, Caterpillar's financial products segment saw a slight revenue increase of 4% compared to the prior year.
linkAug 05, 2025 06:32:10
Caterpillar Inc. has announced a 10-cent increase in its quarterly dividend, raising it to $1.51 per share. This increase, which represents a seven percent rise, will be payable on August 20 to shareholders who are on record by the close of business on July 21. The company has a history of returning substantial free cash flow to shareholders through dividends and share repurchases, and it has paid cash dividends annually since its inception, maintaining a record of increasing annual dividends for 31 consecutive years.
Caterpillar reported sales and revenues of $64.8 billion in 2024 and is recognized as a leading manufacturer in construction and mining equipment, among other sectors. The company is a member of the S&P 500 Dividend Aristocrats Index, highlighting its commitment to returning value to shareholders. Caterpillar operates globally across various industries and segments, providing a range of products and services to support sustainable development.
linkJun 12, 2025 16:19:25
Caterpillar Inc. announced its first-quarter 2025 results, reporting sales and revenues of $14.2 billion, a decrease of 10% from $15.8 billion in the same quarter of 2024. The decline was attributed to lower sales volume and unfavorable price realization, with a notable impact from changes in dealer inventories. Profit per share was $4.20, down from $5.75 in the previous year, while adjusted profit per share was $4.25 compared to $5.60 in Q1 2024. The operating profit margin also fell to 18.1% from 22.3% year-over-year.
The company's enterprise operating cash flow was $1.3 billion, and it deployed $4.3 billion for share repurchases and dividends in the quarter. The construction industries segment saw a significant drop in sales, with a 19% decrease, while resource industries and energy & transportation segments also reported declines. Despite the overall downturn, the financial products segment experienced a slight revenue increase of 2%, although segment profit decreased by 27% compared to the prior year.
linkApr 30, 2025 06:31:43
Caterpillar Inc. has announced that D. James Umpleby III will transition from CEO to Executive Chairman, effective May 1, after nearly 45 years with the company. Under his leadership, the company achieved record full-year adjusted profit per share in 2024, which increased significantly during his tenure. Joseph E. Creed, who has been with Caterpillar for 28 years and held various leadership positions, will succeed Umpleby as CEO. The board expressed confidence in Creed's ability to lead the company into its next century.
While the leadership change marks a significant transition, the press release highlights the potential challenges ahead. Factors such as global economic conditions, commodity price fluctuations, and competitive pressures could impact Caterpillar's performance. The company also noted various risks related to international trade policies, inventory management, and compliance with financial regulations that may affect its operations moving forward.
linkApr 15, 2025 06:53:58
Caterpillar Inc. reported fourth-quarter sales and revenues of $16.2 billion, a 5% decline from $17.1 billion in the same quarter of 2023. Despite the decrease in sales volume, the company achieved a profit per share of $5.78, up from $5.28 in the previous year. The full-year sales also fell by 3% to $64.8 billion, with lower equipment sales to end users being a significant factor. However, the company ended the year with a strong enterprise operating cash flow of $12.0 billion and $6.9 billion in cash reserves, having returned $10.3 billion to shareholders through dividends and share repurchases in 2024.
On the negative side, Caterpillar experienced a decrease in operating profit margin, which fell from 18.4% in the fourth quarter of 2023 to 18.0% in the fourth quarter of 2024. The operating profit for the fourth quarter also dropped by 7% to $2.924 billion compared to $3.134 billion in the same quarter last year. Segment profits across various areas, including Construction and Resource Industries, saw significant declines, with Construction Industries reporting a 24% decrease in profit. Overall, the company faced challenges due to lower sales volumes and unfavorable price realizations across its segments.
linkJan 30, 2025 06:32:45
Caterpillar Inc. reported a decrease in sales and revenues for the third quarter of 2024, totaling $16.1 billion, a 4% decline from $16.8 billion in the same period last year. The drop was largely attributed to lower sales volumes in its Construction and Resource Industries segments, although there was a notable increase in the Energy & Transportation segment, which saw a 5% rise in sales. The company's profit per share also decreased to $5.06 from $5.45 in 2023, reflecting the challenges faced in the current market environment.
On a positive note, Caterpillar generated strong operating cash flow of $3.6 billion and returned $1.5 billion to shareholders through share repurchases and dividends. Despite the decrease in overall sales, the company maintained a solid adjusted operating profit margin of 20.0%. The Financial Products segment experienced growth, with revenues increasing by 6% to $1.034 billion. However, the overall decline in sales volume and profit across key segments raises concerns about future performance.
linkOct 30, 2024 06:33:36
Caterpillar Inc. has announced the appointment of Nazzic S. Keene, former CEO of Science Applications International Corporation, to its board of directors, effective November 1. This addition is seen as a positive move by Caterpillar, with CEO Jim Umpleby expressing confidence in Keene’s leadership experience in the information technology sector to drive growth and sustainability for the company. Keene is expected to contribute to the Nominating & Governance and Compensation & Human Resources committees, enhancing the board's expertise.
This development comes as Caterpillar continues to focus on its commitment to sustainability and long-term growth. With a strong sales record of $67.1 billion in 2023 and a legacy of nearly a century in manufacturing, the company aims to leverage Keene's extensive background to further its mission. The board believes that her insights will be valuable in navigating the challenges of the current market landscape and in maintaining Caterpillar's competitive edge.
linkOct 11, 2024 08:34:44
Caterpillar Inc. has successfully established a new revolving credit facility worth up to $3.15 billion, which will be available until August 2025. This facility replaces a previous one and includes provisions for borrowing in multiple currencies, demonstrating the company's efforts to enhance its financial flexibility. Additionally, amendments to existing credit agreements extend their terms, allowing Caterpillar to maintain access to capital for corporate needs.
While these developments indicate a positive step for Caterpillar's financial strategy, the company is required to adhere to strict financial covenants, including maintaining a consolidated net worth of at least $9 billion. This requirement, along with others related to interest coverage and leverage ratios, highlights the company's commitment to financial discipline. As of now, no funds have been drawn from these credit facilities, suggesting a cautious approach to utilizing available resources.
linkSep 04, 2024 06:07:48