Rising Tariffs Undercut Caterpillar's Q2 Performance Even As Order Backlog Swells By $2.5 Billion

Caterpillar Inc. (NYSE:CAT) reported second-quarter 2025 revenue of $16.569 billion, down 1 percent from $16.689 billion a year earlier, beating the analyst consensus of $16.17 billion.

The adjusted earnings per share of $4.72 missed the $4.90 estimate. GAAP earnings per share were $4.62, compared with $5.48 in the prior-year period.

GAAP operating profit was $2.860 billion, representing a 17.3% margin, a decrease of $622 million, or 18% YoY, compared with $3.482 billion. This was primarily due to unfavorable manufacturing costs, which the company repeatedly said "largely reflected the impact of higher tariffs.". Adjusted operating profit was $2.916 billion, with a 17.6% margin, down from 22.4% a year ago.

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Enterprise operating cash flow was $3.1 billion for the quarter. Machinery, Energy & Transportation (ME&T) free cash flow was $1.5 billion. The company ended the quarter with $5.4 billion in enterprise cash. During the ...