Total Revenue

–10% (from $15.8B to $14.25B)

Lower sales volume across all segments—driven by reduced dealer inventory growth and less favorable price realization—eroded revenue relative to the stronger dealer mix in Q1 2024. " " " "

Construction Industries

–19% (from $6.424B to $5.184B)

Sales volume fell sharply due to weaker demand from end users and muted dealer inventory increases compared to Q1 2024, reflecting a significant drop in orders and reduced replenishment needs. " " "

Resource Industries

~–10% decline (to $2.884B)

Lower sales volume and unfavorable price realization—consistent with previous trends—resulted in reduced revenue, indicating ongoing challenges in demand compared to prior periods. " " "

Energy & Transportation<br>– Oil & Gas

–20% (from $1.568B to $1.258B)

Sales decline in Oil & Gas is attributed to customer capital discipline and reduced sales of reciprocating engines for both well servicing and gas compression, a reversal from previous offsetting gains in turbine-related services. " " "

Energy & Transportation<br>– Power Gen

+23% (from $1.618B to $1.996B)

Robust growth driven by increased demand for large reciprocating engines in data centers, improved price realization, and manufacturing efficiencies—exceeding the performance seen in the previous period. " " "

Financial Products

+1.6% (to $1.007B)

Modest revenue gains resulted from higher average earning assets and improved financing rates, offering incremental growth relative to more volatile segments in the previous period. " "

North America

–10% (from $8.573B to $7.738B)

Lower dealer inventory buildup and subdued end-user demand led to a marked drop in revenue in North America compared to Q1 2024, where higher dealer replenishment had supported stronger sales. " " " "

EAME

–12% (from $2.852B to $2.506B)

Declining sales volume driven by weaker end-user demand and reduced dealer inventory increases resulted in a 12% drop, a steeper fall than the previous period’s performance. " "

Asia/Pacific

–11.5% (from $2.815B to $2.490B)

Unfavorable currency impacts (notably the Japanese yen) combined with lower equipment sales drove revenue down, marking a significant shift from the more balanced sales seen in Q1 2024. " "

Operating Profit

–27% (from $3.519B to $2.579B)

Profits were squeezed by a substantial drop in sales volume and adverse pricing conditions compared to Q1 2024, resulting in lower margins despite some offset from past favorable cost factors. " "

Consolidated Profit

–30% (from $2.854B to $2.003B)

Overall profitability declined as reduced revenue and operating profit were compounded by lower margins and cost pressures, contrasting with the previous period’s stronger earnings performance. " "

Basic EPS

–27% (from $5.78 to $4.22)

EPS fell sharply due to the reduced net income resulting from lower operating profit and sales, reflecting the earnings impact across segments compared to the more robust figures in Q1 2024. " "

Net Cash Provided by Operating Activities

–37% (from $2.052B to $1.289B)

Operating cash flow was hit by lower earnings and potential increases in working capital requirements, a notable slowdown from the stronger cash generation seen in Q1 2024. " "

Total Assets

~–3–4% (from ~$87.8B to ~$85.0B)

Total assets contracted mainly because of a significant drop in cash and cash equivalents (a decline of about $3.3B), partially offset by a modest rise in inventories, marking a downturn from the higher liquidity position at the end of Q1 2024. " " " "

Shareholders’ Equity

–7% (from $19.494B to $18.070B)

Equity declined as lower consolidated profits and ongoing share repurchase activities (increasing treasury stock) eroded the balance, contrasting with the previous period’s higher profit base. " "

Inventories

+6% (from $16.827B to $17.862B)

Inventory levels rose likely due to a mismatch between production and slower sales volume, signaling an adjustment after last year’s stronger dealer inventory turnover. " "

Sales

Q2 2025

no prior guidance

Expected to be similar to the prior year. Sales growth in Energy & Transportation is anticipated to be offset by lower machine sales in Resource Industries and Construction Industries (primarily driven by unfavorable price), while volume is expected to be about flat. "

no prior guidance

Adjusted Operating Profit Margins

Q2 2025

no prior guidance

Lower enterprise adjusted operating profit margins are expected versus the prior year, primarily due to lower price realization. "

no prior guidance

Tariff Costs

Q2 2025

no prior guidance

Tariffs announced and implemented are estimated to be a cost headwind of about $250 million to $350 million. "

no prior guidance

Sales and Revenues

FY 2025

Expected to be slightly lower compared to 2024, with continued strength in Energy & Transportation mostly offsetting lower sales in Construction Industries and Resource Industries. "

In a pre‐tariff scenario, full year sales and revenues are expected to be about flat versus 2024—representing a slight improvement since the last quarter’s outlook; however, under negative economic growth later in the year, they could be down slightly versus 2024. "

raised

Adjusted Operating Profit Margins

FY 2025

Anticipated to be in the top half of the target range, although lower than 2024. "

Expected to be in the top half of the target margin range. "

raised

ME&T Free Cash Flow

FY 2025

Expected to be in the top half of the target range of $5 billion to $10 billion. "

Expected to be in the top half of the $5 billion to $10 billion target range. "

no change

Tariff Impact

FY 2025

no prior guidance

The potential impact of tariffs has increased uncertainty, and the situation remains fluid. The company is evaluating a broad range of longer‐term mitigation actions. "

no prior guidance

Order Backlog & Robust Orders

Consistently highlighted in Q2, Q3, and Q4 earnings for increases in backlog—with robust true customer orders, inventory adjustments, and record levels noted " " " " "

Q1 2025 reported record organic backlog growth to $35B driven by genuine demand across segments " " "

Consistent and improving; sentiment is very positive with growing backlog and confidence in sustainable order growth.

Demand & Sales Dynamics

Mentioned across Q2, Q3, and Q4 with mixed performance—lower overall sales volumes coupled with regional and segment variations, and offset by service revenue and strong orders in Energy & Transportation " " " "

Q1 2025 saw overall sales decline but with notable offsetting factors such as increased dealer shipments and strong Energy & Transportation performance " " "

Mixed but resilient; recurring challenges in volume remain though positive order/backlog trends ease concerns.

Pricing Challenges & Margin Pressures

Q2 showed some margin improvement while Q3 and Q4 emphasized unfavorable price realization and declining margins (with lower CI and RI performance and moderate offset in E&T) " " "

Q1 2025 reported pronounced margin pressure with unfavorable price realization in Construction and Resource Industries and added pressure from tariff headwinds " " "

Persistent headwinds; margins are under pressure due to competitive pricing and tariffs, causing continued caution.

Capacity Expansion & Production Constraints

Q2–Q4 consistently discussed multiyear capacity investments, especially for large engines and solar turbines, with production constraints primarily due to supply chain limitations " " "

Q1 2025 reaffirmed strong capacity expansion efforts—new investments for data center-related large engines and a proactive approach to overcome production constraints " "

Consistent focus with increased proactivity; the company remains optimistic and is bolstering capacity to meet growing demand.

Energy & Transportation Growth (Data Centers & Distributed Power)

Previous quarters (Q2–Q4) highlighted strong demand from data centers with new products (e.g. Titan 350) and opportunities in distributed power generation " " "

Q1 2025 confirmed accelerated growth with a 58% surge in power generation sales and active relationships with hyperscalers fueling demand " " "

Highly positive and accelerating; the segment is emerging as a key growth driver with very favorable outlook.

Mining Segment Opportunities

Across Q2–Q4, mining was portrayed with robust order rates, high equipment utilization, rebuild/replacement opportunities, and growing autonomous and electrification initiatives " " " "

Q1 2025 continued to underscore robust order rates, healthy rebuild activity, and high utilization in mining, supported by strong backlog growth "

Continuously strong; long‐term prospects remain favorable as fundamentals and technology advances drive opportunities.

Energy Transition & Alternative Fuels

Q2–Q4 featured substantial discussion on sustainability—including hybrid electrified machines, battery‐electric trucks, hydrogen capabilities, and related alternative fuels initiatives " " "

Q1 2025 did not mention this topic in the available commentary [Energy Transition not addressed in Q1 2025]

Not mentioned in Q1 2025; an area previously emphasized now appears less prominent, raising questions about its current prioritization.

Tariff Headwinds & Trade Uncertainties

Q4 2024 included discussion on monitoring tariffs and developing contingency strategies, while earlier Q2/Q3 had limited focus "

Q1 2025 provided detailed analysis with an estimated cost headwind ($250–$350M), scenario planning, and active mitigation efforts " " "

Re-emerging and receiving increased focus; sentiment remains cautious with comprehensive strategies to address trade uncertainties.

Competitive Pressure & Currency Impacts

Q3 and Q4 noted competitive pressures—managed through merchandising programs—and mixed currency impacts with occasional favorable translations " " "

Q1 2025 reported heightened competitive pressure accompanied by unfavorable currency impacts affecting various segments " "

Consistent challenge; while competitive pressures and currency headwinds recur, effective mitigation is critical, keeping sentiment cautious.

Regional Market Challenges (Europe & North America)

Q2–Q4 consistently discussed weak economic conditions in Europe and mixed performance in North America (with support from infrastructure initiatives) " " " "

Q1 2025 reiterated Europe’s weakness (lower CI sales due to economic headwinds) and showed mixed trends in North America supported by infrastructure spending " " "

Consistent across periods; Europe remains challenging while North America shows resilience, reflecting the need for regional-tailored strategies.

Technology Investments & Autonomous Solutions

Q2–Q4 featured robust investment in technology—with major initiatives like the Cat DET system, digital enhancements, and significant R&D spending driving autonomous and operational improvements " " " "

Q1 2025 briefly referenced growing customer acceptance of autonomous solutions in Resource Industries and capacity-related tech investments, with less detail than previous periods "

Steady long-term focus; although detailed discussion has tapered in Q1 2025, the commitment to technological innovation remains a key strategic priority.