Total Revenue

10% decline (from $15,799M to $14,249M)

Lower sales volume driven by weaker dealer inventory dynamics, partially offset by less favorable price realization, contributed to the revenue decline compared to Q1 2024. " "

Construction Industries Revenue

19% decline (from $6,424M to $5,184M)

A steep drop in sales volume—mainly from lower equipment orders and significant dealer inventory reductions—led to the dramatic decline in Construction Industries revenue, reflecting the continuation of adverse trends from the previous year. " " "

Operating Profit

27% decline (from $3,519M to $2,579M)

The drop is largely due to lower sales revenue and margin pressure caused by unfavorable price realization and reduced sales volume, which hurt operating leverage compared to Q1 2024. " "

Net Profit

30% decline (from $2,854M to $2,003M)

The net profit decline results from the lower operating profit compounded by factors such as increased effective tax rates and other unfavorable expense elements, following the sales and margin pressures observed in the prior period. " "

North America Revenue

10% decline (from $8,573M to $7,738M)

Declines in North America are driven by decreased sales volume arising from weaker dealer inventory performance and pricing challenges, marking a continuation of trends observed in earlier periods. " "

EAME Revenue

12% decline (from $2,852M to $2,506M)

Lower sales volume from reduced equipment sales and adverse impact from unfavorable currency fluctuations (especially the euro) led to the decline in the EAME region compared to Q1 2024. " "

Asia/Pacific Revenue

11.6% decline (from $2,815M to $2,490M)

The drop in Asia/Pacific revenue is due to reduced equipment sales, further compounded by unfavorable foreign currency impacts (yen and related currencies), following a similar pattern seen in the prior period. " "

Latin America Revenue

3% decline (from $1,559M to $1,515M)

Although dealer inventory improvements aided sales volume, the positive effects were largely offset by unfavorable currency impacts, resulting in only a modest decline compared to Q1 2024. " "

Cash Flow from Operations

37% decline (from $2,052M to $1,289M)

Higher cash taxes paid and adverse changes in working capital items—including more pronounced inventory outflows—led to a substantial reduction in operating cash flow when compared to the previous period. " "

Basic EPS

27% decline (from $5.78 to $4.22)

The decline in basic earnings per share reflects the combined pressure of lower sales volume and unfavorable price realization, which compressed operating margins and negatively impacted per-share profitability relative to Q1 2024. " "

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.