Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

8568dc72f2617384a8ff154bf6d03761eac39172bf7ed771344f265e63fc177a

North America

Latin America

EAME

Asia/Pacific

Total Revenue

e8acb55853039d8fad814517561b98ffbefa325db4678f67291e91a3706c4ad7

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD]

EPS - Diluted [USD]

6b8e4de492fb96d2ad28f7c52541c091259cfd39e3719228a260c773704a3568

41ad25d1c05550f5fe6e71713b854146327224a069b5d6670f541a477d8e38fc

Construction Industries

Resource Industries

Energy & Transportation

- Oil and Gas

- Power Generation

- Industrial

- Transportation

Financial Products

All Other

Corporate Items and Eliminations

c7fe3ef394674ab297964a5592e1d4f1c3e74a1728d39eacf62c7480192a4aa3

Sales of Machinery, Energy & Transportation (USD, millions)

Revenues of Financial Products (USD, millions)

Total Sales and Revenues (USD, millions)

Cost of Goods Sold (USD, millions)

Selling, General and Administrative Expenses (USD, millions)

Research and Development Expenses (USD, millions)

Interest Expense of Financial Products (USD, millions)

Goodwill Impairment Charge (USD, millions)

Other Operating (Income) Expenses (USD, millions)

Total Operating Costs (USD, millions)

Operating Profit (USD, millions)

Interest Expense Excluding Financial Products (USD, millions)

Other Income (Expense) (USD, millions)

Consolidated Profit Before Taxes (USD, millions)

Provision (Benefit) for Income Taxes (USD, millions)

Profit of Consolidated Companies (USD, millions)

Equity in Profit (Loss) of Unconsolidated Affiliated Companies (USD, millions)

Profit of Consolidated and Affiliated Companies (USD, millions)

Less: Profit (Loss) Attributable to Noncontrolling Interests (USD, millions)

Profit (USD, millions)

Profit per Common Share - Basic (USD)

Profit per Common Share - Diluted (USD)

Weighted-average Common Shares Outstanding - Basic (millions)

Weighted-average Common Shares Outstanding - Diluted (millions)

1f2d249de3529aa2e7548a911d7aa249c17eba886472b956f6405db65e4be1bf

cd2e8de8f72502e8011b90b49dfc2d5c3effb85f6ef2900aae5ac1d3dfc1e81d

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The documents present conflicting information. One source reports **FY 2023 sales** at **$28,001 million** and **FY 2024 sales** at **$61,363 million**, suggesting a nearly twofold increase.  **[0000018230-24-000009_cat-20231231.htm:155]** **[0000018230-25-000008_cat-20241231.htm:94]**  However, another source states that **FY 2024 sales** of **$61,363 million** decreased from **$63,869 million** in FY 2023, noting a decline driven by a **$3,543 million** drop in sales volume that was partially offset by a **$1,238 million** favorable price realization and adverse currency impacts.  **[0000018230-25-000008_cat-20241231.htm:81]** **[0000018230-25-000008_cat-20241231.htm:50]** **[0000018230-25-000008_cat-20241231.htm:49]**  Given these discrepancies, the documents do not provide a definitive explanation for a nearly twofold increase.

What drove the nearly twofold increase in Machinery, Energy & Transportation sales in FY 2024?

The significant jump in **EPS** in Q1 2024 was driven by multiple factors. Firstly, the **absence of a $586 million loss** related to the divestiture of the Longwall business—an expense that negatively impacted Q1 2023—played a major role.  **[20240425CG96981:3]** **[0000018230-24-000020_cat-20240331.htm:48]**  Additionally, **favorable price realization of $575 million** helped offset lower sales volume.  **[20240425CG96981:3]** **[0000018230-24-000020_cat-20240331.htm:48]**  Improvements in **operating profit margin** (rising to **22.3%** from **17.2%**) indicate better cost management and effective pricing strategies.  **[20240425CG96981:0]** **[0000018230-24-000020_cat-20240331.htm:48]**  The effect of a **lower share count** due to share repurchases, which resulted in about **$0.24 per share** improvement, also contributed.  **[CAT_3380741_5]**  Furthermore, higher **other income** by **$124 million** and a **discrete tax benefit of $38 million** associated with stock-based compensation bolstered EPS gains.  **[CAT_3380741_5]** **[0000018230-24-000020_cat-20240331.htm:48]** 

Why did EPS jump significantly in Q1 2024?

Caterpillar’s strong operating profit performance in Q1 2024 was mainly driven by several factors. The **$586 million charge** related to the Longwall business divestiture from Q1 2023 did not recur in 2024, which provided a substantial boost.  **[20240425CG96981:3]** **[0000018230-24-000020_cat-20240331.htm:48]** **[0000018230-24-000016_ex991toformcat1q2024earnin.htm:3]**  In addition, **$575 million** of favorable price realization positively impacted profitability, and the operating profit margin improved from **17.2%** to **22.3%**, reflecting better cost management and more effective pricing strategies.  **[20240425CG96981:3]** **[0000018230-24-000020_cat-20240331.htm:48]** **[0000018230-24-000016_ex991toformcat1q2024earnin.htm:3]** **[20240425CG96981:0]** **[0000018230-24-000016_ex991toformcat1q2024earnin.htm:0]**  These positive trends more than offset the **$268 million** negative impact from lower sales volume.  **[20240425CG96981:3]** **[0000018230-24-000020_cat-20240331.htm:48]** **[0000018230-24-000016_ex991toformcat1q2024earnin.htm:3]** 

What contributed to the substantial boost in operating profit in Q1 2024?

Caterpillar's operating profit declined in Q3 2024 primarily because **lower sales volume** negatively impacted profitability by **$372 million**, which outweighed the **$104 million** positive contribution from favorable price realization. This resulted in an overall decrease of **$302 million (9%)** from **$3,449 million** in Q3 2023 to **$3,147 million** in Q3 2024, and the operating profit margin also fell from **20.5%** to **19.5%**.  **[20241030CG43081:3]** **[0000018230-24-000050_ex991toformcat3q2024earnin.htm:3]** **[0000018230-24-000053_cat-20240930.htm:53]** **[0000018230-24-000053_cat-20240930.htm:53]** **[0000018230-24-000050_ex991toformcat3q2024earnin.htm:0]** 

Why did operating profit decline in Q3 2024?

b558c90bda1784fe2084ec1ab71416b4f0255a4f330921a76b144e5ae5c84d27

The sharp drop in **Cash and cash equivalents in Q2 2024** was primarily due to **substantial cash outflows for share repurchases, dividend payments, and debt repayments**. Although there was a strong cash inflow from operating activities, it was not sufficient to offset these significant outflows, resulting in a net decrease of **$2,637 million** between Q4 2023 and Q2 2024.  **[0000018230-24-000042_ex991toformcat2q2024earnin.htm:13]** **[0000018230-24-000045_cat-20240630.htm:3]** 

Why did Cash and cash equivalents drop so sharply in Q2 2024?

The documents indicate that the **long-term debt due within one year** for **Machinery, Energy & Transportation** fell drastically from **$1,044 million** in Q4 2023 to **$45 million** in Q2 2024, but they do not provide any specific reasons for this reduction.  **[20240806CG76558:13]** 

What led to the drastic reduction in short-term Machinery, Energy & Transportation debt in Q2 2024?

The **long-term debt due after one year for Financial Products increased by $2,894 million** from **$15,893 million in Q4 2023 to $18,787 million in Q4 2024** due to several factors. These include the **issuance of medium-term notes** during 2024, the **reclassification of debt maturities** (with medium-term notes maturing in early 2025 being moved to longer-term maturities in 2027 and 2030), and **higher borrowing needs** to support increased finance receivables, all of which contributed to the rise in the debt balance.  **[0000018230-25-000008_cat-20241231.htm:138]** **[0000018230-25-000008_cat-20241231.htm:145]** 

Why did Long-term debt due after one year: Financial Products increase in Q4 2024?

The surge in common stock during Q4 2024 appears to be driven by factors such as **stock-based compensation**—which involves the issuance of shares related to employee compensation—as well as **share repurchases and subsequent reissuance**. However, the documents do not provide a definitive explanation for the increase, leaving these as potential reasons rather than confirmed causes.  **[0000018230-25-000008_cat-20241231.htm:95]** 

What caused the surge in Common stock in Q4 2024?

9b4c9a202a6c239b5dd1e8bc6547f05d028ed77873b31deedcddaf2dd75b7651

Operating cash flow was lower in Q3 2024 primarily because **profit before taxes**, when adjusted for non‐cash items, decreased, and there were **changes in accrued wages, salaries, and employee benefits** combined with **higher cash taxes paid**. These factors outweighed the offset from lower working capital requirements and favorable changes in inventory, receivables, and accounts payable.  **[0000018230-24-000053_cat-20240930.htm:73]** **[0000018230-24-000053_cat-20240930.htm:71]** 

Why was Operating Cash Flow lower in Q3 2024?

The drop in operating cash flow in Q4 2024 was primarily driven by changes in working capital components. Specifically, **accrued wages, salaries, and employee benefits** shifted from an increase of **$486 million** in Q4 2023 to a decrease of **$363 million** in Q4 2024. Additionally, **accounts payable** declined by **$282 million** in Q4 2024 compared to a larger decrease of **$754 million** in Q4 2023, while the deterioration in **receivables — trade and other** went from a decrease of **$437 million** in 2023 to just **$160 million** in 2024. Although a **decrease in inventories** of **$414 million** marginally improved cash flow and an **increase in customer advances** of **$370 million** had a favorable impact, these benefits were not enough to offset the effects of the other factors.  **[0000018230-25-000004_cat_exx991x4qx2024xearning.htm:16]** **[0000018230-25-000008_cat-20241231.htm:97]** 

What factors contributed to the drop in Operating Cash Flow in Q4 2024?

The documents do not provide a specific explanation for the spike in **Capital Expenditures in Q4 2024**. They only note that the annual capital expenditures increased from **$1,597 million in 2023** to **$1,988 million in 2024**, but no further details are offered for the quarterly change in Q4 2024.  **[0000018230-25-000004_cat_exx991x4qx2024xearning.htm:16]** 

What caused the spike in Capital Expenditures in Q4 2024?

The capital expenditures increased by **$391 million**, from **$1,597 million in FY 2023** to **$1,988 million in FY 2024**. However, the documents do not provide an explicit explanation for this change. They suggest that it could be linked to increased investments in property, plant, and equipment, expansion initiatives, or other strategic capital allocation decisions, but these reasons remain speculative per the documents.  **[0000018230-25-000004_cat_exx991x4qx2024xearning.htm:16]** **[0000018230-25-000008_cat-20241231.htm:86]** **[0000018230-25-000008_cat-20241231.htm:97]** 

Why did Capital Expenditures increase in FY 2024 compared to FY 2023?

b15884619306c0e2bc1db6eaf007f785c9c0365808e4ed523e17380455a10366

Caterpillar Inc (CAT)

Financials