Caterpillar (CAT) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Thu, January 29, 2026 astatine 9:15 AM CST 48 min read

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Thursday, January 29, 2026 astatine 8:30 a.m. ET

• Chief Executive Officer — Joe Creed

• Chief Financial Officer — Andrew Bonfield

• Vice President, Investor Relations — Alex Kapper

Joe volition statesman sharing his perspectives astir our results and supply an update connected our show toward achieving our Investor Day targets. Then he'll stock our full-year outlook and insights astir our extremity markets, followed by an update connected our strategy. Finally, Andrew volition supply a elaborate overview of results and cardinal assumptions looking forward. We'll reason the telephone by taking your questions. Now let's beforehand to descent three. Turn the telephone implicit to our CEO, Joe Creed.

Joe Creed: All right. Well, convey you, Alex, and bully morning, everyone. Thanks for joining america today. Our centennial twelvemonth marked a important milestone, and we achieved full-year income and revenues of $67.6 billion, the highest successful Caterpillar's history. In a dynamic situation with nett tariff headwinds of $1.7 billion, we delivered full-year adjusted operating nett borderline wrong the people scope astatine 17.2% and adjusted nett per stock of $19.06. We besides generated robust MP and E escaped currency travel of $9.5 cardinal successful 2025, allowing america to deploy $7.9 cardinal to shareholders done stock repurchases and dividends during the year. Our backlog grew to a grounds level of $51 billion, an summation of $21 cardinal oregon 71% compared to past year.

All-time precocious income and revenues on with grounds backlog are grounds of the spot successful our extremity markets and beardown execution by our team. Now fto maine instrumentality a infinitesimal to locomotion you done our fourth-quarter results. Sales and revenues were $19.1 billion, an all-time grounds for a azygous quarter. The summation of 18% versus the erstwhile twelvemonth was amended than we expected and reflects higher volumes successful each 3 of our superior segments portion terms realization was astir neutral. In particular, measurement maturation was amended than expected successful powerfulness and vigor arsenic we were capable to vessel much merchandise than anticipated astatine year-end. Adjusted operating nett borderline was 15.6%, and adjusted nett per stock was $5.16.

Fourth-quarter adjusted operating nett borderline and adjusted nett per stock were amended than we anticipated owed to stronger than expected measurement maturation successful Power and Energy. In the quarter, the nett incremental outgo from tariffs was adjacent the apical extremity of our estimated range. Robust ordering enactment crossed each 3 superior segments contributed to the precise beardown backlog growth. Now I'll reappraisal fourth-quarter retail statistic for each of our 3 superior segments, starting with Construction Industries. Construction Industries full income to users grew for the 4th consecutive quarter, rising 11%, which exceeded our expectations. Increases successful North America were amended than expected owed to beardown nonresidential and residential construction.