Cat falls 5 percent in Q4, 3 percent for the year

On Jan. 30, Caterpillar announced its Q4 and full-year results for 2024, noting sales and revenues for the fourth quarter of 2024 were $16.2 billion, a 5% decrease compared with $17.1 billion in the fourth quarter of 2023. Operating profit margin was 18.0% for the fourth quarter of 2024, compared with 18.4% for the fourth quarter of 2023. 

Construction Industries’ total sales were $6.003 billion in the fourth quarter of 2024, a decrease of $516 million, or 8%, compared with $6.519 billion in the fourth quarter of 2023. The decrease was primarily due to unfavorable price realization of $300 million and lower sales volume of $227 million. The decrease in sales volume was mainly driven by lower sales of equipment to end users and by the impact from changes in dealer inventories. Dealer inventory decreased more during the fourth quarter of 2024 than during the fourth quarter of 2023.

In North America, Cat’s construction revenues were off 14% for the quarter, totaling just more than half of all construction-segment sales. 

Year over year

Full-year sales and revenues in 2024 were $64.8 billion, down 3% compared with $67.1 billion in 2023. The decrease reflected lower sales volume of $3.5 billion, partially offset by favorable price realization of $1.2 billion. Lower sales volume was primarily driven by lower sales of equipment to end users. Operating profit margin was 20.2% in 2024, compared with 19.3% in 2023. 

“I’m proud of our global team’s strong performance in 2024 as they delivered record adjusted profit per share and strong ME&T free cash flow,” said Caterpillar Chairman and CEO Jim Umpleby. “As we kick off our centennial year, we remain committed to serving our customers, executing our strategy and continuing to invest for long-term profitable growth.”

Caterpillar anticipates a slight decrease in sales and revenues for 2025, with lower sales expected in Construction Industries and Resource Industries. Price realization is expected to be unfavorable in 2025, contributing to a decrease in sales.

The company faces challenges with delivery delays in Energy & Transportation and slower-than-expected services growth.

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