Caterpillar Inc. (NYSE:CAT) capped its centennial year with record quarterly and full-year revenue on Thursday, as higher equipment sales drove an 18% increase in fourth-quarter sales and pushed annual revenue to a company high.
For the fourth quarter of 2025, sales and revenues were $19.133 billion, up 18% from $16.215 billion in the prior-year period. Adjusted profit per share was $5.16, beating a $4.66 estimate, while revenue exceeded a $17.851 billion estimate.
Fourth-quarter profit per diluted share (GAAP) was $5.12, compared with $5.78 a year earlier. Operating profit was $2.660 billion, down 9%, and operating profit margin was 13.9% versus 18.0% in the fourth quarter of 2024.
Adjusted operating profit margin was 15.6%, compared with 18.3%. The company said unfavorable manufacturing costs “largely reflected the impact of higher tariffs,” and cited higher restructuring costs, including inventory write-downs in the Rail division.
In the fourth quarter, Construction Industries sales rose 15% to $6.926 billion, while segment profit was $1.030 billion and profit margin was 14.9%. Resource Industries’ sales increased 13% to $3.353 billion, with segment profit of $360 million and a 10.7% margin.
Power & Energy sales climbed 23% to $9.400 billion, with segment profit of $1.841 billion and a margin of 19.6%. Financial Products segment revenues rose 7% to $1.095 billion, and segment profit increased to $262 million.
Caterpillar’s fourth-quarter results got a lift from surging sales of power-generation equipment to AI data centers, helping the company post earnings that beat Wall Street expectations, Bloomberg reported.
Full-Year Results
For the full year 2025, Caterpillar reported sales and revenues of $67.6 billion, up 4% from $64.8 billion in 2024. Profit per diluted share was $18.81, compared with $22.05 a year earlier, while adjusted profit per share was $19.06, down from $21.90.
For the full year, enterprise operating cash flow was $11.7 billion, and Caterpillar ended 2025 with $10.0 billion of enterprise cash.
Cash and cash equivalents were $9.980 billion at Dec. 31, 2025. The company said it deployed $5.2 billion for share repurchases and $2.7 billion for dividends during the year.
Caterpillar CEO Joe Creed said, “With a record backlog, we enter the new year with strong momentum and a continued focus on delivering long-term value for our customers and shareholders.”
CAT Price Action: Caterpillar shares were up 1.36% at $652.00 during premarket trading on Thursday. The stock is trading near its 52-week high of $655.78, according to Benzinga Pro data.
Photo by astudio via Shutterstock
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