Caterpillar (CAT) Q2 2024 earnings summary

Executive summary

• Q2 2024 sales and revenues were $16.7 billion, down 4% year-over-year, mainly due to lower sales volume from dealer inventory changes, partially offset by favorable price realization.

• Achieved record adjusted profit per share of $5.99 and adjusted operating profit margin of 22.4%, with robust ME&T free cash flow generation.

• Strong capital returns to shareholders through $1.8 billion in share repurchases and $600 million in dividends in Q2.

• Continued execution of long-term growth and sustainability initiatives, including battery electric and hydrogen-capable solutions.

• Backlog increased to $28.6 billion, up $700 million sequentially, driven by Energy & Transportation.

Financial highlights

• Q2 2024 sales and revenues were $16.7 billion, down 4% year-over-year; adjusted operating profit was $3.7 billion, with margin at 22.4%.

• Adjusted profit per share reached $5.99, up 8% from $5.55 in Q2 2023.

• ME&T free cash flow was $2.5 billion for the quarter.

• Effective tax rate was 22.5% (adjusted), with GAAP rate at 23.9% due to divestiture losses.

• Net income attributable to common shareholders was $2.68 billion, down from $2.92 billion in Q2 2023.

Outlook and guidance

• Full-year 2024 sales and revenues expected to be slightly lower than 2023, reflecting lower dealer inventory and weaker Construction Industries sales.

• Adjusted operating profit margin for the full year expected above the top end of the target range; adjusted profit per share guidance raised.

• ME&T free cash flow projected in the top half of the $7.5–$10 billion target range.

• Q3 2024 sales and revenues anticipated to be slightly lower year-over-year, with margin similar to prior year.

• Capital expenditures for 2024 expected between $2.0 billion and $2.5 billion; restructuring costs around $450 million.