Caterpillar (CAT) Q4 2024 earnings summary

Executive summary

• Achieved record full-year adjusted profit per share of $21.90 in 2024, up 3% year-over-year, and an adjusted operating profit margin of 20.7%, exceeding the top of the target range.

• Full-year sales and revenues were $64.8 billion, with services revenue reaching a record $24 billion, up 4%.

• ME&T free cash flow was $9.4 billion, near the top of the $5–$10 billion target range.

• $10.3 billion was returned to shareholders in 2024 through $7.7 billion in share repurchases and $2.6 billion in dividends.

• Backlog increased by $2.5 billion year-over-year to $30 billion.

Financial highlights

• Q4 2024 sales and revenues were $16.2 billion, down 5% year-over-year, mainly due to lower sales volume and dealer inventory reductions.

• Q4 adjusted operating profit margin was 18.3%, and Q4 adjusted profit per share was $5.14, down from $5.23 last year.

• Full-year operating profit was $13.1 billion, up 1% year-over-year.

• Financial Products Q4 revenues rose 4%, but segment profit fell 29% due to equity securities and higher credit loss provisions.

• Q4 effective tax rate was 14.3% (annual effective tax rate excluding discrete items: 22.2%).

Outlook and guidance

• 2025 sales and revenues expected to be slightly lower than 2024, with unfavorable price realization accounting for about a 1% decrease.

• Adjusted operating profit margin and ME&T free cash flow for 2025 anticipated in the top half of target ranges, but lower than 2024.

• 2025 capital expenditures anticipated at $2.5 billion, including multi-year investments in large engine capacity.

• 2025 global annual effective tax rate, excluding discrete items, expected at 23.0%.

• Q1 2025 sales and margins expected to be lower year-over-year due to less dealer inventory build and unfavorable price realization, with improvement expected in the second half.