Caterpillar Inc. reported fourth‑quarter 2025 results that surpassed Wall Street expectations, with revenue of $19.13 billion and adjusted earnings per share of $5.16. The company’s full‑year revenue reached $67.6 billion, up 4 % from $64.8 billion in 2024, while full‑year adjusted profit per share fell to $19.06 from $21.90 a year earlier.
The Energy & Transportation segment drove the quarter’s growth, posting a 23 % increase in sales to $9.4 billion and a 37 % rise in sales to users. Power & Energy sales surged 44 % as demand for power‑generation equipment for AI data‑center buildouts accelerated, while Construction Industries and Resource Industries saw 11 % and 8 % increases, respectively.
Operating margin contracted to 13.9 % from 18.0 % in Q4 2024, reflecting a $1.7 billion net incremental cost from tariffs and higher manufacturing and restructuring expenses. Adjusted operating margin fell to 15.6 % from 18.3 % year‑over‑year, underscoring the impact of cost inflation even as volume growth in Power & Energy offset some margin pressure.
Management guided for 5‑7 % sales growth in 2026, citing continued momentum from AI‑driven power‑generation demand and a record $51 billion backlog that provides visibility into future revenue. The company also highlighted strong cash generation, reporting $11.7 billion in enterprise operating cash flow and returning $7.9 billion to shareholders through buybacks and dividends.
CEO Joe Creed said the results “demonstrate the strength of our end markets and disciplined execution, and with a record backlog we enter the new year with strong momentum.” CFO Andrew Bonfield added that “adjusted operating profit margin was 15.6 % and adjusted profit per share was $5.16, better than anticipated due to stronger‑than‑expected volume growth in Power and Energy.”
Investors reacted positively to the earnings beat, with analysts noting the company’s ability to capture high‑growth AI infrastructure demand while managing tariff‑related headwinds. The strong performance in Power & Energy and the sizable backlog reinforced confidence in Caterpillar’s long‑term growth trajectory.
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