Construction and agriculture equipment manufacturer Caterpillar reported a stronger-than-expected third quarter, causing shares to rise in premarket trading.
In Q3, Caterpillar reported an adjusted earnings of $4.95 per share on revenue of $17.64 billion. This surpassed analyst expectations of $4.59 per share and $16.77 billion in revenue.
Total sales and revenues for Q3 2025 totaled $17.638 billion, marking a $1.532 billion, or 10%, increase from $16.106 billion in Q3 2024.
In North America, Caterpillar stated that its sales grew primarily from increased sales volume, which was partially offset by less favorable price realization. The rise in sales volume was mainly due to higher equipment sales to end users.
Caterpillar’s Construction Industries segment profit was $1.377 billion in Q3 2025, down $109 million or 7% from $1.486 billion in Q3 2024. The decline was mainly due to unfavorable price realization of $262 million and higher manufacturing costs of $174 million, partially offset by a $313 million boost from increased sales volume.
The construction company attributed the increase in manufacturing costs mainly to higher tariffs.
Caterpillar CEO Joe Creed informed investors this morning, “Solid performance from our team generated strong results this quarter, driven by resilient demand and focused execution across our three primary segments. Our team’s continued discipline in a dynamic environment, coupled with a growing backlog, positions us for sustained momentum and long-term profitable growth.”
Caterpillar shares jumped 4% following the announcement.
By CEO NA Editorial Staff
