Caterpillar Inc. is reporting a 10% drop in sales and revenue for the first quarter of 2025.
The construction, mining and engineering equipment manufacturer released its first quarter results report on Wednesday. According to the report, the first quarter saw $14.2 billion in sales and revenue, — a $1.5 billion drop from last year’s first quarter figure of about $15.7 billion.
The drop in sales and revenue is reflected in a similar drop in profit margin. According to the report, the first quarter saw a profit margin of 18.1%, compared with a 2024 first quarter profit margin of 22.3%.
Similar dips are mirrored in both profit per share and adjusted profit per share figures.
The report attributes the decrease to lower sales volume “driven by impact from changes in dealer inventories.” The report says dealer inventory increased by $100 million during the first quarter of 2025, a number significantly lower than last year’s first quarter increase in dealer inventory of $1.4 billion.
As a result, sales were lower across all three of Caterpillar’s primary segments: construction industries, resource industries and energy and transportation.
The largest drop in sales is in construction industries that saw a nearly 20% reduction from 2024 first quarter sales and revenues total of $6.4 million. Resource industries sales dropped by 10%, while energy and transportation sales stayed relatively stable, declining by just 2%.
The company has a long history in Peoria as a significant regional employer. Caterpillar also previously based its global headquarters in the river city.
The first-quarter report comes at a time of milestones and leadership change for Caterpillar. The company celebrated its 100th anniversary this year and announced a new CEO earlier this month.
“Our strategy for long-term profitable growth is delivering results, which reflect the benefits of our diverse portfolio and end markets,” said incoming CEO Joe Creed. “I am honored to lead our talented team in building on Caterpillar’s legacy of helping customers solve their toughest challenges.”
Looking ahead to the second quarter, Caterpillar predicts sales similar to last year’s second quarter, according to the Associated Press.
However, the company does say factoring in tariff impacts at their current rates results in an estimate of annual sales being slightly down compared with last year.
