"Caterpillar posted Q3 revenue of $17.64 billion, beating the $16.77 billion estimate by 5%. Adjusted earnings per share came in at $4.95, above the $4.52 consensus, though down 4.3% from $5.17 a year earlier. Operating margin fell from 19.5% to 17.3% as manufacturing costs and tariffs bit into profitability. CEO Joe Creed pointed to "resilient demand and focused execution," with Energy & Transportation leading at 17% sales growth to $8.40 billion. Construction Industries grew 7%, and Resource Industries added 2%."
"Deere reported Q4 revenue of $12.39 billion, up 14.5% year over year, but full-year net income dropped 29% to $5.03 billion. Production & Precision Agriculture saw a 10% sales increase to $4.74 billion but operating profit fell 8% due to higher production costs and tariffs. Small Agriculture & Turf operating profit collapsed 89%. Construction & Forestry was the bright spot, with sales up 27% to $3.38 billion and operating profit up 6%."
"Diversification Shields One. Cycle Exposure Punishes the Other. Caterpillar's three-segment model spreads risk. Energy & Transportation growth offset softer mining demand, and construction stayed steady. The 17.3% operating margin, while down, still reflects pricing power and operational discipline. Deere is more exposed to agricultural cycles, and farmers are pulling back hard."
Caterpillar beat Q3 revenue and EPS estimates with $17.64 billion in sales and $4.95 adjusted EPS, despite a 4.3% year-over-year earnings decline and a fall in operating margin to 17.3% due to manufacturing costs and tariffs. Energy & Transportation led growth, Construction Industries and Resource Industries showed modest gains, and $3.7 billion in operating cash flow funded $1.1 billion in dividends and buybacks. Deere posted Q4 revenue growth but saw full-year net income drop 29% to $5.03 billion as higher production costs and tariffs compressed margins; Small Agriculture & Turf profits collapsed while Construction & Forestry expanded.
Read at 24/7 Wall St.
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