Caterpillar reported a $622 million drop in operating profit for the second quarter of 2025, citing tariff-related manufacturing costs.
The machinery manufacturer added that it expects tariffs to cost it $1.3 billion to $1.5 billion in 2025. After factoring in those expenses, the company anticipates its full-year adjusted operating profit margin will land in the lower half of its target range.
Caterpillar also posted revenues of $16.6 billion, a 1% decrease compared to Q2 2024. The company attributed the drop to an "unfavorable price realization" of $414 million, partially offset by a higher sales volume of $237, driven by increased sales of equipment to end users.
The report represents Caterpillar's fourth straight quarter of falling sales and earnings, Investor's Business Daily reported.
However, the company noted that it now expects slightly higher full-year revenues compared to 2024 — an improvement from its previous forecast of roughly flat results.
