Caterpillar’s revenue jumps in Q3 despite margin pressures in construction

Cat 305 CR mini hydraulic excavator. (Photo: Caterpillar)

The company said the increase was driven by higher sales volumes of equipment to end users, with a particularly strong performance in its Energy and Transportation division.

However, its operating profit margin came under some pressure, dropping to 17.3% from 19.5% in the third quarter of 2024.

Caterpillar’s Construction Industries segment saw a 7% increase in sales in Q3, rising to nearly $6.8 billion.

Sales in its Resource Industries (which includes mining equipment) were up 2% to $3.1 billion, while Energy and Transportation jumped 17% to $8.4 billion, supported by strong global orders for data centres and oil and gas power systems.

The Energy and Transportation segment also enjoyed a 17% increase in profit in Q3 2025, as compared to the same period a year before, rising to nearly $1.7 billion. But profit fell 7% in the Construction Industries segment, to just under $1.4 billion.

Caterpillar said that within Construction Industries, sales had increased in North America due to higher sales volume but had decreased in Latin America due to unfavourable price realisation, partially offset by higher sales volume and favourable currency impacts related to the Brazilian Real. Sales were up in Europe, Africa and the Middle East (EAME). 

Meanwhile, the company said it had seen an increase in the estimated global annual effective tax rate that it pays to 24%.

Caterpillar CEO Joe Creed said, “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.”