Direct Answer
Caterpillar Inc. (CAT, NYSE) reported total sales and revenues of $64.806 billion in fiscal year 2024 (the calendar year ending December 31, 2024), down from $67.060 billion in FY2023. Net income attributable to shareholders was $10.791 billion, with diluted EPS of $22.05 and an operating margin of approximately 20.1%. The revenue decline was driven by dealers reducing their equipment inventories after large inventory builds in 2022 and 2023, not by weakness in end-user demand, which remained relatively resilient particularly in North America.
Revenue by segment (FY2024)
| Segment | FY2024 Revenue (approx.) | Key products |
|---|---|---|
| Energy & Transportation | $28.5B | Reciprocating engines, turbines, locomotives, marine, oil and gas, industrial power |
| Construction Industries | $21.7B | Excavators, bulldozers, wheeled loaders, asphalt pavers |
| Resource Industries | $11.8B | Mining trucks, underground mining equipment, large mining shovels |
| Financial Products | $3.5B | Cat Financial: equipment financing and insurance for customers and dealers |
| Total | $64.806B |
Energy and Transportation is Caterpillar's largest segment by revenue, supplying reciprocating engines and turbines to oil and gas producers, industrial power users, and marine customers, as well as diesel-electric locomotives for freight rail. The segment benefits from long-term service agreements and recurring parts demand across its installed base.
Construction Industries covers the machines most closely associated with the Caterpillar brand: track-type tractors (bulldozers), hydraulic excavators, wheeled loaders, backhoe loaders, and road-building machinery. This segment is the most sensitive to housing starts, infrastructure spending, and regional construction cycles.
Resource Industries serves the global mining industry with large surface and underground equipment. Mining trucks capable of hauling hundreds of tons of ore, large mining shovels, and longwall coal-mining systems define this segment's product range. Mining capital expenditure cycles create periodic swings in Resource Industries revenue.
Financial Products encompasses Cat Financial, which provides retail financing to customers purchasing Caterpillar equipment and wholesale financing to dealers. Revenue in this segment is interest and fee income, not equipment sales, making it more stable and predictable than the machinery segments.
Key financial metrics (FY2023 to FY2024)
| Metric | FY2023 | FY2024 |
|---|---|---|
| Total sales and revenues | $67.060B | $64.806B |
| Operating profit margin | approximately 21% | approximately 20.1% |
| Net income (attributable to shareholders) | approximately $10.3B | $10.791B |
| Diluted EPS (GAAP) | approximately $21.21 | $22.05 |
| Adjusted profit per share (non-GAAP) | approximately $20.12 | $21.90 |
| ME&T free cash flow | approximately $7.0B | approximately $5.8B |
| Share repurchases | approximately $5.9B | approximately $8.2B |
| Quarterly dividend per share | $1.30 | $1.41 |
Despite the revenue decline from FY2023 to FY2024, Caterpillar's net income attributable to shareholders rose from approximately $10.3 billion to $10.791 billion, reflecting disciplined cost management and a favorable sales mix. Diluted EPS of $22.05 exceeded the FY2023 figure partly because the diluted share count fell as the company repurchased approximately $8.2 billion in shares during the year.
Caterpillar distinguishes between GAAP and non-GAAP (adjusted) measures. The adjusted profit per share of $21.90 excludes restructuring charges and certain other items. Investors following Caterpillar should consult the company's quarterly earnings releases for the precise reconciliation of GAAP to non-GAAP figures each period.
ME&T free cash flow refers to Caterpillar's Machinery, Energy and Transportation segment free cash flow, which excludes the Financial Products segment. Caterpillar uses this measure as its primary capital allocation benchmark because Financial Products operates with a different balance sheet structure than the manufacturing operations. ME&T free cash flow of approximately $5.8 billion in FY2024 was lower than the approximately $7.0 billion in FY2023, reflecting lower operating cash flow on reduced revenues.
Services and parts as a growing recurring revenue stream
Caterpillar's aftermarket parts and services business is a strategically important and structurally growing component of its revenues. When a customer purchases a Caterpillar machine, that machine typically remains in service for ten to twenty years or more, creating a long-running demand for replacement parts, maintenance, and repair services sold through the dealer network.
Management has emphasized expanding services revenue as a stated priority in its strategic plan, often referred to internally as growing the installed base monetization. Services revenue carries higher margins than new equipment sales because competitive intensity is lower once a machine is already running Caterpillar components and a dealer relationship is established.
The Energy and Transportation segment illustrates this dynamic clearly. Reciprocating engine overhauls, turbine inspections, locomotive rebuilds, and long-term service agreements on power generation equipment all generate recurring revenues that are less dependent on new equipment order cycles than the Construction Industries and Resource Industries segments. This mix shift toward services is part of why Caterpillar's operating margins have remained elevated even as the new equipment cycle has softened.
Caterpillar does not separately disclose a consolidated services revenue total in the same format each quarter, but has indicated in investor presentations that services revenues have grown from roughly $14 billion annually around 2019 toward a longer-term target of approximately $28 billion, though the precise reported figure varies by what is included in each company communication.
Dividend Aristocrat status and shareholder returns
Caterpillar has increased its dividend for 31 consecutive years as of fiscal year 2024, qualifying it as a Dividend Aristocrat under the S&P 500 criteria that require at least 25 consecutive years of increases. The quarterly dividend rate was $1.41 per share in 2024, equating to $5.64 per share on an annualized basis.
In addition to dividends, Caterpillar returned approximately $8.2 billion to shareholders through share repurchases in fiscal year 2024. Combined with dividends paid, total capital returned to shareholders exceeded $10 billion for the year.
Caterpillar's ability to sustain and grow its dividend through economic downturns reflects the combination of its global installed base generating parts and service revenues, the counter-cyclical stability provided by its Financial Products segment, and the company's practice of managing costs aggressively when equipment sales volumes fall. The dividend record encompasses multiple construction and mining cycles, including the 2015 to 2016 downturn in commodity prices that sharply reduced mining capital expenditure.
Frequently Asked Questions
What were Caterpillar's total sales and revenues in fiscal year 2024?
Caterpillar reported total sales and revenues of $64.806 billion in fiscal year 2024 (the calendar year ending December 31, 2024), down from $67.060 billion in fiscal year 2023. The revenue decline reflected lower end-user demand and dealers actively reducing inventory levels after building up large stocks in 2022 and 2023.
Why did Caterpillar's revenue fall in 2024 if end-user demand remained relatively resilient?
Caterpillar's reported revenues fell in 2024 primarily because its dealers reduced their equipment inventories after building them up sharply in 2022 and 2023. Caterpillar sells to its dealer network, not directly to end users. When dealers destocked, they ordered less from Caterpillar even as the underlying demand from construction companies, miners, and energy producers remained relatively firm, particularly in North America. This inventory cycle is a recurring feature of Caterpillar's reported revenues.
What is Caterpillar's largest revenue segment?
Energy and Transportation is Caterpillar's largest segment, contributing approximately $28.5 billion of the company's $64.806 billion in total FY2024 revenues. The segment covers reciprocating engines and turbines used in oil and gas, industrial power, and marine applications, as well as locomotives for rail. Construction Industries was the second largest segment at approximately $21.7 billion, followed by Resource Industries at approximately $11.8 billion.
Is Caterpillar a Dividend Aristocrat?
Yes. Caterpillar had increased its dividend for 31 consecutive years as of fiscal year 2024, qualifying it as a Dividend Aristocrat (a designation for S&P 500 companies with at least 25 consecutive years of dividend increases). The quarterly dividend rate was $1.41 per share in 2024, equating to an annualized dividend of $5.64 per share. Caterpillar also returned approximately $8.2 billion to shareholders through share repurchases in fiscal year 2024.