Caterpillar Inc. reported its first-quarter earnings for 2025, revealing a decline in both profit and revenue compared to the previous year. The company's adjusted earnings per share (EPS) came in at $4.25, missing the consensus estimate of $4.32, while revenue totaled $14.25 billion, below the expected $14.69 billion. The company's GAAP EPS was $4.20. The Machinery, Energy & Transportation segment, a significant part of Caterpillar's business, saw its revenue decrease by 11% year-over-year to $13.38 billion. This decline was attributed to lower sales volume and unfavorable price realization, with a specific mention of a 19% drop in construction industries revenue due to reduced dealer inventory. The operating margin for the quarter was 18.1%, with an adjusted operating margin of 18.3%. Despite the earnings miss, Caterpillar's stock showed resilience, rising by approximately 2% to 4% in pre-market trading. This suggests that investors might have anticipated even weaker results. The company's financial segment, however, reported a revenue increase of 3.8% year-over-year to $871 million, surpassing the estimate of $839.6 million. Enterprise operating cash flow for the quarter was $1.3 billion. Looking forward, Caterpillar expects its 2025 sales and revenues to remain flat compared to 2024, not accounting for potential impacts from tariffs.