Caterpillar's (CAT) total sales and revenues for 2024 were $64.809 billion, representing a 3% decrease compared to $67.060 billion in 2023. This decline was primarily driven by a $3.543 billion reduction in sales volume, partially offset by favorable price realization of $1.238 billion. Lower sales of equipment to end users and changes in dealer inventories contributed to the volume decline, as dealer inventory increased less in 2024 than in 2023.

Operating profit for 2024 was $13.072 billion, a slight increase of $106 million (1%) compared to $12.966 billion in 2023. The operating profit margin improved to 20.2% in 2024 from 19.3% in 2023. This improvement was driven by favorable price realization, lower freight costs, and the absence of the 2023 Longwall business divestiture impact, which offset higher SG&A and R&D expenses and restructuring costs.

Segment performance highlights:

• Construction Industries: Sales declined by 7% to $25.455 billion, driven by lower sales volume and unfavorable currency impacts. Segment profit decreased by 12% to $6.165 billion.‍
• Resource Industries: Sales fell by 9% to $12.389 billion, primarily due to lower sales volume. Segment profit declined by 11% to $2.533 billion.‍
• Energy & Transportation: Sales increased by 3% to $28.854 billion, supported by favorable price realization. Segment profit rose by 16% to $5.736 billion, reflecting improved margins.‍
• Financial Products: Revenues grew by 7% to $4.053 billion, driven by higher average financing rates and earning assets. Segment profit increased by 3% to $932 million.

Geographic performance:

• ‍North America: Sales decreased by 1%, primarily due to lower dealer inventory increases compared to 2023.‍
• Latin America: Sales rose by 1%, supported by higher sales volume and favorable price realization, despite unfavorable currency impacts.‍
• EAME (Europe, Africa, Middle East): Sales declined by 10%, driven by lower sales volume.‍
• Asia/Pacific: Sales fell by 6%, also due to lower sales volume and reduced dealer inventory levels.

Cash flow and liquidity:

• Caterpillar generated $12.04 billion in operating cash flow in 2024, down $850 million from 2023. The decline was attributed to higher cash taxes paid and changes in accrued wages, salaries, and employee benefits, partially offset by lower working capital requirements.‍
• Capital expenditures increased to $1.99 billion in 2024 from $1.66 billion in 2023. Free cash flow for Machinery, Energy & Transportation (ME&T) was $9.449 billion, down from $10.025 billion in 2023.
• The company ended 2024 with $6.89 billion in cash, a slight decrease of $89 million from year-end 2023.

Shareholder returns:

• Caterpillar returned significant capital to shareholders in 2024, with $2.65 billion in dividends paid and $7.697 billion spent on share repurchases. The quarterly dividend was maintained at $1.41 per share.
• The company repurchased 5.213 million shares during Q4 2024 at an average price of $353.10 per share.

Profitability metrics:

• Profit per share for 2024 was $22.05, up from $20.12 in 2023. Adjusted profit per share was $21.90 in 2024, compared to $21.21 in 2023.
• Consolidated profit before taxes increased to $13.373 billion in 2024, compared to $13.050 billion in 2023. The effective tax rate decreased slightly to 19.7% in 2024 from 21.3% in 2023.

Debt and financial position:

• Total debt increased by $531 million to $38.41 billion as of December 31, 2024. Debt related to ME&T decreased by $893 million, while Financial Products' debt increased by $1.54 billion to support portfolio funding requirements.
• Shareholders' equity remained stable at $19.494 billion at year-end 2024, compared to $19.503 billion in 2023.