Caterpillar Inc. (NYSE: CAT) Financial Performance Analysis

Earnings per Share (EPS) of $4.72, missing the estimated $4.88. Revenue of $16.57 billion, surpassing the expected $16.26 billion. Price-to-Earnings (P/E) ratio of 20.72 and a Price-to-Sales ratio of 3.22.

Caterpillar Inc. (NYSE: CAT) is a leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. The company operates globally, serving industries such as construction, mining, and energy. Caterpillar competes with companies like Komatsu and John Deere in the heavy machinery sector.

On August 5, 2025, Caterpillar reported earnings per share (EPS) of $4.72, missing the estimated $4.88. Despite this, the company generated revenue of $16.57 billion, surpassing the expected $16.26 billion. This mixed performance led to a 3.2% decline in Caterpillar's stock during premarket trading, as highlighted by Barrons.

Caterpillar's financial results for the second quarter of 2025 showed a profit per share of $4.62, with an adjusted profit per share of $4.72. The company generated an enterprise operating cash flow of $3.1 billion. Despite the earnings miss, Caterpillar raised its growth outlook, indicating confidence in future performance.

The company's financial metrics reveal a price-to-earnings (P/E) ratio of 20.72 and a price-to-sales ratio of 3.22. These figures suggest the market's valuation of Caterpillar's revenue and earnings. The enterprise value to sales ratio is 3.78, while the enterprise value to operating cash flow ratio is 21.20, reflecting the company's financial health.

Caterpillar's debt-to-equity ratio of 2.14 indicates a higher reliance on debt for financing. However, the company maintains a current ratio of 1.32, showing its ability to cover short-term liabilities with short-term assets. The earnings yield of 4.83% reflects the return on investment for shareholders, providing insight into the company's profitability.