By Dean Seal

Caterpillar is set to release its second-quarter results on Tuesday before the market opens. Here is what you need to know.

PROFIT: The machinery maker is expected to post a profit of $2.27 billion, or $4.80 a share, according to the consensus estimate of nine analysts polled by FactSet. That's down from $2.68 billion, or $5.48 a share, in the same quarter a year earlier.

EARNINGS: Adjusted earnings, which strip out one-time items, are projected to be $4.89 a share, according to the estimates of 20 analysts surveyed by FactSet.

SALES: Revenue should fall to $16.3 billion from $16.69 billion a year earlier, according to the targets of 12 analysts polled by FactSet.

The stock rose 18% during the quarter and was changing hands at $435.82 a day before the earnings release.

WHAT TO WATCH

--Caterpillar has been open about its exposure to tariffs. The company said in April that it expected $250 million to $350 million in new tariff-related costs to be incurred in the second quarter. Investors will be looking to see how serious the damage is after months of shifts in proposed tariff rates.

--The company also warned in April that smaller price increases than last year will pull down its operating profit margin for the second quarter. Caterpillar logged lower first-quarter sales across all of its business groups, led by a 19% decline in construction equipment sales.

--The future of construction demand is going to be a big swing factor for Caterpillar going forward, UBS analysts said in a research note last month. Mining looks stable and oil and gas could stabilize at a lower level, so earnings potential looking ahead to 2026 will be tied to a re-acceleration of U.S. construction activity, they said.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

August 04, 2025 12:54 ET (16:54 GMT)

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