Cat Financial Announces Second-Quarter 2025 Results

Rhea-AI Summary

Cat Financial (NYSE:CAT) reported strong second-quarter 2025 results, with revenues reaching $899 million, up 4% from Q2 2024. The company posted a profit of $137 million, compared to a $65 million loss in Q2 2024, primarily due to the absence of a previous $210 million loss on divestiture.

Key performance metrics showed improvement with retail new business volume increasing 5% to $3.60 billion, driven by higher volume in Power, EAME, and North America segments. Portfolio quality remained strong with past dues decreasing to 1.62% from 1.74% year-over-year, while the allowance for credit losses stood at $290 million, representing 0.94% of finance receivables.

Total assets grew 6% to $36.08 billion, reflecting the company's expanding financial services operations and strong market position in supporting Caterpillar customers and dealers globally.

Positive

• Revenue increased 4% to $899 million year-over-year
• Significant profit improvement to $137 million from a $65 million loss in Q2 2024
• Retail new business volume grew 5% to $3.60 billion
• Past due payments improved to 1.62% from 1.74% year-over-year
• Total assets increased 6% to $36.08 billion

Negative

• Higher provision for credit losses of $13 million
• Unfavorable impact from lower margin of $10 million
• Unfavorable impact from lower average financing rates of $20 million

News Market Reaction – CAT

+0.12%

3 alerts

+0.12% News Effect

-2.0% Trough Tracked

+$244M Valuation Impact

$203.98B Market Cap

1K Volume

On the day this news was published, CAT gained 0.12%, reflecting a mild positive market reaction. Argus tracked a trough of -2.0% from its starting point during tracking. Our momentum scanner triggered 3 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $244M to the company's valuation, bringing the market cap to $203.98B at that time.

Data tracked by StockTitan Argus on the day of publication.

NASHVILLE, Tenn., Aug. 5, 2025 /PRNewswire/ -- Cat Financial reported second-quarter 2025 revenues of $899 million, an increase of $34 million, or 4%, compared with $865 million in the second quarter of 2024. The increase in revenues was primarily due to a favorable impact from higher average earning assets of $49 million, partially offset by an unfavorable impact from lower average financing rates of $20 million. Second-quarter 2025 profit was $137 million compared with a $65 million loss in the second quarter of 2024.

Second-quarter 2025 profit before income taxes was $183 million, an increase of $201 million compared with an $18 million loss in the second quarter of 2024. The increase was mainly driven by the absence of a $210 million loss on divestiture of a non-U.S. entity in 2024 and a favorable impact from higher average earning assets of $20 million, partially offset by higher provision for credit losses of $13 million and an unfavorable impact from lower margin of $10 million.

The provision for income taxes for the second quarter of 2025 was $45 million on $183 million profit before income taxes compared with $47 million on $18 million loss before income taxes for the second quarter of 2024. The effective tax rate for the second quarter of 2024 was negatively impacted by the loss on divestiture of a non-U.S. entity with no related tax benefit.

During the second quarter of 2025, retail new business volume was $3.60 billion, an increase of $187 million, or 5%, compared with $3.41 billion in the second quarter of 2024. The increase was primarily driven by higher volume in the Power, EAME and North America segments.

At the end of the second quarter of 2025, past dues at Cat Financial were 1.62%, compared with 1.74% at the end of the second quarter of 2024. Write-offs, net of recoveries, were $18 million for both the second quarter of 2025 and the second quarter of 2024. As of June 30, 2025, Cat Financial's allowance for credit losses totaled $290 million, or 0.94% of finance receivables, compared with $282 million or 0.95% of finance receivables at March 31, 2025. The allowance for credit losses at year-end 2024 was $267 million, or 0.91% of finance receivables.

"We continue to see solid new business volume and strong portfolio performance," said Dave Walton, President of Cat Financial and Senior Vice President with responsibility for the Financial Products Division of Caterpillar Inc. "The Cat Financial team remains focused on execution of our strategy and supporting Caterpillar customers and dealers with financial services solutions."

About Cat Financial

Cat Financial is a subsidiary of Caterpillar, the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Cat Financial provides a wide range of financing solutions to customers and Cat® dealers for machines, engines, Solar® turbines, genuine Cat parts and services. Headquartered in Nashville, Tennessee, Cat Financial serves customers globally with offices and subsidiaries located throughout North and South America, Asia, Australia, Europe and Africa. Visit cat.com to learn more about Cat Financial.

STATISTICAL HIGHLIGHTS:

SECOND-QUARTER 2025 VS. SECOND-QUARTER 2024 (ENDED JUNE 30, EXCEPT TOTAL ASSETS) (Millions of dollars)
	2025		2024		CHANGE
Revenues	$         899		$         865		4 %
Profit (Loss) Before Income Taxes	$         183		$          (18)		1,117 %
Profit (Loss) (excluding profit attributable to noncontrolling interests)	$         137		$          (65)		311 %
Retail New Business Volume	$      3,599		$      3,412		5 %
Total Assets at June 30, and December 31, respectively	$    36,083		$    34,084		6 %
SIX MONTHS 2025 VS. SIX MONTHS 2024 (ENDED JUNE 30) (Millions of dollars)
	2025		2024		CHANGE
Revenues	$      1,759		$      1,718		2 %
Profit (Loss) Before Income Taxes	$         357		$         211		69 %
Profit (Loss) (excluding profit attributable to noncontrolling interests)	$         267		$         104		157 %
Retail New Business Volume	$      6,563		$      6,154		7 %

FORWARD-LOOKING STATEMENTS

Certain statements in this press release relate to future events and expectations and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "believe," "estimate," "will be," "will," "would," "expect," "anticipate," "plan," "project," "intend," "could," "should" or other similar words or expressions often identify forward-looking statements. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding our outlook, projections, forecasts or trend descriptions. These statements do not guarantee future performance and speak only as of the date they are made, and we do not undertake to update our forward-looking statements.

Cat Financial's actual results may differ materially from those described or implied in our forward-looking statements based on a number of factors, including, but not limited to: (i) disruptions or volatility in global financial markets limiting our sources of liquidity or the liquidity of our customers, dealers and suppliers; (ii) failure to maintain our credit ratings and potential resulting increases to our cost of borrowing and adverse effects on our cost of funds, liquidity, competitive position and access to capital markets; (iii) changes in interest rates, currency fluctuations or market liquidity conditions; (iv) an increase in delinquencies, repossessions or net losses of our customers; (v) residual values of leased equipment; (vi) our compliance with financial and other restrictive covenants in debt agreements; (vii) government monetary or fiscal policies; (viii) political and economic risks, commercial instability and events beyond our control in the countries in which we operate; (ix) demand for Caterpillar products; (x) marketing, operational or administrative support received from Caterpillar; (xi) our ability to develop, produce and market quality products that meet our customers' needs; (xii) information technology security threats and computer crime; (xiii) alleged or actual violations of trade or anti-corruption laws and regulations; (xiv) new regulations or changes in financial services regulations; (xv) additional tax expense or exposure; (xvi) changes in accounting guidance; (xvii) catastrophic events, including global pandemics such as the COVID-19 pandemic; and (xviii) other factors described in more detail in Cat Financial's Forms 10-Q, 10-K and other filings with the Securities and Exchange Commission.

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SOURCE Cat Financial

FAQ

What were Cat Financial's Q2 2025 earnings results?

Cat Financial reported Q2 2025 revenues of $899 million (up 4%) and profit of $137 million, compared to a $65 million loss in Q2 2024. The profit improvement was largely due to the absence of a previous $210 million divestiture loss.

How did Cat Financial's new business volume perform in Q2 2025?

Cat Financial's retail new business volume increased 5% to $3.60 billion in Q2 2025, primarily driven by higher volume in the Power, EAME and North America segments.

What is Cat Financial's current portfolio quality status?

As of Q2 2025, past dues were 1.62% (improved from 1.74% in Q2 2024), with write-offs of $18 million. The allowance for credit losses was $290 million, representing 0.94% of finance receivables.

How much did Cat Financial's total assets grow in Q2 2025?

Cat Financial's total assets grew 6% to $36.08 billion as of June 30, 2025, compared to $34.08 billion at the end of 2024.

What were the main challenges faced by Cat Financial in Q2 2025?

The main challenges included a $13 million increase in provision for credit losses, an unfavorable impact from lower margin of $10 million, and a negative impact of $20 million from lower average financing rates.