Caterpillar’s construction and mining sales fall amid tariffs and price pressure

Cat 330 UHD. (PHOTO: Caterpillar)

Sales declined by 15% in North America and by 20% in Latin America but did increase in Europe, Middle East and Africa (EMEA) by 13% and in Asia Pacific by 6%.

Caterpillar said that sales in North America decreased “due to unfavorable price realization and lower sales volume” while in Latin America one issue was unfavorable currency impacts primarily related to the Brazilian real.

Construction Industries’ segment profit was $1.244 billion in the second quarter of 2025, a decrease of 29%, compared with the second quarter of 2024. The OEM said that the decrease was mainly due to unfavorable price realization and higher tariffs.

Caterpillar’s Resource Industries division, which includes mining and quarrying equipment, had total sales of $3.087 billion in the second quarter of 2025, a decrease of 4%, compared with the second quarter of 2024.

Sales in North America were down 8% and Asia Pacific saw a drop of 10%. Latin America saw growth of 3% and EAME was up by 13%.

Resource Industries’ segment profit was $537 million in the second quarter of 2025, a decrease of 25% compared with the second quarter of 2024. The OEM said that, “Unfavorable manufacturing costs largely reflected the impact of higher tariffs.”

Caterpillar CEO, Joe Creed, highlighted infrastructure spending and growing energy needs as positives in the current marketplace.