Caterpillar reports Q1 construction sales decline across all regions

Caterpillar’s vast indoor stand proved to be one of the major attractions for visitors to the exhibition (Image: Ervin Bedeli)

The US-based OEM said that this decrease was primarily due to lower sales volume of $820 million and unfavorable price realisation of $355 million.

The decrease in sales volume was mainly driven by the impact from changes in dealer inventories. Dealer inventory decreased slightly during the first quarter of 2025, compared with an increase during the first quarter of 2024, according to the OEM.

Sales were down in all geographical areas for Caterpillar in the first quarter of the year compared to the first quarter of 2024. North America was down 24%, Latin America saw a drop of 15%, EAME (Europe, African, Middle East) declined by 13% and Asia Pacific by 12%.

The company’s resource industries section, which includes quarry and mining equipment also saw sales decline. Total sales were $2.884 billion in the first quarter of 2025, a decrease of $309 million, or 10% compared with the first quarter of 2024.

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According to Caterpillar, “The decrease was primarily due to lower sales volume of $179 million, unfavorable price realization of $50 million and unfavorable currency impacts of $46 million, primarily related to the Australian dollar. The decrease in sales volume was mainly driven by lower sales of equipment to end users.”

Sales declined in North America by 14%, EAME by 13% and by 14% in Asia Pacific. The one region to see growth was Latin America, where sales were up by 18% compared to the same quarter last year.

“Our strategy for long-term profitable growth is delivering results, which reflect the benefits of our diverse portfolio and end markets,” said incoming CEO Joe Creed. “I am honored to lead our talented team in building on Caterpillar’s legacy of helping customers solve their toughest challenges.”

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