• Former President Donald Trump publicly endorses Caterpillar amid strong quarterly results
  • Q3 2025 sales surged 10% year-over-year to $17.6 billion, driven by higher equipment sales to end users
  • Despite margin pressures from tariffs and manufacturing costs, the company demonstrates operational resilience

Former President Donald Trump's recent comment that "Caterpillar has been incredible" comes as the heavy equipment manufacturer posts a significant third-quarter rebound, with sales reaching $17.6 billion. The endorsement from the prominent political figure highlights Caterpillar's renewed momentum after a softer first half of the year.

The company's Q3 performance marked a notable improvement over Q1 2025, when revenues had declined 10% year-over-year to $14.2 billion amid dealer inventory reductions. The latest figures show equipment sales to end users driving the recovery, suggesting underlying demand remains strong across Caterpillar's construction, mining, and energy segments.

"Our team delivered another quarter of strong operational performance," CEO Joe Creed said in the earnings release, though he acknowledged ongoing cost pressures. The company's operating profit margin compressed to 17.3% from 19.5% in the prior-year period, reflecting what the company described as "higher manufacturing costs" that included tariff impacts.

Trump's praise, delivered during a recent public appearance, aligns with Caterpillar's position as a bellwether for U.S. manufacturing and infrastructure development. The company stands to benefit from continued infrastructure spending, though its global operations remain exposed to trade policy fluctuations and currency headwinds.

While profit per share declined to $4.88 from $5.06 in Q3 2024, affected by a higher estimated global tax rate and discrete tax charges, the top-line growth has bolstered investor confidence. The company's financing arm, Cat Financial, reported Q3 profit of $134 million, down slightly by 2% year-over-year, but showed improved portfolio performance with low past dues.

Industry analysts note that Caterpillar's recovery mirrors broader trends in the industrial sector, where infrastructure investment and commodity cycles are driving equipment demand. However, margin pressures from tariffs and supply chain costs remain a persistent challenge across the heavy equipment industry.

Efforts to reach Caterpillar representatives for additional comment on Trump's remarks were unsuccessful Thursday. The company's next earnings report, expected in early 2026, will provide further insight into whether the current momentum can be sustained amid global economic uncertainty.