Caterpillar’s nearly $65 billion in 2024 revenue represented a 3% year-over-year decline, driven partly by a $3.5 billion drop in sales volume.

In the fourth quarter, total revenue was also down to $16.2 billion, a year-over-year decline of 5%. Caterpillar’s sales volume was down $859 million in the fourth quarter alone, which it said was driven by changes in dealer inventories and lower equipment sales to end users. Dealer inventories decreased by $1.3 billion in the fourth quarter, up roughly 44% from a $900 million inventory decrease in Caterpillar’s 2023 fourth quarter.

Caterpillar’s construction segment saw the smallest drop in sales volume in the fourth quarter at $227 million, which translated to an 8% year-over-year decline in revenue to $6.5 billion.

In North America, Caterpillar saw $3.2 billion in construction revenue in its 2024 fourth quarter, representing a 14% year-over-year decline and the largest percentage decrease in this business segment. North America made up roughly 53% of Caterpillar’s external construction sales in its 2024 fourth quarter.

Operating profit in Caterpillar’s fourth quarter dropped 7% to $2.9 billion, generating an operating profit margin of 18% versus 18.4% in the company’s 2023 fourth quarter. Construction profit in the fourth quarter was down 24% to $1.2 billion.

Regarding the decline in fourth-quarter global sales, Caterpillar Chairman and CEO Jim Umpleby had the following to say during the earnings call:

“This was slightly below our expectations, mainly due to services growing at a slightly slower rate than we expected and some delivery delays in energy and transportation,” Umpleby said. “Services revenues did increase in the quarter compared to 2023. Stronger-than-expected machine sales to users drove a higher-than-anticipated dealer inventory reduction, which offset each other, resulting in a minimal impact to sales.”