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Investing.com -- Caterpillar Inc. (NYSE: CAT) reported better-than-expected third-quarter results on Wednesday, as the heavy equipment manufacturer saw sales rise 10% YoY, driven by resilient demand across its business segments. Shares surged 4.9% following the announcement.
The company posted adjusted earnings of $4.95 per share for the third quarter, significantly exceeding analyst expectations of $4.55. Revenue reached $17.64 billion, surpassing the consensus estimate of $16.76 billion and marking a 10% increase from $16.1 billion in the same period last year.
The strong performance was primarily attributed to higher sales volume, particularly in equipment sales to end users. Caterpillar ’s Energy & Transportation segment led growth with a 17% increase in sales to $8.4 billion, while Construction Industries rose 7% to $6.8 billion, and Resource Industries increased 2% to $3.1 billion.
"Solid performance from our team generated strong results this quarter, driven by resilient demand and focused execution across our three primary segments," said Caterpillar CEO Joe Creed. "Our team’s continued discipline in a dynamic environment, coupled with a growing backlog, positions us for sustained momentum and long-term profitable growth."
Despite the revenue growth, Caterpillar’s operating profit margin decreased to 17.3% from 19.5% in the year-ago quarter. The company attributed this mainly to unfavorable manufacturing costs of $686 million, largely reflecting the impact of higher tariffs.
During the quarter, Caterpillar deployed $1.1 billion in cash for dividends and share repurchases, including $700 million for dividends and $400 million for stock buybacks. The company ended the quarter with $7.5 billion in enterprise cash.