Caterpillar stock falls after raising 2025 tariff impact estimate

Investing.com -- Caterpillar Inc. (NYSE: CAT) stock fell 3% in after-hours trading Thursday after the heavy equipment manufacturer raised its estimate for the impact of tariffs on its 2025 financial results.

In an SEC filing, the company disclosed that it now expects the net impact from incremental tariffs introduced in 2025 to be approximately $500 million to $600 million for the third quarter and approximately $1.5 to $1.8 billion for the full year 2025. This update follows several additional clarifications and tariffs announced since Caterpillar released its second quarter earnings on August 5.

Despite the increased tariff burden, Caterpillar stated that its sales and revenue outlook provided during the second quarter earnings call remains unchanged. However, the company now expects its full-year adjusted operating profit margin to be "near the bottom of the target margin range" as a result of these tariff impacts.

The construction and mining equipment giant noted that it is taking "initial mitigating actions" to reduce the impact of these tariffs, but acknowledged that "trade and tariff negotiations continue to be fluid."

Caterpillar plans to provide further updates during its third-quarter earnings announcement and conference call scheduled for October 29, 2025.

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