Overview

• Caterpillar now projects tariff costs of $500 million to $600 million in the third quarter and about $1.5 billion to $1.8 billion for 2025, according to a regulatory filing.
• The company lowered its full-year adjusted operating margin outlook to the bottom of its target range.
• Management kept its 2025 sales and revenue outlook unchanged despite the higher tariff estimate.
• Shares fell about 3% on Friday following the updated tariff and margin guidance.
• Analysts remain divided on pass-through prospects as U.S. tariffs and high interest rates raise costs and pressure industrial demand.