Caterpillar (CAT) Slips 3% as Tariff Hit Jumps to $1.5-$1.8B for 2025

Caterpillar Inc. (NYSE: CAT) shares slid about 3% in premarket trade after the company revised upward its estimate of how much the 2025 tariffs will shave from results.

In an SEC filing, Caterpillar put numbers on the pain: roughly $500 million-$600 million hit in the third quarter and about $1.5 billion-$1.8 billion for the full year 2025, the company said. The update reflects additional tariff clarifications and new measures announced since the firm's Q2 report on August 5.

An analyst at Bank of America flagged the widening scope of steel and aluminum-related measures, saying the Construction segment looks particularly exposed and now bears a heavier share of the tariff headwinds than other businesses.

Despite the larger tariff tally, Caterpillar left its sales and revenue outlook from the Q2 call intact. It did, however, push expectations for adjusted operating profit margin toward the low end of the company's target range. Management said it's taking "initial mitigating actions" while noting trade and tariff talks remain fluid.

The company plans to update the market when it reports third-quarter results and holds its conference call on October 29, 2025.

Tariffs nudging margins lower - now we wait for the October print to see how deep the cut is.