🔹 Revenue: $16.57B (Est. $16.33B) 🟢; +1% YoY
🔹 Adj. EPS: $4.72 (Est. $4.88) 🔴; -21% YoY
🔹 Adj. OI: $2.92B (Est. $2.98B) 🔴; -22% YoY
🔹 Order Backlog: UP +$2.5B QoQ; UP +$8.9B YoY
FY Guide
🔹 Sales: Slightly higher vs. 2024
🔹 Net Incremental Tariffs: $1.3B–$1.5B
🔹 Adj. Op. Margin: Bottom half of target range incl. tariffs
🔹 ME&T Free Cash Flow: Around middle of $5B–$10B target
Q3 Guidance
🔹 Sales & Revenue: Expected to grow moderately YoY
🔹 Net Incremental Tariffs: $400M–$500M
🔹 Adj. Op. Margin: Similar YoY ex-tariffs; lower YoY including tariffs
Q2 Segment:
Machinery, Energy & Transportation
🔹 Revenue: $15.67B; DOWN -1% YoY
Construction Industries
🔹 Revenue: $6.2B; DOWN -7% YoY
🔹 Segment Profit: $1.24B; DOWN -29% YoY
🔹 Margin: 20.1% vs. 26.1% YoY
Resource Industries
🔹 Revenue: $3.1B; DOWN -4% YoY
🔹 Segment Profit: $537M; DOWN -25% YoY
🔹 Margin: 17.4% vs. 22.4% YoY
Energy & Transportation
🔹 Revenue: $7.8B; UP +7% YoY
🔹 Segment Profit: $1.59B; UP +4% YoY
🔹 Margin: 20.2% vs. 20.8% YoY
Financial Products
🔹 Revenue: $1.04B; UP +4% YoY
🔹 Segment Profit: $248M; UP +9% YoY
Other Metrics
🔹 Adj. Operating Margin: 17.6% vs. 22.4% YoY
🔹 ME&T Free Cash Flow: $2.4B; DOWN ~$0.1B YoY
🔹 Shareholder Returns: $1.5B returned via dividends and buybacks
🔹 Dividend: Raised 7%; 5th consecutive year of high single-digit increase
🔹 Capital Expenditures (FY): ~$2.5B
CEO Commentary
🔸 “Adjusted operating profit and margin exceeded our internal expectations despite tariff headwinds.”
🔸 “Order backlog increased across all three primary segments, reflecting healthy demand.”
🔸 “We continue to execute on our long-term profitable growth strategy.”