Caterpillar: stock hit as estimated impact of tariffs raised

Published: 2025-09-01 02:06:54 ET CAT

Published on 09/01/2025 at 02:06 am EDT

On Thursday evening, Caterpillar announced that it had raised the estimated impact of new US tariffs on its accounts, which it now estimates at between $1.5bn and $1.8bn for FY 2025, compared with $1.3bn to $1.5bn estimated at the beginning of August. cp: -3.7%.The customs surcharges imposed by Washington on imported products are also expected to have a greater than expected financial impact on its Q3 results, i.e. around $500m to $600m over the period, the construction equipment manufacturer said in a filing with the SEC, the New York stock exchange authority.As a result, the Irving, Texas-based group now says it expects to generate an adjusted operating margin at the low end of its annual target range.Caterpillar shares fell 3.2% on Friday morning in the wake of these announcements, with investors judging that the measures implemented by the construction and mining equipment manufacturer to limit the impact of these new tariffs are proving insufficient for the time being.'Caterpillar had already found itself in the same situation during Covid, falling behind its competitors,' BofA analysts recently pointed out.'The group then recovered and began to show more favorable momentum in terms of pricing and operational execution,' the investment bank noted.'However, we believe it is unlikely that Caterpillar will remain inactive on the issue of pricing in 2026, as its rivals are already beginning to take action to offset the impact on costs and prices," BofA concluded.