Cat Financial posts robust 2024 year-end results

Cat Financial, a subsidiary of Caterpillar Inc., has announced its 2024 year-end financial results, showcasing a strong performance across the board.

The company reported revenues of US$3.49 billion for 2024, marking a 7% increase from the previous year’s US$3.25 billion. This boost in revenue was mainly due to higher average financing rates and increased earning assets, though it was partially offset by a negative impact from returned or repossessed equipment.

Cat Financial’s profit for 2024 was US$598 million, a 6% rise compared to US$563 million in 2023. Despite this increase, profit before income taxes saw a significant decline of 30%, dropping to US$533 million from US$760 million in 2023. The decrease was largely attributed to a US$210 million loss on the divestiture of a non-US entity.

Retail new business volume also showed impressive growth, reaching US$13.24 billion in 2024, up by 9% from the previous year’s US$12.11 billion. This growth was primarily driven by higher volumes in North America.

Dave Walton, President and CEO of Cat Financial Services Corporation and a senior vice president of Caterpillar Inc., expressed satisfaction with the company’s performance:

“We are very pleased with the performance of our business and the health of our global portfolio during 2024. Retail new business volume was strong, and we ended the year with the lowest past-due percentage since 2005.”

“The global Cat Financial team remains focused on executing our strategy and providing financial services solutions to Caterpillar customers and dealers worldwide,” he added.