09:16 AM EDT, 04/30/2025 (MT Newswires) -- Caterpillar ( CAT ) on Wednesday reported first-quarter results below Wall Street's estimates, while the heavy equipment manufacturer offered two full-year outlook scenarios amid tariffs.

The company reported adjusted earnings of $4.25 a share for the March quarter, down from $5.60 the year before, missing the FactSet-polled consensus of $4.35. Revenue dropped to $14.25 billion from $15.8 billion last year, below the Street's view for $14.72 billion. The company attributed the top-line decrease to lower sales volume and prices.

"Our strategy for long-term profitable growth is delivering results, which reflect the benefits of our diverse portfolio and end markets," incoming Chief Executive Joe Creed said in a statement. Earlier in April, the company announced that Creed, who served as chief operating officer, will succeed Jim Umpleby as CEO, effective Thursday.

In an investor presentation, Caterpillar ( CAT ) said it now anticipates sales and revenue to be flat year over year for 2025, compared with prior projections for a slight decrease. This forecast does not include any impact from tariffs. Factoring in tariffs, before any additional mitigation actions, and negative economic growth in the second half, the company sees sales and revenue to be slightly down year over year, in line with its previous guidance.

Earlier this month, President Donald Trump announced sweeping new tariffs on imports from several nations, including China and Japan. Trump later declared a 90-day pause on duties for non-retaliating countries. However, the US and China have been in a deadlock, having raised tariffs on each other's goods multiple times.

Shares of Caterpillar ( CAT ) were up 1.9% in the most recent premarket activity.

Machinery, energy and transportation revenue fell 11% to $13.38 billion in the first quarter. Construction industries and resource industries logged revenue declines of 19% and 10%, respectively, at $5.18 billion and $2.88 billion. Revenue from energy and transportation moved down 2% to $6.57 billion. All three segments were impacted by lower sales volumes.

Caterpillar ( CAT ) expects sales in the current three-month period to be similar to the prior-year quarter, according to the presentation. The Street is looking for sales of $15.88 billion. It also forecasts an additional cost headwind of $250 million to $350 million from tariffs as of Tuesday, net of initial mitigation actions and cost controls.