While many U.S. firms ‌have told investors this year that the tariffs are "manageable," early earnings-season commentary suggests profit margins are under pressure. The world's largest construction and mining equipment maker said in October 2025 it expected a $1.6 billion to $1.75 billion annual tariff hit. Caterpillar outlined two scenarios for its annual operating profit margin, echoing a trend from last ⁠year, highlighting difficulties in financial planning ‌due to Washington's evolving trade policies. Including tariffs, the company expects its full-year adjusted operating profit margin to be near the bottom of the target range. Caterpillar said its operating profit fell 9% ​in the fourth quarter to $2.66 billion, driven by $1.03 billion of unfavorable manufacturing costs, largely tied to ‌higher tariffs.