Caterpillar (CAT) expects softer 2025 revenue than last year's level amid ongoing weakness in the construction and resource industries after reporting top- and bottom-line declines in the fourth quarter.

Chief Executive Jim Umpleby said on a conference call that Caterpillar expects sales to be "slightly lower" this year, compared with 2024's tally of $64.81 billion, which itself was down on a year-over-year basis. Analysts surveyed by FactSet are modeling an increase in revenue to $66.01 billion in the ongoing year.

Strength in energy and transportation is expected to "mostly offset" lower construction and resource industry sales, Umpleby told analysts, according to a FactSet transcript. Shares of the heavy equipment manufacturer were down about 4.5% in midday trade.

The North American construction segment should see "moderately lower sales to users" that would likely reflect cooler demand for new equipment, according to Umpleby. Construction spend remains healthy in the region overall and Caterpillar is positive longer term.

For the fourth quarter, revenue declined to $16.22 billion from $17.07 billion year over year amid lower volume. The average analyst estimate on FactSet was for $16.61 billion. Adjusted earnings per share dipped to $5.14 from $5.23 but topped the $5.02 consensus.

The company's energy and transportation division saw sales dip narrowly to $7.65 billion from $7.67 billion. Construction industries' revenue dropped 8% to $6 billion while resource industries fell 9% to $2.96 billion.

Total sales were down across every geographic region, driven by North America and Latin America.