About Andrew Bonfield
Andrew Bonfield, Caterpillar's chief financial officer, reported first-quarter 2026 results that included sales and revenues of $17.4 billion, a 22% increase year-over-year, and adjusted profit per share of $5.54, up 30% from the prior year. Bonfield stated that order rates reached a record level, contributing to a $12 billion increase in backlog to $63 billion. He noted that first-quarter tariff costs for levies introduced since the beginning of 2025 were approximately $600 million, below the $800 million estimate provided in January. Bonfield said the full-year 2026 tariff cost estimate had been reduced to a range of $2.2 billion to $2.4 billion from the previous $2.6 billion estimate, citing a recent U.S. Supreme Court ruling on IPA tariffs and the addition of Section 122 tariffs. He also said the company deployed $5.7 billion to shareholders in the quarter, including a $4.5 billion accelerated share repurchase.
During the first-quarter 2026 call, Bonfield's pending departure was acknowledged by Chairman and CEO Joe Creed, who said Bonfield would be missed and that the company was in a good place with incoming CFO Kyle Epley. Earlier calls saw Bonfield discussing tariff impacts and mitigation strategies. In the fourth-quarter 2025 call, he said the absolute dollar value of new tariffs imposed in 2025 was $1.8 billion, with incremental full-year 2026 tariff costs expected to be around $2.6 billion. In the third-quarter 2025 call, Bonfield stated a net tariff impact of $1.6 billion to $1.75 billion for the full year, and in the second-quarter 2025 call, he estimated the net impact from incremental tariffs for 2025 would be $1.3 billion to $1.5 billion. Bonfield also announced changes in reporting for dealer inventories during the first-quarter 2026 call, saying that changes in dealer inventories would be reported in total and for construction industries only, as over 70% of dealer inventory in power and energy and resource industries is backed by firm customer orders.
Source: AI-verified profile updated from Andrew Bonfield's recent appearances.
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✨ AI-enhanced transcript with speaker attribution
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Rusty Dunn0:19
Hello everyone, I'm Rusty Dunn. Welcome to Caterpillar's second quarter 2022 financial results presented by our Chief Financial Officer Andrew Bonfield. Andrew, nice to see you. Every quarter goes more quickly than the last, it seems like.
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Andrew Bonfield0:32
It always does, Rusty. It always seems that way.
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Rusty Dunn0:35
All right, well let's get into the second quarter results and take a look first at the top line numbers as we always do. Sales and revenue?
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Andrew Bonfield0:40
Sales and revenues are up 1.4 billion, or 11%, to 14.2 billion dollars in the quarter. That was led by price being the major factor. We also saw volume, particularly of services, growing in the quarter, offset a little bit by negative currency because of the strengthening of the dollar against other currencies. We saw good growth across all our primary segments. In construction, there was mostly price offset by a little bit of currency. In resource industries, we saw good price but also growth in services. And in energy and transportation, growth across all applications and also between segments.
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Rusty Dunn1:17
So from the top line to the bottom line, how do we land with profit per share?
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Andrew Bonfield1:20
Profit per share was $3.13. That includes $0.05 restructuring charges, so adjusted profit per share was $3.18, which was up 22% versus prior. Favorable price helping to offset higher manufacturing costs and SG&A and R&D expenses.
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Rusty Dunn1:37
I know you always like to give a read on the balance sheet and cash deployment and such. How are we looking there?
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Andrew Bonfield1:42
Again, continuing to see strong cash generation. Free cash flow in the quarter was $1.1 billion. We've returned $1.7 billion of cash back to shareholders through a mixture of dividends and share repurchases. This was the first time we paid the higher dividend. Dividend was up 8% at $1.20 for the quarter. Overall enterprise cash balance of $6 billion at the end of the quarter. So really a good story in the second quarter.
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Rusty Dunn2:05
Any other key takeaways that people might want to have?
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Andrew Bonfield2:08
Well, no. I mean, just again, very difficult circumstances out there, very challenging with supply chains. People are working really, really hard to deliver machines to customers and make sure our customers are successful in everything they're doing.
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Rusty Dunn2:20
Always good to get your insight into the second quarter numbers. Let's go beyond the numbers for a minute though. I know you recently talked with Mark Cameron, the Senior Vice President of Resource Industry Sales, Services, and Technology, and he had some interesting comments on what he's seeing in sustainability, growth, and technology advancements for customers. Let's listen to that conversation.
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Andrew Bonfield2:43
Hello everybody. Today I'm joined by Mark Cameron, who is our Senior Vice President, Resource Industries Sales, Services, and Technology. Mark, you actually came from the outside. You joined Caterpillar recently from one of our large mining customers, didn't you?
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Mark Cameron2:57
Yes, just over a year and a half ago, in November 2020, I joined from Rio Tinto.
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Andrew Bonfield3:03
Well, as you know, we recently held our Investor Day on May 17 in Dallas, and our theme of that meeting was services, technology, and sustainability. And Resource Industries is right at the forefront of all of those. Perhaps you can maybe start with sustainability, because I think a lot of our large mining customers are very focused on that.
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Mark Cameron3:22
It all starts with proactively understanding the customer's pain points. To do that, we have to build very strong relationships, deep relationships stemmed in trust. Then we can work with them and help them on their biggest challenges. Many of the times that's across safety, increasing production or uptime of their fleets, of course lowering cost, and even with the availability of parts. So I like to refer to those as the critical few basics that we really must be brilliant at in Caterpillar and supporting our customers. Now, on top of those traditional challenges and back to your question on sustainability, the energy transition is here. And our mining customers are also asking us to help them reach their carbon reduction timelines and sustainability goals. To do this, I'd say we're collaborating closer than we ever have before with our mining customers. Over the past 12 to 13 months now, we've signed agreements with miners just getting started and developing new mines such as Newmont, GraffTech, to the big large global miners BHP, Rio Tinto, Newmont, Teck, Vale, and others in the sustainability space. And we're developing the sustainable solutions. It's going to include new machines, technology, and services, but we're doing this alongside our customers. And they get the opportunity to test and validate. So this is really a very new and innovative way of doing product development in Resource Industries.
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Andrew Bonfield5:05
Yeah, completely agree. One of the things that's always exciting to go to Investor Day is seeing things like autonomy and the autonomous mining trucks. Perhaps you can talk about autonomy, where we are going on that.
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Mark Cameron5:15
Caterpillar autonomy is leading the industry. We have the largest autonomous haul truck fleet worldwide, with over 540 machines today, and we're launching more every month. Now, our advantage over the competition is we can run trucks at maximum speed in extreme conditions. We're constantly improving our cycle times. And how do we do this? We really focus on the entire site versus the traditional approach of focusing on a single machine. We've got deep integration, deep machine integration with our sensors and software. We're constantly making software upgrades. All of these collectively really differentiates the autonomy solution.
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Andrew Bonfield5:58
It is really exciting to see how this integration of services, helping, being there, working with the customer, technology, autonomy, electrifications for example, sustainability, which is also going to create a very different mindset in the future.
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Rusty Dunn6:20
And it's really good news to listen to those comments from Mark on where things are headed. So second half of the year to go now. We'll see how it rolls.
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Andrew Bonfield6:27
Yes, second half we still got a lot of work to do. Everyone's still got a focus. We've got a lot to execute in the second half, big plans. But overall, we are in a good place, even though there are challenges out there as they always are. Really confident the team will actually go out and meet those challenges.
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Rusty Dunn6:43
As always, appreciate you being with us, Andrew. Look forward to seeing you next quarter. Thank you.
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Andrew Bonfield6:47
Thank you, Rusty. And thanks to all of you watching. As always, be safe in everything you do. Have a great day.
