Press release
January 29, 2026
Caterpillar Reports Fourth-Quarter and Full-Year 2025 Results
Caterpillar Inc (CAT)
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Caterpillar Reports Fourth-Quarter and Full-Year 2025 Results
January 29, 2026
Fourth-quarter 2025 sales and revenues were $19.1 billion; full-year sales and revenues were $67.6 billionFourth-quarter 2025 profit per share of $5.12; adjusted profit per share of $5.16Full-year profit per share of $18.81; adjusted profit per share of $19.06Strong full-year enterprise operating cash flow of $11.7 billion; ended 2025 with $10.0 billion of enterprise cashDeployed $7.9 billion of cash for share repurchases and dividends in 2025
Fourth Quarter
Full Year
($ in billions except profit per share)
2025
2024
2025
2024
Sales and Revenues
$19.1
$16.2
$67.6
$64.8
Profit Per Share
$5.12
$5.78
$18.81
$22.05
Adjusted Profit Per Share
$5.16
$5.14
$19.06
$21.90
Please see a reconciliation of GAAP to non-GAAP financial measures in the appendix on pages 13 to 15.
, /PRNewswire/ -- Caterpillar Inc. (NYSE: CAT) announced fourth-quarter and full-year results for 2025.
"Our centennial year marked a significant milestone, underscored by the highest full-year sales and revenues in Caterpillar's history and a single-quarter record of $19.1 billion," said Caterpillar CEO Joe Creed. "These results demonstrate the strength of our end markets and our disciplined execution. With a record backlog, we enter the new year with strong momentum and a continued focus on delivering long-term value for our customers and shareholders."
Sales and revenues for the fourth quarter of 2025 were $19.1 billion, an 18% increase compared with $16.2 billion in the fourth quarter of 2024. Operating profit margin was 13.9% for the fourth quarter of 2025, compared with 18.0% for the fourth quarter of 2024. Adjusted operating profit margin was 15.6% for the fourth quarter of 2025, compared with 18.3% for the fourth quarter of 2024. Fourth-quarter 2025 profit per share was $5.12, compared with $5.78 profit per share in the fourth quarter of 2024. Adjusted profit per share in the fourth quarter of 2025 was $5.16, compared with fourth-quarter 2024 adjusted profit per share of $5.14.
Full-year sales and revenues in 2025 were $67.6 billion, up 4% compared with $64.8 billion in 2024. The increase reflected higher sales volume of $3.4 billion, partially offset by unfavorable price realization of $0.8 billion. Higher sales volume was primarily driven by higher sales of equipment to end users. Operating profit margin was 16.5% in 2025, compared with 20.2% in 2024. Adjusted operating profit margin was 17.2% in 2025, compared with 20.7% in 2024. Full-year profit was $18.81 per share in 2025, compared with profit of $22.05 per share in 2024. Adjusted profit per share in 2025 was $19.06, compared with adjusted profit per share of $21.90 in 2024.
In 2025 and 2024, adjusted operating profit margin excluded restructuring costs. 2025 and 2024 adjusted profit per share excluded restructuring costs and mark-to-market gains for remeasurement of pension and other postemployment benefit (OPEB) plans. In 2024, adjusted profit per share also excluded a discrete tax benefit for a tax law change related to currency translation. Please see a reconciliation of GAAP to non-GAAP financial measures in the appendix on pages 13 to 15.
For the full year 2025, enterprise operating cash flow was $11.7 billion, and the company ended the fourth quarter with $10.0 billion of enterprise cash. During the year, the company deployed $5.2 billion of cash for repurchases of Caterpillar common stock and $2.7 billion of cash for dividends.
CONSOLIDATED RESULTS
Consolidated Sales and Revenues
Consolidated Sales and Revenues Comparison
Fourth Quarter 2025 vs. Fourth Quarter 2024
To access this chart, go to https://investors.caterpillar.com/financials/quarterly-results/default.aspx for the downloadable version of Caterpillar fourth-quarter 2025 earnings.
The chart above graphically illustrates reasons for the change in consolidated sales and revenues between the fourth quarter of 2024 (at left) and the fourth quarter of 2025 (at right). Caterpillar management utilizes these charts internally to visually communicate with the company's board of directors and employees.
Total sales and revenues for the fourth quarter of 2025 were $19.133 billion, an increase of $2.918 billion, or 18%, compared with $16.215 billion in the fourth quarter of 2024. The increase was primarily due to higher sales volume of $2.708 billion. The increase in sales volume was mainly driven by higher sales of equipment to end users and the impact from changes in dealer inventories. Total dealer inventory remained about flat during the fourth quarter of 2025, compared with a decrease of $1.3 billion during the fourth quarter of 2024. Machine dealer inventory decreased $500 million during the fourth quarter of 2025, compared with a decrease of $1.6 billion in the fourth quarter of 2024.
Sales were higher across the three primary segments.
Sales and Revenues by Segment
(Millions of dollars)
Fourth
Quarter
2024
Sales
Volume
Price
Realization
Currency
Inter-
Segment /
Other
Fourth
Quarter
2025
$
Change
%
Change
Construction Industries
$ 6,003
$ 903
$ (60)
$ 44
$ 36
$ 6,926
$ 923
15 %
Resource Industries
2,980
459
(67)
7
(26)
3,353
373
13 %
Power & Energy
7,649
1,380
166
64
141
9,400
1,751
23 %
All Other Segment
98
3
1
—
(3)
99
1
1 %
Corporate Items and Eliminations
(1,398)
(37)
(2)
9
(148)
(1,576)
(178)
Machinery, Power & Energy
15,332
2,708
38
124
—
18,202
2,870
19 %
Financial Products Segment
1,024
—
—
—
71
1,095
71
7 %
Corporate Items and Eliminations
(141)
—
—
—
(23)
(164)
(23)
Financial Products Revenues
883
—
—
—
48
931
48
5 %
Consolidated Sales and Revenues
$ 16,215
$ 2,708
$ 38
$ 124
$ 48
$ 19,133
$ 2,918
18 %
Sales and Revenues by Geographic Region
North America
Latin America
EAME
Asia/Pacific
External Sales
and Revenues
Inter-Segment
Total Sales
and Revenues
(Millions of dollars)
$
% Chg
$
% Chg
$
% Chg
$
% Chg
$
% Chg
$
% Chg
$
% Chg
Fourth Quarter 2025
Construction Industries
$ 3,879
23 %
$ 660
6 %
$ 1,326
18 %
$ 981
(7 %)
$ 6,846
15 %
$ 80
82 %
$ 6,926
15 %
Resource Industries
1,280
32 %
647
12 %
610
34 %
747
(15 %)
3,284
14 %
69
(27 %)
3,353
13 %
Power & Energy
4,595
30 %
563
21 %
1,834
16 %
1,134
22 %
8,126
25 %
1,274
12 %
9,400
23 %
All Other Segment
7
— %
—
— %
2
100 %
3
— %
12
50 %
87
(3 %)
99
1 %
Corporate Items and Eliminations
(61)
2
(3)
(4)
(66)
(1,510)
(1,576)
Machinery, Power & Energy
9,700
27 %
1,872
12 %
3,769
19 %
2,861
— %
18,202
19 %
—
— %
18,202
19 %
Financial Products Segment
734
8 %
120
17 %
133
4 %
108
(4 %)
1,095
7 %
—
— %
1,095
7 %
Corporate Items and Eliminations
(95)
(25)
(26)
(18)
(164)
—
(164)
Financial Products Revenues
639
6 %
95
16 %
107
1 %
90
(2 %)
931
5 %
—
— %
931
5 %
Consolidated Sales and Revenues
$ 10,339
26 %
$ 1,967
12 %
$ 3,876
19 %
$ 2,951
— %
$ 19,133
18 %
$ —
— %
$ 19,133
18 %
Fourth Quarter 2024
Construction Industries
$ 3,157
$ 623
$ 1,122
$ 1,057
$ 5,959
$ 44
$ 6,003
Resource Industries
967
580
455
883
2,885
95
2,980
Power & Energy
3,532
467
1,586
931
6,516
1,133
7,649
All Other Segment
7
—
1
—
8
90
98
Corporate Items and Eliminations
(30)
—
(2)
(4)
(36)
(1,362)
(1,398)
Machinery, Power & Energy
7,633
1,670
3,162
2,867
15,332
—
15,332
Financial Products Segment
680
103
128
113
1,024
—
1,024
Corporate Items and Eliminations
(77)
(21)
(22)
(21)
(141)
—
(141)
Financial Products Revenues
603
82
106
92
883
—
883
Consolidated Sales and Revenues
$ 8,236
$ 1,752
$ 3,268
$ 2,959
$ 16,215
$ —
$ 16,215
Consolidated Operating Profit
Consolidated Operating Profit Comparison
Fourth Quarter 2025 vs. Fourth Quarter 2024
To access this chart, go to https://investors.caterpillar.com/financials/quarterly-results/default.aspx for the downloadable version of Caterpillar fourth-quarter 2025 earnings.
The chart above graphically illustrates reasons for the change in consolidated operating profit between the fourth quarter of 2024 (at left) and the fourth quarter of 2025 (at right). Caterpillar management utilizes these charts internally to visually communicate with the company's board of directors and employees. The bar titled Other includes consolidating adjustments and Machinery, Power & Energy's other operating (income) expenses.
Operating profit for the fourth quarter of 2025 was $2.660 billion, a decrease of $264 million, or 9%, compared with $2.924 billion in the fourth quarter of 2024. The decrease was primarily due to unfavorable manufacturing costs of $1.030 billion and higher restructuring costs of $282 million, partially offset by the profit impact of higher sales volume of $1.072 billion. Unfavorable manufacturing costs largely reflected the impact of higher tariffs. Higher restructuring costs were mainly related to write-downs in the value of inventory in the Rail division.
Operating profit margin was 13.9% for the fourth quarter of 2025, compared with 18.0% for the fourth quarter of 2024. Adjusted operating profit margin was 15.6% for the fourth quarter of 2025, compared with 18.3% for the fourth quarter of 2024.
Profit (Loss) by Segment
(Millions of dollars)
Fourth Quarter
2025
Fourth Quarter
2024
$
Change
%
Change
Construction Industries
$ 1,030
$ 1,174
$ (144)
(12 %)
Resource Industries
360
471
(111)
(24 %)
Power & Energy
1,841
1,477
364
25 %
All Other Segment
17
11
6
55 %
Corporate Items and Eliminations
(676)
(198)
(478)
Machinery, Power & Energy
2,572
2,935
(363)
(12 %)
Financial Products Segment
262
166
96
58 %
Corporate Items and Eliminations
(14)
(29)
15
Financial Products
248
137
111
81 %
Consolidating Adjustments
(160)
(148)
(12)
Consolidated Operating Profit
$ 2,660
$ 2,924
$ (264)
(9 %)
Other Profit/Loss and Tax Items
Other income (expense) in the fourth quarter of 2025 was income of $493 million, compared with income of $426 million in the fourth quarter of 2024. The change was primarily driven by higher mark-to-market gains for remeasurement of pension and OPEB plans (please see a reconciliation of GAAP to non-GAAP financial measures in the appendix on page 13 to 15) and favorable impacts from total return swap contracts, partially offset by unfavorable foreign currency impacts.The effective tax rate for the fourth quarter of 2025 was 23.5% compared to 14.3% for the fourth quarter of 2024. Excluding the discrete items discussed below, the global annual effective tax rate was 24.1% compared with 22.2% for 2024. The increase from 2024 was primarily due to changes in U.S. tax incentives.
The company recorded an $8 million charge in the fourth quarter of 2025 compared to a $33 million benefit in the fourth quarter of 2024 for the change in the estimated global annual effective tax rate through the first nine months. In addition, a discrete tax benefit of $22 million was recorded in the fourth quarter of 2025, compared with an $8 million benefit in the fourth quarter of 2024, for the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S. GAAP compensation expense. The company also recorded a tax charge of $68 million related to $294 million of mark-to-market gains for remeasurement of pension and OPEB plans in the fourth quarter of 2025, compared to a tax charge of $43 million related to $154 million of mark-to-market gains in the fourth quarter of 2024. In the fourth quarter of 2024, the company recorded a discrete tax benefit of $224 million for a tax law change related to currency translation.
Please see a reconciliation of GAAP to non-GAAP financial measures in the appendix on pages 13 to 15.
CONSTRUCTION INDUSTRIES
(Millions of dollars)
Segment Sales
Fourth
Quarter 2024
Sales
Volume
Price
Realization
Currency
Inter-
Segment
Fourth
Quarter 2025
$
Change
%
Change
Total Sales
$ 6,003
$ 903
$ (60)
$ 44
$ 36
$ 6,926
$ 923
15 %
Sales by Geographic Region
Fourth
Quarter 2025
Fourth
Quarter 2024
$
Change
%
Change
North America
$ 3,879
$ 3,157
$ 722
23 %
Latin America
660
623
37
6 %
EAME
1,326
1,122
204
18 %
Asia/Pacific
981
1,057
(76)
(7 %)
External Sales
6,846
5,959
887
15 %
Inter-segment
80
44
36
82 %
Total Sales
$ 6,926
$ 6,003
$ 923
15 %
Segment Profit
Fourth
Quarter 2025
Fourth
Quarter 2024
Change
%
Change
Segment Profit
$ 1,030
$ 1,174
$ (144)
(12 %)
Segment Profit Margin
14.9 %
19.6 %
(4.7 pts)
Construction Industries' total sales were $6.926 billion in the fourth quarter of 2025, an increase of $923 million, or 15%, compared with $6.003 billion in the fourth quarter of 2024. The increase was primarily due to higher sales volume. The increase in sales volume was mainly driven by higher sales of equipment to end users and by the impact from changes in dealer inventories. Dealer inventory decreased less during the fourth quarter of 2025 than during the fourth quarter of 2024.
In North America, sales increased due to higher sales volume, partially offset by unfavorable price realization. Higher sales volume was mainly driven by higher sales of equipment to end users.Sales increased in Latin America primarily due to higher sales volume and favorable currency impacts, primarily related to the Brazilian real. Higher sales volume was mainly driven by the impact from changes in dealer inventories. Dealer inventory increased during the fourth quarter of 2025, compared with a decrease during the fourth quarter of 2024.In EAME, sales increased mainly due to higher sales volume and favorable currency impacts, primarily related to the euro. Higher sales volume was mainly due to the impact from changes in dealer inventories. Dealer inventory decreased less during the fourth quarter of 2025 than during the fourth quarter of 2024.Sales decreased in Asia/Pacific primarily due to lower sales volume, partially offset by favorable price realization. Lower sales volume was mainly driven by the impact from changes in dealer inventories. Dealer inventory decreased more during the fourth quarter of 2025 than during the fourth quarter of 2024.
Construction Industries' segment profit was $1.030 billion in the fourth quarter of 2025, a decrease of $144 million, or 12%, compared with $1.174 billion in the fourth quarter of 2024. The decrease was primarily due to unfavorable manufacturing costs of $420 million and unfavorable price realization of $60 million, partially offset by the profit impact of higher sales volume of $322 million. Unfavorable manufacturing costs largely reflected the impact of higher tariffs.
RESOURCE INDUSTRIES
(Millions of dollars)
Segment Sales
Fourth
Quarter 2024
Sales
Volume
Price
Realization
Currency
Inter-
Segment
Fourth
Quarter 2025
$
Change
%
Change
Total Sales
$ 2,980
$ 459
$ (67)
$ 7
$ (26)
$ 3,353
$ 373
13 %
Sales by Geographic Region
Fourth
Quarter 2025
Fourth
Quarter 2024
$
Change
%
Change
North America
$ 1,280
$ 967
$ 313
32 %
Latin America
647
580
67
12 %
EAME
610
455
155
34 %
Asia/Pacific
747
883
(136)
(15 %)
External Sales
3,284
2,885
399
14 %
Inter-segment
69
95
(26)
(27 %)
Total Sales
$ 3,353
$ 2,980
$ 373
13 %
Segment Profit
Fourth
Quarter 2025
Fourth
Quarter 2024
Change
%
Change
Segment Profit
$ 360
$ 471
$ (111)
(24 %)
Segment Profit Margin
10.7 %
15.8 %
(5.1 pts)
Resource Industries' total sales were $3.353 billion in the fourth quarter of 2025, an increase of $373 million, or 13%, compared with $2.980 billion in the fourth quarter of 2024. The increase was primarily due to higher sales volume of $459 million, partially offset by unfavorable price realization of $67 million. The increase in sales volume was mainly driven by the impact from changes in dealer inventories. Dealer inventory increased during the fourth quarter of 2025, compared with a decrease during the fourth quarter of 2024.
Resource Industries' segment profit was $360 million in the fourth quarter of 2025, a decrease of $111 million, or 24%, compared with $471 million in the fourth quarter of 2024. The decrease was primarily due to unfavorable manufacturing costs of $204 million and unfavorable price realization of $67 million, partially offset by the profit impact of higher sales volume of $169 million. Unfavorable manufacturing costs largely reflected the impact of higher tariffs.
POWER & ENERGY
(Millions of dollars)
Segment Sales
Fourth
Quarter 2024
Sales
Volume
Price
Realization
Currency
Inter-
Segment
Fourth
Quarter 2025
$
Change
%
Change
Total Sales
$ 7,649
$ 1,380
$ 166
$ 64
$ 141
$ 9,400
$ 1,751
23 %
Sales by Application
Fourth
Quarter 2025
Fourth
Quarter 2024
$
Change
%
Change
Oil and Gas
$ 2,398
$ 1,927
$ 471
24 %
Power Generation
3,238
2,242
996
44 %
Industrial
967
928
39
4 %
Transportation
1,523
1,419
104
7 %
External Sales
8,126
6,516
1,610
25 %
Inter-segment
1,274
1,133
141
12 %
Total Sales
$ 9,400
$ 7,649
$ 1,751
23 %
Segment Profit
Fourth
Quarter 2025
Fourth
Quarter 2024
Change
%
Change
Segment Profit
$ 1,841
$ 1,477
$ 364
25 %
Segment Profit Margin
19.6 %
19.3 %
0.3 pts
Power & Energy's total sales were $9.400 billion in the fourth quarter of 2025, an increase of $1.751 billion, or 23%, compared with $7.649 billion in the fourth quarter of 2024. The increase was primarily due to higher sales volume of $1.380 billion and favorable price realization of $166 million.
Oil and Gas – Sales increased for turbines and turbine-related services.Power Generation – Sales increased in large reciprocating engines, primarily data center applications. Turbines and turbine-related services increased as well.Industrial – Sales increased primarily in EAME.Transportation – Sales increased in rail services.
Power & Energy's segment profit was $1.841 billion in the fourth quarter of 2025, an increase of $364 million, or 25%, compared with $1.477 billion in the fourth quarter of 2024. The increase was mainly due to the profit impact of higher sales volume of $666 million and favorable price realization of $166 million, partially offset by unfavorable manufacturing costs of $438 million. Unfavorable manufacturing costs primarily reflected the impact of higher tariffs.
FINANCIAL PRODUCTS SEGMENT
(Millions of dollars)
Revenues by Geographic Region
Fourth
Quarter 2025
Fourth
Quarter 2024
$
Change
%
Change
North America
$ 734
$ 680
$ 54
8 %
Latin America
120
103
17
17 %
EAME
133
128
5
4 %
Asia/Pacific
108
113
(5)
(4 %)
Total Revenues
$ 1,095
$ 1,024
$ 71
7 %
Segment Profit
Fourth
Quarter 2025
Fourth
Quarter 2024
Change
%
Change
Segment Profit
$ 262
$ 166
$ 96
58 %
Financial Products' segment revenues were $1.095 billion in the fourth quarter of 2025, an increase of $71 million, or 7%, compared with $1.024 billion in the fourth quarter of 2024. The increase was primarily due to a favorable impact from higher average earning assets of $89 million across all regions, partially offset by an unfavorable impact from lower average financing rates of $18 million across all regions except Latin America.
Financial Products' segment profit was $262 million in the fourth quarter of 2025, an increase of $96 million, or 58%, compared with $166 million in the fourth quarter of 2024. The increase was mainly due to a favorable impact from higher margins at Insurance Services of $37 million, a favorable impact from higher average earning assets of $34 million and lower provision for credit losses at Cat Financial of $19 million.
At the end of 2025, past dues at Cat Financial were 1.37%, compared with 1.56% at the end of 2024. Write-offs, net of recoveries, were $101 million for 2025, compared with $115 million for 2024. As of December 31, 2025, Cat Financial's allowance for credit losses totaled $284 million, or 0.86% of finance receivables, compared with $267 million, or 0.91% of finance receivables, at December 31, 2024.
Corporate Items and Eliminations
Expense for corporate items and eliminations was $690 million in the fourth quarter of 2025, an increase of $463 million from the fourth quarter of 2024, primarily driven by higher restructuring costs and increased expenses due to timing differences. Higher restructuring costs were mainly related to write-downs in the value of inventory in the Rail division.
Notes
i. Glossary of terms is included on the Caterpillar website at https://investors.caterpillar.com/overview/default.aspx.
ii. Sales of equipment to end users is demonstrated by the company's Rolling 3 Month Retail Sales Statistics filed in a Form 8-K on Thursday, Jan. 29, 2026.
iii. Information on non-GAAP financial measures is included in the appendix on pages 13 to 15.
iv. Some amounts within this report are rounded to the millions or billions and may not add.
v. Caterpillar will conduct a teleconference and live webcast, with a slide presentation, beginning at 7:30 a.m. Central Time on Thursday, Jan. 29, 2026, to discuss its 2025 fourth-quarter and full-year results. The accompanying slides will be available before the webcast on the Caterpillar website at https://investors.caterpillar.com/events-presentations/default.aspx.
About Caterpillar
For more than a century, Caterpillar has helped build a better, more sustainable world. With 2025 sales and revenues of $67.6 billion, Caterpillar Inc. is shaping the future as the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. Backed by one of the largest independent global dealer networks and financing services through Cat Financial, the company's primary business segments: Power & Energy, Construction Industries and Resource Industries are solving customers' toughest challenges through commercial excellence and advanced technology, driven by a highly skilled, dedicated global team. Learn more at www.caterpillar.com.
Caterpillar's latest financial results are also available online:
https://investors.caterpillar.com/overview/default.aspx
https://investors.caterpillar.com/financials/quarterly-results/default.aspx (live broadcast/replays of quarterly conference call)
Forward-Looking Statements
Certain statements in this press release relate to future events and expectations and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "believe," "estimate," "will be," "will," "would," "expect," "anticipate," "plan," "forecast," "target," "guide," "project," "intend," "could," "should" or other similar words or expressions often identify forward-looking statements. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding our outlook, projections, forecasts or trend descriptions. These statements do not guarantee future performance and speak only as of the date they are made, and we do not undertake to update our forward-looking statements.
Caterpillar's actual results may differ materially from those described or implied in our forward-looking statements based on a number of factors, including, but not limited to: (i) global and regional economic conditions and economic conditions in the industries we serve; (ii) commodity price changes, material price increases, fluctuations in demand for our products or significant shortages of material; (iii) government monetary or fiscal policies; (iv) political and economic risks, commercial instability and events beyond our control in the countries in which we operate; (v) international trade policies and their impact on demand for our products and our competitive position, including the imposition of new tariffs or changes in existing tariff rates; (vi) our ability to develop, produce and market quality products that meet our customers' needs; (vii) the impact of the highly competitive environment in which we operate on our sales and pricing; (viii) information technology security threats and computer crime; (ix) inventory management decisions and sourcing practices of our dealers and our OEM customers; (x) a failure to realize, or a delay in realizing, all of the anticipated benefits of our acquisitions, joint ventures or divestitures; (xi) union disputes or other employee relations issues; (xii) adverse effects of unexpected events; (xiii) disruptions or volatility in global financial markets limiting our sources of liquidity or the liquidity of our customers, dealers and suppliers; (xiv) failure to maintain our credit ratings and potential resulting increases to our cost of borrowing and adverse effects on our cost of funds, liquidity, competitive position and access to capital markets; (xv) our Financial Products segment's risks associated with the financial services industry; (xvi) changes in interest rates or market liquidity conditions; (xvii) an increase in delinquencies, repossessions or net losses of Cat Financial's customers; (xviii) currency fluctuations; (xix) our or Cat Financial's compliance with financial and other restrictive covenants in debt agreements; (xx) increased pension plan funding obligations; (xxi) alleged or actual violations of trade or anti-corruption laws and regulations; (xxii) additional tax expense or exposure, including the impact of U.S. tax reform; (xxiii) significant legal proceedings, claims, lawsuits or government investigations; (xxiv) new regulations or changes in financial services regulations; (xxv) compliance with environmental laws and regulations; (xxvi) catastrophic events, including global pandemics such as the COVID-19 pandemic; and (xxvii) other factors described in more detail in Caterpillar's Forms 10-Q, 10-K and other filings with the Securities and Exchange Commission.
APPENDIX
NON-GAAP FINANCIAL MEASURES
The following definitions are provided for the non-GAAP financial measures. These non-GAAP financial measures have no standardized meaning prescribed by U.S. GAAP and therefore are unlikely to be comparable to the calculation of similar measures for other companies. Management does not intend these items to be considered in isolation or as a substitute for the related GAAP measures.
The company believes it is important to separately quantify the profit impact of four significant items in order for the company's results to be meaningful to readers. These items consist of (i) other restructuring income/costs, (ii) pension and OPEB mark-to-market gains/losses resulting from plan remeasurements, (iii) restructuring income/costs related to the divestitures of certain non-U.S. entities in 2024 and (iv) a discrete tax benefit for a tax law change related to currency translation in 2024. The company does not consider these items indicative of earnings from ongoing business activities and believes the non-GAAP measure provides investors with useful perspective on underlying business results and trends and aids with assessing the company's period-over-period results.
Reconciliations of adjusted results to the most directly comparable GAAP measure are as follows:
(Dollars in millions except per share data)
Operating
Profit
Operating
Profit
Margin
Profit
Before
Taxes
Provision
(Benefit) for
Income
Taxes
Profit
Profit per
Share
Three Months Ended December 31, 2025 - U.S. GAAP
$ 2,660
13.9 %
$ 3,026
$ 712
$ 2,402
$ 5.12
Other restructuring (income) costs
319
1.7 %
319
73
246
0.52
Pension/OPEB mark-to-market (gains) losses
—
— %
(294)
(68)
(226)
(0.48)
Three Months Ended December 31, 2025 - Adjusted
$ 2,979
15.6 %
$ 3,051
$ 717
$ 2,422
$ 5.16
Three Months Ended December 31, 2024 - U.S. GAAP
$ 2,924
18.0 %
$ 3,243
$ 463
$ 2,791
$ 5.78
Other restructuring (income) costs
37
0.3 %
37
10
27
0.05
Pension/OPEB mark-to-market (gains) losses
—
— %
(154)
(43)
(111)
(0.23)
Tax law change related to currency translation
—
— %
—
224
(224)
(0.46)
Three Months Ended December 31, 2024 - Adjusted
$ 2,961
18.3 %
$ 3,126
$ 654
$ 2,483
$ 5.14
Twelve Months Ended December 31, 2025 - U.S. GAAP
$ 11,151
16.5 %
$ 11,541
$ 2,768
$ 8,884
$ 18.81
Other restructuring (income) costs
444
0.7 %
445
102
346
0.73
Pension/OPEB mark-to-market (gains) losses
—
— %
(294)
(68)
(226)
(0.48)
Twelve Months Ended December 31, 2025 - Adjusted
$ 11,595
17.2 %
$ 11,692
$ 2,802
$ 9,004
$ 19.06
Twelve Months Ended December 31, 2024 - U.S. GAAP
$ 13,072
20.2 %
$ 13,373
$ 2,629
$ 10,792
$ 22.05
Restructuring (income) costs - divestitures of certain non-U.S. entities
164
0.2 %
164
54
110
0.22
Other restructuring (income) costs
195
0.3 %
195
46
149
0.32
Pension/OPEB mark-to-market (gains) losses
—
— %
(154)
(43)
(111)
(0.23)
Tax law change related to currency translation
—
— %
—
224
(224)
(0.46)
Twelve Months Ended December 31, 2024 - Adjusted
$ 13,431
20.7 %
$ 13,578
$ 2,910
$ 10,716
$ 21.90
The company believes it is important to separately disclose the annual effective tax rate, excluding discrete items for the results to be meaningful to readers. The annual effective tax rate is discussed using non-GAAP financial measures that exclude the effects of amounts associated with discrete items recorded fully in the quarter they occur. For the three and twelve months ended December 31, 2025, and 2024, these items consist of (i) pension and OPEB mark-to-market gains/losses resulting from plan remeasurements, (ii) the impact of changes in estimates related to prior years, (iii) the change in the annual effective tax rate, (iv) a settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S. GAAP compensation expense, (v) a discrete tax benefit for a tax law change related to currency translation in 2024 and (vi) restructuring income/costs related to the divestitures of certain non-U.S. entities in 2024. The company believes the non-GAAP measures will provide investors with useful perspective on underlying business results and trends and aids with assessing the company's period-over-period results.
A reconciliation of the effective tax rate to annual effective tax rate, excluding discrete items is below:
(Dollars in millions)
Profit Before
Taxes
Provision
(Benefit) for
Income Taxes
Effective Tax
Rate
Three Months Ended December 31, 2025 - U.S. GAAP
$ 3,026
$ 712
23.5 %
Pension/OPEB mark-to-market (gains) losses
(294)
(68)
Change in annual effective tax rate
—
(8)
Excess stock-based compensation
—
22
Annual effective tax rate, excluding discrete items
$ 2,732
$ 658
24.1 %
Other restructuring (income) costs
319
73
Change in annual effective tax rate
—
8
Excess stock-based compensation
—
(22)
Three Months Ended December 31, 2025 - Adjusted
$ 3,051
$ 717
Three Months Ended December 31, 2024 - U.S. GAAP
$ 3,243
$ 463
14.3 %
Pension/OPEB mark-to-market (gains) losses
(154)
(43)
Tax law change related to currency translation
—
224
Change in annual effective tax rate
—
33
Excess stock-based compensation
—
8
Annual effective tax rate, excluding discrete items
$ 3,089
$ 685
22.2 %
Change in annual effective tax rate
—
(33)
Excess stock-based compensation
—
(8)
Other restructuring (income) costs
37
10
Three Months Ended December 31, 2024 - Adjusted
$ 3,126
$ 654
Twelve Months Ended December 31, 2025 - U.S. GAAP
$ 11,541
$ 2,768
24.0 %
Pension/OPEB mark-to-market (gains) losses
(294)
(68)
Changes in estimates related to prior years
—
(41)
Excess stock-based compensation
—
50
Annual effective tax rate, excluding discrete items
$ 11,247
$ 2,709
24.1 %
Other restructuring (income) costs
445
102
Changes in estimates related to prior years
—
41
Excess stock-based compensation
—
(50)
Twelve Months Ended December 31, 2025 - Adjusted
$ 11,692
$ 2,802
Twelve Months Ended December 31, 2024 - U.S. GAAP
$ 13,373
$ 2,629
19.7 %
Restructuring (income) costs - divestitures of certain non-U.S. entities
164
54
Pension/OPEB mark-to-market (gains) losses
(154)
(43)
Tax law change related to currency translation
—
224
Changes in estimates related to prior years
—
47
Excess stock-based compensation
—
57
Annual effective tax rate, excluding discrete items
$ 13,383
$ 2,968
22.2 %
Changes in estimates related to prior years
—
(47)
Excess stock-based compensation
—
(57)
Other restructuring (income) costs
195
46
Twelve Months Ended December 31, 2024 - Adjusted
$ 13,578
$ 2,910
Supplemental Consolidating Data
The company is providing supplemental consolidating data for the purpose of additional analysis. The data has been grouped as follows:
Consolidated – Caterpillar Inc. and its subsidiaries.
Machinery, Power & Energy (MP&E) – The company defines MP&E as it is presented in the supplemental data as Caterpillar Inc. and its subsidiaries, excluding Financial Products. MP&E's information relates to the design, manufacturing and marketing of its products.
Financial Products – The company defines Financial Products as it is presented in the supplemental data as its finance and insurance subsidiaries, primarily Caterpillar Financial Services Corporation (Cat Financial) and Caterpillar Insurance Holdings Inc. (Insurance Services). Financial Products' information relates to the financing to customers and dealers for the purchase and lease of Caterpillar and other equipment.
Consolidating Adjustments – Eliminations of transactions between MP&E and Financial Products.
The nature of the MP&E and Financial Products businesses is different, especially with regard to the financial position and cash flow items. Caterpillar management utilizes this presentation internally to highlight these differences. The company believes this presentation will assist readers in understanding its business.
Pages 16 to 26 reconcile MP&E and Financial Products to Caterpillar Inc. consolidated financial information.
Caterpillar Inc.
Condensed Consolidated Statement of Results of Operations
(Unaudited)
(Dollars in millions except per share data)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2025
2024
2025
2024
Sales and revenues:
Sales of Machinery, Power & Energy
$ 18,202
$ 15,332
$ 63,980
$ 61,363
Revenues of Financial Products
931
883
3,609
3,446
Total sales and revenues
19,133
16,215
67,589
64,809
Operating costs:
Cost of goods sold
13,307
10,321
44,752
40,199
Selling, general and administrative expenses
1,876
1,769
6,985
6,667
Research and development expenses
562
519
2,148
2,107
Interest expense of Financial Products
351
338
1,359
1,286
Other operating (income) expenses
377
344
1,194
1,478
Total operating costs
16,473
13,291
56,438
51,737
Operating profit
2,660
2,924
11,151
13,072
Interest expense excluding Financial Products
127
107
502
512
Other income (expense)
493
426
892
813
Consolidated profit before taxes
3,026
3,243
11,541
13,373
Provision (benefit) for income taxes
712
463
2,768
2,629
Profit of consolidated companies
2,314
2,780
8,773
10,744
Equity in profit (loss) of unconsolidated affiliated companies
87
10
109
44
Profit of consolidated and affiliated companies
2,401
2,790
8,882
10,788
Less: Profit (loss) attributable to noncontrolling interests
(1)
(1)
(2)
(4)
Profit 1
$ 2,402
$ 2,791
$ 8,884
$ 10,792
Profit per common share
$ 5.15
$ 5.81
$ 18.90
$ 22.17
Profit per common share — diluted 2
$ 5.12
$ 5.78
$ 18.81
$ 22.05
Weighted-average common shares outstanding (millions)
– Basic
466.5
480.0
470.0
486.7
– Diluted 2
469.0
482.6
472.3
489.4
1
Profit attributable to common shareholders.
2
Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.
Caterpillar Inc.
Condensed Consolidated Statement of Financial Position
(Unaudited)
(Millions of dollars)
December 31,
2025
December 31,
2024
Assets
Current assets:
Cash and cash equivalents
$ 9,980
$ 6,889
Receivables – trade and other
10,920
9,282
Receivables – finance
10,649
9,565
Prepaid expenses and other current assets
2,801
3,119
Inventories
18,135
16,827
Total current assets
52,485
45,682
Property, plant and equipment – net
15,140
13,361
Long-term receivables – trade and other
2,142
1,225
Long-term receivables – finance
14,272
13,242
Noncurrent deferred and refundable income taxes
2,882
3,312
Intangible assets
241
399
Goodwill
5,321
5,241
Other assets
6,102
5,302
Total assets
$ 98,585
$ 87,764
Liabilities
Current liabilities:
Short-term borrowings:
-- Financial Products
$ 5,514
$ 4,393
Accounts payable
8,968
7,675
Accrued expenses
5,587
5,243
Accrued wages, salaries and employee benefits
2,554
2,391
Customer advances
3,314
2,322
Dividends payable
703
674
Other current liabilities
2,798
2,909
Long-term debt due within one year:
-- Machinery, Power & Energy
35
46
-- Financial Products
7,085
6,619
Total current liabilities
36,558
32,272
Long-term debt due after one year:
-- Machinery, Power & Energy
10,678
8,564
-- Financial Products
20,018
18,787
Liability for postemployment benefits
3,838
3,757
Other liabilities
6,175
4,890
Total liabilities
77,267
68,270
Shareholders' equity
Common stock
7,181
6,941
Treasury stock
(49,539)
(44,331)
Profit employed in the business
65,448
59,352
Accumulated other comprehensive income (loss)
(1,772)
(2,471)
Noncontrolling interests
—
3
Total shareholders' equity
21,318
19,494
Total liabilities and shareholders' equity
$ 98,585
$ 87,764
Caterpillar Inc.
Condensed Consolidated Statement of Cash Flow
(Unaudited)
(Millions of dollars)
Twelve Months Ended
December 31,
2025
2024
Cash flow from operating activities:
Profit of consolidated and affiliated companies
$ 8,882
$ 10,788
Adjustments to reconcile profit to net cash provided by operating activities:
Depreciation and amortization
2,262
2,153
Actuarial (gain) loss on pension and postretirement benefits
(294)
(154)
Provision (benefit) for deferred income taxes
465
(621)
(Gain) loss on divestiture
30
164
Other
742
564
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables – trade and other
(2,138)
(160)
Inventories
(1,477)
(414)
Accounts payable
1,179
(282)
Accrued expenses
438
191
Accrued wages, salaries and employee benefits
187
(363)
Customer advances
1,933
370
Other assets – net
(176)
(97)
Other liabilities – net
(294)
(104)
Net cash provided by (used for) operating activities
11,739
12,035
Cash flow from investing activities:
Capital expenditures – excluding equipment leased to others
(2,821)
(1,988)
Expenditures for equipment leased to others
(1,465)
(1,227)
Proceeds from disposals of leased assets and property, plant and equipment
708
722
Additions to finance receivables
(15,329)
(15,409)
Collections of finance receivables
13,515
13,608
Proceeds from sale of finance receivables
71
83
Investments and acquisitions (net of cash acquired)
(47)
(34)
Proceeds from sale of businesses and investments (net of cash sold)
22
(61)
Proceeds from maturities and sale of securities
2,494
3,155
Investments in securities
(1,930)
(1,495)
Other – net
75
193
Net cash provided by (used for) investing activities
(4,707)
(2,453)
Cash flow from financing activities:
Dividends paid
(2,749)
(2,646)
Common stock issued, and other stock compensation transactions, net
(16)
20
Payments to purchase common stock
(5,190)
(7,697)
Excise tax paid on purchases of common stock
(73)
(40)
Proceeds from debt issued (original maturities greater than three months)
11,105
10,283
Payments on debt (original maturities greater than three months)
(8,081)
(9,316)
Short-term borrowings – net (original maturities three months or less)
1,106
(168)
Other – net
(1)
(1)
Net cash provided by (used for) financing activities
(3,899)
(9,565)
Effect of exchange rate changes on cash
(43)
(106)
Increase (decrease) in cash, cash equivalents and restricted cash
3,090
(89)
Cash, cash equivalents and restricted cash at beginning of period
6,896
6,985
Cash, cash equivalents and restricted cash at end of period
$ 9,986
$ 6,896
Cash equivalents primarily represent short-term, highly liquid investments with original maturities of generally three months or less.
Caterpillar Inc.
Supplemental Data for Results of Operations
For the Three Months Ended December 31, 2025
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Consolidated
Machinery, Power
& Energy
Financial
Products
Consolidating
Adjustments
Sales and revenues:
Sales of Machinery, Power & Energy
$ 18,202
$ 18,202
$ —
$ —
Revenues of Financial Products
931
—
1,138
(207)
1
Total sales and revenues
19,133
18,202
1,138
(207)
Operating costs:
Cost of goods sold
13,307
13,310
—
(3)
2
Selling, general and administrative expenses
1,876
1,670
219
(13)
2
Research and development expenses
562
562
—
—
Interest expense of Financial Products
351
—
363
(12)
2
Other operating (income) expenses
377
88
308
(19)
2
Total operating costs
16,473
15,630
890
(47)
Operating profit
2,660
2,572
248
(160)
Interest expense excluding Financial Products
127
131
—
(4)
3
Other income (expense)
493
806
20
(333)
4
Consolidated profit before taxes
3,026
3,247
268
(489)
Provision (benefit) for income taxes
712
647
65
—
Profit of consolidated companies
2,314
2,600
203
(489)
Equity in profit (loss) of unconsolidated affiliated companies
87
87
—
—
Profit of consolidated and affiliated companies
2,401
2,687
203
(489)
Less: Profit (loss) attributable to noncontrolling interests
(1)
(1)
—
—
Profit5
$ 2,402
$ 2,688
$ 203
$ (489)
1
Elimination of Financial Products' revenues earned from MP&E.
2
Elimination of net expenses recorded between MP&E and Financial Products.
3
Elimination of interest expense recorded between Financial Products and MP&E.
4
Elimination of discount recorded by MP&E on receivables sold to Financial Products and of interest earned between MP&E and Financial Products as well as dividends paid by Financial Products to MP&E.
5
Profit attributable to common shareholders.
Caterpillar Inc.
Supplemental Data for Results of Operations
For the Three Months Ended December 31, 2024
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Consolidated
Machinery, Power
& Energy
Financial
Products
Consolidating
Adjustments
Sales and revenues:
Sales of Machinery, Power & Energy
$ 15,332
$ 15,332
$ —
$ —
Revenues of Financial Products
883
—
1,062
(179)
1
Total sales and revenues
16,215
15,332
1,062
(179)
Operating costs:
Cost of goods sold
10,321
10,323
—
(2)
2
Selling, general and administrative expenses
1,769
1,535
226
8
2
Research and development expenses
519
519
—
—
Interest expense of Financial Products
338
—
338
—
Other operating (income) expenses
344
20
361
(37)
2
Total operating costs
13,291
12,397
925
(31)
Operating profit
2,924
2,935
137
(148)
Interest expense excluding Financial Products
107
111
—
(4)
3
Other income (expense)
426
891
16
(481)
4
Consolidated profit before taxes
3,243
3,715
153
(625)
Provision (benefit) for income taxes
463
680
(217)
—
Profit of consolidated companies
2,780
3,035
370
(625)
Equity in profit (loss) of unconsolidated affiliated companies
10
10
—
—
Profit of consolidated and affiliated companies
2,790
3,045
370
(625)
Less: Profit (loss) attributable to noncontrolling interests
(1)
(1)
—
—
Profit5
$ 2,791
$ 3,046
$ 370
$ (625)
1
Elimination of Financial Products' revenues earned from MP&E.
2
Elimination of net expenses recorded between MP&E paid to Financial Products.
3
Elimination of interest expense recorded between Financial Products and MP&E.
4
Elimination of discount recorded by MP&E on receivables sold to Financial Products and of interest earned between MP&E and Financial Products as well as dividends paid by Financial Products to MP&E.
5
Profit attributable to common shareholders.
Caterpillar Inc.
Supplemental Data for Results of Operations
For the Twelve Months Ended December 31, 2025
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Consolidated
Machinery, Power
& Energy
Financial
Products
Consolidating
Adjustments
Sales and revenues:
Sales of Machinery, Power & Energy
$ 63,980
$ 63,980
$ —
$ —
Revenues of Financial Products
3,609
—
4,382
(773)
1
Total sales and revenues
67,589
63,980
4,382
(773)
Operating costs:
Cost of goods sold
44,752
44,761
—
(9)
2
Selling, general and administrative expenses
6,985
6,183
842
(40)
2
Research and development expenses
2,148
2,148
—
—
Interest expense of Financial Products
1,359
—
1,389
(30)
2
Other operating (income) expenses
1,194
4
1,287
(97)
2
Total operating costs
56,438
53,096
3,518
(176)
Operating profit
11,151
10,884
864
(597)
Interest expense excluding Financial Products
502
516
—
(14)
3
Other income (expense)
892
685
113
94
4
Consolidated profit before taxes
11,541
11,053
977
(489)
Provision (benefit) for income taxes
2,768
2,525
243
—
Profit of consolidated companies
8,773
8,528
734
(489)
Equity in profit (loss) of unconsolidated affiliated companies
109
109
—
—
Profit of consolidated and affiliated companies
8,882
8,637
734
(489)
Less: Profit (loss) attributable to noncontrolling interests
(2)
(3)
1
—
Profit5
$ 8,884
$ 8,640
$ 733
$ (489)
1
Elimination of Financial Products' revenues earned from MP&E.
2
Elimination of net expenses recorded between MP&E and Financial Products.
3
Elimination of interest expense recorded between Financial Products and MP&E.
4
Elimination of discount recorded by MP&E on receivables sold to Financial Products and of interest earned between MP&E and Financial Products as well as dividends paid by Financial Products to MP&E.
5
Profit attributable to common shareholders.
Caterpillar Inc.
Supplemental Data for Results of Operations
For the Twelve Months Ended December 31, 2024
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Consolidated
Machinery, Power
& Energy
Financial
Products
Consolidating
Adjustments
Sales and revenues:
Sales of Machinery, Power & Energy
$ 61,363
$ 61,363
$ —
$ —
Revenues of Financial Products
3,446
—
4,212
(766)
1
Total sales and revenues
64,809
61,363
4,212
(766)
Operating costs:
Cost of goods sold
40,199
40,206
—
(7)
2
Selling, general and administrative expenses
6,667
5,881
786
—
Research and development expenses
2,107
2,107
—
—
Interest expense of Financial Products
1,286
—
1,286
—
Other operating (income) expenses
1,478
71
1,535
(128)
2
Total operating costs
51,737
48,265
3,607
(135)
Operating profit
13,072
13,098
605
(631)
Interest expense excluding Financial Products
512
518
—
(6)
3
Other income (expense)
813
728
85
—
Consolidated profit before taxes
13,373
13,308
690
(625)
Provision (benefit) for income taxes
2,629
2,663
(34)
—
Profit of consolidated companies
10,744
10,645
724
(625)
Equity in profit (loss) of unconsolidated affiliated companies
44
44
—
—
Profit of consolidated and affiliated companies
10,788
10,689
724
(625)
Less: Profit (loss) attributable to noncontrolling interests
(4)
(5)
1
—
Profit 4
$ 10,792
$ 10,694
$ 723
$ (625)
1
Elimination of Financial Products' revenues earned from MP&E.
2
Elimination of net expenses recorded between MP&E and Financial Products.
3
Elimination of interest expense recorded between Financial Products and MP&E.
4
Profit attributable to common shareholders.
Caterpillar Inc.
Supplemental Data for Financial Position
At December 31, 2025
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Consolidated
Machinery,
Power &
Energy
Financial
Products
Consolidating
Adjustments
Assets
Current assets:
Cash and cash equivalents
$ 9,980
$ 9,333
$ 647
$ —
Receivables – trade and other
10,920
3,883
657
6,380
1,2
Receivables – finance
10,649
—
17,325
(6,676)
2
Prepaid expenses and other current assets
2,801
2,448
441
(88)
3
Inventories
18,135
18,135
—
—
Total current assets
52,485
33,799
19,070
(384)
Property, plant and equipment – net
15,140
10,985
4,106
49
4
Long-term receivables – trade and other
2,142
1,982
163
(3)
1,2
Long-term receivables – finance
14,272
—
15,538
(1,266)
2
Noncurrent deferred and refundable income taxes
2,882
3,208
133
(459)
5
Intangible assets
241
241
—
—
Goodwill
5,321
5,321
—
—
Other assets
6,102
4,525
2,651
(1,074)
6
Total assets
$ 98,585
$ 60,061
$ 41,661
$ (3,137)
Liabilities
Current liabilities:
Short-term borrowings
$ 5,514
$ —
$ 5,514
$ —
Accounts payable
8,968
8,988
268
(288)
7,8
Accrued expenses
5,587
4,877
710
—
Accrued wages, salaries and employee benefits
2,554
2,494
60
—
Customer advances
3,314
3,311
3
—
Dividends payable
703
703
—
—
Other current liabilities
2,798
2,259
645
(106)
5,9
Long-term debt due within one year
7,120
35
7,085
—
Total current liabilities
36,558
22,667
14,285
(394)
Long-term debt due after one year
30,696
10,955
21,018
(1,277)
10
Liability for postemployment benefits
3,838
3,837
1
—
Other liabilities
6,175
5,162
1,516
(503)
5
Total liabilities
77,267
42,621
36,820
(2,174)
Shareholders' equity
Common stock
7,181
7,181
905
(905)
11
Treasury stock
(49,539)
(49,539)
—
—
Profit employed in the business
65,448
60,639
4,799
10
11
Accumulated other comprehensive income (loss)
(1,772)
(843)
(929)
—
Noncontrolling interests
—
2
66
(68)
11
Total shareholders' equity
21,318
17,440
4,841
(963)
Total liabilities and shareholders' equity
$ 98,585
$ 60,061
$ 41,661
$ (3,137)
1
Elimination of receivables between MP&E and Financial Products.
2
Reclassification of MP&E's trade receivables purchased by Financial Products and Financial Products' wholesale inventory receivables.
3
Elimination of MP&E's insurance premiums that are prepaid to Financial Products.
4
Reclassification of Financial Products' other assets to property, plant and equipment.
5
Reclassification reflecting required netting of deferred tax assets/liabilities by taxing jurisdiction.
6
Elimination of other intercompany assets and liabilities between MP&E and Financial Products.
7
Elimination of payables between MP&E and Financial Products.
8
Reclassification of Financial Products' payables to customer advances.
9
Elimination of prepaid insurance in Financial Products' other liabilities.
10
Elimination of debt between MP&E and Financial Products.
11
Eliminations associated with MP&E's investments in Financial Products' subsidiaries.
Caterpillar Inc.
Supplemental Data for Financial Position
At December 31, 2024
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Consolidated
Machinery,
Power &
Energy
Financial
Products
Consolidating
Adjustments
Assets
Current assets:
Cash and cash equivalents
$ 6,889
$ 6,165
$ 724
$ —
Receivables – trade and other
9,282
3,463
688
5,131
1,2
Receivables – finance
9,565
—
14,957
(5,392)
2
Prepaid expenses and other current assets
3,119
2,872
401
(154)
3
Inventories
16,827
16,827
—
—
Total current assets
45,682
29,327
16,770
(415)
Property, plant and equipment – net
13,361
9,531
3,830
—
Long-term receivables – trade and other
1,225
500
86
639
1,2
Long-term receivables – finance
13,242
—
14,048
(806)
2
Noncurrent deferred and refundable income taxes
3,312
3,594
118
(400)
4
Intangible assets
399
399
—
—
Goodwill
5,241
5,241
—
—
Other assets
5,302
4,050
2,277
(1,025)
5
Total assets
$ 87,764
$ 52,642
$ 37,129
$ (2,007)
Liabilities
Current liabilities:
Short-term borrowings
$ 4,393
$ —
$ 4,393
$ —
Accounts payable
7,675
7,619
331
(275)
6,7
Accrued expenses
5,243
4,589
654
—
Accrued wages, salaries and employee benefits
2,391
2,335
56
—
Customer advances
2,322
2,305
3
14
7
Dividends payable
674
674
—
—
Other current liabilities
2,909
2,388
696
(175)
4,8
Long-term debt due within one year
6,665
46
6,619
—
Total current liabilities
32,272
19,956
12,752
(436)
Long-term debt due after one year
27,351
8,731
18,787
(167)
9
Liability for postemployment benefits
3,757
3,757
—
—
Other liabilities
4,890
3,977
1,344
(431)
4
Total liabilities
68,270
36,421
32,883
(1,034)
Shareholders' equity
Common stock
6,941
6,941
905
(905)
10
Treasury stock
(44,331)
(44,331)
—
—
Profit employed in the business
59,352
54,787
4,555
10
10
Accumulated other comprehensive income (loss)
(2,471)
(1,182)
(1,289)
—
Noncontrolling interests
3
6
75
(78)
10
Total shareholders' equity
19,494
16,221
4,246
(973)
Total liabilities and shareholders' equity
$ 87,764
$ 52,642
$ 37,129
$ (2,007)
1
Elimination of receivables between MP&E and Financial Products.
2
Reclassification of MP&E's trade receivables purchased by Financial Products and Financial Products' wholesale inventory receivables.
3
Elimination of MP&E's insurance premiums that are prepaid to Financial Products.
4
Reclassification reflecting required netting of deferred tax assets/liabilities by taxing jurisdiction.
5
Elimination of other intercompany assets and liabilities between MP&E and Financial Products.
6
Elimination of payables between MP&E and Financial Products.
7
Reclassification of Financial Products' payables to customer advances.
8
Elimination of prepaid insurance in Financial Products' other liabilities.
9
Elimination of debt between MP&E and Financial Products.
10
Eliminations associated with MP&E's investments in Financial Products' subsidiaries.
Caterpillar Inc.
Supplemental Data for Cash Flow
For the Twelve Months Ended December 31, 2025
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Consolidated
Machinery,
Power & Energy
Financial
Products
Consolidating
Adjustments
Cash flow from operating activities:
Profit of consolidated and affiliated companies
$ 8,882
$ 8,637
$ 734
$ (489)
1,5
Adjustments to reconcile profit to net cash provided by operating activities:
Depreciation and amortization
2,262
1,497
765
—
Actuarial (gain) loss on pension and postretirement benefits
(294)
(294)
—
—
Provision (benefit) for deferred income taxes
465
395
70
—
(Gain) loss on divestiture
30
30
—
—
Other
742
658
(513)
597
2
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables – trade and other
(2,138)
(503)
63
(1,698)
2,3
Inventories
(1,477)
(1,473)
—
(4)
2
Accounts payable
1,179
1,217
(11)
(27)
2
Accrued expenses
438
486
(48)
—
Accrued wages, salaries and employee benefits
187
185
2
—
Customer advances
1,933
1,933
—
—
Other assets – net
(176)
(48)
(28)
(100)
2
Other liabilities – net
(294)
(442)
40
108
2
Net cash provided by (used for) operating activities
11,739
12,278
1,074
(1,613)
Cash flow from investing activities:
Capital expenditures – excluding equipment leased to others
(2,821)
(2,758)
(94)
31
2
Expenditures for equipment leased to others
(1,465)
(36)
(1,438)
9
2
Proceeds from disposals of leased assets and property, plant and equipment
708
79
665
(36)
2
Additions to finance receivables
(15,329)
—
(18,058)
2,729
3
Collections of finance receivables
13,515
—
15,664
(2,149)
3
Net intercompany purchased receivables
—
—
(529)
529
3
Proceeds from sale of finance receivables
71
—
71
—
Additions to intercompany receivables (original maturities greater than three months)
—
(1,000)
—
1,000
4
Collections of intercompany receivables (original maturities greater than three months)
—
—
80
(80)
4
Investments and acquisitions (net of cash acquired)
(47)
(47)
—
—
Proceeds from sale of businesses and investments (net of cash sold)
22
22
—
—
Proceeds from maturities and sale of securities
2,494
1,541
953
—
Investments in securities
(1,930)
(797)
(1,133)
—
Other – net
75
126
(51)
—
Net cash provided by (used for) investing activities
(4,707)
(2,870)
(3,870)
2,033
Cash flow from financing activities:
Dividends paid
(2,749)
(2,749)
(500)
500
5
Common stock issued, and other stock compensation transactions, net
(16)
(16)
—
—
Payments to purchase common stock
(5,190)
(5,190)
—
—
Excise tax paid on purchases of common stock
(73)
(73)
—
—
Proceeds from intercompany borrowings (original maturities greater than three months)
—
—
1,000
(1,000)
4
Payments on intercompany borrowings (original maturities greater than three months)
—
(80)
—
80
4
Proceeds from debt issued (original maturities greater than three months)
11,105
1,976
9,129
—
Payments on debt (original maturities greater than three months)
(8,081)
(51)
(8,030)
—
Short-term borrowings – net (original maturities three months or less)
1,106
—
1,106
—
Other – net
(1)
(1)
—
—
Net cash provided by (used for) financing activities
(3,899)
(6,184)
2,705
(420)
Effect of exchange rate changes on cash
(43)
(58)
15
—
Increase (decrease) in cash, cash equivalents and restricted cash
3,090
3,166
(76)
—
Cash, cash equivalents and restricted cash at beginning of period
6,896
6,170
726
—
Cash, cash equivalents and restricted cash at end of period
$ 9,986
$ 9,336
$ 650
$ —
1
Elimination of equity profit earned from Financial Products' subsidiaries partially owned by MP&E subsidiaries.
2
Elimination of non-cash adjustments and changes in assets and liabilities related to consolidated reporting.
3
Reclassification of Financial Products' cash flow activity from investing to operating for receivables that arose from the sale of inventory.
4
Elimination of proceeds and payments to/from MP&E and Financial Products
5
Elimination of dividend activity between Financial Products and MP&E.
Caterpillar Inc.
Supplemental Data for Cash Flow
For the Twelve Months Ended December 31, 2024
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Consolidated
Machinery,
Power & Energy
Financial
Products
Consolidating
Adjustments
Cash flow from operating activities:
Profit of consolidated and affiliated companies
$ 10,788
$ 10,689
$ 724
$ (625)
1,5
Adjustments to reconcile profit to net cash provided by operating activities:
Depreciation and amortization
2,153
1,368
785
—
Actuarial (gain) loss on pension and postretirement benefits
(154)
(154)
—
—
Provision (benefit) for deferred income taxes
Provision (benefit) for deferred income taxes
(621)
(327)
(294)
—
(Gain) loss on divestiture
164
(46)
210
—
Other
564
355
(388)
597
2
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables – trade and other
(160)
413
207
(780)
2,3
Inventories
(414)
(400)
—
(14)
2
Accounts payable
(282)
(200)
(41)
(41)
2
Accrued expenses
191
78
113
—
Accrued wages, salaries and employee benefits
(363)
(358)
(5)
—
Customer advances
370
369
1
—
Other assets – net
(97)
(188)
48
43
2
Other liabilities – net
(104)
(162)
85
(27)
2
Net cash provided by (used for) operating activities
12,035
11,437
1,445
(847)
Cash flow from investing activities:
Capital expenditures – excluding equipment leased to others
(1,988)
(1,952)
(41)
5
2
Expenditures for equipment leased to others
(1,227)
(36)
(1,211)
20
2
Proceeds from disposals of leased assets and property, plant and equipment
722
35
698
(11)
2
Additions to finance receivables
(15,409)
—
(16,845)
1,436
3
Collections of finance receivables
13,608
—
14,707
(1,099)
3
Net intercompany purchased receivables
—
—
129
(129)
3
Proceeds from sale of finance receivables
83
—
83
—
Net intercompany borrowings
—
—
21
(21)
4
Investments and acquisitions (net of cash acquired)
(34)
(34)
—
—
Proceeds from sale of businesses and investments (net of cash sold)
(61)
92
(153)
—
Proceeds from maturities and sale of securities
3,155
2,795
360
—
Investments in securities
(1,495)
(909)
(586)
—
Other – net
193
142
51
—
Net cash provided by (used for) investing activities
(2,453)
133
(2,787)
201
Cash flow from financing activities:
Dividends paid
(2,646)
(2,646)
(625)
625
5
Common stock issued, including treasury shares reissued
20
20
—
—
Payments to purchase common stock
(7,697)
(7,697)
—
—
Excise tax paid on purchases of common stock
(40)
(40)
—
—
Net intercompany borrowings
—
(21)
—
21
4
Proceeds from debt issued (original maturities greater than three months)
10,283
—
10,283
—
Payments on debt (original maturities greater than three months)
(9,316)
(1,032)
(8,284)
—
Short-term borrowings – net (original maturities three months or less)
(168)
—
(168)
—
Other – net
(1)
(1)
—
—
Net cash provided by (used for) financing activities
(9,565)
(11,417)
1,206
646
Effect of exchange rate changes on cash
(106)
(94)
(12)
—
Increase (decrease) in cash, cash equivalents and restricted cash
(89)
59
(148)
—
Cash, cash equivalents and restricted cash at beginning of period
6,985
6,111
874
—
Cash, cash equivalents and restricted cash at end of period
$ 6,896
$ 6,170
$ 726
$ —
1
Elimination of equity profit earned from Financial Products' subsidiaries partially owned by MP&E subsidiaries.
2
Elimination of non-cash adjustments and changes in assets and liabilities related to consolidated reporting.
3
Reclassification of Financial Products' cash flow activity from investing to operating for receivables that arose from the sale of inventory.
4
Elimination of net proceeds and payments to/from MP&E and Financial Products.
5
Elimination of dividend activity between Financial Products and MP&E.
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SOURCE Caterpillar Inc.
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