- Fourth-quarter 2025 sales and revenues were $19.1 billion; full-year sales and revenues were $67.6 billion
- Fourth-quarter 2025 profit per share of $5.12; adjusted profit per share of $5.16
- Full-year profit per share of $18.81; adjusted profit per share of $19.06
- Strong full-year enterprise operating cash flow of $11.7 billion; ended 2025 with $10.0 billion of enterprise cash
- Deployed $7.9 billion of cash for share repurchases and dividends in 2025
Fourth
Quarter Full Year
($ 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.
IRVING, Texas, Jan. 29, 2026 /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 Sales Price Currency Inter- Fourth
$ %
Quarter Segment / Quarter
2024 Volume Realization Other 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 Inter-Segment Total Sales
and Revenues 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 Fourth Quarter
$ %
2025 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 Sales Price Currency Inter- Fourth
$ %
Quarter 2024 Volume Realization Segment Quarter 2025
Change Change
Total Sales $6,003 $903 $(60) $44 $36 $6,926 $923 15 %
Sales by Geographic Region
Fourth Fourth
$ %
Quarter 2025 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 Fourth %
Quarter 2025 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 Sales Price Currency Inter- Fourth
$ %
Quarter 2024 Volume Realization Segment Quarter 2025
Change Change
Total Sales $2,980 $459 $(67) $7 $(26) $3,353 $373 13 %
Sales by Geographic Region
Fourth Fourth
$ %
Quarter 2025 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 Fourth %
Quarter 2025 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 Sales Price Currency Inter- Fourth
$ %
Quarter 2024 Volume Realization Segment Quarter 2025
Change Change
Total Sales $7,649 $1,380 $166 $64 $141 $9,400 $1,751 23 %
Sales by Application
Fourth Fourth
$ %
Quarter 2025 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 Fourth %
Quarter 2025 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 Fourth
$ %
Quarter 2025 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 Fourth %
Quarter 2025 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 Operating Profit Provision Profit Profit per
Profit Profit Before (Benefit)
for Share
Margin Taxes Income
Taxes
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 Provision Effective
Tax
Taxes (Benefit) for Rate
Income Taxes
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 Twelve Months Ended
December 31, 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, December 31,
2025 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 Financial Consolidating
& Energy
Products 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)
Profit 5 $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 Financial Consolidating
& Energy
Products 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)
Profit 5 $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 Financial Consolidating
& Energy
Products 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
Profit 5 $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 Financial Consolidating
& Energy
Products 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, Financial Consolidating
Power & Products Adjustments
Energy
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, Financial Consolidating
Power & Products Adjustments
Energy
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, Financial Consolidating
Power & Energy
Products 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, Financial Consolidating
Power & Energy
Products 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 (621) (327) (294)
Provision (benefit) for deferred income taxes
(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.
Caterpillar investor relations contact: Alex Kapper, +1 773-250-2227 or Kapper_Alex@cat.com; Caterpillar media contact: Tiffany Heikkila, +1 832-573-0958 or Tiffany.Heikkila@cat.com