Cat Financial Reports Fourth-Quarter and Full-Year 2025 Results

Rhea-AI Summary

Cat Financial (NYSE:CAT) reported fourth-quarter 2025 revenues of $949 million (up 7% YoY) and full-year 2025 revenues of $3.63 billion (up 4% YoY). Fourth-quarter profit fell to $139 million (down 61% YoY) while profit before taxes rose to $193 million (up 38% YoY).

Retail new business volume grew to $4.07 billion in Q4 and $14.26 billion for 2025. Past dues improved to 1.37% and allowance for credit losses was $284 million (0.86% of finance receivables) at year-end.

Positive

• Q4 revenues increased by 7% to $949 million
• Full-year revenues rose 4% to $3.63 billion
• Retail new business volume +8% to $14.26 billion for 2025

Negative

• Q4 profit declined by 61% to $139 million
• Full-year profit fell 10% to $540 million
• Provision for income taxes swung to a $193 million expense in 2025

Key Figures

Q4 2025 Revenues: $949 million Q4 2025 Profit: $139 million Q4 2025 PBT: $193 million +5 more

8 metrics

Q4 2025 Revenues $949 million vs. $883 million in Q4 2024, up 7%

Q4 2025 Profit $139 million vs. $357 million in Q4 2024, down 61%

Q4 2025 PBT $193 million vs. $140 million in Q4 2024, up 38%

Q4 Retail New Business $4.07 billion vs. $3.69 billion in Q4 2024, up 10%

2025 Revenues $3.63 billion vs. $3.49 billion in 2024, up 4%

2025 Profit $540 million vs. $598 million in 2024, down 10%

Past Dues 2025 1.37% vs. 1.56% at end of 2024, historical lows

Allowance for Credit Losses $284 million (0.86% of receivables) vs. $267 million (0.91%) at Dec 31, 2024

Market Reality Check

Price: $665.24 Vol: Volume 2,702,178 is about...

normal vol

$665.24 Last Close

Volume Volume 2,702,178 is about 1.2x the 20-day average of 2,252,520, indicating elevated interest into the Cat Financial results. normal

Technical Price at 643.28 is above the 200-day MA of 462.41 and sits 1.91% below the 52-week high of 655.78, far above the 267.30 52-week low.

Peers on Argus

CAT gained 0.68% with mixed peer action: DE up 0.98%, PCAR up 0.37%, while CNH, ...

1 Up

CAT gained 0.68% with mixed peer action: DE up 0.98%, PCAR up 0.37%, while CNH, TEX and ALG declined between about 1–3%, suggesting a stock-specific tilt rather than a clean sector rotation.

Historical Context

5 past events · Latest: Jan 15 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 15	Earnings date notice	Neutral	-0.0%	Announced timing and access details for Q4 and full-year results release.
Jan 14	Leadership transition	Neutral	+1.3%	Announced retirement of Construction Industries leader and appointment of successor.
Jan 07	AI collaboration	Positive	-4.3%	Expanded NVIDIA collaboration to embed AI across machines and operations.
Jan 07	AI innovation update	Positive	-4.3%	Unveiled AI-powered products and long-term digital investment plans at CES.
Jan 06	Board leadership change	Neutral	-4.3%	CEO Joe Creed elected Chairman as long-time Executive Chairman retires.

Pattern Detected

Recent news shows mixed alignment: operational and AI announcements sometimes saw negative reactions, while leadership and scheduling updates had relatively modest market impact.

Recent Company History

Over the past month, Caterpillar issued several strategic and corporate updates, including AI collaborations with NVIDIA on Jan 7, 2026, a CEO-to-Chairman transition announced on Jan 6, 2026, and an earnings date notice on Jan 15, 2026. The AI-focused releases coincided with -4.26% moves, while governance and scheduling items had smaller effects. Against this backdrop, Cat Financial’s 2025 results add detail on financing performance, credit quality, and asset growth within the broader Caterpillar ecosystem.

Market Pulse Summary

This announcement details Cat Financial’s 2025 performance, highlighting revenue growth to $3.63 bil...

Analysis

This announcement details Cat Financial’s 2025 performance, highlighting revenue growth to $3.63 billion, higher profit before tax of $734 million, and expanding retail new business volume, alongside improved past dues of 1.37%. Headline profit declined year over year due largely to tax effects. Investors may watch future trends in credit losses, funding costs, and business volume to assess how this financing arm supports Caterpillar’s broader growth strategy.

Key Terms

provision for credit losses, retail new business volume, allowance for credit losses, forward-looking statements

4 terms

provision for credit losses financial

"The increase was mainly due to a favorable impact... and lower provision for credit losses of $19 million."

Provision for credit losses is an amount set aside by a financial institution to cover potential future losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution manage risks and stay financially healthy. For investors, it signals how cautious a lender is about potential loan defaults and can impact the company's profitability and financial stability.

retail new business volume financial

"During the fourth quarter of 2025, retail new business volume was $4.07 billion..."

Retail new business volume is the total value of new sales or accounts won from individual customers over a set period — for example new insurance premiums, bank deposits, or investment amounts brought in by retail clients. It matters to investors because it shows how well a company is attracting fresh customers and generating future revenue; like counting new shoppers entering a store, rising volume signals growth and momentum while falling volume warns of weakening demand.

allowance for credit losses financial

"As of December 31, 2025, the allowance for credit losses totaled $284 million..."

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

forward-looking statements regulatory

"CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS Certain statements in this press release..."

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

AI-generated analysis. Not financial advice.

Fourth-Quarter 2025 vs. Fourth-Quarter 2024

NASHVILLE, Tenn., Jan. 29, 2026 /PRNewswire/ -- Cat Financial reported fourth-quarter 2025 revenues of $949 million, an increase of $66 million, or 7%, compared with $883 million in the fourth quarter of 2024. The increase in revenues was primarily due to a favorable impact from higher average earning assets of $89 million, partially offset by an unfavorable impact from lower average financing rates of $18 million. Fourth-quarter 2025 profit was $139 million, a decrease of $218 million, or 61%, compared with $357 million in the fourth quarter of 2024.

Fourth-quarter 2025 profit before income taxes was $193 million, an increase of $53 million, or 38%, compared with $140 million in the fourth quarter of 2024. The increase was mainly due to a favorable impact from higher average earning assets of $34 million and lower provision for credit losses of $19 million.

The provision for income taxes was $54 million for the fourth quarter of 2025 compared with a benefit of $217 million for the fourth quarter of 2024. The benefit from income taxes for the fourth quarter of 2024 included a non-cash tax benefit of $224 million from a tax law change related to currency translation.

During the fourth quarter of 2025, retail new business volume was $4.07 billion, an increase of $379 million, or 10%, compared with $3.69 billion in the fourth quarter of 2024. The increase was driven by higher volume across all segments.

At the end of 2025, past dues 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, the 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.

Full-Year 2025 vs. Full-Year 2024

Cat Financial reported revenues of $3.63 billion for 2025, an increase of $145 million, or 4%, compared with $3.49 billion for 2024. The increase in revenues was primarily due to a favorable impact from higher average earning assets of $222 million, partially offset by an unfavorable impact from lower average financing rates of $68 million. Profit was $540 million for 2025, a decrease of $58 million, or 10%, compared with $598 million for 2024.

Profit before income taxes was $734 million for 2025, an increase of $201 million, or 38%, compared with $533 million for 2024. The increase was primarily driven by the absence of a $210 million loss on divestiture of a non-U.S. entity in 2024 and a favorable impact from higher average earning assets of $90 million, partially offset by the absence of an insurance settlement of $33 million in 2024 and higher provision for credit losses of $31 million.

The provision for income taxes was $193 million for 2025 compared with a benefit of $66 million for 2024. The benefit from income taxes for 2024 included a non-cash tax benefit of $224 million from a tax law change related to currency translation.

During 2025, retail new business volume was $14.26 billion, an increase of $1.02 billion, or 8%, compared with $13.24 billion for 2024. The increase was driven by higher volume across all segments except Mining.

"Cat Financial closed the year with strong retail new business volume and past dues at historical lows," said Dave Walton, President of Cat Financial and Senior Vice President with responsibility for the Financial Products Division of Caterpillar Inc. "The Cat Financial team remains focused on executing our strategy and supporting Caterpillar customers and dealers with financial services solutions, positioning us well for long-term profitable growth."

About Cat Financial

Cat Financial is a subsidiary of Caterpillar, the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Cat Financial provides a wide range of financing solutions to customers and Cat® dealers for machines, engines, Solar® turbines, genuine Cat parts and services. Headquartered in Nashville, Tennessee, Cat Financial serves customers globally with offices and subsidiaries located throughout North and South America, Asia, Australia, Europe and Africa. Visit cat.com to learn more about Cat Financial.

STATISTICAL HIGHLIGHTS:

FOURTH-QUARTER 2025 VS. FOURTH-QUARTER 2024 (ENDED DECEMBER 31) (Millions of dollars)
	2025		2024		CHANGE
Revenues	$         949		$         883		7 %
Profit Before Income Taxes	$         193		$         140		38 %
Profit (excluding profit attributable to noncontrolling interests)	$         139		$         357		(61) %
Retail New Business Volume	$      4,071		$      3,692		10 %
Total Assets	$    38,313		$    34,084		12 %
FULL-YEAR 2025 VS. FULL-YEAR 2024 (ENDED DECEMBER 31) (Millions of dollars)
	2025		2024		CHANGE
Revenues	$      3,634		$      3,489		4 %
Profit Before Income Taxes	$         734		$         533		38 %
Profit (excluding profit attributable to noncontrolling interests)	$         540		$         598		(10) %
Retail New Business Volume	$    14,264		$    13,242		8 %

CAUTIONARY STATEMENT REGARDING 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," "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.

Cat Financial'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) disruptions or volatility in global financial markets limiting our sources of liquidity or the liquidity of our customers, dealers and suppliers; (ii) 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; (iii) changes in interest rates, currency fluctuations or market liquidity conditions; (iv) an increase in delinquencies, repossessions or net losses of our customers; (v) residual values of leased equipment; (vi) our compliance with financial and other restrictive covenants in debt agreements; (vii) government monetary or fiscal policies; (viii) political and economic risks, commercial instability and events beyond our control in the countries in which we operate; (ix) demand for Caterpillar products; (x) marketing, operational or administrative support received from Caterpillar; (xi) our ability to develop, produce and market quality products that meet our customers' needs; (xii) information technology security threats and computer crime; (xiii) alleged or actual violations of trade or anti-corruption laws and regulations; (xiv) new regulations or changes in financial services regulations; (xv) additional tax expense or exposure; (xvi) changes in accounting guidance; (xvii) catastrophic events, including global pandemics such as the COVID-19 pandemic; and (xviii) other factors described in more detail in Cat Financial's Forms 10-Q, 10-K and other filings with the Securities and Exchange Commission.

View original content:https://www.prnewswire.com/news-releases/cat-financial-reports-fourth-quarter-and-full-year-2025-results-302673884.html

SOURCE Cat Financial

FAQ

What drove Cat Financial's Q4 2025 revenue increase (CAT)?

A rise in average earning assets primarily drove the Q4 2025 revenue increase. According to Cat Financial, higher average earning assets added $89 million to revenues, partially offset by lower average financing rates that reduced revenue by $18 million.

Why did Cat Financial's Q4 2025 profit decline despite higher pre-tax profit (CAT)?

The profit decline reflects a tax swing and other items reducing net income. According to Cat Financial, profit before taxes rose, but a $54 million tax provision versus a $217 million tax benefit in prior-year Q4 caused net profit to fall sharply.

How much did Cat Financial's retail new business volume change in 2025 (CAT)?

Retail new business volume increased by $1.02 billion, or 8%, in 2025. According to Cat Financial, full-year retail new business reached $14.26 billion, driven by higher volume across most customer segments.

What were Cat Financial's credit quality metrics at year-end 2025 (CAT)?

Past dues improved and allowance modestly increased as a percent of receivables. According to Cat Financial, past dues were 1.37% at year-end 2025 and the allowance for credit losses totaled $284 million (0.86% of finance receivables).

How did profit before income taxes for full-year 2025 compare to 2024 for Cat Financial (CAT)?

Profit before taxes rose 38% to $734 million for full-year 2025. According to Cat Financial, the increase reflected the absence of a prior-year $210 million divestiture loss and higher average earning assets.