Cat Financial Reports Third-Quarter 2026 Results

Past dues and net write-offs declined year over year, while higher credit-loss provisions weighed on pretax profit growth.

Rhea-AI Summary

Cat Financial, a Caterpillar (CAT) subsidiary, reported third-quarter 2026 profit of $145 million, up 8% from a year earlier. Revenue rose 10% to $1,021 million, while profit before income taxes increased 5% to $194 million. Higher average earning assets supported growth, partly offset by lower financing rates, higher credit-loss provisions and an unfavorable margin impact.

Retail new business volume rose 6% to $3,851 million. Past dues fell to 1.31% from 1.47% a year earlier, and net write-offs declined to $28 million from $40 million. The credit-loss allowance reached $332 million, or 0.91% of finance receivables, versus $294 million, or 0.84%, at June 30, 2026. For the first nine months, revenue increased 10% to $2,959 million and profit rose 8% to $434 million. Total assets were $41,361 million at September 30, 2026, up 8% from December 31, 2025.

13 points · 0 major

PositiveiHow this balance works

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0 major · 5 points

How the balance works

Positive

• Moderate pointThird-quarter revenue rose 10% to $1,021 million from $926 million in 2025.
• Moderate pointThird-quarter profit rose 8% to $145 million from $134 million in 2025.
• Moderate pointThird-quarter retail new business volume increased 6% to $3,851 million from $3,630 million a year earlier.
• Moderate pointQuarter-end past dues fell to 1.31% from 1.47% a year earlier.
• Moderate pointTotal assets increased 8% to $41,361 million at September 30, 2026, from $38,313 million at December 31, 2025.

8 minor points

• Minor pointThird-quarter pretax profit increased 5% to $194 million from $184 million in 2025.
• Minor pointHigher average earning assets added $125 million to revenue and $52 million to pretax profit year over year.
• Minor pointReturned or repossessed equipment contributed a $8 million favorable impact to third-quarter pretax profit year over year.
• Minor pointThird-quarter write-offs, net of recoveries, fell to $28 million from $40 million in 2025.
• Minor pointNine-month revenue increased 10% to $2,959 million from $2,685 million in 2025.
• Minor pointNine-month pretax profit rose 10% to $595 million from $541 million in 2025.
• Minor pointNine-month profit increased 8% to $434 million from $401 million in 2025.
• Minor pointNine-month retail new business volume rose 7% to $10,957 million from $10,193 million in 2025.

Negative

• Moderate pointHigher credit-loss provisions reduced third-quarter pretax profit by $34 million year over year.
• Moderate pointLower average financing rates reduced third-quarter revenue by $38 million year over year.
• Moderate pointMargin had an unfavorable $19 million impact on third-quarter pretax profit year over year.
• Minor pointEstimated annual tax rate rose to 29% at September 30, 2026, from 24% a year earlier.
• Minor pointCredit-loss allowance rose to $332 million, or 0.91% of receivables, from $294 million, or 0.84%, at June 30, 2026.

News Explained

Cat Financial’s estimated annual tax rate was 29 percent as of September 30, 2026, versus 24 percent a year earlier; the company said the increase was primarily due to changes in the geographic mix of profits.

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Key Figures

Revenue: $1.02 billion (+10%) Profit: $145 million (+8%) Profit before income taxes: $194 million (+5%) +5 more

Revenue

$1.02 billion (+10%)

Third quarter 2026 vs. third quarter 2025

Profit

$145 million (+8%)

Third quarter 2026 vs. third quarter 2025

Profit before income taxes

$194 million (+5%)

Third quarter 2026 vs. third quarter 2025

Retail new business volume

$3.85 billion (+6%)

Third quarter 2026 vs. third quarter 2025

Past dues

1.31% vs. 1.47%

At the end of third quarter 2026 vs. third quarter 2025

Write-offs, net of recoveries

$28 million vs. $40 million

Third quarter 2026 vs. third quarter 2025

Allowance for credit losses

$332 million (0.91% of finance receivables) vs. $294 million (0.84%)

September 30, 2026 vs. June 30, 2026

Estimated annual tax rate

29% vs. 24%

As of September 30, 2026 and 2025, respectively

Key Terms

average earning assets, write-offs, net of recoveries, allowance for credit losses, finance receivables

4 terms

average earning assets financial

"higher average earning assets of $125 million"

Average earning assets is the typical balance over a period of the assets on a financial institution’s books that generate interest or income, such as loans, securities, and interest-bearing deposits. It matters to investors because it shows the income-producing base that drives interest revenue—think of it like the average number of machines in a factory that are actually making products, which helps assess how efficiently a bank or lender turns its assets into income.

write-offs, net of recoveries financial

"Write-offs, net of recoveries, were $28 million"

The amount of previously recognized asset write-offs recorded during a period after subtracting any money recovered on assets that had been written off earlier. For example, a company may remove uncollectible receivables from its books as a write-off; if it later collects some of those receivables, the collections are counted as recoveries and reduce the net write-off figure. On financial statements this net number shows the period’s net loss of asset value from write-offs and is reflected either as an expense (or reduction of an allowance) with recoveries recorded as income or as a contra-item reducing the total write-offs.

allowance for credit losses financial

"the allowance for credit losses totaled $332 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.

finance receivables financial

"0.91% of finance receivables"

Finance receivables are amounts a company expects to collect from customers or borrowers after providing goods, services, leases, or loans on credit—essentially the IOUs recorded on its balance sheet. They matter to investors because they represent future cash inflows but carry the risk of nonpayment; rising receivables can signal growing sales or cash strain, and changes in their quality affect a company’s liquidity, profit forecasts, and overall financial health.

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NASHVILLE, Tenn., Oct. 29, 2026 /PRNewswire/ -- Cat Financial reported third-quarter 2026 revenues of $1.02 billion, an increase of $95 million, or 10%, compared with $926 million in the third quarter of 2025. The increase in revenues was primarily due to a favorable impact from higher average earning assets of $125 million, partially offset by an unfavorable impact from lower average financing rates of $38 million. Third-quarter 2026 profit was $145 million, an increase of $11 million, or 8%, compared with $134 million profit in the third quarter of 2025.

Third-quarter 2026 profit before income taxes was $194 million, an increase of $10 million, or 5%, compared with $184 million profit in the third quarter of 2025. The increase was mainly driven by a favorable impact from higher average earning assets of $52 million and a favorable impact from returned or repossessed equipment of $8 million, partially offset by higher provision for credit losses of $34 million and an unfavorable impact from margin of $19 million.

As of September 30, 2026 and 2025, the estimated annual tax rate was 29 percent and 24 percent, respectively. The increase in the estimated annual tax rate was primarily due to changes in the geographic mix of profits.

During the third quarter of 2026, retail new business volume was $3.85 billion, an increase of $221 million, or 6%, compared with $3.63 billion in the third quarter of 2025. The increase was driven by higher volume across all segments with the exception of Asia-Pacific.

At the end of the third quarter of 2026, past dues were 1.31%, compared with 1.47% at the end of the third quarter of 2025. Write-offs, net of recoveries, were $28 million for the third quarter of 2026, compared with $40 million for the third quarter of 2025. As of September 30, 2026, the allowance for credit losses totaled $332 million, or 0.91% of finance receivables, compared with $294 million or 0.84% of finance receivables at June 30, 2026. The allowance for credit losses at year-end 2025 was $284 million, or 0.86% of finance receivables.

"Cat Financial delivered another quarter of strong results. Our portfolio continues to perform well with past dues remaining 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 providing financial services solutions to support Caterpillar customers and dealers."

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:

THIRD-QUARTER 2026 VS. THIRD-QUARTER 2025 (ENDED SEPTEMBER 30, EXCEPT TOTAL ASSETS) (Millions of dollars)
	2026		2025		CHANGE
Revenues	$     1,021		$        926		10 %
Profit Before Income Taxes	$        194		$        184		5 %
Profit (excluding profit attributable to noncontrolling interests)	$        145		$        134		8 %
Retail New Business Volume	$     3,851		$     3,630		6 %
Total Assets at September 30, and December 31, respectively	$   41,361		$   38,313		8 %
NINE MONTHS 2026 VS. NINE MONTHS 2025 (ENDED SEPTEMBER 30) (Millions of dollars)
	2026		2025		CHANGE
Revenues	$     2,959		$     2,685		10 %
Profit Before Income Taxes	$        595		$        541		10 %
Profit (excluding profit attributable to noncontrolling interests)	$        434		$        401		8 %
Retail New Business Volume	$   10,957		$   10,193		7 %

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) used equipment values and estimated 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-third-quarter-2026-results-302923518.html

SOURCE Cat Financial

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much did Cat Financial earn in the third quarter of 2026?

Cat Financial reported $145 million in profit for the third quarter of 2026, up 8% from $134 million a year earlier. Revenue increased 10% to $1,021 million, and profit before income taxes rose 5% to $194 million.

Why did Cat Financial's estimated annual tax rate increase in 2026?

Cat Financial attributed the increase primarily to changes in the geographic mix of profits. Its estimated annual tax rate was 29% as of September 30, 2026, compared with 24% as of September 30, 2025.

Which segments drove Cat Financial's third-quarter 2026 new business growth?

Higher volume across all segments except Asia-Pacific drove the increase in retail new business volume. Third-quarter 2026 volume reached $3,851 million, up 6% from $3,630 million a year earlier.