Caterpillar Reports Fourth-Quarter and Full-Year 2025 Results

Rhea-AI Summary

Caterpillar (NYSE: CAT) reported fourth-quarter 2025 sales of $19.1 billion and full-year 2025 sales of $67.6 billion, the highest full-year revenue in company history. Fourth-quarter profit per share was $5.12 (adjusted $5.16); full-year profit per share was $18.81 (adjusted $19.06).

Enterprise operating cash flow was $11.7 billion; the company ended 2025 with $10.0 billion of enterprise cash and deployed $7.9 billion for share repurchases and dividends.

Positive

• Record full-year sales and revenues of $67.6 billion
• Strong enterprise operating cash flow of $11.7 billion
• Returned $7.9 billion to shareholders via repurchases and dividends in 2025

Negative

• Full-year profit per share declined from $22.05 in 2024 to $18.81 in 2025 (≈14.7%)
• Operating profit margin fell from 20.2% in 2024 to 16.5% in 2025 (370 bps)
• Fourth-quarter unfavorable manufacturing costs of $1.03 billion and higher restructuring costs of $282 million

News Market Reaction

+3.41%

7 alerts

+3.41% News Effect

+2.2% Peak in 6 min

+$9.93B Valuation Impact

$301.04B Market Cap

4K Volume

On the day this news was published, CAT gained 3.41%, reflecting a moderate positive market reaction. Argus tracked a peak move of +2.2% during that session. Our momentum scanner triggered 7 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $9.93B to the company's valuation, bringing the market cap to $301.04B at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q4 2025 Sales & Revenues: $19.1 billion Full-Year 2025 Sales & Revenues: $67.6 billion Q4 2025 Profit Per Share: $5.12 +5 more

8 metrics

Q4 2025 Sales & Revenues $19.1 billion Fourth-quarter 2025, record single-quarter level

Full-Year 2025 Sales & Revenues $67.6 billion Full-year 2025, highest in company history; up from $64.8B in 2024

Q4 2025 Profit Per Share $5.12 GAAP EPS vs. $5.78 in Q4 2024

Q4 2025 Adjusted EPS $5.16 Adjusted EPS vs. $5.14 in Q4 2024

Full-Year 2025 Profit Per Share $18.81 GAAP EPS vs. $22.05 in 2024

Full-Year 2025 Adjusted EPS $19.06 Adjusted EPS vs. $21.90 in 2024

2025 Operating Cash Flow $11.7 billion Full-year 2025 enterprise operating cash flow

2025 Capital Returns $7.9 billion Cash deployed for share repurchases and dividends in 2025

Market Reality Check

Price: $657.36 Vol: Volume 2,702,178 is 1.2x ...

normal vol

$657.36 Last Close

Volume Volume 2,702,178 is 1.2x the 20-day average of 2,252,520 shares. normal

Technical Shares at $643.28 trade above the 200-day MA $462.41 and sit 1.91% below the 52-week high of $655.78.

Peers on Argus

CAT was modestly higher pre-release (0.68%) with mixed peers: DE up 0.98%, PCAR ...

1 Up

CAT was modestly higher pre-release (0.68%) with mixed peers: DE up 0.98%, PCAR up 0.37%, while CNH, TEX and ALG were down between 1.07% and 2.88%, indicating stock-specific focus rather than a broad sector move.

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%	Set timing for Q4 and full-year 2025 financial results release.
Jan 14	Leadership transition	Neutral	+1.3%	Announced succession in Construction Industries group president role.
Jan 07	AI collaboration	Positive	-4.3%	Expanded NVIDIA collaboration to embed advanced AI across operations.
Jan 07	AI strategy update	Positive	-4.3%	Unveiled AI-powered machines and workforce investments at CES 2026.
Jan 06	Board leadership change	Neutral	-4.3%	CEO Joe Creed elected future Chairman as long-time leader retires.

Pattern Detected

Recent company announcements have often seen mixed or negative 24-hour reactions, even to seemingly strategic or innovative news, suggesting market expectations can be demanding around catalysts.

Recent Company History

Over the last month, Caterpillar issued several strategic and governance updates. An AI collaboration with NVIDIA and AI-powered product launches on Jan 7, 2026 coincided with a -4.26% move, despite innovation-focused messaging. Leadership and board transitions announced on Jan 6–14, 2026 drew mixed reactions, including a 1.32% gain on a Construction Industries leadership change. An earnings date notification on Jan 15, 2026 left shares nearly flat. Today’s full-year 2025 results follow this pattern of high expectations around strategic news.

Market Pulse Summary

This announcement details record fourth-quarter sales of $19.1 billion and full-year 2025 revenues o...

Analysis

This announcement details record fourth-quarter sales of $19.1 billion and full-year 2025 revenues of $67.6 billion, the highest in Caterpillar’s history, supported by strong operating cash flow of $11.7 billion. At the same time, operating profit margins and GAAP EPS declined year over year, reflecting higher manufacturing costs, tariffs, and restructuring charges. Investors may track how adjusted margins of 17.2%, segment profitability, and backlog trends evolve, as well as whether cost pressures and tax changes continue to weigh on overall profitability in future periods.

Key Terms

operating profit margin, adjusted operating profit margin, OPEB, mark-to-market gains, +1 more

5 terms

operating profit margin financial

"Operating profit margin was 13.9% for the fourth quarter of 2025..."

Operating profit margin measures the percentage of a company's revenue that remains after paying the regular costs of running the business (like wages, rent, and materials) but before interest and taxes. It shows how efficiently sales are converted into core profit, so investors can compare operational performance across companies or track trends over time; a higher margin generally means more cushion for downturns and more room to reinvest.

adjusted operating profit margin financial

"Adjusted operating profit margin was 15.6% for the fourth quarter of 2025..."

Adjusted operating profit margin measures the share of each dollar of sales a company keeps from its core business after removing the effects of one-time or non-recurring items (for example, unusual charges or gains). It matters to investors because it shows the underlying efficiency and profitability of ongoing operations—like checking a car’s fuel efficiency after excluding rare detours—making results easier to compare across periods and companies.

OPEB medical

"mark-to-market gains for remeasurement of pension and other postemployment benefit (OPEB) plans..."

Other post-employment benefits (OPEB) are promises an employer makes to cover former employees’ costs after they retire, most commonly health care and life insurance, but not pensions. Think of it like a household promising to pay a parent’s medical bills years from now: it creates a future bill the company must plan for. Investors watch OPEB because growing or underfunded OPEB obligations can reduce future cash available for dividends, investment, or debt repayment and can affect a company’s reported liabilities and credit strength.

mark-to-market gains financial

"The change was primarily driven by higher mark-to-market gains for remeasurement..."

Mark-to-market gains are the profits that result when the value of an investment increases based on its current market price. They reflect the rise in an asset’s worth if it were sold today, rather than its original purchase price. For investors, these gains show how much their investments have grown in value at a given moment, providing a real-time measure of financial performance.

effective tax rate financial

"The effective tax rate for the fourth quarter of 2025 was 23.5% compared to 14.3%..."

The effective tax rate is the percentage of a company's profits that it pays in taxes. It shows how much of its earnings go to taxes after all deductions and credits are considered. For investors, it indicates how much of the company's income is taken by taxes, impacting overall profitability and financial health.

AI-generated analysis. Not financial advice.

• 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 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)		—		—
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 & 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)		—		—
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 & 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		—
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 & 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.

FAQ

What were Caterpillar's fourth-quarter 2025 sales and EPS (NYSE: CAT)?

Caterpillar reported fourth-quarter 2025 sales of $19.1 billion and profit per share of $5.12. According to the company, adjusted EPS was $5.16, with an 18% sales increase versus Q4 2024 driven by higher equipment volume.

How did Caterpillar perform for full-year 2025 and what was the cash flow (CAT)?

Full-year 2025 sales were $67.6 billion with profit per share of $18.81. According to the company, enterprise operating cash flow was $11.7 billion and year-end enterprise cash was $10.0 billion.

How much did Caterpillar return to shareholders in 2025 (CAT buybacks/dividends)?

Caterpillar deployed $7.9 billion in 2025 for share repurchases and dividends. According to the company, that included $5.2 billion for stock repurchases and $2.7 billion for dividends during the year.

Why did Caterpillar's margins and EPS decline in 2025 despite higher revenue (CAT)?

Margins and EPS declined due to higher manufacturing costs and restructuring charges, offsetting volume gains. According to the company, manufacturing costs rose by $1.03 billion and restructuring costs increased by $282 million in Q4 2025.

What segments and regions drove Caterpillar's Q4 2025 revenue growth (NYSE: CAT)?

Revenue grew across Construction, Resource, and Power & Energy segments, led by higher equipment sales. According to the company, North America, EAME, and Asia/Pacific contributed materially to the 18% consolidated sales increase in Q4 2025.