Caterpillar Inc. (CAT)

Business

From the 2025 Form 10-K, accession 0000018230-26-000008, with the 2026 segment structure from the Form 10-Q, accession 0000018230-26-000057.

Caterpillar is the world's largest maker of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. It sells machines, engines, turbines and the parts and services that support them, mainly through an independent dealer network that reaches 190 countries. It also finances customer and dealer purchases through its captive finance arm, Cat Financial. Sales and revenues were $67.589 billion in 2025, about half from customers inside the United States ($32.880 billion) and half from outside it ($34.709 billion). Its brands include Caterpillar, CAT, EMD, FG Wilson, MWM, Perkins, Progress Rail, SEM and Solar Turbines.

How the company is organized. Caterpillar reports two lines of business. Machinery, Power & Energy (MP&E) covers Caterpillar and its subsidiaries other than Financial Products, and designs, makes and markets the products. Financial Products is the finance and insurance subsidiaries, chiefly Caterpillar Financial Services Corporation (Cat Financial) and Caterpillar Insurance Holdings Inc. The company has five operating segments, four of them reportable. Each segment is described below on its 2026 footing.

• Power & Energy serves power generation, oil and gas and industrial customers, and marine applications. Its products are reciprocating engines and generator sets, integrated power systems, turbines, centrifugal gas compressors and turbine-related services, and electrified powertrain and zero-emission power, plus the engines inside Caterpillar's own machines. It also remanufactures engines and components and supports on-highway engines. Its principal global competitors are Cummins, Deutz, Rolls-Royce Power Systems and Siemens Energy. In particular markets it also meets Volvo Penta, FPT Industrial, INNIO, GE Vernova, Kawasaki, Everllence (formerly MAN Energy Solutions) and Weichai, and packagers such as Aggreko, Generac, Rehlko and Baker Hughes. Emissions rules force continuing product investment, and compliance in developing markets is complicated by fast-changing, unevenly enforced local requirements.
• Construction Industries serves infrastructure and building construction. Most of its machine sales go to heavy and general construction, rental, quarry and aggregates and mining. The line runs from mini excavators, skid steers and compact track loaders to motor graders, wheel loaders, track-type tractors and large excavators, plus parts and work tools. Customers in developing economies tend to buy on purchase price, which Caterpillar addresses partly with its SEM brand. Customers in developed markets weigh lifetime owning and operating cost. Global competitors include CASE (CNH), Deere, Doosan Bobcat, Hitachi, Hyundai, JCB, Kobelco, Komatsu, Kubota, Sany and Volvo. In China it also competes with LiuGong, Longking, XCMG, SDLG and Shantui.
• Resource Industries serves mining, heavy construction and quarry and aggregates with surface and underground mining equipment: large trucks, shovels, draglines, drills, large wheel loaders and dozers. It also sells wear parts and components, and technology such as fleet management, equipment analytics, autonomy, safety services and mining performance solutions. Since January 1, 2026 it also holds the Rail business: diesel-electric, hybrid and battery-electric locomotives, components and rail services, including remanufacturing and leasing. It runs shared services for the company, including strategic procurement and integrated component design. Caterpillar regards its control over the design and integration of key machine components as a competitive advantage. Surface-mining competitors include Deere, Epiroc, Hitachi, Komatsu, Liebherr, Sandvik and Volvo. In rail they include Wabtec, Greenbrier, Voestalpine, Vossloh, Alstom and Siemens Mobility.
• Financial Products provides retail and wholesale financing for Caterpillar products and for power generation facilities that incorporate them. That covers loans, revolving charge accounts, finance and tax leases, dealer inventory and rental-fleet financing, and working-capital loans to dealers. Cat Financial also buys short-term wholesale trade receivables from Caterpillar. Most of its business is in North America, and it has provided financing for Caterpillar products for more than 40 years. Joint merchandising programs strengthen its competitive position: Caterpillar or the dealer funds an amount at the start of the deal, and Cat Financial recognises it as revenue over the financing term. It competes with banks and lessors such as Wells Fargo Equipment Finance, Banc of America Leasing, BNP Paribas Leasing Solutions, ANZ and Société Générale. It also faces rival captives such as John Deere Capital, Komatsu Financial, Volvo Financial Services and Kubota Credit, many of which run below-market rate programs funded by their parents. A match-funding policy aligns the rate profile of its debt with its receivables, using interest rate derivatives. Insurance Services writes property and casualty insurance through Caterpillar Insurance Company (Missouri, with a Zurich branch) and captive and reinsurance cover through a Bermuda subsidiary. The insurance group also includes Caterpillar Life Insurance Company, which reinsures a stop-loss policy covering retiree medical claims.
• The All Other Segment holds parts distribution, logistics, electronics and control systems, dealer development, and research and development for automation, electronics and software. It also includes Nippon Caterpillar Division, the company-owned dealer that covers about 80% of the Japanese market.

The 2026 segment realignment. On November 4, 2025 Caterpillar announced that it would move its Rail division from Power & Energy to Resource Industries. The change took effect on January 1, 2026. The 2025 Form 10-K was prepared on the old basis, with Rail still inside Power & Energy, and the company furnished recast 2025 and 2024 segment data on March 26, 2026. The 2026 quarterly reports restate 2025 to the new basis. The two bases are reconciled under Management's discussion, full-year 2025 below. An earlier change, effective July 1, 2025, moved wear and maintenance components from the All Other Segment into Resource Industries. The same change moved electronics, control systems and automation research and development from Resource Industries to the All Other Segment. The 2025 Form 10-K figures already reflect that earlier change. In earnings releases up to the third-quarter 2025 release (accession 0000018230-25-000043), Power & Energy was called Energy & Transportation. The Power & Energy name appears from the fourth-quarter 2025 release onward (accession 0000018230-26-000003).

Distribution. Machines are sold mainly through 150 dealers: 41 in the United States and 109 elsewhere. Reciprocating engines go through the dealer network and to other equipment makers. Perkins sells through 86 distributors in 183 countries and FG Wilson through 108 distributors in 159 countries. Turbines and locomotives are sold directly by company sales forces. Dealers are independent and not exclusive, but Caterpillar products are usually their main business. Each standard sales-and-service agreement grants a territory and a trademark license. In return the dealer commits to promotion, staffing, product-improvement programs and record-keeping. Either party can end the agreement on 90 days' written notice.

Backlog. Firm order backlog was about $51.2 billion at December 31, 2025, up from $30.0 billion a year earlier. It rose in every primary segment, most in Power & Energy. About $19.3 billion of the year-end 2025 backlog was not expected to ship in 2026. Backlog then rose to about $78.1 billion at September 30, 2026 (see Current period).

Inputs, people and environment. Caterpillar buys steel, castings, forgings and finished components from domestic and international suppliers, and machines and assembles some components in-house. It notes that demand surges and supply-chain disruptions have at times constrained parts. No single patent or group of patents is material to the business. It employed about 118,000 people full time at December 31, 2025 (112,900 a year earlier): 51,600 in the U.S. and 66,400 outside it. By region that was North America 52,100, Asia/Pacific 26,900, Latin America 22,300 and EAME 16,700. 7,972 U.S. hourly production employees were covered by collective bargaining agreements with unions including the UAW, the International Association of Machinists and the United Steelworkers. The 2025 recordable injury frequency rate was 0.41 (2024: 0.43). Environmental law shapes product development, notably engine emissions standards, and requires continuing R&D and capital spending. Caterpillar is carrying out remediation at a number of sites, generally alongside other companies. The amount recorded for that work is not material.

Strategy. In 2025 Caterpillar adopted a revised strategy around the mission "Solving our customers' toughest challenges." It rests on three profitable-growth pillars: Commercial Excellence, Advanced Technology Leader and Transform How We Work. Those pillars sit on a foundation of Operational Excellence and are run through the Operating & Execution model.

Risk factors

Condensed from Item 1A of the 2025 Form 10-K, accession 0000018230-26-000008. The Form 10-Q for the quarter ended September 30, 2026 reports no material changes to these risk factors.

Macroeconomic.

• Cyclical demand. Demand drops sharply when government and business investment, confidence or credit weaken, when real interest rates are high, or when there is industry overcapacity. A long downturn also brings higher credit-loss allowances and possible goodwill and asset impairments. Energy, transportation and mining customers buy on expected commodity prices, which can move abruptly. When those customers cut capital budgets they also defer overhauls, which reduces aftermarket parts demand. Infrastructure spending, commercial construction and housing starts matter materially.
• Input costs and supply chain. Caterpillar is a heavy user of steel and other commodities. Price increases hurt unless pricing, productivity or hedging offsets them. Supplier problems, including with semiconductors, can impair deliveries to customers. Demand below plan leaves excess inventory and extra cost.
• Monetary and fiscal policy. Interest rates drive demand for structures, energy and mined products, and customers' ability to finance machines. They also set how long customers keep machines in fleets. Currency moves caused by policy can make output from a manufacturing country uncompetitive. Public spending cuts and tax changes, such as depreciation lives, also bear on results.
• Political and country risk. The named exposures are conflicting and changing laws, currency and repatriation restrictions, new tariffs or quotas, changes to trade agreements, sanctions, war, terrorism and civil unrest. Swings in freight and fuel costs and port capacity limits are further exposures.
• Catastrophic and unexpected events. Earthquakes, severe weather, pandemics, cyber-attacks, war or terrorism could disrupt the workforce, plants, data centers and supply. They could also cause component shortages and add to inflation and demand uncertainty. Insurance may not cover every cost.

Operational.

• Product competitiveness. Results depend on dealer relationships, on meeting customers' quality, performance and price expectations, and on leading-edge innovation with enforceable IP. They also depend on meeting regulatory requirements such as engine exhaust emission rules.
• Competition and pricing. Share can be lost to aggressive competitor pricing, to product or manufacturing problems, or to failure to produce at competitive cost. A build-up of competitors' new-machine or dealer rental fleets can depress rental rates and used-equipment prices. Customer resistance to announced price increases, higher discount demands or unfavorable geographic and product mix would also hurt results.
• Cybersecurity. Caterpillar relies on IT systems, some run by third parties, and holds sensitive business, customer, dealer, supplier and employee data. Threats are growing and include attacks on the hardware and software installed in its products. The company has experienced threats, vulnerabilities and attacks, none of which has so far had a material impact. A future material incident could bring litigation, enforcement, data loss or corruption and higher remediation costs, and insurance may be inadequate. GDPR, the California Consumer Privacy Act and similar laws carry significant penalties.
• Dealer and OEM inventory decisions. Products are sold mainly through independent dealers and directly to OEMs, so their stocking decisions can push Caterpillar's sales above or below end-user demand.
• Acquisitions and divestitures. Due diligence can miss liabilities. Integration can bring impairments, duplicate-facility costs and litigation. Debt or equity financing of deals can lower earnings, weaken leverage metrics or dilute shareholders. Divestiture indemnities and guarantees can leave Caterpillar exposed to businesses it has sold.
• Labor. Collective bargaining agreements in several countries may not be renewed on acceptable terms, and strikes at Caterpillar, its customers or its suppliers would hurt results.

Financial.

• Liquidity and market access. The company needs varied funding sources. Market volatility, counterparty risk or government intervention could limit access to capital for Caterpillar and for its customers, dealers and suppliers. Customers with less access to credit buy fewer machines.
• Credit ratings. Ratings for Caterpillar and Cat Financial reflect net worth, profitability, interest coverage and leverage. A downgrade would raise borrowing costs and could restrict commercial paper access.
• Financial services risk. Cat Financial supports a significant share of global sales. In a downturn it could face sharply higher funding costs, be unable to fund growth or debt service, and have to draw committed lines. Weaker payment patterns would raise delinquencies, write-offs and provisions. Loss estimation relies heavily on management judgment.
• Interest rates. Many Cat Financial loans carry fixed rates and others float on benchmarks such as SOFR. Match funding, derivatives and diversified funding reduce the risk but do not remove it. Equity and bond market declines would reduce the value of Insurance Services' investments.
• Credit quality. Delinquencies, repossessions and losses depend on industry conditions, commodity prices, customers' management quality and collateral values.
• Currency. Costs and revenues are in different currencies. Hedging protects against adverse moves but gives up favorable ones, and outlooks assume no exchange-rate change. Currency controls can block foreign subsidiaries' dividends, and devaluations erode local-currency funds.
• Debt covenants. Caterpillar must keep a minimum consolidated net worth and observe limits on liens, sale-leasebacks, property transfers and mergers. Cat Financial must also keep a maximum leverage ratio and a minimum interest coverage ratio, and must leave its support agreement with Caterpillar in place. A breach could accelerate debt, end unused commitments and lead to downgrades.
• Pension funding. Weak market returns could raise required contributions. Caterpillar uses a liability-driven investment strategy to align the rate sensitivity of plan assets and obligations.

Legal and regulatory.

• Trade and anti-corruption law. Caterpillar is subject to U.S. Customs and Border Protection, the Bureau of Industry and Security, the Office of Antiboycott Compliance, the Directorate of Defense Trade Controls and OFAC, plus their foreign equivalents. It is also subject to embargoes, sanctions, the FCPA and similar laws. Violations by employees, intermediaries or joint-venture partners could bring severe penalties.
• Trade policy. Quotas, capital controls, tariffs, "buy national" policies and retaliation can reduce demand and market access.
• Taxes. The effective tax rate depends on the mix of earnings across jurisdictions, on changes in tax law, and on deferred-tax valuations and reinvestment assumptions. It also depends on the outcome of audits. U.S. federal returns for 2017 through 2019 were under IRS examination at the time of the 10-K.
• Litigation and investigations. Caterpillar faces product liability claims, including claimed asbestos exposure, and contract, employment, environmental, IP, tax and securities claims worldwide. Regulators periodically review the industries it operates in. Later developments could require payments above recorded reserves.
• Financial services regulation. Some Cat Financial activities fall under the Dodd-Frank Act. Further regulation in the U.S. or abroad could add significant cost.
• Environmental and climate regulation. Increasingly strict rules cover emissions, waste and discharges. Some impose strict, retroactive, joint-and-several remediation liability. Climate and greenhouse-gas rules could require new product investment and raise compliance, energy and raw-material costs.
• Exclusive forum. Under the bylaws, the Delaware Court of Chancery is the exclusive forum for derivative, fiduciary-duty, DGCL and internal-affairs claims, which could deter shareholder suits. The provision does not cover federal securities claims.

Legal matters disclosed. Caterpillar Brasil Ltda is in tax and customs disputes with Brazilian federal, state and municipal authorities over its export activities. The company cannot predict the outcome or estimate the loss, but does not currently expect a material adverse effect. For its other unresolved ordinary-course actions, the reasonably possible losses in excess of accruals are not material in aggregate (Form 10-Q, Note 14).

Management's discussion, full-year 2025

From Item 7 of the 2025 Form 10-K, accession 0000018230-26-000008. The segment figures below are the ones the 10-K printed, with Rail still inside Power & Energy. Results for 2026 are compared against the recast figures, set out first.

As reported versus recast. Construction Industries ($25.060 billion of 2025 sales, $4.675 billion of profit) and Financial Products ($4.220 billion of revenues, $966 million of profit) are unchanged by the Rail move. Resource Industries and Power & Energy are not:

On the recast basis, 2024 Resource Industries sales were $15.745 billion with profit of $2.676 billion. Power & Energy sales were $25.506 billion with profit of $5.598 billion.

Headline. Sales and revenues rose 4% to $67.589 billion from $64.809 billion. Higher volume added $3.389 billion, mainly from sales of equipment to end users, and unfavorable price realization took away $817 million. Operating profit fell 15% to $11.151 billion from $13.072 billion. Operating margin was 16.5% against 20.2% (adjusted 17.2% against 20.7%). Profit was $8.884 billion against $10.792 billion, or $18.81 per share against $22.05 (adjusted $19.06 against $21.90). The profit decline came from $2.148 billion of unfavorable manufacturing costs, largely the effect of higher tariffs, and the $817 million price headwind. Higher volume offset $1.218 billion of that. Enterprise operating cash flow was $11.7 billion, and enterprise cash ended the year at $10.0 billion.

By geography. North America sales rose 6% on volume, partly offset by price. Latin America rose 4% on volume despite a weaker Brazilian real. EAME rose 4% on volume, mostly from dealer restocking, and a stronger euro, with price lower. Asia/Pacific fell 2% on the Australian dollar and lower volume. Total dealer inventory rose about $900 million in 2025 (2024: up about $400 million). Machine dealer inventory fell about $500 million (2024: down about $700 million).

Construction Industries. Sales fell 2% to $25.060 billion as $1.136 billion of unfavorable price outweighed $568 million of higher volume. Profit fell 24% to $4.675 billion. The drivers were the price decline and $671 million of unfavorable manufacturing costs, largely tariffs, partly offset by $315 million from volume. Margin was 18.7% against 24.2%.

Resource Industries (as reported). Sales were flat at $12.474 billion, with $403 million of volume offset by $272 million of unfavorable price and $46 million of currency. Profit fell 22% to $1.988 billion on $302 million of unfavorable manufacturing costs (largely tariffs) and lower price. Margin was 15.9% against 20.4%.

Power & Energy (as reported). Sales rose 12% to $32.201 billion on $2.401 billion of volume and $592 million of favorable price. By application:

• Power generation rose in large reciprocating engines, primarily for data centers, and in turbines.
• Oil and gas rose in turbines and turbine services, partly offset by fewer gas-compression engines.
• Industrial rose in EAME and fell elsewhere.
• In transportation, marine fell and rail services rose.

Profit rose 12% to $6.418 billion. Volume added $972 million and price $592 million, partly offset by $919 million of unfavorable manufacturing costs, mainly tariffs. Margin was 19.9% in both years.

Financial Products. Segment revenues rose 4% to $4.220 billion. Higher average earning assets added $222 million, mainly in North America, and lower average financing rates took away $68 million. Segment profit rose 4% to $966 million. Earning assets added $90 million, offset partly by the absence of a $33 million 2024 insurance settlement and by a $31 million higher credit-loss provision.

Corporate items and below the line. Corporate items and eliminations expense was $2.291 billion, $580 million more than in 2024, on timing differences, higher corporate costs and restructuring. MP&E interest expense was $502 million (2024: $512 million). Other income was $892 million (2024: $813 million). The effective tax rate was 24.0% against 19.7%. Excluding discrete items it was 24.1% against 22.2%, the rise mainly reflecting changes in U.S. tax incentives. Restructuring costs were $448 million (2024: $359 million), including write-downs of Rail division inventory. The pension and OPEB mark-to-market gain was $294 million, mainly because U.S. pension assets returned 10.1% against an expected 6.3%.

Liquidity and capital allocation. Consolidated operating cash flow was $11.739 billion, down $296 million. MP&E operating cash flow was $12.278 billion and capital expenditures were $2.794 billion (2024: $1.988 billion). Total debt rose $4.921 billion to $43.330 billion. That included a second-quarter 2025 MP&E issue of $1.700 billion of 5.2% ten-year bonds and $300 million of 5.5% thirty-year bonds, and $3.818 billion more Financial Products debt. Because Cat Financial issued $1.75 billion of medium-term notes on January 8, 2026, $1.75 billion of notes maturing in the first quarter of 2026 were not classed as current at year end. Three global credit facilities totaled $11.500 billion, undrawn. Covenant net worth was $21.388 billion against a $9.000 billion minimum. Fitch rated the company "high-A" and Moody's and S&P "mid-A".

The resource allocation framework has three priorities in order:

1. Keep a strong balance sheet supporting a mid-A rating.
2. Fund operational commitments and growth initiatives.
3. Return substantially all MP&E free cash flow over time through dividend growth and buybacks.

Dividends paid were $2.749 billion, and the quarterly rate was $1.51 at year end. Buybacks were $5.190 billion, and $14.937 billion remained under the June 2024 $20.0 billion authorization. Basic shares outstanding were about 465 million.

Critical estimates and sensitivities. The estimates management highlights are:

• residual values on leased equipment ($1.57 billion on operating leases; a 10% market-value decline would add about $65 million of annual depreciation);
• goodwill (the 2025 test found every reporting unit substantially above carrying value);
• warranty;
• product liability and insurance reserves ($1.6 billion);
• pensions;
• post-sale dealer discounts ($2.5 billion);
• credit losses;
• income taxes.

A 10% weakening of the U.S. dollar would cut expected 2026 MP&E cash flow by about $135 million. The main currency exposures are the Australian dollar, Chinese yuan, euro, Indian rupee and Mexican peso.

The 2026 outlook as first given. The 10-K expected 2026 sales and revenues to grow around the top end of the company's 5–7% compound annual growth target. It assumed volume growth in all three primary segments and price realization of about 2% of sales and revenues. It put tariff costs at about $2.6 billion, $800 million more than in 2025. Restructuring was expected at $300–350 million, capital expenditures at about $3.5 billion and the tax rate at 23.0% excluding discrete items. The next section shows how that outlook has since moved.

Current period, three and nine months ended September 30, 2026

From the Form 10-Q for the quarter ended September 30, 2026, accession 0000018230-26-000057. Segment comparisons use 2025 figures recast for the Rail move. Quarterly cash flow and cash-deployment figures noted as such come from the third-quarter earnings release furnished on Form 8-K on October 29, 2026 (accession 0000018230-26-000052, Exhibit 99.1).

Third quarter. Sales and revenues rose 17% to $20.682 billion from $17.638 billion. The increase came from $2.2 billion of higher volume, mainly sales of equipment to end users, and $663 million of favorable price. Sales rose in all three primary segments. Operating profit rose 38% to $4.214 billion, mainly on volume, and included $128 million of IEEPA tariff recoveries. Operating margin was 20.4% against 17.3% (adjusted 20.6% against 17.5%). Profit rose 43% to $3.287 billion, or $7.13 per share against $4.88 (adjusted $7.20 against $4.95). Enterprise operating cash flow for the quarter was $4.4 billion (earnings release), and enterprise cash ended the quarter at $7.9 billion.

Nine months. Sales and revenues rose 21% to $58.640 billion, on $7.6 billion of volume and $1.7 billion of price. Operating profit rose 37% to $11.594 billion. Operating margin was 19.8% against 17.5% (adjusted 20.3% against 17.8%). Profit was $9.429 billion against $6.482 billion, or $20.36 per share against $13.69 (adjusted $20.90 against $13.91). The nine-month adjustments include a $139 million loss, recorded before the third quarter, on the divestiture of certain non-U.S. entities, with no related tax benefit.

Geography and dealer inventory. Third-quarter sales by region:

• North America rose 25% on volume and price.
• EAME rose 16% on volume and price.
• Latin America rose 15%, mostly because dealers added inventory.
• Asia/Pacific fell 3% on lower volume, driven by dealer inventory, and lower price, partly offset by a stronger Japanese yen.

Dealer inventory rose $800 million in the quarter (Q3 2025: $600 million). In Construction Industries it rose $300 million (Q3 2025: $600 million). Over nine months total dealer inventory rose $3.5 billion against $900 million a year earlier, $2.3 billion of it in Construction Industries (2025: $300 million).

Power & Energy. Third-quarter sales rose 18% to $8.784 billion, on $879 million of volume and $216 million of price:

• Power generation: $3.421 billion, up 30%, led by turbines and turbine services and large reciprocating engines, primarily for data centers.
• Oil and gas: $2.236 billion, up 13%, on aftermarket parts, gas-compression engines and turbines.
• Industrial: $1.631 billion, up 4%, mainly in North America.

Segment profit rose 31% to $2.143 billion, mainly on volume, and margin reached 24.4% against 21.9%. For nine months, sales were $24.053 billion (+19%) and profit was $5.620 billion (+26%). In the nine-month profit, $1.4 billion from volume and $536 million from price outweighed $657 million of higher period manufacturing costs. Nine-month margin was 23.4% against 22.1%.

Construction Industries. Third-quarter sales rose 18% to $7.983 billion, on $874 million of volume (mainly end-user demand) and $349 million of price. Sales rose in every region. Profit rose 33% to $1.831 billion. Volume added $356 million and price $349 million, against $252 million of unfavorable manufacturing costs that included higher freight. Margin was 22.9% against 20.4%. For nine months, sales were $23.490 billion (+30%) and profit was $5.313 billion (+46%). Margin was 22.6% against 20.1%, with $813 million of unfavorable manufacturing costs mainly from material costs, including tariffs.

Resource Industries. Third-quarter sales rose 15% to $4.615 billion, on $478 million of volume and $96 million of price:

• Mining, heavy construction and quarry and aggregates: $3.697 billion, up 22%, mostly because dealers added inventory.
• Rail: $832 million, down 5%, on fewer international locomotive deliveries, partly offset by higher rail services.

Profit rose 14% to $622 million, but margin slipped to 13.5% from 13.6%. Unfavorable manufacturing costs of $208 million, mainly material costs including tariffs, absorbed most of the $181 million volume gain and $96 million price gain, leaving Resource Industries with the lowest margin of the three primary segments. For nine months, sales rose 13% to $13.060 billion while profit fell 2% to $1.693 billion. In that period $584 million of unfavorable manufacturing costs and $137 million of higher SG&A/R&D, mostly compensation, outweighed $514 million from volume and $132 million from price. Nine-month margin was 13.0% against 15.0%.

Financial Products. Third-quarter segment revenues rose 9% to $1.177 billion. Higher average earning assets added $125 million, and lower average financing rates took away $38 million. Segment profit rose 10% to $264 million: earning assets added $52 million and a $34 million higher credit-loss provision took some back. Past dues at Cat Financial were 1.31% against 1.47% a year earlier. Net write-offs were $28 million against $40 million. The allowance for credit losses rose to $332 million, or 0.91% of finance receivables, from $294 million (0.84%) at June 30, 2026 and $284 million (0.86%) at year-end 2025. For nine months, revenues were $3.418 billion (+9%) and profit was $837 million (+19%).

Corporate items and below the line. Corporate items and eliminations expense was $453 million in the quarter, $131 million lower, mainly on favorable deferred-compensation fair-value changes. For nine months it was $1.300 billion, $301 million lower, mainly on timing differences that included most of the IEEPA recoveries, partly offset by higher corporate costs. MP&E interest expense was $129 million (Q3 2025: $133 million). Other income fell to $135 million from $208 million on total return swaps, partly offset by commodity hedges. The quarterly tax rate was 22.9% against 26.7%. The estimated annual rate excluding discrete items was 23.0%, against 24.0% in 2025. Restructuring costs were $41 million in the quarter and $284 million for nine months.

Tariffs and the IEEPA ruling. On February 20, 2026 the U.S. Supreme Court ruled that tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were unauthorized. From 2025 until U.S. Customs and Border Protection stopped collecting them in 2026, Caterpillar paid about $1.0 billion of IEEPA tariffs. It recorded recoveries of $128 million in the third quarter and $520 million over nine months, credited to cost of goods sold. These cover claims submitted and accepted through CBP's CAPE system. Further claims for the remaining IEEPA amounts were not considered probable at September 30, 2026. Separately, the balance sheet carries $1.0 billion in long-term receivables and $195 million in current receivables for recoveries of overpayments made during importation. CBP still has to review and process these, and their timing is uncertain.

Order backlog. Backlog reached about $78.1 billion at September 30, 2026. That is $6.0 billion more than at the end of the second quarter and up in all three primary segments, most in Power & Energy. About $32.6 billion was not expected to ship within twelve months.

Liquidity. Enterprise cash was $7.929 billion, down $2.051 billion from year end, and MP&E also held $1.572 billion of liquid debt securities and time deposits. Nine-month consolidated operating cash flow was $10.593 billion, up $2.445 billion. MP&E operating cash flow was $11.534 billion, against $7.745 billion a year earlier. Capital expenditures were $2.009 billion, so MP&E free cash flow was $9.525 billion (2025: $5.801 billion). MP&E investing outflows rose to $3.522 billion, primarily on the RPMGlobal acquisition, lower proceeds from securities and higher securities investment.

Total debt was $45.201 billion, up $1.871 billion from year end. MP&E debt was down $41 million and Financial Products debt up $2.434 billion. In August 2026 the three global credit facilities were renewed at an unchanged $11.500 billion: the 364-day facility now runs to August 2027, the three-year to August 2029 and the five-year to August 2031. They were undrawn at quarter end. Covenant net worth was $21.551 billion against the $9.000 billion minimum. Cat Financial's interest coverage was 1.53 to 1 (minimum 1.15) and its nine-month leverage 8.01 to 1 (maximum 10). The 10-Q reports Fitch and Moody's at "high-A" and S&P at "mid-A". Supplier-finance obligations in accounts payable were $1.19 billion, against $936 million at year end.

Capital returns. Caterpillar spent $7.745 billion of cash on buybacks in the first nine months, and the third quarter accounted for $1.2 billion of it (earnings release). Shares recognised as repurchased in the nine months were 9.1 million, at an aggregate cost of $7.1 billion, and 2.2 million of them came in the third quarter at $2.1 billion. The third-quarter figure includes about 0.7 million shares delivered on final settlement of accelerated share repurchase (ASR) agreements entered into in the first half. $7.192 billion remained under the 2024 authorization, and basic shares outstanding were about 458 million. Dividends paid were $2.148 billion for nine months.

Acquisition completed in the period. The RPMGlobal Holdings Limited mining software business, bought on February 17, 2026 for about $733 million net of acquired cash, reports in Resource Industries; its preliminary allocation assigns $546 million to goodwill.

Management's outlook as of the third-quarter report.

• Full year 2026: Management still expects sales and revenues growth in the mid-to-high teens. That is well above the 10-K's top-of-5–7% framing. It cites strong growth in sales of equipment to end users and strong order rates in all three primary segments, higher output from capacity expansion that remains on schedule, and strong services revenues growth. Excluding about $520 million of IEEPA recoveries, tariff costs are expected at about $2.2 billion, against $2.6 billion in the 10-K, and no further IEEPA recoveries are assumed. Restructuring is now expected at about $300 million (10-K: $300–350 million) and capital expenditures at about $3.3 billion (10-K: about $3.5 billion). The tax rate excluding discrete items is expected at 23.0%. Volume and price gains are expected to be partly offset by unfavorable manufacturing costs and higher SG&A/R&D.
• Fourth quarter 2026: Management expects moderate sales growth against the fourth quarter of 2025:
  • Power & Energy: moderate sales growth as capacity ramps.
  • Construction Industries: sales similar to a year earlier, because a seasonal dealer inventory drawdown of about $1.6 billion (Q4 2025: $600 million) offsets price. Year-end 2026 dealer inventory is still expected to exceed year-end 2025, ahead of expected strong 2027 end-user demand.
  • Resource Industries: strong sales growth, helped by the timing of commissioning.

Fourth-quarter tariff costs are expected at about $600 million, about $200 million less than in the fourth quarter of 2025. About 50% of tariff costs fall in Construction Industries and 25% each in Power & Energy and Resource Industries.

• End markets: Power generation demand remains strong, driven by data center build-out for cloud computing and generative AI and by rising prime-power demand. Oil and gas is growing moderately, with strong gas-compression demand. Construction is supported by IIJA funding, critical infrastructure and data centers in North America. Europe is stable, Africa strong, the Middle East challenged and China moderate. In mining, copper, gold and Canadian oil sands activity are driving strong growth in sales of equipment to end users, and rebuild activity is expected to rise moderately. Rail services should grow, but locomotive deliveries are now expected to be slightly lower in 2026 than in 2025 because of delivery timing. The 10-K had expected them to grow.

There have been no significant changes to critical accounting estimates since the 2025 Form 10-K.

Subsequent events

From the Form 10-Q for the quarter ended September 30, 2026, accession 0000018230-26-000057 (Note 23, Note 12 and Item 2).

• Acquisition of John Fabick Tractor Company. On October 31, 2026 Caterpillar completed its previously announced acquisition of 100% of the equity of John Fabick Tractor Company (Fabick). Fabick is a Caterpillar dealer headquartered in Fenton, Missouri, with more than 100 years of history. Its territory covers portions of Missouri and Illinois, all of Wisconsin and the Upper Peninsula of Michigan.
  • Price: $1.24 billion in cash paid at closing, plus an estimated $165 million in cash due when certain holdback periods expire. The price remains subject to working-capital and other post-closing adjustments. It also includes pre-existing relationship transactions, mainly trade and finance receivables owed by Fabick, which are effectively settled on consolidation.
  • Rationale: Caterpillar describes the deal as a customer-focused decision to support a seamless transition of Fabick's ownership while keeping local service.
  • Accounting: The purchase-price allocation was not available when the 10-Q was filed. It will appear in the 2026 Form 10-K.
• Final ASR settlement. In October 2026 the last first-quarter 2026 ASR agreement settled, and Caterpillar received about 0.4 million additional shares.
• Dividend. In October 2026 the Board kept the quarterly dividend at $1.63 per share.

Filings that contain financial statements

Each earnings release below is furnished as Exhibit 99.1 to a Form 8-K and carries a condensed consolidated statement of results of operations, statement of financial position, statement of cash flow, and supplemental consolidating data (Machinery, Power & Energy and Financial Products).

• Form 8-K filed 2026-10-29, accession 0000018230-26-000052: third quarter 2026 (three and nine months ended September 30, 2026), with the comparable 2025 periods.
• Form 8-K filed 2026-08-04, accession 0000018230-26-000040: second quarter 2026 (three and six months ended June 30, 2026).
• Form 8-K filed 2026-04-30, accession 0000018230-26-000017: first quarter 2026 (three months ended March 31, 2026).
• Form 8-K filed 2026-01-29, accession 0000018230-26-000003: fourth quarter and full year 2025.
• Form 8-K filed 2026-03-26, accession 0000018230-26-000013: unaudited recast quarterly segment sales and profit for prior periods (segment data only, not full statements); see the segment realignment entry below.

Quarterly results and outlook

• 2026-10-29 - Third-quarter 2026 results (0000018230-26-000052). Sales and revenues rose 17% to $20.7 billion ($20.682 billion versus $17.638 billion), on higher sales volume of $2.2 billion and favorable price realization of $663 million. Operating profit was $4.214 billion, up 38%; operating margin was 20.4% (adjusted 20.6%) versus 17.3% a year earlier. Profit per share was $7.13 (adjusted $7.20) versus $4.88 (adjusted $4.95). Operating profit included $128 million of IEEPA tariff recoveries. Enterprise operating cash flow was $4.4 billion and enterprise cash ended at $7.9 billion; the company deployed $1.2 billion on share repurchases and $0.7 billion on dividends. Management cited a record backlog. Segment profit: Power & Energy $2.143 billion (+31%), Construction Industries $1.831 billion (+33%), Resource Industries $622 million (+14%).
• 2026-08-04 - Second-quarter 2026 results (0000018230-26-000040). Sales and revenues rose 24% to $20.5 billion, the first quarter above $20 billion in company history. Profit per share was $7.77 (adjusted $8.17) versus $4.62 (adjusted $4.72). Operating margin was 20.9% (adjusted 21.9%). Operating profit included $392 million of expected IEEPA tariff recoveries. Results carried restructuring costs of $139 million tied to the divestiture of certain non-U.S. entities, with no related tax benefit. Enterprise cash ended at $6.7 billion; $2.2 billion went to repurchases and dividends.
• 2026-04-30 - First-quarter 2026 results (0000018230-26-000017). Sales and revenues rose 22% to $17.4 billion. Profit per share was $5.47 (adjusted $5.54) versus $4.20 (adjusted $4.25). Operating margin was 17.7% (adjusted 18.0%) versus 18.1% (adjusted 18.3%); the release attributed unfavorable manufacturing costs mainly to higher tariff costs. The company deployed $5.7 billion on repurchases ($5.0 billion) and dividends ($0.7 billion). Enterprise cash ended at $4.1 billion.
• 2026-01-29 - Fourth-quarter and full-year 2025 results (0000018230-26-000003). Full-year 2025 sales and revenues were $67.6 billion, the highest in company history; fourth quarter was $19.1 billion (up 18%). Full-year profit per share was $18.81 (adjusted $19.06) versus $22.05 (adjusted $21.90) in 2024. Fourth-quarter profit per share was $5.12 (adjusted $5.16). Fourth-quarter operating margin fell to 13.9% (adjusted 15.6%) from 18.0% (adjusted 18.3%), on higher tariffs and higher restructuring costs, mainly inventory write-downs in the Rail division. Full-year enterprise operating cash flow was $11.7 billion; $7.9 billion was returned through repurchases ($5.2 billion) and dividends ($2.7 billion).

Segment reporting change

• 2026-03-26 - Rail realignment, recast segment data (0000018230-26-000013). As previously announced on November 4, 2025, the Rail division moved from Power & Energy to Resource Industries effective January 1, 2026. The filing furnishes unaudited recast historical quarterly segment information, which also reflects other transfers of responsibilities between Resource Industries and the All Other segment. Consolidated results are unaffected. A companion exhibit states that the segment assumptions communicated on the January 29, 2026 earnings call would not have materially changed on the new structure; it is not a reaffirmation or update of guidance.

Mergers and acquisitions

• RPMGlobal Holdings Limited (mining software), closed. The company's 10-Q for the quarter ended September 30, 2026 (accession 0000018230-26-000057) states that Caterpillar completed the acquisition on February 17, 2026, at a purchase price of about $733 million net of $53 million of acquired cash, financed with available cash and reported within Resource Industries. The 2025 annual report (accession 0000018230-26-000008) had described it as court-approved on February 3, 2026 with an expected price of about $790 million excluding cash acquired. No 8-K covers the signing or the closing.
• John Fabick Tractor Company (Cat dealer), closed after quarter end. The 10-Q (accession 0000018230-26-000057, Note 23) states that on October 31, 2026 Caterpillar completed its "previously announced" acquisition of 100% of the equity of Fabick, a dealer covering portions of Missouri and Illinois, all of Wisconsin and the Upper Peninsula of Michigan. Preliminary price: $1.24 billion cash paid at closing plus an estimated $165 million payable after holdback periods expire, subject to working capital and other adjustments. Initial purchase accounting was not yet available. The 10-Q describes the deal as previously announced, but no Form 8-K filed in 2026 announces it, and the 10-Q gives no announcement date.
• Divestiture of certain non-U.S. entities. The second-quarter 2026 release (0000018230-26-000040) records a $139 million second-quarter loss on the divestiture of certain non-U.S. entities, with no related tax benefit; the 10-Q (0000018230-26-000057) carries it in the nine-month adjustments. No 8-K describes the transaction itself.

Capital actions

• 2026-06-10 - Dividend increase (8-K filed 2026-06-11, 0001104659-26-072929). The Board raised the quarterly dividend by 12 cents, or 8%, to $1.63 per share from $1.51, payable August 19, 2026 to holders of record July 20, 2026. The company said it expects to keep returning substantially all Machinery, Power & Energy free cash flow to shareholders over time.
• Share repurchases (10-Q, 0000018230-26-000057). For the nine months ended September 30, 2026 the company repurchased 9.1 million shares for $7.1 billion (third quarter: 2.2 million shares, $2.1 billion). It entered accelerated share repurchase agreements of $4.50 billion in the first quarter and $1.00 billion in the second quarter. About $7.2 billion remained under the $20.0 billion 2024 authorization at September 30, 2026.
• 2026-08-27 - Credit facilities renewed (8-K filed 2026-09-01, 0001104659-26-104197). Caterpillar and Cat Financial entities entered a new $3.5 billion 364-day unsecured revolving facility expiring August 26, 2027, and amended and restated a $3.0 billion three-year facility (now expiring August 27, 2029) and a $5.0 billion five-year facility (now expiring August 27, 2031), totaling $11.5 billion. Nothing was drawn. Covenants: Caterpillar must keep consolidated net worth of at least $9 billion; Cat Financial must keep interest coverage above 1.15 to 1 and a leverage ratio no greater than 10.0 to 1. The 364-day facility replaces the 2025 364-day facility.

Management and board changes

• 2026-10-15 - Resource Industries leadership (0001104659-26-116198). Group president Denise Johnson transitions on November 1, 2026 and will retire effective February 1, 2027 after moving to an advisory role. Derrick York, president of Solar Turbines and a senior vice president, was appointed group president of Resource Industries effective November 1, 2026 (Board action October 14, 2026).
• 2026-04-08 - Chief Financial Officer succession (8-K filed 2026-04-10, 0001104659-26-042062). Kyle Epley, senior vice president for Global Finance Services, became CFO effective May 1, 2026, succeeding Andrew Bonfield, who remains an employee through retirement on October 1, 2026. Epley's salary rose to $930,500, with an annual incentive target of 115% of base salary and a long-term incentive grant valued at $1.8 million.
• 2026-04-07 - Director nomination (8-K filed 2026-04-13, 0001104659-26-042621). The Board nominated Lynn Good as a director for the 2026 Annual Meeting, with appointment effective August 1, 2026. The June 10, 2026 annual meeting elected ten directors, including Good; ratified PricewaterhouseCoopers LLP; approved executive compensation on an advisory basis; and rejected a shareholder proposal on action by written consent (8-K filed 2026-06-11, 0001104659-26-072929).
• 2026-01-06 - Chairman transition (0001104659-26-001346). Executive Chairman D. James Umpleby III resigned from the Board effective April 1, 2026; CEO Joseph Creed became Chairman on that date, and the Board shrank from ten to nine directors. Amended and restated bylaws renamed the "Presiding Director" the "Lead Independent Director" (Debra Reed-Klages continues in the role).

Tariffs

• The 10-Q (0000018230-26-000057) reports that the U.S. Supreme Court ruled on February 20, 2026 that IEEPA tariffs were unauthorized. The company's IEEPA tariff costs totaled about $1.0 billion; it recorded recoveries of $128 million in the third quarter and $520 million for the nine months, in cost of goods sold. It treats further recoveries as not yet probable. Outlook given in the 10-Q: full-year 2026 tariff costs of about $2.2 billion excluding recoveries, and about $600 million in the fourth quarter; sales and revenues growth in the mid-to-high teens for 2026; moderate growth in the fourth quarter; restructuring costs of about $300 million and capital expenditures of about $3.3 billion; an effective tax rate of 23.0% excluding discrete items.

Other filings

Earlier Form 8-Ks in the window (2025-08-05 and 2025-10-29 earnings releases, 0000018230-25-000037 and 0000018230-25-000043; 2025-09-03 credit facility exhibits, 0001104659-25-087011, the predecessor of the August 2026 facilities) are reflected only through year-ago comparisons. The 2025-08-28 8-K (0001104659-25-084800) updated the estimated 2025 tariff impact to about $500 million to $600 million for the third quarter of 2025 and $1.5 billion to $1.8 billion for the full year 2025.

About this file

CAT annual income statement, balance sheet and cash flow

Taken from the SEC filings and normalized to actual dollars.

• Segment results: basis, FY2024, FY2025. recast for the January 1, 2026 move of the Rail division from Power & Energy to Resource Industries

CAT quarterly income statement, balance sheet and cash flow

Taken from the SEC filings and normalized to actual dollars.

CAT year-to-date income statement and cash flow

Taken from the SEC filings and normalized to actual dollars.

CAT trailing twelve month income statement and cash flow

Derived by AI from the figures the filings report. No filing prints these, so none of them is linked.

• Derivation. fiscal 2025 plus the nine months ended September 30, 2026, less the nine months ended September 30, 2025

Adjustments

Notes

• Sources: the FY2025 Form 10-K (accession 0000018230-26-000008, filed February 13, 2026, fiscal year ended December 31, 2025) and the third-quarter 2026 Form 10-Q (accession 0000018230-26-000057, filed November 4, 2026, period ended September 30, 2026), together with Caterpillar's recast historical segment information filed March 26, 2026 (accession 0000018230-26-000013, Exhibit 99.1), which supplies the FY2025 and FY2024 segment figures on the current segment basis. Caterpillar's fiscal year is the calendar year.
• Periods shown: the three fiscal years the FY2025 10-K presents (2025, 2024 and 2023), the third quarters of 2026 and 2025, the nine months ended September 30, 2026 with the nine months ended September 30, 2025 for comparison, and the twelve months ended September 30, 2026. The third-quarter 10-Q prints three-month columns only for the third quarter of each year, so the first and second quarters are not shown separately here; they are presented in Caterpillar's earlier quarterly reports.
• Schema: Caterpillar is an industrial manufacturer that also owns a captive finance business, so a single industrial template would hide half of it. Alongside the consolidated statements, every period carries the company's own supplemental consolidating data, which splits the group into Machinery, Power & Energy (MP&E - Caterpillar and its subsidiaries excluding Financial Products) and Financial Products (mainly Caterpillar Financial Services Corporation, 'Cat Financial', and Caterpillar Insurance Holdings). Cat Financial credit-quality measures are carried in their own block.
• Line-item names: 'net_income' is the line Caterpillar labels 'Profit', which is profit attributable to common shareholders. 'operating_profit' is the filing's 'Operating profit'. Caterpillar does not present a gross profit subtotal, so none is shown.
• From pre-tax profit to Profit: Caterpillar prints four lines between the provision for income taxes and the bottom-line 'Profit', and all four are carried here. 'profit_of_consolidated_companies' is profit before taxes less the provision for income taxes; 'equity_in_profit_loss_of_unconsolidated_affiliated_companies' is Caterpillar's share of the results of affiliated companies it does not consolidate; the two together are 'profit_of_consolidated_and_affiliated_companies'; and 'profit_loss_attributable_to_noncontrolling_interests' is the share belonging to outside owners of consolidated subsidiaries, which the statement deducts ('Less:'). That last line is carried with the sign the statement prints, so a negative amount is a loss attributable to those outside owners and therefore raises Profit. Every period reconciles: for the third quarter of 2026, $4,220 million of profit before taxes less $968 million of income taxes is $3,252 million; plus $34 million is $3,286 million; less negative $1 million is $3,287 million. The amounts are small in every period shown, but without them the income statement does not add up.
• Cash-flow sign convention: capital expenditures, dividends paid and share repurchases are recorded here as positive amounts of cash spent; the statements print them in parentheses as outflows. 'share_repurchases' is the cash flow statement's 'Payments to purchase common stock'.
• 'capex' is the sum of the two capital-spending lines on the cash flow statement - 'Capital expenditures - excluding equipment leased to others' and 'Expenditures for equipment leased to others' - and 'free_cash_flow' is operating cash flow less that total. This is a whole-company measure and includes Cat Financial's spending on equipment leased to others. For the nine months ended September 30, 2026 the two lines total $3,226 million, which is the 'Total capital expenditures' the 10-Q's segment note also reports.
• 'mpe_free_cash_flow' is Caterpillar's own measure, taken from the reconciliation it publishes: MP&E net cash provided by operating activities less MP&E capital expenditures, excluding discretionary pension and other postretirement benefit plan contributions. For the nine months ended September 30, 2026 it was $9,525 million ($11,534 million less $2,009 million), against $5,801 million a year earlier. It is not the same as consolidated free cash flow, and the company's stated goal is to return substantially all of it to shareholders over time.
• The 10-Q presents cash flow only for the nine months, so there are no quarterly cash-flow figures; the nine-month and trailing-twelve-month blocks carry cash flow instead. Caterpillar's third-quarter 2026 results release (accession 0000018230-26-000052, Exhibit 99.1) states enterprise operating cash flow of $4.4 billion for the quarter, a rounded figure for which no three-month statement is printed.
• Trailing twelve months is fiscal 2025 plus the nine months ended September 30, 2026, less the nine months ended September 30, 2025. Its diluted earnings per share is the sum of the per-share amounts those periods reported ($18.81 + $20.36 - $13.69 = $25.48); a weighted-average computation over the twelve months would differ slightly.
• Segment reporting: the Rail realignment. Effective January 1, 2026, responsibility for diesel-electric, hybrid and battery-electric locomotives and components and other rail-related products and services, including remanufacturing and leasing, moved from Power & Energy to Resource Industries. Caterpillar recast its 2025 and 2024 segment results for that move and published them on March 26, 2026 (accession 0000018230-26-000013, Exhibit 99.1), and the third-quarter 2026 10-Q states that segment information for 2025 has been retrospectively adjusted to conform to the 2026 presentation. Every segment figure carried here is on that recast basis: the FY2025 and FY2024 rows are taken from the recast exhibit, and the 2025 and 2026 quarters and nine-month periods from the 10-Q (the 10-Q's third-quarter 2025 segment figures agree with the recast exhibit). The move is large. On the recast basis FY2025 Resource Industries sales and revenues are $15,920 million and Power & Energy $28,624 million; the FY2025 10-K, published before the recast, showed $12,474 million and $32,201 million for the same year with Rail inside Power & Energy. Segment profit moved with the sales. After the move, Power & Energy's Industrial application includes marine applications and product support of on-highway engines, and Resource Industries reports Rail external sales separately ($832 million in the third quarter of 2026). No FY2023 segment figures are shown: the recast covers 2025 and 2024 only, and the FY2023 segment figures the filings otherwise provide still have Rail inside Power & Energy, so they are not comparable with 2024 onward.
• Segment reporting: an earlier and separate realignment took effect July 1, 2025. Responsibility for wear and maintenance components and related parts moved from the All Other Segment to Resource Industries; responsibility for electronics and control systems moved from Resource Industries to the All Other Segment; and research and development for automation, electronics and software for machines and engines moved from Resource Industries to the All Other Segment. Caterpillar retrospectively adjusted 2024 and 2023 for those changes in the FY2025 10-K, and the recast figures used here already reflect them.
• Segment naming: the FY2025 10-K and the third-quarter 2026 10-Q call the segment Power & Energy and the industrial line of business Machinery, Power & Energy (MP&E), and use those names for every period they present. Caterpillar's quarterly results releases used the names Energy & Transportation and Machinery, Energy & Transportation (ME&T) through the third-quarter 2025 release.
• Segment profit is measured on a pretax basis. Construction Industries, Resource Industries and Power & Energy exclude most interest expense and certain other income and expense; Financial Products Segment profit includes other income and expense. The four reportable segments do not sum to consolidated operating profit - the All Other Segment, Corporate Items and Eliminations, and consolidating adjustments reconcile the difference, and are not carried as separate line items here. Segment sales and revenues include inter-segment sales.
• In the supplemental consolidating data, Financial Products is shown before elimination of transactions with MP&E, so 'financial_products_total_revenues' is larger than the consolidated 'Revenues of Financial Products' line (for the third quarter of 2026, $1,261 million against $1,028 million).
• 'total_debt' is short-term borrowings plus long-term debt due within one year plus long-term debt due after one year, across both MP&E and Financial Products: $45,201 million at September 30, 2026, the total the 10-Q's liquidity discussion also gives. Most of the debt funds the finance portfolio: $34,551 million of it sat at Financial Products. 'total_finance_receivables' is current plus long-term finance receivables as presented on the statement of financial position.
• Balance-sheet coverage follows what the filings print. The FY2025 10-K's statement of financial position shows December 31, 2025 and December 31, 2024 only, so FY2023 carries only total shareholders' equity, taken from the statement of changes in shareholders' equity. The 10-Q shows September 30, 2026 and December 31, 2025 only, so the third quarter of 2025 likewise carries only total shareholders' equity ($20,659 million at September 30, 2025) from the equity statement. The nine-month block repeats the September 30, 2026 balance sheet so that it stands on its own. Total shareholders' equity as reported includes noncontrolling interests, which are immaterial (negative $1 million at September 30, 2026).
• Cat Financial credit quality: 'provision_for_credit_losses', 'allowance_for_credit_losses' and 'finance_receivables' come from the allowance rollforward in the financial statement notes and cover the customer and dealer portfolios. 'past_dues_percent' and 'write_offs_net_of_recoveries' are as stated in Management's Discussion and Analysis; a finance receivable is treated as past due when any installment is over 30 days past due.
• Share repurchases and common stock: in the nine months ended September 30, 2026 Caterpillar paid $7,745 million to purchase common stock, while the equity statement records $7,070 million of shares repurchased into treasury stock; the $675 million difference is the net amount of outstanding authorized accelerated share repurchases recorded against common stock for the nine months, which includes a $925 million settlement in the third quarter. Common stock at paid-in amount was $6,658 million at September 30, 2026, against $7,181 million at December 31, 2025.
• Every figure here was read off the statements as printed in the filings cited; no adjustment for currency, share splits or depositary ratios applies - Caterpillar reports in U.S. dollars, has had no stock split since at least 2018, and its common stock trades directly on the New York Stock Exchange.

Uncertainties

• No quarterly cash flow is available: the 10-Q presents cash flow for the nine months only. The third quarter of 2025 carries only total shareholders' equity from the balance sheet, because the 10-Q's statement of financial position does not print a September 30, 2025 column.
• The FY2025 10-K's supplemental consolidating financial position and cash flow tables cover 2025 and 2024 only, so the MP&E versus Financial Products split of assets, liabilities, equity and cash flow is absent for FY2023.
• No FY2023 segment sales or profit is carried. Caterpillar's recast of historical segment results for the January 1, 2026 move of the Rail division covers 2025 and 2024 only, so there is no FY2023 figure on the basis the rest of the segment record uses, and the pre-recast FY2023 figures would not be comparable with the years after it.
• Trailing-twelve-month diluted earnings per share is a sum of reported per-share amounts rather than a weighted-average calculation, and no trailing-twelve-month share count is stated for that reason.
• Cat Financial's allowance for credit losses as described in Management's Discussion and Analysis is on a slightly wider basis than the customer-plus-dealer allowance rollforward in the financial statement notes, which is the figure carried here. Management's Discussion and Analysis gives $332 million, or 0.91 percent of finance receivables, at September 30, 2026 and $284 million, or 0.86 percent, at year-end 2025, against the $324 million and $277 million carried for those dates.
• Segment sales and profit for the All Other Segment and for Corporate Items and Eliminations are not carried, so the segment lines shown do not add to the consolidated totals.

Company details

Fiscal period

Source filings