Caterpillar Reports Third-Quarter 2025 Results

Third Quarter

($ in billions except profit per share)

2025

2024

Sales and Revenues

$17.6

$16.1

Profit Per Share

$4.88

$5.06

Adjusted Profit Per Share

$4.95

$5.17

Please see a reconciliation of GAAP to non-GAAP financial measures in the appendix on pages 12 and 13.

IRVING, Texas, Oct. 29, 2025 /PRNewswire/ -- Caterpillar Inc. (NYSE: CAT) announced third-quarter 2025 results.

"Solid performance from our team generated strong results this quarter, driven by resilient demand and focused execution across our three primary segments," said Caterpillar CEO Joe Creed. "Our team's continued discipline in a dynamic environment, coupled with a growing backlog, positions us for sustained momentum and long-term profitable growth."

Sales and revenues for the third quarter of 2025 were $17.6 billion, a 10% increase compared with $16.1 billion in the third quarter of 2024. The increase was primarily due to higher sales volume. Higher sales volume was mainly driven by higher sales of equipment to end users.

Operating profit margin was 17.3% for the third quarter of 2025, compared with 19.5% for the third quarter of 2024. Adjusted operating profit margin was 17.5% for the third quarter of 2025, compared with 20.0% for the third quarter of 2024. Third-quarter 2025 profit per share was $4.88, compared with third-quarter 2024 profit per share of $5.06. Adjusted profit per share in the third quarter of 2025 was $4.95, compared with third-quarter 2024 adjusted profit per share of $5.17. Third-quarter 2025 profit per share of $4.88 reflected an increase in the estimated global annual effective tax rate to 24.0%, and a net discrete tax charge in the quarter. For the third quarter of 2025 and 2024, adjusted operating profit margin and adjusted profit per share excluded restructuring costs.

For the third quarter of 2025, enterprise operating cash flow was $3.7 billion, and the company ended the third quarter with $7.5 billion of enterprise cash. In the quarter, the company deployed $0.7 billion of cash for dividends and $0.4 billion of cash for repurchases of Caterpillar common stock.

CONSOLIDATED RESULTS

Consolidated Sales and Revenues

Consolidated Sales and Revenues Comparison

Third Quarter 2025 vs. Third Quarter 2024

To access this chart, go to https://investors.caterpillar.com/financials/quarterly-results/default.aspx for the downloadable version of Caterpillar third-quarter 2025 earnings

The chart above graphically illustrates reasons for the change in consolidated sales and revenues between the third quarter of 2024 (at left) and the third 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 third quarter of 2025 were $17.638 billion, an increase of $1.532 billion, or 10%, compared with $16.106 billion in the third quarter of 2024. The increase was primarily due to higher sales volume of $1.554 billion. The increase in sales volume was mainly driven by higher sales of equipment to end users.

Sales were higher across the three primary segments.

Sales and Revenues by Segment

(Millions of dollars)

Third

Quarter

2024

Sales

Volume

Price

Realization

Currency

Inter-Segment /

Other

Third

Quarter

2025

Change

Construction Industries

$ 6,345

$ 568

$ (262)

$ 69

$ 40

$ 6,760

$ 415

7 %

Resource Industries

3,048

138

(61)

(19)

3,110

2 %

Energy & Transportation

7,187

870

132

156

8,397

1,210

17 %

All Other Segment

—

(1)

1 %

Corporate Items and Eliminations

(1,421)

(24)

—

(176)

(1,614)

(193)

Machinery, Energy & Transportation

15,231

1,554

(191)

132

—

16,726

1,495

10 %

Financial Products Segment

1,034

—

1,076

4 %

Corporate Items and Eliminations

(159)

—

(5)

(164)

(5)

Financial Products Revenues

875

—

912

4 %

Consolidated Sales and Revenues

$ 16,106

$ 1,554

$ (191)

$ 132

$ 37

$ 17,638

$ 1,532

10 %

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

Third Quarter 2025

Construction Industries

$ 3,912

8 %

$ 654

(1 %)

$ 1,217

6 %

$ 904

3 %

$ 6,687

6 %

$ 73

121 %

$ 6,760

7 %

Resource Industries

1,152

1 %

543

9 %

541

22 %

799

(8 %)

3,035

3 %

(20 %)

3,110

2 %

Energy & Transportation

4,045

26 %

559

24 %

1,367

(8 %)

1,088

27 %

7,059

18 %

1,338

13 %

8,397

17 %

All Other Segment

400 %

—

100 %

(57 %)

25 %

(2 %)

1 %

Corporate Items and Eliminations

(59)

(3)

(5)

(65)

(1,549)

(1,614)

Machinery, Energy & Transportation

9,055

14 %

1,758

10 %

3,124

1 %

2,789

7 %

16,726

10 %

—

— %

16,726

10 %

Financial Products Segment

722

4 %

118

22 %

130

— %

106

(5 %)

1,076

4 %

—

— %

1,076

4 %

Corporate Items and Eliminations

(96)

(26)

(23)

(19)

(164)

—

(164)

Financial Products Revenues

626

4 %

21 %

107

(2 %)

(1 %)

912

4 %

—

— %

912

4 %

Consolidated Sales and Revenues

$ 9,681

13 %

$ 1,850

10 %

$ 3,231

1 %

$ 2,876

7 %

$ 17,638

10 %

$ —

— %

$ 17,638

10 %

Third Quarter 2024

Construction Industries

$ 3,629

$ 658

$ 1,150

$ 875

$ 6,312

$ 33

$ 6,345

Resource Industries

1,141

499

444

870

2,954

3,048

Energy & Transportation

3,214

449

1,486

856

6,005

1,182

7,187

All Other Segment

(1)

Corporate Items and Eliminations

(42)

(3)

(12)

(48)

(1,373)

(1,421)

Machinery, Energy & Transportation

7,943

1,602

3,090

2,596

15,231

—

15,231

Financial Products Segment

695

130

112

1,034

—

1,034

Corporate Items and Eliminations

(93)

(21)

(24)

(159)

—

(159)

Financial Products Revenues

602

109

875

—

875

Consolidated Sales and Revenues

$ 8,545

$ 1,678

$ 3,199

$ 2,684

$ 16,106

$ —

$ 16,106

Consolidated Operating Profit

Consolidated Operating Profit Comparison

Third Quarter 2025 vs. Third Quarter 2024

To access this chart, go to https://investors.caterpillar.com/financials/quarterly-results/default.aspx for the downloadable version of Caterpillar third-quarter 2025 earnings.

The chart above graphically illustrates reasons for the change in consolidated operating profit between the third quarter of 2024 (at left) and the third 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, Energy & Transportation's other operating (income) expenses.

Operating profit for the third quarter of 2025 was $3.052 billion, a decrease of $95 million, or 3%, compared with $3.147 billion in the third quarter of 2024. The decrease was mainly due to unfavorable manufacturing costs of $686 million, unfavorable price realization of $191 million and higher selling, general and administrative (SG&A) and research and development (R&D) expenses of $129 million. This was partially offset by the profit impact of higher sales volume of $700 million, favorable other operating income/expense of $180 million and lower restructuring costs of $33 million. Unfavorable manufacturing costs largely reflected the impact of higher tariffs. The increase in SG&A/R&D expenses was primarily driven by higher compensation expenses, including higher short-term incentive compensation expense. Favorable other operating income/expense included proceeds from an insurance claim.

Profit (Loss) by Segment

(Millions of dollars)

Third Quarter

2025

Third Quarter

2024

Change

Construction Industries

$ 1,377

$ 1,486

$ (109)

(7 %)

Resource Industries

499

619

(120)

(19 %)

Energy & Transportation

1,678

1,433

245

17 %

All Other Segment

(6)

(13)

54 %

Corporate Items and Eliminations

(546)

(427)

(119)

Machinery, Energy & Transportation

3,002

3,098

(96)

(3 %)

Financial Products Segment

241

246

(5)

(2 %)

Corporate Items and Eliminations

(38)

(30)

(8)

Financial Products

203

216

(13)

(6 %)

Consolidating Adjustments

(153)

(167)

Consolidated Operating Profit

$ 3,052

$ 3,147

$ (95)

(3 %)

Other Profit/Loss and Tax Items

CONSTRUCTION INDUSTRIES

(Millions of dollars)

Segment Sales

Third

Quarter 2024

Sales

Volume

Price

Realization

Currency

Inter-

Segment

Third

Quarter 2025

Change

Total Sales

$ 6,345

$ 568

$ (262)

$ 69

$ 40

$ 6,760

$ 415

7 %

Sales by Geographic Region

Third

Quarter 2025

Third

Quarter 2024

Change

North America

$ 3,912

$ 3,629

$ 283

8 %

Latin America

654

658

(4)

(1 %)

EAME

1,217

1,150

6 %

Asia/Pacific

904

875

3 %

External Sales

6,687

6,312

375

6 %

Inter-segment

121 %

Total Sales

$ 6,760

$ 6,345

$ 415

7 %

Segment Profit

Third

Quarter 2025

Third

Quarter 2024

Change

Segment Profit

$ 1,377

$ 1,486

$ (109)

(7 %)

Segment Profit Margin

20.4 %

23.4 %

(3.0 pts)

Construction Industries' total sales were $6.760 billion in the third quarter of 2025, an increase of $415 million, or 7%, compared with $6.345 billion in the third quarter of 2024. The increase in sales was mainly due to higher sales volume of $568 million and favorable currency impacts of $69 million, primarily related to the euro, partially offset by unfavorable price realization of $262 million. Higher sales volume was primarily driven by higher sales of equipment to end users.

Construction Industries' segment profit was $1.377 billion in the third quarter of 2025, a decrease of $109 million, or 7%, compared with $1.486 billion in the third quarter of 2024. The decrease was primarily due to unfavorable price realization of $262 million and unfavorable manufacturing costs of $174 million, partially offset by the profit impact of higher sales volume of $313 million. Unfavorable manufacturing costs largely reflected the impact of higher tariffs.

RESOURCE INDUSTRIES

(Millions of dollars)

Segment Sales

Third

Quarter 2024

Sales

Volume

Price

Realization

Currency

Inter-

Segment

Third

Quarter 2025

Change

Total Sales

$ 3,048

$ 138

$ (61)

$ 4

$ (19)

$ 3,110

$ 62

2 %

Sales by Geographic Region

Third

Quarter 2025

Third

Quarter 2024

Change

North America

$ 1,152

$ 1,141

$ 11

1 %

Latin America

543

499

9 %

EAME

541

444

22 %

Asia/Pacific

799

870

(71)

(8 %)

External Sales

3,035

2,954

3 %

Inter-segment

(19)

(20 %)

Total Sales

$ 3,110

$ 3,048

$ 62

2 %

Segment Profit

Third

Quarter 2025

Third

Quarter 2024

Change

Segment Profit

$ 499

$ 619

$ (120)

(19 %)

Segment Profit Margin

16.0 %

20.3 %

(4.3 pts)

Resource Industries' total sales were $3.110 billion in the third quarter of 2025, an increase of $62 million, or 2%, compared with $3.048 billion in the third quarter of 2024. The increase was primarily due to higher sales volume of $138 million, partially offset by unfavorable price realization of $61 million. The increase in sales volume was mainly driven by higher sales of equipment to end users.

Resource Industries' segment profit was $499 million in the third quarter of 2025, a decrease of $120 million, or 19%, compared with $619 million in the third quarter of 2024. The decrease was mainly due to unfavorable manufacturing costs of $92 million and unfavorable price realization of $61 million, partially offset by the profit impact of higher sales volume of $49 million. Unfavorable manufacturing costs largely reflected the impact of higher tariffs.

ENERGY & TRANSPORTATION

(Millions of dollars)

Segment Sales

Third

Quarter 2024

Sales

Volume

Price

Realization

Currency

Inter-

Segment

Third

Quarter 2025

Change

Total Sales

$ 7,187

$ 870

$ 132

$ 52

$ 156

$ 8,397

$ 1,210

17 %

Sales by Application

Third

Quarter 2025

Third

Quarter 2024

Change

Oil and Gas

$ 1,979

$ 1,656

$ 323

20 %

Power Generation

2,634

2,011

623

31 %

Industrial

1,077

1,028

5 %

Transportation

1,369

1,310

5 %

External Sales

7,059

6,005

1,054

18 %

Inter-segment

1,338

1,182

156

13 %

Total Sales

$ 8,397

$ 7,187

$ 1,210

17 %

Segment Profit

Third

Quarter 2025

Third

Quarter 2024

Change

Segment Profit

$ 1,678

$ 1,433

$ 245

17 %

Segment Profit Margin

20.0 %

19.9 %

0.1 pts

Energy & Transportation's total sales were $8.397 billion in the third quarter of 2025, an increase of $1.210 billion, or 17%, compared with $7.187 billion in the third quarter of 2024. The increase was primarily due to higher sales volume of $870 million and higher inter-segment sales of $156 million.

Energy & Transportation's segment profit was $1.678 billion in the third quarter of 2025, an increase of $245 million, or 17%, compared with $1.433 billion in the third quarter of 2024. The increase was primarily due to the profit impact of higher sales volume of $357 million and favorable price realization of $132 million, partially offset by unfavorable manufacturing costs of $287 million. Unfavorable manufacturing costs primarily reflected the impact of higher tariffs.

FINANCIAL PRODUCTS SEGMENT

(Millions of dollars)

Revenues by Geographic Region

Third

Quarter 2025

Third

Quarter 2024

Change

North America

$ 722

$ 695

$ 27

4 %

Latin America

118

22 %

EAME

130

—

— %

Asia/Pacific

106

112

(6)

(5 %)

Total Revenues

$ 1,076

$ 1,034

$ 42

4 %

Segment Profit

Third

Quarter 2025

Third

Quarter 2024

Change

Segment Profit

$ 241

$ 246

$ (5)

(2 %)

Financial Products' segment revenues were $1.076 billion in the third quarter of 2025, an increase of $42 million, or 4%, compared with $1.034 billion in the third quarter of 2024. The increase was primarily due to a favorable impact from higher average earning assets of $56 million driven by North America, partially offset by an unfavorable impact from lower average financing rates of $15 million across all regions except Latin America.

Financial Products' segment profit was $241 million in the third quarter of 2025, a decrease of $5 million, or 2%, compared with $246 million in the third quarter of 2024. The decrease was mainly due to a higher provision for credit losses at Cat Financial of $15 million, higher SG&A expenses of $7 million and an unfavorable impact from equity securities at Insurance Services of $6 million, partially offset by a favorable impact from higher average earning assets of $23 million.

At the end of the third quarter of 2025, past dues at Cat Financial were 1.47%, compared with 1.74% at the end of the third quarter of 2024. Write-offs, net of recoveries, were $40 million for the third quarter of 2025, compared with $27 million for the third quarter of 2024. As of September 30, 2025, Cat Financial's allowance for credit losses totaled $283 million, or 0.89% of finance receivables, compared with $290 million, or 0.94% of finance receivables at June 30, 2025. The allowance for credit losses at year-end 2024 was $267 million, or 0.91% of finance receivables.

Corporate Items and Eliminations

Expense for corporate items and eliminations was $584 million in the third quarter of 2025, an increase of $127 million from the third quarter of 2024, primarily driven by higher corporate costs, including higher short-term incentive compensation expense, and increased expenses due to timing differences, partially offset by proceeds from an insurance claim and favorable impacts of segment reporting methodology differences.

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 Wednesday, Oct. 29, 2025.

iii. Information on non-GAAP financial measures is included in the appendix on pages 12 and 13.

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 Wednesday, Oct. 29, 2025, to discuss its 2025 third-quarter 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

With 2024 sales and revenues of $64.8 billion, Caterpillar Inc. is the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. For 100 years, we've been helping customers build a better, more sustainable world and are committed and contributing to a reduced-carbon future. Our innovative products and services, backed by our global dealer network, provide exceptional value that helps customers succeed. Caterpillar does business on every continent, principally operating through three primary segments – Construction Industries, Resource Industries and Energy & Transportation – and providing financing and related services through our Financial Products segment. Visit us at caterpillar.com or join the conversation on our social media channels at caterpillar.com/en/news/social-media.html.

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 one significant item in order for the company's results to be meaningful to readers. This item consists of (i) restructuring income/costs. The company does not consider this item 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. The company intends to discuss adjusted profit per share for the fourth quarter and full-year 2025, excluding mark-to-market gains or losses for remeasurement of pension and other postemployment benefit plans.

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

Three Months Ended September 30, 2025 - U.S. GAAP

$ 3,052

17.3 %

$ 3,127

$ 836

$ 2,300

$ 4.88

Restructuring (income) costs

0.2 %

0.07

Three Months Ended September 30, 2025 - Adjusted

$ 3,089

17.5 %

$ 3,164

$ 845

$ 2,328

$ 4.95

Three Months Ended September 30, 2024 - U.S. GAAP

$ 3,147

19.5 %

$ 3,098

$ 642

$ 2,464

$ 5.06

Restructuring (income) costs

0.5 %

0.11

Three Months Ended September 30, 2024 - Adjusted

$ 3,217

20.0 %

$ 3,168

$ 658

$ 2,518

$ 5.17

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 months ended September 30, 2025 and 2024, these items consist of (i) the increase in the annual effective tax rate in 2025, (ii) the impact of changes in estimates related to prior years and (iii) the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S. GAAP compensation expense. 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 September 30, 2025 - U.S. GAAP

$ 3,127

836

26.7 %

Increase in annual effective tax rate

—

(54)

Changes in estimates related to prior years

—

(41)

Excess stock-based compensation

—

Annual effective tax rate, excluding discrete items

$ 3,127

$ 751

24.0 %

Increase in annual effective tax rate

—

Changes in estimates related to prior years

—

Excess stock-based compensation

—

(10)

Restructuring (income) costs

Three Months Ended September 30, 2025 - Adjusted

$ 3,164

$ 845

Three Months Ended September 30, 2024 - U.S. GAAP

$ 3,098

$ 642

20.7 %

Changes in estimates related to prior years

—

Excess stock-based compensation

—

Annual effective tax rate, excluding discrete items

$ 3,098

$ 696

22.5 %

Changes in estimates related to prior years

—

(47)

Excess stock-based compensation

—

(7)

Restructuring (income) costs

Three Months Ended September 30, 2024 - Adjusted

$ 3,168

$ 658

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, Energy & Transportation (ME&T) – The company defines ME&T as it is presented in the supplemental data as Caterpillar Inc. and its subsidiaries, excluding Financial Products. ME&T'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 ME&T and Financial Products.

The nature of the ME&T 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 15 to 25 reconcile ME&T 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

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

Sales and revenues:

Sales of Machinery, Energy & Transportation

$ 16,726

$ 15,231

$ 45,778

$ 46,031

Revenues of Financial Products

912

875

2,678

2,563

Total sales and revenues

17,638

16,106

48,456

48,594

Operating costs:

Cost of goods sold

11,673

10,066

31,445

29,878

Selling, general and administrative expenses

1,822

1,669

5,109

4,898

Research and development expenses

555

533

1,586

1,588

Interest expense of Financial Products

346

336

1,008

948

Other operating (income) expenses

190

355

817

1,134

Total operating costs

14,586

12,959

39,965

38,446

Operating profit

3,052

3,147

8,491

10,148

Interest expense excluding Financial Products

133

125

375

405

Other income (expense)

208

399

387

Consolidated profit before taxes

3,127

3,098

8,515

10,130

Provision (benefit) for income taxes

836

642

2,056

2,166

Profit of consolidated companies

2,291

2,456

6,459

7,964

Equity in profit (loss) of unconsolidated affiliated companies

Profit of consolidated and affiliated companies

2,299

2,463

6,481

7,998

Less: Profit (loss) attributable to noncontrolling interests

(1)

(3)

Profit 1

$ 2,300

$ 2,464

$ 6,482

$ 8,001

Profit per common share

$ 4.91

$ 5.09

$ 13.76

$ 16.36

Profit per common share — diluted 2

$ 4.88

$ 5.06

$ 13.69

$ 16.27

Weighted-average common shares outstanding (millions)

– Basic

468.6

484.2

471.3

489.0

– Diluted 2

470.8

486.7

473.4

491.7

Profit attributable to common shareholders.

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)

September 30,

2025

December 31,

2024

Assets

Current assets:

Cash and cash equivalents

$ 7,538

$ 6,889

Receivables – trade and other

10,146

9,282

Receivables – finance

10,315

9,565

Prepaid expenses and other current assets

2,861

3,119

Inventories

18,958

16,827

Total current assets

49,818

45,682

Property, plant and equipment – net

14,310

13,361

Long-term receivables – trade and other

1,618

1,225

Long-term receivables – finance

13,985

13,242

Noncurrent deferred and refundable income taxes

3,000

3,312

Intangible assets

281

399

Goodwill

5,329

5,241

Other assets

5,381

5,302

Total assets

$ 93,722

$ 87,764

Liabilities

Current liabilities:

Short-term borrowings:

-- Financial Products

$ 4,509

$ 4,393

Accounts payable

8,729

7,675

Accrued expenses

5,187

5,243

Accrued wages, salaries and employee benefits

2,126

2,391

Customer advances

3,391

2,322

Dividends payable

—

674

Other current liabilities

2,760

2,909

Long-term debt due within one year:

-- Machinery, Energy & Transportation

-- Financial Products

9,257

6,619

Total current liabilities

35,991

32,272

Long-term debt due after one year:

-- Machinery, Energy & Transportation

10,669

8,564

-- Financial Products

17,067

18,787

Liability for postemployment benefits

3,664

3,757

Other liabilities

5,672

4,890

Total liabilities

73,063

68,270

Shareholders' equity

Common stock

6,223

6,941

Treasury stock

(48,302)

(44,331)

Profit employed in the business

64,460

59,352

Accumulated other comprehensive income (loss)

(1,723)

(2,471)

Noncontrolling interests

Total shareholders' equity

20,659

19,494

Total liabilities and shareholders' equity

$ 93,722

$ 87,764

Caterpillar Inc.

Condensed Consolidated Statement of Cash Flow

(Unaudited)

(Millions of dollars)

Nine Months Ended

September 30,

2025

2024

Cash flow from operating activities:

Profit of consolidated and affiliated companies

$ 6,481

$ 7,998

Adjustments to reconcile profit to net cash provided by operating activities:

Depreciation and amortization

1,664

1,598

Provision (benefit) for deferred income taxes

300

(329)

(Gain) loss on divestiture

—

164

Other

509

221

Changes in assets and liabilities, net of acquisitions and divestitures:

Receivables – trade and other

(788)

(30)

Inventories

(2,015)

(781)

Accounts payable

1,086

(96)

Accrued expenses

Accrued wages, salaries and employee benefits

(296)

(671)

Customer advances

1,649

476

Other assets – net

(138)

120

Other liabilities – net

(355)

(37)

Net cash provided by (used for) operating activities

8,148

8,642

Cash flow from investing activities:

Capital expenditures – excluding equipment leased to others

(1,923)

(1,285)

Expenditures for equipment leased to others

(1,021)

(893)

Proceeds from disposals of leased assets and property, plant and equipment

544

541

Additions to finance receivables

(10,964)

(11,457)

Collections of finance receivables

9,890

10,234

Proceeds from sale of finance receivables

Investments and acquisitions (net of cash acquired)

(26)

(32)

Proceeds from sale of businesses and investments (net of cash sold)

(67)

Proceeds from maturities and sale of securities

1,945

2,841

Investments in securities

(1,291)

(892)

Other – net

(19)

137

Net cash provided by (used for) investing activities

(2,827)

(804)

Cash flow from financing activities:

Dividends paid

(2,043)

(1,966)

Common stock issued, and other stock compensation transactions, net

(39)

Payments to purchase common stock

(4,850)

(7,057)

Excise tax paid on purchases of common stock

(73)

—

Proceeds from debt issued (original maturities greater than three months)

8,454

7,579

Payments on debt (original maturities greater than three months)

(6,205)

(6,862)

Short-term borrowings – net (original maturities three months or less)

106

(848)

Net cash provided by (used for) financing activities

(4,650)

(9,139)

Effect of exchange rate changes on cash

(23)

(39)

Increase (decrease) in cash, cash equivalents and restricted cash

648

(1,340)

Cash, cash equivalents and restricted cash at beginning of period

6,896

6,985

Cash, cash equivalents and restricted cash at end of period

$ 7,544

$ 5,645

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 September 30, 2025

(Unaudited)

(Millions of dollars)

Supplemental Consolidating Data

Consolidated

Machinery,

Energy &

Transportation

Financial

Products

Consolidating

Adjustments

Sales and revenues:

Sales of Machinery, Energy & Transportation

$ 16,726

$ —

Revenues of Financial Products

912

—

1,115

(203)

Total sales and revenues

17,638

16,726

1,115

(203)

Operating costs:

Cost of goods sold

11,673

11,675

—

(2)

Selling, general and administrative expenses

1,822

1,608

218

(4)

Research and development expenses

555

—

Interest expense of Financial Products

346

—

358

(12)

Other operating (income) expenses

190

(114)

336

(32)

Total operating costs

14,586

13,724

912

(50)

Operating profit

3,052

3,002

203

(153)

Interest expense excluding Financial Products

133

136

—

(3)

Other income (expense)

208

150

Consolidated profit before taxes

3,127

2,891

236

—

Provision (benefit) for income taxes

836

773

—

Profit of consolidated companies

2,291

2,118

173

—

Equity in profit (loss) of unconsolidated affiliated companies

—

Profit of consolidated and affiliated companies

2,299

2,126

173

—

Less: Profit (loss) attributable to noncontrolling interests

(1)

—

Profit 5

$ 2,300

$ 2,127

$ 173

$ —

Elimination of Financial Products' revenues earned from ME&T.

Elimination of net expenses recorded between ME&T and Financial Products.

Elimination of interest expense recorded between Financial Products and ME&T.

Elimination of discount recorded by ME&T on receivables sold to Financial Products and of interest earned between ME&T and Financial Products as well as dividends paid by Financial Products to ME&T.

Profit attributable to common shareholders.

Caterpillar Inc.

Supplemental Data for Results of Operations

For the Three Months Ended September 30, 2024

(Unaudited)

(Millions of dollars)

Supplemental Consolidating Data

Consolidated

Machinery,

Energy &

Transportation

Financial

Products

Consolidating

Adjustments

Sales and revenues:

Sales of Machinery, Energy & Transportation

$ 15,231

$ —

Revenues of Financial Products

875

—

1,078

(203)

Total sales and revenues

16,106

15,231

1,078

(203)

Operating costs:

Cost of goods sold

10,066

10,067

—

(1)

Selling, general and administrative expenses

1,669

1,484

197

(12)

Research and development expenses

533

—

Interest expense of Financial Products

336

—

336

—

Other operating (income) expenses

355

329

(23)

Total operating costs

12,959

12,133

862

(36)

Operating profit

3,147

3,098

216

(167)

Interest expense excluding Financial Products

125

127

—

(2)

Other income (expense)

(122)

165

Consolidated profit before taxes

3,098

2,849

249

—

Provision (benefit) for income taxes

642

582

—

Profit of consolidated companies

2,456

2,267

189

—

Equity in profit (loss) of unconsolidated affiliated companies

—

Profit of consolidated and affiliated companies

2,463

2,274

189

—

Less: Profit (loss) attributable to noncontrolling interests

(1)

—

Profit 4

$ 2,464

$ 2,275

$ 189

$ —

Elimination of Financial Products' revenues earned from ME&T.

Elimination of net expenses recorded by ME&T paid to Financial Products.

Elimination of discount recorded by ME&T on receivables sold to Financial Products and of interest earned between ME&T and Financial Products as well as dividends paid by Financial Products to ME&T.

Profit attributable to common shareholders.

Caterpillar Inc.

Supplemental Data for Results of Operations

For the Nine Months Ended September 30, 2025

(Unaudited)

(Millions of dollars)

Supplemental Consolidating Data

Consolidated

Machinery,

Energy &

Transportation

Financial

Products

Consolidating

Adjustments

Sales and revenues:

Sales of Machinery, Energy & Transportation

$ 45,778

$ —

Revenues of Financial Products

2,678

—

3,244

(566)

Total sales and revenues

48,456

45,778

3,244

(566)

Operating costs:

Cost of goods sold

31,445

31,451

—

(6)

Selling, general and administrative expenses

5,109

4,513

623

(27)

Research and development expenses

1,586

—

Interest expense of Financial Products

1,008

—

1,026

(18)

Other operating (income) expenses

817

(84)

979

(78)

Total operating costs

39,965

37,466

2,628

(129)

Operating profit

8,491

8,312

616

(437)

Interest expense excluding Financial Products

375

385

—

(10)

Other income (expense)

399

(121)

427

Consolidated profit before taxes

8,515

7,806

709

—

Provision (benefit) for income taxes

2,056

1,878

178

—

Profit of consolidated companies

6,459

5,928

531

—

Equity in profit (loss) of unconsolidated affiliated companies

—

Profit of consolidated and affiliated companies

6,481

5,950

531

—

Less: Profit (loss) attributable to noncontrolling interests

(1)

(2)

—

Profit 5

$ 6,482

$ 5,952

$ 530

$ —

Elimination of Financial Products' revenues earned from ME&T.

Elimination of net expenses recorded between ME&T and Financial Products.

Elimination of interest expense recorded between Financial Products and ME&T.

Elimination of discount recorded by ME&T on receivables sold to Financial Products and of interest earned between ME&T and Financial Products as well as dividends paid by Financial Products to ME&T.

Profit attributable to common shareholders.

Caterpillar Inc.

Supplemental Data for Results of Operations

For the Nine Months Ended September 30, 2024

(Unaudited)

(Millions of dollars)

Supplemental Consolidating Data

Consolidated

Machinery,

Energy &

Transportation

Financial

Products

Consolidating

Adjustments

Sales and revenues:

Sales of Machinery, Energy & Transportation

$ 46,031

$ —

Revenues of Financial Products

2,563

—

3,150

(587)

Total sales and revenues

48,594

46,031

3,150

(587)

Operating costs:

Cost of goods sold

29,878

29,883

—

(5)

Selling, general and administrative expenses

4,898

4,346

560

(8)

Research and development expenses

1,588

—

Interest expense of Financial Products

948

—

948

—

Other operating (income) expenses

1,134

1,174

(91)

Total operating costs

38,446

35,868

2,682

(104)

Operating profit

10,148

10,163

468

(483)

Interest expense excluding Financial Products

405

407

—

(2)

Other income (expense)

387

(163)

481

Consolidated profit before taxes

10,130

9,593

537

—

Provision (benefit) for income taxes

2,166

1,983

183

—

Profit of consolidated companies

7,964

7,610

354

—

Equity in profit (loss) of unconsolidated affiliated companies

—

Profit of consolidated and affiliated companies

7,998

7,644

354

—

Less: Profit (loss) attributable to noncontrolling interests

(3)

(4)

—

Profit 4

$ 8,001

$ 7,648

$ 353

$ —

Elimination of Financial Products' revenues earned from ME&T.

Elimination of net expenses recorded between ME&T and Financial Products.

Elimination of discount recorded by ME&T on receivables sold to Financial Products and of interest earned between ME&T and Financial Products as well as dividends paid by Financial Products to ME&T.

Profit attributable to common shareholders.

Caterpillar Inc.

Supplemental Data for Financial Position

At September 30, 2025

(Unaudited)

(Millions of dollars)

Supplemental Consolidating Data

Consolidated

Machinery,

Energy &

Transportation

Financial

Products

Consolidating

Adjustments

Assets

Current assets:

Cash and cash equivalents

$ 7,538

$ 6,633

$ 905

$ —

Receivables – trade and other

10,146

3,531

542

6,073

1,2

Receivables – finance

10,315

—

16,665

(6,350)

Prepaid expenses and other current assets

2,861

2,659

440

(238)

Inventories

18,958

—

Total current assets

49,818

31,781

18,552

(515)

Property, plant and equipment – net

14,310

10,348

3,962

—

Long-term receivables – trade and other

1,618

1,712

166

(260)

1,2

Long-term receivables – finance

13,985

—

14,948

(963)

Noncurrent deferred and refundable income taxes

3,000

3,264

130

(394)

Intangible assets

281

—

Goodwill

5,329

—

Other assets

5,381

3,923

2,468

(1,010)

Total assets

$ 93,722

$ 56,638

$ 40,226

$ (3,142)

Liabilities

Current liabilities:

Short-term borrowings

$ 4,509

$ —

$ 4,509

$ —

Accounts payable

8,729

8,636

391

(298)

6,7

Accrued expenses

5,187

4,558

629

—

Accrued wages, salaries and employee benefits

2,126

2,081

—

Customer advances

3,391

3,359

Dividends payable

—

Other current liabilities

2,760

2,209

806

(255)

4,5,8

Long-term debt due within one year

9,289

9,257

—

Total current liabilities

35,991

20,875

15,640

(524)

Long-term debt due after one year

27,736

10,899

18,067

(1,230)

7,9

Liability for postemployment benefits

3,664

3,663

—

Other liabilities

5,672

4,679

1,407

(414)

4,5

Total liabilities

73,063

40,116

35,115

(2,168)

Shareholders' equity

Common stock

6,223

905

(905)

Treasury stock

(48,302)

—

Profit employed in the business

64,460

59,365

5,085

Accumulated other comprehensive income (loss)

(1,723)

(768)

(955)

—

Noncontrolling interests

(79)

Total shareholders' equity

20,659

16,522

5,111

(974)

Total liabilities and shareholders' equity

$ 93,722

$ 56,638

$ 40,226

$ (3,142)

Elimination of receivables between ME&T and Financial Products.

Reclassification of ME&T's trade receivables purchased by Financial Products and Financial Products' wholesale inventory receivables.

Elimination of ME&T's insurance premiums that are prepaid to Financial Products.

Reclassification reflecting required netting of deferred tax assets/liabilities by taxing jurisdiction.

Elimination of other intercompany assets and liabilities between ME&T and Financial Products.

Elimination of payables between ME&T and Financial Products.

Reclassification of Financial Products' payables to customer advances.

Elimination of prepaid insurance in Financial Products' other liabilities.

Elimination of debt between ME&T and Financial Products.

Eliminations associated with ME&T'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,

Energy &

Transportation

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)

Prepaid expenses and other current assets

3,119

2,872

401

(154)

Inventories

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

639

1,2

Long-term receivables – finance

13,242

—

14,048

(806)

Noncurrent deferred and refundable income taxes

3,312

3,594

118

(400)

Intangible assets

399

—

Goodwill

5,241

—

Other assets

5,302

4,050

2,277

(1,025)

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

—

Customer advances

2,322

2,305

Dividends payable

674

—

Other current liabilities

2,909

2,388

696

(175)

4,8

Long-term debt due within one year

6,665

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)

Liability for postemployment benefits

3,757

—

Other liabilities

4,890

3,977

1,344

(431)

Total liabilities

68,270

36,421

32,883

(1,034)

Shareholders' equity

Common stock

6,941

905

(905)

Treasury stock

(44,331)

—

Profit employed in the business

59,352

54,787

4,555

Accumulated other comprehensive income (loss)

(2,471)

(1,182)

(1,289)

—

Noncontrolling interests

(78)

Total shareholders' equity

19,494

16,221

4,246

(973)