Caterpillar Reports Second-Quarter 2026 Results

Caterpillar Reports Second-Quarter 2026 Results Second Quarter

($ in billions except profit per share)

2026

2025

Sales and Revenues

$20.5

$16.6

Profit Per Share

$7.77

$4.62

Adjusted Profit Per Share

$8.17

$4.72

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

IRVING, Texas, Aug. 4, 2026 /PRNewswire/ -- Caterpillar Inc. (NYSE: CAT) announced second-quarter 2026 results.

"This is the first time in company history that we have generated over $20 billion in sales and revenues in a single quarter," said Caterpillar Chairman and CEO Joe Creed. "This milestone underscores both the essential work our customers do every day and the dedication of Caterpillar employees worldwide to solving our customers' toughest challenges. Strong order rates and a growing backlog reflect broadening momentum across all three of our primary segments."

Sales and revenues for the second quarter of 2026 were $20.5 billion, a 24% increase compared with $16.6 billion in the second quarter of 2025. The increase was primarily due to higher sales volume of $3.1 billion and favorable price realization of $595 million.

Operating profit margin was 20.9% for the second quarter of 2026, compared with 17.3% for the second quarter of 2025. Adjusted operating profit margin was 21.9% for the second quarter of 2026, compared with 17.6% for the second quarter of 2025. Second-quarter 2026 profit per share was $7.77, compared with second-quarter 2025 profit per share of $4.62. Adjusted profit per share in the second quarter of 2026 was $8.17, compared with second-quarter 2025 adjusted profit per share of $4.72. For the second quarter of 2026 and 2025, adjusted operating profit margin and adjusted profit per share excluded restructuring costs.

For the second quarter of 2026, enterprise operating cash flow was $4.4 billion, and the company ended the second quarter with $6.7 billion of enterprise cash. In the quarter, the company deployed $1.5 billion of cash for repurchases of Caterpillar common stock and $0.7 billion of cash for dividends.

CONSOLIDATED RESULTS

Consolidated Sales and Revenues

Consolidated Sales and Revenues Comparison

Second Quarter 2026 vs. Second Quarter 2025

To access this chart, go to https://investors.caterpillar.com/financials/quarterly-results/default.aspx for the downloadable version of Caterpillar second-quarter 2026 earnings.

Total sales and revenues for the second quarter of 2026 were $20.543 billion, an increase of $3.974 billion, or 24%, compared with $16.569 billion in the second quarter of 2025. The increase was primarily due to higher sales volume of $3.1 billion and favorable price realization of $595 million. Higher 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)

Second

Quarter

2025

Sales

Volume

Price

Realization

Currency

Inter-

Segment /

Other

Second

Quarter

2026

Change

Power & Energy

$ 7,037

$ 736

$ 212

$ 53

$ 200

$ 8,238

$ 1,201

17 %

Construction Industries

6,190

1,755

309

8,346

2,156

35 %

Resource Industries

3,886

639

(17)

4,648

762

20 %

All Other Segment

—

(3)

(1)

(1 %)

Corporate Items and Eliminations

(1,524)

(18)

(2)

(198)

(1,735)

(211)

Machinery, Power & Energy

15,674

3,113

595

199

—

19,581

3,907

25 %

Financial Products Segment

1,042

—

103

1,145

103

10 %

Corporate Items and Eliminations

(147)

—

(36)

(183)

(36)

Financial Products Revenues

895

—

962

7 %

Consolidated Sales and Revenues

$ 16,569

$ 3,113

$ 595

$ 199

$ 67

$ 20,543

$ 3,974

24 %

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

Second Quarter 2026

Power & Energy

$ 4,182

30 %

$ 373

(16 %)

$ 1,348

3 %

$ 892

9 %

$ 6,795

17 %

$ 1,443

16 %

$ 8,238

17 %

Construction Industries

5,065

50 %

676

25 %

1,456

23 %

1,064

3 %

8,261

35 %

27 %

8,346

35 %

Resource Industries

2,230

34 %

671

13 %

713

22 %

954

1 %

4,568

21 %

(18 %)

4,648

20 %

All Other Segment

50 %

— %

100 %

(50 %)

15 %

(4 %)

(1 %)

Corporate Items and Eliminations

(51)

(1)

(7)

(58)

(1,677)

(1,735)

Machinery, Power & Energy

11,435

39 %

1,722

10 %

3,518

15 %

2,906

4 %

19,581

25 %

—

— %

19,581

25 %

Financial Products Segment

765

9 %

122

16 %

137

9 %

121

12 %

1,145

10 %

—

— %

1,145

10 %

Corporate Items and Eliminations

(106)

(23)

(30)

(24)

(183)

—

(183)

Financial Products Revenues

659

7 %

16 %

107

(1 %)

11 %

962

7 %

—

— %

962

7 %

Consolidated Sales and Revenues

$ 12,094

37 %

$ 1,821

10 %

$ 3,625

14 %

$ 3,003

4 %

$ 20,543

24 %

$ —

— %

$ 20,543

24 %

Second Quarter 2025

Power & Energy

$ 3,225

$ 442

$ 1,306

$ 821

$ 5,794

$ 1,243

$ 7,037

Construction Industries

3,369

540

1,185

1,029

6,123

6,190

Resource Industries

1,668

592

584

945

3,789

3,886

All Other Segment

—

Corporate Items and Eliminations

(32)

(3)

(4)

(6)

(45)

(1,479)

(1,524)

Machinery, Power & Energy

8,236

1,571

3,072

2,795

15,674

—

15,674

Financial Products Segment

703

105

126

108

1,042

—

1,042

Corporate Items and Eliminations

(88)

(20)

(18)

(21)

(147)

—

(147)

Financial Products Revenues

615

108

895

—

895

Consolidated Sales and Revenues

$ 8,851

$ 1,656

$ 3,180

$ 2,882

$ 16,569

$ —

$ 16,569

Consolidated Operating Profit

Consolidated Operating Profit Comparison

Second Quarter 2026 vs. Second Quarter 2025

To access this chart, go to https://investors.caterpillar.com/financials/quarterly-results/default.aspx for the downloadable version of Caterpillar second-quarter 2026 earnings.

Operating profit for the second quarter of 2026 was $4.295 billion, an increase of $1.435 billion, or 50%, compared with $2.860 billion in the second quarter of 2025. The increase was primarily due to the profit impact of higher sales volume.

Operating profit in the second quarter of 2026 included $392 million of expected International Emergency Economic Power Act (IEEPA) tariff recoveries.

Profit (Loss) by Segment

(Millions of dollars)

Second Quarter

2026

Second Quarter

2025

Change

Power & Energy

$ 2,027

$ 1,554

$ 473

30 %

Construction Industries

1,947

1,244

703

57 %

Resource Industries

693

563

130

23 %

All Other Segment

—

— %

Corporate Items and Eliminations

(453)

(566)

113

Machinery, Power & Energy

4,214

2,795

1,419

51 %

Financial Products Segment

328

248

32 %

Corporate Items and Eliminations

(65)

(36)

(29)

Financial Products

263

212

24 %

Consolidating Adjustments

(182)

(147)

(35)

Consolidated Operating Profit

$ 4,295

$ 2,860

$ 1,435

50 %

Other Profit/Loss and Tax Items

POWER & ENERGY

(Millions of dollars)

Segment Sales

Second

Quarter 2025

Sales

Volume

Price

Realization

Currency

Inter-

Segment

Second

Quarter 2026

Change

Total Sales

$ 7,037

$ 736

$ 212

$ 53

$ 200

$ 8,238

$ 1,201

17 %

Sales by Application

Second

Quarter 2026

Second

Quarter 2025

Change

Power Generation

$ 3,098

$ 2,407

$ 691

29 %

Oil and Gas

2,044

1,867

177

9 %

Industrial

1,653

1,520

133

9 %

External Sales

6,795

5,794

1,001

17 %

Inter-segment

1,443

1,243

200

16 %

Total Sales

$ 8,238

$ 7,037

$ 1,201

17 %

Segment Profit

Second

Quarter 2026

Second

Quarter 2025

Change

Segment Profit

$ 2,027

$ 1,554

$ 473

30 %

Segment Profit Margin

24.6 %

22.1 %

2.5 pts

Power & Energy's total sales were $8.238 billion in the second quarter of 2026, an increase of $1.201 billion, or 17%, compared with $7.037 billion in the second quarter of 2025. The increase was primarily due to higher sales volume of $736 million, favorable price realization of $212 million and higher inter-segment sales of $200 million.

Power & Energy's segment profit was $2.027 billion in the second quarter of 2026, an increase of $473 million, or 30%, compared with $1.554 billion in the second quarter of 2025. The increase was mainly due to the profit impact of higher sales volume of $457 million and favorable price realization of $212 million, partially offset by unfavorable manufacturing costs of $149 million. Unfavorable manufacturing costs largely reflected increased period manufacturing costs.

CONSTRUCTION INDUSTRIES

(Millions of dollars)

Segment Sales

Second

Quarter 2025

Sales

Volume

Price

Realization

Currency

Inter-

Segment

Second

Quarter 2026

Change

Total Sales

$ 6,190

$ 1,755

$ 309

$ 74

$ 18

$ 8,346

$ 2,156

35 %

Sales by Geographic Region

Second

Quarter 2026

Second

Quarter 2025

Change

North America

$ 5,065

$ 3,369

$ 1,696

50 %

Latin America

676

540

136

25 %

EAME

1,456

1,185

271

23 %

Asia/Pacific

1,064

1,029

3 %

External Sales

8,261

6,123

2,138

35 %

Inter-segment

27 %

Total Sales

$ 8,346

$ 6,190

$ 2,156

35 %

Segment Profit

Second

Quarter 2026

Second

Quarter 2025

Change

Segment Profit

$ 1,947

$ 1,244

$ 703

57 %

Segment Profit Margin

23.3 %

20.1 %

3.2 pts

Construction Industries' total sales were $8.346 billion in the second quarter of 2026, an increase of $2.156 billion, or 35%, compared with $6.190 billion in the second quarter of 2025. The increase in sales was mainly due to higher sales volume of $1.8 billion and favorable price realization of $309 million. Higher sales volume was primarily driven by higher sales of equipment to end users.

Construction Industries' segment profit was $1.947 billion in the second quarter of 2026, an increase of $703 million, or 57%, compared with $1.244 billion in the second quarter of 2025. The increase was primarily due to the profit impact of higher sales volume.

RESOURCE INDUSTRIES

(Millions of dollars)

Segment Sales

Second

Quarter 2025

Sales

Volume

Price

Realization

Currency

Inter-

Segment

Second

Quarter 2026

Change

Total Sales

$ 3,886

$ 639

$ 75

$ 65

$ (17)

$ 4,648

$ 762

20 %

Sales by Industry

Second

Quarter 2026

Second

Quarter 2025

Change

Mining, HC and Q&A*

$ 3,685

$ 3,024

$ 661

22 %

Rail

883

765

118

15 %

External Sales

4,568

3,789

779

21 %

Inter-segment

(17)

(18 %)

Total Sales

$ 4,648

$ 3,886

$ 762

20 %

*Heavy Construction and Quarry & Aggregates (HC and Q&A)

Segment Profit

Second

Quarter 2026

Second

Quarter 2025

Change

Segment Profit

$ 693

$ 563

$ 130

23 %

Segment Profit Margin

14.9 %

14.5 %

0.4 pts

Resource Industries' total sales were $4.648 billion in the second quarter of 2026, an increase of $762 million, or 20%, compared with $3.886 billion in the second quarter of 2025. The increase was primarily due to higher sales volume. Higher sales volume was primarily driven by higher sales of equipment to end users.

Resource Industries' segment profit was $693 million in the second quarter of 2026, an increase of $130 million, or 23%, compared with $563 million in the second quarter of 2025. The increase was mainly due to the profit impact of higher sales volume of $269 million, partially offset by unfavorable manufacturing costs of $158 million. Unfavorable manufacturing costs primarily reflected increased period manufacturing costs.

FINANCIAL PRODUCTS SEGMENT

(Millions of dollars)

Revenues by Geographic Region

Second

Quarter 2026

Second

Quarter 2025

Change

North America

$ 765

$ 703

$ 62

9 %

Latin America

122

105

16 %

EAME

137

126

9 %

Asia/Pacific

121

108

12 %

Total Revenues

$ 1,145

$ 1,042

$ 103

10 %

Segment Profit

Second

Quarter 2026

Second

Quarter 2025

Change

Segment Profit

$ 328

$ 248

$ 80

32 %

Financial Products' segment revenues were $1.145 billion in the second quarter of 2026, an increase of $103 million, or 10%, compared with $1.042 billion in the second quarter of 2025. The increase was primarily due to a favorable impact from higher average earning assets across all regions.

Financial Products' segment profit was $328 million in the second quarter of 2026, an increase of $80 million, or 32%, compared with $248 million in the second quarter of 2025. The increase was mainly due to favorable impacts from higher average earning assets of $44 million, equity securities at Insurance Services of $22 million and higher margins at Insurance Services of $21 million, partially offset by higher provision for credit losses at Cat Financial of $22 million.

At the end of the second quarter of 2026, past dues at Cat Financial were 1.31%, compared with 1.62% at the end of the second quarter of 2025. Write-offs, net of recoveries, were $20 million for the second quarter of 2026 compared with $18 million for the second quarter of 2025. As of June 30, 2026, Cat Financial's allowance for credit losses totaled $294 million, or 0.84% of finance receivables, compared with $283 million, or 0.86% of finance receivables at March 31, 2026. The allowance for credit losses at year-end 2025 was $284 million, or 0.86% of finance receivables.

Corporate Items and Eliminations

Expense for corporate items and eliminations was $518 million in the second quarter of 2026, a decrease of $84 million from the second quarter of 2025. This decrease was due to timing differences, which included the majority of the expected IEEPA tariff recoveries recorded in the second quarter of 2026, and favorable impacts of segment reporting methodology differences. This was partially offset by higher corporate costs, higher restructuring costs and an unfavorable change in fair value adjustments related to deferred compensation plans.

In the second quarter of 2026, restructuring costs increased primarily due to the divestiture of certain non-U.S. entities.

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 Tuesday, Aug. 4, 2026.

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 Tuesday, Aug. 4, 2026, to discuss its 2026 second-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

For more than a century, Caterpillar has built a better, more sustainable world. With 2025 sales and revenues of $67.6 billion, Caterpillar Inc. is shaping the future as the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. Backed by one of the largest independent global dealer networks and financing services through Cat Financial, the company's primary business segments: Power & Energy, Construction Industries and Resource Industries are solving customers' toughest challenges through commercial excellence and advanced technology, driven by a highly skilled, dedicated global team. Learn more at caterpillar.com.

Caterpillar's latest financial results are also available online:

https://investors.caterpillar.com/overview/default.aspx

https://investors.caterpillar.com/financials/quarterly-results/default.aspx (live broadcast/replays of quarterly conference call)

Forward-Looking Statements

Certain statements in this press release relate to future events and expectations and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "believe," "estimate," "will be," "will," "would," "expect," "anticipate," "plan," "forecast," "target," "guide," "project," "intend," "could," "should" or other similar words or expressions often identify forward-looking statements. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding our outlook, projections, forecasts or trend descriptions. These statements do not guarantee future performance and speak only as of the date they are made, and we do not undertake to update our forward-looking statements.

Caterpillar's actual results may differ materially from those described or implied in our forward-looking statements based on a number of factors, including, but not limited to: (i) global and regional economic conditions and economic conditions in the industries we serve; (ii) commodity price changes, material price increases, fluctuations in demand for our products or significant shortages of material; (iii) government monetary or fiscal policies; (iv) political and economic risks, commercial instability and events beyond our control in the countries in which we operate; (v) international trade policies and their impact on demand for our products and our competitive position, including the imposition of new tariffs or changes in existing tariff rates; (vi) our ability to develop, produce and market quality products that meet our customers' needs; (vii) the impact of the highly competitive environment in which we operate on our sales and pricing; (viii) information technology security threats and computer crime; (ix) inventory management decisions and sourcing practices of our dealers and our OEM customers; (x) a failure to realize, or a delay in realizing, all of the anticipated benefits of our acquisitions, joint ventures or divestitures; (xi) union disputes or other employee relations issues; (xii) adverse effects of unexpected events; (xiii) disruptions or volatility in global financial markets limiting our sources of liquidity or the liquidity of our customers, dealers and suppliers; (xiv) failure to maintain our credit ratings and potential resulting increases to our cost of borrowing and adverse effects on our cost of funds, liquidity, competitive position and access to capital markets; (xv) our Financial Products segment's risks associated with the financial services industry; (xvi) changes in interest rates or market liquidity conditions; (xvii) an increase in delinquencies, repossessions or net losses of Cat Financial's customers; (xviii) currency fluctuations; (xix) our or Cat Financial's compliance with financial and other restrictive covenants in debt agreements; (xx) increased pension plan funding obligations; (xxi) alleged or actual violations of trade or anti-corruption laws and regulations; (xxii) additional tax expense or exposure, including the impact of U.S. tax reform; (xxiii) significant legal proceedings, claims, lawsuits or government investigations; (xxiv) new regulations or changes in financial services regulations; (xxv) compliance with environmental laws and regulations; (xxvi) catastrophic events, including global pandemics such as the COVID-19 pandemic; and (xxvii) other factors described in more detail in Caterpillar's Forms 10-Q, 10-K and other filings with the Securities and Exchange Commission.

APPENDIX

NON-GAAP FINANCIAL MEASURES

The following definitions are provided for the non-GAAP financial measures. These non-GAAP financial measures have no standardized meaning prescribed by U.S. GAAP and therefore are unlikely to be comparable to the calculation of similar measures for other companies. Management does not intend these items to be considered in isolation or as a substitute for the related GAAP measures.

The company believes it is important to separately quantify the profit impact of two significant items in order for the company's results to be meaningful to readers. These items consist of (i) restructuring costs related to the divestiture of certain non-U.S. entities in 2026 and (ii) other restructuring 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 2026, 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 June 30, 2026 - U.S. GAAP

$ 4,295

20.9 %

$ 4,558

$ 1,055

$ 3,593

$ 7.77

Restructuring costs - divestiture of certain non-U.S. entities

139

0.7 %

139

—

139

0.30

Other restructuring costs

0.3 %

0.10

Three Months Ended June 30, 2026 - Adjusted

$ 4,497

21.9 %

$ 4,760

$ 1,070

$ 3,780

$ 8.17

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

$ 2,860

17.3 %

$ 2,818

$ 646

$ 2,179

$ 4.62

Other restructuring costs

0.3 %

0.10

Three Months Ended June 30, 2025 - Adjusted

$ 2,916

17.6 %

$ 2,874

$ 658

$ 2,226

$ 4.72

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 June 30, 2026 and 2025, these items consist of (i) restructuring costs related to the divestiture of certain non-U.S. entities in 2026 and (ii) 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 June 30, 2026 - U.S. GAAP

$ 4,558

1,055

23.1 %

Restructuring costs - divestiture of certain non-U.S. entities

139

—

Excess stock-based compensation

—

Annual effective tax rate, excluding discrete items

$ 4,697

$ 1,081

23.0 %

Excess stock-based compensation

—

(26)

Other restructuring costs

Three Months Ended June 30, 2026 - Adjusted

$ 4,760

$ 1,070

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

$ 2,818

$ 646

23.0 %

Excess stock-based compensation

—

Annual effective tax rate, excluding discrete items

$ 2,818

$ 647

23.0 %

Excess stock-based compensation

—

(1)

Other restructuring costs

Three Months Ended June 30, 2025 - Adjusted

$ 2,874

$ 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, Power & Energy (MP&E) – The company defines MP&E as it is presented in the supplemental data as Caterpillar Inc. and its subsidiaries, excluding Financial Products. MP&E's information relates to the design, manufacturing and marketing of its products.

Financial Products – The company defines Financial Products as it is presented in the supplemental data as its finance and insurance subsidiaries, primarily Caterpillar Financial Services Corporation (Cat Financial) and Caterpillar Insurance Holdings Inc. (Insurance Services). Financial Products' information relates to the financing to customers and dealers for the purchase and lease of Caterpillar and other equipment.

Consolidating Adjustments – Eliminations of transactions between MP&E and Financial Products.

The nature of the MP&E and Financial Products businesses is different, especially with regard to the financial position and cash flow items. Caterpillar management utilizes this presentation internally to highlight these differences. The company believes this presentation will assist readers in understanding its business.

Pages 15 to 25 reconcile MP&E and Financial Products to Caterpillar Inc. consolidated financial information.

Caterpillar Inc.

Condensed Consolidated Statement of Results of Operations

(Unaudited)

(Dollars in millions except per share data)

Three Months Ended

June 30,

Six Months Ended

June 30,

2026

2025

2026

2025

Sales and revenues:

Sales of Machinery, Power & Energy

$ 19,581

$ 15,674

$ 36,054

$ 29,052

Revenues of Financial Products

962

895

1,904

1,766

Total sales and revenues

20,543

16,569

37,958

30,818

Operating costs:

Cost of goods sold

12,781

10,807

24,087

19,772

Selling, general and administrative expenses

2,018

1,694

3,834

3,287

Research and development expenses

616

551

1,153

1,031

Interest expense of Financial Products

362

336

707

662

Other operating (income) expenses

471

321

797

627

Total operating costs

16,248

13,709

30,578

25,379

Operating profit

4,295

2,860

7,380

5,439

Interest expense excluding Financial Products

135

126

269

242

Other income (expense)

398

658

191

Consolidated profit before taxes

4,558

2,818

7,769

5,388

Provision (benefit) for income taxes

1,055

646

1,725

1,220

Profit of consolidated companies

3,503

2,172

6,044

4,168

Equity in profit (loss) of unconsolidated affiliated companies

Profit of consolidated and affiliated companies

3,593

2,179

6,141

4,182

Less: Profit (loss) attributable to noncontrolling interests

—

(1)

—

Profit 1

$ 3,593

$ 2,179

$ 6,142

$ 4,182

Profit per common share

$ 7.80

$ 4.64

$ 13.29

$ 8.85

Profit per common share — diluted 2

$ 7.77

$ 4.62

$ 13.23

$ 8.82

Weighted-average common shares outstanding (millions)

– Basic

460.4

469.7

462.0

472.4

– Diluted 2

462.5

471.5

464.3

474.5

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)

June 30,

2026

December 31,

2025

Assets

Current assets:

Cash and cash equivalents

$ 6,713

$ 9,980

Receivables – trade and other

13,188

10,920

Receivables – finance

10,844

10,649

Prepaid expenses and other current assets

3,078

2,801

Inventories

20,627

18,135

Total current assets

54,450

52,485

Property, plant and equipment – net

15,628

15,140

Long-term receivables – trade and other

3,086

2,142

Long-term receivables – finance

14,364

14,272

Noncurrent deferred and refundable income taxes

2,286

2,882

Intangible assets

420

241

Goodwill

5,859

5,321

Other assets

6,516

6,102

Total assets

$ 102,609

$ 98,585

Liabilities

Current liabilities:

Short-term borrowings:

-- Financial Products

$ 5,046

$ 5,514

Accounts payable

10,313

8,968

Accrued expenses

5,825

5,587

Accrued wages, salaries and employee benefits

2,148

2,554

Customer advances

4,777

3,314

Dividends payable

749

703

Other current liabilities

2,871

2,798

Long-term debt due within one year:

-- Machinery, Power & Energy

-- Financial Products

8,026

7,085

Total current liabilities

39,790

36,558

Long-term debt due after one year:

-- Machinery, Power & Energy

10,655

10,678

-- Financial Products

21,384

20,018

Liability for postemployment benefits

3,744

3,838

Other liabilities

7,642

6,175

Total liabilities

83,215

77,267

Shareholders' equity

Common stock

5,654

7,181

Treasury stock

(54,533)

(49,539)

Profit employed in the business

70,141

65,448

Accumulated other comprehensive income (loss)

(1,867)

(1,772)

Noncontrolling interests

(1)

—

Total shareholders' equity

19,394

21,318

Total liabilities and shareholders' equity

$ 102,609

$ 98,585

Caterpillar Inc.

Condensed Consolidated Statement of Cash Flow

(Unaudited)

(Millions of dollars)

Six Months Ended June 30,

2026

2025

Cash flow from operating activities:

Profit of consolidated and affiliated companies

$ 6,141

$ 4,182

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

Depreciation and amortization

1,211

1,094

Provision (benefit) for deferred income taxes

644

(110)

(Gain) loss on divestiture

139

—

Other

(22)

398

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

Receivables – trade and other

(3,182)

(319)

Inventories

(2,553)

(1,639)

Accounts payable

1,528

973

Accrued expenses

189

(12)

Accrued wages, salaries and employee benefits

(408)

(805)

Customer advances

2,576

1,276

Other assets – net

(93)

(90)

Other liabilities – net

(537)

Net cash provided by (used for) operating activities

6,241

4,411

Cash flow from investing activities:

Capital expenditures – excluding equipment leased to others

(1,315)

(1,265)

Expenditures for equipment leased to others

(847)

(608)

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

436

365

Additions to finance receivables

(8,639)

(7,064)

Collections of finance receivables

8,060

6,399

Proceeds from sale of finance receivables

Investments and acquisitions (net of cash acquired)

(802)

(21)

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

(92)

Proceeds from maturities and sale of securities

734

1,328

Investments in securities

(1,155)

(618)

Other – net

148

(53)

Net cash provided by (used for) investing activities

(3,439)

(1,507)

Cash flow from financing activities:

Dividends paid

(1,399)

(1,336)

Common stock issued, and other stock compensation transactions, net

(121)

(59)

Payments to purchase common stock

(6,522)

(4,488)

Excise tax paid on purchases of common stock

(49)

(73)

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

7,363

5,707

Payments on debt (original maturities greater than three months)

(4,763)

(4,168)

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

(542)

Net cash provided by (used for) financing activities

(6,033)

(4,345)

Effect of exchange rate changes on cash

(35)

(7)

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

(3,266)

(1,448)

Cash, cash equivalents and restricted cash at beginning of period

9,986

6,896

Cash, cash equivalents and restricted cash at end of period

$ 6,720

$ 5,448

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 June 30, 2026

(Unaudited)

(Millions of dollars)

Supplemental Consolidating Data

Consolidated

Machinery, Power

& Energy

Financial

Products

Consolidating

Adjustments

Sales and revenues:

Sales of Machinery, Power & Energy

$ 19,581

$ —

Revenues of Financial Products

962

—

1,188

(226)

Total sales and revenues

20,543

19,581

1,188

(226)

Operating costs:

Cost of goods sold

12,781

12,783

—

(2)

Selling, general and administrative expenses

2,018

1,800

223

(5)

Research and development expenses

616

—

Interest expense of Financial Products

362

—

374

(12)

Other operating (income) expenses

471

168

328

(25)

Total operating costs

16,248

15,367

925

(44)

Operating profit

4,295

4,214

263

(182)

Interest expense excluding Financial Products

135

141

—

(6)

Other income (expense)

398

163

176

Consolidated profit before taxes

4,558

4,236

322

—

Provision (benefit) for income taxes

1,055

963

—

Profit of consolidated companies

3,503

3,273

230

—

Equity in profit (loss) of unconsolidated affiliated companies

—

Profit of consolidated and affiliated companies

3,593

3,363

230

—

Less: Profit (loss) attributable to noncontrolling interests

—

Profit 5

$ 3,593

$ 3,363

$ 230

$ —

Elimination of Financial Products' revenues earned from MP&E.

Elimination of net expenses recorded between MP&E and Financial Products.

Elimination of interest expense recorded between Financial Products and MP&E.

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

Profit attributable to common shareholders.

Caterpillar Inc.

Supplemental Data for Results of Operations

For the Three Months Ended June 30, 2025

(Unaudited)

(Millions of dollars)

Supplemental Consolidating Data

Consolidated

Machinery, Power

& Energy

Financial

Products

Consolidating

Adjustments

Sales and revenues:

Sales of Machinery, Power & Energy

$ 15,674

$ —

Revenues of Financial Products

895

—

1,081

(186)

Total sales and revenues

16,569

15,674

1,081

(186)

Operating costs:

Cost of goods sold

10,807

10,809

—

(2)

Selling, general and administrative expenses

1,694

1,497

209

(12)

Research and development expenses

551

—

Interest expense of Financial Products

336

—

342

(6)

Other operating (income) expenses

321

318

(19)

Total operating costs

13,709

12,879

869

(39)

Operating profit

2,860

2,795

212

(147)

Interest expense excluding Financial Products

126

130

—

(4)

Other income (expense)

(101)

143

Consolidated profit before taxes

2,818

2,564

254

—

Provision (benefit) for income taxes

646

585

—

Profit of consolidated companies

2,172

1,979

193

—

Equity in profit (loss) of unconsolidated affiliated companies

—

Profit of consolidated and affiliated companies

2,179

1,986

193

—

Less: Profit (loss) attributable to noncontrolling interests

—

(1)

—

Profit 4

$ 2,179

$ 1,987

$ 192

$ —

Elimination of Financial Products' revenues earned from MP&E.

Elimination of net expenses recorded by MP&E paid to Financial Products.

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

Profit attributable to common shareholders.

Caterpillar Inc.

Supplemental Data for Results of Operations

For the Six Months Ended June 30, 2026

(Unaudited)

(Millions of dollars)

Supplemental Consolidating Data

Consolidated

Machinery, Power

& Energy

Financial

Products

Consolidating

Adjustments

Sales and revenues:

Sales of Machinery, Power & Energy

$ 36,054

$ —

Revenues of Financial Products

1,904

—

2,331

(427)

Total sales and revenues

37,958

36,054

2,331

(427)

Operating costs:

Cost of goods sold

24,087

24,091

—

(4)

Selling, general and administrative expenses

3,834

3,409

445

(20)

Research and development expenses

1,153

—

Interest expense of Financial Products

707

—

730

(23)

Other operating (income) expenses

797

188

656

(47)

Total operating costs

30,578

28,841

1,831

(94)

Operating profit

7,380

7,213

500

(333)

Interest expense excluding Financial Products

269

281

—

(12)

Other income (expense)

658

262

321

Consolidated profit before taxes

7,769

7,194

575

—

Provision (benefit) for income taxes

1,725

1,570

155

—

Profit of consolidated companies

6,044

5,624

420

—

Equity in profit (loss) of unconsolidated affiliated companies

—

Profit of consolidated and affiliated companies

6,141

5,721

420

—

Less: Profit (loss) attributable to noncontrolling interests

(1)

—

Profit 5

$ 6,142

$ 5,722

$ 420

$ —

Elimination of Financial Products' revenues earned from MP&E.

Elimination of net expenses recorded between MP&E and Financial Products.

Elimination of interest expense recorded between Financial Products and MP&E.

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

Profit attributable to common shareholders.

Caterpillar Inc.

Supplemental Data for Results of Operations

For the Six Months Ended June 30, 2025

(Unaudited)

(Millions of dollars)

Supplemental Consolidating Data

Consolidated

Machinery, Power

& Energy

Financial

Products

Consolidating

Adjustments

Sales and revenues:

Sales of Machinery, Power & Energy

$ 29,052

$ —

Revenues of Financial Products

1,766

—

2,129

(363)

Total sales and revenues

30,818

29,052

2,129

(363)

Operating costs:

Cost of goods sold

19,772

19,776

—

(4)

Selling, general and administrative expenses

3,287

2,905

405

(23)

Research and development expenses

1,031

—

Interest expense of Financial Products

662

—

668

(6)

Other operating (income) expenses

627

643

(46)

Total operating costs

25,379

23,742

1,716

(79)

Operating profit

5,439

5,310

413

(284)

Interest expense excluding Financial Products

242

249

—

(7)

Other income (expense)

191

(146)

277

Consolidated profit before taxes

5,388

4,915

473

—

Provision (benefit) for income taxes

1,220

1,105

115

—

Profit of consolidated companies

4,168

3,810

358

—

Equity in profit (loss) of unconsolidated affiliated companies

—

Profit of consolidated and affiliated companies

4,182

3,824

358

—

Less: Profit (loss) attributable to noncontrolling interests

—

(1)

—

Profit 4

$ 4,182

$ 3,825

$ 357

$ —

Elimination of Financial Products' revenues earned from MP&E.

Elimination of net expenses recorded between MP&E and Financial Products.

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

Profit attributable to common shareholders.

Caterpillar Inc.

Supplemental Data for Financial Position

At June 30, 2026

(Unaudited)

(Millions of dollars)

Supplemental Consolidating Data

Consolidated

Machinery, Power

& Energy

Financial

Products

Consolidating

Adjustments

Assets

Current assets:

Cash and cash equivalents

$ 6,713

$ 5,945

$ 768

$ —

Receivables – trade and other

13,188

4,630

686

7,872

1,2

Receivables – finance

10,844

—

18,938

(8,094)

Prepaid expenses and other current assets

3,078

2,683

423

(28)

Inventories

20,627

—

Total current assets

54,450

33,885

20,815

(250)

Property, plant and equipment – net

15,628

11,314

4,268

Long-term receivables – trade and other

3,086

2,721

101

264

1,2

Long-term receivables – finance

14,364

—

15,912

(1,548)

Noncurrent deferred and refundable income taxes

2,286

2,596

124

(434)

Intangible assets

420

—

Goodwill

5,859

—

Other assets

6,516

4,826

2,783

(1,093)

Total assets

$ 102,609

$ 61,621

$ 44,003

$ (3,015)

Liabilities

Current liabilities:

Short-term borrowings

$ 5,046

$ —

$ 5,046

$ —

Accounts payable

10,313

10,275

251

(213)

Accrued expenses

5,825

5,069

756

—

Accrued wages, salaries and employee benefits

2,148

2,098

—

Customer advances

4,777

4,774

—

Dividends payable

749

—

Other current liabilities

2,871

2,212

709

(50)

5,8,9

Long-term debt due within one year

8,061

8,026

—

Total current liabilities

39,790

25,212

14,841

(263)

Long-term debt due after one year

32,039

10,948

22,384

(1,293)

Liability for postemployment benefits

3,744

3,743

—

Other liabilities

7,642

6,607

1,552

(517)

Total liabilities

83,215

46,510

38,778

(2,073)

Shareholders' equity

Common stock

5,654

905

(905)

Treasury stock

(54,533)

—

Profit employed in the business

70,141

64,890

5,219

Accumulated other comprehensive income (loss)

(1,867)

(901)

(966)

—

Noncontrolling interests

(1)

(69)

Total shareholders' equity

19,394

15,111

5,225

(942)

Total liabilities and shareholders' equity

$ 102,609

$ 61,621

$ 44,003

$ (3,015)

Elimination of receivables between MP&E and Financial Products.

Reclassification of MP&E's trade receivables purchased by Financial Products and Financial Products' wholesale inventory receivables.

Elimination of MP&E's insurance premiums that are prepaid to Financial Products.

Reclassification of Financial Products' other assets to property, plant and equipment.

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

Elimination of other intercompany assets and liabilities between MP&E and Financial Products.

Elimination of payables between MP&E and Financial Products.

Elimination of prepaid insurance in Financial Products' other liabilities.

Elimination of debt between MP&E and Financial Products.

Eliminations associated with MP&E's investments in Financial Products' subsidiaries.

Caterpillar Inc.

Supplemental Data for Financial Position

At December 31, 2025

(Unaudited)

(Millions of dollars)

Supplemental Consolidating Data

Consolidated

Machinery, Power

& Energy

Financial

Products

Consolidating

Adjustments

Assets

Current assets:

Cash and cash equivalents

$ 9,980

$ 9,333

$ 647

$ —

Receivables – trade and other

10,920

3,883

657

6,380

1,2

Receivables – finance

10,649

—

17,325

(6,676)

Prepaid expenses and other current assets

2,801

2,448

441

(88)

Inventories

18,135

—

Total current assets

52,485

33,799

19,070

(384)

Property, plant and equipment – net

15,140

10,985

4,106

Long-term receivables – trade and other

2,142

1,982

163

(3)

1,2

Long-term receivables – finance

14,272

—

15,538

(1,266)

Noncurrent deferred and refundable income taxes

2,882

3,208

133

(459)

Intangible assets

241

—

Goodwill

5,321

—

Other assets

6,102

4,525

2,651

(1,074)

Total assets

$ 98,585

$ 60,061

$ 41,661

$ (3,137)

Liabilities

Current liabilities:

Short-term borrowings

$ 5,514

$ —

$ 5,514

$ —

Accounts payable

8,968

8,988

268

(288)

Accrued expenses

5,587

4,877

710

—

Accrued wages, salaries and employee benefits

2,554

2,494

—

Customer advances

3,314

3,311

—

Dividends payable

703

—

Other current liabilities

2,798

2,259

645

(106)

5,8

Long-term debt due within one year

7,120

7,085

—

Total current liabilities

36,558

22,667

14,285

(394)

Long-term debt due after one year

30,696

10,955

21,018

(1,277)

Liability for postemployment benefits

3,838

3,837

—

Other liabilities

6,175

5,162

1,516

(503)

Total liabilities

77,267

42,621

36,820

(2,174)

Shareholders' equity

Common stock

7,181

905

(905)

Treasury stock

(49,539)

—

Profit employed in the business

65,448

60,639

4,799

Accumulated other comprehensive income (loss)

(1,772)

(843)

(929)

—

Noncontrolling interests

—

(68)

Total shareholders' equity

21,318

17,440

4,841

(963)