Caterpillar Inc. · Earnings release

Caterpillar Inc.

FOR IMMEDIATE RELEASE

Caterpillar Reports Second-Quarter 2025 Results

Second Quarter

($ in billions except profit per share)

Sales and Revenues

Profit Per Share

Adjusted Profit Per Share

Please see a reconciliation of GAAP to non-GAAP financial measures in the appendix on pages 13 and 14.

●

Second-quarter 2025 profit per share of $4.62; adjusted profit per share of $4.72

●

Enterprise operating cash flow was $3.1 billion in the second quarter of 2025

●

Deployed $1.5 billion of cash for share repurchases and dividends in the second quarter

IRVING, Texas, Aug. 5, 2025 – Caterpillar Inc. (NYSE: CAT) announced second-quarter 2025 results.

“The Caterpillar team remained focused on customer success and demonstrated solid operational performance this quarter,” said CEO Joe Creed. “We continued to see strong orders across our segments as demand remains resilient supported by infrastructure spending and growing energy needs.”

Sales and revenues for the second quarter of 2025 were $16.6 billion, a 1% decrease compared with $16.7 billion in the second quarter of 2024. The decrease was primarily due to unfavorable price realization of $414 million, partially offset by higher sales volume of $237 million. Higher sales volume was mainly driven by higher sales of equipment to end users.

Operating profit margin was 17.3% for the second quarter of 2025, compared with 20.9% for the second quarter of 2024. Adjusted operating profit margin was 17.6% for the second quarter of 2025, compared with 22.4% for the second quarter of 2024. Second-quarter 2025 profit per share was $4.62, compared with second-quarter 2024 profit per share of $5.48. Adjusted profit per share in the second quarter of 2025 was $4.72, compared with second-quarter 2024 adjusted profit per share of $5.99. For the second quarter of 2025 and 2024, adjusted operating profit margin and adjusted profit per share excluded restructuring costs.

For the second quarter of 2025, enterprise operating cash flow was $3.1 billion, and the company ended the second quarter with $5.4 billion of enterprise cash. In the quarter, the company deployed $0.8 billion of cash for repurchases of Caterpillar common stock and $0.7 billion of cash for dividends.

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2

CONSOLIDATED RESULTS

Consolidated Sales and Revenues

The chart above graphically illustrates reasons for the change in consolidated sales and revenues between the second quarter of 2024 (at left) and the second 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 second quarter of 2025 were $16.569 billion, a decrease of $120 million, or 1%, compared with $16.689 billion in the second quarter of 2024. The decrease was primarily due to unfavorable price realization of $414 million, partially offset by higher sales volume of $237 million and higher Financial Products' revenues of $46 million. Higher sales volume was mainly driven by higher sales of equipment to end users.

In the three primary segments, sales were higher in Energy & Transportation and lower in Construction Industries and Resource Industries.

Sales and Revenues by Segment

(Millions of dollars)

Sales

Volume

Price

Realization

Currency

Inter-Segment / Other

$

Change

%

Change

Construction Industries

$

$

$

$

9

$

$

$

(7%)

Resource Industries

(1)

(4%)

Energy & Transportation

7%

All Other Segment

5

(1)

—

(8)

(4)

(4%)

Corporate Items and Eliminations

2

1

(2)

Machinery, Energy & Transportation

—

(1%)

Financial Products Segment

—

—

—

4%

Corporate Items and Eliminations

—

—

—

8

8

Financial Products Revenues

—

—

—

5%

Consolidated Sales and Revenues

$

$

$

$

$

$

$

(1%)

(more)

3

Sales and Revenues by Geographic Region

North America

Latin America

EAME

Asia/Pacific

External Sales and Revenues

Inter-Segment

Total Sales and Revenues

(Millions of dollars)

$

% Chg

$

% Chg

$

% Chg

$

% Chg

$

% Chg

$

% Chg

$

% Chg

Construction Industries

$

$

$

$

6%

$

(8%)

$

$

(7%)

Resource Industries

(8%)

3%

(4%)

(1%)

(4%)

Energy & Transportation

(2%)

(1%)

8%

2%

7%

All Other Segment

—%

—

—%

3

(4%)

Corporate Items and Eliminations

(3)

(3)

(7)

Machinery, Energy & Transportation

(3%)

(4%)

6%

(2%)

(1%)

—

—%

(1%)

Financial Products Segment

5%

4%

2%

(3%)

4%

—

—%

4%

Corporate Items and Eliminations

—

Financial Products Revenues

6%

6%

4%

1%

5%

—

—%

5%

Consolidated Sales and Revenues

$

(2%)

$

(4%)

$

6%

$

(2%)

$

(1%)

$

—

—%

$

(1%)

Construction Industries

$

$

$

$

$

$

$

Resource Industries

Energy & Transportation

All Other Segment

—

4

Corporate Items and Eliminations

(1)

(5)

Machinery, Energy & Transportation

—

Financial Products Segment

—

Corporate Items and Eliminations

—

Financial Products Revenues

—

Consolidated Sales and Revenues

$

$

$

$

$

$

—

$

(more)

4

Consolidated Operating Profit

The chart above graphically illustrates reasons for the change in consolidated operating profit between the second quarter of 2024 (at left) and the second 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 second quarter of 2025 was $2.860 billion, a decrease of $622 million, or 18%, compared with $3.482 billion in the second quarter of 2024. The decrease was mainly due to unfavorable manufacturing costs. Unfavorable manufacturing costs largely reflected the impact of higher tariffs.

Profit (Loss) by Segment

(Millions of dollars)

$

Change

%

Change

Construction Industries

$

$

$

%)

Resource Industries

%)

Energy & Transportation

4

%

All Other Segment

(5)

%)

Corporate Items and Eliminations

Machinery, Energy & Transportation

%)

Financial Products Segment

9

%

Corporate Items and Eliminations

Financial Products

%

Consolidating Adjustments

Consolidated Operating Profit

$

$

$

%)

(more)

5

Other Profit/Loss and Tax Items

•Other income (expense) in the second quarter of 2025 was income of $84 million, compared with income of $155 million in the second quarter of 2024. The change was primarily driven by unfavorable foreign currency impacts, partially offset by favorable impacts from total return swap contracts.

•The effective tax rate for the second quarter of 2025 was 23.0% compared to 23.9% for the second quarter of 2024. Excluding discrete items, the second-quarter 2025 estimated annual effective tax rate was 23.0% compared with 22.5% for the second quarter of 2024. The estimated annual effective tax rate in the second quarter of 2024 excluded the impact of second-quarter losses of $228 million for the divestiture of two non-U.S. entities with no related tax benefit.

Please see a reconciliation of GAAP to non-GAAP financial measures in the appendix on pages 13 and 14.

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6

CONSTRUCTION INDUSTRIES

(Millions of dollars)

Segment Sales

Sales Volume

Price Realization

Currency

Inter-Segment

$

Change

%

Change

Total Sales

$

$

$

$

9

$

$

$

(7

%)

Sales by Geographic Region

$

Change

%

Change

North America

$

$

$

%)

Latin America

%)

EAME

%

Asia/Pacific

6

%

External Sales

(8

%)

Inter-segment

%

Total Sales

$

$

$

(7

%)

Segment Profit

Change

%

Change

Segment Profit

$

$

$

%)

Segment Profit Margin

%

%

pts)

Construction Industries’ total sales were $6.190 billion in the second quarter of 2025, a decrease of $493 million, or 7%, compared with $6.683 billion in the second quarter of 2024. The decrease was primarily due to unfavorable price realization. Sales volume was also lower, primarily driven by the impact from changes in dealer inventories. Dealer inventory decreased during the second quarter of 2025, while remaining about flat during the second quarter of 2024.

•In North America, sales decreased due to unfavorable price realization and lower sales volume. Lower sales volume was mainly driven by the impact from changes in dealer inventories. Dealer inventory decreased during the second quarter of 2025, compared with an increase during the second quarter of 2024.

•Sales decreased in Latin America primarily due to lower sales volume and unfavorable currency impacts primarily related to the Brazilian real. Lower sales volume was mainly driven by the impact from changes in dealer inventories. Dealer inventory decreased during the second quarter of 2025, compared with an increase during the second quarter of 2024.

•In EAME, sales increased due to higher sales volume and favorable currency impacts primarily related to the euro, partially offset by unfavorable price realization. Higher sales volume was mainly driven by the impact from changes in dealer inventories. Dealer inventory increased during the second quarter of 2025, compared with a decrease during the second quarter of 2024.

•Sales increased in Asia/Pacific due to higher sales volume, partially offset by unfavorable price realization. Higher sales volume was mainly driven by the impact from changes in dealer inventories. Dealer inventory increased during the second quarter of 2025, compared with a decrease during the second quarter of 2024.

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7

Construction Industries’ segment profit was $1.244 billion in the second quarter of 2025, a decrease of $497 million, or 29%, compared with $1.741 billion in the second quarter of 2024. The decrease was mainly due to unfavorable price realization. In addition, tariffs were also higher.

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8

RESOURCE INDUSTRIES

(Millions of dollars)

Segment Sales

Sales Volume

Price Realization

Currency

Inter-Segment

$

Change

%

Change

Total Sales

$

$

$

$

$

(1)

$

$

(4

%)

Sales by Geographic Region

$

Change

%

Change

North America

$

$

$

(8

%)

Latin America

3

%

EAME

%

Asia/Pacific

%)

External Sales

(4

%)

Inter-segment

(1)

(1

%)

Total Sales

$

$

$

(4

%)

Segment Profit

Change

%

Change

Segment Profit

$

$

$

%)

Segment Profit Margin

%

%

pts)

Resource Industries’ total sales were $3.087 billion in the second quarter of 2025, a decrease of $119 million, or 4%, compared with $3.206 billion in the second quarter of 2024. The decrease was primarily due to unfavorable price realization.

Resource Industries’ segment profit was $537 million in the second quarter of 2025, a decrease of $181 million, or 25%, compared with $718 million in the second quarter of 2024. The decrease was mainly due to unfavorable price realization of $94 million, unfavorable manufacturing costs of $44 million and the profit impact of lower sales volume of $31 million, including an unfavorable mix of products. Unfavorable manufacturing costs largely reflected the impact of higher tariffs.

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9

ENERGY & TRANSPORTATION

(Millions of dollars)

Segment Sales

Sales Volume

Price Realization

Currency

Inter-Segment

$

Change

%

Change

Total Sales

$

$

$

$

$

$

$

7

%

Sales by Application

$

Change

%

Change

Oil and Gas

$

$

$

2

%

Power Generation

%

Industrial

1

%

Transportation

(7

%)

External Sales

8

%

Inter-segment

2

%

Total Sales

$

$

$

7

%

Segment Profit

Change

%

Change

Segment Profit

$

$

$

4

%

Segment Profit Margin

%

%

pts)

Energy & Transportation’s total sales were $7.836 billion in the second quarter of 2025, an increase of $499 million, or 7%, compared with $7.337 billion in the second quarter of 2024. The increase was due to higher sales volume of $326 million and favorable price realization of $139 million.

•Oil and Gas – Sales increased for turbines and turbine-related services. The increase was partially offset by lower sales of reciprocating engines, primarily engines used in gas compression applications.

•Power Generation – Sales increased in large reciprocating engines, primarily data center applications.

•Industrial – Sales increased in EAME, partially offset by decreased sales in North America and Latin America.

•Transportation – Sales decreased in marine. International locomotive deliveries were also lower.

Energy & Transportation’s segment profit was $1.585 billion in the second quarter of 2025, an increase of $60 million, or 4%, compared with $1.525 billion in the second quarter of 2024. The increase was primarily due to favorable price realization of $139 million and the profit impact of higher sales volume of $63 million, partially offset by unfavorable manufacturing costs of $154 million. Unfavorable manufacturing costs largely reflected the impact of higher tariffs.

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FINANCIAL PRODUCTS SEGMENT

(Millions of dollars)

Revenues by Geographic Region

$

Change

%

Change

North America

$

$

$

5

%

Latin America

4

4

%

EAME

2

2

%

Asia/Pacific

(3)

(3

%)

Total Revenues

$

$

$

4

%

Segment Profit

Change

%

Change

Segment Profit

$

$

$

9

%

Financial Products’ segment revenues were $1.042 billion in the second quarter of 2025, an increase of $38 million, or 4%, compared with $1.004 billion in the second quarter of 2024. The increase was primarily due to a favorable impact from higher average earning assets of $49 million driven by North America and higher revenues from Insurance Services of $5 million, partially offset by an unfavorable impact from lower average financing rates of $20 million mainly in North America.

Financial Products’ segment profit was $248 million in the second quarter of 2025, an increase of $21 million, or 9%, compared with $227 million in the second quarter of 2024. The increase was mainly due to a favorable impact from equity securities of $28 million and a favorable impact from higher average earning assets of $20 million, partially offset by higher provision for credit losses at Cat Financial of $13 million and an unfavorable impact from lower net yield on average earning assets of $10 million.

At the end of the second quarter of 2025, past dues at Cat Financial were 1.62%, compared with 1.74% at the end of the second quarter of 2024. Write-offs, net of recoveries, were $18 million for both the second quarter of 2025 and the second quarter of 2024. As of June 30, 2025, Cat Financial's allowance for credit losses totaled $290 million, or 0.94% of finance receivables, compared with $282 million, or 0.95% of finance receivables at March 31, 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 $602 million in the second quarter of 2025, an increase of $15 million from the second quarter of 2024. Lower restructuring costs, primarily due to the absence of the divestiture of two non-U.S. entities in 2024, and lower corporate costs, were more than offset by increased expenses due to timing differences, an unfavorable change in fair value adjustments related to deferred compensation plans and unfavorable impacts of segment reporting methodology differences.

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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. 5, 2025.

iii.Information on non-GAAP financial measures is included in the appendix on pages 13 and 14.

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. 5, 2025, to discuss its 2025 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

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)

Caterpillar investor relations contact: Alex Kapper, +1 773-250-2227 or Kapper_Alex@cat.com

Caterpillar media contact: Tiffany Heikkila, +1 832-573-0958 or Tiffany.Heikkila@cat.com

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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.

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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) other restructuring income/costs and (ii) restructuring costs related to the divestiture of two non-U.S. entities in 2024. The company does not consider these items indicative of earnings from ongoing business activities and believes the non-GAAP measure provides investors with useful perspective on underlying business results and trends and aids with assessing the company’s period-over-period results. 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 Share

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

$

%

$

$

$

$

Other restructuring (income) costs

%

Three Months Ended June 30, 2025 - Adjusted

$

%

$

$

$

$

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

$

%

$

$

$

$

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

%

—

Other restructuring (income) costs

%

6

Three Months Ended June 30, 2024 - Adjusted

$

%

$

$

$

$

(more)

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, 2025, and 2024, these items consist of (i) the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S. GAAP compensation expense and (ii) restructuring costs related to the divestiture of two non-U.S. entities in 2024. The company believes the non-GAAP measures will provide investors with useful perspective on underlying business results and trends and aids with assessing the company's period-over-period results.

A reconciliation of the effective tax rate to annual effective tax rate, excluding discrete items is below:

(Dollars in millions)

Profit Before Taxes

Provision (Benefit) for Income Taxes

Effective Tax Rate

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

$

$

%

Excess stock-based compensation

—

1

Annual effective tax rate, excluding discrete items

$

$

%

Excess stock-based compensation

—

(1)

Other restructuring (income) costs

Three Months Ended June 30, 2025 - Adjusted

$

$

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

$

$

%

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

—

Excess stock-based compensation

—

4

Annual effective tax rate, excluding discrete items

$

$

%

Excess stock-based compensation

—

(4)

Other restructuring (income) costs

6

Three Months Ended June 30, 2024 - Adjusted

$

$

(more)

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 16 to 26 reconcile ME&T and Financial Products to Caterpillar Inc. consolidated financial information.

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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,

Sales and revenues:

Sales of Machinery, Energy & Transportation

$

$

$

$

Revenues of Financial Products

Total sales and revenues

Operating costs:

Cost of goods sold

Selling, general and administrative expenses

Research and development expenses

Interest expense of Financial Products

Other operating (income) expenses

Total operating costs

Operating profit

Interest expense excluding Financial Products

Other income (expense)

Consolidated profit before taxes

Provision (benefit) for income taxes

Profit of consolidated companies

Equity in profit (loss) of unconsolidated affiliated companies

7

Profit of consolidated and affiliated companies

Less: Profit (loss) attributable to noncontrolling interests

—

—

—

(2)

Profit 1

$

$

$

$

Profit per common share

$

$

$

$

Profit per common share — diluted 2

$

$

$

$

Weighted-average common shares outstanding (millions)

– Basic

– Diluted 2

1

Profit attributable to common shareholders.

2

Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.

(more)

Caterpillar Inc.

Condensed Consolidated Statement of Financial Position

(Unaudited)

(Millions of dollars)

Assets

Current assets:

Cash and cash equivalents

$

$

Receivables – trade and other

Receivables – finance

Prepaid expenses and other current assets

Inventories

Total current assets

Property, plant and equipment – net

Long-term receivables – trade and other

Long-term receivables – finance

Noncurrent deferred and refundable income taxes

Intangible assets

Goodwill

Other assets

Total assets

$

$

Liabilities

Current liabilities:

Short-term borrowings:

-- Financial Products

$

$

Accounts payable

Accrued expenses

Accrued wages, salaries and employee benefits

Customer advances

Dividends payable

Other current liabilities

Long-term debt due within one year:

-- Machinery, Energy & Transportation

-- Financial Products

Total current liabilities

Long-term debt due after one year:

-- Machinery, Energy & Transportation

-- Financial Products

Liability for postemployment benefits

Other liabilities

Total liabilities

Shareholders’ equity

Common stock

Treasury stock

Profit employed in the business

Accumulated other comprehensive income (loss)

Noncontrolling interests

2

3

Total shareholders’ equity

Total liabilities and shareholders’ equity

$

$

(more)

Caterpillar Inc.

Condensed Consolidated Statement of Cash Flow

(Unaudited)

(Millions of dollars)

Six Months Ended June 30,

Cash flow from operating activities:

Profit of consolidated and affiliated companies

$

$

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

Depreciation and amortization

Provision (benefit) for deferred income taxes

(Gain) loss on divestiture

—

Other

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

Receivables – trade and other

Inventories

Accounts payable

Accrued expenses

Accrued wages, salaries and employee benefits

Customer advances

Other assets – net

Other liabilities – net

Net cash provided by (used for) operating activities

Cash flow from investing activities:

Capital expenditures – excluding equipment leased to others

Expenditures for equipment leased to others

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

Additions to finance receivables

Collections of finance receivables

Proceeds from sale of finance receivables

Investments and acquisitions (net of cash acquired)

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

Proceeds from maturities and sale of securities

Investments in securities

Other – net

Net cash provided by (used for) investing activities

Cash flow from financing activities:

Dividends paid

Common stock issued, including treasury shares reissued

8

Payments to purchase common stock

Excise tax paid on purchases of common stock

—

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

Payments on debt (original maturities greater than three months)

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

Net cash provided by (used for) financing activities

Effect of exchange rate changes on cash

(7)

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

Cash, cash equivalents and restricted cash at beginning of period

Cash, cash equivalents and restricted cash at end of period

$

$

Cash equivalents primarily represent short-term, highly liquid investments with original maturities of generally three months or less.

(more)

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, Energy & Transportation

Financial

Products

Consolidating

Adjustments

Sales and revenues:

Sales of Machinery, Energy & Transportation

$

$

$

—

$

—

Revenues of Financial Products

—

1

Total sales and revenues

Operating costs:

Cost of goods sold

—

(2)

2

Selling, general and administrative expenses

2

Research and development expenses

—

—

Interest expense of Financial Products

—

(6)

2

Other operating (income) expenses

2

Total operating costs

Operating profit

Interest expense excluding Financial Products

—

(4)

3

Other income (expense)

4

Consolidated profit before taxes

—

Provision (benefit) for income taxes

—

Profit of consolidated companies

—

Equity in profit (loss) of unconsolidated affiliated companies

7

7

—

—

Profit of consolidated and affiliated companies

—

Less: Profit (loss) attributable to noncontrolling interests

—

(1)

1

—

Profit 5

$

$

$

$

—

1

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

2

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

3

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

4

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.

5

Profit attributable to common shareholders.

(more)

Caterpillar Inc.

Supplemental Data for Results of Operations

For the Three Months Ended June 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

$

$

$

—

$

—

Revenues of Financial Products

—

1

Total sales and revenues

Operating costs:

Cost of goods sold

—

(2)

2

Selling, general and administrative expenses

2

Research and development expenses

—

—

Interest expense of Financial Products

—

—

Other operating (income) expenses

2

Total operating costs

Operating profit

Interest expense excluding Financial Products

—

—

Other income (expense)

3

Consolidated profit before taxes

(3)

—

Provision (benefit) for income taxes

—

Profit of consolidated companies

—

Equity in profit (loss) of unconsolidated affiliated companies

—

—

Profit of consolidated and affiliated companies

—

Less: Profit (loss) attributable to noncontrolling interests

—

—

—

—

Profit 4

$

$

$

$

—

1

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

2

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

3

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.

4

Profit attributable to common shareholders.

(more)

Caterpillar Inc.

Supplemental Data for Results of Operations

(Unaudited)

(Millions of dollars)

Supplemental Consolidating Data

Consolidated

Machinery, Energy & Transportation

Financial

Products

Consolidating

Adjustments

Sales and revenues:

Sales of Machinery, Energy & Transportation

$

$

$

—

$

—

Revenues of Financial Products

—

1

Total sales and revenues

Operating costs:

Cost of goods sold

—

(4)

2

Selling, general and administrative expenses

2

Research and development expenses

—

—

Interest expense of Financial Products

—

(6)

2

Other operating (income) expenses

2

Total operating costs

Operating profit

Interest expense excluding Financial Products

—

(7)

3

Other income (expense)

4

Consolidated profit before taxes

—

Provision (benefit) for income taxes

—

Profit of consolidated companies

—

Equity in profit (loss) of unconsolidated affiliated companies

—

—

Profit of consolidated and affiliated companies

—

Less: Profit (loss) attributable to noncontrolling interests

—

(1)

1

—

Profit 5

$

$

$

$

—

1

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

2

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

3

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

4

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.

5

Profit attributable to common shareholders.

(more)

Caterpillar Inc.

Supplemental Data for Results of Operations

(Unaudited)

(Millions of dollars)

Supplemental Consolidating Data

Consolidated

Machinery, Energy & Transportation

Financial

Products

Consolidating

Adjustments

Sales and revenues:

Sales of Machinery, Energy & Transportation

$

$

$

—

$

—

Revenues of Financial Products

—

1

Total sales and revenues

Operating costs:

Cost of goods sold

—

(4)

2

Selling, general and administrative expenses

4

2

Research and development expenses

—

—

Interest expense of Financial Products

—

—

Other operating (income) expenses

2