Caterpillar Inc. (CAT)

Caterpillar reported third-quarter 2026 sales and revenues of $20.7 billion on 29 October, up 17 percent from $17.6 billion a year earlier 1. Profit per share was $7.13, against $4.88 1. Operating profit rose 38 percent to $4.214 billion, and the operating margin was 20.4 percent, against 17.3 percent 1.

The engine and turbine business, Power & Energy, sold $8.784 billion, 18 percent more, and its power generation sales grew 30 percent to $3,421 million 1. The company said the gain came mainly in turbines and large engines, primarily in data center applications 1.

Chief executive Joe Creed credited strong order rates and a record backlog 1. Backlog, the orders the company believes are firm, was about $72.1 billion at the end of June 3. Construction Dive reported on 30 October that it reached $78 billion in the third quarter, nearly double a year earlier 8.

Resource Industries, the mining and rail business, held a margin of 13.5 percent against 13.6 percent as manufacturing costs rose $208 million, primarily from higher material costs, including tariffs 1.

In August the company said it expected 2026 tariff costs of around $2.2 billion, not counting expected recoveries, and that it would raise factory throughput in the second half of 2026 3. The open question is how fast the record backlog turns into shipments as that capacity comes on 3.

On 1 November Derrick York, who ran the Solar Turbines subsidiary, became group president of Resource Industries, as the board decided on 14 October 4.

Caterpillar began as Caterpillar Tractor Co., organized in California in 1925, and was reorganized as Caterpillar Inc. in Delaware in 1986 2. Its 2025 annual report calls it the world's leading maker of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives 2.

Revenue fell 22 percent in 2020 to $41.748 billion from $53.800 billion in 2019 6. The company blamed lower end-user demand for equipment and services and changes in dealer inventories across all three primary segments 6. Profit per share was $5.46, down from $10.74 6.

Fourth-quarter 2020 sales were $11.235 billion, down 15 percent from $13.144 billion in the fourth quarter of 2019 6.

Revenue was $50.971 billion in 2021 and rose 17 percent to $59.427 billion in 2022 7. The company said the increase came primarily from favorable price realization, meaning higher selling prices, and higher sales volume, partly offset by weaker currencies 7. Operating profit as a share of revenue was 13.3 percent in 2022, against 13.5 percent in 2021 7.

Revenue was $67,060 million in 2023 and $64,809 million in 2024 2. Operating profit, revenue less the costs of running the business, was $12,966 million in 2023 and $13,072 million in 2024 2.

In 2025 revenue rose 4 percent to $67.589 billion 2. Higher sales volume of $3.389 billion, mainly more equipment sold to end users, was partly offset by unfavorable price realization of $817 million 2. Profit per share was $18.81, down from $22.05, mainly on unfavorable manufacturing costs and price realization, and the company said those costs largely reflected higher tariffs 2.

Operating profit as a share of revenue was 16.5 percent in 2025, against 20.2 percent in 2024 2. Backlog the company believed firm grew to about $51.2 billion at the end of 2025 from $30.0 billion a year earlier, with Power & Energy the largest increase 2.

In 2025 it repurchased $5.190 billion of its stock and paid $2.749 billion in dividends 2. Capital expenditures were $2.794 billion against $1.988 billion in 2024 2.

In 2025 it introduced a revised strategy with three growth pillars, the first two named Commercial Excellence and Advanced Technology Leader 2. On 3 February 2026 an Australian court approved its purchase of the mining software firm RPMGlobal for about $790 million, excluding cash acquired 2.

Power & Energy

Power & Energy makes reciprocating engines (piston engines), generator sets, turbines and gas compressors, and sells services around them 2. Its third-quarter sales were $8.784 billion with a segment profit margin of 24.4 percent, against 21.9 percent 1.

By use, third-quarter sales were $3,421 million in power generation, $2,236 million in oil and gas and $1,631 million in industrial applications 1. For all of 2025 the segment sold $32,201 million, up 12 percent 2.

The annual report names Cummins, Deutz, Rolls-Royce Power Systems and Siemens Energy as principal global competitors, with GE Vernova among others in some markets 2.

Construction Industries

Construction Industries sells machines for roads, buildings and infrastructure, among them excavators, wheel loaders, backhoe loaders, motor graders, skid steer loaders and asphalt pavers 2. Third-quarter sales were $7.983 billion, up 18 percent, and North America grew 23 percent to $4,796 million 1.

The segment margin was 22.9 percent against 20.4 percent, after $252 million of higher manufacturing costs that included freight 1. Its sales were $25,060 million in 2025, down 2 percent, after price realization turned unfavorable by $1,136 million 2.

Global rivals named in the annual report include Komatsu, Deere, Volvo Construction Equipment, Hitachi and Sany, with regional makers such as XCMG and LiuGong in China 2.

Resource Industries and rail

Resource Industries builds the large machines used in mining, heavy construction and quarries, and sells fleet management and autonomy technology 2. Third-quarter sales were $4.615 billion, up 15 percent, with mining, heavy construction and quarry sales up 22 percent to $3,697 million and rail down 5 percent to $832 million 1.

The company said rail fell on lower international locomotive deliveries, partly offset by more rail services 1. The company said in the annual report that the rail division would move into Resource Industries, with history recast in March 2026 2.

Surface mining rivals named in the annual report are Komatsu, Epiroc, Liebherr, Sandvik, Deere and Volvo Construction Equipment, and underground rivals are Epiroc, Komatsu and Sandvik 2.

Financial products

Cat Financial finances machines and engines for customers and dealers, and a sister unit sells insurance 2. Segment revenues were $1.177 billion in the third quarter, up 9 percent, and segment profit was $264 million 1.

Past dues at Cat Financial were 1.31 percent, against 1.47 percent a year earlier 1.

Plants, dealers and people

Machines reach buyers through independent dealers, 41 in the United States and 109 elsewhere, serving 190 countries 2. The company employed about 118,000 full-time people at the end of 2025 2. Its headquarters is a leased office in Irving, Texas 2.

Construction Industries builds in places such as Decatur and East Peoria in Illinois, Victoria in Texas, Suzhou in China and Godollo in Hungary 2. Construction Dive reported that the company said in September it will invest $1 billion in a compact equipment plant in Sanford, North Carolina 8.

Joseph E Creed became chief executive in 2025, and D James Umpleby III is executive chairman 2. Andrew R J Bonfield is chief financial officer 2. Denise C Johnson is leaving her post as group president of Resource Industries as of 1 November 2026 4.

Current problems

The Supreme Court ruled on 20 February 2026 that tariffs imposed under the emergency powers law, IEEPA, were unauthorized, and the company put its IEEPA tariff costs at about $1.0 billion 3. Third-quarter operating profit included $128 million of recoveries 1.

The annual report also describes tax and customs disputes in Brazil, which the company believes will not have a material adverse effect 2. Other actions include claimed asbestos exposure and product liability, which it does not expect to be material 2.

The umbrella, in words

Perkins Engines Company Limited makes reciprocating engines, sold through 86 distributors in 183 countries, and FG Wilson branded power generation systems go through 108 distributors in 159 countries 2. In developing economies the company also sells SEM brand machines 2.

Exhibit 21 lists wholly owned subsidiaries, among them Caterpillar Financial Services Corporation, Caterpillar Life Insurance Company, F. Perkins Limited and FG Wilson (Engineering) Limited 9. Solar Turbines, whose president was named to lead Resource Industries, is described as a subsidiary in the 8-K 4.

Caterpillar agreed to buy RPMGlobal, an Australian mining software company, for about $790 million excluding cash acquired 2. It owns and operates the dealer for Japan, Nippon Caterpillar Division, covering about 80 percent of that market 2.

The annual report counts 19,227 shareholders of record at the end of 2025 2. Its main owned and leased sites are factories, parts distribution centers and technical centers, and it calls them adequate for present use 2.

For 2026 the company said in August that it expects sales and revenues growth in the mid-to-high teens over 2025 3. It expects strong sales growth across each of its three primary segments, mainly on higher volume and favorable price realization 3. The third-quarter release carries no full-year outlook 1.

It expects tariff costs of around $2.2 billion for 2026, excluding recoveries, restructuring costs of about $300 million to $350 million and capital expenditures of about $3.5 billion 3. It expects a 23.0 percent tax rate, excluding discrete items 3.

It expects a more typical decrease in Construction Industries dealer inventory of over $1.0 billion in the fourth quarter of 2026 3. It also expects that inventory to end 2026 above year-end 2025 3.

By market, the company said it expects data center demand to keep power generation growing for both engines and turbines 3. It expects sales of equipment to end users to rise in construction and in mining, helped in mining by demand for copper and gold 3.

In the annual report the company set a goal of growing sales and revenues around the top end of its 5 to 7 percent compound annual growth rate target 2. It said its backlog, $78 billion in the third quarter per Construction Dive, supports that volume 8.

The company also named the pressures it is watching: supply chain disruptions, inflationary cost, labor pressures and the impact of trade policies, with transportation, certain components and raw materials as areas of particular focus 3. It said it continues to work to minimize supply chain challenges that may affect its ability to meet customer demand 3.

On capital return, the board raised the quarterly dividend 8 percent in June to $1.63 a share 3. As of 30 June 2026, $8.415 billion remained under the 2024 repurchase authorization 3.

On 27 August 2026 the company signed a 364-day credit facility of up to $3.5 billion that expires on 26 August 2027 5. Derrick York takes over Resource Industries on 1 November 2026 4.

Past

Revenue grew from $39 billion in fiscal 2016 to $68 billion in fiscal 2025, up 6.4% a year, rising in 6 of 9 years; net income was positive in 9 of 10 of those years, with the deepest fall a 24% drop from fiscal 2018 to fiscal 2020. Over the three fiscal years to 2025, the diluted share count shrank about 3.8% a year, and dividends and buybacks returned about 70% of operating cash flow. Dividends declared per share rose from $3.08 in fiscal 2016 to $5.94 in fiscal 2025. No warning events appear in the filings since 2017: no bankruptcy notice, no debt default notice, no exchange listing notice, no restatement warning, no auditor change, no material cyber incident and no late-report notice. 12

Present

In fiscal 2025 ended 2025-12-31, Caterpillar reported revenue of $68 billion and net income of $8.9 billion. Return on equity was 42 cents of profit per dollar of shareholders' money; gross profitability was 23 cents per dollar of everything the company owns; leverage was 78 cents owed per dollar of assets; the share count shrank 3.5% over the year. By revenue size, Caterpillar ranks in the top 6% of its industry family; its net margin of 13.1% ranks in the top 19%; revenue growth of 4.4% a year over the last three filed years ranks in the top 31%. 31

The chief executive, Joseph E. Creed, has been filing under that title since 2025-05-13, 1.4 years; the 21 officers and directors filing in the last fifteen months have been on the record a median of 5.5 years; 6 officer or director changes were reported since 2023-10-21 against the 21 people in charge now. 1

Future

A quarterly report (Form 10-Q) for the quarter ending 2026-09-30 is due by 2026-11-09. An annual report (Form 10-K) for the fiscal year ending 2026-12-31 is due by 2027-03-01. Cash of $10.0 billion against debt of $31 billion leaves net cash at minus 21% of assets; cash from operations less capital spending is 13.2% of revenue; gross margin is 33.8%; research spending is 3.2% of revenue. Revenue grew 4.4% a year over the last three filed years against 6.4% over all ten, slowing; the newest year grew 4.3%; research spending grew 5.8% a year; capital spending grew 29.6% a year. 41

How the company operates

In fiscal 2025, Caterpillar's revenue came from Machinery Power Energy at 95% and Financial Products at 5%; by geography, North America accounted for 54%, EMEA 19%, Asia Pacific 17%, and Latin America 10%. Caterpillar reported two product lines in fiscal 2025: Machinery Power Energy at $64 billion and Financial Products at $3.6 billion; both grew against the year before. 31

New moves

On 2026-10-15, Caterpillar filed a Form 8-K reporting an officer or director change and another event. On 2026-09-01, the company filed a Form 8-K reporting a major agreement signed and new debt or an obligation taken on. 4