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Item 2. Management’s Discussion and Analysis

2025-08-06 compared with 2025-05-07 · 494 added, 207 removed, 660 unchanged (52% of the section changed)

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Risk Factors of the 2024 Form 10-K .

Highlights for the first quarter of 2025 include:

• Total sales and revenues for the first quarter of 2025 were $14.249 billion, a decrease of $1.550 billion, or 10 percent, compared with $15.799 billion in the first quarter of 2024.

Sales were lower across the three primary segments.

• Operating profit margin was 18.1 percent for the first quarter of 2025, compared with 22.3 percent for the first quarter of 2024.

Adjusted operating profit margin was 18.3 percent for the first quarter of 2025, compared with 22.2 percent for the first quarter of 2024.

• First-quarter 2025 profit per share was $4.20, and excluding the items in the table below, adjusted profit per share was $4.25.

First-quarter 2024 profit per share was $5.75, and excluding the items in the table below, adjusted profit per share was $5.60.

• Caterpillar ended the first quarter of 2025 with $3.6 billion of enterprise cash.

In order for our results to be more meaningful to our readers, we have separately quantified the impact of significant items.

Three Months Ended March 31, 2025 Three Months Ended March 31, 2024

Highlights for the second quarter of 2025 include:

• Total sales and revenues for the second quarter of 2025 were $16.569 billion, a decrease of $120 million, or 1 percent, compared with $16.689 billion in the second quarter of 2024.

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

• Operating profit margin was 17.3 percent for the second quarter of 2025, compared with 20.9 percent for the second quarter of 2024.

Adjusted operating profit margin was 17.6 percent for the second quarter of 2025, compared with 22.4 percent for the second quarter of 2024.

• Second-quarter 2025 profit per share was $4.62, and excluding the items in the table below, adjusted profit per share was $4.72.

Second-quarter 2024 profit per share was $5.48, and excluding the items in the table below, adjusted profit per share was $5.99.

• Caterpillar ended the second quarter of 2025 with $5.4 billion of enterprise cash.

Highlights for the six months ended June 30, 2025 include:

• Total sales and revenues were $30.818 billion for the six months ended June 30, 2025, a decrease of $1.670 billion, or 5 percent, compared with $32.488 billion for the six months ended June 30, 2024.

• Operating profit margin was 17.6 percent for the six months ended June 30, 2025, compared with 21.5 percent for the six months ended June 30, 2024.

Adjusted operating profit margin was 17.9 percent for the six months ended June 30, 2025, compared with 22.3 percent for the six months ended June 30, 2024.

• Profit per share for the six months ended June 30, 2025, was $8.82, and excluding the items in the table below, adjusted profit per share was $8.97.

Profit per share for the six months ended June 30, 2024, was $11.23, and excluding the items in the table below, adjusted profit per share was $11.59.

• Enterprise operating cash flow was $4.4 billion for the six months ended June 30, 2025.

In order for our results to be more meaningful to our readers, we have separately quantified the impact of several significant items.

Three Months Ended June 30, 2025 Three Months Ended June 30, 2024 Six Months Ended June 30, 2025 Six Months Ended June 30, 2024

(Dollars in millions except per share data) Profit Before Taxes Profit

Per Share Profit Before Taxes Profit

Profit $ 2,818 $ 4.62 $ 3,500 $ 5.48 $ 5,388 $ 8.82 $ 7,032 $ 11.23

Other restructuring (income) costs 56 0.10 30 0.04 89 0.15 88 0.14

Restructuring (income) - non-U.S.

mining entity divestiture — — (64) (0.24)

Restructuring (income) costs - divestitures of certain non-U.S.

entities — — 228 0.47 — — 164 0.22

Adjusted profit $ 2,874 $ 4.72 $ 3,758 $ 5.99 $ 5,477 $ 8.97 $ 7,284 $ 11.59

A detailed reconciliation of GAAP to non-GAAP financial measures is included on pages 67 - 69 .

Total sales and revenues for the first quarter of 2025 were $14.249 billion, a decrease of $1.550 billion, or 10 percent, compared with $15.799 billion in the first quarter of 2024.

The decrease was primarily due to lower sales volume and unfavorable price realization .

Lower sales volume was mainly driven by the impact from changes in dealer inventories .

First-quarter 2025 profit per share was $4.20, compared with $5.75 profit per share in the first quarter of 2024.

In the first quarter of 2025 and 2024, profit per share included restructuring income/costs .

Profit for the first quarter of 2025 was $2.003 billion, a decrease of $853 million, or 30 percent, compared with $2.856 billion for the first quarter of 2024.

The decrease was mainly due to the profit impact of lower sales volume and unfavorable price realization.

Total sales and revenues for the second quarter of 2025 were $16.569 billion, a decrease of $120 million, or 1 percent, 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.

Second-quarter 2025 profit per share was $4.62, compared with $5.48 profit per share in the second quarter of 2024.

In the second quarter of 2025 and 2024, profit per share included restructuring costs.

Profit for the second quarter of 2025 was $2.179 billion, a decrease of $502 million, or 19 percent, compared with $2.681 billion for the second quarter of 2024.

The decrease was mainly due to unfavorable manufacturing costs .

Unfavorable manufacturing costs largely reflected the impact of higher tariffs.

Trends and Economic Conditions

Outlook for Key End Markets

Our results continue to reflect the benefit of the diversity of our end markets.

In Construction Industries , we are encouraged by another quarter of better-than-expected sales of equipment to end users and strong order rates across many of our regions as customers are responding to the attractiveness of our sales merchandising programs.

Construction spend in North America remains at healthy levels, and infrastructure projects funded by the Infrastructure Investment and Jobs Act (IIJA) continue to be awarded.

In Asia Pacific, outside of China, economic conditions continue to be soft.

China has shown positive momentum in the excavator industry above 10-tons, but from a very low level of activity.

In EAME , weak economic conditions in Europe remain, while conditions are supportive of investment in Africa and the Middle East.

Construction activity in Latin America is expected to moderately decline in 2025 as compared to 2024.

In Resource Industries , we are starting the year with strong order rates and backlog growth, particularly for large mining trucks.

Rebuild activity is expected to remain healthy.

Although most key commodities remain above investment thresholds, customers continue to display capital discipline.

Customer product utilization remains high, the age of the fleet remains

elevated, and we continue to see growing customer acceptance of our autonomous solutions.

We continue to see strong orders across our three primary segments as demand remains resilient supported by infrastructure spending and growing energy needs.

As a result, the backlog increased by about $2.5 billion with increases across all three primary segments.

In Construction Industries, we are encouraged by another quarter of higher sales of equipment to end users, strong order rates across many of our regions, and backlog growth.

Customers continue to be responsive to the attractive rates we are offering through Cat Financial.

As a result, we anticipate growth in sales of equipment to end users in 2025 despite softness in the global industry.

In North America, overall construction spending remains at healthy levels and infrastructure projects funded by the Infrastructure Investment and Jobs Act (IIJA) continue to be awarded.

We now expect growth for sales of equipment to end users in North America in 2025.

Dealer rental revenues are also expected to grow and dealer rental fleet loading is expected to increase in the second half of 2025.

In Asia Pacific, we anticipate growth in sales of equipment to end users in 2025.

China is showing positive momentum, and we expect growth in the above 10-ton excavator industry, but from a very low level of activity.

In Asia Pacific, outside of China, we expect economic conditions to be soft.

In EAME , we expect moderate growth in sales of equipment to end users in 2025, driven by healthy construction activity in Africa and the Middle East and improving economic conditions in Europe.

Despite weaker construction activity in Latin America , we expect growth in sales of equipment to end users in 2025.

In Resource Industries, we currently anticipate lower sales of equipment to end users for 2025 compared to 2024, as customers continue to display capital discipline.

However, we see positive momentum with strong order rates and backlog growth, particularly for large mining and articulated trucks.

Although most key commodities remain above investment thresholds, declining coal prices have caused an increase in the number of parked trucks.

As a result, we expect slightly lower rebuild activity throughout the second half of 2025.

Overall, customer product utilization remains high, and the age of the fleet remains elevated.

We also continue to see growing demand and customer acceptance of our autonomous solutions.

We believe the evolving energy landscape will support increased commodity demand over time providing further opportunities for long-term profitable growth.

In Energy & Transportation , the growth in backlog was driven by robust order activity in both Oil and Gas and Power Generation.

Demand remains strong in Power Generation for both reciprocating engines and turbines and turbine-related services in 2025.

The strength of our backlog gives us confidence in our long-term outlook.

For Oil and Gas reciprocating engines and services, we expect continuing softness in well servicing due to ongoing capital discipline by our customers, industry consolidation and efficiency improvements in our customers’ operations.

Also within Oil and Gas reciprocating engines and services, we see positive momentum in gas compression.

For turbines and turbine-related services used in Oil and Gas applications, backlog remains strong, and we continue to see healthy orders.

Demand for products in Industrial applications is expected to remain at a relatively low level.

In Energy & Transportation, the backlog growth was driven by robust order activity in Power Generation, Oil and Gas, and Transportation.

For Power Generation, we expect growth in 2025 as demand remains strong for both prime and backup power applications, driven by increasing energy demands to support data center growth related to cloud computing and generative artificial intelligence (AI).

In Oil and Gas, we expect moderate growth in 2025.

For Oil and Gas reciprocating engines and services, we continue to expect softness in well servicing due to ongoing capital discipline by our customers, industry consolidation and efficiency improvements in our customers’ operations.

Also within Oil and Gas, we do see positive momentum in demand for reciprocating engines used in gas compression applications.

For turbines and turbine-related services used in Oil and Gas applications, backlog remains strong, and we see healthy order and inquiry activity.

Demand for products in Industrial applications is expected to improve from previous low levels.

Transportation is expected to remain stable.

Full-Year 2025 Company Trends and Expectations

We are closely monitoring the evolving economic conditions.

Due to the tariff announcements and increasing economic uncertainty, we have evaluated a variety of scenarios to estimate the potential impact of tariffs on our results for the remainder of the year.

Demand signals were stronger than we expected in the first quarter of 2025, including backlog growth across our three primary segments and stronger than expected sales of equipment to end users in Construction Industries and Resource Industries.

These indicators boost our confidence in the resilience of our sales and revenues this year.

For the full-year 2025, in a pre-tariff scenario, which does not include any impact from tariffs, we expect sales and revenues to be about flat compared to 2024.

In our alternative scenario, which assumes negative economic growth in the second half of 2025, we expect full-year sales and revenues to only be down slightly in 2025 as compared to 2024.

This expectation is a reflection of the diversity of our end markets and the strength of our record backlog, especially for large reciprocating engines and for turbines and turbine-related services.

We expect the year over year impact of unfavorable price realization to be greater in the first and second quarters of 2025 and expect it to moderate in the second half of 2025.

In addition, we also do not expect a significant decrease in machine dealer inventory as we saw in the fourth quarter of 2024, and we still expect dealers to hold inventories about flat for the full year.

We have assessed potential cost impacts from the current tariffs which have been announced and implemented for the full-year 2025 before any additional mitigation actions;

however, given the uncertainty of what the tariff rates could be and the timing of any additional mitigation actions, it is not possible to derive an accurate estimate of the net full-year 2025 impact of tariffs.

In 2025, we continue to expect restructuring costs of approximately $150 million to $200 million and expect capital expenditures of about $2.5 billion.

We anticipate the annual effective tax rate, excluding discrete items, to be 23.0 percent in 2025.

Second-Quarter 2025 Company Trends and Expectations

In the second quarter of 2025, we expect sales and revenues to be similar to the second quarter of 2024.

Sales growth in Energy & Transportation is expected to be offset by lower sales in Construction Industries and Resource Industries, primarily driven by unfavorable price realization.

Machine sales volume is expected to be about flat.

In the second quarter of 2025 as compared to the second quarter of 2024, we anticipate lower sales in Construction Industries primarily due to unfavorable price realization, partially offset by slightly higher sales volume.

In Resource Industries, we expect lower sales primarily due to unfavorable price realization and slightly lower sales volume.

In Energy & Transportation, we anticipate higher sales in the second quarter of 2025 as compared to the second quarter of 2024, primarily driven by strength in Power Generation and Oil and Gas.

The strength in Oil and Gas is driven by turbines and turbine-related services.

We expect favorable price realization for Energy & Transportation in the second quarter of 2025.

In the second quarter of 2025 as compared to the second quarter of 2024, we expect unfavorable price realization, unfavorable manufacturing costs and higher selling, general and administrative (SG&A) and research and development (R&D) expenses.

We anticipate $250 million to $350 million of estimated cost in the second quarter of 2025 related to the tariffs which have been announced and implemented in 2025.

This estimate is net of initial mitigation efforts and cost controls which represent limited, short-term actions that we were able to implement quickly.

In Construction Industries, we expect unfavorable price realization in the second quarter of 2025 as compared to the second quarter of 2024.

We expect about 50 percent of the $250 million to $350 million of estimated cost related to tariffs to be incurred in Construction Industries.

In Resource Industries, we expect unfavorable price realization and higher SG&A/R&D expenses in the second quarter of 2025 as compared to the second quarter of 2024.

We expect about 25 percent of the $250

million to $350 million of estimated cost related to tariffs to be incurred in Resource Industries.

In Energy & Transportation, we expect the profit impact of higher sales volume and favorable price realization to be partially offset by unfavorable manufacturing costs and higher SG&A/R&D expenses.

We expect about 25 percent of the $250 million to $350 million of estimated cost related to tariffs to be incurred in Energy & Transportation.

We are optimistic about our sales and revenues expectations.

Demand signals have remained healthy, including backlog growth across our three primary segments.

For 2025, we expect slightly higher sales and revenues as compared to 2024, with a stronger second half of 2025 than is typical.

Services revenues are expected to be about flat for 2025 as compared to 2024.

The environment continues to be dynamic.

The incremental tariffs announced in 2025 and expected to be in place on August 7 will be a headwind to profitability during the remainder of the year.

While we have taken initial mitigating actions to reduce the impact, tariff and trade negotiations continue to be fluid.

We will remain flexible, and we intend to implement longer-term actions once there is sufficient certainty.

We are considering all options to further reduce the impact from incremental tariffs going forward.

Based on the incremental tariffs announced in 2025 and expected to be in place on August 7, we expect the incremental tariff impact for 2025 to be around $1.3 billion to $1.5 billion, net of some mitigating actions and cost controls.

This assumes higher net incremental tariff impacts in both the third and fourth quarters compared to the second-quarter level.

Due to the timing of recent rate changes, the impact is likely to be larger in the fourth quarter of 2025 as compared to the third quarter of 2025.

In 2025, we expect restructuring costs of approximately $300 to $350 million and capital expenditures of around $2.5 billion.

We are evaluating the impact from recently enacted U.S.

legislation and do not expect a material impact on the estimated annual effective tax rate of 23.0 percent in 2025.

Second-Half 2025 Company Trends and Expectations

We anticipate higher machine sales volume, including growth in sales of equipment to end users, in the second half of 2025 as compared to the second half of 2024.

We also continue to expect machine dealer inventory will be about flat for the full-year 2025 as compared to 2024, which implies an increase in the second half of 2025 as compared to a decrease in the second half of 2024.

In Energy & Transportation, we expect higher sales in the second half of 2025 compared to the second half of 2024.

We expect unfavorable price realization in the second half of 2025 as compared to the second half of 2024, although we expect it to be less unfavorable than the first half of 2025 as compared to the first half of 2024.

Third-Quarter 2025 Company Trends and Expectations

In the third quarter of 2025 as compared to the third quarter of 2024, we expect moderately higher sales and revenues, primarily driven by higher sales volume across all three primary segments.

In Construction Industries, we expect higher sales in the third quarter of 2025 as compared to the third quarter of 2024, primarily driven by higher sales volume, partially offset by unfavorable price realization.

We expect higher sales volume to be mainly driven by higher sales of equipment to end users.

Though the year-over-year price comparison begins to ease in the third quarter of 2025, we expect our sales merchandising programs will continue to support higher sales of equipment to end users.

The unfavorable impact of price realization in the third quarter of 2025 as compared to the third quarter of 2024 is expected to be about half of the impact in the second quarter of 2025 when compared to the second quarter of 2024.

In Resource Industries, in the third quarter of 2025, we expect slightly higher sales as compared to the third quarter of 2024, primarily due to higher sales volume, partially offset by unfavorable price realization.

The unfavorable impact of price realization in the third quarter of 2025 as compared to the third quarter of 2024 is expected to be similar to the impact in the second quarter of 2025 as compared to the second quarter of 2024.

In Energy & Transportation, in the third quarter of 2025, we anticipate higher sales as compared to the third quarter of 2024, primarily driven by continued strength in Power Generation.

We also expect higher sales in Oil and Gas, driven by turbines and turbine-related services.

Price realization is expected to remain favorable.

In the third quarter of 2025 as compared to the third quarter of 2024, excluding the net impact from incremental tariffs, we expect the profit impact of higher sales volume to be about offset by unfavorable price realization and higher selling, general and administrative (SG&A) and research and development (R&D) expenses.

In the third quarter of 2025, we expect a net incremental tariff impact of about $400 to $500 million.

In the third quarter of 2025 as compared to the third quarter of 2024, in Construction Industries, excluding the net impact from incremental tariffs, we expect the profit impact of higher sales volume will be about offset by unfavorable price realization.

We expect about 55 percent of the net incremental tariff impact will be incurred in Construction Industries.

In Resource Industries, excluding the net impact from incremental tariffs, we expect unfavorable price realization and higher SG&A/R&D expenses.

We expect about 20 percent of the net incremental tariff impact will be incurred in Resource Industries.

In Energy & Transportation, excluding the net impact from incremental tariffs, we expect profit impact of higher sales volume and favorable price realization, partially offset by higher manufacturing costs.

We expect about 25 percent of the net incremental tariff impact will be incurred in Energy & Transportation.

Global Business Conditions

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Consolidated Results of Operations

THREE MONTHS ENDED MARCH 31, 2025 COMPARED WITH THREE MONTHS ENDED MARCH 31, 2024

THREE MONTHS ENDED JUNE 30, 2025 COMPARED WITH THREE MONTHS ENDED JUNE 30, 2024

CONSOLIDATED SALES AND REVENUES

The chart above graphically illustrates reasons for the change in consolidated sales and revenues between the first quarter of 2024 (at left) and the first quarter of 2025 (at right).

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 first quarter of 2025 were $14.249 billion, a decrease of $1.550 billion, or 10 percent, compared with $15.799 billion in the first quarter of 2024.

The decrease was primarily due to lower sales volume of $1.1 billion and unfavorable price realization of $250 million.

Lower sales volume was mainly driven by the impact from changes in dealer inventories.

Dealer inventory increased by $100 million during the first quarter of 2025, compared with an increase of $1.4 billion during the first quarter of 2024.

Sales were lower across the three primary segments.

North America sales decreased 11 percent primarily due to lower sales volume.

The decrease in sales volume was primarily driven by the impact from changes in dealer inventories.

Dealer inventory increased less during the first quarter of 2025 than during the first quarter of 2024.

Sales decreased 3 percent in Latin America mainly due to unfavorable currency impacts primarily related to the Brazilian real, partially offset by higher sales volume.

The increase in sales volume was primarily driven by higher sales of equipment to end users.

EAME sales decreased 13 percent primarily due to lower sales volume and unfavorable price realization.

Total sales and revenues for the second quarter of 2025 were $16.569 billion, a decrease of $120 million, or 1 percent, 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.

North America sales decreased 3 percent primarily due to unfavorable price realization, partially offset by higher sales volume.

The increase in sales volume was mainly driven by higher sales of equipment to end users, partially offset 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 4 percent in Latin America mainly due to lower sales volume.

The decrease in sales volume was primarily driven by the impact from changes in dealer inventories.

Dealer inventory decreased during the first quarter of 2025, compared with an increase during the first quarter of 2024.

Asia/Pacific sales decreased 12 percent mainly due to lower sales volume and unfavorable currency impacts primarily related to the Australian dollar.

The decrease in sales volume was primarily driven by lower sales of equipment to end users.

Total dealer inventory increased $100 million during the first quarter of 2025, compared with an increase of $1.4 billion during the first quarter of 2024.

Machine dealer inventory was about flat during the first quarter of 2025, compared with an increase of $1.1 billion during the first quarter of 2024.

Dealer inventory increased less during the second quarter of 2025 than during the second quarter of 2024.

EAME sales increased 6 percent primarily due to higher sales volume.

Higher sales volume was primarily 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.

Asia/Pacific sales decreased 2 percent due to unfavorable price realization and unfavorable currency impacts primarily related to the Australian dollar, partially offset by higher sales volume.

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.

Total dealer inventory increased $100 million during the second quarter of 2025, compared with a decrease of $200 million during the second quarter of 2024.

In the second quarter of 2025 and 2024, machine dealer inventory decreased $400 million.

Dealers are independent, and the reasons for changes in their inventory levels vary, including their expectations of future demand and product delivery times.

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Sales and Revenues by Segment

(Millions of dollars) First Quarter 2024 Sales

Realization Currency Inter-Segment / Other First Quarter 2025 $

(Millions of dollars) Second Quarter 2024 Sales

Realization Currency Inter-Segment / Other Second Quarter 2025 $

Construction Industries $ 6,683 $ (83) $ (459) $ 9 $ 40 $ 6,190 $ (493) (7 %)

8 unchanged sentences

Financial Products Revenues 849 — — — 46 895 46 5 %

Consolidated Sales and Revenues $ 16,689 $ 237 $ (414) $ 11 $ 46 $ 16,569 $ (120) (1 %)

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

Second Quarter 2025

Construction Industries $ 3,369 (15 %) $ 540 (20 %) $ 1,185 13 % $ 1,029 6 % $ 6,123 (8 %) $ 67 148 % $ 6,190 (7 %)

Resource Industries 1,111 (8 %) 541 3 % 501 13 % 851 (10 %) 3,004 (4 %) 83 (1 %) 3,087 (4 %)

Energy & Transportation 3,776 14 % 493 12 % 1,386 (2 %) 905 (1 %) 6,560 8 % 1,276 2 % 7,836 7 %

All Other Segment 13 — % — — % 3 (25 %) 17 42 % 33 14 % 71 (10 %) 104 (4 %)

Corporate Items and Eliminations (33) (3) (3) (7) (46) (1,497) (1,543)

Machinery, Energy & Transportation Sales 8,236 (3 %) 1,571 (4 %) 3,072 6 % 2,795 (2 %) 15,674 (1 %) — — % 15,674 (1 %)

Financial Products Segment 703 5 % 105 4 % 126 2 % 108 (3 %) 1,042 1

4 % — — % 1,042 4 %

Corporate Items and Eliminations (88) (20) (18) (21) (147) — (147)

Financial Products Revenues 615 6 % 85 6 % 108 4 % 87 1 % 895 5 % — — % 895 5 %

Consolidated Sales and Revenues $ 8,851 (2 %) $ 1,656 (4 %) $ 3,180 6 % $ 2,882 (2 %) $ 16,569 (1 %) $ — — % $ 16,569 (1 %)

Second Quarter 2024

Construction Industries $ 3,957 $ 677 $ 1,047 $ 975 $ 6,656 $ 27 $ 6,683

Resource Industries 1,206 524 442 950 3,122 84 3,206

Energy & Transportation 3,308 439 1,421 912 6,080 1,257 7,337

All Other Segment 13 — 4 12 29 79 108

Corporate Items and Eliminations (20) (1) (21) (5) (47) (1,447) (1,494)

Machinery, Energy & Transportation Sales 8,464 1,639 2,893 2,844 15,840 — 15,840

Financial Products Segment 668 101 124 111 1,004 1

Corporate Items and Eliminations (89) (21) (20) (25) (155) — (155)

Financial Products Revenues 579 80 104 86 849 — 849

Consolidated Sales and Revenues $ 9,043 $ 1,719 $ 2,997 $ 2,930 $ 16,689 $ — $ 16,689

1 Includes revenues from Machinery, Energy & Transportation o f $172 m illion and $180 million in the second quarter of 2025 and 2024 , respectively.

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 other operating (income) expenses.

Operating profit for the second quarter of 2025 was $2.860 billion, a decrease of $622 million, or 18 percent, 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 impacts of higher tariffs.

Operating profit margin was 17.3 percent for the second quarter of 2025, compared with 20.9 percent for the second quarter of 2024.

Profit (Loss) by Segment

(Millions of dollars) Second Quarter 2025 Second Quarter 2024 $

Construction Industries $ 1,244 $ 1,741 $ (497) (29 %)

Resource Industries 537 718 (181) (25 %)

Energy & Transportation 1,585 1,525 60 4 %

All Other Segment (5) 21 (26) (124 %)

Corporate Items and Eliminations (566) (344) (222)

Machinery, Energy & Transportation 2,795 3,661 (866) (24 %)

Financial Products Segment 248 227 21 9 %

Corporate Items and Eliminations (36) (243) 207

Financial Products 212 (16) 228 1,425 %

Consolidating Adjustments (147) (163) 16

Consolidated Operating Profit $ 2,860 $ 3,482 $ (622) (18 %)

Other Pr ofit/Loss and Tax Items

• Interest expense excluding Financial Products in the second quarter of 2025 was $126 million, compared with $137 million in the second quarter of 2024.

The decrease was due to lower average debt outstanding and lower average borrowing rates.

• 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 percent compared to 23.9 percent for the second quarter of 2024.

Excluding discrete items, the second-quarter 2025 estimated annual effective tax rate was 23.0 percent compared with 22.5 percent 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 on pages 67-69.

Construction Industries

Construction Industries’ total sales were $6.190 billion in the second quarter of 2025, a decrease of $493 million, or 7 percent, 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.

Construction Industries’ segment profit was $1.244 billion in the second quarter of 2025, a decrease of $497 million, or 29 percent, 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.

Construction Industries’ segment profit as a percent of total sales was 20.1 percent in the second quarter of 2025, compared with 26.1 percent in the second quarter of 2024.

Resource Industries

Resource Industries’ total sales were $3.087 billion in the second quarter of 2025, a decrease of $119 million, or 4 percent, 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 percent, 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.

Resource Industries’ segment profit as a percent of total sales was 17.4 percent in the second quarter of 2025, compared with 22.4 percent in the second quarter of 2024.

Energy & Transportation

Sales by Application

(Millions of dollars) Second Quarter 2025 Second Quarter 2024 $

Oil and Gas $ 1,867 $ 1,829 $ 38 2 %

Power Generation 2,407 1,885 522 28 %

Industrial 1,060 1,045 15 1 %

Transportation 1,226 1,321 (95) (7 %)

External Sales 6,560 6,080 480 8 %

Inter-segment 1,276 1,257 19 2 %

Total Sales $ 7,836 $ 7,337 $ 499 7 %

Energy & Transportation’s total sales were $7.836 billion in the second quarter of 2025, an increase of $499 million, or 7 percent, 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 percent, 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.

Energy & Transportation’s segment profit as a percent of total sales was 20.2 percent in the second quarter of 2025, compared with 20.8 percent in the second quarter of 2024.

Financial Products Segment

Financial Products’ segment revenues were $1.042 billion in the second quarter of 2025, an increase of $38 million, or 4 percent, 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 percent, 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 percent, compared with 1.74 percent 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 percent of finance receivables, compared with $282 million, or 0.95 percent of finance receivables at March 31, 2025.

The allowance for credit losses at year-end 2024 was $267 million, or 0.91 percent 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.

SIX MONTHS ENDED JUNE 30, 2025 COMPARED WITH SIX MONTHS ENDED JUNE 30, 2024

CONSOLIDATED SALES AND REVENUES

The chart above graphically illustrates reasons for the change in consolidated sales and revenues between the six months ended June 30, 2024 (at left) and the six months ended June 30, 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 were $30.818 billion for the six months ended June 30, 2025, a decrease of $1.670 billion, or 5 percent, compared with $32.488 billion for the six months ended June 30, 2024.

The decrease was primarily due to lower sales volume of $873 million and unfavorable price realization of $664 million.

The decrease in sales volume was mainly driven by the impact from changes in dealer inventories.

Dealer inventory increased less during the six months ended June 30, 2025, than during the six months ended June 30, 2024.

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

North America sales decreased 7 percent primarily due to lower sales volume and unfavorable price realization.

The decrease in sales volume was mainly driven by the impact from changes in dealer inventories.

Dealer inventory was about flat during the six months ended June 30, 2025, compared with an increase during the six months ended June 30, 2024.

Sales decreased 3 percent in Latin America mainly due to unfavorable currency impacts primarily related to the Brazilian real.

EAME sales decreased 3 percent primarily due to unfavorable price realization.

Asia/Pacific sales decreased 7 percent due to lower sales volume, unfavorable price realization and unfavorable currency impacts primarily related to the Australian dollar.

The decrease in sales volume was mainly due to lower sales of equipment to end users.

Dealer inventory increased about $200 million during the six months ended June 30, 2025, compared with an increase of about $1.2 billion during the six months ended June 30, 2024.

Machine dealer inventory decreased $300 million during the six months ended June 30, 2025, compared with an increase of $700 million during the six months ended June 30, 2024.

Dealers are independent, and the reasons for changes in their inventory levels vary, including their expectations of future demand and product delivery times.

Dealers’ demand expectations take into account seasonal changes, macroeconomic conditions, machine rentals and other factors.

Delivery times can vary based on availability of product from Caterpillar factories and product distribution centers.

Sales and Revenues by Segment

(Millions of dollars) Six Months Ended June 30, 2024 Sales

Realization Currency Inter-Segment / Other Six Months Ended June 30, 2025 $

Construction Industries $ 13,107 $ (903) $ (814) $ (89) $ 73 $ 11,374 $ (1,733) (13 %)

Resource Industries 6,399 (192) (144) (57) (35) 5,971 (428) (7 %)

Energy & Transportation 14,018 151 294 (54) (5) 14,404 386 3 %

All Other Segment 217 3 (1) (1) (23) 195 (22) (10 %)

Corporate Items and Eliminations (2,941) 68 1 (10) (10) (2,892) 49

Machinery, Energy & Transportation Sales 30,800 (873) (664) (211) — 29,052 (1,748) (6 %)

Financial Products Segment 1,995 — — — 54 2,049 54 3 %

Corporate Items and Eliminations (307) — — — 24 (283) 24

Financial Products Revenues 1,688 — — — 78 1,766 78 5 %

Consolidated Sales and Revenues $ 32,488 $ (873) $ (664) $ (211) $ 78 $ 30,818 $ (1,670) (5 %)

Sales and Revenues by Geographic Region

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(Millions of dollars) $ % Chg $ % Chg $ % Chg $ % Chg $ % Chg $ % Chg $ % Chg

First Quarter 2025

Six Months Ended June 30, 2025

Construction Industries $ 6,273 (19 %) $ 1,044 (18 %) $ 2,052 — % $ 1,898 (4 %) $ 11,267 (14 %) $ 107 215 % $ 11,374 (13 %)

9 unchanged sentences

Consolidated Sales and Revenues $ 16,589 (6 %) $ 3,171 (3 %) $ 5,686 (3 %) $ 5,372 (6 %) $ 30,818 (5 %) $ — — % $ 30,818 (5 %)

First Quarter 2024

Six Months Ended June 30, 2024

Construction Industries $ 7,790 $ 1,272 $ 2,043 $ 1,968 $ 13,073 $ 34 $ 13,107

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Consolidated Sales and Revenues $ 17,616 $ 3,278 $ 5,849 $ 5,745 $ 32,488 $ — $ 32,488

1 Includes revenues from Machinery, Energy & Transportation o f $163 m illion and $177 million in the first quarter of 2025 and 2024, respectively.

1 Includes revenues from Machinery, Energy & Transportation of $335 million and $357 million in the six months ended June 30, 2025 and 2024, respectively.

CONSOLIDATED OPERATING PROFIT

The chart above graphically illustrates reasons for the change in consolidated operating profit between the first quarter of 2024 (at left) and the first quarter of 2025 (at right).

The chart above graphically illustrates reasons for the change in consolidated operating profit between the six months ended June 30, 2024 (at left) and the six months ended June 30, 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 first quarter of 2025 was $2.579 billion, a decrease of $940 million, or 27 percent, compared with $3.519 billion in the first quarter of 2024.

The decrease was mainly due to the profit impact of lower sales volume of $652 million and unfavorable price realization of $250 million.

Operating profit margin was 18.1 percent for the first quarter of 2025, compared with 22.3 percent for the first quarter of 2024.

Operating profit for the six months ended June 30, 2025, was $5.439 billion, a decrease of $1.562 billion, or 22 percent, compared with $7.001 billion for the six months ended June 30, 2024.

The decrease was primarily due to unfavorable price realization of $664 million, the profit impact of lower sales volume of $554 million and unfavorable manufacturing costs of $432 million.

Unfavorable manufacturing costs largely reflected the impact of higher tariffs.

Operating profit margin was 17.6 percent for the six months ended June 30, 2025, compared with 21.5 percent for the six months ended June 30, 2024.

Profit (Loss) by Segment

(Millions of dollars) First Quarter 2025 First Quarter 2024 $

(Millions of dollars) Six Months Ended June 30, 2025 Six Months Ended June 30, 2024 $

Construction Industries $ 2,268 $ 3,505 $ (1,237) (35 %)

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Other Profit/Loss and Tax Items

▪ Interest expense excluding Financial Products in the first quarter of 2025 was $116 million, compared with $143 million in the first quarter of 2024.

• Interest expense excluding Financial Products for the six months ended June 30, 2025, was $242 million, compared with $280 million for the six months ended June 30, 2024.

The decrease was due to lower average debt outstanding and lower average borrowing rates.

▪ Other income (expense) in the first quarter of 2025 was income of $107 million, compared with income of $156 million in the first quarter of 2024.

• Other income (expense) for the six months ended June 30, 2025, was income of $191 million, compared with income of $311 million for the six months ended June 30, 2024.

The change was primarily driven by unfavorable foreign currency impacts.

▪ The effective tax rate for the first quarter of 2025 was 22.3 percent compared to 19.5 percent for the first quarter of 2024.

Excluding the discrete items discussed below, the first-quarter 2025 estimated annual effective tax rate was 23.0 percent compared with 22.5 percent for the first quarter of 2024.

A discrete tax benefit of $17 million was recorded in the first quarter of 2025, compared with a $38 million benefit in the first quarter of 2024, for the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S.

GAAP compensation expense.

In addition, the estimated annual effective tax rate in the first quarter of 2024 excluded the impact of nontaxable gains of $64 million for the divestiture of a non-U.S.

mining entity along with a related tax benefit of $54 million.

• The effective tax rate for the six months ended June 30, 2025 was 22.6 percent compared to 21.7 percent for the six months ended June 30, 2024.

Excluding the discrete items discussed below, the estimated annual effective tax rate for the six months ended June 30, 2025 was 23.0 percent compared with 22.5 percent for the six months ended June 30, 2024.

A discrete tax benefit of $18 million was recorded in the six months ended June 30, 2025, for the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S.

GAAP compensation expense, compared with $42 million for the six months ended June 30, 2024.

In addition, the 2024 estimated annual effective tax rate excluded the impact of year-to-date losses of $164 million for the divestitures of certain non-U.S.

entities with a related tax benefit of $54 million.

Please see a reconciliation of GAAP to non-GAAP financial measures on pages 67-69.

Construction Industries

Construction Industries’ total sales were $5.184 billion in the first quarter of 2025, a decrease of $1.240 billion, or 19 percent, compared with $6.424 billion in the first quarter of 2024.

Construction Industries’ total sales were $11.374 billion for the six months ended June 30, 2025, a decrease of $1.733 billion, or 13 percent, compared with $13.107 billion for the six months ended June 30, 2024.

The decrease was primarily due to lower sales volume of $903 million and unfavorable price realization of $814 million.

The decrease in sales volume was mainly driven by the impact from changes in dealer inventories.

Dealer inventory decreased slightly during the first quarter of 2025, compared with an increase during the first quarter of 2024.

• In North America, sales decreased due to lower sales volume and unfavorable price realization.

Lower sales volume was mainly driven by the impact from changes in dealer inventories.

Dealer inventory decreased during the first quarter of 2025, compared with an increase during the first quarter of 2024.

• Sales decreased in Latin America due to unfavorable currency impacts primarily related to the Brazilian real, unfavorable price realization and lower sales volume.

Dealer inventory decreased during the six months ended June 30, 2025, compared with an increase during the six months ended June 30, 2024.

• In North America, sales decreased due to lower sales volume and unfavorable price realization.

Lower sales volume was mainly driven by the impact from changes in dealer inventories.

Dealer inventory decreased during the first quarter of 2025, compared with an increase during the first quarter of 2024.

• In EAME, sales decreased primarily due to unfavorable price realization and lower sales volume.

Dealer inventory decreased during the six months ended June 30, 2025, compared with an increase during the six months ended June 30, 2024.

• Sales decreased in Latin America mainly due to lower sales volume and unfavorable currency impacts primary related to the Brazilian real.

Lower sales volume was mainly driven by the impact from changes in dealer inventories.

Dealer inventory increased less during the first quarter of 2025 than during the first quarter of 2024.

• Sales decreased in Asia/Pacific due to lower sales volume, unfavorable price realization and unfavorable currency impacts primarily related to the Japanese yen.

Lower sales volume was mainly driven by lower sales of equipment to end users.

Construction Industries’ segment profit was $1.024 billion in the first quarter of 2025, a decrease of $740 million, or 42 percent, compared with $1.764 billion in the first quarter of 2024.

The decrease was mainly due to the profit impact of lower sales volume of $371 million and unfavorable price realization of $355 million.

Construction Industries’ segment profit as a percentage of total sales was 19.8 percent in the first quarter of 2025, compared with 27.5 percent in the first quarter of 2024.

Dealer inventory decreased during the six months ended June 30, 2025, compared with an increase during the six months ended June 30, 2024.

• In EAME, sales were about flat.

Higher sales volume was offset by unfavorable price realization.

Higher sales volume was primarily due to higher sales of equipment to end users.

• Sales decreased in Asia/Pacific due to unfavorable price realization and unfavorable currency impacts primarily related to the Australian dollar, partially offset by higher sales volume.

Higher sales volume was mainly driven by the impact from changes in dealer inventories.

Dealer inventory increased during the six months ended June 30, 2025, compared with a decrease during the six months ended June 30, 2024.

Construction Industries’ profit was $2.268 billion for the six months ended June 30, 2025, a decrease of $1.237 billion, or 35 percent, compared with $3.505 billion for the six months ended June 30, 2024.

The decrease was mainly due to unfavorable price realization of $814 million and the profit impact of lower sales volume of $320 million.

Construction Industries’ profit as a percent of total sales was 19.9 percent for the six months ended June 30, 2025, compared with 26.7 percent for the six months ended June 30, 2024.

Resource Industries

Resource Industries’ total sales were $2.884 billion in the first quarter of 2025, a decrease of $309 million, or 10 percent, compared with $3.193 billion in the first quarter of 2024.

The decrease was primarily due to lower sales volume of $179 million, unfavorable price realization of $50 million and unfavorable currency impacts of $46 million, primarily related to the Australian dollar.

The decrease in sales volume was mainly driven by lower sales of equipment to end users.

Resource Industries’ segment profit was $599 million in the first quarter of 2025, a decrease of $131 million, or 18 percent, compared with $730 million in the first quarter of 2024.

The decrease was mainly due to the profit impact of lower sales volume.

Resource Industries’ segment profit as a percentage of total sales was 20.8 percent in the first quarter of 2025, compared with 22.9 percent in the first quarter of 2024.

Resource Industries’ total sales were $5.971 billion for the six months ended June 30, 2025, a decrease of $428 million, or 7 percent, compared with $6.399 billion for the six months ended June 30, 2024.

The decrease was primarily due to lower sales volume of $192 million and unfavorable price realization of $144 million.

The decrease in sales volume was mainly due to lower sales of equipment to end users.

Resource Industries’ profit was $1.136 billion for the six months ended June 30, 2025, a decrease of $312 million, or 22 percent, compared with $1.448 billion for the six months ended June 30, 2024.

The decrease was mainly due to unfavorable price realization of $144 million and the profit impact of lower sales volume of $142 million.

Resource Industries’ profit as a percent of total sales was 19.0 percent for the six months ended June 30, 2025, compared with 22.6 percent for the six months ended June 30, 2024.

Energy & Transportation

Sales by Application

(Millions of dollars) First Quarter 2025 First Quarter 2024 $

(Millions of dollars) Six Months Ended June 30, 2025 Six Months Ended June 30, 2024 $

Oil and Gas $ 3,125 $ 3,397 $ (272) (8 %)

5 unchanged sentences

Total Sales $ 14,404 $ 14,018 $ 386 3 %

Energy & Transportation’s total sales were $6.568 billion in the first quarter of 2025, a decrease of $113 million, or 2 percent, compared with $6.681 billion in the first quarter of 2024.

The decrease was primarily due to lower sales volume of $175 million, unfavorable currency impacts of $69 million primarily related to the euro, and lower inter-segment sales of $24 million, partially offset by favorable price realization of $155 million.

• Oil and Gas – Sales decreased in reciprocating engines used in gas compression and well servicing applications.

Sales also decreased for turbines and turbine-related services.

Energy & Transportation’s total sales were $14.404 billion for the six months ended June 30, 2025, an increase of $386 million, or 3 percent, compared with $14.018 billion for the six months ended June 30, 2024.

The increase was primarily due to favorable price realization of $294 million and higher sales volume of $151 million.

• Oil and Gas – Sales decreased in reciprocating engines, primarily engines used in gas compression applications.

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

• Industrial – Sales decreased primarily in North America and Asia/Pacific, partially offset by increased sales in EAME.

• Industrial – Sales were about flat.

• Transportation – Sales decreased in marine.

International locomotive deliveries were also lower.

Energy & Transportation’s segment profit was $1.314 billion in the first quarter of 2025, an increase of $13 million, or 1 percent, compared with $1.301 billion in the first quarter of 2024.

The increase was primarily due to favorable price realization of $155 million, mostly offset by the profit impact of lower sales volume of $114 million and unfavorable manufacturing costs of $40 million.

Energy & Transportation’s profit was $2.899 billion for the six months ended June 30, 2025, an increase of $73 million, or 3 percent, compared with $2.826 billion for the six months ended June 30, 2024.

The increase was mainly due to favorable price realization of $294 million, partially offset by unfavorable manufacturing costs of $194 million.

Unfavorable manufacturing costs largely reflected increased period manufacturing costs.

Energy & Transportation’s segment profit as a percentage of total sales was 20.0 percent in the first quarter of 2025, compared with 19.5 percent in the first quarter of 2024.

Energy & Transportation’s profit as a percent of total sales was 20.1 percent for the six months ended June 30, 2025, compared with 20.2 percent for the six months ended June 30, 2024.

Financial Products Segment

Financial Products’ segment revenues were $1.007 billion in the first quarter of 2025, an increase of $16 million, or 2 percent, compared with $991 million in the first quarter of 2024.

The increase was primarily due to a favorable impact from higher average earning assets of $28 million driven by North America, partially offset by an unfavorable impact from lower average financing rates of $15 million primarily in North America.

Financial Products’ segment profit was $215 million in the first quarter of 2025, a decrease of $78 million, or 27 percent, compared with $293 million in the first quarter of 2024.

The decrease was mainly due to the absence of an insurance settlement of $33 million in the first quarter of 2024, higher provision for credit losses at Cat Financial of $22 million, an unfavorable impact from lower net yield on average earning assets of $14 million and an unfavorable impact from equity securities of $14 million.

At the end of the first quarter of 2025, past dues at Cat Financial were 1.58 percent, compared with 1.78 percent at the end of the first quarter of 2024.

Write-offs, net of recoveries, were $20 million for the first quarter of 2025, compared with $55 million for the first quarter of 2024.

As of March 31, 2025, Cat Financial's allowance for credit losses totaled $282 million, or 0.95 percent of finance receivables, compared with $267 million, or 0.91 percent of finance receivables at December 31, 2024.

Financial Products’ segment revenues were $2.049 billion for the six months ended June 30, 2025, an increase of $54 million, or 3 percent, compared with $1.995 billion for the six months ended June 30, 2024.

The increase was primarily due to a favorable impact from higher average earning assets driven by North America of $77 million and higher revenues from Insurance Services of $14 million, partially offset by an unfavorable impact from lower average financing rates of $35 million mainly in North America.

Financial Products’ segment profit was $463 million for the six months ended June 30, 2025, a decrease of $57 million, or 11 percent, compared with $520 million for the six months ended June 30, 2024.

The decrease was mainly due to higher provision for credit losses at Cat Financial of $35 million, the absence of an insurance settlement of $33 million in the first quarter of 2024 and an unfavorable impact from lower net yield on average earning assets of $24 million, partially offset by a favorable impact from higher average earning assets of $32 million.

Corporate Items and Eliminations

Expense for corporate items and eliminations was $415 million in the first quarter of 2025, a decrease of $25 million from the first quarter of 2024, driven by a favorable change in fair value adjustments related to deferred compensation plans and decreased expenses due to timing differences, partially offset by unfavorable impacts of segment reporting methodology differences, unfavorable restructuring income/costs and higher corporate costs.

Expense for corporate items and eliminations was $1.017 billion for the six months ended June 30, 2025, a decrease of $10 million from the six months ended June 30, 2024, mainly driven by favorable restructuring income/costs and lower corporate costs, partially offset by increased expenses due to timing differences and unfavorable impacts of segment reporting methodology differences.

RESTRUCTURING COSTS

112 unchanged sentences

Financial Products’ operations are funded primarily from commercial paper, term debt issuances and collections from its existing portfolio.

On a consolidated basis, we had positive operating cash flow in the first three months of 2025 and ended the first quarter with $3.562 billion of cash, a decrease of $3.327 billion from year-end 2024.

On a consolidated basis, we had positive operating cash flow in the first six months of 2025 and ended the second quarter with $5.442 billion of cash, a decrease of $1.447 billion from year-end 2024.

In addition, ME&T invests in available-for-sale debt securities and bank time deposits that are considered highly liquid and are available for current operations.

These ME&T securities were $1.215 billion as of March 31, 2025 and are included in Prepaid expenses and other current assets and Other assets in the Consolidated Statement of Financial Position.

These ME&T securities were $1.221 billion as of June 30, 2025 and are included in Prepaid expenses and other current assets and Other assets in the Consolidated Statement of Financial Position.

We intend to maintain a strong cash and liquidity position.

Consolidated operating cash flow for the first three months of 2025 was $1.289 billion, down $763 million compared to the same period a year ago.

The decrease was primarily due to lower profit before taxes adjusted for non-cash items.

Total debt as of March 31, 2025 was $38.588 billion, an increase of $179 million from year-end 2024.

Debt related to ME&T increased $63 million in the first three months of 2025, while debt related to Financial Products increased $142 million.

As of March 31, 2025, we had three global credit facilities with a syndicate of banks totaling $10.500 billion (Credit Facility) available in the aggregate to both Caterpillar and Cat Financial for general liquidity purposes.

Based on management’s allocation decision, which can be revised from time to time, the portion of the Credit Facility available to ME&T as of March 31, 2025 was $2.750 billion.

Consolidated operating cash flow for the first six months of 2025 was $4.411 billion, down $662 million compared to the same period a year ago.

The decrease was primarily due to lower profit before taxes adjusted for non-cash items partially offset by changes in working capital.

Within working capital, changes in accounts payable and customer advances favorably impacted cash flow, partially offset by changes in inventories.

Total debt as of June 30, 2025 was $40.748 billion, an increase of $2.339 billion from year-end 2024.

Debt related to ME&T increased $2.103 billion in the first six months of 2025 primarily due to the issuance of new debt in the second quarter of 2025.

ME&T issued $1.700 billion of ten-year bonds at 5.2 percent and $300 million of thirty-year bonds at 5.5 percent.

The proceeds from the offering will be used for general corporate purposes, which may include the repayment of existing indebtedness.

Debt related to Financial Products increased $1.265 billion, of which $1.000 billion is related to intercompany borrowings with ME&T.

As of June 30, 2025, we had three global credit facilities with a syndicate of banks totaling $10.500 billion (Credit Facility) available in the aggregate to both Caterpillar and Cat Financial for general liquidity purposes.

Based on management’s allocation decision, which can be revised from time to time, the portion of the Credit Facility available to ME&T as of June 30, 2025 was $2.750 billion.

Information on our Credit Facility is as follows:

2 unchanged sentences

• The five-year facility, as amended in August 2024, of $4.620 billion (of which $1.210 billion is available to ME&T) expires in August 2029.

At March 31, 2025, Caterpillar’s consolidated net worth was $18.132 billion, which was above the $9.000 billion required under the Credit Facility.

At June 30, 2025, Caterpillar’s consolidated net worth was $18.726 billion, which was above the $9.000 billion required under the Credit Facility.

The consolidated net worth is defined in the Credit Facility as Caterpillar's consolidated shareholders’ equity including preferred stock but excluding the pension and other postretirement benefits balance within Accumulated other comprehensive income (loss).

At March 31, 2025, Cat Financial’s covenant interest coverage ratio was 1.36 to 1.

At June 30, 2025, Cat Financial’s covenant interest coverage ratio was 1.51 to 1.

This was above the 1.15 to 1 minimum ratio calculated as (1) profit excluding income taxes, interest expense and net gain (loss) from interest rate derivatives to (2) interest expense calculated at the end of each fiscal quarter for the prior four consecutive fiscal quarter period, required by the Credit Facility.

In addition, at March 31, 2025, Cat Financial’s six-month covenant leverage ratio was 7.42 to 1.

In addition, at June 30, 2025, Cat Financial’s six-month covenant leverage ratio was 7.18 to 1.

This was below the maximum ratio of debt to net worth of 10 to 1, calculated (1) on a monthly basis as the average of the leverage ratios determined on the last day of each of the six preceding calendar months and (2) at each December 31, required by the Credit Facility.

1 unchanged sentence

Additionally, in such event, certain of Cat Financial’s other lenders under other loan agreements where similar financial covenants or cross default provisions are applicable may, at their election, choose to pursue remedies under those loan agreements, including accelerating the repayment of outstanding borrowings.

At March 31, 2025, there were no borrowings under the Credit Facility.

At June 30, 2025, there were no borrowings under the Credit Facility.

The aforementioned financial covenants are being reported as calculated under the Credit Facility and not pursuant to U.S.

1 unchanged sentence

For risks related to our indebtedness and compliance with these covenants, please refer to the risk factor "Restrictive covenants in our debt agreements could limit our financial and operating flexibility" set forth in Part I, Item 1A of our most recent annual report on Form 10-K.

Our total credit commitments and available credit as of March 31, 2025 were:

March 31, 2025

Our total credit commitments and available credit as of June 30, 2025 were:

June 30, 2025

(Millions of dollars) Consolidated Machinery,

7 unchanged sentences

Available credit $ 9,799 $ 3,367 $ 6,432

The other external consolidated credit lines with banks as of March 31, 2025 totaled $3.944 billion.

The other external consolidated credit lines with banks as of June 30, 2025 totaled $4.084 billion.

These committed and uncommitted credit lines, which may be eligible for renewal at various future dates or have no specified expiration date, are used primarily by our subsidiaries for local funding requirements.

4 unchanged sentences

In the event economic conditions deteriorate such that access to debt markets becomes unavailable, ME&T’s operations would rely on cash flow from operations, use of existing cash balances, borrowings from Cat Financial and access to our committed credit facilities.

Our Financial Products’ operations would rely on cash flow from its existing portfolio, existing cash balances, access to our committed credit facilities and other credit line facilities of Cat Financial, and potential borrowings from Caterpillar.

In addition, we maintain a support agreement with Cat Financial, which requires Caterpillar to remain the sole owner of Cat Financial and may, under certain circumstances, require Caterpillar to make payments to Cat Financial should Cat Financial fail to maintain certain financial ratios.

4 unchanged sentences

Machinery, Energy & Transportation

Net cash provided by operating activities was $926 million in the first three months of 2025, compared with net cash provided of $1.771 billion for the same period in 2024.

The decrease was primarily due to lower profit before taxes, adjusted for non-cash items, and higher working capital requirements.

Within working capital, changes in inventories unfavorably impacted cash flow, but were partially offset by changes in customer advances.

Net cash provided by investing activities in the first three months of 2025 was $30 million, compared with net cash provided of $1.225 billion in the first three months of 2024.

Net cash provided by operating activities was $3.862 billion in the first six months of 2025, compared with net cash provided of $4.573 billion for the same period in 2024.

The decrease was primarily due to lower profit before taxes, adjusted for non-cash items, partially offset by lower working capital requirements.

Within working capital, changes in customer advances and accounts payable favorably impacted cash flow but were partially offset by changes in inventories.

Net cash used by investing activities in the first six months of 2025 was $1.530 billion, compared with net cash provided of $1.381 billion in the first six months of 2024.

The change was primarily due to lower proceeds from maturities and sale of securities, primarily due to time deposit maturities in 2024;

Net cash used for financing activities during the first three months of 2025 was $4.432 billion, compared with net cash used of $5.120 billion in the same period of 2024.

The change was primarily due to lower payments to purchase common stock in the first three months of 2025 compared to the same period in 2024.

increased activity related to intercompany lending with Financial Products;

and an increase in capital expenditures.

Net cash used for financing activities during the first six months of 2025 was $4.050 billion, compared with net cash used of $8.573 billion in the same period of 2024.

The change was primarily due to higher proceeds from debt issued, lower payments to purchase common stock and lower payments on debt in the first six months of 2025 compared to the same period in 2024.

While our short-term priorities for the use of cash may vary from time to time as business needs and conditions dictate, our long-term cash deployment strategy is focused on the following priorities.

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We track a diverse group of financial metrics that focus on liquidity, leverage, cash flow and margins which align with our cash deployment actions and the various methodologies used by the major credit rating agencies.

Operational excellence and commitments – Capital expenditures were $704 million during the first three months of 2025, compared to $502 million for the same period in 2024.

Operational excellence and commitments – Capital expenditures were $1.287 billion during the first six months of 2025, compared to $841 million for the same period in 2024.

We expect ME&T’s capital expenditures in 2025 to be about $2.5 billion.

We made $211 million of contributions to our pension and other postretirement benefit plans during the first three months of 2025.

We made $276 million of contributions to our pension and other postretirement benefit plans during the first six months of 2025.

We currently anticipate full-year 2025 contributions of approximately $354 million.

In comparison, we made $113 million of contributions to our pension and other postretirement benefit plans during the first three months of 2024.

In comparison, we made $172 million of contributions to our pension and other postretirement benefit plans during the first six months of 2024.

Fund strategic growth initiatives and return capital to shareholders – We intend to utilize our liquidity and debt capacity to fund targeted investments that drive long-term profitable growth focused in the areas of expanded offerings, services and sustainability, including acquisitions.

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The Board evaluates the financial condition of the company and considers corporate cash flow, the company’s liquidity needs, the economic outlook, and the health and stability of global credit markets to determine whether to maintain or change the quarterly dividend.

In April 2025, the Board of Directors approved maintaining our quarterly dividend representing $1.41 per share, and we continue to expect our strong financial position to support the dividend.

Dividends paid totaled $674 million in the first three months of 2025.

In June 2025, the Board of Directors approved a seven percent increase in the quarterly dividend to $1.51 per share, and we continue to expect our strong financial position to support the dividend.

Dividends paid totaled $1.336 billion in the first six months of 2025.

Our share repurchase plans are subject to the company’s cash deployment priorities and are evaluated on an ongoing basis considering the financial condition of the company, corporate cash flow, the company’s liquidity needs, the economic outlook, and the health and stability of global credit markets.

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In June 2024, the Board approved an additional share repurchase authorization (the 2024 Authorization) of up to $20.0 billion of Caterpillar common stock, effective June 12, 2024, with no expiration.

In the first three months of 2025, we repurchased $3.660 billion of Caterpillar common stock.

As of March 31, 2025, the 2022 Authorization was fully utilized and $16.468 billion remained available under the 2024 Authorization.

Our basic shares outstanding as of March 31, 2025 were approximately 471 million.

In the first six months of 2025, we repurchased $4.488 billion of Caterpillar common stock.

As of June 30, 2025, the 2022 Authorization was fully utilized and $15.640 billion remained available under the 2024 Authorization.

Our basic shares outstanding as of June 30, 2025 were approximately 468 million.

Financial Products

Net cash provided by operating activities was $297 million in the first three months of 2025, compared with $308 million for the same period in 2024.

Net cash used for investing activities was $132 million in the first three months of 2025, compared with $291 million for the same period in 2024.

The change was primarily due to portfolio related activity and an increase in proceeds from maturities and sale of securities.

Net cash used for financing activities was $71 million in the first three months of 2025, compared with net cash provided of $117 million for the same period in 2024.

The change was due to external borrowing activity.

Net cash provided by operating activities was $597 million in the first six months of 2025, compared with $715 million for the same period in 2024.

Net cash used for investing activities was $990 million in the first six months of 2025, compared with $1.351 billion for the same period in 2024.

The change was primarily due to portfolio related activity and the 2024 divestiture of a non-U.S.

Net cash provided by financing activities was $670 million in the first six months of 2025, compared with $635 million for the same period in 2024.

The change was primarily due to increased intercompany borrowings from ME&T, partially offset by decreased external borrowings.

RECENT ACCOUNTING PRONOUNCEMENTS

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Order Backlog

At the end of the first quarter of 2025, the dollar amount of backlog believed to be firm was approximately $35.0 billion, about $5.0 billion higher than the fourth quarter of 2024.

At the end of the second quarter of 2025, the dollar amount of backlog believed to be firm was approximately $37.5 billion, about $2.5 billion higher than the first quarter of 2025.

The order backlog increased across the primary segments, with the largest increase in Energy & Transportation.

Of the total backlog at March 31, 2025, approximately $9.2 billion was not expected to be filled in the following twelve months.

Of the total backlog at June 30, 2025, approximately $10.3 billion was not expected to be filled in the following twelve months.

NON-GAAP FINANCIAL MEASURES

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Management does not intend these items to be considered in isolation or as a substitute for the related GAAP measures.

We believe 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 income related to the divestiture of a non-U.S.

mining entity in 2024.

We believe it is important to separately quantify the profit impact of two significant items in order for the company’s results to be meaningful to our readers.

These items consist of (i) other restructuring income/costs and (ii) restructuring income/costs related to the divestitures of certain non-U.S.

entities in 2024.

We do not consider these items indicative of earnings from ongoing business activities and believe 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.

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(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 March 31, 2025 - U.S.

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

$ 2,860 17.3 % $ 2,818 $ 646 $ 2,179 $ 4.62

Other restructuring (income) costs 56 0.3 % 56 12 47 0.10

Three Months Ended March 31, 2025 - Adjusted

Three Months Ended June 30, 2025 - Adjusted

$ 2,916 17.6 % $ 2,874 $ 658 $ 2,226 $ 4.72

Three Months Ended March 31, 2024 - U.S.

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

$ 3,482 20.9 % $ 3,500 $ 836 $ 2,681 $ 5.48

Restructuring (income) - non-U.S.

mining entity divestiture (64) (0.5) % (64) 54 (118) (0.24)

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

entities 228 1.3 % 228 — 228 0.47

Other restructuring (income) costs 30 0.2 % 30 6 24 0.04

Three Months Ended March 31, 2024 - Adjusted

Three Months Ended June 30, 2024 - Adjusted

$ 3,740 22.4 % $ 3,758 $ 842 $ 2,933 $ 5.99

Six Months Ended June 30, 2025 - U.S.

$ 5,439 17.6 % $ 5,388 $ 1,220 $ 4,182 $ 8.82

Other restructuring (income) costs 88 0.3 % 89 20 72 0.15

Six Months Ended June 30, 2025 - Adjusted

$ 5,527 17.9 % $ 5,477 $ 1,240 $ 4,254 $ 8.97

Six Months Ended June 30, 2024 - U.S.

$ 7,001 21.5 % $ 7,032 $ 1,524 $ 5,537 $ 11.23

Restructuring (income) costs - divestitures of certain non-U.S.

entities 164 0.5 % 164 54 110 0.22

Other restructuring (income) costs 88 0.3 % 88 20 68 0.14

Six Months Ended June 30, 2024 - Adjusted

$ 7,253 22.3 % $ 7,284 $ 1,598 $ 5,715 $ 11.59

We believe it is important to separately disclose our annual effective tax rate, excluding discrete items for our results to be meaningful to our 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 March 31, 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 income related to the divestiture of a non-U.S.

mining entity in 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 income/costs related to the divestitures of certain non-U.S.

entities in 2024.

We believe 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.

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(Millions of dollars) Profit Before Taxes Provision (Benefit) for Income Taxes Effective Tax Rate

Three Months Ended March 31, 2025 - U.S.

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

$ 2,818 $ 646 23.0 %

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Other restructuring (income) costs 56 12

Three Months Ended March 31, 2025 - Adjusted

Three Months Ended June 30, 2025 - Adjusted

$ 2,874 $ 658

Three Months Ended March 31, 2024 - U.S.

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

$ 3,500 $ 836 23.9 %

Restructuring (income) - non-US mining entity divestiture (64) 54

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

entities 228 —

Excess stock-based compensation — 4

2 unchanged sentences

Other restructuring (income) costs 30 6

Three Months Ended March 31, 2024 - Adjusted

Three Months Ended June 30, 2024 - Adjusted

$ 3,758 $ 842

Six Months Ended June 30, 2025 - U.S.

$ 5,388 $ 1,220 22.6 %

Excess stock-based compensation — 18

Annual effective tax rate, excluding discrete items 5,388 1,238 23.0 %

Excess stock-based compensation — (18)

Other restructuring (income) costs 89 20

Six Months Ended June 30, 2025 - Adjusted

$ 5,477 $ 1,240

Six Months Ended June 30, 2024 - U.S.

$ 7,032 $ 1,524 21.7 %

Restructuring (income) costs - divestitures of certain non-U.S.

entities 164 54

Excess stock-based compensation — 42

Annual effective tax rate, excluding discrete items 7,196 1,620 22.5 %

Excess stock-based compensation — (42)

Other restructuring (income) costs 88 20

Six Months Ended June 30, 2024 - Adjusted

$ 7,284 $ 1,598

In addition, we provide a calculation of ME&T free cash flow as we believe it is an important measure for investors to determine the cash generation available for financing activities including debt repayments, dividends and share repurchases.

Reconciliations of ME&T free cash flow to the most directly comparable GAAP measure, net cash provided by operating activities are as follows:

(Millions of dollars) Three Months Ended March 31,

(Millions of dollars) Six Months Ended June 30,

ME&T net cash provided by operating activities 1

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We believe this presentation will assist readers in understanding our business.

Pages 60 to 65 reconcile ME&T and Financial Products to Caterpillar Inc.

Pages 70 - 77 reconcile ME&T and Financial Products to Caterpillar Inc.

consolidated financial information.

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Supplemental Data for Results of Operations

For the Three Months Ended March 31, 2025

For the Three Months Ended June 30, 2025

(Millions of dollars)

Supplemental Consolidating Data

Consolidated Machinery,

Transportation Financial

Products Consolidating

Sales and revenues:

Sales of Machinery, Energy & Transportation $ 15,674 $ 15,674 $ — $ —

Revenues of Financial Products 895 — 1,081 (186) 1

Total sales and revenues 16,569 15,674 1,081 (186)

Operating costs:

Cost of goods sold 10,807 10,809 — (2) 2

Selling, general and administrative expenses 1,694 1,497 209 (12) 2

Research and development expenses 551 551 — —

Interest expense of Financial Products 336 — 342 (6) 2

Other operating (income) expenses 321 22 318 (19) 2

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) 3

Other income (expense) 84 (101) 42 143 4

Consolidated profit before taxes 2,818 2,564 254 —

Provision (benefit) for income taxes 646 585 61 —

Profit of consolidated companies 2,172 1,979 193 —

Equity in profit (loss) of unconsolidated affiliated companies 7 7 — —

Profit of consolidated and affiliated companies 2,179 1,986 193 —

Profit (loss) attributable to noncontrolling interests — (1) 1 —

$ 2,179 $ 1,987 $ 192 $ —

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.

Caterpillar Inc.

Supplemental Data for Results of Operations

For the Six Months Ended June 30, 2025

(Millions of dollars)

Supplemental Consolidating Data

Consolidated Machinery, Energy & Transportation Financial

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Profit of consolidated and affiliated companies 4,182 3,824 358 —

Profit (loss) attributable to noncontrolling interests — (1) 1 —

$ 4,182 $ 3,825 $ 357 $ —

6 unchanged sentences

Supplemental Data for Results of Operations

For the Three Months Ended March 31, 2024

For the Three Months Ended June 30, 2024

(Millions of dollars)

25 unchanged sentences

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.

Caterpillar Inc.

Supplemental Data for Results of Operations

For the Six Months Ended June 30, 2024

(Millions of dollars)

Supplemental Consolidating Data

Consolidated Machinery,

Transportation Financial

Products Consolidating

Sales and revenues:

Sales of Machinery, Energy & Transportation $ 30,800 $ 30,800 $ — $ —

Revenues of Financial Products 1,688 — 2,072 (384) 1

Total sales and revenues 32,488 30,800 2,072 (384)

Operating costs:

Cost of goods sold 19,812 19,816 — (4) 2

Selling, general and administrative expenses 3,229 2,862 363 4 2

Research and development expenses 1,055 1,055 — —

Interest expense of Financial Products 612 — 612 —

Other operating (income) expenses 779 2 845 (68) 2

Total operating costs 25,487 23,735 1,820 (68)

Operating profit 7,001 7,065 252 (316)

Interest expense excluding Financial Products 280 280 — —

Other income (expense) 311 (41) 36 316 3

Consolidated profit before taxes 7,032 6,744 288 —

Provision (benefit) for income taxes 1,524 1,401 123 —

Profit of consolidated companies 5,508 5,343 165 —

Equity in profit (loss) of unconsolidated affiliated companies 27 27 — —

Profit of consolidated and affiliated companies 5,535 5,370 165 —

Profit (loss) attributable to noncontrolling interests (2) (3) 1 —

$ 5,537 $ 5,373 $ 164 $ —

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

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

3 unchanged sentences

Supplemental Data for Financial Position

At March 31, 2025

At June 30, 2025

(Millions of dollars)

24 unchanged sentences

Customer advances 3,412 3,387 3 22 7

Dividends payable 707 707 — —

Other current liabilities 2,627 2,091 768 (232) 4,5,8

82 unchanged sentences

Supplemental Data for Cash Flow

For the Three Months Ended March 31, 2025

For the Six Months Ended June 30, 2025

(Millions of dollars)

27 unchanged sentences

Proceeds from sale of finance receivables 18 — 18 —

Net intercompany borrowings — — 7 (7) 3

Additions to intercompany receivables (original maturities greater than three months) — (1,000) — 1,000 3

Collections of intercompany receivables (original maturities greater than three months) — — 35 (35) 3

Investments and acquisitions (net of cash acquired) (21) (21) — —

8 unchanged sentences

Payments to purchase common stock (4,488) (4,488) — —

Net intercompany borrowings — (7) — 7 3

Excise tax paid on purchases of common stock (73) (73) — —

Proceeds from intercompany borrowings (original maturities greater than three months) — — 1,000 (1,000) 3

Payments on intercompany borrowings (original maturities greater than three months) — (35) — 35 3

Proceeds from debt issued (original maturities greater than three months) 5,707 1,976 3,731 —

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2 Reclassification of Financial Products’ cash flow activity from investing to operating for receivables that arose from the sale of inventory.

3 Elimination of net proceeds and payments to/from ME&T and Financial Products.

3 Elimination of proceeds and payments to/from ME&T and Financial Products.

Caterpillar Inc.

Supplemental Data for Cash Flow

For the Three Months Ended March 31, 2024

For the Six Months Ended June 30, 2024

(Millions of dollars)

29 unchanged sentences

Net intercompany borrowings — — 9 (9) 3

Investments and acquisitions (net of cash acquired) (32) (32) — —

Proceeds from sale of businesses and investments (net of cash sold) (61) 92 (153) —

56 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis