What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-11-03 compared with 2025-08-06 · 322 added, 310 removed, 844 unchanged (43% of the section changed)

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Risk Factors of the 2024 Form 10-K .

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

Highlights for the third quarter of 2025 include:

• Total sales and revenues for the third quarter of 2025 were $17.638 billion, an increase of $1.532 billion, or 10 percent, compared with $16.106 billion in the third quarter of 2024.

Sales were higher across the three primary segments.

• Operating profit margin was 17.3 percent for the third quarter of 2025, compared with 19.5 percent for the third quarter of 2024.

Adjusted operating profit margin was 17.5 percent for the third quarter of 2025, compared with 20.0 percent for the third quarter of 2024.

• Third-quarter 2025 profit per share was $4.88, and excluding the items in the table below, adjusted profit per share was $4.95.

Third-quarter 2024 profit per share was $5.06, and excluding the items in the table below, adjusted profit per share was $5.17.

• Caterpillar ended the third quarter of 2025 with $7.5 billion of enterprise cash.

Highlights for the nine months ended September 30, 2025, include:

• Total sales and revenues were $48.456 billion for the nine months ended September 30, 2025, a decrease of $138 million, compared with $48.594 billion for the nine months ended September 30, 2024.

• Operating profit margin was 17.5 percent for the nine months ended September 30, 2025, compared with 20.9 percent for the nine months ended September 30, 2024.

Adjusted operating profit margin was 17.8 percent for the nine months ended September 30, 2025, compared with 21.5 percent for the nine months ended September 30, 2024.

• Profit per share for the nine months ended September 30, 2025, was $13.69, and excluding the items in the table below, adjusted profit per share was $13.91.

Profit per share for the nine months ended September 30, 2024, was $16.27, and excluding the items in the table below, adjusted profit per share was $16.75.

• Enterprise operating cash flow was $8.1 billion for the nine months ended September 30, 2025.

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

Three Months Ended September 30, 2025 Three Months Ended September 30, 2024 Nine Months Ended September 30, 2025 Nine Months Ended September 30, 2024

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

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A detailed reconciliation of GAAP to non-GAAP financial measures is included on pages 68 - 70 .

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.

Total sales and revenues for the third quarter of 2025 were $17.638 billion, an increase of $1.532 billion, or 10 percent, compared with $16.106 billion in the third quarter of 2024.

The increase was primarily due to higher sales volume of $1.554 billion.

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

Third-quarter 2025 profit per share was $4.88, compared with $5.06 profit per share in the third quarter of 2024.

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

Profit for the third quarter of 2025 was $2.300 billion, a decrease of $164 million, or 7 percent, compared with $2.464 billion for the third quarter of 2024.

The decrease was mainly due to unfavorable manufacturing costs, unfavorable price realization and higher selling, general and administrative (SG&A) and

research and development (R&D) expenses.

This was partially offset by the profit impact of higher sales volume, favorable other operating income/expense and lower restructuring costs.

Trends and Economic Conditions

Outlook for Key End Markets

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

Customers continue to be responsive to the attractive rates through our merchandising programs with Cat Financial.

We continue to anticipate growth in Construction Industries’ 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.

We continue to expect growth for sales of equipment to end users.

Dealer rental revenues are also expected to grow in 2025, and dealer rental fleet loading is expected to increase in the fourth quarter of 2025 as compared to the fourth quarter of 2024.

In Asia Pacific, sales of equipment to end users are expected to be about flat in 2025.

China has shown positive momentum to start the year, and we expect growth in the above-10-ton excavator industry in 2025, 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.

In EAME , we expect growth for the year, driven by healthy construction activity in Africa and the Middle East and improving economic conditions in Europe.

With ongoing weaker construction activity in Latin America , we now expect to be about flat in 2025.

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

However, we see positive momentum with healthy orders for large mining trucks, articulated trucks and large track type tractors.

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.

As a result, we continue to expect slightly lower rebuild activity in 2025 as compared to 2024.

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 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 Energy & Transportation , we expect strong growth in sales for Power Generation in 2025 as compared to 2024.

Demand remains robust, driven by data center growth related to cloud computing and generative Artificial Intelligence (AI).

Orders for prime power applications are healthy.

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

We 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.

Demand for products in Industrial applications is improving from previous low levels, with order growth being driven by engines sold into electric power applications.

Transportation is expected to remain stable.

Full-Year 2025 Company Trends and Expectations

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.

We are optimistic about our sales and revenues momentum supported by healthy demand signals including a robust backlog and growth in sales of equipment to end users.

For 2025, we expect sales and revenues to increase modestly compared to 2024.

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.

Tariff and trade negotiations remain fluid.

We are continuously evaluating options to further reduce the impact of incremental tariffs, and we fully intend to implement longer-term actions once there is sufficient certainty.

We remain confident that we will manage the impact of tariffs over time.

Based on the incremental tariffs announced in 2025 and in place by November 1, 2025, we expect the impact from incremental tariffs for 2025 will be around $1.6 billion to $1.75 billion, net of some mitigating actions and cost controls.

This assumes that the net incremental impact of tariffs will be greater in the fourth quarter of 2025 than the third quarter of 2025, primarily due to the timing of tariff rate changes.

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

We anticipate our 2025 estimated annual effective tax rate to be 24.0 percent, excluding discrete items.

Fourth-Quarter 2025 Company Trends and Expectations

In the fourth quarter of 2025 as compared to the fourth quarter of 2024, we anticipate strong sales and revenues growth, primarily driven by higher sales volume across all three primary segments.

We expect machine dealer inventory to decline slightly in the fourth quarter of 2025, compared to a $1.6 billion decrease in the fourth quarter of 2024.

We expect price realization to be roughly flat in the fourth quarter of 2025 as compared to the fourth quarter of 2024.

In the fourth quarter of 2025 as compared to the fourth quarter of 2024, in Construction Industries, we expect a strong sales increase, primarily driven by higher sales volume.

We expect higher sales volume to be mainly driven by the impact from changes in dealer inventories.

We also expect higher sales of equipment to end users.

We anticipate price realization for the fourth quarter of 2025 to be about neutral as compared to the fourth quarter of 2024.

In Resource Industries, we expect stronger sales in the fourth quarter of 2025 as compared to the fourth 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 the impact from changes in dealer inventories.

We expect lower sales of equipment to end users.

The unfavorable impact of price realization in the fourth quarter of 2025 as compared to the fourth quarter of 2024 is expected to be slightly less than the impact in the third quarter of 2025 as compared to the third quarter of 2024.

In Energy & Transportation, we anticipate strong sales growth in the fourth quarter of 2025 as compared to the fourth 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.

Price realization should remain favorable as well.

The sales growth rate for Energy & Transportation in the fourth quarter of 2025, as compared to the third quarter of 2025, is expected to be slightly lower than the growth rate in the fourth quarter of 2024 as compared to the third quarter of 2024.

In the fourth quarter of 2025 as compared to the fourth quarter of 2024, excluding the net impact from incremental tariffs, we expect the profit impact of higher sales volume will be partially offset by unfavorable manufacturing costs.

In the fourth quarter of 2025, we anticipate a net incremental tariff impact of about $650 million to $800 million.

In the fourth quarter of 2025 as compared to the fourth quarter of 2024, in Construction Industries, excluding the net impact from incremental tariffs, we expect a profit impact of higher sales volume, which we anticipate will include a partial offset from an unfavorable mix of products.

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.

In Resource Industries, excluding the net impact from incremental tariffs, we anticipate the profit impact from higher sales volume will be partially offset by unfavorable price realization.

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.

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

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

We anticipate incremental tariffs to have a minimal impact to Corporate Items and Eliminations in the fourth quarter of 2025 as our current assumptions are based on tariffs announced and in place by November 1, 2025.

Global Business Conditions

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Consolidated Results of Operations

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

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

CONSOLIDATED SALES AND REVENUES

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

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

Caterpillar management utilizes these charts internally to visually communicate with the company’s board of directors and employees.

Total sales and revenues for the 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 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.

Total sales and revenues for the third quarter of 2025 were $17.638 billion, an increase of $1.532 billion, or 10 percent, compared with $16.106 billion in the third quarter of 2024.

The increase was primarily due to higher sales volume of $1.554 billion.

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

Sales were higher across the three primary segments.

North America sales increased 14 percent primarily due to higher sales volume.

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

Sales increased 10 percent in Latin America mainly due to higher sales volume.

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

EAME sales increased 1 percent due to favorable currency impacts primarily related to the euro, partially offset by unfavorable price realization and lower sales volume.

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

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

Asia/Pacific sales increased 7 percent mainly due to 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.

Dealer inventory decreased less during the third quarter of 2025 than during the third quarter of 2024.

Total dealer inventory increased $600 million during the third quarter of 2025, compared with an increase of $400 million during the third quarter of 2024.

Machine dealer inventory increased $300 million during the third quarter of 2025, compared with an increase of $100 million in the third quarter of 2024.

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) Second Quarter 2024 Sales

Realization Currency Inter-Segment / Other Second Quarter 2025 $

(Millions of dollars) Third Quarter 2024 Sales

Realization Currency Inter-Segment / Other Third Quarter 2025 $

Construction Industries $ 6,345 $ 568 $ (262) $ 69 $ 40 $ 6,760 $ 415 7 %

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

Second Quarter 2025

Third Quarter 2025

Construction Industries $ 3,912 8 % $ 654 (1 %) $ 1,217 6 % $ 904 3 % $ 6,687 6 % $ 73 121 % $ 6,760 7 %

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Consolidated Sales and Revenues $ 9,681 13 % $ 1,850 10 % $ 3,231 1 % $ 2,876 7 % $ 17,638 10 % $ — — % $ 17,638 10 %

Second Quarter 2024

Third Quarter 2024

Construction Industries $ 3,629 $ 658 $ 1,150 $ 875 $ 6,312 $ 33 $ 6,345

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Consolidated Sales and Revenues $ 8,545 $ 1,678 $ 3,199 $ 2,684 $ 16,106 $ — $ 16,106

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

1 Includes revenues from Machinery, Energy & Transportation o f $187 m illion and $190 million in the third 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).

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

Caterpillar management utilizes these charts internally to visually communicate with the company’s board of directors and employees.

The bar titled Other includes consolidating adjustments and Machinery, Energy & Transportation 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.

Operating profit for the third quarter of 2025 was $3.052 billion, a decrease of $95 million, or 3 percent, compared with $3.147 billion in the third quarter of 2024.

The decrease was mainly due to unfavorable manufacturing costs of $686 million, unfavorable price realization of $191 million and higher SG&A/R&D expenses of $129 million.

This was partially offset by the profit impact of higher sales volume of $700 million, favorable other operating income/expense of $180 million and lower restructuring costs of $33 million.

Unfavorable manufacturing costs largely reflected the impact of higher tariffs.

The increase in SG&A/R&D expenses was primarily driven by higher compensation expenses, including higher short-term incentive compensation expense.

Favorable other operating income/expense included proceeds from an insurance claim.

Operating profit margin was 17.3 percent for the third quarter of 2025, compared with 19.5 percent for the third quarter of 2024.

Profit (Loss) by Segment

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

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

Construction Industries $ 1,377 $ 1,486 $ (109) (7 %)

9 unchanged sentences

Consolidated Operating Profit $ 3,052 $ 3,147 $ (95) (3 %)

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.

Other Profit/Loss and Tax Items

• Interest expense excluding Financial Products in the third quarter of 2025 was $133 million, compared with $125 million in the third quarter of 2024.

The increase was due to higher average debt outstanding, partially offset by lower average borrowing rates.

• Other income (expense) in the third quarter of 2025 was income of $208 million, compared with income of $76 million in the third quarter of 2024.

The change was primarily driven by favorable foreign currency impacts.

• The effective tax rate for the third quarter of 2025 was 26.7 percent compared to 20.7 percent for the third quarter of 2024.

Excluding the discrete items discussed below, the third-quarter 2025 estimated annual effective tax rate was 24.0 percent compared with 22.5 percent for the third quarter of 2024.

The company recorded a $54 million charge in the third quarter of 2025 for an increase in the estimated annual tax rate through the first six months, primarily due to a change in tax incentives driven by U.S.

tax legislation enacted on July 4, 2025, which reinstated 100 percent bonus depreciation and full expensing of U.S.

research and development expenditures.

The company also recorded a discrete tax charge of $41 million in the third quarter of 2025, compared to discrete tax benefits of $47 million in the third quarter of 2024, to reflect changes in estimates related to prior years.

In addition, a discrete tax benefit of $10 million was recorded in the third quarter of 2025, compared with a $7 million benefit in the third quarter of 2024, for the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S.

GAAP compensation expense.

Please see a reconciliation of GAAP to non-GAAP financial measures on pages 68 - 70 .

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.

Construction Industries’ total sales were $6.760 billion in the third quarter of 2025, an increase of $415 million, or 7 percent, compared with $6.345 billion in the third quarter of 2024.

The increase was primarily due to higher sales volume of $568 million and favorable currency impacts of $69 million, primarily related to the euro, partially offset by unfavorable price realization of $262 million.

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

• In North America, sales increased due to higher sales volume, partially offset by unfavorable price realization.

Higher sales volume was mainly driven by higher sales of equipment to end users.

• Sales decreased in Latin America due to unfavorable price realization, partially offset by higher sales volume and favorable currency impacts primarily related to the Brazilian real.

Higher sales volume was mainly driven by higher sales of equipment to end users.

• In EAME, sales increased mainly due to higher sales volume and favorable currency impacts primarily related to the euro, partially offset by unfavorable price realization.

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

• Sales increased in Asia/Pacific mainly due to higher sales volume and favorable currency impacts primarily related to the Japanese yen.

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.

Dealer inventory increased during the third quarter of 2025, compared with a decrease during the third quarter of 2024.

Construction Industries’ segment profit was $1.377 billion in the third quarter of 2025, a decrease of $109 million, or 7 percent, compared with $1.486 billion in the third quarter of 2024.

The decrease was primarily due to unfavorable price realization of $262 million and unfavorable manufacturing costs of $174 million, partially offset by the profit impact of higher sales volume of $313 million.

Unfavorable manufacturing costs largely reflected the impact of higher tariffs.

Construction Industries’ segment profit as a percent of total sales was 20.4 percent in the third quarter of 2025, compared with 23.4 percent in the third 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.

Resource Industries’ total sales were $3.110 billion in the third quarter of 2025, an increase of $62 million, or 2 percent, compared with $3.048 billion in the third quarter of 2024.

The increase was primarily due to higher sales volume of $138 million, partially offset by unfavorable price realization of $61 million.

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

Resource Industries’ segment profit was $499 million in the third quarter of 2025, a decrease of $120 million, or 19 percent, compared with $619 million in the third quarter of 2024.

The decrease was mainly due to unfavorable manufacturing costs of $92 million and unfavorable price realization of $61 million, partially offset by the profit impact of higher sales volume of $49 million.

Unfavorable manufacturing costs largely reflected the impact of higher tariffs.

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.

Resource Industries’ segment profit as a percent of total sales was 16.0 percent in the third quarter of 2025, compared with 20.3 percent in the third quarter of 2024.

Energy & Transportation

Sales by Application

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

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

Oil and Gas $ 1,979 $ 1,656 $ 323 20 %

5 unchanged sentences

Total Sales $ 8,397 $ 7,187 $ 1,210 17 %

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.

Energy & Transportation’s total sales were $8.397 billion in the third quarter of 2025, an increase of $1.210 billion, or 17 percent, compared with $7.187 billion in the third quarter of 2024.

The increase was primarily due to higher sales volume of $870 million and higher inter-segment sales of $156 million.

• 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.

Sales also increased in reciprocating 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.

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

• Transportation – Sales increased in rail services.

Energy & Transportation’s segment profit was $1.678 billion in the third quarter of 2025, an increase of $245 million, or 17 percent, compared with $1.433 billion in the third quarter of 2024.

The increase was primarily due to the profit impact of higher sales volume of $357 million and favorable price realization of $132 million, partially offset by unfavorable manufacturing costs of $287 million.

Unfavorable manufacturing costs primarily reflected the impact of higher tariffs.

Energy & Transportation’s segment profit as a percent of total sales was 20.0 percent in the third quarter of 2025, compared with 19.9 percent in the third 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.

Financial Products’ segment revenues were $1.076 billion in the third quarter of 2025, an increase of $42 million, or 4 percent, compared with $1.034 billion in the third quarter of 2024.

The increase was primarily due to a favorable impact from higher average earning assets of $56 million driven by North America, partially offset by an unfavorable impact from lower average financing rates of $15 million across all regions except Latin America.

Financial Products’ segment profit was $241 million in the third quarter of 2025, a decrease of $5 million, or 2 percent, compared with $246 million in the third quarter of 2024.

The decrease was mainly due to a higher provision for credit losses at Cat Financial of $15 million, higher SG&A expenses of $7 million and an unfavorable impact from equity securities at Insurance Services of $6 million, partially offset by a favorable impact from higher average earning assets of $23 million.

At the end of the third quarter of 2025, past dues at Cat Financial were 1.47 percent, compared with 1.74 percent at the end of the third quarter of 2024.

Write-offs, net of recoveries, were $40 million for the third quarter of 2025, compared with $27 million for the third quarter of 2024.

As of September 30, 2025, Cat Financial's allowance for credit losses totaled $283 million, or 0.89 percent of finance receivables, compared with $290 million, or 0.94 percent of finance receivables at June 30, 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

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

NINE MONTHS ENDED SEPTEMBER 30, 2025, COMPARED WITH NINE MONTHS ENDED SEPTEMBER 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).

The chart above graphically illustrates reasons for the change in consolidated sales and revenues between the nine months ended September 30, 2024 (at left) and the nine months ended September 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.

Total sales and revenues were $48.456 billion for the nine months ended September 30, 2025, a decrease of $138 million, compared with $48.594 billion for the nine months ended September 30, 2024.

Unfavorable price realization of $855 million and unfavorable currency impacts of $79 million, primarily related to the Brazilian real, were offset by higher sales volume of $681 million and higher Financial Products' revenues of $115 million.

The increase in 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 were about flat.

Higher sales volume was offset by unfavorable price realization.

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

Sales increased 1 percent in Latin America mainly due to higher sales volume and favorable price realization, partially offset by unfavorable currency impacts primarily related to the Brazilian real.

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

EAME sales decreased 2 percent primarily due to unfavorable price realization, partially offset by favorable currency impacts primarily related to the euro.

Sales decreased 2 percent in Asia/Pacific mainly due to unfavorable price realization and unfavorable currency impacts primarily related to the Australian dollar.

Dealer inventory increased about $900 million during the nine months ended September 30, 2025, compared with an increase of about $1.7 billion during the nine months ended September 30, 2024.

Machine dealer inventory was about flat during the nine months ended September 30, 2025, compared with an increase of $900 million during the nine months ended September 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.

2 unchanged sentences

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 $

(Millions of dollars) Nine Months Ended September 30, 2024 Sales

Realization Currency Inter-Segment / Other Nine Months Ended September 30, 2025 $

Construction Industries $ 19,452 $ (335) $ (1,076) $ (20) $ 113 $ 18,134 $ (1,318) (7 %)

11 unchanged sentences

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

Six Months Ended June 30, 2025

Nine Months Ended September 30, 2025

Construction Industries $ 10,185 (11 %) $ 1,698 (12 %) $ 3,269 2 % $ 2,802 (1 %) $ 17,954 (7 %) $ 180 169 % $ 18,134 (7 %)

9 unchanged sentences

Consolidated Sales and Revenues $ 26,270 — % $ 5,021 1 % $ 8,917 (1 %) $ 8,248 (2 %) $ 48,456 — % $ — — % $ 48,456 — %

Six Months Ended June 30, 2024

Nine Months Ended September 30, 2024

Construction Industries $ 11,419 $ 1,930 $ 3,193 $ 2,843 $ 19,385 $ 67 $ 19,452

8 unchanged sentences

Consolidated Sales and Revenues $ 26,161 $ 4,956 $ 9,048 $ 8,429 $ 48,594 $ — $ 48,594

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

1 Includes revenues from Machinery, Energy & Transportation of $522 million and $547 million in the nine months ended September 30, 2025 and 2024, respectively.

CONSOLIDATED OPERATING PROFIT

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).

The chart above graphically illustrates reasons for the change in consolidated operating profit between the nine months ended September 30, 2024 (at left) and the nine months ended September 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 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.

Operating profit for the nine months ended September 30, 2025, was $8.491 billion, a decrease of $1.657 billion, or 16 percent, compared with $10.148 billion for the nine months ended September 30, 2024.

The decrease was primarily due to unfavorable manufacturing costs of $1.118 billion and unfavorable price realization of $855 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.

Operating profit margin was 17.5 percent for the nine months ended September 30, 2025, compared with 20.9 percent for the nine months ended September 30, 2024.

Profit (Loss) by Segment

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

(Millions of dollars) Nine Months Ended September 30, 2025 Nine Months Ended September 30, 2024 $

Construction Industries $ 3,645 $ 4,991 $ (1,346) (27 %)

10 unchanged sentences

Other Profit/Loss and Tax Items

• 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) 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 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.

• Interest expense excluding Financial Products for the nine months ended September 30, 2025, was $375 million, compared with $405 million for the nine months ended September 30, 2024.

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

• Other income (expense) for the nine months ended September 30, 2025, was income of $399 million, compared with income of $387 million for the nine months ended September 30, 2024.

• The effective tax rate for the nine months ended September 30, 2025, was 24.1 percent compared to 21.4 percent for the nine months ended September 30, 2024.

Excluding the discrete items discussed below, the estimated annual effective tax rate for the nine months ended September 30, 2025, was 24.0 percent compared with 22.5 percent for the nine months ended September 30, 2024.

The increase was primarily due to a change in tax incentives driven by U.S.

tax legislation enacted on July 4, 2025, which reinstated 100 percent bonus depreciation and full expensing of U.S.

research and development expenditures.

The company also recorded a discrete tax charge of $41 million in the nine months ended September 30, 2025, compared to discrete tax benefits of $47 million in the nine months ended September 30, 2024, to reflect changes in estimates related to prior years.

A discrete tax benefit of $28 million was recorded in the nine months ended September 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 $49 million for the nine months ended September 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.

entities with related tax benefits of $54 million.

Please see a reconciliation of GAAP to non-GAAP financial measures on pages 68 - 70 .

Construction Industries

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.

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

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.

Construction Industries’ total sales were $18.134 billion for the nine months ended September 30, 2025, a decrease of $1.318 billion, or 7 percent, compared with $19.452 billion for the nine months ended September 30, 2024.

The decrease was primarily due to unfavorable price realization.

• 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 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.

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

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

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

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.

Dealer inventory decreased during the nine months ended September 30, 2025, compared with an increase during the nine months ended September 30, 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 primarily due to higher sales of equipment to end users.

1 unchanged sentence

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.

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

Construction Industries’ profit was $3.645 billion for the nine months ended September 30, 2025, a decrease of $1.346 billion, or 27 percent, compared with $4.991 billion for the nine months ended September 30, 2024.

The decrease was mainly due to unfavorable price realization of $1.076 billion and unfavorable manufacturing costs of $251 million.

Unfavorable manufacturing costs largely reflected the impact of higher tariffs.

Construction Industries’ profit as a percent of total sales was 20.1 percent for the nine months ended September 30, 2025, compared with 25.7 percent for the nine months ended September 30, 2024.

Resource Industries

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.

Resource Industries’ total sales were $9.121 billion for the nine months ended September 30, 2025, a decrease of $370 million, or 4 percent, compared with $9.491 billion for the nine months ended September 30, 2024.

The decrease was primarily due to unfavorable price realization of $205 million and lower sales volume of $56 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.

Resource Industries’ profit was $1.628 billion for the nine months ended September 30, 2025, a decrease of $439 million, or 21 percent, compared with $2.067 billion for the nine months ended September 30, 2024.

The decrease was mainly due to unfavorable price realization of $205 million, the profit impact of lower sales volume of $100 million, including an unfavorable mix of products, and unfavorable manufacturing costs of $98 million.

Unfavorable manufacturing costs largely reflected the impact of higher tariffs.

Resource Industries’ profit as a percent of total sales was 17.8 percent for the nine months ended September 30, 2025, compared with 21.8 percent for the nine months ended September 30, 2024.

Energy & Transportation

Sales by Application

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

(Millions of dollars) Nine Months Ended September 30, 2025 Nine Months Ended September 30, 2024 $

Oil and Gas $ 5,104 $ 5,053 $ 51 1 %

5 unchanged sentences

Total Sales $ 22,801 $ 21,205 $ 1,596 8 %

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.

Energy & Transportation’s total sales were $22.801 billion for the nine months ended September 30, 2025, an increase of $1.596 billion, or 8 percent, compared with $21.205 billion for the nine months ended September 30, 2024.

The increase was primarily due to higher sales volume of $1.021 billion and favorable price realization of $426 million.

• Oil and Gas – Sales increased in 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 were about flat.

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

• Transportation – Sales decreased in marine.

International locomotive deliveries were also lower.

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 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.

Energy & Transportation’s profit was $4.577 billion for the nine months ended September 30, 2025, an increase of $318 million, or 7 percent, compared with $4.259 billion for the nine months ended September 30, 2024.

The increase was mainly due to favorable price realization of $426 million and the profit impact of higher sales volume of $306 million, partially offset by unfavorable manufacturing costs of $481 million.

Unfavorable manufacturing costs largely reflected the impact of higher tariffs.

Energy & Transportation’s profit as a percent of total sales was 20.1 percent for the nine months ended September 30, 2025 and for the nine months ended September 30, 2024.

Financial Products Segment

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.

Financial Products’ segment revenues were $3.125 billion for the nine months ended September 30, 2025, an increase of $96 million, or 3 percent, compared with $3.029 billion for the nine months ended September 30, 2024.

The increase was primarily due to a favorable impact from higher average earning assets of $133 million driven by North America, partially offset by an unfavorable impact from lower average financing rates of $50 million mainly in North America.

Financial Products’ segment profit was $704 million for the nine months ended September 30, 2025, a decrease of $62 million, or 8 percent, compared with $766 million for the nine months ended September 30, 2024.

The decrease was mainly due to higher provision for credit losses at Cat Financial of $50 million, the absence of an insurance settlement of $33 million in 2024,

and an unfavorable impact from lower net yield on average earning assets of $21 million, partially offset by a favorable impact from higher average earning assets of $54 million.

Corporate Items and Eliminations

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.

Expense for corporate items and eliminations was $1.601 billion for the nine months ended September 30, 2025, an increase of $117 million from the nine months ended September 30, 2024, mainly driven by increased expenses due to timing differences, higher corporate costs and unfavorable impacts of segment reporting methodology differences, partially offset by favorable restructuring income/costs .

RESTRUCTURING COSTS

8 unchanged sentences

product management and development;

manufacturing and sourcing of wear and maintenance components primarily for Cat® products;

parts distribution;

integrated logistics solutions;

electronics and control systems;

distribution services responsible for dealer development and administration, including a wholly owned dealer in Japan;

1 unchanged sentence

brand management and marketing strategy;

and digital investments for new customer and dealer solutions that integrate data analytics with state-of-the-art digital technologies while transforming the buying experience.

research and development for automation, electronics and software for machines and engines and digital investments for new customer and dealer solutions that integrate data analytics with state-of-the-art digital technologies while transforming the buying experience.

Consolidating Adjustments – Elimination of transactions between Machinery, Energy & Transportation and Financial Products.

79 unchanged sentences

machinery components;

electronics and control systems and related parts.

In addition to equipment, Resource Industries also develops and sells technology products and services to provide customers fleet management, equipment management analytics, autonomous machine capabilities, safety services and mining performance solutions.

Resource Industries also manages areas that provide services to other parts of the company, including strategic procurement, lean center of excellence, integrated manufacturing, research and development for hydraulic systems, automation, electronics and software for Caterpillar machines and engines.

wear and maintenance components and related parts.

In addition to equipment, Resource Industries also sells technology products and services to provide customers fleet management, equipment management analytics, autonomous machine capabilities, safety services and mining performance solutions.

Resource Industries also manages areas that provide services to other parts of the company, including strategic procurement, lean center of excellence, integrated component design and manufacturing and research and development for hydraulic systems and cabs.

Restructuring income/costs – May include costs for employee separation, long-lived asset impairments, contract terminations and (gains)/losses on divestitures.

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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 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.

On a consolidated basis, we had positive operating cash flow in the first nine months of 2025 and ended the third quarter with $7.538 billion of cash, an increase of $649 million 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 $1.221 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.

These ME&T securities were $1.223 billion as of September 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 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.

Consolidated operating cash flow for the first nine months of 2025 was $8.148 billion, down $494 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 lower cash taxes paid and lower working capital requirements, excluding the impact of changes in accrued wages, salaries, and employee benefits.

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

Total debt as of September 30, 2025 was $41.534 billion, an increase of $3.125 billion from year-end 2024.

Debt related to ME&T increased $2.154 billion in the first nine 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.

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Debt related to Financial Products increased $2.034 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.

As of September 30, 2025, we had three global credit facilities with a syndicate of banks totaling $11.500 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 September 30, 2025 was $2.875 billion.

Information on our Credit Facility is as follows:

• The 364-day facility of $3.150 billion (of which $825 million is available to ME&T) expires in August 2025.

• The three-year facility, as amended in August 2024, of $2.730 billion (of which $715 million is available to ME&T) expires in August 2027.

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

• In August 2025, we entered into a new 364-day facility of $3.500 billion (of which $875 million is available to ME&T), which expires in August 2026.

• In August 2025, we amended and extended the three-year facility (as amended and restated, the "three-year facility").

The three-year facility of $3.000 billion (of which $750 million is available to ME&T) expires in August 2028.

• In August 2025, we amended and extended the five-year facility (as amended and restated, the "five-year facility").

The five-year facility of $5.000 billion (of which $1.250 billion is available to ME&T) expires in August 2030.

At September 30, 2025, Caterpillar’s consolidated net worth was $20.722 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 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 June 30, 2025, Cat Financial’s six-month covenant leverage ratio was 7.18 to 1.

At September 30, 2025, Cat Financial’s covenant interest coverage ratio was 1.50 to 1.

In addition, at September 30, 2025, Cat Financial’s six-month covenant leverage ratio was 7.16 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.

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

At September 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.

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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 June 30, 2025 were:

June 30, 2025

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

September 30, 2025

(Millions of dollars) Consolidated Machinery,

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Available credit $ 10,787 $ 3,769 $ 7,018

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

The other external consolidated credit lines with banks as of September 30, 2025 totaled $4.394 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.

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Machinery, Energy & Transportation

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.

Net cash provided by operating activities was $7.745 billion in the first nine months of 2025, compared with net cash provided of $7.726 billion for the same period in 2024.

The increase was primarily due to lower working capital requirements;

excluding the impact of changes in accrued wages, salaries, and employee benefits;

and lower cash taxes paid.

These increases were partially offset by lower profit before taxes, adjusted for non-cash items.

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

Net cash used by investing activities in the first nine months of 2025 was $2.112 billion, compared with net cash provided of $1.009 billion in the first nine 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;

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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.

Net cash used for financing activities during the first nine months of 2025 was $5.128 billion, compared with net cash used of $10.044 billion in the same period of 2024.

The change was primarily due to lower payments to purchase common stock, higher proceeds from debt issued and lower payments on debt in the first nine 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 $1.287 billion during the first six months of 2025, compared to $841 million for the same period in 2024.

Operational excellence and commitments – Capital expenditures were $1.944 billion during the first nine months of 2025, compared to $1.284 billion for the same period in 2024.

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

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

We made $323 million of contributions to our pension and other postretirement benefit plans during the first nine months of 2025.

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

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

In comparison, we made $221 million of contributions to our pension and other postretirement benefit plans during the first nine 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 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.

In October 2025, the Board of Directors approved maintaining our quarterly dividend representing $1.51 per share, and we continue to expect our strong financial position to support the dividend.

Dividends paid totaled $2.043 billion in the first nine 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 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.

In the first nine months of 2025, we repurchased $4.850 billion of Caterpillar common stock.

As of September 30, 2025, the 2022 Authorization was fully utilized and $15.280 billion remained available under the 2024 Authorization.

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

Financial Products

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.

Net cash provided by operating activities was $894 million in the first nine months of 2025, compared with $1.018 billion for the same period in 2024.

Net cash used for investing activities was $2.150 billion in the first nine months of 2025, compared with $1.900 billion for the same period in 2024.

The change was primarily due to portfolio related activity, partially offset by the 2024 divestiture of a non-U.S.

Net cash provided by financing activities was $1.422 billion in the first nine months of 2025, compared with $890 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.

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Information related to legal proceedings appears in Note 14 – "Environmental and legal matters" of Part I, Item 1 “Financial Statements.”

Retirement Benefits

We recognize mark-to-market gains and losses immediately through earnings upon the remeasurement of our pension and OPEB plans.

Mark-to-market gains and losses represent the effects of actual results differing from our assumptions and the effects of changing assumptions.

We will record the annual mark-to-market adjustment as of the measurement date, December 31, 2025.

It is difficult to predict the December 31, 2025 adjustment amount, as it will be dependent primarily on changes in discount rates during 2025, and actual returns on plan assets differing from our expected returns for 2025.

Order Backlog

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

At the end of the third quarter of 2025, the dollar amount of backlog believed to be firm was approximately $39.8 billion, about $2.4 billion higher than the second quarter of 2025 due to increases in the Energy & Transportation segment.

Of the total backlog at September 30, 2025, approximately $12.5 billion was not expected to be filled in the following twelve months.

NON-GAAP FINANCIAL MEASURES

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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 June 30, 2025 - U.S.

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

$ 3,052 17.3 % $ 3,127 $ 836 $ 2,300 $ 4.88

Other restructuring (income) costs 37 0.2 % 37 9 28 0.07

Three Months Ended June 30, 2025 - Adjusted

Three Months Ended September 30, 2025 - Adjusted

$ 3,089 17.5 % $ 3,164 $ 845 $ 2,328 $ 4.95

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

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

$ 3,147 19.5 % $ 3,098 $ 642 $ 2,464 $ 5.06

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

entities 228 1.3 % 228 — 228 0.47

Other restructuring (income) costs 70 0.5 % 70 16 54 0.11

Three Months Ended June 30, 2024 - Adjusted

Three Months Ended September 30, 2024 - Adjusted

$ 3,217 20.0 % $ 3,168 $ 658 $ 2,518 $ 5.17

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

Nine Months Ended September 30, 2025 - U.S.

$ 8,491 17.5 % $ 8,515 $ 2,056 $ 6,482 $ 13.69

Other restructuring (income) costs 125 0.3 % 126 29 100 0.22

Six Months Ended June 30, 2025 - Adjusted

Nine Months Ended September 30, 2025 - Adjusted

$ 8,616 17.8 % $ 8,641 $ 2,085 $ 6,582 $ 13.91

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

Nine Months Ended September 30, 2024 - U.S.

$ 10,148 20.9 % $ 10,130 $ 2,166 $ 8,001 $ 16.27

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Other restructuring (income) costs 158 0.3 % 158 36 122 0.26

Six Months Ended June 30, 2024 - Adjusted

Nine Months Ended September 30, 2024 - Adjusted

$ 10,470 21.5 % $ 10,452 $ 2,256 $ 8,233 $ 16.75

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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.

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.

These items consist of (i) the increase in the annual effective tax rate in 2025, (ii) the impact of changes in estimates related to prior years (iii) the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S.

GAAP compensation expense and (iv) restructuring costs related to the divestitures of certain non-U.S.

entities in 2024.

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

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

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

$ 3,127 $ 836 26.7 %

Increase in annual effective tax rate — (54)

Changes in estimates related to prior years — (41)

Excess stock-based compensation — 10

Annual effective tax rate, excluding discrete items 3,127 751 24.0 %

Increase in annual effective tax rate — 54

Changes in estimates related to prior years — 41

Excess stock-based compensation — (10)

Other restructuring (income) costs 37 9

Three Months Ended June 30, 2025 - Adjusted

Three Months Ended September 30, 2025 - Adjusted

$ 3,164 $ 845

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

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

$ 3,098 $ 642 20.7 %

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

entities 228 —

Changes in estimates related to prior years — 47

Excess stock-based compensation — 7

Annual effective tax rate, excluding discrete items 3,098 696 22.5 %

Changes in estimates related to prior years — (47)

Excess stock-based compensation — (7)

Other restructuring (income) costs 70 16

Three Months Ended June 30, 2024 - Adjusted

Three Months Ended September 30, 2024 - Adjusted

$ 3,168 $ 658

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

Nine Months Ended September 30, 2025 - U.S.

$ 8,515 $ 2,056 24.1 %

Changes in estimates related to prior years — (41)

Excess stock-based compensation — 28

Annual effective tax rate, excluding discrete items 8,515 2,043 24.0 %

Changes in estimates related to prior years — 41

Excess stock-based compensation — (28)

Other restructuring (income) costs 126 29

Six Months Ended June 30, 2025 - Adjusted

Nine Months Ended September 30, 2025 - Adjusted

$ 8,641 $ 2,085

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

Nine Months Ended September 30, 2024 - U.S.

$ 10,130 $ 2,166 21.4 %

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entities 164 54

Changes in estimates related to prior years — 47

Excess stock-based compensation — 49

Annual effective tax rate, excluding discrete items 10,294 2,316 22.5 %

Changes in estimates related to prior years — (47)

Excess stock-based compensation — (49)

Other restructuring (income) costs 158 36

Six Months Ended June 30, 2024 - Adjusted

Nine Months Ended September 30, 2024 - Adjusted

$ 10,452 $ 2,256

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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) Six Months Ended June 30,

(Millions of dollars) Nine Months Ended September 30,

ME&T net cash provided by operating activities 1

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Supplemental Data for Results of Operations

For the Three Months Ended June 30, 2025

For the Three Months Ended September 30, 2025

(Millions of dollars)

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Supplemental Data for Results of Operations

For the Six Months Ended June 30, 2025

For the Nine Months Ended September 30, 2025

(Millions of dollars)

30 unchanged sentences

Supplemental Data for Results of Operations

For the Three Months Ended June 30, 2024

For the Three Months Ended September 30, 2024

(Millions of dollars)

30 unchanged sentences

Supplemental Data for Results of Operations

For the Six Months Ended June 30, 2024

For the Nine Months Ended September 30, 2024

(Millions of dollars)

30 unchanged sentences

Supplemental Data for Financial Position

At June 30, 2025

At September 30, 2025

(Millions of dollars)

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Supplemental Data for Cash Flow

For the Six Months Ended June 30, 2025

For the Nine Months Ended September 30, 2025

(Millions of dollars)

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Dividends paid (2,043) (2,043) — —

Common stock issued, including treasury shares reissued (59) (59) — —

Common stock issued, and other stock compensation transactions, net (39) (39) — —

Payments to purchase common stock (4,850) (4,850) — —

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Supplemental Data for Cash Flow

For the Six Months Ended June 30, 2024

For the Nine Months Ended September 30, 2024

(Millions of dollars)

88 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