What changed in this filing

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Item 1. Financial Statements

2026-05-06 compared with 2025-11-03 · 208 added, 412 removed, 1108 unchanged (36% of the section changed)

3 unchanged sentences

(Dollars in millions except per share data)

Three Months Ended September 30,

Sales and revenues:

Sales of Machinery, Energy & Transportation $ 16,726 $ 15,231

Revenues of Financial Products 912 875

Total sales and revenues 17,638 16,106

Operating costs:

Cost of goods sold 11,673 10,066

Selling, general and administrative expenses 1,822 1,669

Research and development expenses 555 533

Interest expense of Financial Products 346 336

Other operating (income) expenses 190 355

Total operating costs 14,586 12,959

Operating profit 3,052 3,147

Interest expense excluding Financial Products 133 125

Other income (expense) 208 76

Consolidated profit before taxes 3,127 3,098

Provision (benefit) for income taxes 836 642

Profit of consolidated companies 2,291 2,456

Equity in profit (loss) of unconsolidated affiliated companies 8 7

Profit of consolidated and affiliated companies 2,299 2,463

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

$ 2,300 $ 2,464

Profit per common share $ 4.91 $ 5.09

Profit per common share – diluted 2

$ 4.88 $ 5.06

Weighted-average common shares outstanding (millions)

– Basic 468.6 484.2

1 Profit attributable to common shareholders.

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

See accompanying notes to Consolidated Financial Statements.

Caterpillar Inc .

Consolidated Statement of Comprehensive Income

(Dollars in millions)

Three Months Ended September 30,

Profit of consolidated and affiliated companies $ 2,299 $ 2,463

Other comprehensive income (loss), net of tax (Note 13):

Foreign currency translation ( 30 ) 397

Pension and other postretirement benefits — ( 3 )

Derivative financial instruments ( 21 ) 58

Available-for-sale securities 12 61

Total other comprehensive income (loss), net of tax ( 39 ) 513

Comprehensive income 2,260 2,976

comprehensive income (loss) attributable to the noncontrolling interests ( 1 ) ( 1 )

Comprehensive income attributable to shareholders $ 2,261 $ 2,977

See accompanying notes to Consolidated Financial Statements.

Caterpillar Inc.

Consolidated Statement of Results of Operations

(Dollars in millions except per share data)

Nine Months Ended September 30,

Three Months Ended March 31,

Sales and revenues:

Sales of Machinery, Energy & Transportation $ 45,778 $ 46,031

Sales of Machinery, Power & Energy $ 16,473 $ 13,378

Revenues of Financial Products 942 871

28 unchanged sentences

(Dollars in millions)

Nine Months Ended September 30,

Three Months Ended March 31,

Profit of consolidated and affiliated companies $ 2,548 $ 2,003

12 unchanged sentences

(Dollars in millions)

September 30,

2026 December 31,

24 unchanged sentences

Long-term debt due within one year:

Machinery, Energy & Transportation 32 46

Machinery, Power & Energy 35 35

Financial Products 7,660 7,085

1 unchanged sentence

Long-term debt due after one year:

Machinery, Energy & Transportation 10,669 8,564

Machinery, Power & Energy 10,671 10,678

Financial Products 19,971 20,018

27 unchanged sentences

interests Total

Three Months Ended September 30, 2024

Balance at June 30, 2024 $ 5,517 $ ( 41,612 ) $ 55,455 $ ( 2,230 ) $ 6 $ 17,136

Profit (loss) of consolidated and affiliated companies — — 2,464 — ( 1 ) 2,463

Foreign currency translation, net of tax — — — 397 — 397

Pension and other postretirement benefits, net of tax — — — ( 3 ) — ( 3 )

Derivative financial instruments, net of tax — — — 58 — 58

Available-for-sale securities, net of tax — — — 61 — 61

Dividends declared — — 1 — — 1

Common shares issued from treasury stock for stock-based compensation:

( 4 ) 10 — — — 6

Stock-based compensation expense 52 — — — — 52

Common shares repurchased:

— ( 782 ) — — — ( 782 )

Other 19 ( 6 ) — — 1 14

Balance at September 30, 2024 $ 5,584 $ ( 42,390 ) $ 57,920 $ ( 1,717 ) $ 6 $ 19,403

Three Months Ended September 30, 2025

Balance at June 30, 2025 $ 6,143 $ ( 47,958 ) $ 62,160 $ ( 1,684 ) $ 2 $ 18,663

Profit (loss) of consolidated and affiliated companies — — 2,300 — ( 1 ) 2,299

Foreign currency translation, net of tax — — — ( 30 ) — ( 30 )

Pension and other postretirement benefits, net of tax — — — — — —

Derivative financial instruments, net of tax — — — ( 21 ) — ( 21 )

Available-for-sale securities, net of tax — — — 12 — 12

Common shares issued from treasury stock for stock-based compensation:

— 19 — — — 19

Stock-based compensation expense 71 — — — — 71

Common shares repurchased:

— ( 362 ) — — — ( 362 )

Other 9 ( 1 ) — — — 8

Balance at September 30, 2025 $ 6,223 $ ( 48,302 ) $ 64,460 $ ( 1,723 ) $ 1 $ 20,659

1 See Note 12 for additional information.

See accompanying notes to Consolidated Financial Statements.

Caterpillar Inc.

Consolidated Statement of Changes in Shareholders’ Equity

(Dollars in millions)

stock Treasury

business Accumulated

comprehensive

income (loss) Noncontrolling

interests Total

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Balance at December 31, 2024 $ 6,941 $ ( 44,331 ) $ 59,352 $ ( 2,471 ) $ 3 $ 19,494

5 unchanged sentences

Dividends declared — — 1 — — 1

— — ( 1,331 ) — — ( 1,331 )

Common shares issued from treasury stock for stock-based compensation:

5 unchanged sentences

Other 10 ( 25 ) — — — ( 15 )

Balance at September 30, 2024 $ 5,584 $ ( 42,390 ) $ 57,920 $ ( 1,717 ) $ 6 $ 19,403

Nine Months Ended September 30, 2025

Balance at March 31, 2025 $ 6,043 $ ( 47,127 ) $ 61,356 $ ( 2,205 ) $ 3 $ 18,070

Three Months Ended March 31, 2026

Balance at December 31, 2025 $ 7,181 $ ( 49,539 ) $ 65,448 $ ( 1,772 ) $ — $ 21,318

1 unchanged sentence

Foreign currency translation, net of tax — — — ( 47 ) — ( 47 )

Pension and other postretirement benefits, net of tax — — — ( 2 ) — ( 2 )

Derivative financial instruments, net of tax — — — ( 40 ) — ( 40 )

Available-for-sale securities, net of tax — — — ( 22 ) — ( 22 )

Dividends declared 1

— — ( 1,374 ) — — ( 1,374 )

Common shares issued from treasury stock for stock-based compensation:

5 unchanged sentences

Other 6 ( 32 ) — — — ( 26 )

Balance at September 30, 2025 $ 6,223 $ ( 48,302 ) $ 64,460 $ ( 1,723 ) $ 1 $ 20,659

1 Dividends per share of common stock of $ 2.92 and $ 2.71 were declared in the nine months ended September 30, 2025 and 2024, respectively.

Balance at March 31, 2026 $ 5,852 $ ( 53,307 ) $ 67,997 $ ( 1,881 ) $ ( 1 ) $ 18,660

1 See Note 12 for additional information.

3 unchanged sentences

(Dollars in Millions)

Nine Months Ended September 30,

Three Months Ended March 31,

Cash flow from operating activities:

3 unchanged sentences

Provision (benefit) for deferred income taxes 534 ( 38 )

(Gain) loss on divestiture — 164

Other 509 221

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

25 unchanged sentences

Payments to purchase common stock ( 5,028 ) ( 3,660 )

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

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

- Machinery, Energy & Transportation 1,976 —

- Financial Products 3,908 2,633

Payments on debt (original maturities greater than three months):

- Machinery, Energy & Transportation ( 43 ) ( 1,021 )

- Machinery, Power & Energy ( 10 ) ( 27 )

- Financial Products ( 3,212 ) ( 1,770 )

10 unchanged sentences

Information in our financial statements and related commentary are presented in the following categories:

Machinery, Energy & Transportation (ME&T) — We define ME&T as Caterpillar Inc.

Machinery, Power & Energy (MP&E) — The company defines MP&E as Caterpillar Inc.

and its subsidiaries, excluding Financial Products.

ME&T’s information relates to the design, manufacturing and marketing of our products.

Financial Products — We define Financial Products as our finance and insurance subsidiaries, primarily Caterpillar Financial Services Corporation (Cat Financial) and Caterpillar Insurance Holdings Inc.

MP&E’s information relates to the design, manufacturing and marketing of its products.

Financial Products — The company defines Financial Products as our finance and insurance subsidiaries, primarily Caterpillar Financial Services Corporation (Cat Financial) and Caterpillar Insurance Holdings Inc.

(Insurance Services).

1 unchanged sentence

Basis of presentation

In the opinion of management, the accompanying unaudited financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of (a) the consolidated results of operations for the three and nine months ended September 30, 2025 and 2024, (b) the consolidated comprehensive income for the three and nine months ended September 30, 2025 and 2024, (c) the consolidated financial position at September 30, 2025 and December 31, 2024, (d) the consolidated changes in shareholders’ equity for the three and nine months ended September 30, 2025 and 2024 and (e) the consolidated cash flow for the nine months ended September 30, 2025 and 2024.

In the opinion of management, the accompanying unaudited financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of (a) the consolidated results of operations for the three months ended March 31, 2026 and 2025, (b) the consolidated comprehensive income for the three months ended March 31, 2026 and 2025, (c) the consolidated financial position at March 31, 2026 and December 31, 2025, (d) the consolidated changes in shareholders’ equity for the three months ended March 31, 2026 and 2025 and (e) the consolidated cash flow for the three months ended March 31, 2026 and 2025.

The financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (U.S.

8 unchanged sentences

See Note 11 for further discussions on a consolidated VIE.

Long-term receivables - trade and other in the Statement of Financial Position includes $ 850 million and $ 377 million at March 31, 2026 and December 31, 2025, respectively, for recoveries from over-payments made during the importation process.

Current assets:

Receivables - trade and other includes $ 154 million at March 31, 2026.

There were no amounts included in Current assets:

Receivables - trade and other at December 31, 2025.

On February 20, 2026, the U.S.

Supreme Court ruled that tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”) on goods imported into the United States were unauthorized.

As of March 31, 2026, total IEEPA tariff costs were approximately $ 1.0 billion.

The ruling did not address potential refunds, and therefore the ultimate availability, timing and amount of any potential refunds of these tariffs is highly uncertain.

Based on the current facts and circumstances, we have determined that recovery of any funds is not probable.

We will continue to monitor developments related to U.S.

and foreign import and export policies that could impact our consolidated results of operations, financial position and cash flows.

New accounting guidance

3 unchanged sentences

Accounting standards issued but not yet adopted

Income tax reporting (ASU 2023-09) — In December 2023, the Financial Accounting Standards Board (FASB) issued accounting guidance to expand the annual disclosure requirements for income taxes, primarily related to the rate reconciliation and income taxes paid.

The expanded disclosures are effective for our year ending December 31, 2025, and can be applied prospectively or retrospectively.

We are in the process of evaluating the effect of this new guidance on the related disclosures.

Disaggregation of income statement expenses (ASU 2024-03) — In November 2024, the FASB issued accounting guidance to enhance transparency into the nature and function of income statement expenses.

Disaggregation of income statement expenses (ASU 2024-03) — In November 2024, the Financial Accounting Standards Board (FASB) issued accounting guidance to enhance transparency into the nature and function of income statement expenses.

The amendments require that, on an annual and interim basis, entities disclose disaggregated operating expense information about specific categories, including purchases of inventory, employee compensation, depreciation and amortization.

9 unchanged sentences

We recognize trade receivables from dealers and end users in Receivables – trade and other and Long-term receivables – trade and other in the Consolidated Statement of Financial Position.

Trade receivables from dealers and end users were $ 8,710 million, $ 7,864 million and $ 7,923 million as of September 30, 2025, December 31, 2024 and December 31, 2023, respectively.

Long-term trade receivables from dealers and end users were $ 741 million, $ 640 million and $ 589 million as of September 30, 2025, December 31, 2024 and December 31, 2023, respectively.

Trade receivables from dealers and end users were $ 9,558 million, $ 9,402 million and $ 7,864 million as of March 31, 2026, December 31, 2025 and December 31, 2024, respectively.

Long-term trade receivables from dealers and end users were $ 1,060 million, $ 1,006 million and $ 640 million as of March 31, 2026, December 31, 2025 and December 31, 2024, respectively.

For certain contracts, we invoice for payment when contractual milestones are achieved.

We recognize a contract asset when a sale is recognized before achieving the contractual milestones for invoicing.

We recognize a contract asset when a sale is recognized before achieving the contractual milestone for invoicing.

We reduce the contract asset when we invoice for payment and recognize a corresponding trade receivable.

Contract assets are included in Prepaid expenses and other current assets in the Consolidated Statement of Financial Position.

Contract assets were $ 217 million, $ 238 million and $ 246 million as of September 30, 2025, December 31, 2024 and December 31, 2023, respectively.

Contract assets were $ 233 million, $ 297 million and $ 238 million as of March 31, 2026, December 31, 2025 and December 31, 2024, respectively.

We invoice in advance of recognizing the sale of certain products.

We recognize advanced customer payments as a contract liability in Customer advances and Other liabilities in the Consolidated Statement of Financial Position.

Contract liabilities were $ 4,423 million, $ 2,745 million and $ 2,389 million as of September 30, 2025, December 31, 2024 and December 31, 2023, respectively.

Contract liabilities were $ 6,032 million, $ 4,678 million and $ 2,745 million as of March 31, 2026, December 31, 2025 and December 31, 2024, respectively.

We reduce the contract liability when revenue is recognized.

During the three and nine months ended September 30, 2025, we recognized $ 351 million and $ 1,496 million, respectively, of revenue that was recorded as a contract liability at the beginning of 2025.

During the three and nine months ended September 30, 2024, we recognized $ 222 million and $ 1,395 million, respectively, of revenue that was recorded as a contract liability at the beginning of 2024.

During the three months ended March 31, 2026 and 2025, we recognized $ 760 million and $ 683 million, respectively, of revenue that was recorded as a contract liability at the beginning of 2026 and 2025.

We provide discounts to dealers through merchandising programs.

4 unchanged sentences

If discounts paid differ from those estimated, we report the difference as a change in the transaction price in the subsequent period when the final discount is paid.

As a result of differences between actual and estimated payments and changes in estimates, we recognized a decrease in revenue of $ 61 million and $ 515 million during the three and nine months ended September 30, 2025, respectively, related to prior period sales.

The change in revenue during the three and nine months ended September 30, 2024 related to prior periods sales was inconsequential.

Generally, we estimate the cost of these discounts for each product by model by geographic region based on historical experience and changes in merchandising programs known as of the period end financial reporting date.

Products sold to dealers in a prior period

that remained in dealer inventory during 2025 were subject to merchandising program actions taken in 2025 which resulted in higher discounts paid in the current year.

As of September 30, 2025, we have entered into contracts with dealers and end users for which sales have not been recognized as we have not satisfied our performance obligations and transferred control of the products.

The dollar amount of unsatisfied performance obligations for contracts with an original duration greater than one year is $ 22.5 billion, with about one-half of the amount expected to be completed and revenue recognized in the twelve months following September 30, 2025.

The change in revenue during the three months ended March 31, 2026 and 2025 related to prior periods sales was inconsequential.

As of March 31, 2026, we have entered into contracts with dealers and end users for which sales have not been recognized as we have not satisfied our performance obligations and transferred control of the products.

The dollar amount of unsatisfied performance obligations for contracts with an original duration greater than one year is $ 37.1 billion, with about one-third of the amount expected to be completed and revenue recognized in the twelve months following March 31, 2026.

We have elected the practical expedient not to disclose unsatisfied performance obligations with an original contract duration of one year or less.

4 unchanged sentences

Our stock-based compensation consists of stock options, restricted stock units (RSUs) and performance-based restricted stock units (PRSUs).

We recognized pretax stock-based compensation expense of $ 71 million and $ 202 million for the three and nine months ended September 30, 2025, respectively, and $ 52 million and $ 171 million for the three and nine months ended September 30, 2024, respectively.

The following table illustrates the type and fair value of the stock-based compensation awards granted during the nine months ended September 30, 2025 and 2024, respectively:

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

We recognized pretax stock-based compensation expense of $ 54 million and $ 45 million for the three months ended March 31, 2026 and 2025, respectively.

The following table illustrates the type and fair value of the stock-based compensation awards granted during the three months ended March 31, 2026 and 2025, respectively:

Three Months Ended March 31, 2026 Three Months Ended March 31, 2025

Shares Granted Weighted-Average Fair Value Per Share Shares Granted Weighted-Average Fair Value Per Share

3 unchanged sentences

The fair value of our stock options was estimated using the Black-Scholes option-pricing model.

The following table provides the assumptions used in determining the fair value of the stock-options granted in the nine months ended September 30, 2025 and 2024, respectively:

The following table provides the assumptions used in determining the fair value of the stock-options granted in the three months ended March 31, 2026 and 2025, respectively:

Weighted-average dividend yield 1.82 % 2.13 %

6 unchanged sentences

The PRSUs granted in 2026 and 2025 contain a market condition and a Monte Carlo simulation was utilized to estimate the fair value of the awards.

The following table provides the assumptions used in determining the fair value of the PRSUs granted in the nine months ended September 30, 2025 and 2024, respectively:

The following table provides the assumptions used in determining the fair value of the PRSUs granted in the three months ended March 31, 2026 and 2025, respectively:

Expected volatility of the Company's stock 36.7 % 29.5 %

Risk-free interest rate 3.46 % 3.90 %

As of September 30, 2025, the total remaining unrecognized compensation expense related to nonvested stock-based compensation awards was $ 229 million, which will be amortized over the weighted-average remaining requisite service periods of approximately 2.0 years.

As of March 31, 2026, the total remaining unrecognized compensation expense related to nonvested stock-based compensation awards was $ 402 million, which will be amortized over the weighted-average remaining requisite service periods of approximately 2.0 years.

Derivative financial instruments and risk management

Our earnings and cash flow are subject to fluctuations due to changes in foreign currency exchange rates, interest rates, commodity prices, and certain deferred compensation plan liabilities.

Our Risk Management Policy (policy) allows for the use of derivative financial instruments to prudently manage foreign currency exchange rate, interest rate, commodity price and certain deferred compensation plan liability exposures.

Our Risk Management Policy allows for the use of derivative financial instruments to prudently manage foreign currency exchange rate, interest rate, commodity price and certain deferred compensation plan liability exposures.

Our policy specifies that derivatives are not to be used for speculative purposes.

2 unchanged sentences

We present at least annually to the Audit Committee of the Board of Directors on our risk management practices, including our use of financial derivative instruments.

We recognize all derivatives at their fair value on the Consolidated Statement of Financial Position.

We recognize all derivatives at their fair value in the Consolidated Statement of Financial Position.

On the date the derivative contract is entered into, we designate the derivative as (1) a hedge of the fair value of a recognized asset or liability (fair value hedge), (2) a hedge of a forecasted transaction or the variability of cash flow (cash flow hedge) or (3) an undesignated instrument.

1 unchanged sentence

For foreign exchange contracts designated as fair value hedges, the interim settlements are excluded from the effectiveness assessment and are recognized under a systematic and rational method over the life of the hedging instrument within Interest expense.

We record in AOCI changes in the fair value of a derivative that is qualified, designated and highly effective as a cash flow hedge, to the extent effective, on the Consolidated Statement of Financial Position until we reclassify them to earnings in the same period or periods during which the hedged transaction affects earnings.

We record in AOCI changes in the fair value of a derivative that is qualified, designated and highly effective as a cash flow hedge, to the extent effective, in the Consolidated Statement of Financial Position until we reclassify them to earnings in the same period or periods during which the hedged transaction affects earnings.

We report changes in the fair value of undesignated derivative instruments in current earnings.

We classify cash flows from designated derivative financial instruments within the same category as the item being hedged on the Consolidated Statement of Cash Flow.

We include cash flows from undesignated derivative financial instruments in the investing category on the Consolidated Statement of Cash Flow.

We classify cash flows from designated derivative financial instruments within the same category as the item being hedged in the Consolidated Statement of Cash Flow.

We include cash flows from undesignated derivative financial instruments in the investing category in the Consolidated Statement of Cash Flow.

We formally document all relationships between hedging instruments and hedged items, as well as the risk-management objective and strategy for undertaking various hedge transactions.

This process includes linking all derivatives that are designated as fair value hedges to specific assets and liabilities on the Consolidated Statement of Financial Position and linking cash flow hedges to specific forecasted transactions or variability of cash flow.

This process includes linking all derivatives that are designated as fair value hedges to specific assets and liabilities in the Consolidated Statement of Financial Position and linking cash flow hedges to specific forecasted transactions or variability of cash flow.

We also formally assess, both at the hedge’s inception and on an ongoing basis, whether the designated derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flow of hedged items.

5 unchanged sentences

Additionally, we have balance sheet positions denominated in foreign currencies, thereby creating exposure to movements in exchange rates.

Our ME&T operations purchase, manufacture and sell products in many locations around the world.

Our MP&E operations purchase, manufacture and sell products in many locations around the world.

As we have a diversified revenue and cost base, we manage our future foreign currency cash flow exposure on a net basis.

3 unchanged sentences

Our policy allows for managing anticipated foreign currency cash flow for up to approximately five years .

As of September 30, 2025, the maximum term of these outstanding contracts at inception was approximately 60 months.

As of March 31, 2026, the maximum term of these outstanding contracts at inception was approximately 60 months.

We generally designate as cash flow hedges at inception of the contract any foreign currency forward or option contracts that meet the requirements for hedge accounting and the maturity extends beyond the current quarter-end.

We perform designation on a specific exposure basis to support hedge accounting.

The remainder of ME&T foreign currency contracts are undesignated.

The remainder of MP&E foreign currency contracts are undesignated.

In managing foreign currency risk for our Financial Products operations, our objective is to minimize earnings volatility resulting from conversion and the remeasurement of net foreign currency balance sheet positions and future transactions denominated in foreign currencies.

6 unchanged sentences

Our practice is to use interest rate contracts to manage our exposure to interest rate changes.

Our ME&T operations generally use fixed-rate debt as a source of funding.

Our MP&E operations generally use fixed-rate debt as a source of funding.

Our objective is to minimize the cost of borrowed funds.

7 unchanged sentences

We designate most floating-to-fixed interest rate contracts as cash flow hedges to protect against the variability of cash flows due to changes in the benchmark interest rate.

We have, at certain times, liquidated fixed-to-floating and floating-to-fixed interest rate contracts at both ME&T and Financial Products.

We amortize the gains or losses associated with these contracts at the time of liquidation into earnings over the remaining term of the previously designated hedged item.

If we liquidate fixed-to-floating or floating-to-fixed interest rate contracts at MP&E or Financial Products, we amortize any deferred gains or losses into earnings over the remaining term of the previously hedged item.

Commodity price risk

1 unchanged sentence

Our policy is to use commodity forward and option contracts to manage the commodity risk and reduce the cost of purchased materials.

Our ME&T operations purchase base and precious metals embedded in the components we purchase from suppliers.

Our MP&E operations purchase base and precious metals embedded in the components we purchase from suppliers.

Our suppliers pass on to us price changes in the commodity portion of the component cost.

9 unchanged sentences

(Millions of dollars) Fair Value

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Liabilities 2

11 unchanged sentences

2 Liabilities are classified as Accrued expenses or Other liabilities.

The total notional amounts of the derivative instruments as of September 30, 2025 and December 31, 2024 were $ 28.8 billion and $ 27.0 billion, respectively.

The total notional amounts of the derivative instruments as of March 31, 2026 and December 31, 2025 were $ 30.3 billion and $ 29.3 billion, respectively.

The notional amounts of the derivative financial instruments do not represent amounts exchanged by the parties.

1 unchanged sentence

Gains (losses) on derivative instruments are categorized as follows:

(Millions of dollars) Three Months Ended September 30,

Gains (Losses) Recognized on the Consolidated Statement of Results of Operations 1

Gains (Losses) Recognized in AOCI Gains (Losses) Reclassified from AOCI 2

2025 2024 2025 2024 2025 2024

Cash Flow Hedges

Foreign exchange contracts $ — $ — $ ( 46 ) $ 26 $ ( 17 ) $ ( 70 )

Interest rate contracts — — 2 ( 9 ) 2 9

Fair Value Hedges

Foreign exchange contracts — — ( 3 ) — ( 4 ) —

Interest rate contracts ( 20 ) ( 41 ) — — — —

Undesignated Hedges

Foreign exchange contracts 18 ( 35 ) — — — —

Commodity contracts 11 1 — — — —

Total return swap contracts 53 40 — — — —

Total $ 62 $ ( 35 ) $ ( 47 ) $ 17 $ ( 19 ) $ ( 61 )

1 Foreign exchange contract, Commodity contract and Total return swap contract gains (losses) are included in Other income (expense).

Interest rate contract gains (losses) are included in Interest expense of Financial Products and Interest expense excluding Financial Products.

2 Foreign exchange contract gains (losses) are primarily included in Other income (expense).

Interest rate contract gains (losses) are primarily included in Interest expense of Financial Products.

(Millions of dollars) Nine Months Ended September 30,

Gains (Losses) Recognized on the Consolidated Statement of Results of Operations 1

(Millions of dollars) Three Months Ended March 31,

Gains (Losses) Recognized in the Consolidated Statement of Results of Operations 1

Gains (Losses) Recognized in AOCI Gains (Losses) Reclassified from AOCI 2

15 unchanged sentences

Interest rate contract gains (losses) are primarily included in Interest expense of Financial Products.

The following amounts were recorded on the Consolidated Statement of Financial Position related to cumulative basis adjustments for fair value hedges:

The following amounts were recorded in the Consolidated Statement of Financial Position related to cumulative basis adjustments for fair value hedges:

(Millions of dollars) Carrying Value of the Hedged Liabilities Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Value of the Hedged Liabilities

September 30, 2025 December 31, 2024 September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025 March 31, 2026 December 31, 2025

Long-term debt due within one year $ 1,103 $ 602 $ 4 $ 3

1 unchanged sentence

Total $ 6,582 $ 6,115 $ ( 67 ) $ ( 34 )

We enter into International Swaps and Derivatives Association (ISDA) master netting agreements within ME&T and Financial Products that permit the net settlement of amounts owed under their respective derivative contracts.

We enter into International Swaps and Derivatives Association (ISDA) master netting agreements within MP&E and Financial Products that permit the net settlement of amounts owed under their respective derivative contracts.

Under these master netting agreements, net settlement generally permits the company or the counterparty to determine the net amount payable for contracts due on the same date and in the same currency for similar types of derivative transactions.

2 unchanged sentences

Collateral is typically not required of the counterparties or of our company under the master netting agreements.

As of September 30, 2025 and December 31, 2024, no cash collateral was received or pledged under the master netting agreements.

As of March 31, 2026 and December 31, 2025, no cash collateral was received or pledged under the master netting agreements.

The effect of the net settlement provisions of the master netting agreements on our derivative balances upon an event of default or termination event was as follows:

(Millions of dollars) September 30, 2025 December 31, 2024

(Millions of dollars) March 31, 2026 December 31, 2025

Assets Liabilities Assets Liabilities

3 unchanged sentences

Inventories (principally using the last-in, first-out (LIFO) method) were comprised of the following:

(Millions of dollars) September 30,

(Millions of dollars) March 31,

2026 December 31,

7 unchanged sentences

Intangible assets were comprised of the following:

September 30, 2025

March 31, 2026

(Millions of dollars) Gross

Amortization 1

Amount Accumulated

Amortization Net

Customer relationships $ 2,097 $ ( 1,909 ) $ 188

9 unchanged sentences

Total finite-lived intangible assets $ 2,608 $ ( 2,367 ) $ 241

1 For the nine months ended September 30, 2025, $ 235 million of intangible assets were fully amortized and have been removed.

Amortization expense for the three and nine months ended September 30, 2025 was $ 41 million and $ 128 million, respectively.

Amortization expense for the three and nine months ended September 30, 2024 was $ 44 million and $ 131 million, respectively.

During the first quarter of 2026, we acquired finite-lived intangible assets of $ 200 million due to the purchase of RPM Global.

See Note 22 for details on the acquisition.

Amortization expense for the three months ended March 31, 2026 and 2025 was $ 41 million and $ 44 million, respectively.

Amortization expense related to intangible assets is expected to be:

(Millions of dollars)

Remaining Three Months of 2025 2026 2027 2028 2029 Thereafter

Remaining Nine Months of 2026 2027 2028 2029 2030 Thereafter

$ 77 $ 60 $ 53 $ 50 $ 47 $ 132

No goodwill was impaired during the nine months ended September 30, 2025 or 2024.

The changes in carrying amount of goodwill by reportable segment for the nine months ended September 30, 2025 were as follows:

No goodwill was impaired during the three months ended March 31, 2026 or 2025.

The changes in carrying amount of goodwill by reportable segment for the three months ended March 31, 2026 were as follows:

(Millions of dollars) December 31,

2025 Acquisitions 3

Other Adjustments 1

September 30,

Construction Industries

6 unchanged sentences

Net goodwill 2,986 546 8 3,540

Energy & Transportation

Power & Energy

Goodwill 2,054 — ( 8 ) 2,046

Impairments ( 925 ) — ( 925 )

Net goodwill 2,014 40 2,054

Goodwill 39 — ( 1 ) 38

5 unchanged sentences

2 Includes All Other Segment (See Note 16).

3 See Note 22 - Acquisitions.

Investments in debt and equity securities

7 unchanged sentences

Available-for-sale debt securities

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

(Millions of dollars) Cost

13 unchanged sentences

Available-for-sale debt securities in an unrealized loss position:

September 30, 2025

March 31, 2026

Less than 12 months 1

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governmental agency 167 2 207 16 374 18

Residential — — 4 1 4 1

Commercial 48 1 86 2 134 3

11 unchanged sentences

governmental agency 3 — 307 15 310 15

Residential — — 1 1 1 1

Commercial 6 — 89 3 95 3

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We do not intend to sell the investments, and it is not likely that we will be required to sell the investments before recovery of their respective amortized cost basis.

In addition, we did not expect credit-related losses on these investments as of September 30, 2025.

The cost basis and fair value of available-for-sale debt securities at September 30, 2025, by contractual maturity, are shown below.

In addition, we did not expect credit-related losses on these investments as of March 31, 2026.

The cost basis and fair value of available-for-sale debt securities at March 31, 2026, by contractual maturity, are shown below.

Expected maturities will differ from contractual maturities because borrowers may have the right to prepay and creditors may have the right to call obligations.

September 30, 2025

March 31, 2026

(Millions of dollars) Cost Basis Fair Value

7 unchanged sentences

Total debt securities – available-for-sale $ 3,638 $ 3,621

For the three months ended September 30, 2025 and 2024, proceeds from available-for-sale debt securities were $ 323 million and $ 257 million, respectively.

For the nine months ended September 30, 2025 and 2024, proceeds from available-for-sale debt securities were $ 1,636 million and $ 917 million, respectively.

For the three months ended September 30, 2025 and 2024, the net unrealized gains (losses) for equity securities held at September 30, 2025 and 2024 were $ 9 million and $ 18 million, respectively.

For the nine months ended September 30, 2025 and 2024, the net unrealized gains (losses) for equity securities held at September 30, 2025 and 2024 were $ 36 million and $ 32 million, respectively.

For the three months ended March 31, 2026 and 2025, proceeds from available-for-sale debt securities were $ 344 million and $ 911 million, respectively.

Postretirement benefits

1 unchanged sentence

Postretirement

September 30, September 30, September 30,

March 31, March 31, March 31,

(Millions of dollars) 2026 2025 2026 2025 2026 2025

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$ ( 40 ) $ ( 27 ) $ ( 2 ) $ ( 1 ) $ 38 $ 44

For the nine months ended:

Components of net periodic benefit cost:

Service cost $ — $ — $ 35 $ 34 $ 47 $ 50

Interest cost 459 469 83 91 93 99

Expected return on plan assets ( 540 ) ( 524 ) ( 122 ) ( 127 ) ( 7 ) ( 6 )

Amortization of prior service cost (credit) — — — — ( 3 ) ( 10 )

Net periodic benefit cost (benefit) 1

$ ( 81 ) $ ( 55 ) $ ( 4 ) $ ( 2 ) $ 130 $ 133

1 The service cost component is included in Operating costs.

All other components are included in Other income (expense).

We made $ 47 million and $ 323 million of contributions to our pension and other postretirement plans during the three and nine months ended September 30, 2025, respectively.

We made $ 218 million of contributions to our pension and other postretirement plans during the three months ended March 31, 2026.

We currently anticipate full-year 2026 contributions of approximately $ 360 million.

1 unchanged sentence

Total company costs related to our defined contribution plans, which are included in Operating costs in the Consolidated Statement of Results of Operations, were as follows:

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(Millions of dollars) 2026 2025

$ 185 $ 168 $ 529 $ 506

Plans 35 32 103 94

$ 220 $ 200 $ 632 $ 600

1 Includes costs related to our non-qualified deferred compensation plans.

2 unchanged sentences

Revenues from finance and operating leases, primarily included in Revenues of Financial Products on the Consolidated Statement of Results of Operations, were as follows:

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(Millions of dollars) 2026 2025

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Under the guarantees, non-performance by the third-parties could require Caterpillar to satisfy the contractual obligation by providing goods, services or financial compensation.

The maximum potential amount of future payments (undiscounted and without reduction for any amounts possibly recoverable) that we could be required to make under the guarantees was $ 491 million and $ 368 million at September 30, 2025 and December 31, 2024, respectively.

The maximum potential amount of future payments (undiscounted and without reduction for any amounts possibly recoverable) that we could be required to make under the guarantees was $ 629 million and $ 458 million at March 31, 2026 and December 31, 2025, respectively.

We have dealer performance guarantees and third-party performance guarantees that do not limit potential payment to end users related to indemnities and other commercial contractual obligations.

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Cat Financial is the primary beneficiary of the SPC as its guarantees result in Cat Financial having both the power to direct the activities that most significantly impact the SPC’s economic performance and the obligation to absorb losses, and therefore Cat Financial has consolidated the financial statements of the SPC.

As of September 30, 2025 and December 31, 2024, the SPC’s assets of $ 1.1 billion and $ 1.14 billion, respectively, were primarily comprised of loans to dealers, and the SPC’s liabilities of $ 1.1 billion and $ 1.14 billion, respectively, were primarily comprised of commercial paper.

As of March 31, 2026 and December 31, 2025, the SPC’s assets of $ 1.18 billion and $ 1.19 billion, respectively, were primarily comprised of loans to dealers, and the SPC’s liabilities of $ 1.18 billion and $ 1.19 billion, respectively, were primarily comprised of commercial paper.

The assets of the SPC are not available to pay Cat Financial’s creditors.

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We develop specific rates for each product shipment month and update them monthly based on actual warranty claim experience.

The reconciliation of the change in our product warranty liability balances for the nine months ended September 30 was as follows:

Nine Months Ended September 30,

The reconciliation of the change in our product warranty liability balances for the three months ended March 31 was as follows:

Three Months Ended March 31,

(Millions of dollars) 2026 2025

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Computations of profit per share:

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(Dollars in millions except per share data) 2026 2025

5 unchanged sentences

Average common shares outstanding for fully diluted computation (C) 2

470.8 486.7 473.4 491.7

Profit per share of common stock:

2 unchanged sentences

$ 5.47 $ 4.20

Shares outstanding as of September 30, (in millions) 468.0 482.8

Shares outstanding as of March 31, (in millions) 460.6 471.0

1 Profit attributable to common shareholders.

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

For the three months ended September 30, 2025, there were no antidilutive stock options outstanding.

For the nine months ended September 30, 2025, we excluded 0.4 million of outstanding stock options from the computation of diluted earnings per share because the effect would have been antidilutive.

For both the three and nine months ended September 30, 2024, we excluded 0.3 million and 0.2 million of outstanding stock options, respectively, from the computation of diluted earnings per share because the effect would have been antidilutive.

For the three and nine months ended September 30, 2025, we repurchased 0.8 million and 11.0 million shares of Caterpillar common stock, respectively, at an aggregate cost of $ 0.4 billion and $ 4.0 billion, respectively.

For the three and nine months ended September 30, 2024, we repurchased 2.3 million and 18.2 million shares of Caterpillar common stock, respectively, at an aggregate cost of $ 0.8 billion and $ 6.1 billion, respectively.

For the three months ended March 31, 2026 and 2025, we excluded 0.1 million and 0.3 million of outstanding stock-based compensation awards, respectively, from the computation of diluted earnings per share because the effect would have been antidilutive.

For the three months ended March 31, 2026 and 2025, we repurchased 5.6 million and 7.5 million shares of Caterpillar common stock, respectively, at an aggregate cost of $ 3.7 billion and $ 2.8 billion, respectively.

We made these purchases through the combination of accelerated share repurchase (ASR) agreements with third-party financial institutions and open market transactions in 2026 and 2025.

7 unchanged sentences

Changes in the balances for each component of AOCI were as follows:

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(Millions of dollars) 2026 2025

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Ending balance $ ( 10 ) $ ( 32 )

Total AOCI ending balance at September 30,

Total AOCI ending balance at March 31,

$ ( 1,881 ) $ ( 2,205 )

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We believe there is no more than a remote chance that a material amount for remedial activities at any individual site, or at all the sites in the aggregate, will be required.

Our operations in Brazil are subject to highly complex labor, tax, customs and other laws.

While we believe that we are in compliance with such laws, we are periodically engaged in litigation regarding the application of these laws, including certain tax and customs disputes with federal, state and municipal authorities in Brazil relating to export activities associated with Caterpillar Brasil Ltda.

The Company is unable to predict the outcome or reasonably estimate any potential losses;

however, we currently believe that any matters raised will not have a material adverse effect on the Company’s consolidated results of operations, financial position or liquidity.

In addition, we are involved in other unresolved legal actions that arise in the normal course of business.

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Although it is not possible to predict with certainty the outcome of these unresolved legal actions, we believe that these actions will not individually or in the aggregate have a material adverse effect on our consolidated results of operations, financial position or liquidity.

Our operations in Brazil are subject to highly complex labor, tax, customs and other laws.

The Company is unable to predict the outcome or reasonably estimate any potential losses;

however, we currently believe that any matters raised will not have a material adverse effect on the Company’s consolidated results of operations, financial position or liquidity.

The effective tax rate for the three months ended September 30, 2025 was 26.7 percent compared to 20.7 percent for the three 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.

The effective tax rate for the three and nine months ended September 30, 2025 was negatively impacted by a change in tax incentives resulting from 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 provision for income taxes for the three and nine months ended September 30, 2025 included a tax charge of $ 41 million, compared to tax benefits of $ 47 million in the three and nine months ended September 30, 2024, to reflect changes in estimates related to prior years.

The effective tax rate for the three months ended March 31, 2026 was 20.9 percent compared to 22.3 percent for the three months ended March 31, 2025.

A tax benefit of $ 68 million was recorded in the first quarter of 2026, compared with a $ 17 million benefit in the first quarter of 2025, for the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S.

GAAP compensation expense.

Segment information

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As such, the CEO serves as our Chief Operating Decision Maker (CODM), and operating segments are primarily based on the Group President/CFO reporting structure.

Three of our operating segments, Construction Industries, Resource Industries and Energy & Transportation are led by Group Presidents.

Three of our operating segments, Power & Energy, Construction Industries, and Resource Industries are led by Group Presidents.

One operating segment, Financial Products, is led by the CFO who also has responsibility for Corporate Services.

3 unchanged sentences

The Law, Security and Public Policy Division and the Human Resources Organization are cost centers and do not meet the definition of an operating segment.

Effective January 1, 2026, we made the following change to segment reporting.

The change was made to reflect change in organizational accountabilities and refinements to our internal reporting.

• Responsibility for business strategy, product design, product management and development, manufacturing, marketing and sales and product support for diesel-electric, hybrid and battery-electric locomotives and components and other rail-related products and services, including remanufacturing and leasing moved from Power & Energy to Resource Industries.

Effective July 1, 2025, we made the following changes to segment reporting.

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Following is a brief description of our reportable segments and the business activities included in the All Other Segment:

Power & Energy :

A segment primarily responsible for supporting customers using reciprocating engines, turbines and related services across industries serving Power Generation, Oil and Gas and Industrial applications, including marine applications and product support of on-highway engines.

Responsibilities include business strategy, product design, product management, development and testing, manufacturing, marketing and sales and product support.

The product and services portfolio includes turbines, centrifugal gas compressors, and turbine-related services;

reciprocating engine-powered generator sets;

integrated systems and solutions used in the electric power generation industry;

reciprocating engines, drivetrain and integrated systems and solutions for the oil and gas industry;

reciprocating engines, drivetrain and integrated systems and solutions supplied to the industrial industry as well as Caterpillar machines;

and electrified powertrain and zero-emission power sources and service solutions.

Responsibilities also include the remanufacturing of Caterpillar reciprocating engines and engine and machine components and remanufacturing services for other companies.

Inter-segment sales are a source of revenue for this segment.

Construction Industries :

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Resource Industries :

A segment primarily responsible for supporting customers using machinery in mining, heavy construction and quarry and aggregates.

A segment primarily responsible for supporting customers using machinery in mining, heavy construction and quarry and aggregates as well as customers using locomotives and rail-related products and services.

Responsibilities include business strategy, product design, product management and development, manufacturing, marketing and sales and product support.

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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.

diesel-electric, hybrid and battery-electric locomotives and components and other rail-related products and services, including remanufacturing and leasing.

In addition, Resource Industries 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.

Inter-segment sales are a source of revenue for this segment.

Energy & Transportation :

A segment primarily responsible for supporting customers using reciprocating engines, turbines, diesel-electric locomotives and related services across industries serving Oil and Gas, Power Generation, Industrial and Transportation applications, including marine- and rail-related businesses as well as product support of on-highway engines.

Responsibilities include business strategy, product design, product management, development and testing, manufacturing, marketing and sales and product support.

The product and services portfolio includes turbines, centrifugal gas compressors, and turbine-related services;

reciprocating engine-powered generator sets;

integrated systems and solutions used in the electric power generation industry;

reciprocating engines, drivetrain and integrated systems and solutions for the marine and oil and gas industries;

reciprocating engines, drivetrain and integrated systems and solutions supplied to the industrial industry as well as Caterpillar machines;

electrified powertrain and zero-emission power sources and service solutions development;

and diesel-electric and hybrid locomotives and components and other rail-related products and services, including remanufacturing and leasing.

Responsibilities also include the remanufacturing of Caterpillar reciprocating engines and components and remanufacturing services for other companies.

Inter-segment sales are a source of revenue for this segment.

Financial Products Segment :

Provides financing alternatives to customers and dealers around the world for Caterpillar products and services, as well as financing for power generation facilities that, in most cases, incorporate Caterpillar products.

Provides financing alternatives to customers and dealers around the world for Caterpillar products and services, as well as financing for power generation facilities that incorporate Caterpillar products.

Financing plans include operating and finance leases, revolving charge accounts, installment sale contracts, repair/rebuild financing, working capital loans and wholesale financing plans.

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The various forms of financing, insurance and risk management products offered to customers and dealers help support the purchase and lease of Caterpillar equipment.

The segment also earns revenues from Machinery, Energy & Transportation, but the related costs are not allocated to operating segments.

The segment also earns revenues from Machinery, Power & Energy, but the related costs are not allocated to operating segments.

Financial Products’ segment profit is determined on a pretax basis and includes other income/expense items.

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Segment measurement and reconciliations

We determine the segment profit of Construction Industries, Resource Industries, Energy & Transportation and our All Other Segment on a pretax basis and exclude most interest expense and certain other income (expense) items.

We determine the segment profit of Power & Energy, Construction Industries, Resource Industries, and our All Other Segment on a pretax basis and exclude most interest expense and certain other income (expense) items.

We determine Financial Products Segment profit on a pretax basis and include other income (expense) items.

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The CODM uses segment profit to support the allocation of resources predominantly in the annual budget and forecasting process.

Additionally, the CODM monitors forecast-to-actual variances, focusing on areas where performance deviates from

expectations, when evaluating the performance of each segment and making decisions about allocating capital and other resources to each segment.

Additionally, the CODM monitors forecast-to-actual variances, focusing on areas where performance deviates from expectations, when evaluating the performance of each segment and making decisions about allocating capital and other resources to each segment.

There are several methodology differences between our segment reporting and our external reporting.

The following is a list of the more significant methodology differences:

• For Construction Industries, Resource Industries, Energy & Transportation and our All Other Segment net assets generally include inventories, receivables, property, plant and equipment, goodwill, intangibles, accounts payable and customer advances.

• For Power & Energy, Construction Industries, Resource Industries, and our All Other Segment net assets generally include inventories, receivables, property, plant and equipment, goodwill, intangibles, accounts payable and customer advances.

We generally manage at the corporate level liabilities other than accounts payable and customer advances, and we do not include these in segment operations.

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For example, we report certain costs on the cash basis for segment reporting and the accrual basis for consolidated external reporting.

The three and nine months ended September 30, 2025 and 2024, sales and revenues by geographic region reconciled to consolidated sales and revenues were as follows:

Sales and Revenues by Geographic Region

(Millions of dollars) North

External Sales and Revenues Intersegment Sales and Revenues Total Sales and Revenues

Three Months Ended September 30, 2025

Construction Industries $ 3,912 $ 654 $ 1,217 $ 904 $ 6,687 $ 73 $ 6,760

Resource Industries 1,152 543 541 799 3,035 75 3,110

Energy & Transportation 4,045 559 1,367 1,088 7,059 1,338 8,397

Financial Products Segment 722 118 130 106 1,076 1

Total sales and revenues from reportable segments 9,831 1,874 3,255 2,897 17,857 1,486 19,343

All Other Segment 5 — 2 3 10 63 73

Corporate Items and Eliminations ( 155 ) ( 24 ) ( 26 ) ( 24 ) ( 229 ) ( 1,549 ) ( 1,778 )

Total Sales and Revenues $ 9,681 $ 1,850 $ 3,231 $ 2,876 $ 17,638 $ — $ 17,638

Three Months Ended September 30, 2024

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

Resource Industries 1,141 499 444 870 2,954 94 3,048

Energy & Transportation 3,214 449 1,486 856 6,005 1,182 7,187

Financial Products Segment 695 97 130 112 1,034 1

Total sales and revenues from reportable segments 8,679 1,703 3,210 2,713 16,305 1,309 17,614

All Other Segment 1 ( 1 ) 1 7 8 64 72

Corporate Items and Eliminations ( 135 ) ( 24 ) ( 12 ) ( 36 ) ( 207 ) ( 1,373 ) ( 1,580 )

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

1 Includes revenues from Construction Industries, Resource Industries, Energy & Transportation and All Other Segment of $ 187 million and $ 190 million in the three months ended September 30, 2025 and 2024, respectively.

The three months ended March 31, 2026 and 2025, sales and revenues by geographic region reconciled to consolidated sales and revenues were as follows:

Sales and Revenues by Geographic Region

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External Sales and Revenues Intersegment Sales and Revenues Total Sales and Revenues

Nine Months Ended September 30, 2025

Three Months Ended March 31, 2026

Power & Energy $ 3,500 $ 278 $ 1,141 $ 794 $ 5,713 $ 1,318 $ 7,031

Construction Industries 4,292 650 1,199 961 7,102 59 7,161

Resource Industries 1,836 572 560 742 3,710 87 3,797

Energy & Transportation 10,963 1,422 3,883 2,749 19,017 3,784 22,801

Financial Products Segment 741 111 133 111 1,096 1

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Total Sales and Revenues $ 10,230 $ 1,592 $ 3,008 $ 2,585 $ 17,415 $ — $ 17,415

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Power & Energy $ 2,625 $ 326 $ 1,026 $ 677 $ 4,654 $ 1,129 $ 5,783

Construction Industries 2,904 504 867 869 5,144 40 5,184

Resource Industries 1,610 606 510 860 3,586 75 3,661

Energy & Transportation 9,473 1,296 4,201 2,602 17,572 3,633 21,205

Financial Products Segment 682 99 122 104 1,007 1

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Total Sales and Revenues $ 7,738 $ 1,515 $ 2,506 $ 2,490 $ 14,249 $ — $ 14,249

1 Includes revenues from Construction Industries, Resource Industries, Energy & Transportation and All Other Segment of $ 522 million and $ 547 million in the nine months ended September 30, 2025 and 2024, respectively.

For the three and nine months ended September 30, 2025 and 2024, Energy & Transportation external sales by end user application were as follows:

Energy & Transportation External Sales

Three Months Ended September 30, Nine Months Ended September 30,

1 Includes revenues from Power & Energy, Construction Industries, Resource Industries, and All Other Segment of $ 183 million and $ 163 million in the three months ended March 31, 2026 and 2025, respectively.

For the three months ended March 31, 2026 and 2025, Power & Energy external sales by end user application were as follows:

Power & Energy External Sales

Three Months Ended March 31,

(Millions of dollars) 2026 2025

Oil and gas $ 1,979 $ 1,656 $ 5,104 $ 5,053

Power Generation $ 2,817 $ 1,996

Oil and Gas 1,423 1,258

Industrial 1,473 1,400

Transportation 1,369 1,310 3,772 3,943

Energy & Transportation External Sales $ 7,059 $ 6,005 $ 19,017 $ 17,572

Profit from Reportable Segments

(Millions of dollars) Construction Industries Resource Industries Energy & Transportation Financial Products Segment Total from Reportable Segments

Three Months Ended September 30, 2025

Sales and revenues $ 6,760 $ 3,110 $ 8,397 $ 1,076 $ 19,343

Cost of goods sold 4,874 2,244 5,895 — 13,013

472 379 807 215 1,873

Other segment items 3

37 ( 12 ) 17 620 662

Segment Profit $ 1,377 $ 499 $ 1,678 $ 241 $ 3,795

Three Months Ended September 30, 2024

Sales and revenues $ 6,345 $ 3,048 $ 7,187 $ 1,034 $ 17,614

Cost of goods sold 4,349 2,056 4,897 — 11,302

483 369 836 193 1,881

Other segment items 3

27 4 21 595 647

Segment Profit $ 1,486 $ 619 $ 1,433 $ 246 $ 3,784

1 The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

Inter-segment income/expenses are included within the amounts shown.

2 Includes selling, general and administrative (SG&A) and research and development (R&D) expenses.

The combined presentation aligns with the segment-level information that is regularly provided to the CODM.

3 Other segment items for each reportable segment primarily includes:

Construction Industries / Resource Industries / Energy & Transportation – other operating (income) expenses, currency impacts defined as a methodology difference between exchange rates used in U.S.

GAAP and segment reporting, and equity in (profit) loss of unconsolidated affiliated companies.

Financial Products Segment – interest expense, Cat Financial’s depreciation on equipment leased to others, Insurance Services’ underwriting expenses and investment and interest income, and foreign exchange (gains) losses.

Power & Energy External Sales $ 5,713 $ 4,654

For the three months ended March 31, 2026 and 2025, Resource Industries external sales by industry were as follows:

Resource Industries External Sales

Three Months Ended March 31,

(Millions of dollars) 2026 2025

Mining, HC and Q&A* $ 2,954 $ 2,842

Resource Industries External Sales $ 3,710 $ 3,586

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

Profit from Reportable Segments

(Millions of dollars) Construction Industries Resource Industries Energy & Transportation Financial Products Segment Total from Reportable Segments

Nine Months Ended September 30, 2025

(Millions of dollars) Power & Energy Construction Industries Resource Industries Financial Products Segment Total from Reportable Segments

Three Months Ended March 31, 2026

Sales and revenues $ 7,031 $ 7,161 $ 3,797 $ 1,096 $ 19,085

4 unchanged sentences

Segment Profit $ 1,450 $ 1,535 $ 378 $ 245 $ 3,608

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Sales and revenues $ 5,783 $ 5,184 $ 3,661 $ 1,007 $ 15,635

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3 Other segment items for each reportable segment primarily includes:

Construction Industries / Resource Industries / Energy & Transportation – other operating (income) expenses, currency impacts defined as a methodology difference between exchange rates used in U.S.

Power & Energy / Construction Industries / Resource Industries – other operating (income) expenses, currency impacts defined as a methodology difference between exchange rates used in U.S.

GAAP and segment reporting, and equity in (profit) loss of unconsolidated affiliated companies.

1 unchanged sentence

Reconciliation of Consolidated profit before taxes:

(Millions of dollars) Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

(Millions of dollars) Three Months Ended March 31,

Total profit from reportable segments $ 3,608 $ 3,150

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Reconciliation of Assets:

(Millions of dollars) September 30, 2025 December 31, 2024

(Millions of dollars) March 31, 2026 December 31, 2025

Assets from reportable segments:

Power & Energy $ 7,996 $ 8,438

Construction Industries 6,425 5,442

Resource Industries 9,578 9,036

Energy & Transportation 11,368 11,772

Financial Products Segment 41,385 41,476

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(Millions of dollars)

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Three Months Ended March 31,

Depreciation and amortization from reportable segments:

Power & Energy $ 146 $ 116

Construction Industries 68 63

Resource Industries 100 97

Energy & Transportation 168 146 477 426

Financial Products Segment 186 178

7 unchanged sentences

(Millions of dollars)

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Three Months Ended March 31,

Capital expenditures from reportable segments:

Power & Energy $ 291 $ 240

Construction Industries 55 46

Resource Industries 125 110

Energy & Transportation 454 292 1,165 671

Financial Products Segment 265 170

12 unchanged sentences

Cat Financial provides loans and finance leases to end-user customers primarily for the purpose of financing new and used Caterpillar machinery, engines and equipment for commercial use.

Cat Financial also provides financing for power generation facilities that, in most cases, incorporate Caterpillar products.

The average original term of Cat Financial's customer finance receivables portfolio was approximately 51 months with an average remaining term of approximately 27 months as of September 30, 2025.

Cat Financial also provides financing for power generation facilities that incorporate Caterpillar products.

The average original term of Cat Financial's customer finance receivables portfolio was approximately 51 months with an average remaining term of approximately 28 months as of March 31, 2026.

Cat Financial typically maintains a security interest in financed equipment and generally requires physical damage insurance coverage on the financed equipment, both of which provide Cat Financial with certain rights and protections.

1 unchanged sentence

Cat Financial estimates the allowance for credit losses related to its customer finance receivables based on loss forecast models utilizing probabilities of default and the estimated loss given default based on past loss experience adjusted for current conditions and reasonable and supportable forecasts capturing country and industry-specific economic factors.

During the three and nine months ended September 30, 2025, Cat Financial's forecasts reflect a continuation of global market uncertainty and actions by global central banks aimed at balancing economic growth and managing inflation.

During the three months ended March 31, 2026, Cat Financial's forecasts reflected a continuation of global market uncertainty and actions by global central banks aimed at balancing economic growth and managing inflation.

Cat Financial believes the economic forecasts employed represent reasonable and supportable forecasts, followed by a reversion to long-term trends.

Cat Financial provides financing to Caterpillar dealers in the form of wholesale financing plans and working capital loans.

Cat Financial's wholesale financing plans provide financing to dealers for their primarily new Caterpillar equipment inventory and rental fleets on a secured and unsecured basis.

In addition, Cat Financial provides a variety of secured and unsecured retail loans to Caterpillar dealers.

Cat Financial provides financing to Caterpillar dealers on a secured and unsecured basis in the form of wholesale financing plans and retail loans.

Cat Financial's wholesale financing plans provide financing to dealers for their new Caterpillar equipment inventory and rental fleets.

The retail loans to Caterpillar dealers are primarily for working capital.

Cat Financial estimates the allowance for credit losses for dealer finance receivables based on historical loss rates with consideration of current economic conditions and reasonable and supportable forecasts.

In general, Cat Financial's Dealer portfolio segment has not historically experienced large increases or decreases in credit losses based on changes in economic conditions due to its close working relationships with the dealers and their financial strength.

Therefore, Cat Financial made no adjustments to historical loss rates during the three and nine months ended September 30, 2025.

Therefore, Cat Financial made no adjustments to historical loss rates during the three months ended March 31, 2026.

Classes of finance receivables

11 unchanged sentences

An analysis of the allowance for credit losses was as follows:

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

Customer Dealer Total Customer Dealer Total

Beginning balance $ 281 $ 4 $ 285 $ 246 $ 4 $ 250

Write-offs ( 52 ) — ( 52 ) ( 42 ) — ( 42 )

Recoveries 12 — 12 15 — 15

Provision for credit losses 1

32 — 32 25 — 25

Other 1 — 1 2 — 2

Ending balance $ 274 $ 4 $ 278 $ 246 $ 4 $ 250

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

(Millions of dollars) Three Months Ended March 31, 2026 Three Months Ended March 31, 2025

Customer Dealer Total Customer Dealer Total

9 unchanged sentences

Gross write-offs by origination year for the Customer portfolio segment were as follows:

(Millions of dollars) Three Months Ended September 30, 2025

2025 2024 2023 2022 2021 Prior Revolving

Receivables Total

North America $ 1 $ 5 $ 7 $ 3 $ 2 $ 1 $ 2 $ 21

EAME — — 3 1 — 1 1 6

Asia/Pacific 1 3 1 — — — — 5

Latin America — 2 — 1 1 — — 4

Mining — 5 5 5 — 1 — 16

Total $ 2 $ 15 $ 16 $ 10 $ 3 $ 3 $ 3 $ 52

Three Months Ended September 30, 2024

(Millions of dollars) Three Months Ended March 31, 2026

2026 2025 2024 2023 2022 Prior Revolving

6 unchanged sentences

Total $ — $ 12 $ 12 $ 9 $ 3 $ 3 $ 3 $ 42

Nine Months Ended September 30, 2025

Three Months Ended March 31, 2025

2025 2024 2023 2022 2021 Prior Revolving

7 unchanged sentences

Total $ — $ 6 $ 9 $ 7 $ 3 $ 3 $ 2 $ 30

Nine Months Ended September 30, 2024

2024 2023 2022 2021 2020 Prior Revolving

Receivables Total

North America $ — $ 13 $ 10 $ 5 $ 2 $ 1 $ 8 $ 39

EAME — 2 3 3 2 — — 10

Asia/Pacific — 4 4 3 1 1 — 13

Latin America — 2 5 4 3 8 — 22

Mining 8 3 3 — — — — 14

Total $ 8 $ 24 $ 25 $ 15 $ 8 $ 10 $ 8 $ 98

For the three months ended September 30, 2025 and 2024, there were no gross write-offs in Cat Financial's Dealer portfolio segment.

For the nine months ended September 30, 2025, there were no gross write-offs in Cat Financial's Dealer portfolio segment.

For the nine months ended September 30, 2024, there were $ 47 million of gross write-offs in Cat Financial's Dealer portfolio segment, all of which were in Latin America and originated prior to 2020.

Credit quality of finance receivables

2 unchanged sentences

In determining past-due status, Cat Financial considers the entire finance receivable past due when any installment is over 30 days past due.

The aging category of Cat Financial's amortized cost of finance receivables in the Customer portfolio segment by origination year were as follows:

(Millions of dollars) September 30, 2025

The aging analysis of Cat Financial's Customer portfolio segment by origination year was as follows:

(Millions of dollars) March 31, 2026

2026 2025 2024 2023 2022 Prior Revolving

67 unchanged sentences

Total Customer $ 10,078 $ 6,740 $ 3,740 $ 1,644 $ 610 $ 154 $ 669 $ 23,635

As of September 30, 2025 and December 31, 2024, Cat Financial's total amortized cost of finance receivables within the Dealer portfolio segment was current.

As of March 31, 2026 and December 31, 2025, Cat Financial's total amortized cost of finance receivables within the Dealer portfolio segment was current.

Non-accrual finance receivables

5 unchanged sentences

In Cat Financial's Customer portfolio segment, finance receivables which were on non-accrual status and finance receivables over 90 days past due and still accruing income were as follows:

(Millions of dollars) September 30, 2025 December 31, 2024

(Millions of dollars) March 31, 2026 December 31, 2025

Amortized Cost Amortized Cost

7 unchanged sentences

Mining 3 — 10 —

Power 1 — 2 —

Total $ 182 $ 23 $ 163 $ 28

There were no finance receivables in Cat Financial's Dealer portfolio segment on non-accrual status as of September 30, 2025 and December 31, 2024.

There were no finance receivables in Cat Financial's Dealer portfolio segment on non-accrual status as of March 31, 2026 and December 31, 2025.

Modifications

4 unchanged sentences

Modifications for borrowers Cat Financial does consider to be experiencing financial difficulty typically result in payment deferrals and/or reduced payments for a period of four months or longer, term extension of six months or longer or a combination of both.

During the three and nine months ended September 30, 2025 and 2024, there were no finance receivable modifications granted to borrowers experiencing financial difficulty in Cat Financial's Dealer portfolio segment.

During the three months ended March 31, 2026 and 2025, there were no finance receivable modifications granted to borrowers experiencing financial difficulty in Cat Financial's Dealer portfolio segment.

The ending amortized cost of finance receivables modified with borrowers experiencing financial difficulty in Cat Financial's Customer portfolio segment was as follows:

(Millions of dollars) Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

(Millions of dollars) Three Months Ended March 31,

Amortized cost of finance receivables modified $ 11 $ 6

1 unchanged sentence

The financial effects of term extensions and payment delays for borrowers experiencing financial difficulty were as follows:

(In months) Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

(In months) Three Months Ended March 31,

Weighted average extension to term of modified contracts 13 7

1 unchanged sentence

After Cat Financial modifies a finance receivable, they continue to track its performance under its most recent modified terms.

Defaults of loans modified in the prior twelve months were not significant during the three and nine months ended September 30, 2025 and 2024.

Defaults of loans modified in the prior twelve months were not significant during the three months ended March 31, 2026 and 2025.

The effect of most modifications made to finance receivables for borrowers experiencing financial difficulty is already included in the allowance for credit losses based on the methodologies used to estimate the allowance;

34 unchanged sentences

See Note 5 for additional information.

Assets and liabilities measured on a recurring basis at fair value included in our Consolidated Statement of Financial Position as of September 30, 2025 and December 31, 2024 were as follows:

September 30, 2025

Assets and liabilities measured on a recurring basis at fair value included in our Consolidated Statement of Financial Position as of March 31, 2026 and December 31, 2025 were as follows:

March 31, 2026

(Millions of dollars)

22 unchanged sentences

Commodity contracts - net — 31 — — 31

Total return swap contracts - net — 29 — — 29

Total assets $ 351 $ 3,802 $ — $ 176 $ 4,329

1 unchanged sentence

Interest rate contracts - net $ — $ 52 $ — $ — $ 52

Total return swap contracts - net — 41 — — 41

Total liabilities $ — $ 93 $ — $ — $ 93

23 unchanged sentences

Foreign currency contracts - net — 204 — — 204

Commodity contracts - net — 8 — — 8

Total assets $ 358 $ 3,751 $ — $ 174 $ 4,283

1 unchanged sentence

Interest rate contracts - net $ — $ 40 $ — $ — $ 40

Commodity contracts - net — 2 — — 2

Total return swap contracts - net — 1 — — 1

2 unchanged sentences

A loan is measured at fair value when management determines that collection of contractual amounts due is not probable and the loan is individually evaluated.

Generally, the fair value of these receivables is measured using the fair value of collateral less estimated costs to sell.

Cat Financial had loans carried at fair value of $ 59 million as of September 30, 2025 and December 31, 2024.

In these cases, an allowance for credit losses may be established based either on the present value of expected future cash flows discounted at the receivables' effective interest rate, the fair value of the collateral for collateral-dependent receivables, or the observable market price of the receivable.

In determining the collateral value, Cat Financial estimates the current fair market value of the collateral less selling costs.

Cat Financial had loans carried at fair value of $ 71 million and $ 63 million as of March 31, 2026 and December 31, 2025, respectively.

Fair values of financial instruments

20 unchanged sentences

Our financial instruments not carried at fair value were as follows:

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

(Millions of dollars) Carrying

5 unchanged sentences

Long-term debt (including amounts due within one year)

Machinery, Energy & Transportation $ 10,701 $ 10,401 $ 8,610 $ 7,980 2

Machinery, Power & Energy $ 10,706 $ 10,178 $ 10,713 $ 10,363 2

Financial Products 27,631 27,611 27,103 27,204 2

1 Represents finance leases and failed sale leasebacks of $ 7,158 million and $ 6,769 million at September 30, 2025 and December 31, 2024, respectively.

1 Represents finance leases and failed sale leasebacks of $ 6,918 million and $ 7,189 million at March 31, 2026 and December 31, 2025, respectively.

Other income (expense)

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(Millions of dollars) 2026 2025

1 unchanged sentence

Foreign exchange gains (losses) 1

( 18 ) ( 123 ) ( 161 ) ( 64 )

License fee income 32 35

9 unchanged sentences

For involuntary programs, we recognize eligible costs when management has approved the program, the affected employees have been properly notified and the costs are estimable.

Restructuring costs for the three and nine months ended September 30, 2025 and 2024 were as follows:

(Millions of dollars) Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Restructuring costs for the three months ended March 31, 2026 and 2025 were as follows:

(Millions of dollars) Three Months Ended March 31,

Employee separations 1

$ 32 $ 17 $ 59 $ 49

Divestitures 1

Contract terminations 1

Long-lived asset impairments 1

Total restructuring (income) costs $ 41 $ 33

1 Recognized in Other operating (income) expenses.

2 Represents costs related to our restructuring programs, primarily for inventory write-downs, project management, equipment relocation and accelerated depreciation, all of which are primarily included in Cost of goods sold.

The restructuring costs for the nine months ended September 30, 2025 were related to restructuring actions across the company.

The restructuring costs for the nine months ended September 30, 2024 were primarily related to the divestitures of certain non-US entities.

2 Represents costs related to our restructuring programs, primarily for inventory write-downs, project management, contract termination and equipment relocation, all of which are primarily included in Cost of goods sold.

The restructuring costs for the three months ended March 31, 2026 and 2025 were related to restructuring actions across the company.

In 2026 and 2025, all restructuring costs are excluded from segment profit.

4 unchanged sentences

The range of payment terms, typically 60 - 90 days, we negotiate with our suppliers is consistent, irrespective of whether a supplier participates in the Programs.

The amount of obligations outstanding that are confirmed as valid to the participating financial institutions for suppliers who voluntarily participate in the Programs, included in Accounts payable in the Consolidated Statement of Financial Position, were $ 950 million and $ 830 million at September 30, 2025 and December 31, 2024, respectively.

Long-term debt

On May 12, 2025, we issued $ 1.7 billion of 5.200 % Senior Notes due 2035 and $ 300 million 5.500 % Senior Notes due 2055.

Interest on each series of notes will be paid semi-annually on May 15 and November 15 of each year, commencing on November 15, 2025.

Subsequent event

On October 12, 2025, the Company entered into a definitive agreement to acquire RPMGlobal Holdings Limited, an Australian-based software company.

This agreement requires approval by RPMGlobal shareholders and various regulatory authorities and is subject to other customary closing conditions.

The transaction is expected to close in the first quarter of 2026.

The amount of obligations outstanding that are confirmed as valid to the participating financial institutions for suppliers who voluntarily participate in the Programs, included in Accounts payable in the Consolidated Statement of Financial Position, were $ 1.02 billion and $ 936 million at March 31, 2026 and December 31, 2025, respectively.

On February 17, 2026, Caterpillar completed the acquisition of RPMGlobal Holdings Limited (RPMGlobal), an Australian based software company.

Headquartered in Brisbane, Australia, RPMGlobal is a leading provider of mining software solutions.

RPMGlobal has deep domain expertise in mining technology enablement, providing global customers with data-driven software solutions at every stage of the mining lifecycle.

The acquisition, within the Resource Industries segment, aligns with our strategy of providing customers with expanded product offerings including advanced technology solutions.

The purchase price was approximately $ 733 million, net of $ 53 million of acquired cash.

We financed the transaction with available cash.

As of the acquisition date, the tangible assets acquired were $ 78 million which were recorded at their fair values and primarily included cash of $ 53 million and receivables of $ 18 million.

Finite-lived intangible assets acquired included $ 110 million related to developed intellectual property, customer relationships of $ 85 million and trade names of $ 5 million, each of which were recorded at their acquisition date fair value.

These intangible assets will be amortized on a straight-line basis over a weighted-average useful life of approximately 10 years.

Liabilities assumed as of the acquisition date were approximately $ 38 million.

Goodwill of $ 546 million, which is expected to be deductible for income tax purposes, represented the excess of the consideration transferred over the net assets acquired and is attributable to the estimated future economic benefits arising from other assets acquired that could not be individually identified and separately recognized.

Factors that contributed to a purchase price resulting in the recognition of goodwill included RPMGlobal’s strategic fit into our Resource Industries product portfolio and related cross-selling opportunities, the ability to provide enhanced technological solutions to mining customers and the acquired assembled workforce.

These values represent a preliminary allocation of the purchase price subject to finalization of fair value appraisals and post-closing procedures.

The results of the acquired business from the acquisition date are included in the accompanying consolidated financial statements and reported in the Resource Industries segment in Note 16.

Assuming this transaction had been made at the beginning of any period presented, the consolidated pro forma results would not be materially different from reported results.

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 1. Financial Statements