What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-05-06 compared with 2025-11-03 · 330 added, 613 removed, 553 unchanged (63% of the section changed)

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Risk Factors of the 2025 Form 10-K .

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.

Highlights for the first quarter of 2026 include:

• Total sales and revenues for the first quarter of 2026 were $17.415 billion, an increase of $3.166 billion, or 22 percent, compared with $14.249 billion in the first quarter of 2025.

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.

• Operating profit margin was 17.7 percent for the first quarter of 2026, compared with 18.1 percent for the first quarter of 2025.

Adjusted operating profit margin was 18.0 percent for the first quarter of 2026, compared with 18.3 percent for the first quarter of 2025.

• First-quarter 2026 profit per share was $5.47, and excluding the item in the table below, adjusted profit per share was $5.54.

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

• Caterpillar ended the first quarter of 2026 with $4.1 billion of enterprise cash.

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

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

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

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

Per Share Profit Before Taxes Profit

Profit $ 3,211 $ 5.47 $ 2,570 $ 4.20

Other restructuring (income) costs 37 0.07 70 0.11 126 0.22 158 0.26

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

entities — — — — — — 164 0.22

Restructuring (income) costs 41 0.07 33 0.05

Adjusted profit $ 3,252 $ 5.54 $ 2,603 $ 4.25

A detailed reconciliation of GAAP to non-GAAP financial measures is included on pages 57 - 59 .

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.

Total sales and revenues for the first quarter of 2026 were $17.415 billion, an increase of $3.166 billion, or 22 percent, compared with $14.249 billion in the first quarter of 2025.

The increase was primarily due to higher sales volume of $2.3 billion and favorable price realization of $426 million.

First-quarter 2026 profit per share was $5.47, compared with $4.20 profit per share in the first quarter of 2025.

In the first quarter of 2026 and 2025, profit per share included restructuring costs.

Profit for the first quarter of 2026 was $2.549 billion, an increase of $546 million, or 27 percent, compared with $2.003 billion for the first quarter of 2025.

The increase was mainly due to the profit impact of higher sales volume and favorable price realization, partially offset by unfavorable manufacturing costs and higher selling, general and administrative (SG&A) and research and development (R&D) expenses.

Unfavorable manufacturing costs largely reflected the impact of higher tariff costs.

The increase in SG&A/R&D expenses was primarily driven by higher compensation expenses.

Trends and Economic Conditions

Outlook for Key End Markets

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 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 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 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.

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 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 improving from previous low levels, with order growth being driven by engines sold into electric power applications.

Transportation is expected to remain stable.

While there is increased uncertainty due to geopolitical events and elevated energy prices, our end markets have been resilient.

We are closely monitoring the environment, and we are not forecasting a material impact to our 2026 outlook.

In Power & Energy , the 2026 outlook remains positive as robust backlog growth was driven by continued momentum in both Power Generation and Oil & Gas.

We anticipate growth in Power Generation for both reciprocating engines and turbines and turbine-related services , driven by increasing energy demand to support data center build-out related to cloud computing and generative Artificial Intelligence (AI).

We continue to see demand for prime power trend higher as data center customers look for alternative power solutions to keep pace with their growth.

Oil & Gas is expected to see moderate growth in 2026 as compared to 2025.

Reciprocating engine sales are expected to increase, driven by strong demand in gas compression applications.

For turbines and turbine-related services used in Oil & Gas applications, we anticipate another year of strong sales in 2026 as backlog remains healthy, with continued solid order and inquiry activity.

Services revenues in Oil & Gas applications are also expected to increase in 2026.

Demand for products in Industrial applications is projected to grow modestly in 2026 as compared to 2025.

In Construction Industries , in 2026 as compared to 2025, we continue to expect growth in sales of equipment to end users supported by strong order rates.

The outlook for North America remains positive, as sales of equipment to end users are anticipated to grow in 2026 as compared to 2025.

Construction spending remains at healthy levels supported by the Infrastructure Investment and Jobs Act (IIJA), with the remaining funds to be spent over the next few years.

Investment in critical infrastructure programs and data centers is contributing to overall construction spending levels.

Dealer rental fleet loading and dealer’s rental revenue are both projected to increase in 2026 compared to 2025.

In EAME , Europe is expected to remain stable supported by non-residential construction, and construction activity in Africa is projected to remain strong.

While softening in the Middle East is anticipated, we expect the impact on sales of equipment to end users in EAME to be limited.

In Asia Pacific, outside of China, softer economic conditions are expected in 2026.

In China, we anticipate moderate conditions, with growth in the above 10-ton excavator industry in 2026, off of low levels of activity.

Growth in Latin America is expected to continue.

In Resource Industries , we are seeing continued positive momentum with strong backlog growth.

Sales of equipment to end users are expected to increase in 2026 as compared to 2025, primarily driven by rising demand for copper and gold, and positive dynamics in Heavy Construction and Quarry and Aggregates.

In Mining, most key commodities remain above investment thresholds, customer product utilization is high, and the age of the fleet remains elevated.

While some commodity prices have increased recently, customers remain focused on the long-term.

We continue to expect rebuild activity in 2026 to increase slightly as compared to 2025.

Rail services and locomotive deliveries are both anticipated to grow in 2026 as compared to 2025.

Second-Quarter 2026 Company Trends and Expectations

In the second quarter of 2026 as compared to the second quarter of 2025, we anticipate strong sales and revenues growth, primarily driven by higher sales volume and favorable price realization in each of our three primary segments.

We expect higher sales volume to be mainly driven by higher sales of equipment to end users, with a higher year-over year increase in sales of equipment to end users in the second quarter of 2026 as compared to the first quarter of 2026.

We expect a minimal change in Construction Industries dealer inventory in the second quarter of 2026 as compared to the first quarter of 2026.

In the second quarter of 2026 as compared to the second quarter of 2025, we anticipate strong sales growth in Power & Energy mainly driven by continued strength in Power Generation and in Oil & Gas.

We expect favorable price realization in Power & Energy.

In Construction Industries, we expect strong sales growth primarily due to higher sales volume and favorable price realization.

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

We anticipate a more typical sales increase in the second quarter of 2026 as compared to the first quarter of 2026, in contrast to the sizable sales increase in the second quarter of 2025 as compared to the first quarter of 2025.

In Resource Industries, we expect strong sales growth primarily due to higher sales volume and favorable price realization.

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

We expect price realization in Resource Industries to improve during 2026 as compared to 2025.

We expect tariff costs to be around $700 million in the second quarter of 2026.

We expect about 50 percent of the tariff costs to be incurred in Construction Industries, and about 25 percent of tariff costs to be incurred in both Power & Energy and Resource Industries.

In the second quarter of 2026 as compared to the second quarter of 2025, we expect favorable price realization and the profit impact of higher sales volume to be partially offset by higher manufacturing costs and higher SG&A/R&D expenses.

In the second quarter of 2026 as compared to the second quarter of 2025, in Power & Energy, we anticipate the profit impact of higher sales volume and favorable price realization will be partially offset by higher manufacturing costs.

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

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

Full-Year 2026 Company Trends and Expectations

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.

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.

For the full-year 2026, we anticipate sales and revenues growth in the low double digits as compared to 2025.

We expect strong sales growth across each of our three primary segments, mainly driven by higher sales volume and favorable price realization.

Services revenues are expected to grow in 2026 as compared to 2025.

Based on tariffs implemented since the beginning of 2025 and in place over the course of 2026, we expect tariff costs to be around $2.2 billion to $2.4 billion in 2026.

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.

In 2026 as compared to 2025, we expect favorable price realization and the profit impact of higher sales volume to be partially offset by higher manufacturing costs and higher SG&A/R&D expenses.

In 2026, we expect restructuring costs of approximately $300 to $350 million, and capital expenditures of around $3.5 billion.

We anticipate our estimated annual effective tax rate to be 23.0 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 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 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 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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We continue to assess the environment to determine if additional actions need to be taken.

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.

Risk factors are disclosed within Item 1A.

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Consolidated Results of Operations

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

THREE MONTHS ENDED MARCH 31, 2026, COMPARED WITH THREE MONTHS ENDED MARCH 31, 2025

CONSOLIDATED SALES AND REVENUES

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).

The chart above graphically illustrates reasons for the change in consolidated sales and revenues between the first quarter of 2025 (at left) and the first quarter of 2026 (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 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.

Total sales and revenues for the first quarter of 2026 were $17.415 billion, an increase of $3.166 billion, or 22 percent, compared with $14.249 billion in the first quarter of 2025.

The increase was primarily due to higher sales volume of $2.3 billion and favorable price realization of $426 million.

Higher sales volume was mainly driven by the impact from changes in dealer inventories and higher sales of equipment to end users.

Dealer inventory increased more during the first quarter of 2026 than during the first quarter of 2025.

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.

North America sales increased 34 percent primarily due to higher sales volume and favorable price realization.

The increase in sales volume was mainly driven by higher sales of equipment to end users and the impact from changes in dealer inventories.

Dealer inventory increased more during the first quarter of 2026 than during the first quarter of 2025.

Sales increased 5 percent in Latin America due to favorable currency impacts primarily related to the Brazilian real and higher sales volume.

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

Dealer inventory increased more during the first quarter of 2026 than during the first quarter of 2025.

EAME sales increased 21 percent primarily due to higher sales volume and favorable currency impacts primarily related to the euro.

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

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.

Dealer inventory increased during the first quarter of 2026 and remained about flat during the first quarter of 2025.

Asia/Pacific sales increased 4 percent mainly due to favorable currency impacts primarily related to the Australian dollar.

Total dealer inventory increased $2.0 billion during the first quarter of 2026, compared with an increase of $100 million during the first quarter of 2025.

Construction Industries' dealer inventory increased by $1.5 billion during the first quarter of 2026, compared with a slight decrease during the first quarter of 2025.

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) Third Quarter 2024 Sales

Realization Currency Inter-Segment / Other Third Quarter 2025 $

(Millions of dollars) First Quarter 2025 Sales

Realization Currency Inter-Segment / Other First Quarter 2026 $

Power & Energy $ 5,783 $ 840 $ 108 $ 111 $ 189 $ 7,031 $ 1,248 22 %

Construction Industries 5,184 1,459 356 143 19 7,161 1,977 38 %

Resource Industries 3,661 85 (39) 78 12 3,797 136 4 %

Energy & Transportation 7,187 870 132 52 156 8,397 1,210 17 %

All Other Segment 70 1 — — 6 77 7 10 %

Corporate Items and Eliminations (1,320) (67) 1 19 (226) (1,593) (273)

Machinery, Energy & Transportation Sales

Machinery, Power & Energy Sales

13,378 2,318 426 351 — 16,473 3,095 23 %

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Financial Products Revenues

871 — — — 71 942 71 8 %

Consolidated Sales and Revenues $ 14,249 $ 2,318 $ 426 $ 351 $ 71 $ 17,415 $ 3,166 22 %

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

Third Quarter 2025

First Quarter 2026

Power & Energy $ 3,500 33 % $ 278 (15 %) $ 1,141 11 % $ 794 17 % $ 5,713 23 % $ 1,318 17 % $ 7,031 22 %

Construction Industries 4,292 48 % 650 29 % 1,199 38 % 961 11 % 7,102 38 % 59 48 % 7,161 38 %

Resource Industries 1,836 14 % 572 (6 %) 560 10 % 742 (14 %) 3,710 3 % 87 16 % 3,797 4 %

Energy & Transportation 4,045 26 % 559 24 % 1,367 (8 %) 1,088 27 % 7,059 18 % 1,338 13 % 8,397 17 %

All Other Segment 7 (13 %) — — % 3 200 % 2 — % 12 9 % 65 10 % 77 10 %

Corporate Items and Eliminations (55) — (4) (5) (64) (1,529) (1,593)

Machinery, Energy & Transportation Sales 9,055 14 % 1,758 10 % 3,124 1 % 2,789 7 % 16,726 10 % — — % 16,726 10 %

Machinery, Power & Energy Sales 9,580 34 % 1,500 5 % 2,899 21 % 2,494 4 % 16,473 23 % — — % 16,473 23 %

Financial Products Segment 741 9 % 111 12 % 133 9 % 111 7 % 1,096 1

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Consolidated Sales and Revenues $ 10,230 32 % $ 1,592 5 % $ 3,008 20 % $ 2,585 4 % $ 17,415 22 % $ — — % $ 17,415 22 %

Third Quarter 2024

First Quarter 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 3,214 449 1,486 856 6,005 1,182 7,187

All Other Segment 8 — 1 2 11 59 70

Corporate Items and Eliminations (11) (1) (1) (4) (17) (1,303) (1,320)

Machinery, Energy & Transportation Sales 7,943 1,602 3,090 2,596 15,231 — 15,231

Machinery, Power & Energy Sales 7,136 1,435 2,403 2,404 13,378 — 13,378

Financial Products Segment 682 99 122 104 1,007 1

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

1 Includes revenues from Machinery, Energy & Transportation o f $187 m illion and $190 million in the third quarter of 2025 and 2024 , respectively.

1 Includes revenues from Machinery, Power & Energy o f $183 m illion and $163 million in the first quarter of 2026 and 2025 , respectively.

CONSOLIDATED OPERATING PROFIT

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).

The chart above graphically illustrates reasons for the change in consolidated operating profit between the first quarter of 2025 (at left) and the first quarter of 2026 (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 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.

The bar titled Other includes consolidating adjustments and Machinery, Power & Energy's other operating (income) expenses .

Operating profit for the first quarter of 2026 was $3.085 billion, an increase of $506 million, or 20 percent, compared with $2.579 billion in the first quarter of 2025.

The increase was mainly due to the profit impact of higher sales volume of $940 million and favorable price realization of $426 million.

This was partially offset by unfavorable manufacturing costs of $710 million and higher SG&A/R&D expenses of $225 million.

Unfavorable manufacturing costs largely reflected the impact of higher tariff costs.

The increase in SG&A/R&D expenses was primarily driven by higher compensation expenses.

Operating profit margin was 17.7 percent for the first quarter of 2026, compared with 18.1 percent for the first quarter of 2025.

Profit (Loss) by Segment

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

(Millions of dollars) First Quarter 2026 First Quarter 2025 $

Power & Energy $ 1,450 $ 1,288 $ 162 13 %

Construction Industries 1,535 1,024 511 50 %

Resource Industries 378 623 (245) (39 %)

Energy & Transportation 1,678 1,433 245 17 %

All Other Segment (43) (19) (24) (126 %)

Corporate Items and Eliminations (321) (401) 80

Machinery, Energy & Transportation 3,002 3,098 (96) (3 %)

Machinery, Power & Energy 2,999 2,515 484 19 %

Financial Products Segment 245 215 30 14 %

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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.

• Interest expense excluding Financial Products in the first quarter of 2026 was $134 million, compared with $116 million in the first quarter of 2025.

The increase was primarily due to higher average debt outstanding.

• Other income (expense) in the first quarter of 2026 was income of $260 million, compared with income of $107 million in the first quarter of 2025.

The change was primarily driven by favorable impacts from foreign currency, total return swap contracts and commodity hedges.

• The effective tax rate for the first quarter of 2026 was 20.9 percent compared to 22.3 percent for the first quarter of 2025.

Excluding the discrete items discussed below, the estimated annual effective tax rate was 23.0 percent for the first quarter of 2026 and 2025.

A discrete 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.

Please see a reconciliation of GAAP to non-GAAP financial measures on pages 57 - 59 .

Construction Industries

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 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 $3.110 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 16.0 percent in the third quarter of 2025, compared with 20.3 percent in the third quarter of 2024.

Energy & Transportation

Power & Energy

Sales by Application

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

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

(Millions of dollars) First Quarter 2026 First Quarter 2025 $

Power Generation $ 2,817 $ 1,996 $ 821 41 %

Oil and Gas 1,423 1,258 165 13 %

Industrial 1,473 1,400 73 5 %

Transportation 1,369 1,310 59 5 %

External Sales 5,713 4,654 1,059 23 %

1 unchanged sentence

Total Sales $ 7,031 $ 5,783 $ 1,248 22 %

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.

Power & Energy’s total sales were $7.031 billion in the first quarter of 2026, an increase of $1.248 billion, or 22 percent, compared with $5.783 billion in the first quarter of 2025.

The increase was primarily due to higher sales volume of $840 million and higher inter-segment sales of $189 million.

• Oil and Gas – Sales increased for turbines and turbine-related services.

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 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 $1.076 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 $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 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 $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.

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

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

Sales and Revenues by Segment

(Millions of dollars) 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 %)

Resource Industries 9,491 (56) (205) (53) (56) 9,121 (370) (4 %)

Energy & Transportation 21,205 1,021 426 (2) 151 22,801 1,596 8 %

All Other Segment 246 8 (1) (1) (24) 228 (18) (7 %)

Corporate Items and Eliminations (4,363) 43 1 (3) (184) (4,506) (143)

Machinery, Energy & Transportation Sales 46,031 681 (855) (79) — 45,778 (253) (1 %)

Financial Products Segment 3,029 — — — 96 3,125 96 3 %

Corporate Items and Eliminations (466) — — — 19 (447) 19

Financial Products Revenues 2,563 — — — 115 2,678 115 4 %

Consolidated Sales and Revenues $ 48,594 $ 681 $ (855) $ (79) $ 115 $ 48,456 $ (138) — %

Sales and Revenues by Geographic Region

North America Latin America EAME Asia/Pacific External Sales and Revenues Inter-Segment Total Sales and Revenues

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

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 %)

Resource Industries 3,363 (7 %) 1,645 10 % 1,451 7 % 2,442 (11 %) 8,901 (3 %) 220 (20 %) 9,121 (4 %)

Energy & Transportation 10,963 16 % 1,422 10 % 3,883 (8 %) 2,749 6 % 19,017 8 % 3,784 4 % 22,801 8 %

All Other Segment 19 46 % — 100 % 4 (33 %) 11 — % 34 21 % 194 (11 %) 228 (7 %)

Corporate Items and Eliminations (103) (1) (8) (16) (128) (4,378) (4,506)

Machinery, Energy & Transportation Sales 24,427 — % 4,764 1 % 8,599 (2 %) 7,988 (2 %) 45,778 (1 %) — — % 45,778 (1 %)

Financial Products Segment 2,107 4 % 322 8 % 378 — % 318 (4 %) 3,125 1

3 % — — % 3,125 3 %

Corporate Items and Eliminations (264) (65) (60) (58) (447) — (447)

Financial Products Revenues 1,843 6 % 257 8 % 318 — % 260 — % 2,678 4 % — — % 2,678 4 %

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

Nine Months Ended September 30, 2024

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

Resource Industries 3,630 1,499 1,354 2,732 9,215 276 9,491

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

All Other Segment 13 (2) 6 11 28 218 246

Corporate Items and Eliminations (120) (6) (23) (20) (169) (4,194) (4,363)

Machinery, Energy & Transportation Sales 24,415 4,717 8,731 8,168 46,031 — 46,031

Financial Products Segment 2,022 299 377 331 3,029 1

Corporate Items and Eliminations (276) (60) (60) (70) (466) — (466)

Financial Products Revenues 1,746 239 317 261 2,563 — 2,563

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

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 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 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 17.5 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) Nine Months Ended September 30, 2025 Nine Months Ended September 30, 2024 $

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

Resource Industries 1,628 2,067 (439) (21 %)

Energy & Transportation 4,577 4,259 318 7 %

All Other Segment (25) 32 (57) (178 %)

Corporate Items and Eliminations (1,513) (1,186) (327)

Machinery, Energy & Transportation 8,312 10,163 (1,851) (18 %)

Financial Products Segment 704 766 (62) (8 %)

Corporate Items and Eliminations (88) (298) 210

Financial Products 616 468 148 32 %

Consolidating Adjustments (437) (483) 46

Consolidated Operating Profit $ 8,491 $ 10,148 $ (1,657) (16 %)

Other Profit/Loss and Tax Items

• 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 related tax benefits of $54 million.

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

• Power Generation – Sales increased in large reciprocating engines and in turbines and turbine-related services, primarily data center applications.

• Oil and Gas – Sales increased in reciprocating engines used in gas compression applications.

Sales also increased in turbines and turbine-related services.

• Industrial – Sales increased primarily in EAME and Asia/Pacific.

Power & Energy’s segment profit was $1.450 billion in the first quarter of 2026, an increase of $162 million, or 13 percent, compared with $1.288 billion in the first quarter of 2025.

The increase was mainly due to the profit impact of higher sales volume of $435 million and favorable price realization of $108 million, partially offset by unfavorable manufacturing costs of $346 million.

Unfavorable manufacturing costs primarily reflected the impact of higher tariff costs.

Power & Energy’s segment profit as a percent of total sales was 20.6 percent in the first quarter of 2026, compared with 22.3 percent in the first quarter of 2025.

Construction Industries

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 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 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.

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

Construction Industries’ total sales were $7.161 billion in the first quarter of 2026, an increase of $1.977 billion, or 38 percent, compared with $5.184 billion in the first quarter of 2025.

The increase in sales was mainly due to higher sales volume of $1.5 billion and favorable price realization of $356 million.

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

Dealer inventory increased during the first quarter of 2026, compared with a slight decrease during the first quarter of 2025.

• In North America, sales increased due to higher sales volume and favorable price realization.

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

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.

• Sales increased in Latin America mainly due to higher sales volume and favorable currency impacts primarily related to the Brazilian real.

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

• In EAME, sales increased primarily due to higher sales volume and favorable currency impacts mainly related to the euro.

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

• Sales increased in Asia/Pacific mainly due to favorable price realization and favorable currency impacts primarily related to the Australian dollar.

Construction Industries’ segment profit was $1.535 billion in the first quarter of 2026, an increase of $511 million, or 50 percent, compared with $1.024 billion in the first quarter of 2025.

The increase was primarily due to the profit impact of higher sales volume of $505 million and favorable price realization of $356 million, partially offset by unfavorable manufacturing costs of $362 million.

Unfavorable manufacturing costs largely reflected the impact of higher tariff costs.

Construction Industries’ segment profit as a percent of total sales was 21.4 percent in the first quarter of 2026, compared with 19.8 percent in the first quarter of 2025.

Resource Industries

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 $1.628 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) Nine Months Ended September 30, 2025 Nine Months Ended September 30, 2024 $

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

Power Generation 7,037 5,514 1,523 28 %

Industrial 3,104 3,062 42 1 %

Transportation 3,772 3,943 (171) (4 %)

Sales by Industry

(Millions of dollars) First Quarter 2026 First Quarter 2025 $

Mining, HC and Q&A* $ 2,954 $ 2,842 $ 112 4 %

Rail 756 744 12 2 %

External Sales 3,710 3,586 124 3 %

1 unchanged sentence

Total Sales $ 3,797 $ 3,661 $ 136 4 %

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

• Transportation – Sales decreased in marine.

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.

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

Resource Industries’ total sales were $3.797 billion in the first quarter of 2026, an increase of $136 million, or 4 percent, compared with $3.661 billion in the first quarter of 2025.

The increase was primarily due to higher sales volume of $85 million and favorable currency impacts of $78 million mainly related to the Australian dollar.

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

• Mining, Heavy Construction and Quarry & Aggregates – Sales increased primarily due to higher sales of equipment to end users in Mining.

• Rail – Sales increased in rail services.

Resource Industries’ segment profit was $378 million in the first quarter of 2026, a decrease of $245 million, or 39 percent, compared with $623 million in the first quarter of 2025.

The decrease was mainly due to unfavorable manufacturing costs.

Unfavorable manufacturing costs largely reflected the impact of higher tariff costs.

Resource Industries’ segment profit as a percent of total sales was 10.0 percent in the first quarter of 2026, compared with 17.0 percent in the first quarter of 2025.

Financial Products Segment

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.

Financial Products’ segment revenues were $1.096 billion in the first quarter of 2026, an increase of $89 million, or 9 percent, compared with $1.007 billion in the first quarter of 2025.

The increase was primarily due to a favorable impact from higher average earning assets across all regions.

Financial Products’ segment profit was $245 million in the first quarter of 2026, an increase of $30 million, or 14 percent, compared with $215 million in the first quarter of 2025.

The increase was mainly due to a favorable impact from higher average earning assets of $40 million and a favorable impact from higher margins at Insurance Services of $9 million, partially offset by higher SG&A expenses of $22 million.

At the end of the first quarter of 2026, past dues at Cat Financial were 1.39 percent, compared with 1.58 percent at the end of the first quarter of 2025.

Write-offs, net of recoveries, were $29 million for the first quarter of 2026, compared with $20 million for the first quarter of 2025.

As of March 31, 2026, Cat Financial's allowance for credit losses totaled $283 million, or 0.86 percent of finance receivables, compared with $284 million, or 0.86 percent of finance receivables at December 31, 2025.

Corporate Items and Eliminations

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 .

Expense for corporate items and eliminations was $329 million in the first quarter of 2026, a decrease of $86 million from the first quarter of 2025, primarily driven by favorable impacts of segment reporting methodology differences and decreased expenses due to timing differences, partially offset by higher corporate costs and an unfavorable change in fair value adjustments related to deferred compensation plans.

RESTRUCTURING COSTS

15 unchanged sentences

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.

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

Construction Industries – A segment primarily responsible for supporting customers using machinery in infrastructure and building construction applications.

19 unchanged sentences

With respect to operating profit, currency represents the net translation impact on sales and operating costs resulting from changes in foreign currency exchange rates versus the U.S.

Currency only includes the impact on sales and operating profit for the Machinery, Energy & Transportation line of business;

Currency only includes the impact on sales and operating profit for the Machinery, Power & Energy line of business;

currency impacts on Financial Products revenues and operating profit are included in the Financial Products portions of the respective analyses.

3 unchanged sentences

Earning Assets – Assets consisting primarily of total finance receivables net of unearned income, plus equipment on operating leases net of accumulated depreciation at Cat Financial.

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.

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.

1 unchanged sentence

Financial Products’ information relates to the financing to customers and dealers for the purchase and lease of Caterpillar and other equipment.

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.

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

2 unchanged sentences

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.

Latin America – A geographic region including Central and South American countries and Mexico.

Machinery, Energy & Transportation (ME&T) – The company defines ME&T as Caterpillar Inc.

Latin America – A geographic region including Central and South American countries, Caribbean and Mexico.

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 its products.

Machinery, Energy & Transportation Other Operating (Income) Expenses – Comprised primarily of gains/losses on disposal of long-lived assets, gains/losses on divestitures and legal settlements and accruals.

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

Machinery, Power & Energy Other Operating (Income) Expenses – Comprised primarily of gains/losses on disposal of long-lived assets, gains/losses on divestitures and legal settlements and accruals.

Manufacturing Costs – Manufacturing costs exclude the impacts of currency and represent the volume-adjusted change for variable costs and the absolute dollar change for period manufacturing costs.

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Pension and Other Postemployment Benefits (OPEB) – The company’s defined-benefit pension and postretirement benefit plans.

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.

Price Realization – The impact of net price changes excluding currency and new product introductions.

Price realization includes geographic mix of sales, which is the impact of changes in the relative weighting of sales prices between geographic regions.

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

Resource Industries – 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.

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Restructuring costs also include other exit-related costs, which may consist of accelerated depreciation, inventory write-downs, building demolition, equipment relocation and project management costs and LIFO inventory decrement benefits from inventory liquidations at closed facilities, all of which are primarily included in Cost of goods sold.

Sales Volume – With respect to sales and revenues, sales volume represents the impact of changes in the quantities sold for Machinery, Energy & Transportation as well as the incremental sales impact of new product introductions, including emissions-related product updates.

With respect to operating profit, sales volume represents the impact of changes in the quantities sold for Machinery, Energy & Transportation combined with product mix as well as the net operating profit impact of new product introductions, including emissions-related product updates.

Product mix represents the net operating profit impact of changes in the relative weighting of Machinery, Energy & Transportation sales with respect to total sales.

Sales Volume – With respect to sales and revenues, sales volume represents the impact of changes in the quantities sold for Machinery, Power & Energy as well as the incremental sales impact of new product introductions, including emissions-related product updates.

With respect to operating profit, sales volume represents the impact of changes in the quantities sold for Machinery, Power & Energy combined with product mix as well as the net operating profit impact of new product introductions, including emissions-related product updates.

Product mix represents the net operating profit impact of changes in the relative weighting of Machinery, Power & Energy sales with respect to total sales.

The impact of sales volume on segment profit includes inter-segment sales.

Services – Machinery, Energy & Transportation services revenues include, but are not limited to, aftermarket parts and other service-related revenues and exclude most Financial Products revenues, discontinued products and captive dealer services.

Services – Machinery, Power & Energy services revenues include, but are not limited to, aftermarket parts and other service-related revenues and exclude most Financial Products revenues, discontinued products and captive dealer services.

LIQUIDITY AND CAPITAL RESOURCES

Sources of funds

We generate significant capital resources from operating activities, which are the primary source of funding for our ME&T operations.

We generate significant capital resources from operating activities, which are the primary source of funding for our MP&E operations.

Funding for these businesses is also available from commercial paper and long-term debt issuances.

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 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 $1.223 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.

On a consolidated basis, we had positive operating cash flow in the first three months of 2026 and ended the first quarter with $4.072 billion of cash, a decrease of $5.908 billion from year-end 2025.

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

These MP&E securities were $1.257 billion as of March 31, 2026 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 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.

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

Debt related to Financial Products increased $2.034 billion, of which $1.000 billion is related to intercompany borrowings with ME&T.

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.

Consolidated operating cash flow for the first three months of 2026 was $1.870 billion, up $581 million compared to the same period a year ago.

The increase was primarily due to higher profit before taxes adjusted for non-cash items.

Total debt as of March 31, 2026 was $43.066 billion, a decrease of $264 million from year-end 2025.

Debt related to MP&E increased $1 million in the first three months of 2026.

Debt related to Financial Products decreased $257 million.

As of March 31, 2026, 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 MP&E as of March 31, 2026 was $2.875 billion.

Information on our Credit Facility is as follows:

• 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 364-day facility of $3.500 billion (of which $875 million is available to MP&E) expires in August 2026.

• The three-year facility, as amended in August 2025, of $3.000 billion (of which $750 million is available to MP&E) expires in August 2028.

• The five-year facility, as amended in August 2025, of $5.000 billion (of which $1.250 billion is available to MP&E) expires in August 2030.

At March 31, 2026, Caterpillar’s consolidated net worth was $18.730 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 September 30, 2025, Cat Financial’s covenant interest coverage ratio was 1.50 to 1.

At March 31, 2026, Cat Financial’s covenant interest coverage ratio was 1.53 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 periods, required by the Credit Facility.

In addition, at September 30, 2025, Cat Financial’s six-month covenant leverage ratio was 7.16 to 1.

In addition, at March 31, 2026, Cat Financial’s six-month covenant leverage ratio was 8.03 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 September 30, 2025, there were no borrowings under the Credit Facility.

At March 31, 2026, 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 September 30, 2025 were:

September 30, 2025

Our total credit commitments and available credit as of March 31, 2026 were:

March 31, 2026

(Millions of dollars) Consolidated Machinery,

Transportation Financial

Energy Financial

Credit lines available:

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Available credit $ 10,343 $ 3,769 $ 6,574

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

The other external consolidated credit lines with banks as of March 31, 2026 totaled $4.168 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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We receive debt ratings from the major credit rating agencies.

Fitch maintains a "high-A" debt rating, while Moody’s and S&P maintain a “mid-A” debt rating.

In April 2026, Moody's upgraded our debt rating to "high-A".

Fitch and S&P maintain "high-A" and “mid-A” debt ratings, respectively.

A downgrade of our credit ratings by any of the major credit rating agencies could result in increased borrowing costs and could make access to certain credit markets more difficult.

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

In the event economic conditions deteriorate such that access to debt markets becomes unavailable, MP&E’s operations would rely on cash flow from operations, use of existing cash balances, borrowings from Cat Financial and access to our committed credit facilities.

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

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Additional information related to the programs is included in Note 21 – "Supplier finance programs" of Part I, Item 1 "Financial Statements."

Machinery, Energy & Transportation

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;

Machinery, Power & Energy

Net cash provided by operating activities was $1.302 billion in the first three months of 2026, compared with net cash provided of $926 million for the same period in 2025.

The increase was primarily due to higher profit before taxes, adjusted for non-cash items, and changes in other assets and liabilities, excluding tax impacts.

These increases were partially offset by higher 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;

increased activity related to intercompany lending with Financial Products;

and an increase in capital expenditures.

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.

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

Net cash used for investing activities in the first three months of 2026 was $1.392 billion, compared with net cash provided of $30 million in the first three months of 2025.

The change was due to higher investments and acquisitions, primarily due to the acquisition of RPMGlobal Holdings Limited (RPMGlobal), and lower proceeds from maturities and sale of securities.

For additional information related to the acquisition of RPMGlobal, see Note 22 – “Acquisitions” of Part I, Item 1 "Financial Statements."

Net cash used for financing activities during the first three months of 2026 was $5.864 billion, compared with net cash used of $4.432 billion in the same period of 2025.

The change was primarily due to higher payments to purchase common stock.

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

Our top priority is to maintain a strong financial position in support of a mid-A rating.

Next, we intend to fund operational requirements and commitments.

Then, we intend to fund priorities that profitably grow the company and return capital to shareholders through dividend growth and share repurchases.

Additional information on cash deployment is as follows:

Next, we intend to fund operational commitments and strategic growth initiatives assessed using the Operating & Execution Model.

Then, we intend to return capital to shareholders through dividend growth and share repurchases.

Additional information on the resource allocation framework is as follows:

Strong financial position – Our top priority is to maintain a strong financial position in support of a mid-A rating.

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 $1.944 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 $323 million of contributions to our pension and other postretirement benefit plans during the first nine months of 2025.

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

Operating & Execution Model used to assess operational commitments and strategic growth initiatives – Capital expenditures were $723 million during the first three months of 2026, compared to $704 million for the same period in 2025.

We expect MP&E’s capital expenditures in 2026 to be about $3.5 billion.

We made $218 million of contributions to our pension and other postretirement benefit plans during the first three months of 2026.

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

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.

As part of our capital allocation strategy, ME&T free cash flow is a liquidity measure we use to determine the cash generated and available for financing activities including debt repayments, dividends and share repurchases.

We define ME&T free cash flow as cash from ME&T operations less capital expenditures, excluding discretionary pension and other postretirement benefit plan contributions.

A goal of our capital allocation strategy is to return substantially all ME&T free cash flow to shareholders over time in the form of dividends and share repurchases, while maintaining our mid-A rating.

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

We intend to utilize our liquidity and debt capacity to fund initiatives targeted to drive long term profitable growth focused on our three strategic growth pillars.

Our strategic growth pillars are commercial excellence, advanced technology leadership and transforming how we work.

These pillars work together to drive sustainable growth, innovation and operational efficiency for Caterpillar and our customers.

Return to shareholders – Our goal is to return substantially all MP&E free cash flow to shareholders over time in the form of dividends and share repurchases, while maintaining our mid-A rating.

MP&E free cash flow is a liquidity measure we use to determine the cash generated and available for financing activities including debt repayments, dividends and share repurchases.

We define MP&E free cash flow as cash from MP&E operations less capital expenditures, excluding discretionary pension and other postretirement benefit plan contributions.

Each quarter, our Board of Directors reviews the company’s dividend for the applicable quarter.

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 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.

In April 2026, 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 $703 million in the first three months of 2026.

Our share repurchase plans are subject to the company’s resource allocation framework 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.

The timing and amount of future repurchases may vary depending on market conditions and investing priorities.

In May 2022, the Board approved a share repurchase authorization (the 2022 Authorization) of up to $15.0 billion of Caterpillar common stock effective August 1, 2022, with no expiration.

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 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.

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

In the first three months of 2026, we repurchased $5.028 billion of Caterpillar common stock.

As of March 31, 2026, $9.910 billion remained available under the 2024 Authorization.

Our basic shares outstanding as of March 31, 2026 were approximately 461 million.

Financial Products

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.

Net cash provided by operating activities was $346 million in the first three months of 2026, compared with $297 million for the same period in 2025.

Net cash used for investing activities was $135 million in the first three months of 2026, compared with $132 million for the same period in 2025.

The change was primarily due to settlements of undesignated derivatives and investments in securities, mostly offset by portfolio-related activity.

Net cash used for financing activities was $112 million in the first three months of 2026, compared with $71 million for the same period in 2025.

The change was due to net external borrowing activity.

RECENT ACCOUNTING PRONOUNCEMENTS

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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 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.

At the end of the first quarter of 2026, the dollar amount of backlog believed to be firm was approximately $62.7 billion, about $11.5 billion higher than the fourth quarter of 2025.

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

The backlog for large reciprocating engines and turbine products continues to grow within Power & Energy.

Of the total backlog at March 31, 2026, approximately $24.8 billion was not expected to be filled in the following twelve months.

NON-GAAP FINANCIAL MEASURES

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

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

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

entities in 2024.

We do not consider these items indicative of earnings from ongoing business activities and believe the non-GAAP measure provides investors with useful perspective on underlying business results and trends and aids with assessing the company’s period-over-period results.

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

This item consists of (i) restructuring income/costs.

We do not consider this item indicative of earnings from ongoing business activities and believe the non-GAAP measure provides investors with useful perspective on underlying business results and trends and aids with assessing the company’s period-over-period results.

Reconciliations of adjusted results to the most directly comparable GAAP measures are as follows:

(Dollars in millions except per share data) Operating Profit Operating Profit Margin Profit Before Taxes Provision (Benefit) for Income Taxes Profit Profit per Share

Three Months Ended 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 September 30, 2025 - Adjusted

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

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

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

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

Three Months Ended September 30, 2024 - Adjusted

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

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

Three Months Ended March 31, 2026 - U.S.

$ 3,085 17.7 % $ 3,211 $ 670 $ 2,549 $ 5.47

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

Nine Months Ended September 30, 2025 - Adjusted

Restructuring (income) costs 41 0.3 % 41 9 32 0.07

Three Months Ended March 31, 2026 - Adjusted

$ 3,126 18.0 % $ 3,252 $ 679 $ 2,581 $ 5.54

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

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

$ 2,579 18.1 % $ 2,570 $ 574 $ 2,003 $ 4.20

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

entities 164 0.3 % 164 54 110 0.22

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

Nine Months Ended September 30, 2024 - Adjusted

Restructuring (income) costs 32 0.2 % 33 8 25 0.05

Three Months Ended March 31, 2025 - Adjusted

$ 2,611 18.3 % $ 2,603 $ 582 $ 2,028 $ 4.25

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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 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.

This item consists of (i) the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S.

GAAP compensation expense.

We believe the non-GAAP measures will provide investors with useful perspective on underlying business results and trends and aids with assessing the company's period-over-period results.

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

Three Months Ended 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 September 30, 2025 - Adjusted

$ 3,164 $ 845

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

$ 3,098 $ 642 20.7 %

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 September 30, 2024 - Adjusted

$ 3,168 $ 658

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

Three Months Ended March 31, 2026 - U.S.

$ 3,211 $ 670 20.9 %

Changes in estimates related to prior years — (41)

Excess stock-based compensation — 68

Annual effective tax rate, excluding discrete items 3,211 738 23.0 %

Changes in estimates related to prior years — 41

Excess stock-based compensation — (68)

Other restructuring (income) costs 126 29

Nine Months Ended September 30, 2025 - Adjusted

Restructuring (income) costs 41 9

Three Months Ended March 31, 2026 - Adjusted

$ 3,252 $ 679

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

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

$ 2,570 $ 574 22.3 %

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

entities 164 54

Changes in estimates related to prior years — 47

Excess stock-based compensation — 17

Annual effective tax rate, excluding discrete items 2,570 591 23.0 %

Changes in estimates related to prior years — (47)

Excess stock-based compensation — (17)

Other restructuring (income) costs 158 36

Nine Months Ended September 30, 2024 - Adjusted

Restructuring (income) costs 33 8

Three Months Ended March 31, 2025 - Adjusted

$ 2,603 $ 582

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

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

(Millions of dollars) Nine Months Ended September 30,

ME&T net cash provided by operating activities 1

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

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

(Millions of dollars) Three Months Ended March 31,

MP&E net cash provided by operating activities 1

$ 1,302 $ 926

ME&T capital expenditures (1,944) (1,284)

ME&T free cash flow $ 5,801 $ 6,442

1 See reconciliation of ME&T net cash provided by operating activities to consolidated net cash provided by operating activities on pages 77 - 78 .

MP&E capital expenditures (723) (704)

MP&E free cash flow $ 579 $ 222

1 See reconciliation of MP&E net cash provided by operating activities to consolidated net cash provided by operating activities on pages 64 - 65 .

Supplemental Consolidating Data

3 unchanged sentences

and its subsidiaries.

Machinery, Energy & Transportation – We define ME&T as it is presented in the supplemental data as Caterpillar Inc.

Machinery, Power & Energy – 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 it is presented in the supplemental data 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.

(Insurance Services).

Financial Products’ information relates to the financing to customers and dealers for the purchase and lease of Caterpillar and other equipment.

Consolidating Adjustments – Eliminations of transactions between ME&T and Financial Products.

The nature of the ME&T and Financial Products businesses is different, especially with regard to the financial position and cash flow items.

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

The nature of the MP&E and Financial Products businesses is different, especially with regard to the financial position and cash flow items.

Caterpillar management utilizes this presentation internally to highlight these differences.

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

Pages 71 - 78 reconcile ME&T and Financial Products to Caterpillar Inc.

Pages 60 - 65 reconcile MP&E and Financial Products to Caterpillar Inc.

consolidated financial information.

1 unchanged sentence

Supplemental Data for Results of Operations

For the Three Months Ended September 30, 2025

(Millions of dollars)

Supplemental Consolidating Data

Consolidated Machinery,

Transportation Financial

Products Consolidating

Sales and revenues:

Sales of Machinery, Energy & Transportation $ 16,726 $ 16,726 $ — $ —

Revenues of Financial Products 912 — 1,115 (203) 1

Total sales and revenues 17,638 16,726 1,115 (203)

Operating costs:

Cost of goods sold 11,673 11,675 — (2) 2

Selling, general and administrative expenses 1,822 1,608 218 (4) 2

Research and development expenses 555 555 — —

Interest expense of Financial Products 346 — 358 (12) 2

Other operating (income) expenses 190 (114) 336 (32) 2

Total operating costs 14,586 13,724 912 (50)

Operating profit 3,052 3,002 203 (153)

Interest expense excluding Financial Products 133 136 — (3) 3

Other income (expense) 208 25 33 150 4

Consolidated profit before taxes 3,127 2,891 236 —

Provision (benefit) for income taxes 836 773 63 —

Profit of consolidated companies 2,291 2,118 173 —

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

Profit of consolidated and affiliated companies 2,299 2,126 173 —

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

$ 2,300 $ 2,127 $ 173 $ —

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

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

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

4 Elimination of discount recorded by ME&T on receivables sold to Financial Products and of interest earned between ME&T and Financial Products as well as dividends paid by Financial Products to ME&T.

5 Profit attributable to common shareholders.

Caterpillar Inc.

Supplemental Data for Results of Operations

For the Nine Months Ended September 30, 2025

(Millions of dollars)

Supplemental Consolidating Data

Consolidated Machinery, Energy & Transportation Financial

Products Consolidating

Sales and revenues:

Sales of Machinery, Energy & Transportation $ 45,778 $ 45,778 $ — $ —

Revenues of Financial Products 2,678 — 3,244 (566) 1

Total sales and revenues 48,456 45,778 3,244 (566)

Operating costs:

Cost of goods sold 31,445 31,451 — (6) 2

Selling, general and administrative expenses 5,109 4,513 623 (27) 2

Research and development expenses 1,586 1,586 — —

Interest expense of Financial Products 1,008 — 1,026 (18) 2

Other operating (income) expenses 817 (84) 979 (78) 2

Total operating costs 39,965 37,466 2,628 (129)

Operating profit 8,491 8,312 616 (437)

Interest expense excluding Financial Products 375 385 — (10) 3

Other income (expense) 399 (121) 93 427 4

Consolidated profit before taxes 8,515 7,806 709 —

Provision (benefit) for income taxes 2,056 1,878 178 —

Profit of consolidated companies 6,459 5,928 531 —

Equity in profit (loss) of unconsolidated affiliated companies 22 22 — —

Profit of consolidated and affiliated companies 6,481 5,950 531 —

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

$ 6,482 $ 5,952 $ 530 $ —

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

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

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

5 Profit attributable to common shareholders.

Caterpillar Inc.

Supplemental Data for Results of Operations

For the Three Months Ended September 30, 2024

For the Three Months Ended March 31, 2026

(Millions of dollars)

1 unchanged sentence

Consolidated Machinery,

Transportation Financial

Power & Energy Financial

Products Consolidating

Sales and revenues:

Sales of Machinery, Energy & Transportation $ 15,231 $ 15,231 $ — $ —

Sales of Machinery, Power & Energy $ 16,473 $ 16,473 $ — $ —

Revenues of Financial Products 942 — 1,143 (201) 1

17 unchanged sentences

$ 2,549 $ 2,359 $ 190 $ —

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

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

3 Elimination of discount recorded by ME&T on receivables sold to Financial Products and of interest earned between ME&T and Financial Products as well as dividends paid by Financial Products to ME&T.

1 Elimination of Financial Products’ revenues earned from MP&E.

2 Elimination of net expenses recorded between MP&E and Financial Products.

3 Elimination of interest expense recorded between Financial Products and MP&E.

4 Elimination of discount recorded by MP&E on receivables sold to Financial Products and of interest earned between MP&E and Financial Products as well as dividends paid by Financial Products to MP&E.

5 Profit attributable to common shareholders.

1 unchanged sentence

Supplemental Data for Results of Operations

For the Nine Months Ended September 30, 2024

For the Three Months Ended March 31, 2025

(Millions of dollars)

1 unchanged sentence

Consolidated Machinery,

Transportation Financial

Power & Energy Financial

Products Consolidating

Sales and revenues:

Sales of Machinery, Energy & Transportation $ 46,031 $ 46,031 $ — $ —

Sales of Machinery, Power & Energy $ 13,378 $ 13,378 $ — $ —

Revenues of Financial Products 871 — 1,048 (177) 1

17 unchanged sentences

$ 2,003 $ 1,838 $ 165 $ —

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

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

1 Elimination of Financial Products’ revenues earned from MP&E.

2 Elimination of net expenses recorded between MP&E and Financial Products.

3 Elimination of interest expense recorded between Financial Products and MP&E.

5 Profit attributable to common shareholders.

1 unchanged sentence

Supplemental Data for Financial Position

At September 30, 2025

At March 31, 2026

(Millions of dollars)

1 unchanged sentence

Consolidated Machinery,

Transportation Financial

Power & Energy Financial

Products Consolidating

37 unchanged sentences

Total liabilities and shareholders’ equity $ 95,550 $ 57,046 $ 41,587 $ (3,083)

1 Elimination of receivables between ME&T and Financial Products.

2 Reclassification of ME&T’s trade receivables purchased by Financial Products and Financial Products’ wholesale inventory receivables.

3 Elimination of ME&T’s insurance premiums that are prepaid to Financial Products.

1 Elimination of receivables between MP&E and Financial Products.

2 Reclassification of MP&E’s trade receivables purchased by Financial Products and Financial Products’ wholesale inventory receivables.

3 Elimination of MP&E’s insurance premiums that are prepaid to Financial Products.

4 Reclassification of Financial Products' other assets to property, plant and equipment.

5 Reclassification reflecting required netting of deferred tax assets/liabilities by taxing jurisdiction.

5 Elimination of other intercompany assets and liabilities between ME&T and Financial Products.

6 Elimination of payables between ME&T and Financial Products.

7 Reclassification of Financial Products' payables to customer advances.

6 Elimination of other intercompany assets and liabilities between MP&E and Financial Products.

7 Elimination of payables between MP&E and Financial Products.

8 Elimination of prepaid insurance in Financial Products’ other liabilities.

9 Elimination of debt between ME&T and Financial Products.

10 Eliminations associated with ME&T’s investments in Financial Products’ subsidiaries.

9 Elimination of debt between MP&E and Financial Products.

10 Eliminations associated with MP&E’s investments in Financial Products’ subsidiaries.

Caterpillar Inc.

4 unchanged sentences

Consolidated Machinery,

Transportation Financial

Power & Energy Financial

Products Consolidating

37 unchanged sentences

Total liabilities and shareholders’ equity $ 98,585 $ 60,061 $ 41,661 $ (3,137)