What changed in this filing

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Item 1. Financial Statements

2026-08-05 compared with 2026-05-06 · 341 added, 114 removed, 1202 unchanged (27% of the section changed)

3 unchanged sentences

(Dollars in millions except per share data)

Three Months Ended March 31,

Three Months Ended June 30,

Sales and revenues:

30 unchanged sentences

(Dollars in millions)

Three Months Ended March 31,

Three Months Ended June 30,

Profit of consolidated and affiliated companies $ 3,593 $ 2,179

5 unchanged sentences

Total other comprehensive income (loss), net of tax 14 521

Comprehensive income attributable to shareholders $ 3,607 $ 2,700

See accompanying notes to Consolidated Financial Statements.

Caterpillar Inc.

Consolidated Statement of Results of Operations

(Dollars in millions except per share data)

Six Months Ended June 30,

Sales and revenues:

Sales of Machinery, Power & Energy $ 36,054 $ 29,052

Revenues of Financial Products 1,904 1,766

Total sales and revenues 37,958 30,818

Operating costs:

Cost of goods sold 24,087 19,772

Selling, general and administrative expenses 3,834 3,287

Research and development expenses 1,153 1,031

Interest expense of Financial Products 707 662

Other operating (income) expenses 797 627

Total operating costs 30,578 25,379

Operating profit 7,380 5,439

Interest expense excluding Financial Products 269 242

Other income (expense) 658 191

Consolidated profit before taxes 7,769 5,388

Provision (benefit) for income taxes 1,725 1,220

Profit of consolidated companies 6,044 4,168

Equity in profit (loss) of unconsolidated affiliated companies 97 14

Profit of consolidated and affiliated companies 6,141 4,182

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

$ 6,142 $ 4,182

Profit per common share $ 13.29 $ 8.85

Profit per common share – diluted 2

$ 13.23 $ 8.82

Weighted-average common shares outstanding (millions)

– Basic 462.0 472.4

1 Profit attributable to common shareholders.

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

See accompanying notes to Consolidated Financial Statements.

Caterpillar Inc .

Consolidated Statement of Comprehensive Income

(Dollars in millions)

Six Months Ended June 30,

Profit of consolidated and affiliated companies $ 6,141 $ 4,182

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

Foreign currency translation ( 97 ) 623

Pension and other postretirement benefits 1 ( 2 )

Derivative financial instruments 25 120

Available-for-sale securities ( 24 ) 46

Total other comprehensive income (loss), net of tax ( 95 ) 787

Comprehensive income 6,046 4,969

65 unchanged sentences

interests Total

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

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

Profit (loss) of consolidated and affiliated companies — — 2,179 — — 2,179

Foreign currency translation, net of tax — — — 435 — 435

Pension and other postretirement benefits, net of tax — — — ( 1 ) — ( 1 )

Derivative financial instruments, net of tax — — — 63 — 63

Available-for-sale securities, net of tax — — — 24 — 24

Dividends declared 1

— — ( 1,375 ) — — ( 1,375 )

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

Stock-based compensation expense 86 — — — — 86

Common shares repurchased:

— ( 828 ) — — — ( 828 )

Other 14 ( 8 ) — — ( 1 ) 5

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

Three Months Ended June 30, 2026

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

Profit (loss) of consolidated and affiliated companies — — 3,593 — — 3,593

Foreign currency translation, net of tax — — — ( 50 ) — ( 50 )

Pension and other postretirement benefits, net of tax — — — 1 — 1

Derivative financial instruments, net of tax — — — 65 — 65

Available-for-sale securities, net of tax — — — ( 2 ) — ( 2 )

Dividends declared 1

— — ( 1,449 ) — — ( 1,449 )

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

( 51 ) 27 — — — ( 24 )

Stock-based compensation expense 92 — — — — 92

Common shares repurchased:

— ( 1,244 ) — — — ( 1,244 )

Outstanding authorized accelerated share repurchase ( 250 ) — — — — ( 250 )

Other 11 ( 9 ) — — — 2

Balance at June 30, 2026 $ 5,654 $ ( 54,533 ) $ 70,141 $ ( 1,867 ) $ ( 1 ) $ 19,394

1 Dividends per share of common stock of $ 3.14 and $ 2.92 were declared in the three months ended June 30, 2026 and 2025, respectively.

2 See Note 12 for additional information.

See accompanying notes to Consolidated Financial Statements.

Caterpillar Inc.

Consolidated Statement of Changes in Shareholders’ Equity

(Dollars in millions)

stock Treasury

business Accumulated

comprehensive

income (loss) Noncontrolling

interests Total

Six Months Ended June 30, 2025

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

5 unchanged sentences

Dividends declared 1

— — ( 1,374 ) — — ( 1,374 )

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

5 unchanged sentences

Other 24 ( 33 ) — — ( 1 ) ( 10 )

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

Three Months Ended March 31, 2026

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

Six Months Ended June 30, 2026

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

1 unchanged sentence

Foreign currency translation, net of tax — — — ( 97 ) — ( 97 )

Pension and other postretirement benefits, net of tax — — — 1 — 1

Derivative financial instruments, net of tax — — — 25 — 25

Available-for-sale securities, net of tax — — — ( 24 ) — ( 24 )

Dividends declared 1

— — ( 1,449 ) — — ( 1,449 )

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

5 unchanged sentences

Other 17 ( 41 ) — — — ( 24 )

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

Balance at June 30, 2026 $ 5,654 $ ( 54,533 ) $ 70,141 $ ( 1,867 ) $ ( 1 ) $ 19,394

1 Dividends per share of common stock of $ 3.14 and $ 2.92 were declared in the six months ended June 30, 2026 and 2025, respectively.

2 See Note 12 for additional information.

3 unchanged sentences

(Dollars in millions)

Three Months Ended March 31,

Six Months Ended June 30,

Cash flow from operating activities:

3 unchanged sentences

Provision (benefit) for deferred income taxes 644 ( 110 )

(Gain) loss on divestiture 139 —

Other ( 22 ) 398

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

25 unchanged sentences

Payments to purchase common stock ( 6,522 ) ( 4,488 )

Excise tax paid on purchases of common stock ( 49 ) ( 73 )

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

- Machinery, Power & Energy — 1,976

- Financial Products 7,363 3,731

20 unchanged sentences

Basis of presentation

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

In the opinion of management, the accompanying unaudited financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of (a) the consolidated results of operations for the three and six months ended June 30, 2026 and 2025, (b) the consolidated comprehensive income for the three and six months ended June 30, 2026 and 2025, (c) the consolidated financial position at June 30, 2026 and December 31, 2025, (d) the consolidated changes in shareholders’ equity for the three and six months ended June 30, 2026 and 2025 and (e) the consolidated cash flow for the six months ended June 30, 2026 and 2025.

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

8 unchanged sentences

See Note 11 for further discussions on a consolidated VIE.

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

Long-term receivables - trade and other in the Statement of Financial Position includes $ 1.2 billion and $ 377 million at June 30, 2026 and December 31, 2025, respectively, for recoveries from overpayments made during the importation process.

Current assets:

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

Receivables - trade and other includes $ 130 million at June 30, 2026.

There were no amounts included in Current assets:

Receivables - trade and other at December 31, 2025.

The recoveries are subject to review and processing by U.S.

Customs and Border Protection (CBP), and timing of the recoveries is uncertain.

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.

During 2025 and until CBP ceased collecting IEEPA tariffs in 2026, the company's total IEEPA tariff costs were approximately $ 1.0 billion.

During the second quarter of 2026, CBP launched the Consolidated Administration and Processing of Entries (CAPE) system, which enabled the submission of certain IEEPA refund claims.

For both the three and six months ended June 30, 2026, the company recorded $ 392 million of expected IEEPA tariff recoveries for claims submitted and accepted through the CAPE system.

These recoveries were deemed probable and were recorded in Current assets:

Receivables - trade and other within the Consolidated Statement of Financial Position and in Cost of goods sold within the Consolidated Statement of Results of Operations.

The company continues to assess the availability, timing and amounts of additional claim submissions for the remaining amounts paid under IEEPA, as these remain uncertain and were not deemed to be probable as of June 30, 2026.

New accounting guidance

15 unchanged sentences

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

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

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

Trade receivables from dealers and end users were $ 10,920 million, $ 9,402 million and $ 7,864 million as of June 30, 2026, December 31, 2025 and December 31, 2024, respectively.

Long-term trade receivables from dealers and end users were $ 1,274 million, $ 1,006 million and $ 640 million as of June 30, 2026, December 31, 2025 and December 31, 2024, respectively.

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

2 unchanged sentences

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

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

Contract assets were $ 277 million, $ 297 million and $ 238 million as of June 30, 2026, December 31, 2025 and December 31, 2024, respectively.

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

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

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

Contract liabilities were $ 7,280 million, $ 4,678 million and $ 2,745 million as of June 30, 2026, December 31, 2025 and December 31, 2024, respectively.

We reduce the contract liability when revenue is recognized.

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

During the three and six months ended June 30, 2026, we recognized $ 507 million and $ 1,267 million, respectively, of revenue that was recorded as a contract liability at the beginning of 2026.

During the three and six months ended June 30, 2025, we recognized $ 462 million and $ 1,145 million, respectively, of revenue that was recorded as a contract liability at the beginning of 2025.

We provide discounts to dealers through merchandising programs.

4 unchanged sentences

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

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

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

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

As a result of differences between actual and estimated payments and changes in estimates, we recognized a decrease in revenue of $ 201 million and $ 454 million during the three and six months ended June 30, 2025, respectively, related to prior period sales.

The change in revenue during the three and six months ended June 30, 2026 related to prior period sales was inconsequential.

As of June 30, 2026, we have entered into contracts with dealers and end users for which sales have not been recognized as we have not satisfied our performance obligations and transferred control of the products.

The dollar amount of unsatisfied performance obligations for contracts with an original duration greater than one year is $ 44.1 billion, with about one-third of the amount expected to be completed and revenue recognized in the twelve months following June 30, 2026.

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

4 unchanged sentences

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

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

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

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

We recognized pretax stock-based compensation expense of $ 92 million and $ 146 million for the three and six months ended June 30, 2026, respectively, and $ 86 million and $ 131 million for the three and six months ended June 30, 2025, respectively.

The following table illustrates the type and fair value of the stock-based compensation awards granted during the six months ended June 30, 2026 and 2025:

Six Months Ended June 30, 2026 Six Months Ended June 30, 2025

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

3 unchanged sentences

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

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

The following table provides the assumptions used in determining the fair value of the stock options granted during the six months ended June 30, 2026 and 2025:

Weighted-average dividend yield 1.82 % 2.13 %

6 unchanged sentences

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

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

The following table provides the assumptions used in determining the fair value of the PRSUs granted during the six months ended June 30, 2026 and 2025, respectively:

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

Risk-free interest rate 3.46 % 3.90 %

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

As of June 30, 2026, total remaining unrecognized compensation expense related to non-vested stock-based compensation awards was $ 356 million, which will be amortized over the weighted-average remaining requisite service period of approximately 1.9 years.

Derivative financial instruments and risk management

28 unchanged sentences

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

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

As of June 30, 2026, the maximum term of these outstanding contracts at inception was approximately 60 months.

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

35 unchanged sentences

(Millions of dollars) Fair Value

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Liabilities 2

11 unchanged sentences

2 Liabilities are classified as Accrued expenses or Other liabilities.

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

The total notional amounts of the derivative instruments as of June 30, 2026 and December 31, 2025 were $ 29.4 billion and $ 29.3 billion, respectively.

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

1 unchanged sentence

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

(Millions of dollars) Three Months Ended March 31,

(Millions of dollars) Three Months Ended June 30,

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

16 unchanged sentences

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

(Millions of dollars) Six Months Ended June 30,

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

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

2026 2025 2026 2025 2026 2025

Cash Flow Hedges

Foreign exchange contracts $ — $ — $ ( 133 ) $ 217 $ ( 133 ) $ 72

Interest rate contracts — — 34 13 3 2

Fair Value Hedges

Foreign exchange contracts — — ( 8 ) ( 2 ) ( 7 ) ( 1 )

Interest rate contracts ( 6 ) ( 38 ) — — — —

Undesignated Hedges

Foreign exchange contracts 56 ( 97 ) — — — —

Commodity contracts 38 5 — — — —

Total return swap contracts 164 30 — — — —

Total $ 252 $ ( 100 ) $ ( 107 ) $ 228 $ ( 137 ) $ 73

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

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

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

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

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

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

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

June 30, 2026 December 31, 2025 June 30, 2026 December 31, 2025

Long-term debt due within one year $ 501 $ 602 $ 1 $ 3

6 unchanged sentences

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

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

As of June 30, 2026 and December 31, 2025, no cash collateral was received or pledged under the master netting agreements.

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

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

(Millions of dollars) June 30, 2026 December 31, 2025

Assets Liabilities Assets Liabilities

3 unchanged sentences

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

(Millions of dollars) March 31,

(Millions of dollars) June 30,

2026 December 31,

7 unchanged sentences

Intangible assets were comprised of the following:

March 31, 2026

June 30, 2026

(Millions of dollars) Gross

Amount Accumulated

Amortization Net

Amortization 1

Customer relationships $ 495 $ ( 342 ) $ 153

9 unchanged sentences

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

1 For the six months ended June 30, 2026, $ 1.6 billion of intangible assets were fully amortized and have been removed.

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

See Note 22 for details on the acquisition.

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

Amortization expense for the three and six months ended June 30, 2026 was $ 46 million and $ 87 million, respectively.

Amortization expense for the three and six months ended June 30, 2025 was $ 43 million and $ 87 million, respectively.

Amortization expense related to intangible assets is expected to be:

(Millions of dollars)

Remaining Nine Months of 2026 2027 2028 2029 2030 Thereafter

Remaining Six Months of 2026 2027 2028 2029 2030 Thereafter

$ 36 $ 67 $ 59 $ 55 $ 53 $ 150

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

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

No goodwill was impaired during the six months ended June 30, 2026 or 2025.

The changes in carrying amount of goodwill by reportable segment for the six months ended June 30, 2026 were as follows:

(Millions of dollars) December 31,

1 unchanged sentence

Other Adjustments 1

Power & Energy

Goodwill $ 2,054 $ — $ ( 10 ) $ 2,044

Construction Industries

6 unchanged sentences

Net goodwill 2,986 546 — 7 3,539

Power & Energy

Goodwill 39 — ( 1 ) 38

Consolidated total

14 unchanged sentences

Available-for-sale debt securities

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

(Millions of dollars) Cost

13 unchanged sentences

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

March 31, 2026

June 30, 2026

Less than 12 months 1

28 unchanged sentences

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

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

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

In addition, we did not expect credit-related losses on these investments as of June 30, 2026.

The cost basis and fair value of available-for-sale debt securities at June 30, 2026, by contractual maturity, are shown below.

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

March 31, 2026

June 30, 2026

(Millions of dollars) Cost Basis Fair Value

7 unchanged sentences

Total debt securities – available-for-sale $ 3,971 $ 3,956

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

For the three months ended June 30, 2026 and 2025, proceeds from available-for-sale debt securities were $ 324 million and $ 402 million, respectively.

For the six months ended June 30, 2026 and 2025, proceeds from available-for-sale debt securities were $ 668 million and $ 1,313 million, respectively.

For the three months ended June 30, 2026 and 2025, the net unrealized gains (losses) for equity securities held at June 30, 2026 and 2025 were $ 36 million and $ 24 million, respectively.

For the six months ended June 30, 2026 and 2025, the net unrealized gains (losses) for equity securities held at June 30, 2026 and 2025 were $ 30 million and $ 27 million, respectively.

Postretirement benefits

1 unchanged sentence

Postretirement

March 31, March 31, March 31,

June 30, June 30, June 30,

(Millions of dollars) 2026 2025 2026 2025 2026 2025

7 unchanged sentences

$ ( 40 ) $ ( 27 ) $ ( 1 ) $ ( 1 ) $ 37 $ 43

For the six months ended:

Components of net periodic benefit cost:

Service cost $ — $ — $ 24 $ 23 $ 28 $ 32

Interest cost 272 306 60 55 53 61

Expected return on plan assets ( 352 ) ( 360 ) ( 88 ) ( 80 ) ( 6 ) ( 4 )

Amortization of prior service cost (credit) — — 1 — — ( 2 )

Net periodic benefit cost (benefit) 1

$ ( 80 ) $ ( 54 ) $ ( 3 ) $ ( 2 ) $ 75 $ 87

1 The service cost component is included in Operating costs.

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

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

We made $ 64 million and $ 282 million of contributions to our pension and other postretirement plans during the three and six months ended June 30, 2026, respectively.

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

1 unchanged sentence

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

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(Millions of dollars) 2026 2025 2026 2025

$ 299 $ 190 $ 489 $ 344

Plans 38 35 75 68

$ 337 $ 225 $ 564 $ 412

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

2 unchanged sentences

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

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(Millions of dollars) 2026 2025 2026 2025

6 unchanged sentences

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

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

The maximum potential amount of future payments (undiscounted and without reduction for any amounts possibly recoverable) that we could be required to make under the guarantees was $ 669 million and $ 458 million at June 30, 2026 and December 31, 2025, respectively.

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

7 unchanged sentences

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

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

As of June 30, 2026 and December 31, 2025, the SPC’s assets of $ 1.25 billion and $ 1.19 billion, respectively, were primarily comprised of loans to dealers, and the SPC’s liabilities of $ 1.25 billion and $ 1.19 billion, respectively, were primarily comprised of commercial paper.

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

4 unchanged sentences

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

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

Three Months Ended March 31,

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

Six Months Ended June 30,

(Millions of dollars) 2026 2025

5 unchanged sentences

Computations of profit per share:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(Dollars in millions except per share data) 2026 2025 2026 2025

5 unchanged sentences

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

462.5 471.5 464.3 474.5

Profit per share of common stock:

2 unchanged sentences

$ 7.77 $ 4.62 $ 13.23 $ 8.82

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

Shares outstanding as of June 30, (in millions) 459.7 468.5

1 Profit attributable to common shareholders.

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

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

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

For both the three and six months ended June 30, 2026, we excluded 0.1 million of outstanding stock-based compensation awards from the computation of diluted earnings per share because the effect would have been antidilutive.

For the three and six months ended June 30, 2025, we excluded 0.6 million and 0.4 million of outstanding stock-based compensation awards, respectively, from the computation of diluted earnings per share because the effect would have been antidilutive.

For the three and six months ended June 30, 2026, we repurchased 1.4 million and 7.0 million shares of Caterpillar common stock, respectively, at an aggregate cost of $ 1.2 billion and $ 4.9 billion, respectively.

For the three and six months ended June 30, 2025, we repurchased 2.7 million and 10.2 million shares of Caterpillar common stock, respectively, at an aggregate cost of $ 0.8 billion and $ 3.6 billion, respectively.

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

1 unchanged sentence

We advanced the $ 4.50 billion and received approximately 4.8 million shares of Caterpillar common stock, approximately 70 % of the estimated final number of shares to be repurchased, with a value of $ 3.15 billion.

In the second quarter of 2026, we entered into ASR agreements to repurchase an aggregate of $ 1.00 billion of common stock.

We advanced the $ 1.00 billion and received approximately 0.8 million shares of Caterpillar common stock, approximately 75 % of the estimated final number of shares to be repurchased, with a value of $ 750 million.

The final number of shares to ultimately be repurchased will be based on the average of the daily volume-weighted average prices of our common stock during the term of the ASR agreements, less a discount and subject to adjustments pursuant to the terms and conditions of the ASR agreements.

1 unchanged sentence

The remaining $ 1.60 billion was evaluated as unsettled forward contracts and was classified as a reduction to Common stock within the Consolidated Statement of Financial Position.

In July 2026, we were notified of the early termination of the second quarter 2026 ASR agreements.

Upon final settlement, we received approximately 0.3 million additional shares.

Accumulated other comprehensive income (loss)

1 unchanged sentence

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

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(Millions of dollars) 2026 2025 2026 2025

39 unchanged sentences

Ending balance $ ( 12 ) $ ( 8 ) $ ( 12 ) $ ( 8 )

Total AOCI ending balance at March 31,

Total AOCI ending balance at June 30,

$ ( 1,867 ) $ ( 1,684 ) $ ( 1,867 ) $ ( 1,684 )

22 unchanged sentences

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

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

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

GAAP compensation expense.

The effective tax rate for the three months ended June 30, 2026 was 23.1 percent compared to 23.0 percent for the three months ended June 30, 2025.

The effective tax rate for the six months ended June 30, 2026 was 22.2 percent compared to 22.6 percent for the six months ended June 30, 2025.

Segment information

137 unchanged sentences

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

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

Timing differences also include certain corporate-managed receivables and accruals that are recognized in periods different from the related operating costs included in segment profit.

The three and six months ended June 30, 2026 and 2025, sales and revenues by geographic region reconciled to consolidated sales and revenues were as follows:

Sales and Revenues by Geographic Region

(Millions of dollars) North

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

Three Months Ended March 31, 2026

External Sales and Revenues Inter-Segment Sales and Revenues Total Sales and Revenues

Three Months Ended June 30, 2026

Power & Energy $ 4,182 $ 373 $ 1,348 $ 892 $ 6,795 $ 1,443 $ 8,238

6 unchanged sentences

Total Sales and Revenues $ 12,094 $ 1,821 $ 3,625 $ 3,003 $ 20,543 $ — $ 20,543

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Power & Energy $ 3,225 $ 442 $ 1,306 $ 821 $ 5,794 $ 1,243 $ 7,037

6 unchanged sentences

Total Sales and Revenues $ 8,851 $ 1,656 $ 3,180 $ 2,882 $ 16,569 $ — $ 16,569

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

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

1 Includes revenues from Power & Energy, Construction Industries, Resource Industries, and All Other Segment of $ 210 million and $ 172 million for the three months ended June 30, 2026 and 2025, respectively.

Sales and Revenues by Geographic Region

(Millions of dollars) North

External Sales and Revenues Inter-Segment Sales and Revenues Total Sales and Revenues

Six Months Ended June 30, 2026

Power & Energy $ 7,682 $ 651 $ 2,489 $ 1,686 $ 12,508 $ 2,761 $ 15,269

Construction Industries 9,357 1,326 2,655 2,025 15,363 144 15,507

Resource Industries 4,066 1,243 1,273 1,696 8,278 167 8,445

Financial Products Segment 1,506 233 270 232 2,241 1

Total sales and revenues from reportable segments 22,611 3,453 6,687 5,639 38,390 3,072 41,462

All Other Segment 16 1 5 5 27 134 161

Corporate Items and Eliminations ( 303 ) ( 41 ) ( 59 ) ( 56 ) ( 459 ) ( 3,206 ) ( 3,665 )

Total Sales and Revenues $ 22,324 $ 3,413 $ 6,633 $ 5,588 $ 37,958 $ — $ 37,958

Six Months Ended June 30, 2025

Power & Energy $ 5,850 $ 768 $ 2,332 $ 1,498 $ 10,448 $ 2,372 $ 12,820

Construction Industries 6,273 1,044 2,052 1,898 11,267 107 11,374

Resource Industries 3,278 1,198 1,094 1,805 7,375 172 7,547

Financial Products Segment 1,385 204 248 212 2,049 1

Total sales and revenues from reportable segments 16,786 3,214 5,726 5,413 31,139 2,651 33,790

All Other Segment 14 — 2 8 24 131 155

Corporate Items and Eliminations ( 211 ) ( 43 ) ( 42 ) ( 49 ) ( 345 ) ( 2,782 ) ( 3,127 )

Total Sales and Revenues $ 16,589 $ 3,171 $ 5,686 $ 5,372 $ 30,818 $ — $ 30,818

1 Includes revenues from Power & Energy, Construction Industries, Resource Industries, and All Other Segment of $ 393 million and $ 335 million for the six months ended June 30, 2026 and 2025, respectively.

For the three and six months ended June 30, 2026 and 2025, Power & Energy external sales by end user application were as follows:

Power & Energy External Sales

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(Millions of dollars) 2026 2025 2026 2025

3 unchanged sentences

Power & Energy External Sales $ 6,795 $ 5,794 $ 12,508 $ 10,448

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

For the three and six months ended June 30, 2026 and 2025, Resource Industries external sales by industry were as follows:

Resource Industries External Sales

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(Millions of dollars) 2026 2025 2026 2025

Mining, HC and Q&A* $ 3,685 $ 3,024 $ 6,639 $ 5,866

Rail 883 765 1,639 1,509

Resource Industries External Sales $ 4,568 $ 3,789 $ 8,278 $ 7,375

2 unchanged sentences

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

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

Sales and revenues $ 8,238 $ 8,346 $ 4,648 $ 1,145 $ 22,377

4 unchanged sentences

Segment Profit $ 2,027 $ 1,947 $ 693 $ 328 $ 4,995

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Sales and revenues $ 7,037 $ 6,190 $ 3,886 $ 1,042 $ 18,155

10 unchanged sentences

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

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

GAAP and segment reporting, certain other (income) expense items, and equity in (profit) loss of unconsolidated affiliated companies.

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

Profit from Reportable Segments

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

Six Months Ended June 30, 2026

Sales and revenues $ 15,269 $ 15,507 $ 8,445 $ 2,241 $ 41,462

Cost of goods sold 10,280 10,989 6,297 — 27,566

1,518 1,014 1,039 438 4,009

Other segment items 3

( 6 ) 22 38 1,230 1,284

Segment Profit $ 3,477 $ 3,482 $ 1,071 $ 573 $ 8,603

Six Months Ended June 30, 2025

Sales and revenues $ 12,820 $ 11,374 $ 7,547 $ 2,049 $ 33,790

Cost of goods sold 8,585 8,177 5,463 — 22,225

1,421 921 904 399 3,645

Other segment items 3

( 28 ) 8 ( 6 ) 1,187 1,161

Segment Profit $ 2,842 $ 2,268 $ 1,186 $ 463 $ 6,759

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

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

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

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

3 Other segment items for each reportable segment primarily includes:

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

GAAP and segment reporting, certain other (income) expense items, and equity in (profit) loss of unconsolidated affiliated companies.

Reconciliation of Consolidated profit before taxes:

(Millions of dollars) Three Months Ended March 31,

(Millions of dollars) Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Total profit from reportable segments $ 4,995 $ 3,609 $ 8,603 $ 6,759

14 unchanged sentences

Reconciliation of Assets:

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

(Millions of dollars) June 30, 2026 December 31, 2025

Assets from reportable segments:

16 unchanged sentences

(Millions of dollars)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Depreciation and amortization from reportable segments:

11 unchanged sentences

(Millions of dollars)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Capital expenditures from reportable segments:

17 unchanged sentences

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

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

The average original term of Cat Financial's customer finance receivables portfolio was approximately 51 months with an average remaining term of approximately 28 months as of June 30, 2026.

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

1 unchanged sentence

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

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

During the three and six months ended June 30, 2026, Cat Financial's forecasts reflected a continuation of global market uncertainty and actions by global central banks aimed at balancing economic growth and managing inflation.

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

4 unchanged sentences

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

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

Therefore, Cat Financial made no adjustments to historical loss rates during the three and six months ended June 30, 2026.

Classes of finance receivables

11 unchanged sentences

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

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

(Millions of dollars) Three Months Ended June 30, 2026 Three Months Ended June 30, 2025

Customer Dealer Total Customer Dealer Total

6 unchanged sentences

Ending balance $ 282 $ 4 $ 286 $ 281 $ 4 $ 285

Six Months Ended June 30, 2026 Six Months Ended June 30, 2025

Customer Dealer Total Customer Dealer Total

Beginning balance $ 273 $ 4 $ 277 $ 258 $ 4 $ 262

Write-offs ( 88 ) — ( 88 ) ( 57 ) — ( 57 )

Recoveries 39 — 39 19 — 19

Provision for credit losses 1

58 — 58 54 — 54

Other — — — 7 — 7

Ending balance $ 282 $ 4 $ 286 $ 281 $ 4 $ 285

Finance Receivables $ 23,900 $ 1,548 $ 25,448 $ 22,842 $ 1,378 $ 24,220

1 unchanged sentence

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

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

(Millions of dollars) Three Months Ended June 30, 2026

2026 2025 2024 2023 2022 Prior Revolving

4 unchanged sentences

Latin America — 2 2 2 1 1 — 8

Total $ — $ 10 $ 11 $ 11 $ 7 $ 4 $ 3 $ 46

Three Months Ended June 30, 2025

2025 2024 2023 2022 2021 Prior Revolving

Receivables Total

North America $ — $ 3 $ 6 $ 2 $ 2 $ 2 $ 2 $ 17

EAME — 1 2 — 1 — — 4

Asia/Pacific — 1 1 1 — — — 3

Latin America — — 1 2 — — — 3

Total $ — $ 5 $ 10 $ 5 $ 3 $ 2 $ 2 $ 27

Six Months Ended June 30, 2026

2026 2025 2024 2023 2022 Prior Revolving

Receivables Total

North America $ — $ 9 $ 14 $ 13 $ 6 $ 5 $ 6 $ 53

EAME — 3 2 2 1 1 — 9

Asia/Pacific — 4 3 1 1 — — 9

Latin America — 3 4 4 2 1 — 14

Mining — 3 — — — — — 3

Power — — — — — — — —

Total $ — $ 22 $ 23 $ 20 $ 10 $ 7 $ 6 $ 88

Three Months Ended March 31, 2025

Six Months Ended June 30, 2025

2025 2024 2023 2022 2021 Prior Revolving

12 unchanged sentences

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

(Millions of dollars) March 31, 2026

(Millions of dollars) June 30, 2026

2026 2025 2024 2023 2022 Prior Revolving

67 unchanged sentences

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

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

As of June 30, 2026 and December 31, 2025, Cat Financial's total amortized cost of finance receivables within the Dealer portfolio segment was current.

Non-accrual finance receivables

5 unchanged sentences

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

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

(Millions of dollars) June 30, 2026 December 31, 2025

Amortized Cost Amortized Cost

8 unchanged sentences

Total $ 178 $ 23 $ 163 $ 28

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

There were no finance receivables in Cat Financial's Dealer portfolio segment on non-accrual status as of June 30, 2026 and December 31, 2025.

Modifications

4 unchanged sentences

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

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

During the three and six months ended June 30, 2026 and 2025, there were no finance receivable modifications granted to borrowers experiencing financial difficulty in Cat Financial's Dealer portfolio segment.

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

(Millions of dollars) Three Months Ended March 31,

(Millions of dollars) Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Amortized cost of finance receivables modified $ 20 $ 16 $ 31 $ 20

1 unchanged sentence

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

(In months) Three Months Ended March 31,

(In months) Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Weighted average extension to term of modified contracts 9 14 10 13

1 unchanged sentence

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

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

Defaults of loans modified in the prior twelve months were not significant during the three and six months ended June 30, 2026 and 2025.

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

34 unchanged sentences

See Note 5 for additional information.

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

March 31, 2026

Assets and liabilities measured on a recurring basis at fair value included in our Consolidated Statement of Financial Position as of June 30, 2026 and December 31, 2025 were as follows:

June 30, 2026

(Millions of dollars)

21 unchanged sentences

Foreign currency contracts - net — 163 — — 163

Commodity contracts - net — 31 — — 31

Total return swap contracts - net — 39 — — 39

Total assets $ 398 $ 4,148 $ — $ 175 $ 4,721

1 unchanged sentence

Interest rate contracts - net $ — $ 103 $ — $ — $ 103

Total return swap contracts - net — 41 — — 41

Commodity contracts - net — 2 — — 2

Total liabilities $ — $ 105 $ — $ — $ 105

29 unchanged sentences

Total liabilities $ — $ 41 $ — $ — $ 41

In addition to the amounts above, certain Cat Financial loans are subject to measurement at fair value on a nonrecurring basis and are classified as Level 3 measurements.

In addition to the amounts above, certain Cat Financial loans are subject to measurement at fair value on a non-recurring basis and are classified as Level 3 measurements.

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

1 unchanged sentence

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

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

Cat Financial had loans carried at fair value of $ 68 million and $ 63 million as of June 30, 2026 and December 31, 2025, respectively.

Fair values of financial instruments

20 unchanged sentences

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

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

(Millions of dollars) Carrying

7 unchanged sentences

Financial Products 29,410 29,415 27,103 27,204 2

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

1 Represents finance leases and failed sale leasebacks of $ 6,834 million and $ 7,189 million at June 30, 2026 and December 31, 2025, respectively.

Other income (expense)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(Millions of dollars) 2026 2025 2026 2025

1 unchanged sentence

Foreign exchange gains (losses) 1

14 ( 125 ) 50 ( 143 )

License fee income 34 37 66 72

9 unchanged sentences

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

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

(Millions of dollars) Three Months Ended March 31,

Restructuring costs for the three and six months ended June 30, 2026 and 2025 were as follows:

(Millions of dollars) Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Employee separations 1

$ 34 $ 10 $ 69 $ 27

Divestitures 1

Total restructuring (income) costs $ 202 $ 59 $ 243 $ 92

1 Recognized in Other operating (income) expenses.

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

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

2 Represents costs related to our restructuring programs, primarily for inventory write-downs and project management, which are primarily recognized in Cost of goods sold, and long-lived asset impairments, which are recognized in Other operating (income) expenses.

The restructuring costs for the six months ended June 30, 2026 were related to restructuring actions across the company, including the divestiture of certain non-U.S.

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

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

4 unchanged sentences

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

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

The amount of obligations outstanding that are confirmed as valid to the participating financial institutions for suppliers who voluntarily participate in the Programs, included in Accounts payable in the Consolidated Statement of Financial Position, were $ 1.15 billion and $ 936 million at June 30, 2026 and December 31, 2025, respectively.

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

8 unchanged sentences

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

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

Goodwill of $ 546 million, of which $ 523 million is expected to be deductible for income tax purposes, represented the excess of the consideration transferred over the net assets acquired and is attributable to the estimated future economic benefits arising from other assets acquired that could not be individually identified and separately recognized.

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

3 unchanged sentences

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

What changed 10-Q

Item 1. Financial Statements