What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-08-05 compared with 2026-05-06 · 489 added, 203 removed, 680 unchanged (50% of the section changed)

5 unchanged sentences

Risk Factors of the 2025 Form 10-K .

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.

Highlights for the second quarter of 2026 include:

• Total sales and revenues for the second quarter of 2026 were $20.543 billion, an increase of $3.974 billion, or 24 percent, compared with $16.569 billion in the second quarter of 2025.

Sales were higher across the three primary segments.

• 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.

• Operating profit margin was 20.9 percent for the second quarter of 2026, compared with 17.3 percent for the second quarter of 2025.

Adjusted operating profit margin was 21.9 percent for the second quarter of 2026, compared with 17.6 percent for the second quarter of 2025.

• Second-quarter 2026 profit per share was $7.77, and excluding the items in the table below, adjusted profit per share was $8.17.

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

• Caterpillar ended the second quarter of 2026 with $6.7 billion of enterprise cash.

Highlights for the six months ended June 30, 2026 include:

• Total sales and revenues were $37.958 billion for the six months ended June 30, 2026, an increase of $7.140 billion, or 23 percent, compared with $30.818 billion for the six months ended June 30, 2025.

• Operating profit margin was 19.4 percent for the six months ended June 30, 2026, compared with 17.6 percent for the six months ended June 30, 2025.

Adjusted operating profit margin was 20.1 percent for the six months ended June 30, 2026, compared with 17.9 percent for the six months ended June 30, 2025.

• Profit per share for the six months ended June 30, 2026, was $13.23, and excluding the items in the table below, adjusted profit per share was $13.70.

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

• Enterprise operating cash flow was $6.2 billion for the six months ended June 30, 2026.

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

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

Three Months Ended

June 30, 2026 Three Months Ended

June 30, 2025 Six Months Ended

June 30, 2026 Six Months Ended

June 30, 2025

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

Per Share Profit Before Taxes Profit

Profit $ 4,558 $ 7.77 $ 2,818 $ 4.62 $ 7,769 $ 13.23 $ 5,388 $ 8.82

Restructuring (income) costs 41 0.07 33 0.05

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

139 0.30 — — 139 0.30 — —

Other restructuring (income) costs 63 0.10 56 0.10 104 0.17 89 0.15

Adjusted profit $ 4,760 $ 8.17 $ 2,874 $ 4.72 $ 8,012 $ 13.70 $ 5,477 $ 8.97

A detailed reconciliation of GAAP to non-GAAP financial measures is included on pages 71 - 73 .

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.

Total sales and revenues for the second quarter of 2026 were $20.543 billion, an increase of $3.974 billion, or 24 percent, compared with $16.569 billion in the second quarter of 2025.

The increase was primarily due to higher sales volume of $3.1 billion and favorable price realization of $595 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.

Second-quarter 2026 profit per share was $7.77, compared with $4.62 profit per share in the second quarter of 2025.

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

Profit for the second quarter of 2026 was $3.593 billion, an increase of $1.414 billion, or 65 percent, compared with $2.179 billion for the second quarter of 2025.

The increase was mainly due to the profit impact of higher sales volume.

Trends and Economic Conditions

Outlook for Key End Markets

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.

We continue to see strong momentum in our end markets despite ongoing uncertainty due to geopolitical events.

We are also progressing on our capacity expansion plans, and we expect to increase our throughput in the second half of 2026.

In Power & Energy , our positive outlook for 2026 continues to reflect strong demand in both Power Generation and Oil & Gas.

We continue to 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).

Additionally, prime power demand continues to trend higher for turbines and turbine-related services and for reciprocating engine products and services to support their need for power solutions.

Oil & Gas is expected to grow moderately in 2026 as compared to 2025.

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

We expect continued momentum in demand for reciprocating engine aftermarket parts.

For turbines and turbine-related services used in Oil & Gas applications, sales are expected to grow while the backlog remains healthy, with continued solid order and inquiry activity.

Demand for products in Industrial applications is expected to grow moderately 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.

1 unchanged sentence

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.

Non-residential investment in critical infrastructure programs, heavy construction and data centers is contributing to overall construction spending levels.

We expect dealer rental fleet loading will continue to grow in 2026 compared to 2025, including additional fleet loading for Major Projects in the third quarter of 2026.

In EAME , Europe is expected to remain stable in 2026 as compared to 2025, supported by non-residential construction, and construction activity in Africa is projected to remain strong.

While the Middle East continues to be challenged, we currently anticipate only a limited impact on sales of equipment to end users in EAME.

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

1 unchanged sentence

Growth in Latin America is expected to continue.

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

In Resource Industries , we are seeing continued positive momentum with robust order rates and 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.

1 unchanged sentence

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.

We now expect rebuild activity in 2026 to increase moderately 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.

Third-Quarter 2026 Company Trends and Expectations

In the third quarter of 2026 as compared to the third 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 across all three primary segments in the third quarter of 2026 as compared to the third quarter of 2025.

In the third quarter of 2026 as compared to the third quarter of 2025, we anticipate strong sales growth in Power & Energy, driven by continued strength in Power Generation and in Oil & Gas, and modest growth in Industrial applications as it continues to recover.

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.

We expect higher sales volume to be primarily driven by higher sales of equipment to end users, partially offset by the impact from changes in dealer inventories .

We expect a slight increase in dealer inventory in the third quarter of 2026, but modestly lower than the increase in the third quarter of 2025.

In Resource Industries, we expect strong sales growth primarily due to higher sales volume.

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

We also expect services revenues growth in the third quarter of 2026 as compared to the third quarter of 2025.

We anticipate favorable price realization in Resource Industries in the third quarter of 2026 as compared to the third quarter of 2025, but to a lesser extent than the second quarter of 2026 as compared to the second quarter of 2025.

We anticipate tariff costs of around $600 million in the third quarter of 2026, which is similar to what was incurred in the third quarter of 2025.

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

In the third quarter of 2026 as compared to the third quarter of 2025, we expect the profit impact of higher sales volume and favorable price realization to be partially offset by unfavorable manufacturing costs and higher selling, general and administrative (SG&A) and research and development (R&D) expenses.

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

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

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

Full-Year 2026 Company Trends and Expectations

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.

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 now anticipate sales and revenues growth in the mid-to-high teens for 2026 as compared to 2025.

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

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

We expect higher sales and revenues in the second half of 2026 as compared to the first half of 2025 following the typical seasonable trend.

We expect a more typical decrease in Construction Industries’ dealer inventory of over $1.0 billion in the fourth quarter of 2026.

We also expect Construction Industries’ dealer inventory will be higher at year-end 2026 as compared to year-end 2025.

As a result, we expect an unfavorable impact from changes in dealer inventories for Construction Industries’ sales volume in the second half of 2026 as compared to the second half of 2025.

Excluding the expected IEEPA tariff recoveries in the second quarter of 2026, we now expect 2026 tariff costs of around $2.2 billion.

Our outlook does not include any additional IEEPA tariff recoveries in the second half of 2026.

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

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

We anticipate our estimated annual effective tax rate to be 23.0 percent, excluding discrete items.

5 unchanged sentences

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.

Supreme Court ruled that tariffs imposed under the IEEPA on goods imported into the United States were unauthorized.

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 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.

Risk factors are disclosed within Item 1A.

5 unchanged sentences

Consolidated Results of Operations

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

THREE MONTHS ENDED JUNE 30, 2026, COMPARED WITH THREE MONTHS ENDED JUNE 30, 2025

CONSOLIDATED SALES AND REVENUES

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).

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

Total sales and revenues for the second quarter of 2026 were $20.543 billion, an increase of $3.974 billion, or 24 percent, compared with $16.569 billion in the second quarter of 2025.

The increase was primarily due to higher sales volume of $3.1 billion and favorable price realization of $595 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.

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

Sales were higher across the three primary segments.

North America sales increased 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 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.

North America sales increased 39 percent 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.

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

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

EAME sales increased 15 percent mainly due to higher sales volume and favorable currency impacts primarily related to the euro.

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

Sales increased 4 percent in Asia/Pacific primarily due to favorable currency impacts mainly related to the Australian dollar and favorable price realization.

Total dealer inventory increased $600 million during the second quarter of 2026, compared with an increase of $100 million during the second quarter of 2025.

Construction Industries' dealer inventory increased by $400 million during the second quarter of 2026, compared with a $300 million decrease during the second 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.

2 unchanged sentences

Sales and Revenues by Segment

(Millions of dollars) First Quarter 2025 Sales

Realization Currency Inter-Segment / Other First Quarter 2026 $

(Millions of dollars) Second Quarter 2025 Sales

Realization Currency Inter-Segment / Other Second Quarter 2026 $

Power & Energy $ 7,037 $ 736 $ 212 $ 53 $ 200 $ 8,238 $ 1,201 17 %

13 unchanged sentences

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

First Quarter 2026

Second Quarter 2026

Power & Energy $ 4,182 30 % $ 373 (16 %) $ 1,348 3 % $ 892 9 % $ 6,795 17 % $ 1,443 16 % $ 8,238 17 %

9 unchanged sentences

Consolidated Sales and Revenues $ 12,094 37 % $ 1,821 10 % $ 3,625 14 % $ 3,003 4 % $ 20,543 24 % $ — — % $ 20,543 24 %

First Quarter 2025

Second Quarter 2025

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

8 unchanged sentences

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

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

1 Includes revenues from Machinery, Power & Energy o f $210 m illion and $172 million in the second quarter of 2026 and 2025 , respectively.

CONSOLIDATED OPERATING PROFIT

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).

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

Operating profit for the second quarter of 2026 was $4.295 billion, an increase of $1.435 billion, or 50 percent, compared with $2.860 billion in the second quarter of 2025.

The increase was primarily due to the profit impact of higher sales volume.

Operating profit in the second quarter of 2026 included $392 million of expected IEEPA tariff recoveries.

Operating profit margin was 20.9 percent for the second quarter of 2026, compared with 17.3 percent for the second quarter of 2025.

Profit (Loss) by Segment

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

(Millions of dollars) Second Quarter 2026 Second Quarter 2025 $ Change % Change

Power & Energy $ 2,027 $ 1,554 $ 473 30 %

10 unchanged sentences

Other Profit/Loss and Tax Items

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

• Interest expense excluding Financial Products in the second quarter of 2026 was $135 million, compared with $126 million in the second 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.

• Other income (expense) in the second quarter of 2026 was income of $398 million, compared with income of $84 million in the second quarter of 2025.

The change was primarily driven by favorable impacts from foreign currency, total return swap contracts and investment and interest income.

• The effective tax rate for the second quarter of 2026 was 23.1 percent compared to 23.0 percent for the second quarter of 2025.

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

A discrete tax benefit of $26 million was recorded in the second quarter of 2026, compared with a $1 million benefit in the second quarter of 2025, for the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S.

GAAP compensation expense.

In addition, the estimated annual effective tax rate in the second quarter of 2026 excluded the impact of second quarter losses of $139 million for the divestiture of certain non-U.S.

entities with no related tax benefit.

Please see a reconciliation of GAAP to non-GAAP financial measures on pages 71 - 73 .

1 unchanged sentence

Sales by Application

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

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

Power Generation $ 3,098 $ 2,407 $ 691 29 %

4 unchanged sentences

Total Sales $ 8,238 $ 7,037 $ 1,201 17 %

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.

• 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.

Power & Energy’s total sales were $8.238 billion in the second quarter of 2026, an increase of $1.201 billion, or 17 percent, compared with $7.037 billion in the second quarter of 2025.

The increase was primarily due to higher sales volume of $736 million, favorable price realization of $212 million and higher inter-segment sales of $200 million.

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

• Oil and Gas – Sales increased in reciprocating engines used in gas compression applications and in reciprocating engine aftermarket parts, partially offset by lower sales of reciprocating engines used in well servicing 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.

• Industrial – Sales increased primarily in North America and EAME.

Power & Energy’s segment profit was $2.027 billion in the second quarter of 2026, an increase of $473 million, or 30 percent, compared with $1.554 billion in the second quarter of 2025.

The increase was mainly due to the profit impact of higher sales volume of $457 million and favorable price realization of $212 million, partially offset by unfavorable manufacturing costs of $149 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.

Unfavorable manufacturing costs largely reflected increased period manufacturing costs.

Power & Energy’s segment profit as a percent of total sales was 24.6 percent in the second quarter of 2026, compared with 22.1 percent in the second quarter of 2025.

Construction Industries

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.

Construction Industries’ total sales were $8.346 billion in the second quarter of 2026, an increase of $2.156 billion, or 35 percent, compared with $6.190 billion in the second quarter of 2025.

The increase in sales was mainly due to higher sales volume of $1.8 billion and favorable price realization of $309 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.

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

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

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

• 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.

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

• 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.

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.

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

Construction Industries’ segment profit was $1.947 billion in the second quarter of 2026, an increase of $703 million, or 57 percent, compared with $1.244 billion in the second quarter of 2025.

The increase was primarily due to the profit impact of higher sales volume.

Construction Industries’ segment profit as a percent of total sales was 23.3 percent in the second quarter of 2026, compared with 20.1 percent in the second quarter of 2025.

Resource Industries

Sales by Industry

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

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

Mining, HC and Q&A* $ 3,685 $ 3,024 $ 661 22 %

4 unchanged sentences

*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.

Resource Industries’ total sales were $4.648 billion in the second quarter of 2026, an increase of $762 million, or 20 percent, compared with $3.886 billion in the second quarter of 2025.

The increase was primarily due to higher sales volume.

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.

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

• Rail – Sales increased due to higher international locomotive deliveries.

Sales also increased in rail services.

Resource Industries’ segment profit was $693 million in the second quarter of 2026, an increase of $130 million, or 23 percent, compared with $563 million in the second quarter of 2025.

The increase was mainly due to the profit impact of higher sales volume of $269 million, partially offset by unfavorable manufacturing costs of $158 million.

Unfavorable manufacturing costs primarily reflected increased period manufacturing costs.

Resource Industries’ segment profit as a percent of total sales was 14.9 percent in the second quarter of 2026, compared with 14.5 percent in the second quarter of 2025.

Financial Products Segment

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.

Financial Products’ segment revenues were $1.145 billion in the second quarter of 2026, an increase of $103 million, or 10 percent, compared with $1.042 billion in the second 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.

Financial Products’ segment profit was $328 million in the second quarter of 2026, an increase of $80 million, or 32 percent, compared with $248 million in the second quarter of 2025.

The increase was mainly due to favorable impacts from higher average earning assets of $44 million, equity securities at Insurance Services of $22 million and higher margins at Insurance Services of $21 million, partially offset by higher provision for credit losses at Cat Financial of $22 million.

At the end of the second quarter of 2026, past dues at Cat Financial were 1.31 percent, compared with 1.62 percent at the end of the second quarter of 2025.

Write-offs, net of recoveries, were $20 million for the second quarter of 2026 compared with $18 million for the second quarter of 2025.

As of June 30, 2026, Cat Financial's allowance for credit losses totaled $294 million, or 0.84 percent of finance receivables, compared with $283 million, or 0.86 percent of finance receivables at March 31, 2026.

The allowance for credit losses at year-end 2025 was $284 million, or 0.86 percent of finance receivables.

Corporate Items and Eliminations

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.

Expense for corporate items and eliminations was $518 million in the second quarter of 2026, a decrease of $84 million from the second quarter of 2025.

This decrease was due to timing differences, which included the majority of the expected IEEPA tariff recoveries recorded in the second quarter of 2026, and favorable impacts of segment reporting methodology differences.

This was partially offset by higher corporate costs, higher restructuring costs and an unfavorable change in fair value adjustments related to deferred compensation plans.

In the second quarter of 2026, restructuring costs increased primarily due to the divestiture of certain non-U.S.

SIX MONTHS ENDED JUNE 30, 2026 COMPARED WITH SIX MONTHS ENDED JUNE 30, 2025

CONSOLIDATED SALES AND REVENUES

The chart above graphically illustrates reasons for the change in consolidated sales and revenues between the six months ended June 30, 2025 (at left) and the six months ended June 30, 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 were $37.958 billion for the six months ended June 30, 2026, an increase of $7.140 billion, or 23 percent, compared with $30.818 billion for the six months ended June 30, 2025.

The increase was primarily due to higher sales volume of $5.4 billion and favorable price realization of $1.0 billion.

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 six months ended June 30, 2026 than during the six months ended June 30, 2025.

Sales were higher across the three primary segments.

North America sales increased 37 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 six months ended June 30, 2026 than during the six months ended June 30, 2025.

Sales increased 7 percent in Latin America mainly due to higher sales volume.

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

EAME sales increased 17 percent primarily due to higher sales volume and favorable currency impacts mainly related to the euro.

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

Dealer inventory increased more during the six months ended June 30, 2026, than during the six months ended June 30, 2025.

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

Dealer inventory increased $2.6 billion during the six months ended June 30, 2026, compared with an increase of $200 million during the six months ended June 30, 2025.

Construction Industries' dealer inventory increased $1.9 billion during the six months ended June 30, 2026, compared with a decrease of $400 million during the six months ended June 30, 2025.

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

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

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

Sales and Revenues by Segment

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

Realization Currency Inter-Segment / Other Six Months Ended June 30, 2026 $

Power & Energy $ 12,820 $ 1,576 $ 320 $ 164 $ 389 $ 15,269 $ 2,449 19 %

Construction Industries 11,374 3,214 665 217 37 15,507 4,133 36 %

Resource Industries 7,547 724 36 143 (5) 8,445 898 12 %

All Other Segment 155 2 1 — 3 161 6 4 %

Corporate Items and Eliminations (2,844) (85) (1) 26 (424) (3,328) (484)

Machinery, Power & Energy Sales 29,052 5,431 1,021 550 — 36,054 7,002 24 %

Financial Products Segment 2,049 — — — 192 2,241 192 9 %

Corporate Items and Eliminations (283) — — — (54) (337) (54)

Financial Products Revenues 1,766 — — — 138 1,904 138 8 %

Consolidated Sales and Revenues $ 30,818 $ 5,431 $ 1,021 $ 550 $ 138 $ 37,958 $ 7,140 23 %

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

Six Months Ended June 30, 2026

Power & Energy $ 7,682 31 % $ 651 (15 %) $ 2,489 7 % $ 1,686 13 % $ 12,508 20 % $ 2,761 16 % $ 15,269 19 %

Construction Industries 9,357 49 % 1,326 27 % 2,655 29 % 2,025 7 % 15,363 36 % 144 35 % 15,507 36 %

Resource Industries 4,066 24 % 1,243 4 % 1,273 16 % 1,696 (6 %) 8,278 12 % 167 (3 %) 8,445 12 %

All Other Segment 16 14 % 1 — % 5 150 % 5 (38 %) 27 13 % 134 2 % 161 4 %

Corporate Items and Eliminations (106) 1 (5) (12) (122) (3,206) (3,328)

Machinery, Power & Energy Sales 21,015 37 % 3,222 7 % 6,417 17 % 5,400 4 % 36,054 24 % — — % 36,054 24 %

Financial Products Segment 1,506 9 % 233 14 % 270 9 % 232 9 % 2,241 1

9 % — — % 2,241 9 %

Corporate Items and Eliminations (197) (42) (54) (44) (337) — (337)

Financial Products Revenues 1,309 8 % 191 16 % 216 2 % 188 9 % 1,904 8 % — — % 1,904 8 %

Consolidated Sales and Revenues $ 22,324 35 % $ 3,413 8 % $ 6,633 17 % $ 5,588 4 % $ 37,958 23 % $ — — % $ 37,958 23 %

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

All Other Segment 14 — 2 8 24 131 155

Corporate Items and Eliminations (43) (4) (5) (10) (62) (2,782) (2,844)

Machinery, Power & Energy Sales 15,372 3,006 5,475 5,199 29,052 — 29,052

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

Corporate Items and Eliminations (168) (39) (37) (39) (283) — (283)

Financial Products Revenues 1,217 165 211 173 1,766 — 1,766

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

1 Includes revenues from Machinery, Power & Energy of $393 million and $335 million for the six months ended June 30, 2026 and 2025, respectively.

CONSOLIDATED OPERATING PROFIT

The chart above graphically illustrates reasons for the change in consolidated operating profit between the six months ended June 30, 2025 (at left) and the six months ended June 30, 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, Power & Energy’s other operating (income) expenses.

Operating profit for the six months ended June 30, 2026, was $7.380 billion, an increase of $1.941 billion, or 36 percent, compared with $5.439 billion for the six months ended June 30, 2025.

The increase was primarily due to the profit impact of higher sales volume.

Operating profit for the six months ended June 30, 2026 included $392 million of expected IEEPA tariff recoveries.

Operating profit margin was 19.4 percent for the six months ended June 30, 2026, compared with 17.6 percent for the six months ended June 30, 2025.

Profit (Loss) by Segment

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

Power & Energy $ 3,477 $ 2,842 $ 635 22 %

Construction Industries 3,482 2,268 1,214 54 %

Resource Industries 1,071 1,186 (115) (10 %)

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

Corporate Items and Eliminations (774) (967) 193

Machinery, Power & Energy 7,213 5,310 1,903 36 %

Financial Products Segment 573 463 110 24 %

Corporate Items and Eliminations (73) (50) (23)

Financial Products 500 413 87 21 %

Consolidating Adjustments (333) (284) (49)

Consolidated Operating Profit $ 7,380 $ 5,439 $ 1,941 36 %

Other Profit/Loss and Tax Items

• Interest expense excluding Financial Products for the six months ended June 30, 2026, was $269 million, compared with $242 million for the six months ended June 30, 2025.

The increase was primarily due to higher average debt outstanding.

• Other income (expense) for the six months ended June 30, 2026, was income of $658 million, compared with income of $191 million for the six months ended June 30, 2025.

The change was primarily driven by favorable impacts from foreign currency, total return swap contracts and investment and interest income.

• 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.

Excluding the discrete items discussed below, the estimated annual effective tax rate was 23.0 percent for the six months ended June 30, 2026 and June 30, 2025.

A discrete tax benefit of $94 million was recorded in the six months ended June 30, 2026 for the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S.

GAAP compensation expense, compared with $18 million for the six months ended June 30, 2025.

In addition, the 2026 estimated annual effective tax rate excluded the impact of losses of $139 million for the divestiture of certain non-U.S.

entities with no related tax benefit.

Please see a reconciliation of GAAP to non-GAAP financial measures on pages 71 - 73 .

Power & Energy

Sales by Application

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

Power Generation $ 5,915 $ 4,403 $ 1,512 34 %

Oil and Gas 3,467 3,125 342 11 %

Industrial 3,126 2,920 206 7 %

External Sales 12,508 10,448 2,060 20 %

Inter-segment 2,761 2,372 389 16 %

Total Sales $ 15,269 $ 12,820 $ 2,449 19 %

Power & Energy’s total sales were $15.269 billion for the six months ended June 30, 2026, an increase of $2.449 billion, or 19 percent, compared with $12.820 billion for the six months ended June 30, 2025.

The increase was primarily due to higher sales volume of $1.6 billion and higher inter-segment sales of $389 million.

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

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

Sales also increased in turbines and turbine-related services.

• Industrial – Sales increased primarily in North America and EAME.

Power & Energy’s profit was $3.477 billion for the six months ended June 30, 2026, an increase of $635 million, or 22 percent, compared with $2.842 billion for the six months ended June 30, 2025.

The increase was mainly due to the profit impact of higher sales volume of $892 million and favorable price realization of $320 million, partially offset by unfavorable manufacturing costs of $495 million.

Unfavorable manufacturing costs primarily reflected increased period manufacturing costs.

Power & Energy’s profit as a percent of total sales was 22.8 percent for the six months ended June 30, 2026, compared with 22.2 percent for the six months ended June 30, 2025.

Construction Industries

Construction Industries’ total sales were $15.507 billion for the six months ended June 30, 2026, an increase of $4.133 billion, or 36 percent, compared with $11.374 billion for the six months ended June 30, 2025.

The increase was primarily due to higher sales volume of $3.2 billion and favorable price realization of $665 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 during the six months ended June 30, 2026, compared with a decrease during the six months ended June 30, 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 and higher sales of equipment to end users.

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

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

• 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 due to favorable price realization, higher sales volume and favorable currency impacts primarily related to the Australian dollar.

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

Construction Industries’ profit was $3.482 billion for the six months ended June 30, 2026, an increase of $1.214 billion, or 54 percent, compared with $2.268 billion for the six months ended June 30, 2025.

The increase was primarily due to the profit impact of higher sales volume.

Construction Industries’ profit as a percent of total sales was 22.5 percent for the six months ended June 30, 2026, compared with 19.9 percent for the six months ended June 30, 2025.

Resource Industries

Sales by Industry

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

Mining, HC and Q&A* $ 6,639 $ 5,866 $ 773 13 %

Rail 1,639 1,509 130 9 %

External Sales 8,278 7,375 903 12 %

Inter-segment 167 172 (5) (3 %)

Total Sales $ 8,445 $ 7,547 $ 898 12 %

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

Resource Industries’ total sales were $8.445 billion for the six months ended June 30, 2026, an increase of $898 million, or 12 percent, compared with $7.547 billion for the six months ended June 30, 2025.

The increase was primarily due to higher sales volume.

The increase in sales volume was mainly due to 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.

• Rail – Sales increased due to higher international locomotive deliveries.

Sales also increased in rail services.

Resource Industries’ profit was $1.071 billion for the six months ended June 30, 2026, a decrease of $115 million, or 10 percent, compared with $1.186 billion for the six months ended June 30, 2025.

The decrease was mainly due to unfavorable manufacturing costs of $376 million and higher SG&A/R&D expenses of $113 million, partially offset by the profit impact of higher sales volume of $333 million and favorable price realization of $36 million.

Unfavorable manufacturing costs largely reflected higher tariff costs.

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

Resource Industries’ profit as a percent of total sales was 12.7 percent for the six months ended June 30, 2026, compared with 15.7 percent for the six months ended June 30, 2025.

Financial Products Segment

Financial Products’ segment revenues were $2.241 billion for the six months ended June 30, 2026, an increase of $192 million, or 9 percent, compared with $2.049 billion for the six months ended June 30, 2025.

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

Financial Products’ segment profit was $573 million for the six months ended June 30, 2026, an increase of $110 million, or 24 percent, compared with $463 million for the six months ended June 30, 2025.

The increase was mainly due to favorable impacts from higher average earning assets of $85 million and higher margins at Insurance Services of $30 million.

Corporate Items and Eliminations

Expense for corporate items and eliminations was $847 million for the six months ended June 30, 2026, a decrease of $170 million from the six months ended June 30, 2025, mainly driven by decreased expenses due to timing differences, which included the majority of the expected IEEPA tariff recoveries recorded in the six months ended June 30, 2026, and favorable impacts of segment reporting methodology differences, partially offset by higher corporate costs, higher restructuring costs and an unfavorable change in fair value adjustments related to deferred compensation plans.

For the six months ended June 30, 2026, restructuring costs increased primarily due to the divestiture of certain non-U.S.

RESTRUCTURING COSTS

110 unchanged sentences

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.

Funding for these businesses is also available from commercial paper, revolving credit facility 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 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.

On a consolidated basis, we had positive operating cash flow in the first six months of 2026 and ended the second quarter with $6.713 billion of cash, a decrease of $3.267 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.

These MP&E securities were $1.517 billion as of June 30, 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 three months of 2026 was $1.870 billion, up $581 million compared to the same period a year ago.

Consolidated operating cash flow for the first six months of 2026 was $6.241 billion, up $1.830 billion 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.

Total debt as of June 30, 2026 was $45.146 billion, an increase of $1.816 billion from year-end 2025.

Debt related to MP&E decreased $7 million in the first six months of 2026.

Debt related to Financial Products increased $1.839 billion.

As of June 30, 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 June 30, 2026 was $2.875 billion.

Information on our Credit Facility is as follows:

2 unchanged sentences

• 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.

At June 30, 2026, Caterpillar’s consolidated net worth was $19.463 billion, which was above the $9.000 billion required covenant in the Credit Facility.

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

At March 31, 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 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.

At June 30, 2026, Cat Financial’s covenant interest coverage ratio was 1.54 to 1.

In addition, at June 30, 2026, Cat Financial’s six-month covenant leverage ratio was 7.96 to 1.

In the event Caterpillar or Cat Financial does not meet one or more of their respective financial covenants under the Credit Facility in the future (and are unable to obtain a consent or waiver), the syndicate of banks may terminate the commitments allocated to the party that does not meet its covenants.

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

At March 31, 2026, there were no borrowings under the Credit Facility.

At June 30, 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.

1 unchanged sentence

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

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

March 31, 2026

Our total credit commitments and available credit as of June 30, 2026 were:

June 30, 2026

(Millions of dollars) Consolidated Machinery,

7 unchanged sentences

Available credit $ 10,014 $ 3,774 $ 6,240

The other external consolidated credit lines with banks as of March 31, 2026 totaled $4.168 billion.

The other external consolidated credit lines with banks as of June 30, 2026 totaled $4.250 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.

1 unchanged sentence

We receive debt ratings from the major credit rating agencies.

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.

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

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.

7 unchanged sentences

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.

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.

Net cash provided by operating activities was $7.011 billion in the first six months of 2026, compared with net cash provided of $3.862 billion for the same period in 2025.

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

favorable changes to customer advances, accounts payable and accrued wages, salaries and employee benefits;

and lower cash taxes paid.

These increases were partially offset by unfavorable changes in receivables and inventories.

Net cash used for investing activities in the first six months of 2026 was $2.195 billion, compared with net cash used of $1.530 billion in the first six months of 2025.

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

These changes were partially offset by changes in activity related to intercompany lending with Financial Products.

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.

Net cash used for financing activities during the first six months of 2026 was $8.158 billion, compared with net cash used of $4.050 billion in the same period of 2025.

The change was primarily due to higher payments to purchase common stock and lower proceeds from debt issued.

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.

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We track a diverse group of financial metrics that focus on liquidity, leverage, cash flow and margins which align with our 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.

Operating & Execution Model used to assess operational commitments and strategic growth initiatives – Capital expenditures were $1.313 billion during the first six months of 2026, compared to $1.287 billion 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 made $282 million of contributions to our pension and other postretirement benefit plans during the first six months of 2026.

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

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

In comparison, we made $276 million of contributions to our pension and other postretirement benefit plans during the first six 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.

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

In April 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.

In June 2026, the Board of Directors approved an eight percent increase in the quarterly dividend to $1.63 per share, and we continue to expect our strong financial position to support the dividend.

Dividends paid totaled $1.399 billion in the first six 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.

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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.

In the first six months of 2026, we deployed $6.522 billion of cash for repurchases of Caterpillar common stock.

As of June 30, 2026, $8.415 billion remained available under the 2024 Authorization.

Our basic shares outstanding as of June 30, 2026 were approximately 460 million.

Financial Products

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.

Net cash provided by operating activities was $614 million in the first six months of 2026, compared with $597 million for the same period in 2025.

Net cash used for investing activities was $2.580 billion in the first six months of 2026, compared with $990 million for the same period in 2025.

The change was primarily due to portfolio-related activity.

Net cash provided by financing activities was $2.077 billion in the first six months of 2026, compared with $670 million for the same period in 2025.

The change was due to increased external borrowing activity, partially offset by decreased intercompany borrowings from MP&E.

RECENT ACCOUNTING PRONOUNCEMENTS

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Order Backlog

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.

At the end of the second quarter of 2026, the dollar amount of backlog believed to be firm was approximately $72.1 billion, about $9.4 billion higher than the first quarter of 2026.

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.

Of the total backlog at June 30, 2026, approximately $29.2 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 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.

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) restructuring costs related to the divestiture of certain non-U.S.

entities in 2026 and (ii) other restructuring income/costs.

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.

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 March 31, 2026 - U.S.

Three Months Ended June 30, 2026 - U.S.

$ 4,295 20.9 % $ 4,558 $ 1,055 $ 3,593 $ 7.77

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

Three Months Ended March 31, 2026 - Adjusted

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

entities 139 0.7 % 139 — 139 0.30

Other restructuring (income) costs 63 0.3 % 63 15 48 0.10

Three Months Ended June 30, 2026 - Adjusted

$ 4,497 21.9 % $ 4,760 $ 1,070 $ 3,780 $ 8.17

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

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

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

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

Three Months Ended March 31, 2025 - Adjusted

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

Three Months Ended June 30, 2025 - Adjusted

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

Six Months Ended June 30, 2026 - U.S.

$ 7,380 19.4 % $ 7,769 $ 1,725 $ 6,142 $ 13.23

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

entities 139 0.4 % 139 — 139 0.30

Other restructuring (income) costs 104 0.3 % 104 24 80 0.17

Six Months Ended June 30, 2026 - Adjusted

$ 7,623 20.1 % $ 8,012 $ 1,749 $ 6,361 $ 13.70

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

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

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

Six Months Ended June 30, 2025 - Adjusted

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

We believe it is important to separately disclose our annual effective tax rate, excluding discrete items for our results to be meaningful to our readers.

The annual effective tax rate is discussed using non-GAAP financial measures that exclude the effects of amounts associated with discrete items recorded fully in the quarter they occur.

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

These items consist of (i) restructuring costs related to the divestiture of certain non-U.S.

entities in 2026 and (ii) the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S.

GAAP compensation expense.

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

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

Three Months Ended June 30, 2026 - U.S.

$ 4,558 $ 1,055 23.1 %

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

entities 139 —

Excess stock-based compensation — 26

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Excess stock-based compensation — (26)

Restructuring (income) costs 41 9

Three Months Ended March 31, 2026 - Adjusted

Other restructuring (income) costs 63 15

Three Months Ended June 30, 2026 - Adjusted

$ 4,760 $ 1,070

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

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

$ 2,818 $ 646 23.0 %

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Excess stock-based compensation — (1)

Restructuring (income) costs 33 8

Three Months Ended March 31, 2025 - Adjusted

Other restructuring (income) costs 56 12

Three Months Ended June 30, 2025 - Adjusted

$ 2,874 $ 658

Six Months Ended June 30, 2026 - U.S.

$ 7,769 $ 1,725 22.2 %

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

entities 139 —

Excess stock-based compensation — 94

Annual effective tax rate, excluding discrete items 7,908 1,819 23.0 %

Excess stock-based compensation — (94)

Other restructuring (income) costs 104 24

Six Months Ended June 30, 2026 - Adjusted

$ 8,012 $ 1,749

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

$ 5,388 $ 1,220 22.6 %

Excess stock-based compensation — 18

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

Excess stock-based compensation — (18)

Other restructuring (income) costs 89 20

Six Months Ended June 30, 2025 - Adjusted

$ 5,477 $ 1,240

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,

(Millions of dollars) Six Months Ended June 30,

MP&E net cash provided by operating activities 1

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Supplemental Data for Results of Operations

For the Three Months Ended March 31, 2026

For the Three Months Ended June 30, 2026

(Millions of dollars)

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Supplemental Data for Results of Operations

For the Three Months Ended March 31, 2025

For the Six Months Ended June 30, 2026

(Millions of dollars)

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Caterpillar Inc.

Supplemental Data for Results of Operations

For the Three Months Ended June 30, 2025

(Millions of dollars)

Supplemental Consolidating Data

Consolidated Machinery,

Power & Energy Financial

Products Consolidating

Sales and revenues:

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

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

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

Operating costs:

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

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

Research and development expenses 551 551 — —

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

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

Total operating costs 13,709 12,879 869 (39)

Operating profit 2,860 2,795 212 (147)

Interest expense excluding Financial Products 126 130 — (4) 3

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

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

Provision (benefit) for income taxes 646 585 61 —

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

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

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

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

$ 2,179 $ 1,987 $ 192 $ —

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

2 Elimination of net expenses recorded by MP&E paid to 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.

Caterpillar Inc.

Supplemental Data for Results of Operations

For the Six Months Ended June 30, 2025

(Millions of dollars)

Supplemental Consolidating Data

Consolidated Machinery,

Power & Energy Financial

Products Consolidating

Sales and revenues:

Sales of Machinery, Power & Energy $ 29,052 $ 29,052 $ — $ —

Revenues of Financial Products 1,766 — 2,129 (363) 1

Total sales and revenues 30,818 29,052 2,129 (363)

Operating costs:

Cost of goods sold 19,772 19,776 — (4) 2

Selling, general and administrative expenses 3,287 2,905 405 (23) 2

Research and development expenses 1,031 1,031 — —

Interest expense of Financial Products 662 — 668 (6) 2

Other operating (income) expenses 627 30 643 (46) 2

Total operating costs 25,379 23,742 1,716 (79)

Operating profit 5,439 5,310 413 (284)

Interest expense excluding Financial Products 242 249 — (7) 3

Other income (expense) 191 (146) 60 277 4

Consolidated profit before taxes 5,388 4,915 473 —

Provision (benefit) for income taxes 1,220 1,105 115 —

Profit of consolidated companies 4,168 3,810 358 —

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

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

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

$ 4,182 $ 3,825 $ 357 $ —

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.

Caterpillar Inc.

Supplemental Data for Financial Position

At March 31, 2026

At June 30, 2026

(Millions of dollars)

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Supplemental Data for Cash Flow

For the Three Months Ended March 31, 2026

For the Six Months Ended June 30, 2026

(Millions of dollars)

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Provision (benefit) for deferred income taxes 644 666 (22) —

(Gain) loss on divestiture 139 139 — —

Other (22) (74) (271) 323 1

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Investments and acquisitions (net of cash acquired) (802) (802) — —

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

Proceeds from maturities and sale of securities 734 395 339 —

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Payments to purchase common stock (6,522) (6,522) — —

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

Payments on intercompany borrowings (original maturities greater than three months) — (48) — 48 3

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Supplemental Data for Cash Flow

For the Three Months Ended March 31, 2025

For the Six Months Ended June 30, 2025

(Millions of dollars)

27 unchanged sentences

Proceeds from sale of finance receivables 18 — 18 —

Collections of intercompany receivables (original maturities greater than 3 months) — — 7 (7) 3

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

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

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

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Dividends paid (1,336) (1,336) — —

Common stock issued, including treasury shares reissued (64) (64) — —

Common stock issued, and other stock compensation transactions, net (59) (59) — —

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

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

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

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

47 unchanged sentences

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

What changed 10-Q

Item 2. Management’s Discussion and Analysis