CATERPILLAR INC 10-Q

Item 1. Financial Statements Caterpillar Inc. Consolidated Statement of Results of Operations (Unaudited) (Dollars in millions except per share data) Three Months Ended June 30, 2026 2025 Sales and revenues: Sales of Machinery, Power & Energy $ 19,581 $ 15,674 Revenues of Financial Products 962 895 Total sales and revenues 20,543 16,569 Operating costs: Cost of goods sold 12,781 10,807 Selling, general and administrative expenses 2,018 1,694 Research and development expenses 616 551 Interest expense of Financial Products 362 336 Other operating (income) expenses 471 321 Total operating costs 16,248 13,709 Operating profit 4,295 2,860 Interest expense excluding Financial Products 135 126 Other income (expense) 398 84 Consolidated profit before taxes 4,558 2,818 Provision (benefit) for income taxes 1,055 646 Profit of consolidated companies 3,503 2,172 Equity in profit (loss) of unconsolidated affiliated companies 90 7 Profit of consolidated and affiliated companies 3,593 2,179 Less: Profit (loss) attributable to noncontrolling interests — — Profit 1 $ 3,593 $ 2,179 Profit per common share $ 7.80 $ 4.64 Profit per common share – diluted 2 $ 7.77 $ 4.62 Weighted-average common shares outstanding (millions) – Basic 460.4 469.7 – Diluted 2 462.5 471.5 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. 3 Table of Contents Caterpillar Inc . Consolidated Statement of Comprehensive Income (Unaudited) (Dollars in millions) Three Months Ended June 30, 2026 2025 Profit of consolidated and affiliated companies $ 3,593 $ 2,179 Other comprehensive income (loss), net of tax (Note 13): Foreign currency translation ( 50 ) 435 Pension and other postretirement benefits 1 ( 1 ) Derivative financial instruments 65 63 Available-for-sale securities ( 2 ) 24 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. 4 Table of Contents Caterpillar Inc. Consolidated Statement of Results of Operations (Unaudited) (Dollars in millions except per share data) Six Months Ended June 30, 2026 2025 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 Less: Profit (loss) attributable to noncontrolling interests ( 1 ) — Profit 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 – Diluted 2 464.3 474.5 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. 5 Table of Contents Caterpillar Inc . Consolidated Statement of Comprehensive Income (Unaudited) (Dollars in millions) Six Months Ended June 30, 2026 2025 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 Less: comprehensive income (loss) attributable to the noncontrolling interests ( 1 ) — Comprehensive income attributable to shareholders $ 6,047 $ 4,969 See accompanying notes to Consolidated Financial Statements. 6 Table of Contents Caterpillar Inc . Consolidated Statement of Financial Position (Unaudited) (Dollars in millions) June 30, 2026 December 31, 2025 Assets Current assets: Cash and cash equivalents $ 6,713 $ 9,980 Receivables – trade and other 13,188 10,920 Receivables – finance 10,844 10,649 Prepaid expenses and other current assets 3,078 2,801 Inventories 20,627 18,135 Total current assets 54,450 52,485 Property, plant and equipment – net 15,628 15,140 Long-term receivables – trade and other 3,086 2,142 Long-term receivables – finance 14,364 14,272 Noncurrent deferred and refundable income taxes 2,286 2,882 Intangible assets 420 241 Goodwill 5,859 5,321 Other assets 6,516 6,102 Total assets $ 102,609 $ 98,585 Liabilities Current liabilities: Short-term borrowings: Financial Products $ 5,046 $ 5,514 Accounts payable 10,313 8,968 Accrued expenses 5,825 5,587 Accrued wages, salaries and employee benefits 2,148 2,554 Customer advances 4,777 3,314 Dividends payable 749 703 Other current liabilities 2,871 2,798 Long-term debt due within one year: Machinery, Power & Energy 35 35 Financial Products 8,026 7,085 Total current liabilities 39,790 36,558 Long-term debt due after one year: Machinery, Power & Energy 10,655 10,678 Financial Products 21,384 20,018 Liability for postemployment benefits 3,744 3,838 Other liabilities 7,642 6,175 Total liabilities 83,215 77,267 Commitments and contingencies (Notes 11 and 14) Shareholders’ equity Common stock of $ 1.00 par value: Authorized shares: 2,000,000,000 Issued shares: (6/30/26 and 12/31/25 – 814,894,624 ) at paid-in amount 5,654 7,181 Treasury stock: (6/30/26 – 355,219,735 shares; 12/31/25 – 349,607,292 shares) at cost ( 54,533 ) ( 49,539 ) Profit employed in the business 70,141 65,448 Accumulated other comprehensive income (loss) ( 1,867 ) ( 1,772 ) Noncontrolling interests ( 1 ) — Total shareholders’ equity 19,394 21,318 Total liabilities and shareholders’ equity $ 102,609 $ 98,585 See accompanying notes to Consolidated Financial Statements. 7 Table of Contents Caterpillar Inc. Consolidated Statement of Changes in Shareholders’ Equity (Unaudited) (Dollars in millions) Common stock Treasury stock Profit employed in the business Accumulated other comprehensive income (loss) Noncontrolling interests Total 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: 103,310 — 5 — — — 5 Stock-based compensation expense 86 — — — — 86 Common shares repurchased: 2,666,175 2 — ( 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: 452,183 ( 51 ) 27 — — — ( 24 ) Stock-based compensation expense 92 — — — — 92 Common shares repurchased: 1,414,325 2 — ( 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. 8 Table of Contents Caterpillar Inc. Consolidated Statement of Changes in Shareholders’ Equity (Unaudited) (Dollars in millions) Common stock Treasury stock Profit employed in the business Accumulated other 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 Profit (loss) of consolidated and affiliated companies — — 4,182 — — 4,182 Foreign currency translation, net of tax — — — 623 — 623 Pension and other postretirement benefits, net of tax — — — ( 2 ) — ( 2 ) Derivative financial instruments, net of tax — — — 120 — 120 Available-for-sale securities, net of tax — — — 46 — 46 Dividends declared 1 — — ( 1,374 ) — — ( 1,374 ) Common shares issued from treasury stock for stock-based compensation: 728,355 ( 53 ) ( 6 ) — — — ( 59 ) Stock-based compensation expense 131 — — — — 131 Common shares repurchased: 10,181,456 2 — ( 3,588 ) — — — ( 3,588 ) Outstanding authorized accelerated share repurchases ( 900 ) — — — — ( 900 ) Other 24 ( 33 ) — — ( 1 ) ( 10 ) 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 Profit (loss) of consolidated and affiliated companies — — 6,142 — ( 1 ) 6,141 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: 1,359,674 ( 90 ) ( 31 ) — — — ( 121 ) Stock-based compensation expense 146 — — — — 146 Common shares repurchased: 6,972,123 2 — ( 4,922 ) — — — ( 4,922 ) Outstanding authorized accelerated share repurchases ( 1,600 ) — — — — ( 1,600 ) Other 17 ( 41 ) — — — ( 24 ) 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. See accompanying notes to Consolidated Financial Statements. 9 Table of Contents Caterpillar Inc. Consolidated Statement of Cash Flow (Unaudited) (Dollars in millions) Six Months Ended June 30, 2026 2025 Cash flow from operating activities: Profit of consolidated and affiliated companies $ 6,141 $ 4,182 Adjustments to reconcile profit to net cash provided by operating activities: Depreciation and amortization 1,211 1,094 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: Receivables – trade and other ( 3,182 ) ( 319 ) Inventories ( 2,553 ) ( 1,639 ) Accounts payable 1,528 973 Accrued expenses 189 ( 12 ) Accrued wages, salaries and employee benefits ( 408 ) ( 805 ) Customer advances 2,576 1,276 Other assets – net ( 93 ) ( 90 ) Other liabilities – net 71 ( 537 ) Net cash provided by (used for) operating activities 6,241 4,411 Cash flow from investing activities: Capital expenditures – excluding equipment leased to others ( 1,315 ) ( 1,265 ) Expenditures for equipment leased to others ( 847 ) ( 608 ) Proceeds from disposals of leased assets and property, plant and equipment 436 365 Additions to finance receivables ( 8,639 ) ( 7,064 ) Collections of finance receivables 8,060 6,399 Proceeds from sale of finance receivables 33 18 Investments and acquisitions (net of cash acquired) ( 802 ) ( 21 ) Proceeds from sale of businesses and investments (net of cash sold) ( 92 ) 12 Proceeds from maturities and sale of securities 734 1,328 Investments in securities ( 1,155 ) ( 618 ) Other – net 148 ( 53 ) Net cash provided by (used for) investing activities ( 3,439 ) ( 1,507 ) Cash flow from financing activities: Dividends paid ( 1,399 ) ( 1,336 ) Common stock issued, and other stock compensation transactions, net ( 121 ) ( 59 ) 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 Payments on debt (original maturities greater than three months): - Machinery, Power & Energy ( 19 ) ( 35 ) - Financial Products ( 4,744 ) ( 4,133 ) Short-term borrowings – net (original maturities three months or less) ( 542 ) 72 Net cash provided by (used for) financing activities ( 6,033 ) ( 4,345 ) Effect of exchange rate changes on cash ( 35 ) ( 7 ) Increase (decrease) in cash, cash equivalents and restricted cash ( 3,266 ) ( 1,448 ) Cash, cash equivalents and restricted cash at beginning of period 9,986 6,896 Cash, cash equivalents and restricted cash at end of period $ 6,720 $ 5,448 Cash equivalents primarily represent short-term, highly liquid investments with original maturities of generally three months or less . See accompanying notes to Consolidated Financial Statements. 10 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. A. Nature of operations Information in our financial statements and related commentary are presented in the following categories: Machinery, Power & Energy (MP&E) — The company defines MP&E as Caterpillar Inc. and its subsidiaries, excluding Financial Products. MP&E’s information relates to the design, manufacturing and marketing of its products. Financial Products — The company defines Financial Products as our finance and insurance subsidiaries, primarily Caterpillar Financial Services Corporation (Cat Financial) and Caterpillar Insurance Holdings Inc. (Insurance Services). Financial Products’ information relates to the financing to customers and dealers for the purchase and lease of Caterpillar and other equipment. B. Basis of presentation In the opinion of management, the accompanying unaudited financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of (a) the consolidated results of operations for the three and 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. GAAP) and pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Interim results are not necessarily indicative of results for a full year. The information included in this Form 10-Q should be read in conjunction with the audited financial statements and notes thereto included in our company’s annual report on Form 10-K for the year ended December 31, 2025 (2025 Form 10-K). The December 31, 2025 financial position data included herein is derived from the audited consolidated financial statements included in the 2025 Form 10-K but does not include all disclosures required by U.S. GAAP. Certain amounts for prior periods have been reclassified to conform to the current period financial statement presentation. Cat Financial has end-user customers and dealers that are variable interest entities (VIEs) of which we are not the primary beneficiary. Our maximum exposure to loss from our involvement with these VIEs is limited to the credit risk inherently present in the financial support that we have provided. Credit risk was evaluated and reflected in our financial statements as part of our overall portfolio of finance receivables and related allowance for credit losses. See Note 11 for further discussions on a consolidated VIE. 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 $ 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. During 2025 and until CBP ceased collecting IEEPA tariffs in 2026, the company's total IEEPA tariff costs were approximately $ 1.0 billion. 11 Table of Contents 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. 2. New accounting guidance A. Adoption of new accounting standards We consider the applicability and impact of all ASUs. We determined that the ASUs effective January 1, 2026 were either not applicable or did not have a material impact on our financial statements. B. Accounting standards issued but not yet adopted Disaggregation of income statement expenses (ASU 2024-03) — In November 2024, the Financial Accounting Standards Board (FASB) issued accounting guidance to enhance transparency into the nature and function of income statement expenses. The amendments require that, on an annual and interim basis, entities disclose disaggregated operating expense information about specific categories, including purchases of inventory, employee compensation, depreciation and amortization. The expanded annual disclosures are effective for our year ending December 31, 2027, and the expanded interim disclosures are effective in 2028, with early adoption permitted. We are in the process of evaluating the effect of this new guidance on the related disclosures. Internal-use software costs (ASU 2025-06) — In September 2025, the FASB issued accounting guidance to modernize the accounting for internal-use software costs. Under this guidance, capitalization for internal-use software costs begins when management has authorized and committed to funding the project and it is probable the project will be completed, and the software will be used to perform the intended function. This guidance is effective January 1, 2028, with early adoption permitted, and can be applied on a prospective basis, a modified basis for in-process projects, or a retrospective basis. We are in the process of evaluating the effect of this new guidance on our financial statements. All other ASUs issued but not yet adopted were assessed and determined that they either were not applicable or were not expected to have a material impact on our financial statements. 3. Sales and revenue contract information Trade receivables represent amounts due from dealers and end users for the sale of our products, and include amounts due from wholesale inventory financing provided by Cat Financial for a dealer’s purchase of inventory. 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 $ 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. We recognize a contract asset when a sale is recognized before achieving the contractual milestone for invoicing. We reduce the contract asset when we invoice for payment and recognize a corresponding trade receivable. Contract assets are included in Prepaid expenses and other current assets in the Consolidated Statement of Financial Position. Contract assets were $ 277 million, $ 297 million and $ 238 million as of June 30, 2026, December 31, 2025 and December 31, 2024, respectively. 12 Table of Contents 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 $ 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 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. We have numerous programs that are designed to promote the sale of our products. The most common dealer programs provide a discount when the dealer sells a product to a targeted end user. We report the estimated cost of these discounts as a reduction to the transaction price when we recognize the product sale. We accrue a corresponding post-sale discount reserve in the Consolidated Statement of Financial Position, which represents discounts we expect to pay on units sold. If discounts paid differ from those estimated, we report the difference as a change in the transaction price in the subsequent period when the final discount is paid. As a result of differences between actual and estimated payments and changes in estimates, we recognized a decrease in revenue of $ 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. Contracts with an original duration of one year or less are primarily sales to dealers for machinery, engines and replacement parts. See Note 16 for further disaggregated sales and revenues information. 4. Stock-based compensation Accounting for stock-based compensation requires that the cost resulting from all stock-based payments be recognized in the financial statements based on the grant-date fair value of the award. 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 $ 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 Stock options 126,660 $ 270.41 299,523 $ 106.04 RSUs 224,552 $ 758.15 442,800 $ 333.10 PRSUs 86,114 $ 925.49 199,856 $ 345.60 13 Table of Contents 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 during the six months ended June 30, 2026 and 2025: Grant Year 2026 2025 Weighted-average dividend yield 1.82 % 2.13 % Weighted-average volatility 36.1 % 30.5 % Range of volatilities 29.5 % - 34.2 % 26.6 % - 32.6 % Range of risk-free interest rates 3.43 % - 4.03 % 4.13 % - 4.40 % Weighted-average expected lives 7 years 7 years 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 during the six months ended June 30, 2026 and 2025, respectively: Grant Year 2026 2025 Expected volatility of the Company's stock 36.7 % 29.5 % Risk-free interest rate 3.46 % 3.90 % 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. 5. Derivative financial instruments and risk management Our earnings and cash flow are subject to fluctuations due to changes in foreign currency exchange rates, interest rates, commodity prices, and certain deferred compensation plan liabilities. Our Risk Management Policy allows for the use of derivative financial instruments to prudently manage foreign currency exchange rate, interest rate, commodity price and certain deferred compensation plan liability exposures. Our policy specifies that derivatives are not to be used for speculative purposes. Derivatives that we use are primarily foreign currency forward, option and cross currency contracts, interest rate contracts, commodity forward and option contracts and total return swap contracts. Our derivative activities are subject to the management, direction and control of our senior financial officers. We present at least annually to the Audit Committee of the Board of Directors on our risk management practices, including our use of financial derivative instruments. We recognize all derivatives at their fair value in the Consolidated Statement of Financial Position. On the date the derivative contract is entered into, we designate the derivative as (1) a hedge of the fair value of a recognized asset or liability (fair value hedge), (2) a hedge of a forecasted transaction or the variability of cash flow (cash flow hedge) or (3) an undesignated instrument. We record in current earnings changes in the fair value of a derivative that is qualified, designated and highly effective as a fair value hedge, along with the gain or loss on the hedged recognized asset or liability that is attributable to the hedged risk. For foreign exchange contracts designated as fair value hedges, the interim settlements are excluded from the effectiveness assessment and are recognized under a systematic and rational method over the life of the hedging instrument within Interest expense. We record in AOCI changes in the fair value of a derivative that is qualified, designated and highly effective as a cash flow hedge, to the extent effective, in the Consolidated Statement of Financial Position until we reclassify them to earnings in the same period or periods during which the hedged transaction affects earnings. We report changes in the fair value of undesignated derivative instruments in current earnings. We classify cash flows from designated derivative financial instruments within the same category as the item being hedged in the Consolidated Statement of Cash Flow. We include cash flows from undesignated derivative financial instruments in the investing category in the Consolidated Statement of Cash Flow. 14 Table of Contents We formally document all relationships between hedging instruments and hedged items, as well as the risk-management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives that are designated as fair value hedges to specific assets and liabilities in the Consolidated Statement of Financial Position and linking cash flow hedges to specific forecasted transactions or variability of cash flow. We also formally assess, both at the hedge’s inception and on an ongoing basis, whether the designated derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flow of hedged items. When a derivative is determined not to be highly effective as a hedge or the underlying hedged transaction is no longer probable, we discontinue hedge accounting prospectively, in accordance with the derecognition criteria for hedge accounting. Foreign currency exchange rate risk Foreign currency exchange rate movements create a degree of risk by affecting the U.S. dollar value of sales made and costs incurred in foreign currencies. Movements in foreign currency rates also affect our competitive position as these changes may affect business practices and/or pricing strategies of non-U.S.-based competitors. Additionally, we have balance sheet positions denominated in foreign currencies, thereby creating exposure to movements in exchange rates. Our MP&E operations purchase, manufacture and sell products in many locations around the world. As we have a diversified revenue and cost base, we manage our future foreign currency cash flow exposure on a net basis. We use foreign currency forward and option contracts to manage unmatched foreign currency cash inflow and outflow. Our objective is to minimize the risk of exchange rate movements that would reduce the U.S. dollar value of our foreign currency cash flow. Our policy allows for managing anticipated foreign currency cash flow for up to approximately five years . 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. We perform designation on a specific exposure basis to support hedge accounting. The remainder of MP&E foreign currency contracts are undesignated. In managing foreign currency risk for our Financial Products operations, our objective is to minimize earnings volatility resulting from conversion and the remeasurement of net foreign currency balance sheet positions and future transactions denominated in foreign currencies. Our policy allows the use of foreign currency forward, option and cross currency contracts to offset the risk of currency mismatch between our assets and liabilities and exchange rate risk associated with future transactions denominated in foreign currencies. Our foreign currency forward and option contracts are primarily undesignated. We designate fixed-to-fixed cross currency contracts as cash flow hedges to protect against movements in exchange rates on foreign currency fixed-rate assets and liabilities. We designate float-to-float cross currency contracts as fair value hedges to protect against movements in exchange rates on floating-rate assets and liabilities. Interest rate risk Interest rate movements create a degree of risk by affecting the amount of our interest payments and the value of our fixed-rate debt. Our practice is to use interest rate contracts to manage our exposure to interest rate changes. Our MP&E operations generally use fixed-rate debt as a source of funding. Our objective is to minimize the cost of borrowed funds. Our policy allows us to enter into fixed-to-floating interest rate contracts and forward rate agreements to meet that objective. We designate fixed-to-floating interest rate contracts as fair value hedges at inception of the contract, and we designate certain forward rate agreements as cash flow hedges at inception of the contract. Financial Products operations has a match-funding policy that addresses interest rate risk by aligning the interest rate profile (fixed or floating rate and duration) of Cat Financial’s debt portfolio with the interest rate profile of our receivables portfolio within predetermined ranges on an ongoing basis. In connection with that policy, we use interest rate derivative instruments to modify the debt structure to match assets within the receivables portfolio. This matched funding reduces the volatility of margins between interest-bearing assets and interest-bearing liabilities, regardless of which direction interest rates move. 15 Table of Contents Our policy allows us to use fixed-to-floating, floating-to-fixed and floating-to-floating interest rate contracts to meet the match-funding objective. We designate fixed-to-floating interest rate contracts as fair value hedges to protect debt against changes in fair value due to changes in the benchmark interest rate. We designate most floating-to-fixed interest rate contracts as cash flow hedges to protect against the variability of cash flows due to changes in the benchmark interest rate. If we liquidate fixed-to-floating or floating-to-fixed interest rate contracts at MP&E or Financial Products, we amortize any deferred gains or losses into earnings over the remaining term of the previously hedged item. Commodity price risk Commodity price movements create a degree of risk by affecting the price we must pay for certain raw materials. Our policy is to use commodity forward and option contracts to manage the commodity risk and reduce the cost of purchased materials. Our MP&E operations purchase base and precious metals embedded in the components we purchase from suppliers. Our suppliers pass on to us price changes in the commodity portion of the component cost. In addition, we are subject to price changes on energy products such as natural gas and diesel fuel purchased for operational use. Our objective is to minimize volatility in the price of these commodities. Our policy allows us to enter into commodity forward and option contracts to lock in the purchase price of a portion of these commodities within a five-year horizon. All such commodity forward and option contracts are undesignated. Deferred compensation plan liability risk We are also exposed to variability in compensation expense related to certain non-qualified deferred compensation obligations to employees. We utilize total return swaps to economically hedge this exposure to offset the related compensation expense. All such total return swap contracts are undesignated. 16 Table of Contents The location and fair value of derivative instruments reported in the Consolidated Statement of Financial Position were as follows: (Millions of dollars) Fair Value June 30, 2026 December 31, 2025 Assets 1 Liabilities 2 Assets 1 Liabilities 2 Designated derivatives Foreign exchange contracts $ 296 $ ( 174 ) $ 364 $ ( 147 ) Interest rate contracts 34 ( 137 ) 59 ( 99 ) Total $ 330 $ ( 311 ) $ 423 $ ( 246 ) Undesignated derivatives Foreign exchange contracts $ 84 $ ( 43 ) $ 62 $ ( 75 ) Commodity contracts 13 ( 15 ) 10 ( 2 ) Total return swap contracts 40 ( 1 ) 1 ( 2 ) Total $ 137 $ ( 59 ) $ 73 $ ( 79 ) 1 Assets are classified as Receivables - trade and other or Long-term receivables - trade and other. 2 Liabilities are classified as Accrued expenses or Other liabilities. 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. We calculate the amounts exchanged by the parties by referencing the notional amounts and by other terms of the derivatives, such as foreign currency exchange rates, interest rates, commodity prices or certain deferred compensation plan liabilities. 17 Table of Contents Gains (losses) on derivative instruments are categorized as follows: (Millions of dollars) Three 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 $ — $ — $ 41 $ 139 $ ( 32 ) $ 72 Interest rate contracts — — 13 15 2 1 Fair Value Hedges Foreign exchange contracts — — ( 5 ) ( 2 ) ( 4 ) ( 1 ) Interest rate contracts ( 3 ) ( 20 ) — — — — Undesignated Hedges Foreign exchange contracts 38 ( 83 ) — — — — Commodity contracts ( 4 ) ( 3 ) — — — — Total return swap contracts 145 56 — — — — Total $ 176 $ ( 50 ) $ 49 $ 152 $ ( 34 ) $ 72 1 Foreign exchange contract, Commodity contract and Total return swap contract gains (losses) are included in Other income (expense). Interest rate contract gains (losses) are included in Interest expense of Financial Products and Interest expense excluding Financial Products. 2 Foreign exchange contract gains (losses) are primarily included in Other income (expense). Interest rate contract gains (losses) are primarily included in Interest expense of Financial Products. (Millions of dollars) 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. 18 Table of Contents 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 June 30, 2026 December 31, 2025 June 30, 2026 December 31, 2025 Long-term debt due within one year $ 501 $ 602 $ 1 $ 3 Long-term debt due after one year 7,519 5,513 ( 131 ) ( 37 ) Total $ 8,020 $ 6,115 $ ( 130 ) $ ( 34 ) We enter into International Swaps and Derivatives Association (ISDA) master netting agreements within MP&E and Financial Products that permit the net settlement of amounts owed under their respective derivative contracts. Under these master netting agreements, net settlement generally permits the company or the counterparty to determine the net amount payable for contracts due on the same date and in the same currency for similar types of derivative transactions. The master netting agreements may also provide for net settlement of all outstanding contracts with a counterparty in the case of an event of default or a termination event. Our exposure to credit loss in the event of nonperformance by the counterparties is limited to only those gains that we have recorded, but for which we have not yet received cash payment. Collateral is typically not required of the counterparties or of our company 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) June 30, 2026 December 31, 2025 Assets Liabilities Assets Liabilities Gross Amounts Recognized $ 467 $ ( 370 ) $ 496 $ ( 325 ) Financial Instruments Not Offset ( 197 ) 197 ( 160 ) 160 Net Amount $ 270 $ ( 173 ) $ 336 $ ( 165 ) 6. Inventories Inventories (principally using the last-in, first-out (LIFO) method) were comprised of the following: (Millions of dollars) June 30, 2026 December 31, 2025 Raw materials $ 8,831 $ 7,434 Work-in-process 2,087 1,598 Finished goods 9,298 8,725 Supplies 411 378 Total inventories $ 20,627 $ 18,135 19 Table of Contents 7. Intangible assets and goodwill A. Intangible assets Intangible assets were comprised of the following: June 30, 2026 (Millions of dollars) Gross Carrying Amount 1 Accumulated Amortization 1 Net Customer relationships $ 495 $ ( 342 ) $ 153 Intellectual property 642 ( 402 ) 240 Other 86 ( 59 ) 27 Total finite-lived intangible assets $ 1,223 $ ( 803 ) $ 420 December 31, 2025 Gross Carrying Amount Accumulated Amortization Net Customer relationships $ 2,012 $ ( 1,877 ) $ 135 Intellectual property 479 ( 399 ) 80 Other 117 ( 91 ) 26 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 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 Six Months of 2026 2027 2028 2029 2030 Thereafter $ 36 $ 67 $ 59 $ 55 $ 53 $ 150 20 Table of Contents B. Goodwill 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, 2025 Acquisitions 3 Other Adjustments 1 June 30, 2026 Power & Energy Goodwill $ 2,054 $ — $ ( 10 ) $ 2,044 Construction Industries Goodwill 264 — ( 4 ) 260 Impairments ( 22 ) — — ( 22 ) Net goodwill 242 — ( 4 ) 238 Resource Industries Goodwill 5,086 546 7 5,639 Impairments ( 2,100 ) — — ( 2,100 ) Net goodwill 2,986 546 — 7 3,539 All Other 2 Goodwill 39 — ( 1 ) 38 Consolidated total Goodwill 7,443 546 ( 8 ) 7,981 Impairments ( 2,122 ) — — ( 2,122 ) Net goodwill $ 5,321 $ 546 $ ( 8 ) $ 5,859 1 Other adjustments are comprised primarily of foreign currency translation. 2 Includes All Other Segment (See Note 16). 3 See Note 22 - Acquisitions. 8. Investments in debt and equity securities We have investments in certain debt and equity securities, which we record at fair value and primarily include in Other assets in the Consolidated Statement of Financial Position. Short-term and long-term investments are held with high quality institutions and, by policy, the amount of credit exposure to any one institution is limited. We classify debt securities primarily as available-for-sale. We include the unrealized gains and losses arising from the revaluation of available-for-sale debt securities, net of applicable deferred income taxes, in equity (AOCI in the Consolidated Statement of Financial Position). We include the unrealized gains and losses arising from the revaluation of the equity securities in Other income (expense) in the Consolidated Statement of Results of Operations. We generally determine realized gains and losses on sales of investments using the specific identification method for available-for-sale debt and equity securities and include them in Other income (expense) in the Consolidated Statement of Results of Operations. 21 Table of Contents The cost basis and fair value of available-for-sale debt securities with unrealized gains and losses included in equity (AOCI in the Consolidated Statement of Financial Position) were as follows: Available-for-sale debt securities June 30, 2026 December 31, 2025 (Millions of dollars) Cost Basis Unrealized Pretax Net Gains (Losses) Fair Value Cost Basis Unrealized Pretax Net Gains (Losses) Fair Value Government debt securities U.S. treasury bonds $ 10 $ — $ 10 $ 10 $ — $ 10 Other U.S. and non-U.S. government bonds 67 — 67 72 2 74 Corporate debt securities Corporate bonds and other debt securities 2,855 6 2,861 2,457 23 2,480 Asset-backed securities 291 — 291 273 — 273 Mortgage-backed debt securities U.S. governmental agency 586 ( 17 ) 569 580 ( 8 ) 572 Residential 5 ( 1 ) 4 2 ( 1 ) 1 Commercial 157 ( 3 ) 154 141 ( 2 ) 139 Total available-for-sale debt securities $ 3,971 $ ( 15 ) $ 3,956 $ 3,535 $ 14 $ 3,549 Available-for-sale debt securities in an unrealized loss position: June 30, 2026 Less than 12 months 1 12 months or more 1 Total (Millions of dollars) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Government debt securities Other U.S. and non-U.S. government bonds $ — $ — $ 26 $ 1 $ 26 $ 1 Corporate debt securities Corporate bonds 1,427 1 352 7 1,779 8 Asset-backed securities 47 — 52 1 99 1 Mortgage-backed debt securities U.S. governmental agency 173 3 214 17 387 20 Residential — — 4 1 4 1 Commercial 45 1 90 3 135 4 Total $ 1,692 $ 5 $ 738 $ 30 $ 2,430 $ 35 22 Table of Contents December 31, 2025 Less than 12 months 1 12 months or more 1 Total (Millions of dollars) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Government debt securities Other U.S. and non-U.S. government bonds $ — $ — $ 17 $ — $ 17 $ — Corporate debt securities Corporate bonds 130 — 306 6 436 6 Asset-backed securities 38 — 43 1 81 1 Mortgage-backed debt securities U.S. governmental agency 3 — 307 15 310 15 Residential — — 1 1 1 1 Commercial 6 — 89 3 95 3 Total $ 177 $ — $ 763 $ 26 $ 940 $ 26 1 Indicates the length of time that individual securities have been in a continuous unrealized loss position. The unrealized losses on our investments in government debt securities, corporate debt securities, and mortgage-backed debt securities relate to changes in underlying interest rates and credit spreads since time of purchase. 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 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. June 30, 2026 (Millions of dollars) Cost Basis Fair Value Due in one year or less $ 882 $ 892 Due after one year through five years 1,687 1,685 Due after five years through ten years 441 439 Due after ten years 213 213 U.S. governmental agency mortgage-backed securities 586 569 Residential mortgage-backed securities 5 4 Commercial mortgage-backed securities 157 154 Total debt securities – available-for-sale $ 3,971 $ 3,956 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. 23 Table of Contents 9. Postretirement benefits A. Pension and postretirement benefit costs U.S. Pension Benefits Non-U.S. Pension Benefits Other Postretirement Benefits June 30, June 30, June 30, (Millions of dollars) 2026 2025 2026 2025 2026 2025 For the three months ended: Components of net periodic benefit cost: Service cost $ — $ — $ 12 $ 12 $ 14 $ 16 Interest cost 136 153 30 27 26 30 Expected return on plan assets ( 176 ) ( 180 ) ( 44 ) ( 40 ) ( 3 ) ( 2 ) Amortization of prior service cost (credit) — — 1 — — ( 1 ) Net periodic benefit cost (benefit) 1 $ ( 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 $ 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. B. Defined contribution benefit costs 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 June 30, Six Months Ended June 30, (Millions of dollars) 2026 2025 2026 2025 U.S. Plans 1 $ 299 $ 190 $ 489 $ 344 Non-U.S. Plans 38 35 75 68 $ 337 $ 225 $ 564 $ 412 1 Includes costs related to our non-qualified deferred compensation plans. We utilize total return swaps to economically hedge this exposure to offset the related costs. See Note 5 for additional information. 24 Table of Contents 10. Leases 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 June 30, Six Months Ended June 30, (Millions of dollars) 2026 2025 2026 2025 Finance lease revenue $ 118 $ 118 $ 239 $ 231 Operating lease revenue 320 298 633 608 Total $ 438 $ 416 $ 872 $ 839 We present revenues net of sales and other related taxes. 11. Guarantees and product warranty We have provided various guarantees that have varying terms and limit potential payment. 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 $ 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. In addition, we have entered into contracts involving industry standard indemnifications that do not limit potential payment. For these unlimited guarantees, we are unable to estimate a maximum potential amount of future payments that could result from claims made. No significant loss has been experienced or is anticipated under any of these guarantees. Cat Financial provides guarantees to purchase certain loans of Caterpillar dealers from a special-purpose corporation (SPC) that qualifies as a variable interest entity. Cat Financial receives a fee for providing this guarantee. The purpose of the SPC is to provide short-term working capital loans to Caterpillar dealers. This SPC issues commercial paper and uses the proceeds to fund its loan program. 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 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. Cat Financial may be obligated to perform under the guarantee if the SPC experiences losses. No loss has been experienced or is anticipated under this loan purchase agreement. We determine our product warranty liability by applying historical claim rate experience to the current field population and dealer inventory. Generally, we base historical claim rates on actual warranty experience for each product by machine model/engine size by customer or dealer location (inside or outside North America). We develop specific rates for each product shipment month and update them monthly based on actual warranty claim experience. 25 Table of Contents 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 Warranty liability, beginning of period $ 1,626 $ 1,700 Reduction in liability (payments) ( 403 ) ( 350 ) Increase in liability (new warranties) 446 319 Warranty liability, end of period $ 1,669 $ 1,669 12. Profit per share Computations of profit per share: Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions except per share data) 2026 2025 2026 2025 Profit for the period (A) 1 $ 3,593 $ 2,179 $ 6,142 $ 4,182 Determination of shares (in millions): Weighted-average number of common shares outstanding (B) 460.4 469.7 462.0 472.4 Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price 2.1 1.8 2.3 2.1 Average common shares outstanding for fully diluted computation (C) 2 462.5 471.5 464.3 474.5 Profit per share of common stock: Basic (A/B) $ 7.80 $ 4.64 $ 13.29 $ 8.85 Diluted (A/C) 2 $ 7.77 $ 4.62 $ 13.23 $ 8.82 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 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. 26 Table of Contents In the first quarter of 2026, we entered into ASR agreements to repurchase an aggregate of $ 4.50 billion of common stock. 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. The final settlement of the ASR agreements is scheduled to occur during the fourth quarter of 2026. 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. 27 Table of Contents 13. Accumulated other comprehensive income (loss) We present comprehensive income and its components in the Consolidated Statement of Comprehensive Income. Changes in the balances for each component of AOCI were as follows: Three Months Ended June 30, Six Months Ended June 30, (Millions of dollars) 2026 2025 2026 2025 Foreign currency translation Beginning balance $ ( 1,800 ) $ ( 2,122 ) $ ( 1,753 ) $ ( 2,310 ) Gains (losses) on foreign currency translation ( 49 ) 435 ( 95 ) 623 Less: Tax provision (benefit) 1 — 2 — Net gains (losses) on foreign currency translation ( 50 ) 435 ( 97 ) 623 (Gains) losses reclassified to earnings — — — — Less: Tax provision (benefit) — — — — Net (gains) losses reclassified to earnings — — — — Other comprehensive income (loss), net of tax ( 50 ) 435 ( 97 ) 623 Ending balance $ ( 1,850 ) $ ( 1,687 ) $ ( 1,850 ) $ ( 1,687 ) Pension and other postretirement benefits Beginning balance $ ( 70 ) $ ( 62 ) $ ( 70 ) $ ( 61 ) Current year prior service credit (cost) — — — — Less: Tax provision (benefit) — — — — Net current year prior service credit (cost) — — — — Amortization of prior service (credit) cost 1 ( 1 ) 1 ( 2 ) Less: Tax provision (benefit) — — — — Net amortization of prior service (credit) cost 1 ( 1 ) 1 ( 2 ) Other comprehensive income (loss), net of tax 1 ( 1 ) 1 ( 2 ) Ending balance $ ( 69 ) $ ( 63 ) $ ( 69 ) $ ( 63 ) Derivative financial instruments Beginning balance $ ( 1 ) $ 11 $ 39 $ ( 46 ) Gains (losses) deferred 49 152 ( 107 ) 228 Less: Tax provision (benefit) 12 37 ( 27 ) 55 Net gains (losses) deferred 37 115 ( 80 ) 173 (Gains) losses reclassified to earnings 34 ( 72 ) 137 ( 73 ) Less: Tax provision (benefit) 6 ( 20 ) 32 ( 20 ) Net (gains) losses reclassified to earnings 28 ( 52 ) 105 ( 53 ) Other comprehensive income (loss), net of tax 65 63 25 120 Ending balance $ 64 $ 74 $ 64 $ 74 Available-for-sale securities Beginning balance $ ( 10 ) $ ( 32 ) $ 12 $ ( 54 ) Gains (losses) deferred 4 29 ( 26 ) 55 Less: Tax provision (benefit) 5 6 ( 4 ) 12 Net gains (losses) deferred ( 1 ) 23 ( 22 ) 43 (Gains) losses reclassified to earnings ( 2 ) 1 ( 3 ) 3 Less: Tax provision (benefit) ( 1 ) — ( 1 ) — Net (gains) losses reclassified to earnings ( 1 ) 1 ( 2 ) 3 Other comprehensive income (loss), net of tax ( 2 ) 24 ( 24 ) 46 Ending balance $ ( 12 ) $ ( 8 ) $ ( 12 ) $ ( 8 ) Total AOCI ending balance at June 30, $ ( 1,867 ) $ ( 1,684 ) $ ( 1,867 ) $ ( 1,684 ) 28 Table of Contents 14. Environmental and legal matters The Company is regulated by federal, state and international environmental laws governing its use, transport and disposal of substances and control of emissions. In addition to governing our manufacturing and other operations, these laws often impact the development of our products, including, but not limited to, required compliance with air emissions standards applicable to internal combustion engines. We have made, and will continue to make, significant research and development and capital expenditures to comply with these emissions standards. We are engaged in remedial activities at a number of locations, often with other companies, pursuant to federal and state laws. When it is probable we will pay remedial costs at a site, and those costs can be reasonably estimated, we accrue the investigation, remediation, and operating and maintenance costs against our earnings. We accrue costs based on consideration of currently available data and information with respect to each individual site, including available technologies, current applicable laws and regulations, and prior remediation experience. Where no amount within a range of estimates is more likely, we accrue the minimum. Where multiple potentially responsible parties are involved, we consider our proportionate share of the probable costs. In formulating the estimate of probable costs, we do not consider amounts expected to be recovered from insurance companies or others. We reassess these accrued amounts on a quarterly basis. The amount recorded for environmental remediation is not material and is included in Accrued expenses. We believe there is no more than a remote chance that a material amount for remedial activities at any individual site, or at all the sites in the aggregate, will be required. Our operations in Brazil are subject to highly complex labor, tax, customs and other laws. While we believe that we are in compliance with such laws, we are periodically engaged in litigation regarding the application of these laws, including certain tax and customs disputes with federal, state and municipal authorities in Brazil relating to export activities associated with Caterpillar Brasil Ltda. The Company is unable to predict the outcome or reasonably estimate any potential losses; however, we currently believe that any matters raised will not have a material adverse effect on the Company’s consolidated results of operations, financial position or liquidity. In addition, we are involved in other unresolved legal actions that arise in the normal course of business. The most prevalent of these unresolved actions involve disputes related to product design, manufacture and performance liability (including claimed asbestos exposure), contracts, employment issues, environmental matters, intellectual property rights, taxes (other than income taxes) and securities laws. The aggregate range of reasonably possible losses in excess of accrued liabilities, if any, associated with these unresolved legal actions is not material. In some cases, we cannot reasonably estimate a range of loss because there is insufficient information regarding the matter. However, we believe there is no more than a remote chance that any liability arising from these matters would be material. 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. 15. Income taxes 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. 16. Segment information A. Basis for segment information Our Executive Office is comprised of a Chief Executive Officer (CEO), four Group Presidents, a Chief Financial Officer (CFO), a Chief Legal Officer and General Counsel and a Chief Human Resources Officer. The Group Presidents and CFO are accountable for a related set of end-to-end businesses that they manage. The Chief Legal Officer and General Counsel leads the Law, Security and Public Policy Division. The Chief Human Resources Officer leads the Human Resources Organization. The CEO allocates resources and manages performance at the Group President/CFO level. As such, the CEO serves as our Chief Operating Decision Maker (CODM), and operating segments are primarily based on the Group President/CFO reporting structure. 29 Table of Contents Three of our operating segments, Power & Energy, Construction Industries, and Resource Industries are led by Group Presidents. One operating segment, Financial Products, is led by the CFO who also has responsibility for Corporate Services. Corporate Services is a cost center primarily responsible for the performance of certain support functions globally and to provide centralized services; it does not meet the definition of an operating segment. One Group President leads one smaller operating segment that is included in the All Other Segment. The Law, Security and Public Policy Division and the Human Resources Organization are cost centers and do not meet the definition of an operating segment. Effective January 1, 2026, we made the following change to segment reporting. The change was made to reflect change in organizational accountabilities and refinements to our internal reporting. • Responsibility for business strategy, product design, product management and development, manufacturing, marketing and sales and product support for diesel-electric, hybrid and battery-electric locomotives and components and other rail-related products and services, including remanufacturing and leasing moved from Power & Energy to Resource Industries. Effective July 1, 2025, we made the following changes to segment reporting. These changes were made to reflect changes in organizational accountabilities and refinements to our internal reporting. • Responsibility for business strategy, product design, product management and development, manufacturing, marketing and sales and product support for and sourcing of wear and maintenance components and related parts moved from All Other Segment to Resource Industries. • Responsibility for business strategy, product design, product management and development, manufacturing and product support for electronics and control systems moved from Resource Industries to All Other Segment. • Responsibility for research and development for automation, electronics and software for machines and engines moved from Resource Industries to the All Other Segment. Segment information for 2025 has been retrospectively adjusted to conform to the 2026 presentation. B. Description of segments We have five operating segments, of which four are reportable segments. Following is a brief description of our reportable segments and the business activities included in the All Other Segment: Power & Energy : A segment primarily responsible for supporting customers using reciprocating engines, turbines and related services across industries serving Power Generation, Oil and Gas and Industrial applications, including marine applications and product support of on-highway engines. Responsibilities include business strategy, product design, product management, development and testing, manufacturing, marketing and sales and product support. The product and services portfolio includes turbines, centrifugal gas compressors, and turbine-related services; reciprocating engine-powered generator sets; integrated systems and solutions used in the electric power generation industry; reciprocating engines, drivetrain and integrated systems and solutions for the oil and gas industry; reciprocating engines, drivetrain and integrated systems and solutions supplied to the industrial industry as well as Caterpillar machines; and electrified powertrain and zero-emission power sources and service solutions. Responsibilities also include the remanufacturing of Caterpillar reciprocating engines and engine and machine components and remanufacturing services for other companies. Inter-segment sales are a source of revenue for this segment. Construction Industries : A segment primarily responsible for supporting customers using machinery in infrastructure and building construction applications. Responsibilities include business strategy, product design, product management and development, manufacturing, marketing and sales and product support. The product portfolio includes asphalt pavers; backhoe loaders; cold planers; compactors; compact track loaders; forestry machines; material handlers; motor graders; pipelayers; road reclaimers; skid steer loaders; telehandlers; track-type loaders; track-type tractors (small, medium); track excavators (mini, small, medium, large); wheel excavators; wheel loaders (compact, small, medium); and related parts and work tools. Inter-segment sales are a source of revenue for this segment. 30 Table of Contents Resource Industries : A segment primarily responsible for supporting customers using machinery in mining, heavy construction and quarry and aggregates as well as customers using locomotives and rail-related products and services. Responsibilities include business strategy, product design, product management and development, manufacturing, marketing and sales and product support. The product portfolio includes large track-type tractors; large mining trucks; hard rock vehicles; electric rope shovels; draglines; hydraulic shovels; rotary drills; large wheel loaders; off-highway trucks; articulated trucks; wheel tractor scrapers; wheel dozers; landfill compactors; soil compactors; wide-body trucks; select work tools; machinery components; wear and maintenance components and related parts; diesel-electric, hybrid and battery-electric locomotives and components and other rail-related products and services, including remanufacturing and leasing. In addition, Resource Industries sells technology products and services to provide customers fleet management, equipment management analytics, autonomous machine capabilities, safety services and mining performance solutions. Resource Industries also manages areas that provide services to other parts of the company, including strategic procurement, lean center of excellence, integrated component design and manufacturing and research and development for hydraulic systems and cabs. Inter-segment sales are a source of revenue for this segment. Financial Products Segment : Provides financing alternatives to customers and dealers around the world for Caterpillar products and services, as well as financing for power generation facilities that incorporate Caterpillar products. Financing plans include operating and finance leases, revolving charge accounts, installment sale contracts, repair/rebuild financing, working capital loans and wholesale financing plans. The segment also provides insurance and risk management products and services that help customers and dealers manage their business risk. Insurance and risk management products offered include physical damage insurance, inventory protection plans, extended service coverage and maintenance plans for machines and engines, and dealer property and casualty insurance. The various forms of financing, insurance and risk management products offered to customers and dealers help support the purchase and lease of Caterpillar equipment. The segment also earns revenues from Machinery, Power & Energy, but the related costs are not allocated to operating segments. Financial Products’ segment profit is determined on a pretax basis and includes other income/expense items. All Other Segment : Primarily includes activities such as: business strategy; product management and development; parts distribution; integrated logistics solutions; electronics and control systems; distribution services responsible for dealer development and administration, including a wholly owned dealer in Japan; dealer portfolio management and ensuring the most efficient and effective distribution of machines, engines and parts; brand management and marketing strategy; research and development for automation, electronics and software for machines and engines and digital investments for new customer and dealer solutions that integrate data analytics with state-of-the-art digital technologies while transforming the buying experience. Results for the All Other Segment are included as a reconciling item between reportable segments and consolidated external reporting. C. Segment measurement and reconciliations We determine the segment profit of Power & Energy, Construction Industries, Resource Industries, and our All Other Segment on a pretax basis and exclude most interest expense and certain other income (expense) items. We determine Financial Products Segment profit on a pretax basis and include other income (expense) items. Our CODM evaluates the operating performance of the segments using segment profit as it provides insight into the financial health of each segment. The CODM reviews this metric regularly to compare the profitability of segments, identify trends, and evaluate which segments require additional resources or strategic adjustments. The CODM uses segment profit to support the allocation of resources predominantly in the annual budget and forecasting process. Additionally, the CODM monitors forecast-to-actual variances, focusing on areas where performance deviates from expectations, when evaluating the performance of each segment and making decisions about allocating capital and other resources to each segment. There are several methodology differences between our segment reporting and our external reporting. The following is a list of the more significant methodology differences: • For Power & Energy, Construction Industries, Resource Industries, and our All Other Segment net assets generally include inventories, receivables, property, plant and equipment, goodwill, intangibles, accounts payable and customer advances. We generally manage at the corporate level liabilities other than accounts payable and customer advances, and we do not include these in segment operations. Financial Products Segment assets generally include all categories of assets. 31 Table of Contents • We value segment inventories and cost of sales using a current cost methodology. • We amortize goodwill allocated to segments using a fixed amount based on a 20 -year useful life. This methodology difference only impacts segment assets. We do not include goodwill amortization expense in segment profit. In addition, we have allocated to segments only a portion of goodwill for certain acquisitions made in 2011 or later. • We generally manage currency exposures for operating segments, other than Financial Products, at the corporate level and do not include in segment profit or segment assets the effects of changes in exchange rates on results of operations and financial position within the year. We report the net difference created in the translation of revenues and costs between exchange rates used for U.S. GAAP reporting and exchange rates used for segment reporting as a methodology difference. • We do not include stock-based compensation expense in segment profit. • Postretirement benefit expenses are split; segments are generally responsible for service costs, with the remaining elements of net periodic benefit cost included as a methodology difference. Reconciling items are created based on accounting differences between segment reporting and our consolidated external reporting. Please refer to pages 35 - 37 for financial information regarding significant reconciling items. Most of our reconciling items are self-explanatory given the above explanations. For the reconciliation of profit, we have grouped the reconciling items as follows: • Corporate costs: These costs are related to corporate requirements primarily for compliance and legal functions for the benefit of the entire organization. • Restructuring income/costs: May include costs for employee separation, long-lived asset impairments, contract terminations and (gains)/losses on divestitures. These costs are included in Other operating (income) expenses except for defined-benefit plan curtailment losses and special termination benefits, which are included in Other income (expense). Restructuring costs also include other exit-related costs, which may consist of accelerated depreciation, inventory write-downs, building demolition, equipment relocation and project management costs and LIFO inventory decrement benefits from inventory liquidations at closed facilities, all of which are primarily included in Cost of goods sold. See Note 20 for more information. • Methodology differences: See previous discussion of significant accounting differences between segment reporting and consolidated external reporting. • Timing: Timing differences in the recognition of costs between segment reporting and consolidated external reporting. For example, we report certain costs on the cash basis for segment reporting and the accrual basis for consolidated external reporting. 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. 32 Table of Contents 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 America Latin America EAME Asia/ Pacific 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 Construction Industries 5,065 676 1,456 1,064 8,261 85 8,346 Resource Industries 2,230 671 713 954 4,568 80 4,648 Financial Products Segment 765 122 137 121 1,145 1 — 1,145 Total sales and revenues from reportable segments 12,242 1,842 3,654 3,031 20,769 1,608 22,377 All Other Segment 9 1 2 3 15 69 84 Corporate Items and Eliminations ( 157 ) ( 22 ) ( 31 ) ( 31 ) ( 241 ) ( 1,677 ) ( 1,918 ) Total Sales and Revenues $ 12,094 $ 1,821 $ 3,625 $ 3,003 $ 20,543 $ — $ 20,543 Three Months Ended June 30, 2025 Power & Energy $ 3,225 $ 442 $ 1,306 $ 821 $ 5,794 $ 1,243 $ 7,037 Construction Industries 3,369 540 1,185 1,029 6,123 67 6,190 Resource Industries 1,668 592 584 945 3,789 97 3,886 Financial Products Segment 703 105 126 108 1,042 1 — 1,042 Total sales and revenues from reportable segments 8,965 1,679 3,201 2,903 16,748 1,407 18,155 All Other Segment 6 — 1 6 13 72 85 Corporate Items and Eliminations ( 120 ) ( 23 ) ( 22 ) ( 27 ) ( 192 ) ( 1,479 ) ( 1,671 ) 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 $ 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 America Latin America EAME Asia/ Pacific 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 — 2,241 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 — 2,049 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. 33 Table of Contents 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 June 30, Six Months Ended June 30, (Millions of dollars) 2026 2025 2026 2025 Power Generation $ 3,098 $ 2,407 $ 5,915 $ 4,403 Oil and Gas 2,044 1,867 3,467 3,125 Industrial 1,653 1,520 3,126 2,920 Power & Energy External Sales $ 6,795 $ 5,794 $ 12,508 $ 10,448 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 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 *Heavy Construction and Quarry & Aggregates (HC and Q&A) Profit from Reportable Segments (Millions of dollars) Power & Energy Construction Industries Resource Industries Financial Products Segment Total from Reportable Segments Three Months Ended June 30, 2026 Sales and revenues $ 8,238 $ 8,346 $ 4,648 $ 1,145 $ 22,377 Less 1 : Cost of goods sold 5,433 5,862 3,384 — 14,679 SG&A/R&D 2 787 529 545 221 2,082 Other segment items 3 ( 9 ) 8 26 596 621 Segment Profit $ 2,027 $ 1,947 $ 693 $ 328 $ 4,995 Three Months Ended June 30, 2025 Sales and revenues $ 7,037 $ 6,190 $ 3,886 $ 1,042 $ 18,155 Less 1 : Cost of goods sold 4,751 4,459 2,851 — 12,061 SG&A/R&D 2 730 470 465 204 1,869 Other segment items 3 2 17 7 590 616 Segment Profit $ 1,554 $ 1,244 $ 563 $ 248 $ 3,609 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. 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. 34 Table of Contents 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 Less 1 : Cost of goods sold 10,280 10,989 6,297 — 27,566 SG&A/R&D 2 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 Less 1 : Cost of goods sold 8,585 8,177 5,463 — 22,225 SG&A/R&D 2 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. 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. Reconciliation of Consolidated profit before taxes: (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 Profit (loss) from All Other Segment — — ( 43 ) ( 19 ) Cost centers ( 5 ) ( 10 ) 6 ( 6 ) Corporate costs ( 370 ) ( 211 ) ( 676 ) ( 424 ) Timing 345 ( 76 ) 427 ( 83 ) Restructuring income (costs) ( 202 ) ( 56 ) ( 243 ) ( 89 ) Methodology differences: Inventory/cost of sales 17 ( 21 ) 32 ( 48 ) Postretirement benefit expense ( 123 ) ( 67 ) ( 119 ) ( 53 ) Stock-based compensation expense ( 84 ) ( 85 ) ( 132 ) ( 130 ) Financing costs ( 8 ) ( 68 ) ( 62 ) ( 114 ) Currency 64 ( 95 ) 153 ( 149 ) Other income/expense methodology differences ( 57 ) ( 86 ) ( 152 ) ( 228 ) Other methodology differences ( 14 ) ( 16 ) ( 25 ) ( 28 ) Total consolidated profit before taxes $ 4,558 $ 2,818 $ 7,769 $ 5,388 35 Table of Contents Reconciliation of Assets: (Millions of dollars) June 30, 2026 December 31, 2025 Assets from reportable segments: Power & Energy $ 7,330 $ 8,438 Construction Industries 6,176 5,442 Resource Industries 9,673 9,036 Financial Products Segment 43,777 41,476 Total assets from reportable segments 66,956 64,392 Assets from All Other Segment 1,476 1,516 Items not included in segment assets: Cash and cash equivalents 5,945 9,333 Deferred income taxes 2,162 2,749 Goodwill and intangible assets 4,752 4,669 Property, plant and equipment – net and other assets 5,011 4,689 Inventory methodology differences ( 4,044 ) ( 3,622 ) Liabilities included in segment assets 19,369 15,330 Other 982 ( 471 ) Total assets $ 102,609 $ 98,585 Reconciliation of Depreciation and amortization: (Millions of dollars) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Depreciation and amortization from reportable segments: Power & Energy $ 157 $ 121 $ 303 $ 237 Construction Industries 69 66 137 129 Resource Industries 107 99 207 196 Financial Products Segment 187 178 373 356 Total depreciation and amortization from reportable segments 520 464 1,020 918 Items not included in segment depreciation and amortization: All Other Segment 71 66 139 129 Cost centers 27 25 55 49 Other ( 2 ) ( 1 ) ( 3 ) ( 2 ) Total depreciation and amortization $ 616 $ 554 $ 1,211 $ 1,094 36 Table of Contents Reconciliation of Capital expenditures: (Millions of dollars) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Capital expenditures from reportable segments: Power & Energy $ 328 $ 374 $ 619 $ 614 Construction Industries 99 64 154 110 Resource Industries 173 111 298 221 Financial Products Segment 452 379 717 549 Total capital expenditures from reportable segments 1,052 928 1,788 1,494 Items not included in segment capital expenditures: All Other Segment 59 59 81 95 Cost centers 42 35 71 62 Timing ( 21 ) ( 70 ) 238 225 Other ( 21 ) 3 ( 16 ) ( 3 ) Total capital expenditures $ 1,111 $ 955 $ 2,162 $ 1,873 17. Cat Financial financing activities Allowance for credit losses Portfolio segments A portfolio segment is the level at which Cat Financial develops a systematic methodology for determining its allowance for credit losses. Cat Financial's portfolio segments and related methods for estimating expected credit losses are as follows: Customer Cat Financial provides loans and finance leases to end-user customers primarily for the purpose of financing new and used Caterpillar machinery, engines and equipment for commercial use. Cat Financial also provides financing for power generation facilities that 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 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. If Cat Financial's collection efforts fail to bring a defaulted account current, Cat Financial generally can repossess the financed equipment, after satisfying local legal requirements, and sell it within the Caterpillar dealer network or through third-party auctions. Cat Financial estimates the allowance for credit losses related to its customer finance receivables based on loss forecast models utilizing probabilities of default and the estimated loss given default based on past loss experience adjusted for current conditions and reasonable and supportable forecasts capturing country and industry-specific economic factors. During the three and 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. 37 Table of Contents Dealer Cat Financial provides financing to Caterpillar dealers on a secured and unsecured basis in the form of wholesale financing plans and retail loans. Cat Financial's wholesale financing plans provide financing to dealers for their new Caterpillar equipment inventory and rental fleets. The retail loans to Caterpillar dealers are primarily for working capital. Cat Financial estimates the allowance for credit losses for dealer finance receivables based on historical loss rates with consideration of current economic conditions and reasonable and supportable forecasts. In general, Cat Financial's Dealer portfolio segment has not historically experienced large increases or decreases in credit losses based on changes in economic conditions due to its close working relationships with the dealers and their financial strength. Therefore, Cat Financial made no adjustments to historical loss rates during the three and six months ended June 30, 2026. Classes of finance receivables Cat Financial further evaluates portfolio segments by the class of finance receivables, which is defined as a level of information (below a portfolio segment) in which the finance receivables have the same initial measurement attribute and a similar method for assessing and monitoring credit risk. Cat Financial's classes, which align with management reporting for credit losses, are as follows: • North America - Finance receivables originated in the United States and Canada. • EAME - Finance receivables originated in Europe, Africa, the Middle East and Eurasia. • Asia/Pacific - Finance receivables originated in Australia, New Zealand, China, Japan, Southeast Asia and India. • Latin America - Finance receivables originated in Mexico and Central and South American countries. • Mining - Finance receivables originated worldwide related to large mining customers. • Power - Finance receivables originated worldwide related to large power customers of Caterpillar electrical power generation, gas compression and co-generation systems and non-Caterpillar equipment that is powered by these systems. Receivable balances, including accrued interest, are written off against the allowance for credit losses when, in the judgment of management, they are considered uncollectible (generally upon repossession of the collateral). Generally, the amount of the write-off is determined by comparing the fair value of the collateral, less cost to sell, to the amortized cost of the receivable. Subsequent recoveries, if any, are credited to the allowance for credit losses when received. 38 Table of Contents An analysis of the allowance for credit losses was as follows: (Millions of dollars) Three Months Ended June 30, 2026 Three Months Ended June 30, 2025 Customer Dealer Total Customer Dealer Total Beginning balance $ 273 $ 4 $ 277 $ 273 $ 4 $ 277 Write-offs ( 46 ) — ( 46 ) ( 27 ) — ( 27 ) Recoveries 26 — 26 9 — 9 Provision for credit losses 1 29 — 29 21 — 21 Other — — — 5 — 5 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 Excludes provision for credit losses on unfunded commitments and other miscellaneous receivables. 39 Table of Contents Gross write-offs by origination year for the Customer portfolio segment were as follows: (Millions of dollars) Three Months Ended June 30, 2026 2026 2025 2024 2023 2022 Prior Revolving Finance Receivables Total North America $ — $ 5 $ 7 $ 7 $ 4 $ 3 $ 3 $ 29 EAME — 2 1 1 1 — — 5 Asia/Pacific — 1 1 1 1 — — 4 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 Finance 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 Finance 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 Six Months Ended June 30, 2025 2025 2024 2023 2022 2021 Prior Revolving Finance Receivables Total North America $ — $ 5 $ 11 $ 6 $ 4 $ 3 $ 4 $ 33 EAME — 2 3 1 1 — — 7 Asia/Pacific — 1 2 1 1 — — 5 Latin America — — 2 3 — 1 — 6 Mining — 3 1 1 — — — 5 Power — — — — — 1 — $ 1 Total $ — $ 11 $ 19 $ 12 $ 6 $ 5 $ 4 $ 57 Credit quality of finance receivables At origination, Cat Financial evaluates credit risk based on a variety of credit quality factors including prior payment experience, customer financial information, credit ratings, loan-to-value ratios, probabilities of default, industry trends, macroeconomic factors and other internal metrics. On an ongoing basis, Cat Financial monitors credit quality based on past-due status as there is a meaningful correlation between the past-due status of customers and the risk of loss. In determining past-due status, Cat Financial considers the entire finance receivable past due when any installment is over 30 days past due. 40 Table of Contents Customer The aging analysis of Cat Financial's Customer portfolio segment by origination year was as follows: (Millions of dollars) June 30, 2026 2026 2025 2024 2023 2022 Prior Revolving Finance Receivables Total Finance Receivables North America Current $ 2,908 $ 4,639 $ 2,876 $ 1,318 $ 452 $ 129 $ 569 $ 12,891 31-60 days past due 10 45 31 20 10 3 6 125 61-90 days past due 2 11 9 6 2 1 2 33 91+ days past due 1 27 31 19 11 5 2 96 EAME Current 692 1,253 728 452 209 76 — 3,410 31-60 days past due 3 9 11 9 3 1 — 36 61-90 days past due — 5 7 4 2 1 — 19 91+ days past due 1 8 11 12 8 3 — 43 Asia/Pacific Current 620 773 421 196 58 10 1 2,079 31-60 days past due — 6 7 2 1 — — 16 61-90 days past due — 4 3 — — — — 7 91+ days past due — 3 3 2 2 — — 10 Latin America Current 570 752 372 147 54 18 5 1,918 31-60 days past due 3 10 8 4 1 — — 26 61-90 days past due — 3 2 1 1 — — 7 91+ days past due — 7 14 7 4 1 — 33 Mining Current 389 689 540 357 214 106 15 2,310 31-60 days past due — 4 — — — — — 4 61-90 days past due — — — — — — — — 91+ days past due — — 1 1 — — — 2 Power Current 94 186 221 151 35 37 111 835 31-60 days past due — — — — — — — — 61-90 days past due — — — — — — — — 91+ days past due — — — — — — — — Totals by Aging Category Current $ 5,273 $ 8,292 $ 5,158 $ 2,621 $ 1,022 $ 376 $ 701 $ 23,443 31-60 days past due 16 74 57 35 15 4 6 207 61-90 days past due 2 23 21 11 5 2 2 66 91+ days past due 2 45 60 41 25 9 2 184 Total Customer $ 5,293 $ 8,434 $ 5,296 $ 2,708 $ 1,067 $ 391 $ 711 $ 23,900 41 Table of Contents (Millions of dollars) December 31, 2025 2025 2024 2023 2022 2021 Prior Revolving Finance Receivables Total Finance Receivables North America Current $ 5,531 $ 3,634 $ 1,845 $ 743 $ 318 $ 20 $ 510 $ 12,601 31-60 days past due 30 42 28 18 6 1 4 129 61-90 days past due 11 14 10 5 3 — 2 45 91+ days past due 11 34 29 20 8 3 1 106 EAME Current 1,551 929 614 316 114 44 — 3,568 31-60 days past due 5 12 6 6 2 — — 31 61-90 days past due 3 5 3 2 1 — — 14 91+ days past due 5 9 12 6 3 2 — 37 Asia/Pacific Current 996 571 290 104 25 1 — 1,987 31-60 days past due 5 8 3 1 — — — 17 61-90 days past due 2 3 1 2 — — — 8 91+ days past due 1 1 2 2 — — — 6 Latin America Current 984 511 212 96 15 1 4 1,823 31-60 days past due 3 6 5 3 — — — 17 61-90 days past due 2 2 2 1 — 1 — 8 91+ days past due 1 10 7 4 1 — — 23 Mining Current 765 698 484 278 106 46 — 2,377 31-60 days past due 3 — — — — — — 3 61-90 days past due — — — — — — — — 91+ days past due 1 1 8 — — — — 10 Power Current 168 250 179 37 8 35 148 825 31-60 days past due — — — — — — — — 61-90 days past due — — — — — — — — 91+ days past due — — — — — — — — Totals by Aging Category Current $ 9,995 $ 6,593 $ 3,624 $ 1,574 $ 586 $ 147 $ 662 $ 23,181 31-60 days past due 46 68 42 28 8 1 4 197 61-90 days past due 18 24 16 10 4 1 2 75 91+ days past due 19 55 58 32 12 5 1 182 Total Customer $ 10,078 $ 6,740 $ 3,740 $ 1,644 $ 610 $ 154 $ 669 $ 23,635 Dealer 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. 42 Table of Contents Non-accrual finance receivables Recognition of income is suspended and the finance receivable is placed on non-accrual status when management determines that collection of future income is not probable. Contracts on non-accrual status are generally more than 120 days past due. Recognition is resumed and previously suspended income is recognized when collection is considered probable. Payments received while the finance receivable is on non-accrual status are applied to interest and principal in accordance with the contractual terms. Interest earned but uncollected prior to the receivable being placed on non-accrual status is written off through Provision for credit losses when, in the judgment of management, it is considered uncollectible. 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) June 30, 2026 December 31, 2025 Amortized Cost Amortized Cost Non-accrual With an Allowance 91+ Still Accruing Non-accrual With an Allowance 91+ Still Accruing North America $ 90 $ 13 $ 90 $ 20 EAME 40 6 35 5 Asia/Pacific 7 3 4 2 Latin America 34 1 24 1 Mining 7 — 10 — Total $ 178 $ 23 $ 163 $ 28 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 Cat Financial periodically modifies the terms of their finance receivable agreements. Typically, the types of modifications granted are payment deferrals, interest-only payment periods and/or term extensions. Many modifications Cat Financial grants are for commercial reasons or for borrowers experiencing some form of short-term financial stress and may result in insignificant payment delays. Cat Financial does not consider these borrowers to be experiencing financial difficulty. Modifications for borrowers Cat Financial does consider to be experiencing financial difficulty typically result in payment deferrals and/or reduced payments for a period of four months or longer, term extension of six months or longer, or a combination of both. During the three and 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. 43 Table of Contents 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 June 30, Six Months Ended June 30, 2026 2025 2026 2025 Amortized cost of finance receivables modified $ 20 $ 16 $ 31 $ 20 Modifications as a percentage of Customer portfolio 0.08 % 0.07 % 0.13 % 0.09 % The financial effects of term extensions and payment delays for borrowers experiencing financial difficulty were as follows: (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 Weighted average payment deferral and/or interest only periods 7 7 7 7 After Cat Financial modifies a finance receivable, they continue to track its performance under its most recent modified terms. Defaults of loans modified in the prior twelve months were not significant during the three and 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; therefore, a change to the allowance for credit losses is generally not recorded upon modification. On rare occasions when principal forgiveness is provided, the amount forgiven is written off against the allowance for credit losses. 18. Fair value disclosures A. Fair value measurements The guidance on fair value measurements defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. This guidance also specifies a fair value hierarchy based upon the observability of inputs used in valuation techniques. Observable inputs (highest level) reflect market data obtained from independent sources, while unobservable inputs (lowest level) reflect internally developed market assumptions. In accordance with this guidance, fair value measurements are classified under the following hierarchy: • Level 1 — Quoted prices for identical instruments in active markets. • Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs or significant value-drivers are observable in active markets. • Level 3 — Model-derived valuations in which one or more significant inputs or significant value-drivers are unobservable. When available, we use quoted market prices to determine fair value, and we classify such measurements within Level 1. In some cases where market prices are not available, we make use of observable market-based inputs to calculate fair value, in which case the measurements are classified within Level 2. If quoted or observable market prices are not available, fair value is based upon valuations in which one or more significant inputs are unobservable, including internally developed models that use, where possible, current market-based parameters such as interest rates, yield curves and currency rates. These measurements are classified within Level 3. 44 Table of Contents We classify fair value measurements according to the lowest level input or value-driver that is significant to the valuation. We may therefore classify a measurement within Level 3 even though there may be significant inputs that are readily observable. Fair value measurement includes the consideration of nonperformance risk. Nonperformance risk refers to the risk that an obligation (either by a counterparty or Caterpillar) will not be fulfilled. For financial assets traded in an active market (Level 1 and certain Level 2), the nonperformance risk is included in the market price. For certain other financial assets and liabilities (certain Level 2 and Level 3), our fair value calculations have been adjusted accordingly. Investments in debt and equity securities We have investments in certain debt and equity securities that are recorded at fair value. Fair values for our U.S. treasury bonds and large capitalization value and smaller company growth equity securities are based upon valuations for identical instruments in active markets. Fair values for other government debt securities, corporate debt securities and mortgage-backed debt securities are based upon models that take into consideration such market-based factors as recent sales, risk-free yield curves and prices of similarly rated bonds. In addition, Insurance Services has an equity investment in a real estate investment trust (REIT) which is recorded at fair value based on the net asset value (NAV) of the investment and is not classified within the fair value hierarchy. See Note 8 for additional information on our investments in debt and equity securities. Derivative financial instruments The fair value of interest rate contracts is primarily based on a standard industry accepted valuation model that utilizes the appropriate market-based forward swap curves and zero-coupon interest rates to determine discounted cash flows. The fair value of foreign currency and commodity forward, option and cross currency contracts is based on standard industry accepted valuation models that discount cash flows resulting from the differential between the contract price and the market-based forward rate. The fair value of total return swap contracts is primarily based on valuing the underlying securities or funds using pricing by industry providers and the average Secured Overnight Financing Rate (SOFR) plus a spread. See Note 5 for additional information. 45 Table of Contents 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) Level 1 Level 2 Level 3 Measured at NAV Total Assets / Liabilities, at Fair Value Assets Debt securities Government debt securities U.S. treasury bonds $ 10 $ — $ — $ — $ 10 Other U.S. and non-U.S. government bonds — 67 — — 67 Corporate debt securities Corporate bonds and other debt securities — 2,861 — — 2,861 Asset-backed securities — 291 — — 291 Mortgage-backed debt securities U.S. governmental agency — 569 — — 569 Residential — 4 — — 4 Commercial — 154 — — 154 Total debt securities 10 3,946 — — 3,956 Equity securities Large capitalization value 317 — — — 317 Smaller company growth 71 — — — 71 REIT — — — 175 175 Total equity securities 388 — — 175 563 Derivative financial instruments - assets Foreign currency contracts - net — 163 — — 163 Total return swap contracts - net — 39 — — 39 Total assets $ 398 $ 4,148 $ — $ 175 $ 4,721 Liabilities Derivative financial instruments - liabilities Interest rate contracts - net $ — $ 103 $ — $ — $ 103 Commodity contracts - net — 2 — — 2 Total liabilities $ — $ 105 $ — $ — $ 105 46 Table of Contents December 31, 2025 (Millions of dollars) Level 1 Level 2 Level 3 Measured at NAV Total Assets / Liabilities, at Fair Value Assets Debt securities Government debt securities U.S. treasury bonds $ 10 $ — $ — $ — $ 10 Other U.S. and non-U.S. government bonds — 74 — — 74 Corporate debt securities Corporate bonds and other debt securities — 2,480 — — 2,480 Asset-backed securities — 273 — — 273 Mortgage-backed debt securities U.S. governmental agency — 572 — — 572 Residential — 1 — — 1 Commercial — 139 — — 139 Total debt securities 10 3,539 — — 3,549 Equity securities Large capitalization value 283 — — — 283 Smaller company growth 65 — — — 65 REIT — — — 174 174 Total equity securities 348 — — 174 522 Derivative financial instruments - assets Foreign currency contracts - net — 204 — — 204 Commodity contracts - net — 8 — — 8 Total assets $ 358 $ 3,751 $ — $ 174 $ 4,283 Liabilities Derivative financial instruments - liabilities Interest rate contracts - net $ — $ 40 $ — $ — $ 40 Total return swap contracts - net — 1 — — 1 Total liabilities $ — $ 41 $ — $ — $ 41 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. In these cases, an allowance for credit losses may be established based either on the present value of expected future cash flows discounted at the receivables' effective interest rate, the fair value of the collateral for collateral-dependent receivables, or the observable market price of the receivable. In determining the collateral value, Cat Financial estimates the current fair market value of the collateral less selling costs. Cat Financial had loans carried at fair value of $ 68 million and $ 63 million as of June 30, 2026 and December 31, 2025, respectively. B. Fair values of financial instruments In addition to the methods and assumptions we use to record the fair value of financial instruments as discussed in the Fair value measurements section above, we use the following methods and assumptions to estimate the fair value of our financial instruments: Cash and cash equivalents Carrying amount approximates fair value. We classify cash and cash equivalents as Level 1. See Consolidated Statement of Financial Position. 47 Table of Contents Restricted cash and short-term investments Carrying amount approximates fair value. We include restricted cash and short-term investments in Prepaid expenses and other current assets in the Consolidated Statement of Financial Position. We classify these instruments as Level 1. See Note 8 for additional information. Finance receivables We estimate fair value by discounting the future cash flows using current rates, representative of receivables with similar remaining maturities. Wholesale inventory receivables We estimate fair value by discounting the future cash flows using current rates, representative of receivables with similar remaining maturities. Short-term borrowings Carrying amount approximates fair value. We classify short-term borrowings as Level 1. See Consolidated Statement of Financial Position. Long-term debt We estimate fair value for fixed and floating rate debt based on quoted market prices. Our financial instruments not carried at fair value were as follows: June 30, 2026 December 31, 2025 (Millions of dollars) Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Levels Reference Assets Finance receivables – net (excluding finance leases 1 ) $ 18,512 $ 18,130 $ 17,922 $ 17,648 3 Note 17 Wholesale inventory receivables – net (excluding finance leases 1 ) 2,455 2,391 1,931 1,871 3 Liabilities Long-term debt (including amounts due within one year) Machinery, Power & Energy $ 10,690 $ 10,168 $ 10,713 $ 10,363 2 Financial Products 29,410 29,415 27,103 27,204 2 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. 48 Table of Contents 19. Other income (expense) Three Months Ended June 30, Six Months Ended June 30, (Millions of dollars) 2026 2025 2026 2025 Investment and interest income $ 153 $ 81 $ 257 $ 180 Foreign exchange gains (losses) 1 14 ( 125 ) 50 ( 143 ) License fee income 34 37 66 72 Net periodic pension and OPEB income (cost), excluding service cost 30 13 60 24 Gains (losses) on securities 41 28 38 31 Miscellaneous income (loss) 126 50 187 27 Total $ 398 $ 84 $ 658 $ 191 1 Includes gains (losses) from foreign exchange derivative contracts. See Note 5 for further details. 20. Restructuring income/costs Our accounting for employee separations is dependent upon how the particular program is designed. For voluntary programs, we recognize eligible separation costs at the time of employee acceptance unless the acceptance requires explicit approval by the company. For involuntary programs, we recognize eligible costs when management has approved the program, the affected employees have been properly notified and the costs are estimable. Restructuring costs for the three and 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 1 139 — 139 — Other 2 29 49 35 65 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 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. entities. 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. 49 Table of Contents 21. Supplier finance programs We facilitate voluntary supplier finance programs (the “Programs”) through participating financial institutions. The Programs are available to a wide range of suppliers and allow them the option to manage their cash flow. We are not a party to the agreements between the participating financial institutions and the suppliers in connection with the Programs. 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 $ 1.15 billion and $ 936 million at June 30, 2026 and December 31, 2025, respectively. 22. Acquisitions RPMGlobal On February 17, 2026, Caterpillar completed the acquisition of RPMGlobal Holdings Limited (RPMGlobal), an Australian based software company. Headquartered in Brisbane, Australia, RPMGlobal is a leading provider of mining software solutions. RPMGlobal has deep domain expertise in mining technology enablement, providing global customers with data-driven software solutions at every stage of the mining lifecycle. The acquisition, within the Resource Industries segment, aligns with our strategy of providing customers with expanded product offerings including advanced technology solutions. The purchase price was approximately $ 733 million, net of $ 53 million of acquired cash. We financed the transaction with available cash. As of the acquisition date, the tangible assets acquired were $ 78 million which were recorded at their fair values and primarily included cash of $ 53 million and receivables of $ 18 million. Finite-lived intangible assets acquired included $ 110 million related to developed intellectual property, customer relationships of $ 85 million and trade names of $ 5 million, each of which were recorded at their acquisition date fair value. These intangible assets will be amortized on a straight-line basis over a weighted-average useful life of approximately 10 years. Liabilities assumed as of the acquisition date were approximately $ 38 million. Goodwill of $ 546 million, 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. These values represent a preliminary allocation of the purchase price subject to finalization of fair value appraisals and post-closing procedures. The results of the acquired business from the acquisition date are included in the accompanying consolidated financial statements and reported in the Resource Industries segment in Note 16. Assuming this transaction had been made at the beginning of any period presented, the consolidated pro forma results would not be materially different from reported results. 50 Table of Contents