01—Abstract
Summary
Summary of the 10-K filed February 16, 2024. Cited figures are marked; the original filing is the authoritative source.
Caterpillar Inc. (CAT) reported robust financial performance for the fiscal year ending December 31, 2023.
Sales and revenues reached $67.06 billiona, a significant 13% increase over the previous year, driven primarily by favorable price realization and higher sales volumes across its key segments. The company demonstrated strong operational efficiency, with operating profit margin improving to 19.3% in 2023, up from 13.3% in 2022. Adjusted profit per share was $21.21, reflecting a substantial year-over-year increase.
Caterpillar generated $12.9 billionb in enterprise operating cash flow, underscoring its healthy liquidity position. The company also highlighted its ongoing commitment to strategic investments in services, technology (including autonomy, alternative fuels, and electrification), and sustainability as drivers for future profitable growth, while maintaining a strong financial position and returning capital to shareholders through dividends and share repurchases.
02—Key points
Key Highlights
- Total sales and revenues increased by 13% to $67.06 billion in 2023, driven by favorable price realization and higher sales volume.
- Operating profit margin improved significantly to 19.3% in 2023, compared to 13.3% in 2022, indicating enhanced operational efficiency.
- Profit per share was $20.12 in 2023, with an adjusted profit per share of $21.21, a substantial increase from $12.64 and $13.84 respectively in 2022.
- Enterprise operating cash flow was robust at $12.9 billion in 2023, and the company ended the year with $7.0 billion in enterprise cash.
- The company's order backlog decreased slightly to $27.5 billion at the end of 2023 from $30.4 billion at the end of 2022.
- Caterpillar continues to invest in strategic growth areas like services, technology (autonomy, alternative fuels, electrification), and sustainability.
- The company repurchased $4.98 billion of its common stock in 2023, with $7.8 billion remaining available under its share repurchase authorization.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2023, Caterpillar Inc kept $0.15.
- Revenue$67.06B100.0%
- Cost of revenue−$42.77B63.8%
- Gross profit$24.29B36.2%
- Operating costs−$11.33B16.9%
- Operating income$12.97B19.3%
- Interest, other & tax−$2.63B3.9%
- Net income$10.34B15.4%
Where FY2023 revenue went
$67.06B- Cost of revenue: $42.77B, 64% of revenue
- Net income: $10.34B, 15% of revenue
- R&D: $2.11B, 3.1% of revenue
- SG&A: $6.37B, 9.5% of revenue
- Other operating costs: $2.85B, 4.2% of revenue
- Interest, other & tax: $2.63B, 3.9% of revenue
Kept 15% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2023filed February 16, 2024Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Revenue | $67.06B$59.43B | +12.8% |
| Cost of Revenue | $42.77B$41.35B | +3.4% |
| Gross Profit | $24.29B$18.08B | +34.4% |
| R&D Expenses | $2.11B$1.81B | +16.2% |
| SG&A Expenses | $6.37B$5.65B | +12.7% |
| Operating Expenses | $54.09B$51.52B | +5.0% |
| Operating Income | $12.97B$7.90B | +64.0% |
| Net Income | $10.34B$6.71B | +54.1% |
| EPS (Basic) | $20.24$12.72 | +59.1% |
| EPS (Diluted) | $20.12$12.64 | +59.2% |
| Shares Outstanding (Basic) | 510.60M526.90M | −3.1% |
| Shares Outstanding (Diluted) | 513.60M530.40M | −3.2% |
05—Questions
Frequently Asked Questions
What were Caterpillar's key financial results for 2023?
Caterpillar reported total sales and revenues of $67.06 billion, a 13% increase from 2022. The operating profit margin improved to 19.3%, and profit per share was $20.12 (adjusted $21.21), demonstrating strong performance and operational efficiency.
How did Caterpillar's different segments perform in 2023?
All three primary segments – Construction Industries, Resource Industries, and Energy & Transportation – saw increased sales in 2023 compared to 2022. The Energy & Transportation segment experienced the largest percentage increase at 18%, driven by higher sales volume and favorable price realization across all applications.
What is Caterpillar's outlook for 2024?
Caterpillar anticipates sales and revenues for 2024 to be broadly similar to 2023, supported by continued healthy underlying demand and slightly favorable price realization. The company expects another year of services growth and anticipates a small benefit from price realization in the first half of 2024.
What is Caterpillar's strategy for future growth?
Caterpillar's strategy focuses on three core areas: Expanded Offerings, Operational Excellence, and Services. In 2022, Sustainability was added as a strategic pillar. The company continues to invest in technology, including autonomy, alternative fuels, connectivity, digital solutions, and electrification, to drive long-term profitable growth.
06—Continue