01—Abstract
Summary
Summary of the 10-K filed February 13, 2026. Cited figures are marked; the original filing is the authoritative source.
Caterpillar Inc. reported total sales and revenues of $67.589 billiona for the fiscal year 2025, an increase of 4% compared to the prior year.
This growth was primarily driven by higher sales volumes across its segments, particularly in Power & Energy, which saw a notable 12%b increase in sales. However, operating profit margin decreased to 16.5% in 2025 from 20.2% in 2024, mainly due to unfavorable manufacturing costs, including the impact of higher tariffs, and unfavorable price realization. The company's outlook for 2026 anticipates continued sales growth, driven by robust demand in end markets such as construction, mining, and energy, supported by significant infrastructure spending and the growing demand for data center solutions.
Caterpillar is also actively managing its financial position, with a strong cash flow and a focus on returning capital to shareholders through dividends and share repurchases, while maintaining its target credit rating. The company's strategic focus on commercial excellence and advanced technology positions it to address evolving customer needs and market dynamics.
02—Key points
Key Highlights
- Total sales and revenues increased by 4% to $67.589 billion in 2025, driven by higher sales volumes.
- The Power & Energy segment experienced significant growth, with sales increasing by 12%.
- Operating profit margin declined to 16.5% in 2025, primarily due to increased manufacturing costs (including tariffs) and unfavorable price realization.
- Enterprise operating cash flow remained strong at $11.7 billion in 2025.
- The company expects continued sales growth in 2026, projecting revenue growth at the top end of its 5-7% CAGR target.
- Caterpillar ended 2025 with $10.0 billion in enterprise cash.
- The company is strategically focused on Commercial Excellence and Advanced Technology Leadership to drive future growth.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Caterpillar Inc kept $0.13.
- Revenue$67.59B100.0%
- Cost of revenue−$44.75B66.2%
- Gross profit$22.84B33.8%
- Operating costs−$11.69B17.3%
- Operating income$11.15B16.5%
- Interest, other & tax−$2.27B3.4%
- Net income$8.88B13.1%
Where FY2025 revenue went
$67.59B- Cost of revenue: $44.75B, 66% of revenue
- Net income: $8.88B, 13% of revenue
- R&D: $2.15B, 3.2% of revenue
- SG&A: $6.99B, 10% of revenue
- Other operating costs: $2.55B, 3.8% of revenue
- Interest, other & tax: $2.27B, 3.4% of revenue
Kept 13% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 13, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $67.59B$64.81B | +4.3% |
| Cost of Revenue | $44.75B$40.20B | +11.3% |
| Gross Profit | $22.84B$24.61B | −7.2% |
| R&D Expenses | $2.15B$2.11B | +1.9% |
| SG&A Expenses | $6.99B$6.67B | +4.8% |
| Operating Expenses | $56.44B$51.74B | +9.1% |
| Operating Income | $11.15B$13.07B | −14.7% |
| Net Income | $8.88B$10.79B | −17.7% |
| EPS (Basic) | $18.90$22.17 | −14.7% |
| EPS (Diluted) | $18.81$22.05 | −14.7% |
| Shares Outstanding (Basic) | 470.00M486.70M | −3.4% |
| Shares Outstanding (Diluted) | 472.30M489.40M | −3.5% |
05—Questions
Frequently Asked Questions
What was Caterpillar's financial performance in 2025 compared to 2024?
In 2025, Caterpillar reported total sales and revenues of $67.589 billion, a 4% increase from $64.809 billion in 2024. This growth was driven by higher sales volume, especially in the Power & Energy segment. However, operating profit margin decreased to 16.5% from 20.2% in the prior year, mainly due to unfavorable manufacturing costs, including tariffs, and price realization.
What is Caterpillar's outlook for 2026?
Caterpillar anticipates continued sales growth in 2026, expecting revenue to grow at the top end of its 5-7% compound annual growth rate target. This growth is expected to be supported by healthy demand across its primary segments, particularly driven by infrastructure spending, data center build-outs, and positive trends in mining and construction.
What are the key segments contributing to Caterpillar's business?
Caterpillar operates through three primary reportable segments: Construction Industries, Resource Industries, and Power & Energy. It also has a Financial Products segment that provides financing and insurance services to customers and dealers.
How did tariffs impact Caterpillar's financial results?
The company noted that unfavorable manufacturing costs in 2025 largely reflected the impact of higher tariffs. For 2026, Caterpillar expects the impact from incremental tariffs to be around $2.6 billion, an increase from 2025.
06—Continue