10-KPeriod: FY2025

CATERPILLAR INC Annual Report, Year Ended Dec 31, 2025

Filed February 13, 2026For Securities:CAT

Summary

Caterpillar Inc. reported total sales and revenues of $67.589 billion 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% 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.

Financial Highlights

55 data points
Beta

Revenue

$67.59B

33.8% Gross Margin

Net Income

$8.88B

13.1% Net Margin

EPS (Diluted)

$18.81

Total Assets

$98.58B

Cash & Equivalents

$9.98B

Free Cash Flow

$8.92B

Financial Statements
Beta
Revenue$67.59B
Cost of Revenue$44.75B
Gross Profit$22.84B
R&D Expenses$2.15B
SG&A Expenses$6.99B
Operating Expenses$56.44B
Operating Income$11.15B
Net Income$8.88B
EPS (Basic)$18.90
EPS (Diluted)$18.81
Shares Outstanding (Basic)470.00M
Shares Outstanding (Diluted)472.30M

Key Highlights

  • 1Total sales and revenues increased by 4% to $67.589 billion in 2025, driven by higher sales volumes.
  • 2The Power & Energy segment experienced significant growth, with sales increasing by 12%.
  • 3Operating profit margin declined to 16.5% in 2025, primarily due to increased manufacturing costs (including tariffs) and unfavorable price realization.
  • 4Enterprise operating cash flow remained strong at $11.7 billion in 2025.
  • 5The company expects continued sales growth in 2026, projecting revenue growth at the top end of its 5-7% CAGR target.
  • 6Caterpillar ended 2025 with $10.0 billion in enterprise cash.
  • 7The company is strategically focused on Commercial Excellence and Advanced Technology Leadership to drive future growth.

Frequently Asked Questions

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.

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.

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.

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.