CATERPILLAR INC Annual Report, Year Ended Dec 31, 2025

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.