Does the Rail realignment change Caterpillar's reported consolidated results?

No. The filing states that the segment changes affect only the presentation of historical segment information and have no impact on previously reported consolidated financial statements. Consolidated sales, profit before taxes, and other totals are unchanged.

Why did Caterpillar's segment profit decline in 2025 even though sales grew?

On the recast basis, FY2025 sales rose about 4.3%, but total reportable segment profit fell about 8.6%, driven mainly by lower profit at Construction Industries and Resource Industries. Cost of goods sold grew faster than revenue in those segments, and restructuring costs also increased. The filing itself does not provide a detailed causal explanation, so investors should consult the 10-K and earnings materials for management's commentary.

Are the recast segment figures final?

Not entirely. The company says the recast information is unaudited and remains subject to additional adjustments as it finalizes the new reporting structure for the Rail division realignment. Investors should expect possible further revisions.

Has Caterpillar changed its 2026 outlook?

The filing says previously communicated segment-level assumptions from the January 29, 2026 earnings call would not have materially changed under the realigned structure, and it is not a reaffirmation or update of those assumptions. Updated forward-looking assumptions will be provided on the Q1 2026 earnings call on April 30, 2026.

How did the Power & Energy end-market mix change?

Power & Energy external sales grew to $23.7 billion in FY2025 from $20.9 billion, led by Power Generation ($10.3 billion, up from $7.8 billion) and Oil and Gas ($7.5 billion, up from $7.0 billion). Industrial sales declined slightly to $6.0 billion from $6.1 billion. The Transportation application was eliminated, with marine sales and on-highway engine product support now reported under Industrial, so year-over-year comparisons should be read with that reclassification in mind.

CAT 8-K SEC Disclosure — Mar 26, 2026

01—Abstract

Summary

Summary of the 8-K filed March 26, 2026. Cited figures are marked; the original filing is the authoritative source.

Caterpillar's Form 8-K furnishes recast, unaudited historical segment data reflecting the January 1, 2026 move of its Rail division from Power & Energy into Resource Industries, along with several other reporting changes.

The filing does not alter previously reported consolidated financial statements. It is a presentation update intended to help investors compare historical results with the new segment structure, and it does not report new operating results or change guidance. On the recast basis, FY2025 consolidated sales and revenues were $67.6 billion^a, up about 4.3% from $64.8 billion in FY2024.

Total segment profit from reportable segments, however, fell to $14.0 billion^b from $15.4 billion (about -8.6%), and consolidated profit before taxes declined to $11.5 billion from $13.4 billion (about -13.7%). Restructuring costs rose to $445 million from $359 million. Construction Industries and Resource Industries saw sharp profit declines (roughly -24% and -20%, respectively), while Power & Energy profit rose about 12% to $6.3 billion, partly reflecting the reclassification of Rail and other transfers.

Cash and equivalents increased to $9.3 billion^c from $6.2 billion, and capital expenditures rose to $4.3 billion from $3.2 billion. Management states that its previously communicated segment-level assumptions from the Q4 2025 earnings call (January 29, 2026) would not have materially changed under the new structure, and that updated forward-looking assumptions will be provided on the Q1 2026 earnings call scheduled for April 30, 2026. Investors should treat the recast figures as unaudited and subject to further adjustment as the new reporting structure is finalized, and should read the filing alongside the FY2025 Form 10-K.

02—Key points

Key Highlights

Rail division realigned from Power & Energy into Resource Industries effective January 1, 2026; recast historical segment data furnished as Exhibit 99.1 for comparability, with no change to consolidated financial statements.
FY2025 consolidated sales and revenues of $67.6 billion, up about 4.3% from $64.8 billion in FY2024.
FY2025 total profit from reportable segments fell about 8.6% to $14.0 billion from $15.4 billion; consolidated profit before taxes fell about 13.7% to $11.5 billion from $13.4 billion.
Construction Industries segment profit dropped to $4.7 billion from $6.2 billion (about -24%), and Resource Industries segment profit fell to $2.2 billion from $2.7 billion (about -20%).
Power & Energy segment profit rose about 12% to $6.3 billion on the recast basis, with Q4 2025 segment profit of $1.8 billion versus $1.4 billion a year earlier.
Restructuring costs increased to $445 million in FY2025 from $359 million in FY2024, with $319 million recorded in Q4 2025 alone.
Management says prior segment-level assumptions would not have materially changed under the new structure; updated forward-looking guidance is expected on the April 30, 2026 Q1 2026 earnings call.

03—Questions

Frequently Asked Questions

Does the Rail realignment change Caterpillar's reported consolidated results?
No. The filing states that the segment changes affect only the presentation of historical segment information and have no impact on previously reported consolidated financial statements. Consolidated sales, profit before taxes, and other totals are unchanged.
Why did Caterpillar's segment profit decline in 2025 even though sales grew?
On the recast basis, FY2025 sales rose about 4.3%, but total reportable segment profit fell about 8.6%, driven mainly by lower profit at Construction Industries and Resource Industries. Cost of goods sold grew faster than revenue in those segments, and restructuring costs also increased. The filing itself does not provide a detailed causal explanation, so investors should consult the 10-K and earnings materials for management's commentary.
Are the recast segment figures final?
Not entirely. The company says the recast information is unaudited and remains subject to additional adjustments as it finalizes the new reporting structure for the Rail division realignment. Investors should expect possible further revisions.
Has Caterpillar changed its 2026 outlook?
The filing says previously communicated segment-level assumptions from the January 29, 2026 earnings call would not have materially changed under the realigned structure, and it is not a reaffirmation or update of those assumptions. Updated forward-looking assumptions will be provided on the Q1 2026 earnings call on April 30, 2026.
How did the Power & Energy end-market mix change?
Power & Energy external sales grew to $23.7 billion in FY2025 from $20.9 billion, led by Power Generation ($10.3 billion, up from $7.8 billion) and Oil and Gas ($7.5 billion, up from $7.0 billion). Industrial sales declined slightly to $6.0 billion from $6.1 billion. The Transportation application was eliminated, with marine sales and on-highway engine product support now reported under Industrial, so year-over-year comparisons should be read with that reclassification in mind.

04—Continue

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