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Third Quarter 2025 Financial Review October 29, 2025
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3Q 2025 EARNINGS RELEASE 2 Certain statements in this financial review relate to future events and expectations and are forward -looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “believe,” “estimate,” “will be,” “will,” “would,” “expect,” “anticipate,” “plan,” “forecast,” “target,” “guide,” “project,” “intend,” “could,” “should” or other similar words or expressions often identify forward-looking statements. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding our outlook, projections, fo recasts or trend descriptions. These statements do not guarantee future performance and speak only as of the date they are made, and we do not undertake to update our forward-looking statements. Caterpillar’s actual results may differ materially from those described or implied in our forward -looking statements based on a number of factors, including, but not limited to: (i) global and regional economic conditions and economic conditions in the industries we serve; (ii) commodity price changes, m aterial price increases, fluctuations in demand for our products or significant shortages of material; (iii) government monetary or fiscal policies; (iv) political and economic risks, commercial instability and events beyond our control in the countries in which we operate; (v) international trade pol icies and their impact on demand for our products and our competitive position, including the imposition of new tariffs or changes in existing tariff rates; (vi) our ability to develop, produce and market quality products that meet our customers’ needs; (vii) the impact of the highly competitive environment in which we op erate on our sales and pricing; (viii) information technology security threats and computer crime; (ix) inventory management decisions and sourcing practices of our dealers and our OEM customers; (x) a failure to realize, or a delay in realizing, all of the anticipated benefits of our acquisitions, joint vent ures or divestitures; (xi) union disputes or other employee relations issues; (xii) adverse effects of unexpected events; (xiii) disruptions or volatility in global finan cial markets limiting our sources of liquidity or the liquidity of our customers, dealers and suppliers; (xiv) failure to maintain our credit ratings and potentia l resulting increases to our cost of borrowing and adverse effects on our cost of funds, liquidity, competitive position and access to capital markets; (xv) our F inancial Products segment’s risks associated with the financial services industry; (xvi) changes in interest rates or market liquidity conditions; (xvii) an in crease in delinquencies, repossessions or net losses of Cat Financial’s customers; (xviii) currency fluctuations; (xix) our or Cat Financial’s compliance with financial and other restrictive covenants in debt agreements; (xx) increased pension plan funding obligations; (xxi) alleged or actual violations of trade or anti -corruption laws and regulations; (xxii) additional tax expense or exposure, including the impact of U.S. tax reform; (xxiii) significant legal proceedings, claims, l awsuits or government investigations; (xxiv) new regulations or changes in financial services regulations; (xxv) compliance with environmental laws and regulations ; (xxvi) catastrophic events, including global pandemics such as the COVID-19 pandemic; and (xxvii) other factors described in more detail in Caterpillar’s Fo rms 10-Q, 10-K and other filings with the Securities and Exchange Commission. A reconciliation of non-GAAP financial information can be found in our press release describing third -quarter 2025 financial results which is available on our website at www.caterpillar.com/earnings. Forward-Looking Statements
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3Q 2025 EARNINGS RELEASE 3 Solid Performance Generated Strong Results SALES AND REVENUES OF $17.6 BILLION ALL-TIME RECORD FOR A SINGLE QUARTER BACKLOG NOW AT $39.8 BILLION ALL-TIME RECORD GENERATED $3.2 BILLION OF ME&T FREE CASH FLOW1 1 ME&T free cash flow represents ME&T operating cash flow less capital expenditures, excluding discretionary pension contributions. A reconciliation of ME&T net cash provided by operating activities to ME&T free cash flow is included in the appendix. Driven by resilient demand across our three primary segments
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3Q 2025 EARNINGS RELEASE OPERATING PROFIT ADJUSTED OPERATING PROFIT1 PROFIT PER SHARE2 ADJUSTED PROFIT PER SHARE2,3 4 1 Adjusted operating profit is a non-GAAP measure, and a reconciliation to the most directly comparable GAAP measure is included in the appendix. 2 Profit per share and adjusted profit per share in the third quarter of 2025 included a reduction of about $0.18 per share due to a higher estimated global annual effective tax rate of 24.0%, compared to the previous rate of 23.0%. 3 Third-quarter 2025 adjusted profit per share excluded restructuring costs of $0.07 per share. Third-quarter 2024 adjusted profit per share excluded restructuring costs of $0.11 per share. A reconciliation to the most comparable GAAP measure is included in the appendix. Key Takeaways Third Quarter 2025 vs. Third Quarter 2024 SALES & REVENUES $3.1B 3% $3.1B $4.88 $4.95 4% 4% 4% $17.6B 10% Record
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3Q 2025 EARNINGS RELEASE 5 End Market Commentary CONSTRUCTION INDUSTRIES ENERGY & TRANSPORTATION RESOURCE INDUSTRIES
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3Q 2025 EARNINGS RELEASE $16.1 $17.6 $5.17 $4.95 $3.1 $3.1 Financial Results Summary 6 Third Quarter 2025 vs. Third Quarter 2024 1 Third-quarter 2025 adjusted profit per share excluded restructuring costs of $0.07 per share. Third-quarter 2024 adjusted profit per share excluded restructuring costs of $0.11 per share. A reconciliation to the most comparable GAAP measure is included in the appendix. 2 Adjusted profit per share in the third quarter of 2025 included a reduction of about $0.18 per share due to a higher estimated global annual effective tax rate of 24.0%, compared to the previous rate of 23.0%. SALES & REVENUES (in billions of dollars) OPERATING PROFIT (in billions of dollars) ADJUSTED PROFIT PER SHARE1,2 (in dollars)
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3Q 2025 EARNINGS RELEASE 16,106 17,6381,554 (191) 132 37 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 Consolidated Sales and Revenues 7 Third Quarter 2025 vs. Third Quarter 2024 Sales & Revenues Increased $1.532B or 10% • Higher sales volume • Higher sales of equipment to end users (millions of dollars) 3rd Qtr 2024 Sales & Revenues Sales Volume Price Realization Currency Financial Products Revenues 3rd Qtr 2025 Sales & Revenues 3 RD QUARTER HIGHLIGHTS
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3Q 2025 EARNINGS RELEASE 3,052 33 1803,147 700 (191) (686) (129) 10 (12) 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 Operating Profit Decreased $95M or 3% • Unfavorable manufacturing costs • Largely reflected impact of higher tariffs1 • Unfavorable price realization • Higher SG&A/R&D expenses • Profit impact of higher sales volume • Favorable other operating income/expense • Lower restructuring costs Operating Profit Margin of 17.3% Adjusted Operating Profit Margin2 of 17.5% Consolidated Operating Profit 8 Third Quarter 2025 vs. Third Quarter 2024 1 The net impact from incremental tariffs was near the top end of our estimated range of $500M to $600M for the third quarter. 2 Adjusted operating profit margin is a non-GAAP measure, and a reconciliation to the most directly comparable GAAP measure is included in the appendix. 3 RD QUARTER HIGHLIGHTS 3rd Qtr 2024 Operating Profit 3rd Qtr 2025 Operating Profit Sales Volume Price Realization Manufacturing Costs SG&A/R&D Currency Financial Products Restructuring Other (millions of dollars)
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3Q 2025 EARNINGS RELEASE Total Sales Increased $415M or 7% • Higher sales volume • Higher sales of equipment to end users • Favorable currency impacts • Unfavorable price realization Segment Profit Decreased $109M or 7% • Unfavorable price realization • Unfavorable manufacturing costs • Largely reflected impact of higher tariffs • Profit impact of higher sales volume $1,486 $1,377 3Q 2024 3Q 2025 $6.3 $6.8 3Q 2024 3Q 2025 23.4% 20.4% 3Q 2024 3Q 2025 9 * Includes inter-segment sales. Construction Industries Third Quarter 2025 vs. Third Quarter 2024 TOTAL SALES* (in billions of dollars) SEGMENT PROFIT (in millions of dollars) SEGMENT PROFIT (as a percent of total sales*) 3 RD QUARTER HIGHLIGHTS
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3Q 2025 EARNINGS RELEASE Total Sales Increased $62M or 2% • Higher sales volume • Higher sales of equipment to end users • Unfavorable price realization Segment Profit Decreased $120M or 19% • Unfavorable manufacturing costs • Largely reflected impact of higher tariffs • Unfavorable price realization • Profit impact of higher sales volume $619 $499 3Q 2024 3Q 2025 $3.0 $3.1 3Q 2024 3Q 2025 20.3% 16.0% 3Q 2024 3Q 2025 10 * Includes inter-segment sales. Resource Industries Third Quarter 2025 vs. Third Quarter 2024 TOTAL SALES* (in billions of dollars) SEGMENT PROFIT (in millions of dollars) SEGMENT PROFIT (as a percent of total sales*) 3 RD QUARTER HIGHLIGHTS
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3Q 2025 EARNINGS RELEASE $1,433 $1,678 3Q 2024 3Q 2025 19.9% 20.0% 3Q 2024 3Q 2025 $7.2 $8.4 3Q 2024 3Q 2025 11 * Includes inter-segment sales. Energy & Transportation Third Quarter 2025 vs. Third Quarter 2024 TOTAL SALES* (in billions of dollars) SEGMENT PROFIT (in millions of dollars) SEGMENT PROFIT (as a percent of total sales*) Total Sales Increased $1.210B or 17% • Higher sales volume • Higher inter-segment sales Segment Profit Increased $245M or 17% • Profit impact of higher sales volume • Favorable price realization • Unfavorable manufacturing costs • Primarily reflected impact of higher tariffs 3 RD QUARTER HIGHLIGHTS
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3Q 2025 EARNINGS RELEASE Total Revenues Increased $42M or 4% • Higher average earning assets • Lower average financing rates Segment Profit Decreased $5M or 2% • Higher provision for credit losses • Higher SG&A expenses • Unfavorable impact from equity securities • Favorable impact from higher average earning assets $246 $241 3Q 2024 3Q 2025 $1,034 $1,076 3Q 2024 3Q 2025 12 * Includes inter-segment revenues. Financial Products Third Quarter 2025 vs. Third Quarter 2024 TOTAL REVENUES* (in millions of dollars) SEGMENT PROFIT (in millions of dollars) 3 RD QUARTER HIGHLIGHTS
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3Q 2025 EARNINGS RELEASE 13 1 ME&T free cash flow represents ME&T operating cash flow less capital expenditures, excluding discretionary pension contributions. A reconciliation of ME&T net cash provided by operating activities to ME&T free cash flow is included in the appendix. ME&T Free Cash Flow1 and Capital Deployment $3.2B $1.1B $7.5B DEPLOYED TO SHAREHOLDERS IN 3Q 2025 Quarterly dividend payment of about $700M Hold $1.2B in slightly longer-dated liquid marketable securities ENTERPRISE CASH BALANCE ME&T FREE CASH FLOW1 3Q 2025 Approximately $500M higher than 3Q 2024
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3Q 2025 EARNINGS RELEASE ● 2025 full-year sales and revenues modestly higher as compared to 2024, a slight improvement versus previous expectations of slightly higher ● 2025 full-year services revenues1 about flat as compared to 2024 ● 2025 net incremental tariffs2 around $1.6B to $1.75B ● Excluding the net impact of incremental tariffs2, 2025 full-year adjusted operating profit margin3 in the top half of the annual target range4 ● Including the net impact of incremental tariffs2, 2025 full-year adjusted operating profit margin3 near the bottom of the annual target range4 ● 2025 full-year ME&T free cash flow5 above the midpoint of the annual target range4 14 Expectations As We Look Ahead – Full Year 2025 1 ME&T Services Revenues include, but are not limited to, aftermarket parts and other service-related revenues and exclude most Financial Products’ revenues, discontinued products and captive dealer services. 2 Incremental tariffs announced in 2025 and expected to be in place by November 1, 2025, including some mitigating actions and cost controls. 3 Adjusted operating profit margin is a non-GAAP measure, and a reconciliation to the most directly comparable GAAP measure is included in the appendix. 4 Target ranges based on 4Q 2023 Caterpillar earnings call. Caterpillar communicated an adjusted operating profit margin target range relative to the corresponding level of sales and revenues and an ME&T free cash flow target range of $5B to $10B annually. 5 ME&T free cash flow represents ME&T operating cash flow less capital expenditures, excluding discretionary pension contributions. A reconciliation of ME&T net cash provided by operating activities to ME&T free cash flow is included in the appendix.
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3Q 2025 EARNINGS RELEASE 15 Expectations As We Look Ahead – 4Q 2025 1 Dealers are independent businesses and control their own inventory. 2 Incremental tariffs announced in 2025 and expected to be in place by November 1, 2025, including some mitigating actions and cost controls. 3 Adjusted operating profit margin is a non-GAAP measure, and a reconciliation to the most directly comparable GAAP measure is included in the appendix. ● Strong 4Q 2025 sales and revenues growth as compared to 4Q 2024 ● 4Q 2025 machine dealer inventory1 to decline slightly as compared to a $1.6B decrease in 4Q 2024 ● 4Q 2025 net incremental tariffs2 of about $650M to $800M ● Excluding the net impact of incremental tariffs2, higher 4Q 2025 adjusted operating profit margin3 as compared to 4Q 2024 ● Including the net impact of incremental tariffs2, lower 4Q 2025 adjusted operating profit margin3 as compared to 4Q 2024
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3Q 2025 EARNINGS RELEASE 2025 Key Takeaways 16 1 Expectation includes the net impact of incremental tariffs announced in 2025 and expected to be in place by November 1, 2025, which includes some mitigating actions and cost controls. 2 Adjusted operating profit margin is a non-GAAP measure, and a reconciliation to the most directly comparable GAAP measure is included in the appendix. 3 Target ranges based on 4Q 2023 Caterpillar earnings call. Caterpillar communicated an adjusted operating profit margin target range relative to the corresponding level of sales and revenues and an ME&T free cash flow target range of $5B to $10B annually. 4 ME&T free cash flow represents ME&T operating cash flow less capital expenditures, excluding discretionary pension contributions. A reconciliation of ME&T net cash provided by operating activities to ME&T free cash flow is included in the appendix. CONTINUE TO EXECUTE OUR STRATEGY FOR LONG - TERM PROFITABLE GROWTH ANTICIPATE MODESTLY HIGHER 2025 FULL-YEAR SALES INCLUDING STRONG 4Q 2025 EXPECT1 2025 FULL-YEAR ADJUSTED OPERATING PROFIT MARGIN2 TO REMAIN NEAR THE BOTTOM OF THE TARGET RANGE3 EXPECT1 2025 FULL-YEAR ME&T FREE CASH FLOW4 TO BE ABOVE THE MIDPOINT OF THE TARGET RANGE3 Remain optimistic about our underlying businesses
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3Q 2025 EARNINGS RELEASE 17 Q&A
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3Q 2025 EARNINGS RELEASE 18 Appendix
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3Q 2025 EARNINGS RELEASE 19 2026 Caterpillar Earnings Call Schedule Earnings Quarter Release Date Call Time 4th Quarter 2025 Thursday, January 29, 2026 8:30 a.m. Eastern 1st Quarter 2026 Thursday, April 30, 2026 8:30 a.m. Eastern 2nd Quarter 2026 Tuesday, August 4, 2026 8:30 a.m. Eastern 3rd Quarter 2026 Thursday, October 29, 2026 8:30 a.m. Eastern
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3Q 2025 EARNINGS RELEASE 20 Dealer Inventory1 Changes 1 Dealers are independent businesses and control their own inventory. 2 Quarterly dealer inventory changes will not equal full-year dealer inventory changes due to the impact of rolling price updates in the dealer inventory reporting, which reflect a trailing 12-month price impact. Previously reported dealer inventory figures are not retroactively updated for price. 3 Amounts may not add due to rounding. Full Year2 Dealer Inventory1 of Machines $1.1 ($0.4) $0.1 ($1.6) ($0.7) $0.0 ($0.4) $0.3 $0.1 Total Dealer Inventory1 $1.4 ($0.2) $0.4 ($1.3) $0.4 $0.1 $0.1 $0.6 $0.2 1Q 2Q 3Q 4Q Increase/(Decrease) (USD in billions) 2024 YoY Impact to 3Q Sales31Q 2Q 3Q 2025
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3Q 2025 EARNINGS RELEASE 21 Order Backlog 3Q 2025 vs. 2Q 2025 2Q 2025 vs. 1Q 2025 3Q 2025 vs. 3Q 2024 Increased $2.4B Increased $2.5B Increased $11.2B
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3Q 2025 EARNINGS RELEASE ● Restructuring costs of approximately $300M to $350M in 2025 ● Capital expenditures around $2.5B in 2025 ● 2025 global annual effective tax rate of 24.0% 22 Additional Expectations As We Look Ahead – Full Year 2025
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3Q 2025 EARNINGS RELEASE 23 Adjusted Operating Profit Margin1 Target Range 0% 5% 10% 15% 20% 25% Adjusted Operating Profit Margin %1 10.0% 14.0% 18.0% 22.0% 14.0% 18.0% $57B $72B$42B Sales & Revenues $64.5B$49.5B 16.0% 20.0% 12.0% 16.0% 1 Adjusted operating profit margin is a non-GAAP measure, and a reconciliation to the most directly comparable GAAP measure is included in the appendix. • Progressive adjusted operating profit margin1 target range • Adjusted operating profit margin1 target range: • 10-14% at $42B of sales and revenues • 18-22% at $72B of sales and revenues
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3Q 2025 EARNINGS RELEASE 24 Non-GAAP Financial Measures Note: Amounts may not add due to rounding. (Dollars in millions except per share data) Operating Profit Operating Profit Margin Profit Before Taxes Provision (Benefit) for Income Taxes Profit Profit per Share Three Months Ended September 30, 2025 - U.S. GAAP 3,052$ 17.3% 3,127$ 836$ 2,300$ 4.88$ Restructuring (income) costs 37 0.2% 37 9 28 0.07 Three Months Ended September 30, 2025 - Adjusted 3,089$ 17.5% 3,164$ 845$ 2,328$ 4.95$ Three Months Ended September 30, 2024 - U.S. GAAP 3,147$ 19.5% 3,098$ 642$ 2,464$ 5.06$ Restructuring (income) costs 70 0.5% 70 16 54 0.11 Three Months Ended September 30, 2024 - Adjusted 3,217$ 20.0% 3,168$ 658$ 2,518$ 5.17$
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3Q 2025 EARNINGS RELEASE 25 Note: Amounts may not add due to rounding. Estimated Annual Tax Rate Reconciliation (Dollars in millions) Profit Before Taxes Provision (Benefit) for Income Taxes Effective Tax Rate Three Months Ended September 30, 2025 - U.S. GAAP 3,127$ 836$ 26.7% Increase in annual effective tax rate - (54) Changes in estimates related to prior years - (41) Excess stock-based compensation - 10 Annual effective tax rate, excluding discrete items 3,127$ 751$ 24.0% Increase in annual effective tax rate - 54 Changes in estimates related to prior years - 41 Excess stock-based compensation - (10) Restructuring (income) costs 37 9 Three Months Ended September 30, 2025 - Adjusted 3,164$ 845$ Three Months Ended September 30, 2024 - U.S. GAAP 3,098$ 642$ 20.7% Changes in estimates related to prior years - 47 Excess stock-based compensation - 7 Annual effective tax rate, excluding discrete items 3,098$ 696$ 22.5% Changes in estimates related to prior years - (47) Excess stock-based compensation - (7) Restructuring (income) costs 70 16 Three Months Ended September 30, 2024 - Adjusted 3,168$ 658$
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3Q 2025 EARNINGS RELEASE 26 Reconciliation to U.S. GAAP Reconciliation of ME&T Cash Flow from Operations to ME&T Free Cash Flow Note: Amounts may not add due to rounding. Note: See reconciliation of ME&T cash flow from operations to consolidated net cash provided by operating activities in the Supplemental Data for Statement of Cash Flow contained in our 10-Q filing. (USD in billions) 3Q 2024 3Q 2025 Sep YTD 2024 Sep YTD 2025 ME&T cash flow from operations 3.2$ 3.9$ 7.7$ 7.7$ ME&T capital expenditures (0.4) (0.7) (1.3) (1.9) ME&T free cash flow 2.7$ 3.2$ 6.4$ 5.8$