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F I N A N C I A L R E V I E W FOURTH QUARTER AND FULL YEAR 2025 J A N U A R Y 2 9 , 2 0 2 6
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Financial Review | Fourth Quarter and Full Year 2025 FORWARD -LOOKING STATEMENTS 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, forecasts 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, material 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 policies 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 operate 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 ventures or divestitures; (xi) union disputes or other employee relations issues; (xii) adverse effects of unexpected events; (xiii) disruptions or volatility in global financial markets limiting our sources of liquidity or the liquidity of our customers, dealers and suppliers; (xiv) failure to maintain our credit ratings and potential 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 Financial Products segment’s risks associated with the financial services industry; (xvi) changes in interest rates or market liquidity conditions; (xvii) an increase 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, lawsuits 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 Forms 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 fourth-quarter 2025 financial results which is available on our website at www.caterpillar.com/earnings. 2
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Financial Review | Fourth Quarter and Full Year 2025 FINANCIAL RESULTS Fourth Quarter 2025 and Full Year 2025 1 Adjusted operating profit and adjusted operating profit margin are non-GAAP measures and a reconciliation to the most directly comparable GAAP measures is included in the appendix. 2 Fourth–quarter 2025 adjusted profit per share excluded restructuring costs of $0.52 per share and mark-to-market gains on remeasurement of pension and other postemployment benefit (OPEB) plans of $0.48 per share. Fourth-quarter 2024 adjusted profit per share excluded a discrete tax benefit for a tax law change related to currency translation of $0.46 per share, mark-to-market gains for remeasurement of pension and OPEB plans of $0.23 per share and restructuring costs of $0.05 per share. Full-year 2025 adjusted profit per share excluded restructuring costs of $0.73 per share and mark-to-market gains on remeasurement of pension and OPEB plans of $0.48 per share. Full-year 2024 adjusted profit per share excluded restructuring costs of $0.54 per share, a discrete tax benefit for a tax law change related to currency translation of $0.46 per share and mark-to-market gains for remeasurement of pension and OPEB plans of $0.23 per share. 3 Machinery, Power & Energy (MP&E) free cash flow represents MP&E operating cash flow less capital expenditures, excluding discretionary pension contributions. A reconciliation of MP&E net cash provided by operating activities to MP&E free cash flow is included in the appendix. 3 4Q AND FULL YEAR 2025 SALES & REVENUES ALL-TIME RECORDS 4Q 2025 ADJUSTED OPERATING PROFIT MARGIN1 AND ADJUSTED PROFIT PER SHARE2 BETTER THAN ANTICIPATED FULL YEAR 2025 ROBUST MP&E FREE CASH FLOW3 DEPLOYED $7.9B TO SHAREHOLDERS RECORD BACKLOG LEVEL $51B, UP 71% YEAR OVER YEAR 4Q 2025 FULL YEAR 2025 Sales & Revenues $19.1B $67.6B Operating Profit $2.7B $11.2B Adjusted Operating Profit1 $3.0B $11.6B Profit Per Share $5.12 $18.81 Adjusted Profit Per Share2 $5.16 $19.06 MP&E Operating Cash Flow $4.5B $12.3B MP&E Free Cash Flow3 $3.7B $9.5B
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Financial Review | Fourth Quarter and Full Year 2025 INVESTOR DAY TARGETS 1 1 Targets based on Caterpillar’s 2025 Investor Day. Targets are 2030 absolute numbers, or where an increase, vs. the year-end 2024 baseline. 2 CAGR target assumes stable economic conditions. 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 MP&E 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. 5 MP&E free cash flow represents MP&E operating cash flow less capital expenditures, excluding discretionary pension contributions. A reconciliation of MP&E net cash provided by operating activities to MP&E free cash flow is included in the appendix. 4 ENTERPRISE 2025 ACTUALS 2030 TARGETS1 Sales & Revenues 4% 5-7% CAGR2 Through 2030 Adjusted Operating Profit Margin3 17.2% Within the Target Range 15-19% to 21-25% at $60B at $100B Services Revenues4 $24B $30B MP&E Free Cash Flow5 $9.5B $6B to $15B Shareholder Return 84% Substantially all MP&E FCF5 over time Dividend Increases 7% High single-digit percent
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Financial Review | Fourth Quarter and Full Year 2025 SEGMENT HIGHLIGHTS Investor Day Targets for Strategic Initiatives 5 2024 2025 2030 TARGET 1.0x 1.2x 3.0x 2024 2025 2030 TARGET 1.0x 1.05x 1.25x 2024 2025 2030 TARGET 1.0x 1.3x >2.0x 1 Reported in price neutral dollars and based on unit sales as reported primarily by dealers, compared to 2024. AUTONOMOUS HAUL TRUCKS IN OPERATION vs. 2024 POWER GENERATION SALES vs. 2024 SALES TO USERS1 vs. 2024 CONSTRUCTION INDUSTRIES RESOURCE INDUSTRIES POWER & ENERGY
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Financial Review | Fourth Quarter and Full Year 2025 FULL YEAR 2026 OUTLOOK 6 1 Target ranges were given at Caterpillar’s 2025 Investor Day. Caterpillar communicated an adjusted operating profit margin target range relative to the corresponding level of sales and revenues, sales & revenues CAGR target of 5-7% and an MP&E free cash flow target range of $6B to $15B annually. CAGR target assumes stable economic conditions. 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 MP&E free cash flow represents MP&E operating cash flow less capital expenditures, excluding discretionary pension contributions. A reconciliation of MP&E net cash provided by operating activities to MP&E free cash flow is included in the appendix. SALES & REVENUES AROUND TOP END OF CAGR TARGET1 ADJUSTED OPERATING PROFIT MARGIN2 NEAR BOTTOM OF TARGET RANGE1 MP&E FREE CASH FLOW3 SLIGHTLY LOWER THAN 2025
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Financial Review | Fourth Quarter and Full Year 2025 7 STRATEGY UPDATE
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Financial Review | Fourth Quarter and Full Year 2025 FINANCIAL RESULTS SUMMARY Fourth Quarter 2025 vs. Fourth Quarter 2024 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 MP&E free cash flow represents MP&E operating cash flow less capital expenditures, excluding discretionary pension contributions. A reconciliation of MP&E net cash provided by operating activities to MP&E free cash flow is included in the appendix. 8 MP&E FREE CASH FLOW2 USD in billions 4Q 2024 4Q 2025 $3.0 $3.7 SALES & REVENUES USD in billions ADJUSTED OPERATING PROFIT1 USD in billions 4Q 2024 4Q 2025 $3.0 $3.0 4Q 2024 4Q 2025 $16.2 $19.1
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Financial Review | Fourth Quarter and Full Year 2025 4Q 2024 4Q 2025 16,215 2,708 38 124 48 19,133 0 5,000 10,000 15,000 20,000 CONSOLIDATED SALES & REVENUES Fourth Quarter 2025 vs. Fourth Quarter 2024 9 4Q 2024 Sales & Revenues Sales Volume Price Realization Currency Financial Products Revenues 4Q 2025 Sales & Revenues SALES & REVENUES INCREASED $2.918B OR 18% • Higher sales volume • Higher sales of equipment to end users • Favorable impact from changes in dealer inventories USD in millions
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Financial Review | Fourth Quarter and Full Year 2025 CONSOLIDATED OPERATING PROFIT Fourth Quarter 2025 vs. Fourth Quarter 2024 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. 10 4Q 2024 4Q 2025 2,924 1,072 38 (1,030) (169) 14 110 (282) (17) 2,660 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 4Q 2024 Operating Profit 4Q 2025 Operating Profit Sales Volume Price Realization Manufacturing Costs SG&A/R&D Currency Financial Products Restructuring Other USD in millions OPERATING PROFIT DECREASED $264M OR 9% • Unfavorable manufacturing costs • Largely reflected impact of higher tariffs • Higher restructuring costs • Favorable impact of higher sales volume Operating Profit Margin 13.9% Adjusted Operating Profit Margin1 15.6%
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Financial Review | Fourth Quarter and Full Year 2025 PROFIT PER SHARE Fourth Quarter 2025 vs. Fourth Quarter 2024 1 Fourth–quarter 2025 adjusted profit per share excluded restructuring costs of $0.52 per share and mark-to-market gains on remeasurement of pension and OPEB plans of $0.48 per share. Fourth-quarter 2024 adjusted profit per share excluded a discrete tax benefit for a tax law change related to currency translation of $0.46 per share, mark-to-market gains for remeasurement of pension and OPEB plans of $0.23 per share and restructuring costs of $0.05 per share. 11 ADJUSTED PROFIT PER SHARE1 USD 4Q 2024 4Q 2025 $5.14 $5.16 PROFIT PER SHARE USD 4Q 2024 4Q 2025 $5.78 $5.12
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Financial Review | Fourth Quarter and Full Year 2025 12 TOTAL SALES* USD in billions SEGMENT PROFIT USD in millions SEGMENT PROFIT as a percent of total sales* 4Q 2024 4Q 2025 $6.0 $6.9 4Q 2024 4Q 2025 $1,174 $1,030 4Q 2024 4Q 2025 19.6% 14.9% CONSTRUCTION INDUSTRIES Fourth Quarter 2025 vs. Fourth Quarter 2024 TOTAL SALES INCREASED $923M OR 15% • Higher sales volume • Higher sales of equipment to end users • Favorable impact from changes in dealer inventories • Dealer inventory decreased less during 4Q 2025 than during 4Q 2024 SEGMENT PROFIT DECREASED $144M OR 12% • Unfavorable manufacturing costs • Largely reflected impact of higher tariffs • Unfavorable price realization • Favorable impact of higher sales volume *Includes inter-segment sales.
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Financial Review | Fourth Quarter and Full Year 2025 SEGMENT PROFIT USD in millions RESOURCE INDUSTRIES Fourth Quarter 2025 vs. Fourth Quarter 2024 13 4Q 2024 4Q 2025 $3.0 $3.4 4Q 2024 4Q 2025 $471 $360 4Q 2024 4Q 2025 15.8% 10.7% TOTAL SALES* USD in billions SEGMENT PROFIT as a percent of total sales* TOTAL SALES INCREASED $373M OR 13% • Higher sales volume • Favorable impact from changes in dealer inventories • Dealer inventory increased during 4Q 2025, compared with a decrease in 4Q 2024 • Unfavorable price realization SEGMENT PROFIT DECREASED $111M OR 24% • Unfavorable manufacturing costs • Largely reflected impact of higher tariffs • Unfavorable price realization • Favorable impact of higher sales volume *Includes inter-segment sales.
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Financial Review | Fourth Quarter and Full Year 2025 SEGMENT PROFIT USD in millions POWER & ENERGY Fourth Quarter 2025 vs. Fourth Quarter 2024 14 4Q 2024 4Q 2025 $7.6 $9.4 4Q 2024 4Q 2025 $1,477 $1,841 4Q 2024 4Q 2025 19.3% 19.6% TOTAL SALES* USD in billions SEGMENT PROFIT as a percent of total sales* TOTAL SALES INCREASED $1.751B OR 23% • Higher sales volume • Favorable price realization SEGMENT PROFIT INCREASED $364M OR 25% • Favorable impact of higher sales volume • Favorable price realization • Unfavorable manufacturing costs • Primarily reflected impact of higher tariffs *Includes inter-segment sales.
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Financial Review | Fourth Quarter and Full Year 2025 FINANCIAL PRODUCTS Fourth Quarter 2025 vs. Fourth Quarter 2024 *Includes inter-segment revenues. 15 TOTAL REVENUES* USD in millions SEGMENT PROFIT USD in millions 4Q 2024 4Q 2025 $1,024 $1,095 4Q 2024 4Q 2025 $166 $262 TOTAL REVENUES INCREASED $71M OR 7% • Higher average earning assets • Lower average financing rates SEGMENT PROFIT INCREASED $96M OR 58% • Higher margins at Insurance Services • Favorable impact from higher average earning assets • Lower provision for credit losses
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Financial Review | Fourth Quarter and Full Year 2025 MP&E FREE CASH FLOW 1 AND CAPITAL DEPLOYMENT 1 MP&E free cash flow represents MP&E operating cash flow less capital expenditures, excluding discretionary pension contributions. A reconciliation of MP&E net cash provided by operating activities to MP&E free cash flow is included in the appendix. 16 $9.5B MP&E FREE CASH FLOW1 FULL YEAR 2025 Slightly higher than 2024 despite an $800M increase in CapEx. $7.9B DEPLOYED TO SHAREHOLDERS IN 2025 Continue to expect to return substantially all MP&E Free Cash Flow1 to shareholders over time. $10.0B ENTERPRISE CASH BALANCE Held additional $1.2B in slightly longer-dated liquid marketable securities.
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Financial Review | Fourth Quarter and Full Year 2025 EXPECTATIONS AS WE LOOK AHEAD • 2026 full-year sales and revenues growth as compared to 2025, around the top end of our 5 to 7 percent CAGR target1 • 2026 full-year services revenues2 to grow as compared to 2025 • 2026 incremental tariff3 cost of around $2.6B • Excluding the impact of incremental tariff3 costs, 2026 full-year adjusted operating profit margin4 in the top half of the annual target range1 • Including the impact of incremental tariff3 costs, 2026 full-year adjusted operating profit margin4 near the bottom of the annual target range1 • 2026 full-year MP&E free cash flow5 slightly lower as compared to 2025 Full Year 2026 17 1 Target ranges were given at Caterpillar’s 2025 Investor Day. Caterpillar communicated an adjusted operating profit margin target range relative to the corresponding level of sales and revenues, sales & revenues CAGR target of 5-7% and an MP&E free cash flow target range of $6B to $15B annually. CAGR target assumes stable economic conditions. 2 MP&E 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. 3 Incremental tariffs announced in 2025 and expected to be in place by January 29, 2026. 4 Adjusted operating profit margin is a non-GAAP measure and a reconciliation to the most directly comparable GAAP measure is included in the appendix. 5 MP&E free cash flow represents MP&E operating cash flow less capital expenditures, excluding discretionary pension contributions. A reconciliation of MP&E net cash provided by operating activities to MP&E free cash flow is included in the appendix.
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Financial Review | Fourth Quarter and Full Year 2025 EXPECTATIONS AS WE LOOK AHEAD • 1Q 2026 sales and revenues stronger as compared to 1Q 2025 • 1Q 2026 machine dealer inventory1 increase aligned with the 1Q seasonable pattern, as compared to flattish levels in 1Q 2025 • 1Q 2026 incremental tariff2 costs at a level similar to 4Q 2025, or around $800M • Excluding the impact of incremental tariff2 costs, higher 1Q 2026 adjusted operating profit margin3 as compared to 1Q 2025 • Including the impact of incremental tariff2 costs, lower 1Q 2026 adjusted operating profit margin3 as compared to 1Q 2025 First Quarter 2026 18 1 Dealers are independent businesses and control their own inventory. 2 Incremental tariffs announced in 2025 and expected to be in place by January 29, 2026. 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.
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Financial Review | Fourth Quarter and Full Year 2025 FULL YEAR 2025 KEY TAKEAWAYS Continue to Execute Our Strategy for Long-Term Profitable Growth 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. 2 Target range 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. 3 MP&E free cash flow represents MP&E operating cash flow less capital expenditures, excluding discretionary pension contributions. A reconciliation of MP&E net cash provided by operating activities to MP&E free cash flow is included in the appendix. 19 DELIVERED RECORD SALES & REVENUES MAINTAINED ADJUSTED OPERATING PROFIT MARGIN1 WITHIN TARGET RANGE2 THIRD CONSECUTIVE YEAR GENERATING OVER $9B MP&E FREE CASH FLOW3
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Q & A
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A P P E N D I X
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Financial Review | Fourth Quarter and Full Year 2025 KEY TAKEAWAYS Fourth Quarter 2025 vs. Fourth Quarter 2024 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 Fourth–quarter 2025 adjusted profit per share excluded restructuring costs of $0.52 per share and mark-to-market gains on remeasurement of pension and OPEB plans of $0.48 per share. Fourth-quarter 2024 adjusted profit per share excluded a discrete tax benefit for a tax law change related to currency translation of $0.46 per share, mark-to-market gains for remeasurement of pension and OPEB plans of $0.23 per share and restructuring costs of $0.05 per share. 22 SALES & REVENUES $19.1B PROFIT PER SHARE $5.12 ADJUSTED OPERATING PROFIT1 $3.0B OPERATING PROFIT $2.7B ADJUSTED PROFIT PER SHARE2 $5.16 +1% ABOUT FLAT (11%)(9%)+18%
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Financial Review | Fourth Quarter and Full Year 2025 KEY TAKEAWAYS Full Year 2025 vs. Full Year 2024 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 Full-year 2025 adjusted profit per share excluded restructuring costs of $0.73 per share and mark-to-market gains on remeasurement of pension and OPEB plans of $0.48 per share. Full-year 2024 adjusted profit per share excluded restructuring costs of $0.54 per share, a discrete tax benefit for a tax law change related to currency translation of $0.46 per share and mark-to-market gains for remeasurement of pension and OPEB plans of $0.23 per share. 23 SALES & REVENUES $67.6B PROFIT PER SHARE $18.81 ADJUSTED OPERATING PROFIT1 $11.6B OPERATING PROFIT $11.2B ADJUSTED PROFIT PER SHARE2 $19.06 (14%) (13%) (15%)(15%)+4%
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Financial Review | Fourth Quarter and Full Year 2025 RETAIL STATISTICS Fourth Quarter 2025 vs. Fourth Quarter 2024 Note: Machines retail sales reported in price neutral dollars and based on unit sales as reported primarily by dealers, compared to 2024. Power & Energy retail sales reported in dollars based on reporting from dealers and direct sales, compared to 2024. 24 TOTAL +11% North America +18% Latin America +6% Europe, Africa, Middle East (1%) Asia Pacific (2%) RESOURCE INDUSTRIES TOTAL (7%) North America +2% Latin America +34% Europe, Africa, Middle East (21%) Asia Pacific (23%) POWER & ENERGY TOTAL +37% Power Generation +44% Oil & Gas +36% Industrial +12% Transportation +22% CONSTRUCTION INDUSTRIES
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Financial Review | Fourth Quarter and Full Year 2025 INVESTOR DAY TARGETS 1 1 Targets based on Caterpillar’s 2025 Investor Day. Targets are 2030 absolute numbers, or where an increase, vs. the year-end 2024 baseline. 2 PSEs represents closed won condition monitored prioritized service events. 25 SEGMENTS 2025 ACTUALS 2030 TARGETS1 Construction Industries Sales to Users 1.05x 1.25x Autonomous Trucks 1.2x 3x Power Generation Sales 1.3x >2.0x Connected & Reporting Assets >1.6M 2M Condition Monitoring PSEs2 1.5x 2x eCommerce Sales Per Business Day +4% +50% Tech-Enabled Machines 191K 500K
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Financial Review | Fourth Quarter and Full Year 2025 CATERPILLAR EARNINGS RELEASE CALL SCHEDULE 26 1Q 2026 APRIL 30, 2026 Thursday, 8:30 a.m. Eastern 2Q 2026 AUGUST 4, 2026 Tuesday, 8:30 a.m. Eastern 3Q 2026 OCTOBER 29, 2026 Thursday, 8:30 a.m. Eastern
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Financial Review | Fourth Quarter and Full Year 2025 DEALER INVENTORY 1 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. 27 Increase vs. (Decrease) 2024 2025 YoY YoY USD in billions 1Q 2Q 3Q 4Q Full Year2 1Q 2Q 3Q 4Q Full Year2 Impact to 4Q Sales3 Impact to FY Sales3 Dealer Inventory1 of Machines $1.1 ($0.4) $0.1 ($1.6) ($0.7) $0.0 ($0.4) $0.3 ($0.5) ($0.5) $1.1 $0.2 Total Dealer Inventory1 $1.4 ($0.2) $0.4 ($1.3) $0.4 $0.1 $0.1 $0.6 ($0.0) $0.9 $1.3 $0.5
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Financial Review | Fourth Quarter and Full Year 2025 ORDER BACKLOG 28 INCREASED $21.2B 4Q 2025 vs. 4Q 2024 INCREASED $11.3B 4Q 2025 vs. 3Q 2025 ORDER BACKLOG $51.2B 4Q 2025 RECORD LEVEL
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Financial Review | Fourth Quarter and Full Year 2025 ADDITIONAL EXPECTATIONS AS WE LOOK AHEAD • Restructuring costs of roughly $300M to $350M in 2026 • Capital expenditures around $3.5B in 2026 • 2026 global annual effective tax rate of 23.0%, excluding discrete items Full Year 2026 29
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Financial Review | Fourth Quarter and Full Year 2025 ADJUSTED OPERATING PROFIT MARGIN 1 TARGET RANGE 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. 30 15% 18% 21% 19% 22% 25% $60B $70B $80B $90B $100B Adjusted Operating Profit Margin1 Annual Sales & Revenues $72B • Progressive adjusted operating profit margin1 target range • Adjusted operating profit margin1 target range: • 15-19% at $60B of sales and revenues • 18-22% at $72B of sales and revenues • 21-25% at $100B of sales and revenues
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Financial Review | Fourth Quarter and Full Year 2025 CONSOLIDATED SALES & REVENUES Full Year 2025 vs. Full Year 2024 31 FY 2024 FY 2025 64,809 3,389 (817) 45 163 67,589 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 FY 2024 Sales Volume Price Realization Currency Financial Products Revenues FY 2025Full Year 2024 Sales & Revenues Full Year 2025 Sales & Revenues USD in millions
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Financial Review | Fourth Quarter and Full Year 2025 FY 2024 FY 2025 13,072 1,218 (817) (2,148) (336) (32) 49 (85) 230 11,151 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 FY 2024 Sales Volume Price Realization Manufacturing Costs SG&A/R&D Currency Financial Products Restructuring Other FY 2025 CONSOLIDATED OPERATING PROFIT Full Year 2025 vs. Full Year 2024 32 USD in millions Full Year 2024 Operating Profit Full Year 2025 Operating Profit
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Financial Review | Fourth Quarter and Full Year 2025 NON -GAAP FINANCIAL MEASURES Note: Amounts may not add due to rounding. 33 (Dollars in millions except per share data) Operating Profit Operating Profit Margin Profit Before Taxes Provision (Benefit) for Income Taxes Profit Profit per Share Three Months Ended December 31, 2025 - U.S. GAAP 2,660$ 13.9% 3,026$ 712$ 2,402$ 5.12$ Other restructuring (income) costs 319 1.7% 319 73 246 0.52 Pension/OPEB mark-to-market (gains) losses - - % (294) (68) (226) (0.48) Three Months Ended December 31, 2025 - Adjusted 2,979$ 15.6% 3,051$ 717$ 2,422$ 5.16$ Three Months Ended December 31, 2024 - U.S. GAAP 2,924$ 18.0% 3,243$ 463$ 2,791$ 5.78$ Other restructuring (income) costs 37 0.3% 37 10 27 0.05 Pension/OPEB mark-to-market (gains) losses - - % (154) (43) (111) (0.23) Tax law change related to currency translation - - % - 224 (224) (0.46) Three Months Ended December 31, 2024 - Adjusted 2,961$ 18.3% 3,126$ 654$ 2,483$ 5.14$ Twelve Months Ended December 31, 2025 - U.S. GAAP 11,151$ 16.5% 11,541$ 2,768$ 8,884$ 18.81$ Other restructuring (income) costs 444 0.7% 445 102 346 0.73 Pension/OPEB mark-to-market (gains) losses - - % (294) (68) (226) (0.48) Twelve Months Ended December 31, 2025 - Adjusted 11,595$ 17.2% 11,692$ 2,802$ 9,004$ 19.06$ Twelve Months Ended December 31, 2024 - U.S. GAAP 13,072$ 20.2% 13,373$ 2,629$ 10,792$ 22.05$ Restructuring (income) costs - divestitures of certain non-U.S. entities 164 0.2% 164 54 110 0.22 Other restructuring (income) costs 195 0.3% 195 46 149 0.32 Pension/OPEB mark-to-market (gains) losses - - % (154) (43) (111) (0.23) Tax law change related to currency translation - - % - 224 (224) (0.46) Twelve Months Ended December 31, 2024 - Adjusted 13,431$ 20.7% 13,578$ 2,910$ 10,716$ 21.90$
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Financial Review | Fourth Quarter and Full Year 2025 ANNUAL TAX RATE RECONCILIATION Note: Amounts may not add due to rounding. 34 (Dollars in millions) Profit Before Taxes Provision (Benefit) for Income Taxes Effective Tax Rate Three Months Ended December 31, 2025 - U.S. GAAP 3,026$ 712$ 23.5% Pension/OPEB mark-to-market (gains) losses (294) (68) Change in annual effective tax rate - (8) Excess stock-based compensation - 22 Annual effective tax rate, excluding discrete items 2,732$ 658$ 24.1% Other restructuring (income) costs 319 73 Change in annual effective tax rate - 8 Excess stock-based compensation - (22) Three Months Ended December 31, 2025 - Adjusted 3,051$ 717$ Three Months Ended December 31, 2024 - U.S. GAAP 3,243$ 463$ 14.3% Pension/OPEB mark-to-market (gains) losses (154) (43) Tax law change related to currency translation - 224 Change in annual effective tax rate - 33 Excess stock-based compensation - 8 Annual effective tax rate, excluding discrete items 3,089$ 685$ 22.2% Change in annual effective tax rate - (33) Excess stock-based compensation - (8) Other restructuring (income) costs 37 10 Three Months Ended December 31, 2024 - Adjusted 3,126$ 654$
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Financial Review | Fourth Quarter and Full Year 2025 ANNUAL TAX RATE RECONCILIATION Note: Amounts may not add due to rounding. 35 (Dollars in millions) Profit Before Taxes Provision (Benefit) for Income Taxes Effective Tax Rate Twelve Months Ended December 31, 2025 - U.S. GAAP 11,541$ 2,768$ 24.0% Pension/OPEB mark-to-market (gains) losses (294) (68) Changes in estimates related to prior years - (41) Excess stock-based compensation - 50 Annual effective tax rate, excluding discrete items 11,247$ 2,709$ 24.1% Other restructuring (income) costs 445 102 Changes in estimates related to prior years - 41 Excess stock-based compensation - (50) Twelve Months Ended December 31, 2025 - Adjusted 11,692$ 2,802$ Twelve Months Ended December 31, 2024 - U.S. GAAP 13,373$ 2,629$ 19.7% Restructuring (income) costs - divestitures of certain non-U.S. entities 164 54 Pension/OPEB mark-to-market (gains) losses (154) (43) Tax law change related to currency translation - 224 Changes in estimates related to prior years - 47 Excess stock-based compensation - 57 Annual effective tax rate, excluding discrete items 13,383$ 2,968$ 22.2% Changes in estimates related to prior years - (47) Excess stock-based compensation - (57) Other restructuring (income) costs 195 46 Twelve Months Ended December 31, 2024 - Adjusted 13,578$ 2,910$
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Financial Review | Fourth Quarter and Full Year 2025 RECONCILIATION TO U.S. GAAP Reconciliation of MP&E Cash Flow From Operations to MP&E Free Cash Flow Note: Amounts may not add due to rounding. See reconciliation of MP&E 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-K filing. 36 Full Year Full Year (USD in billions) 4Q 2024 4Q 2025 2024 2025 MP&E cash flow from operations 3.7$ 4.5$ 11.4$ 12.3$ MP&E capital expenditures (0.7) (0.9) (2.0) (2.8) MP&E free cash flow 3.0$ 3.7$ 9.4$ 9.5$