Slides
Page 1
F I N A N C I A L R E V I E W October 29, 2026 THIRD QUARTER 2026
Page 2
2Financial Review | Third Quarter 2026 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 third-quarter 2026 financial results which is available on our website at www.caterpillar.com/earnings.
Page 3
3Financial Review | Third Quarter 2026 3Q 2026 Sales & Revenues $20.7B +17% Operating Profit1 $4.2B +38% Adjusted Operating Profit1,2 $4.3B +38% Profit Per Share3 $7.13 +46% Adjusted Profit Per Share3,4 $7.20 +45% MP&E Operating Cash Flow $4.5B +16% MP&E Free Cash Flow5 $3.8B +19% FINANCIAL RESULTS THIRD QUARTER 2026 VS. THIRD QUARTER 2025 1 IEEPA tariff recoveries in the third quarter of 2026 were $128 million. Excluding IEEPA tariff recoveries, tariff costs were about $600 million in the third quarter of 2026, which was in-line with expectations. 2 Adjusted operating profit is a non-GAAP measure and a reconciliation to the most directly comparable GAAP measure is included inthe appendix. 3 Third–quarter 2026 profit per share and adjusted profit per share included an IEEPA tariff recoveries impact of about $0.21 per share. 4 Third–quarter 2026 adjusted profit per share excluded restructuring costs of $0.07 per share. Third-quarter 2025 adjusted profit per share excluded restructuring costs of $0.07 per share. 5 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. $20.7B SALES & REVENUES Up 17% year over year $7.20 ADJUSTED PROFIT PER SHARE3,4 Up 45% year over year $78B ORDER BACKLOG Up 96% year over year
Page 4
4Financial Review | Third Quarter 2026 SEGMENT HIGHLIGHTS G3600 CONSTRUCTION INDUSTRIES G3600 POWER & ENERGY RESOURCE INDUSTRIES CAT® MINESTAR COMMAND
Page 5
5Financial Review | Third Quarter 2026 FULL YEAR 2026 OUTLOOK 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 was 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 and an MP&E free cash flow target range of $6B to $15B annually. 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 ADJUSTED OPERATING PROFIT MARGIN1 MP&E FREE CASH FLOW3 Mid-to-high teens growth Near the bottom of the target range2, excluding IEEPA tariff recoveries Top half of the annual target range2 MAINTAINING CONSOLIDATED FULL YEAR OUTLOOK
Page 6
6Financial Review | Third Quarter 2026 FINANCIAL RESULTS SUMMARY THIRD QUARTER 2026 VS. THIRD QUARTER 2025 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 IEEPA tariff recoveries in the third quarter of 2026 were $128 million. Excluding IEEPA tariff recoveries, tariff costs were about $600 million in the third quarter of 2026, which was in-line with expectations. ADJUSTED OPERATING PROFIT1,2 USD in billions 3Q 2025 3Q 2026 $3.1 $4.3 SALES & REVENUES USD in billions 3Q 2025 3Q 2026 $17.6 $20.7
Page 7
7Financial Review | Third Quarter 2026 CONSOLIDATED SALES & REVENUES THIRD QUARTER 2026 VS. THIRD QUARTER 2025 3Q 2025 3Q 2026 $17,638 $2,207 $663 $58 $116 $20,682 0 5,000 10,000 15,000 20,000 3Q 2025 Sales & Revenues Sales Volume Price Realization Currency Financial Products Revenues 3Q 2026 Sales & Revenues USD in millions SALES & REVENUES INCREASED $3.044B OR 17% • Higher sales volume • Higher sales of equipment to end users • Favorable price realization
Page 8
8Financial Review | Third Quarter 2026 3Q 2025 3Q 2026 $3,052 $989 $663 ($415) $9 $26 $61 ($4) ($167) $4,214 0 1,000 2,000 3,000 4,000 5,000 6,000 1 3Q 2025 Operating Profit 3Q 2026 Operating Profit Sales Volume Price Realization Manufacturing Costs SG&A / R&D Currency Financial Products Restructuring Other CONSOLIDATED OPERATING PROFIT 1 THIRD QUARTER 2026 VS. THIRD QUARTER 2025 1 IEEPA tariff recoveries in the third quarter of 2026 were $128 million. Excluding IEEPA tariff recoveries, tariff costs were about $600 million in the third quarter of 2026, which was in line with expectations. 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. USD in millions OPERATING PROFIT1 INCREASED $1.162B OR 38% • Favorable impact of higher sales volume Operating Profit Margin 20.4% Adjusted Operating Profit Margin2 20.6%
Page 9
9Financial Review | Third Quarter 2026 PROFIT PER SHARE THIRD QUARTER 2026 VS. THIRD QUARTER 2025 1Third–quarter 2026 profit per share and adjusted profit per share included an IEEPA tariff recoveries impact of about $0.21 per share. 2Third–quarter 2026 adjusted profit per share excluded restructuring costs of $0.07 per share. Third-quarter 2025 adjusted profit per share excluded restructuring costs of $0.07 per share. ADJUSTED PROFIT PER SHARE1,2 USD 3Q 2025 3Q 2026 $4.95 $7.20 PROFIT PER SHARE1 USD 3Q 2025 3Q 2026 $4.88 $7.13
Page 10
10Financial Review | Third Quarter 2026 POWER & ENERGY THIRD QUARTER 2026 VS. THIRD QUARTER 2025 1 Includes inter-segment sales. 3Q 2025 3Q 2026 $7.5 $8.8 3Q 2025 3Q 2026 $1,633 $2,143 3Q 2025 3Q 2026 21.9% 24.4% TOTAL SALES1 USD in billions SEGMENT PROFIT as a percent of total sales1 SEGMENT PROFIT USD in millions TOTAL SALES INCREASED $1.321B OR 18% • Higher sales volume • Favorable price realization SEGMENT PROFIT INCREASED $510M OR 31% • Favorable impact of higher sales volume
Page 11
11Financial Review | Third Quarter 2026 CONSTRUCTION INDUSTRIES THIRD QUARTER 2026 VS. THIRD QUARTER 2025 TOTAL SALES1 USD in billions 3Q 2025 3Q 2026 $6.8 $8.0 3Q 2025 3Q 2026 $1,377 $1,831 3Q 2025 3Q 2026 20.4% 22.9% SEGMENT PROFIT USD in millions SEGMENT PROFIT as a percent of total sales1 1 Includes inter-segment sales. TOTAL SALES INCREASED $1.223B OR 18% • Higher sales volume • Higher sales of equipment to end users • Favorable price realization SEGMENT PROFIT INCREASED $454M OR 33% • Favorable impact of higher sales volume • Favorable price realization • Unfavorable manufacturing costs
Page 12
12Financial Review | Third Quarter 2026 RESOURCE INDUSTRIES THIRD QUARTER 2026 VS. THIRD QUARTER 2025 3Q 2025 3Q 2026 $4.0 $4.6 3Q 2025 3Q 2026 $544 $622 3Q 2025 3Q 2026 13.6% 13.5% TOTAL SALES1 USD in billions SEGMENT PROFIT USD in millions SEGMENT PROFIT as a percent of total sales1 1 Includes inter-segment sales. TOTAL SALES INCREASED $616M OR 15% • Higher sales volume • Favorable price realization SEGMENT PROFIT INCREASED $78M OR 14% • Favorable impact of higher sales volume • Favorable price realization • Unfavorable manufacturing costs
Page 13
13Financial Review | Third Quarter 2026 FINANCIAL PRODUCTS THIRD QUARTER 2026 VS. THIRD QUARTER 2025 TOTAL REVENUES1 USD in millions 3Q 2025 3Q 2026 $1,076 $1,177 3Q 2025 3Q 2026 $241 $264 SEGMENT PROFIT USD in millions 1 Includes inter-segment revenues. TOTAL REVENUES INCREASED $101M OR 9% • Higher average earning assets • Lower average financing rates SEGMENT PROFIT INCREASED $23M OR 10% • Favorable impact from higher average earning assets • Unfavorable impact from higher provision for credit losses at Cat Financial
Page 14
14Financial Review | Third Quarter 2026 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. $3.8B MP&E FREE CASH FLOW1 3Q 2026 $600M increase versus 3Q 2025, mainly driven by stronger profit $2.0B DEPLOYED TO SHAREHOLDERS IN 3Q 2026 Share repurchases accounted for $1.2B, with nearly $750M reflecting our quarterly dividend payment $7.9B ENTERPRISE CASH BALANCE Held additional $1.6B in slightly longer-dated liquid marketable securities
Page 15
15Financial Review | Third Quarter 2026 EXPECTATIONS AS WE LOOK AHEAD CONSOLIDATED - FOURTH QUARTER 2026 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 Tariffs implemented since the beginning of 2025. Moderate sales growth as compared to 4Q 2025 Higher as compared to 4Q 2025 About $600M and roughly $200M lower than 4Q 2025 Sales & Revenues Adjusted Operating Profit Margin1 Tariff2 Costs
Page 16
16Financial Review | Third Quarter 2026 EXPECTATIONS AS WE LOOK AHEAD CONSOLIDATED - FULL YEAR 2026 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 Tariffs implemented since the beginning of 2025. 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. 4 Target range was 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 and an MP&E free cash flow target range of $6B to $15B annually. Mid-to-high teens growth as compared to 2025 Higher than 2025 and near the bottom of the annual target range4, excluding IEEPA tariff recoveries Around $2.2B, excluding IEEPA tariff recoveries Top half of the annual target range4 MP&E Free Cash Flow3 Sales & Revenues Adjusted Operating Profit Margin1 Tariff2 Costs
Page 17
17Financial Review | Third Quarter 2026 KEY TAKEAWAYS CONTINUE TO EXECUTE OUR STRATEGY FOR PROFITABLE GROWTH 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. STRONG PERFORMANCE END MARKETS REMAIN HEALTHY OPERATIONAL EXCELLENCE Year-to-date financial results tracking toward another record year With strong order rates and a growing backlog Remain disciplined and committed to returning substantially all MP&E Free Cash Flow1 to our shareholders over time
Page 18
© 2026 Caterpillar. All Rights Reserved. CAT, CATERPILLAR, LET’S DO THE WORK, their respective logos, “Caterpillar Corporate Yellow”, the “Power Edge” and Cat “Modern Hex” trade dress as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission. Q & A
Page 19
© 2026 Caterpillar. All Rights Reserved. CAT, CATERPILLAR, LET’S DO THE WORK, their respective logos, “Caterpillar Corporate Yellow”, the “Power Edge” and Cat “Modern Hex” trade dress as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission. A P P E N D I X
Page 20
20Financial Review | Third Quarter 2026 RETAIL STATISTICS THIRD QUARTER 2026 VS. THIRD QUARTER 2025 Note: Power & Energy retail sales reported in dollars based on reporting from dealers and direct sales, compared to 2025. Construction Industries retail sales reported in price neutral dollars and based on unit sales as reported by dealers, compared to 2025. Mining, Heavy Construction and Quarry & Aggregates (HC and Q&A) reported in price neutral dollars and based on unit sales as reported primarily by dealers, compared to 2025. Rail is reported in dollars based on direct sales, compared to 2025. TOTAL +36% Power Generation +75% Oil & Gas +5% Industrial (3%) RESOURCE INDUSTRIES TOTAL +4% Mining, HC and Q&A +8% Rail (70%) TOTAL +20% North America +27% Latin America +13% Europe, Africa, Middle East +16% Asia Pacific (2%) CONSTRUCTION INDUSTRIES POWER & ENERGY
Page 21
21Financial Review | Third Quarter 2026 CATERPILLAR EARNINGS RELEASE CALL SCHEDULE 4Q 2026 FEBRUARY 2, 2027 Tuesday, 8:30 a.m. Eastern 1Q 2027 APRIL 29, 2027 Thursday, 8:30 a.m. Eastern 2Q 2027 JULY 29, 2027 Thursday, 8:30 a.m. Eastern 3Q 2027 OCTOBER 28, 2027 Thursday, 8:30 a.m. Eastern
Page 22
22Financial Review | Third Quarter 2026 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. 2025 2026 3Q YOY Change3 1Q 2Q 3Q 4Q Full Year2 1Q 2Q 3Q Construction Industries Dealer Inventory 1 ($0.0) ($0.3) $0.6 ($0.6) ($0.3) $1.5 $0.4 $0.3 ($0.3) Total Dealer Inventory1 $0.1 $0.1 $0.6 ($0.0) $0.9 $2.0 $0.6 $0.8 $0.1 (USD in billions) Increase/(Decrease)
Page 23
23Financial Review | Third Quarter 2026 ORDER BACKLOG ORDER BACKLOG $78.1B 3Q 2026 RECORD LEVEL INCREASED $6.0B 3Q 2026 vs. 2Q 2026 INCREASED $38.2B 3Q 2026 vs. 3Q 2025
Page 24
24Financial Review | Third Quarter 2026 ADDITIONAL EXPECTATIONS AS WE LOOK AHEAD CONSOLIDATED - FULL YEAR 2026 About $300M in 2026 Restructuring Costs About $3.3B in 2026 MP&E Capital Expenditures 23.0% excluding discrete items Global Annual Effective Tax Rate
Page 25
25Financial Review | Third Quarter 2026 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. 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 $100B of sales and revenues
Page 26
26Financial Review | Third Quarter 2026 NON -GAAP FINANCIAL MEASURES Note: Amounts may not add due to rounding. (Dollars in millions except per share data) Operating Profit Operating Profit Margin Profit Before Taxes Provision (Benefit) for Income Taxes Profit Profit per Share Three Months Ended September 30, 2026 - U.S. GAAP 4,214$ 20.4% 4,220$ 968$ 3,287$ 7.13$ Restructuring costs 41 0.2% 41 9 32 0.07 Three Months Ended September 30, 2026 - Adjusted 4,255$ 20.6% 4,261$ 977$ 3,319$ 7.20$ Three Months Ended September 30, 2025 - U.S. GAAP 3,052$ 17.3% 3,127$ 836$ 2,300$ 4.88$ Restructuring 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$
Page 27
27Financial Review | Third Quarter 2026 ESTIMATED ANNUAL TAX RATE RECONCILIATION Note: Amounts may not add due to rounding. (Dollars in millions) Profit Before Taxes Provision (Benefit) for Income Taxes Effective Tax Rate Three Months Ended September 30, 2026 - U.S. GAAP 4,220$ 968$ 22.9% Excess stock-based compensation - 3 Annual effective tax rate, excluding discrete items 4,220$ 971$ 23.0% Excess stock-based compensation - (3) Restructuring costs 41 9 Three Months Ended September 30, 2026 - Adjusted 4,261$ 977$ 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 costs 37 9 Three Months Ended September 30, 2025 - Adjusted 3,164$ 845$
Page 28
28Financial Review | Third Quarter 2026 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-Q filing. 3Q 2025 3Q 2026 Sep YTD 2025 Sep YTD 2026 MP&E cash flow from operations $3.9 $4.5 $7.7 $11.5 MP&E capital expenditures (0.7) (0.7) (1.9) (2.0) MP&E free cash flow $3.2 $3.8 $5.8 $9.5 (USD in billions)