Caterpillar Reports Second-Quarter 2026 Results

Caterpillar Reports Second-Quarter 2026 Results

PR Newswire

IRVING, Texas, Aug. 4, 2026

Second-quarter 2026 sales and revenues increased 24% to $20.5 billionSecond-quarter 2026 profit per share of $7.77; adjusted profit per share of $8.17 Deployed $2.2 billion of cash for share repurchases and dividends in the second quarterSecond Quarter($ in billions except profit per share)20262025Sales and Revenues$20.5$16.6Profit Per Share$7.77$4.62Adjusted Profit Per Share$8.17$4.72Please see a reconciliation of GAAP to non-GAAP financial measures in the appendix on pages 12 and 13.IRVING, Texas, Aug. 4, 2026 /PRNewswire/ -- Caterpillar Inc. (NYSE: CAT) announced second-quarter 2026 results.

"This is the first time in company history that we have generated over $20 billion in sales and revenues in a single quarter," said Caterpillar Chairman and CEO Joe Creed. "This milestone underscores both the essential work our customers do every day and the dedication of Caterpillar employees worldwide to solving our customers' toughest challenges. Strong order rates and a growing backlog reflect broadening momentum across all three of our primary segments."Sales and revenues for the second quarter of 2026 were $20.5 billion, a 24% increase compared with $16.6 billion in the second quarter of 2025. The increase was primarily due to higher sales volume of $3.1 billion and favorable price realization of $595 million.Operating profit margin was 20.9% for the second quarter of 2026, compared with 17.3% for the second quarter of 2025. Adjusted operating profit margin was 21.9% for the second quarter of 2026, compared with 17.6% for the second quarter of 2025. Second-quarter 2026 profit per share was $7.77, compared with second-quarter 2025 profit per share of $4.62. Adjusted profit per share in the second quarter of 2026 was $8.17, compared with second-quarter 2025 adjusted profit per share of $4.72. For the second quarter of 2026 and 2025, adjusted operating profit margin and adjusted profit per share excluded restructuring costs.For the second quarter of 2026, enterprise operating cash flow was $4.4 billion, and the company ended the second quarter with $6.7 billion of enterprise cash. In the quarter, the company deployed $1.5 billion of cash for repurchases of Caterpillar common stock and $0.7 billion of cash for dividends.CONSOLIDATED RESULTSConsolidated Sales and RevenuesConsolidated Sales and Revenues Comparison Second Quarter 2026 vs. Second Quarter 2025 To access this chart, go to https://investors.caterpillar.com/financials/quarterly-results/default.aspx for the downloadable version of Caterpillar second-quarter 2026 earnings. Total sales and revenues for the second quarter of 2026 were $20.543 billion, an increase of $3.974 billion, or 24%, compared with $16.569 billion in the second quarter of 2025. The increase was primarily due to higher sales volume of $3.1 billion and favorable price realization of $595 million. Higher sales volume was mainly driven by higher sales of equipment to end users.Sales were higher across the three primary segments.Sales and Revenues by Segment(Millions of dollars)Second Quarter2025SalesVolumePriceRealizationCurrencyInter-Segment / OtherSecondQuarter2026$Change%ChangePower & Energy$ 7,037$ 736$ 212$ 53$ 200$ 8,238$ 1,20117 %Construction Industries6,1901,75530974188,3462,15635 %Resource Industries3,8866397565(17)4,64876220 %All Other Segment8511—(3)84(1)(1 %)Corporate Items and Eliminations(1,524)(18)(2)7(198)(1,735)(211)Machinery, Power & Energy15,6743,113595199—19,5813,90725 %Financial Products Segment1,042———1031,14510310 %Corporate Items and Eliminations(147)———(36)(183)(36)Financial Products Revenues895———67962677 %Consolidated Sales and Revenues$ 16,569$ 3,113$ 595$ 199$ 67$ 20,543$ 3,97424 %Sales and Revenues by Geographic RegionNorth AmericaLatin AmericaEAMEAsia/PacificExternal Sales and RevenuesInter-SegmentTotal Salesand Revenues(Millions of dollars)$% Chg$% Chg$% Chg$% Chg$% Chg$% Chg$% ChgSecond Quarter 2026Power & Energy$ 4,18230 %$ 373(16 %)$ 1,3483 %$ 8929 %$ 6,79517 %$ 1,44316 %$ 8,23817 %Construction Industries5,06550 %67625 %1,45623 %1,0643 %8,26135 %8527 %8,34635 %Resource Industries2,23034 %67113 %71322 %9541 %4,56821 %80(18 %)4,64820 %All Other Segment950 %1— %2100 %3(50 %)1515 %69(4 %)84(1 %)Corporate Items and Eliminations(51)1(1)(7)(58)(1,677)(1,735)Machinery, Power & Energy11,43539 %1,72210 %3,51815 %2,9064 %19,58125 %—— %19,58125 %Financial Products Segment7659 %12216 %1379 %12112 %1,14510 %—— %1,14510 %Corporate Items and Eliminations(106)(23)(30)(24)(183)—(183)Financial Products Revenues6597 %9916 %107(1 %)9711 %9627 %—— %9627 %Consolidated Sales and Revenues$ 12,09437 %$ 1,82110 %$ 3,62514 %$ 3,0034 %$ 20,54324 %$ —— %$ 20,54324 %Second Quarter 2025Power & Energy$ 3,225$ 442$ 1,306$ 821$ 5,794$ 1,243$ 7,037Construction Industries3,3695401,1851,0296,123676,190Resource Industries1,6685925849453,789973,886All Other Segment6—16137285Corporate Items and Eliminations(32)(3)(4)(6)(45)(1,479)(1,524)Machinery, Power & Energy8,2361,5713,0722,79515,674—15,674Financial Products Segment7031051261081,042—1,042Corporate Items and Eliminations(88)(20)(18)(21)(147)—(147)Financial Products Revenues6158510887895—895Consolidated Sales and Revenues$ 8,851$ 1,656$ 3,180$ 2,882$ 16,569$ —$ 16,569Consolidated Operating ProfitConsolidated Operating Profit Comparison Second Quarter 2026 vs. Second Quarter 2025 To access this chart, go to https://investors.caterpillar.com/financials/quarterly-results/default.aspx for the downloadable version of Caterpillar second-quarter 2026 earnings. Operating profit for the second quarter of 2026 was $4.295 billion, an increase of $1.435 billion, or 50%, compared with $2.860 billion in the second quarter of 2025. The increase was primarily due to the profit impact of higher sales volume.Operating profit in the second quarter of 2026 included $392 million of expected International Emergency Economic Power Act (IEEPA) tariff recoveries.Profit (Loss) by Segment(Millions of dollars)Second Quarter 2026Second Quarter2025$Change% ChangePower & Energy$ 2,027$ 1,554$ 47330 %Construction Industries1,9471,24470357 %Resource Industries69356313023 %All Other Segment———— %Corporate Items and Eliminations(453)(566)113Machinery, Power & Energy4,2142,7951,41951 %Financial Products Segment3282488032 %Corporate Items and Eliminations(65)(36)(29)Financial Products2632125124 %Consolidating Adjustments(182)(147)(35)Consolidated Operating Profit$ 4,295$ 2,860$ 1,43550 %Other Profit/Loss and Tax Items Other income (expense) in the second quarter of 2026 was income of $398 million, compared with income of $84 million in the second quarter of 2025. The change was primarily driven by favorable impacts from foreign currency, total return swap contracts and investment and interest income. The effective tax rate for the second quarter of 2026 was 23.1% compared to 23.0% for the second quarter of 2025. Excluding the discrete items discussed below, the global estimated annual effective tax rate was 23.0% for the second quarters of 2026 and 2025.A discrete tax benefit of $26 million was recorded in the second quarter of 2026, compared with a $1 million benefit in the second quarter of 2025, for the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S. GAAP compensation expense.In addition, the global estimated annual effective tax rate in the second quarter of 2026 excluded the impact of second quarter losses of $139 million for the divestiture of certain non-U.S. entities with no related tax benefit.Please see a reconciliation of GAAP to non-GAAP financial measures in the appendix on pages 12 and 13.POWER & ENERGY(Millions of dollars)Segment SalesSecond Quarter 2025Sales VolumePrice RealizationCurrencyInter-SegmentSecondQuarter 2026$ Change% ChangeTotal Sales$ 7,037$ 736$ 212$ 53$ 200$ 8,238$ 1,20117 %Sales by ApplicationSecond Quarter 2026Second Quarter 2025$Change%ChangePower Generation$ 3,098$ 2,407$ 69129 %Oil and Gas2,0441,8671779 %Industrial1,6531,5201339 %External Sales6,7955,7941,00117 %Inter-segment1,4431,24320016 %Total Sales$ 8,238$ 7,037$ 1,20117 %Segment ProfitSecond Quarter 2026Second Quarter 2025Change%ChangeSegment Profit$ 2,027$ 1,554$ 47330 %Segment Profit Margin24.6 %22.1 % 2.5 pts Power & Energy's total sales were $8.238 billion in the second quarter of 2026, an increase of $1.201 billion, or 17%, compared with $7.037 billion in the second quarter of 2025. The increase was primarily due to higher sales volume of $736 million, favorable price realization of $212 million and higher inter-segment sales of $200 million.Power Generation – Sales increased in large reciprocating engines and in turbines and turbine-related services, primarily in data center applications.Oil and Gas – Sales increased in reciprocating engines used in gas compression applications and in reciprocating engine aftermarket parts, partially offset by lower sales of reciprocating engines used in well servicing applications. Sales also increased in turbines and turbine-related services.Industrial – Sales increased primarily in North America and EAME.Power & Energy's segment profit was $2.027 billion in the second quarter of 2026, an increase of $473 million, or 30%, compared with $1.554 billion in the second quarter of 2025. The increase was mainly due to the profit impact of higher sales volume of $457 million and favorable price realization of $212 million, partially offset by unfavorable manufacturing costs of $149 million. Unfavorable manufacturing costs largely reflected increased period manufacturing costs.CONSTRUCTION INDUSTRIES(Millions of dollars)Segment SalesSecondQuarter 2025SalesVolumePriceRealizationCurrencyInter-SegmentSecond Quarter 2026$ Change% ChangeTotal Sales$ 6,190$ 1,755$ 309$ 74$ 18$ 8,346$ 2,15635 %Sales by Geographic RegionSecond Quarter 2026Second Quarter 2025$Change%ChangeNorth America$ 5,065$ 3,369$ 1,69650 %Latin America67654013625 %EAME1,4561,18527123 %Asia/Pacific1,0641,029353 %External Sales8,2616,1232,13835 %Inter-segment85671827 %Total Sales$ 8,346$ 6,190$ 2,15635 %Segment ProfitSecond Quarter 2026Second Quarter 2025Change%ChangeSegment Profit$ 1,947$ 1,244$ 70357 %Segment Profit Margin23.3 %20.1 % 3.2 pts Construction Industries' total sales were $8.346 billion in the second quarter of 2026, an increase of $2.156 billion, or 35%, compared with $6.190 billion in the second quarter of 2025. The increase in sales was mainly due to higher sales volume of $1.8 billion and favorable price realization of $309 million. Higher sales volume was primarily driven by higher sales of equipment to end users.In North America, sales increased primarily due to higher sales volume and favorable price realization. Higher sales volume was mainly driven by higher sales of equipment to end users and by the impact from changes in dealer inventories.Sales increased in Latin America mainly due to higher sales volume and favorable currency impacts primarily related to the Brazilian real. Higher sales volume was mainly driven by higher sales of equipment to end users.In EAME, sales increased primarily due to higher sales volume and favorable currency impacts mainly related to the euro. Higher sales volume was primarily driven by higher sales of equipment to end users.Sales increased in Asia/Pacific mainly due to higher sales volume. Higher sales volume was primarily driven by higher sales of equipment to end users.Construction Industries' segment profit was $1.947 billion in the second quarter of 2026, an increase of $703 million, or 57%, compared with $1.244 billion in the second quarter of 2025. The increase was primarily due to the profit impact of higher sales volume.RESOURCE INDUSTRIES(Millions of dollars)Segment SalesSecond Quarter 2025SalesVolumePriceRealizationCurrencyInter-SegmentSecond Quarter 2026$ Change% ChangeTotal Sales$ 3,886$ 639$ 75$ 65$ (17)$ 4,648$ 76220 %Sales by IndustrySecond Quarter 2026SecondQuarter 2025$Change%ChangeMining, HC and Q&A*$ 3,685$ 3,024$ 66122 %Rail88376511815 %External Sales4,5683,78977921 %Inter-segment8097(17)(18 %)Total Sales$ 4,648$ 3,886$ 76220 %*Heavy Construction and Quarry & Aggregates (HC and Q&A)Segment Profit Second Quarter 2026Second Quarter 2025Change%ChangeSegment Profit$ 693$ 563$ 13023 %Segment Profit Margin14.9 %14.5 % 0.4 pts Resource Industries' total sales were $4.648 billion in the second quarter of 2026, an increase of $762 million, or 20%, compared with $3.886 billion in the second quarter of 2025. The increase was primarily due to higher sales volume. Higher sales volume was primarily driven by higher sales of equipment to end users.Mining, Heavy Construction and Quarry & Aggregates – Sales increased primarily due to higher sales of equipment to end users.Rail – Sales increased due to higher international locomotive deliveries. Sales also increased in rail services.Resource Industries' segment profit was $693 million in the second quarter of 2026, an increase of $130 million, or 23%, compared with $563 million in the second quarter of 2025. The increase was mainly due to the profit impact of higher sales volume of $269 million, partially offset by unfavorable manufacturing costs of $158 million. Unfavorable manufacturing costs primarily reflected increased period manufacturing costs.FINANCIAL PRODUCTS SEGMENT(Millions of dollars)Revenues by Geographic RegionSecond Quarter 2026Second Quarter 2025$Change%ChangeNorth America$ 765$ 703$ 629 %Latin America1221051716 %EAME137126119 %Asia/Pacific1211081312 %Total Revenues$ 1,145$ 1,042$ 10310 %Segment ProfitSecond Quarter 2026Second Quarter 2025Change%ChangeSegment Profit$ 328$ 248$ 8032 %Financial Products' segment revenues were $1.145 billion in the second quarter of 2026, an increase of $103 million, or 10%, compared with $1.042 billion in the second quarter of 2025. The increase was primarily due to a favorable impact from higher average earning assets across all regions.Financial Products' segment profit was $328 million in the second quarter of 2026, an increase of $80 million, or 32%, compared with $248 million in the second quarter of 2025. The increase was mainly due to favorable impacts from higher average earning assets of $44 million, equity securities at Insurance Services of $22 million and higher margins at Insurance Services of $21 million, partially offset by higher provision for credit losses at Cat Financial of $22 million.At the end of the second quarter of 2026, past dues at Cat Financial were 1.31%, compared with 1.62% at the end of the second quarter of 2025. Write-offs, net of recoveries, were $20 million for the second quarter of 2026 compared with $18 million for the second quarter of 2025. As of June 30, 2026, Cat Financial's allowance for credit losses totaled $294 million, or 0.84% of finance receivables, compared with $283 million, or 0.86% of finance receivables at March 31, 2026. The allowance for credit losses at year-end 2025 was $284 million, or 0.86% of finance receivables.Corporate Items and EliminationsExpense for corporate items and eliminations was $518 million in the second quarter of 2026, a decrease of $84 million from the second quarter of 2025. This decrease was due to timing differences, which included the majority of the expected IEEPA tariff recoveries recorded in the second quarter of 2026, and favorable impacts of segment reporting methodology differences. This was partially offset by higher corporate costs, higher restructuring costs and an unfavorable change in fair value adjustments related to deferred compensation plans. In the second quarter of 2026, restructuring costs increased primarily due to the divestiture of certain non-U.S. entities.Notesi. Glossary of terms is included on the Caterpillar website at https://investors.caterpillar.com/overview/default.aspx. ii. Sales of equipment to end users is demonstrated by the company's Rolling 3 Month Retail Sales Statistics filed in a Form 8-K on Tuesday, Aug. 4, 2026.iii. Information on non-GAAP financial measures is included in the appendix on pages 12 and 13.iv. Some amounts within this report are rounded to the millions or billions and may not add.v. Caterpillar will conduct a teleconference and live webcast, with a slide presentation, beginning at 7:30 a.m. Central Time on Tuesday, Aug. 4, 2026, to discuss its 2026 second-quarter results. The accompanying slides will be available before the webcast on the Caterpillar website at https://investors.caterpillar.com/events-presentations/default.aspx. About CaterpillarFor more than a century, Caterpillar has built a better, more sustainable world. With 2025 sales and revenues of $67.6 billion, Caterpillar Inc. is shaping the future as the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. Backed by one of the largest independent global dealer networks and financing services through Cat Financial, the company's primary business segments: Power & Energy, Construction Industries and Resource Industries are solving customers' toughest challenges through commercial excellence and advanced technology, driven by a highly skilled, dedicated global team. Learn more at caterpillar.com.Caterpillar's latest financial results are also available online:https://investors.caterpillar.com/overview/default.aspx https://investors.caterpillar.com/financials/quarterly-results/default.aspx (live broadcast/replays of quarterly conference call)Forward-Looking StatementsCertain statements in this press release 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.APPENDIXNON-GAAP FINANCIAL MEASURESThe following definitions are provided for the non-GAAP financial measures. These non-GAAP financial measures have no standardized meaning prescribed by U.S. GAAP and therefore are unlikely to be comparable to the calculation of similar measures for other companies. Management does not intend these items to be considered in isolation or as a substitute for the related GAAP measures.The company believes it is important to separately quantify the profit impact of two significant items in order for the company's results to be meaningful to readers. These items consist of (i) restructuring costs related to the divestiture of certain non-U.S. entities in 2026 and (ii) other restructuring costs. The company does not consider this item indicative of earnings from ongoing business activities and believes the non-GAAP measure provides investors with useful perspective on underlying business results and trends and aids with assessing the company's period-over-period results. The company intends to discuss adjusted profit per share for the fourth quarter and full-year 2026, excluding mark-to-market gains or losses for remeasurement of pension and other postemployment benefit plans.Reconciliations of adjusted results to the most directly comparable GAAP measure are as follows:(Dollars in millions except per share data)Operating ProfitOperating Profit MarginProfit BeforeTaxesProvision (Benefit) for Income TaxesProfitProfit per ShareThree Months Ended June 30, 2026 - U.S. GAAP$ 4,29520.9 %$ 4,558$ 1,055$ 3,593$ 7.77Restructuring costs - divestiture of certain non-U.S. entities1390.7 %139—1390.30Other restructuring costs630.3 %6315480.10Three Months Ended June 30, 2026 - Adjusted$ 4,49721.9 %$ 4,760$ 1,070$ 3,780$ 8.17Three Months Ended June 30, 2025 - U.S. GAAP$ 2,86017.3 %$ 2,818$ 646$ 2,179$ 4.62Other restructuring costs560.3 %5612470.10Three Months Ended June 30, 2025 - Adjusted$ 2,91617.6 %$ 2,874$ 658$ 2,226$ 4.72The company believes it is important to separately disclose the annual effective tax rate, excluding discrete items for the results to be meaningful to readers. The annual effective tax rate is discussed using non-GAAP financial measures that exclude the effects of amounts associated with discrete items recorded fully in the quarter they occur. For the three months ended June 30, 2026 and 2025, these items consist of (i) restructuring costs related to the divestiture of certain non-U.S. entities in 2026 and (ii) the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S. GAAP compensation expense. The company believes the non-GAAP measures will provide investors with useful perspective on underlying business results and trends and aids with assessing the company's period-over-period results.A reconciliation of the effective tax rate to annual effective tax rate, excluding discrete items is below:(Dollars in millions)Profit BeforeTaxesProvision(Benefit) forIncome TaxesEffective Tax RateThree Months Ended June 30, 2026 - U.S. GAAP$ 4,5581,05523.1 %Restructuring costs - divestiture of certain non-U.S. entities139—Excess stock-based compensation—26Annual effective tax rate, excluding discrete items$ 4,697$ 1,08123.0 %Excess stock-based compensation—(26)Other restructuring costs6315Three Months Ended June 30, 2026 - Adjusted$ 4,760$ 1,070Three Months Ended June 30, 2025 - U.S. GAAP$ 2,818$ 64623.0 %Excess stock-based compensation—1Annual effective tax rate, excluding discrete items$ 2,818$ 64723.0 %Excess stock-based compensation—(1)Other restructuring costs5612Three Months Ended June 30, 2025 - Adjusted$ 2,874$ 658Supplemental Consolidating DataThe company is providing supplemental consolidating data for the purpose of additional analysis. The data has been grouped as follows:Consolidated – Caterpillar Inc. and its subsidiaries.Machinery, Power & Energy (MP&E) – The company defines MP&E as it is presented in the supplemental data as Caterpillar Inc. and its subsidiaries, excluding Financial Products. MP&E's information relates to the design, manufacturing and marketing of its products.Financial Products – The company defines Financial Products as it is presented in the supplemental data as its finance and insurance subsidiaries, primarily Caterpillar Financial Services Corporation (Cat Financial) and Caterpillar Insurance Holdings Inc. (Insurance Services). Financial Products' information relates to the financing to customers and dealers for the purchase and lease of Caterpillar and other equipment.Consolidating Adjustments – Eliminations of transactions between MP&E and Financial Products.The nature of the MP&E and Financial Products businesses is different, especially with regard to the financial position and cash flow items. Caterpillar management utilizes this presentation internally to highlight these differences. The company believes this presentation will assist readers in understanding its business.Pages 15 to 25 reconcile MP&E and Financial Products to Caterpillar Inc. consolidated financial information.Caterpillar Inc.Condensed Consolidated Statement of Results of Operations(Unaudited)(Dollars in millions except per share data)Three Months EndedJune 30,Six Months Ended June 30,2026202520262025Sales and revenues:Sales of Machinery, Power & Energy$ 19,581$ 15,674$ 36,054$ 29,052Revenues of Financial Products9628951,9041,766Total sales and revenues20,54316,56937,95830,818Operating costs:Cost of goods sold12,78110,80724,08719,772Selling, general and administrative expenses2,0181,6943,8343,287Research and development expenses6165511,1531,031Interest expense of Financial Products362336707662Other operating (income) expenses471321797627Total operating costs16,24813,70930,57825,379Operating profit4,2952,8607,3805,439Interest expense excluding Financial Products135126269242Other income (expense)39884658191Consolidated profit before taxes4,5582,8187,7695,388Provision (benefit) for income taxes1,0556461,7251,220Profit of consolidated companies3,5032,1726,0444,168Equity in profit (loss) of unconsolidated affiliated companies9079714Profit of consolidated and affiliated companies3,5932,1796,1414,182Less: Profit (loss) attributable to noncontrolling interests——(1)—Profit 1$ 3,593$ 2,179$ 6,142$ 4,182Profit per common share$ 7.80$ 4.64$ 13.29$ 8.85Profit per common share — diluted 2$ 7.77$ 4.62$ 13.23$ 8.82Weighted-average common shares outstanding (millions)– Basic460.4469.7462.0472.4– Diluted 2462.5471.5464.3474.51Profit attributable to common shareholders.2Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.Caterpillar Inc.Condensed Consolidated Statement of Financial Position(Unaudited)(Millions of dollars)June 30,2026December 31,2025AssetsCurrent assets:Cash and cash equivalents$ 6,713$ 9,980Receivables – trade and other13,18810,920Receivables – finance10,84410,649Prepaid expenses and other current assets3,0782,801Inventories20,62718,135Total current assets54,45052,485Property, plant and equipment – net15,62815,140Long-term receivables – trade and other3,0862,142Long-term receivables – finance14,36414,272Noncurrent deferred and refundable income taxes2,2862,882Intangible assets420241Goodwill5,8595,321Other assets6,5166,102Total assets$ 102,609$ 98,585LiabilitiesCurrent liabilities:Short-term borrowings:-- Financial Products$ 5,046$ 5,514Accounts payable10,3138,968Accrued expenses5,8255,587Accrued wages, salaries and employee benefits2,1482,554Customer advances4,7773,314Dividends payable749703Other current liabilities2,8712,798Long-term debt due within one year:-- Machinery, Power & Energy3535-- Financial Products8,0267,085Total current liabilities39,79036,558Long-term debt due after one year:-- Machinery, Power & Energy10,65510,678-- Financial Products21,38420,018Liability for postemployment benefits3,7443,838Other liabilities7,6426,175Total liabilities83,21577,267Shareholders' equityCommon stock5,6547,181Treasury stock(54,533)(49,539)Profit employed in the business70,14165,448Accumulated other comprehensive income (loss)(1,867)(1,772)Noncontrolling interests(1)—Total shareholders' equity19,39421,318Total liabilities and shareholders' equity$ 102,609$ 98,585Caterpillar Inc.Condensed Consolidated Statement of Cash Flow(Unaudited)(Millions of dollars)Six Months Ended June 30,20262025Cash flow from operating activities:Profit of consolidated and affiliated companies$ 6,141$ 4,182Adjustments to reconcile profit to net cash provided by operating activities:Depreciation and amortization1,2111,094Provision (benefit) for deferred income taxes644(110)(Gain) loss on divestiture139—Other(22)398Changes in assets and liabilities, net of acquisitions and divestitures:Receivables – trade and other(3,182)(319)Inventories(2,553)(1,639)Accounts payable1,528973Accrued expenses189(12)Accrued wages, salaries and employee benefits(408)(805)Customer advances2,5761,276Other assets – net(93)(90)Other liabilities – net71(537)Net cash provided by (used for) operating activities6,2414,411Cash flow from investing activities:Capital expenditures – excluding equipment leased to others(1,315)(1,265)Expenditures for equipment leased to others(847)(608)Proceeds from disposals of leased assets and property, plant and equipment436365Additions to finance receivables(8,639)(7,064)Collections of finance receivables8,0606,399Proceeds from sale of finance receivables3318Investments and acquisitions (net of cash acquired)(802)(21)Proceeds from sale of businesses and investments (net of cash sold)(92)12Proceeds from maturities and sale of securities7341,328Investments in securities(1,155)(618)Other – net148(53)Net cash provided by (used for) investing activities(3,439)(1,507)Cash flow from financing activities:Dividends paid(1,399)(1,336)Common stock issued, and other stock compensation transactions, net(121)(59)Payments to purchase common stock(6,522)(4,488)Excise tax paid on purchases of common stock(49)(73)Proceeds from debt issued (original maturities greater than three months)7,3635,707Payments on debt (original maturities greater than three months)(4,763)(4,168)Short-term borrowings – net (original maturities three months or less)(542)72Net cash provided by (used for) financing activities(6,033)(4,345)Effect of exchange rate changes on cash(35)(7)Increase (decrease) in cash, cash equivalents and restricted cash(3,266)(1,448)Cash, cash equivalents and restricted cash at beginning of period9,9866,896Cash, cash equivalents and restricted cash at end of period$ 6,720$ 5,448Cash equivalents primarily represent short-term, highly liquid investments with original maturities of generally three months or less.Caterpillar Inc.Supplemental Data for Results of OperationsFor the Three Months Ended June 30, 2026 (Unaudited)(Millions of dollars)Supplemental Consolidating DataConsolidatedMachinery, Power & EnergyFinancialProductsConsolidatingAdjustmentsSales and revenues:Sales of Machinery, Power & Energy$ 19,581$ 19,581$ —$ —Revenues of Financial Products962—1,188(226)1Total sales and revenues20,54319,5811,188(226)Operating costs:Cost of goods sold12,78112,783—(2)2Selling, general and administrative expenses2,0181,800223(5)2Research and development expenses616616——Interest expense of Financial Products362—374(12)2Other operating (income) expenses471168328(25)2Total operating costs16,24815,367925(44)Operating profit4,2954,214263(182)Interest expense excluding Financial Products135141—(6)3Other income (expense)398163591764Consolidated profit before taxes4,5584,236322—Provision (benefit) for income taxes1,05596392—Profit of consolidated companies3,5033,273230—Equity in profit (loss) of unconsolidated affiliated companies9090——Profit of consolidated and affiliated companies3,5933,363230—Less: Profit (loss) attributable to noncontrolling interests————Profit 5$ 3,593$ 3,363$ 230$ —1Elimination of Financial Products' revenues earned from MP&E.2Elimination of net expenses recorded between MP&E and Financial Products.3Elimination of interest expense recorded between Financial Products and MP&E.4Elimination of discount recorded by MP&E on receivables sold to Financial Products and of interest earned between MP&E and Financial Products as well as dividends paid by Financial Products to MP&E.5Profit attributable to common shareholders.Caterpillar Inc.Supplemental Data for Results of OperationsFor the Three Months Ended June 30, 2025 (Unaudited)(Millions of dollars)Supplemental Consolidating DataConsolidatedMachinery, Power & EnergyFinancialProductsConsolidatingAdjustmentsSales and revenues:Sales of Machinery, Power & Energy$ 15,674$ 15,674$ —$ —Revenues of Financial Products895—1,081(186)1Total sales and revenues16,56915,6741,081(186)Operating costs:Cost of goods sold10,80710,809—(2)2Selling, general and administrative expenses1,6941,497209(12)2Research and development expenses551551——Interest expense of Financial Products336—342(6)Other operating (income) expenses32122318(19)2Total operating costs13,70912,879869(39)Operating profit2,8602,795212(147)Interest expense excluding Financial Products126130—(4)Other income (expense)84(101)421433Consolidated profit before taxes2,8182,564254—Provision (benefit) for income taxes64658561—Profit of consolidated companies2,1721,979193—Equity in profit (loss) of unconsolidated affiliated companies77——Profit of consolidated and affiliated companies2,1791,986193—Less: Profit (loss) attributable to noncontrolling interests—(1)1—Profit 4$ 2,179$ 1,987$ 192$ —1Elimination of Financial Products' revenues earned from MP&E.2Elimination of net expenses recorded by MP&E paid to Financial Products.3Elimination of discount recorded by MP&E on receivables sold to Financial Products and of interest earned between MP&E and Financial Products as well as dividends paid by Financial Products to MP&E.4Profit attributable to common shareholders.Caterpillar Inc.Supplemental Data for Results of OperationsFor the Six Months Ended June 30, 2026 (Unaudited)(Millions of dollars)Supplemental Consolidating DataConsolidatedMachinery, Power& EnergyFinancialProductsConsolidatingAdjustmentsSales and revenues:Sales of Machinery, Power & Energy$ 36,054$ 36,054$ —$ —Revenues of Financial Products1,904—2,331(427)1Total sales and revenues37,95836,0542,331(427)Operating costs:Cost of goods sold24,08724,091—(4)2Selling, general and administrative expenses3,8343,409445(20)2Research and development expenses1,1531,153——Interest expense of Financial Products707—730(23)2Other operating (income) expenses797188656(47)2Total operating costs30,57828,8411,831(94)Operating profit7,3807,213500(333)Interest expense excluding Financial Products269281—(12)3Other income (expense)658262753214Consolidated profit before taxes7,7697,194575—Provision (benefit) for income taxes1,7251,570155—Profit of consolidated companies6,0445,624420—Equity in profit (loss) of unconsolidated affiliated companies9797——Profit of consolidated and affiliated companies6,1415,721420—Less: Profit (loss) attributable to noncontrolling interests(1)(1)——Profit 5$ 6,142$ 5,722$ 420$ —1Elimination of Financial Products' revenues earned from MP&E.2Elimination of net expenses recorded between MP&E and Financial Products.3Elimination of interest expense recorded between Financial Products and MP&E.4Elimination of discount recorded by MP&E on receivables sold to Financial Products and of interest earned between MP&E and Financial Products as well as dividends paid by Financial Products to MP&E.5Profit attributable to common shareholders.Caterpillar Inc.Supplemental Data for Results of OperationsFor the Six Months Ended June 30, 2025(Unaudited)(Millions of dollars)Supplemental Consolidating DataConsolidatedMachinery, Power& EnergyFinancialProductsConsolidatingAdjustmentsSales and revenues:Sales of Machinery, Power & Energy$ 29,052$ 29,052$ —$ —Revenues of Financial Products1,766—2,129(363)1Total sales and revenues30,81829,0522,129(363)Operating costs:Cost of goods sold19,77219,776—(4)2Selling, general and administrative expenses3,2872,905405(23)2Research and development expenses1,0311,031——Interest expense of Financial Products662—668(6)Other operating (income) expenses62730643(46)2Total operating costs25,37923,7421,716(79)Operating profit5,4395,310413(284)Interest expense excluding Financial Products242249—(7)Other income (expense)191(146)602773Consolidated profit before taxes5,3884,915473—Provision (benefit) for income taxes1,2201,105115—Profit of consolidated companies4,1683,810358—Equity in profit (loss) of unconsolidated affiliated companies1414——Profit of consolidated and affiliated companies4,1823,824358—Less: Profit (loss) attributable to noncontrolling interests—(1)1—Profit 4$ 4,182$ 3,825$ 357$ —1Elimination of Financial Products' revenues earned from MP&E.2Elimination of net expenses recorded between MP&E and Financial Products.3Elimination of discount recorded by MP&E on receivables sold to Financial Products and of interest earned between MP&E and Financial Products as well as dividends paid by Financial Products to MP&E.4Profit attributable to common shareholders.Caterpillar Inc.Supplemental Data for Financial PositionAt June 30, 2026 (Unaudited)(Millions of dollars)Supplemental Consolidating DataConsolidatedMachinery, Power & EnergyFinancialProductsConsolidatingAdjustmentsAssetsCurrent assets:Cash and cash equivalents$ 6,713$ 5,945$ 768$ —Receivables – trade and other13,1884,6306867,8721,2Receivables – finance10,844—18,938(8,094)2Prepaid expenses and other current assets3,0782,683423(28)3Inventories20,62720,627——Total current assets54,45033,88520,815(250)Property, plant and equipment – net15,62811,3144,268464Long-term receivables – trade and other3,0862,7211012641,2Long-term receivables – finance14,364—15,912(1,548)2Noncurrent deferred and refundable income taxes2,2862,596124(434)5Intangible assets420420——Goodwill5,8595,859——Other assets6,5164,8262,783(1,093)6Total assets$ 102,609$ 61,621$ 44,003$ (3,015)LiabilitiesCurrent liabilities:Short-term borrowings$ 5,046$ —$ 5,046$ —Accounts payable10,31310,275251(213)7Accrued expenses5,8255,069756—Accrued wages, salaries and employee benefits2,1482,09850—Customer advances4,7774,7743—Dividends payable749749——Other current liabilities2,8712,212709(50)5,8,9Long-term debt due within one year8,061358,026—Total current liabilities39,79025,21214,841(263)Long-term debt due after one year32,03910,94822,384(1,293)9Liability for postemployment benefits3,7443,7431—Other liabilities7,6426,6071,552(517)5Total liabilities83,21546,51038,778(2,073)Shareholders' equityCommon stock5,6545,654905(905)10Treasury stock(54,533)(54,533)——Profit employed in the business70,14164,8905,2193210Accumulated other comprehensive income (loss)(1,867)(901)(966)—Noncontrolling interests(1)167(69)10Total shareholders' equity19,39415,1115,225(942)Total liabilities and shareholders' equity$ 102,609$ 61,621$ 44,003$ (3,015)1Elimination of receivables between MP&E and Financial Products.2Reclassification of MP&E's trade receivables purchased by Financial Products and Financial Products' wholesale inventory receivables.3Elimination of MP&E's insurance premiums that are prepaid to Financial Products.4Reclassification of Financial Products' other assets to property, plant and equipment.5Reclassification reflecting required netting of deferred tax assets/liabilities by taxing jurisdiction.6Elimination of other intercompany assets and liabilities between MP&E and Financial Products.7Elimination of payables between MP&E and Financial Products.8Elimination of prepaid insurance in Financial Products' other liabilities.9Elimination of debt between MP&E and Financial Products.10Eliminations associated with MP&E's investments in Financial Products' subsidiaries.Caterpillar Inc.Supplemental Data for Financial PositionAt December 31, 2025 (Unaudited)(Millions of dollars)Supplemental Consolidating DataConsolidatedMachinery, Power & EnergyFinancialProductsConsolidatingAdjustmentsAssetsCurrent assets:Cash and cash equivalents$ 9,980$ 9,333$ 647$ —Receivables – trade and other10,9203,8836576,3801,2Receivables – finance10,649—17,325(6,676)2Prepaid expenses and other current assets2,8012,448441(88)3Inventories18,13518,135——Total current assets52,48533,79919,070(384)Property, plant and equipment – net15,14010,9854,106494Long-term receivables – trade and other2,1421,982163(3)1,2Long-term receivables – finance14,272—15,538(1,266)2Noncurrent deferred and refundable income taxes2,8823,208133(459)5Intangible assets241241——Goodwill5,3215,321——Other assets6,1024,5252,651(1,074)6Total assets$ 98,585$ 60,061$ 41,661$ (3,137)LiabilitiesCurrent liabilities:Short-term borrowings$ 5,514$ —$ 5,514$ —Accounts payable8,9688,988268(288)7Accrued expenses5,5874,877710—Accrued wages, salaries and employee benefits2,5542,49460—Customer advances3,3143,3113—Dividends payable703703——Other current liabilities2,7982,259645(106)5,8Long-term debt due within one year7,120357,085—Total current liabilities36,55822,66714,285(394)Long-term debt due after one year30,69610,95521,018(1,277)9Liability for postemployment benefits3,8383,8371—Other liabilities6,1755,1621,516(503)5Total liabilities77,26742,62136,820(2,174)Shareholders' equityCommon stock7,1817,181905(905)10Treasury stock(49,539)(49,539)——Profit employed in the business65,44860,6394,7991010Accumulated other comprehensive income (loss)(1,772)(843)(929)—Noncontrolling interests—266(68)10Total shareholders' equity21,31817,4404,841(963)Total liabilities and shareholders' equity$ 98,585$ 60,061$ 41,661$ (3,137)1Elimination of receivables between MP&E and Financial Products.2Reclassification of MP&E's trade receivables purchased by Financial Products and Financial Products' wholesale inventory receivables.3Elimination of MP&E's insurance premiums that are prepaid to Financial Products.4Reclassification of Financial Products' other assets to property, plant and equipment.5Reclassification reflecting required netting of deferred tax assets/liabilities by taxing jurisdiction.6Elimination of other intercompany assets and liabilities between MP&E and Financial Products.7Elimination of payables between MP&E and Financial Products.8Elimination of prepaid insurance in Financial Products' other liabilities.9Elimination of debt between MP&E and Financial Products.10Eliminations associated with MP&E's investments in Financial Products' subsidiaries.Caterpillar Inc.Supplemental Data for Cash Flow For the Six Months Ended June 30, 2026 (Unaudited) (Millions of dollars)Supplemental Consolidating DataConsolidatedMachinery, Power & EnergyFinancialProductsConsolidatingAdjustmentsCash flow from operating activities:Profit of consolidated and affiliated companies$ 6,141$ 5,721$ 420$ —Adjustments to reconcile profit to net cash provided by operating activities:Depreciation and amortization1,211812399—Provision (benefit) for deferred income taxes644666(22)—(Gain) loss on divestiture139139——Other(22)(74)(271)3231Changes in assets and liabilities, net of acquisitions and divestitures:Receivables – trade and other(3,182)(1,356)(27)(1,799)1,2Inventories(2,553)(2,552)—(1)1Accounts payable1,5281,518(65)751Accrued expenses1891836—Accrued wages, salaries and employee benefits(408)(399)(9)—Customer advances2,5762,576——Other assets – net(93)(111)35(17)1Other liabilities – net71(112)148351Net cash provided by (used for) operating activities6,2417,011614(1,384)Cash flow from investing activities:Capital expenditures – excluding equipment leased to others(1,315)(1,302)(16)31Expenditures for equipment leased to others(847)(11)(840)41Proceeds from disposals of leased assets and property, plant and equipment43635407(6)1Additions to finance receivables(8,639)—(10,312)1,6732Collections of finance receivables8,060—9,188(1,128)2Net intercompany purchased receivables——(838)8382Proceeds from sale of finance receivables33—33—Collections of intercompany receivables (original maturities greater than three months)——48(48)3Investments and acquisitions (net of cash acquired)(802)(802)——Proceeds from sale of businesses and investments (net of cash sold)(92)(92)——Proceeds from maturities and sale of securities734395339—Investments in securities(1,155)(648)(507)—Other – net148230(82)—Net cash provided by (used for) investing activities(3,439)(2,195)(2,580)1,336Cash flow from financing activities:Dividends paid(1,399)(1,399)——Common stock issued, and other stock compensation transactions, net(121)(121)——Payments to purchase common stock(6,522)(6,522)——Excise tax paid on purchases of common stock(49)(49)——Payments on intercompany borrowings (original maturities greater than three months)—(48)—483Proceeds from debt issued (original maturities greater than three months)7,363—7,363—Payments on debt (original maturities greater than three months)(4,763)(19)(4,744)—Short-term borrowings – net (original maturities three months or less)(542)—(542)—Net cash provided by (used for) financing activities(6,033)(8,158)2,07748Effect of exchange rate changes on cash(35)(44)9—Increase (decrease) in cash, cash equivalents and restricted cash(3,266)(3,386)120—Cash, cash equivalents and restricted cash at beginning of period9,9869,336650—Cash, cash equivalents and restricted cash at end of period$ 6,720$ 5,950$ 770$ —1Elimination of non-cash adjustments and changes in assets and liabilities related to consolidated reporting.2Reclassification of Financial Products' cash flow activity from investing to operating for receivables that arose from the sale of inventory.3Elimination of proceeds and payments to/from MP&E and Financial Products.Caterpillar Inc.Supplemental Data for Cash Flow For the Six Months Ended June 30, 2025 (Unaudited) (Millions of dollars)Supplemental Consolidating DataConsolidatedMachinery, Power & EnergyFinancialProductsConsolidatingAdjustmentsCash flow from operating activities:Profit of consolidated and affiliated companies$ 4,182$ 3,824$ 358$ —Adjustments to reconcile profit to net cash provided by operating activities:Depreciation and amortization1,094716378—Provision (benefit) for deferred income taxes(110)(88)(22)—Other398357(286)3271Changes in assets and liabilities, net of acquisitions and divestitures:Receivables – trade and other(319)905(414)1,2Inventories(1,639)(1,639)——Accounts payable9739306371Accrued expenses(12)(64)52—Accrued wages, salaries and employee benefits(805)(786)(19)—Customer advances1,2761,276——Other assets – net(90)(133)(3)461Other liabilities – net(537)(621)128(44)1Net cash provided by (used for) operating activities4,4113,862597(48)Cash flow from investing activities:Capital expenditures – excluding equipment leased to others(1,265)(1,273)(22)301Expenditures for equipment leased to others(608)(14)(597)31Proceeds from disposals of leased assets and property, plant and equipment36536362(33)1Additions to finance receivables(7,064)—(8,084)1,0202Collections of finance receivables6,399—7,278(879)2Net intercompany purchased receivables——93(93)2Proceeds from sale of finance receivables18—18—Additions to intercompany receivables (original maturities greater than three months)—(1,000)—1,0003Collections of intercompany receivables (original maturities greater than three months)——35(35)3Investments and acquisitions (net of cash acquired)(21)(21)——Proceeds from sale of businesses and investments (net of cash sold)1212——Proceeds from maturities and sale of securities1,3281,026302—Investments in securities(618)(278)(340)—Other – net(53)(18)(35)—Net cash provided by (used for) investing activities(1,507)(1,530)(990)1,013Cash flow from financing activities:Dividends paid(1,336)(1,336)——Common stock issued, and other stock compensation transactions, net(59)(59)——Payments to purchase common stock(4,488)(4,488)——Excise tax paid on purchases of common stock(73)(73)——Proceeds from intercompany borrowings (original maturities greater than three months)——1,000(1,000)3Payments on intercompany borrowings (original maturities greater than three months)—(35)—353Proceeds from debt issued (original maturities greater than three months)5,7071,9763,731—Payments on debt (original maturities greater than three months)(4,168)(35)(4,133)—Short-term borrowings – net (original maturities three months or less)72—72—Net cash provided by (used for) financing activities(4,345)(4,050)670(965)Effect of exchange rate changes on cash(7)(21)14—Increase (decrease) in cash, cash equivalents and restricted cash(1,448)(1,739)291—Cash, cash equivalents and restricted cash at beginning of period6,8966,170726—Cash, cash equivalents and restricted cash at end of period$ 5,448$ 4,431$ 1,017$ —1Elimination of non-cash adjustments and changes in assets and liabilities related to consolidated reporting.2Reclassification of Financial Products' cash flow activity from investing to operating for receivables that arose from the sale of inventory.3Elimination of proceeds and payments to/from MP&E and Financial Products.