Slide 1: First Quarter 2024 Financial Review
First Quarter 2024 Financial Review April 25, 2024
Slide 2: Forward-Looking Statements
1Q 2024 EARNINGS RELEASE 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,” “wil
Slide 3: Strong Performance
1Q 2024 EARNINGS RELEASE Strong Performance EXECUTING THANK YOU HEALTHY DEMAND OUR STRATEGY CONTINUES ACROSS MOST FOR LONG-TERM TO OUR GLOBAL TEAM END MARKETS PROFITABLE GROWTH 3 Caterpillar: Non-Confidential
Slide 4: Key Takeaways
1Q 2024 EARNINGS RELEASE Key Takeaways First Quarter 2024 vs. First Quarter 2023 $15.8B $3.5B $3.5B $5.75 $5.60 About Flat 29% 5% 54% 14% SALES & OPERATING ADJUSTED PROFIT ADJUSTED REVENUES PROFIT OPERATING PER SHARE PROFIT PROFIT1 PER SHARE2 Record 1 Adjusted operating profit is a non-GAAP measure,
Slide 5: ME&T Free Cash Flow and Capital Deployment
1Q 2024 EARNINGS RELEASE ME&T Free Cash Flow1 and Capital Deployment $5.1B 30 $1.3B Years Record 1Q 2024 ME&T Share repurchases and dividends Dividend Aristocrat Free Cash Flow1 in the quarter Expect to return substantially Including an initiation of a $3.5B Paid higher annual dividends all ME&T Fre
Slide 6: End Market Commentary
1Q 2024 EARNINGS RELEASE End Market Commentary CONSTRUCTION INDUSTRIES RESOURCE INDUSTRIES ENERGY & TRANSPORTATION 6 Caterpillar: Non-Confidential
Slide 7: Sustainability
1Q 2024 EARNINGS RELEASE Sustainability Electrification Strategic Agreement with CRH CAT Hybrid Energy Storage Solution 7 Caterpillar: Non-Confidential
Slide 8: Financial Results Summary
1Q 2024 EARNINGS RELEASE Financial Results Summary First Quarter 2024 vs. First Quarter 2023 SALES & REVENUES OPERATING PROFIT ADJUSTED PROFIT (in billions of dollars) (in billions of dollars) PER SHARE1 (in dollars) $15.9 $15.8 $3.5 $5.60 $4.91 $2.7 1Q 2024 1Q 2023 2023 1Q 2024 2023 2024 1Q2019 1Q2
Slide 9: Consolidated Sales and Revenues
1Q 2024 EARNINGS RELEASE Consolidated Sales and Revenues First Quarter 2024 vs. First Quarter 2023 1ST QUARTER HIGHLIGHTS Sales & Revenues about flat • Lower sales volume of $684 million • Favorable price realization of $575 million 9 Caterpillar: Non-Confidential
Slide 10: Consolidated Operating Profit
1Q 2024 EARNINGS RELEASE Consolidated Operating Profit First Quarter 2024 vs. First Quarter 2023 1ST QUARTER HIGHLIGHTS Operating Profit Increased $788 million or 29% • Absence of the impact of the divestiture of the company’s Longwall business in 2023 of $586 million • Favorable price realization o
Slide 11: Construction Industries
1Q 2024 EARNINGS RELEASE Construction Industries First Quarter 2024 vs. First Quarter 2023 1ST QUARTER HIGHLIGHTS Total Sales* Segment Profit Segment Profit Total Sales Decreased by $322M or 5% (in billions of dollars) (in millions of dollars) as a percent of total sales* • North America – Favorable
Slide 12: Resource Industries
1Q 2024 EARNINGS RELEASE Resource Industries First Quarter 2024 vs. First Quarter 2023 1ST QUARTER HIGHLIGHTS Total Sales* Segment Profit Segment Profit Total Sales Decreased $234M or 7% (in billions of dollars) (in millions of dollars) as a percent of total sales* • Lower sales volume of $425 milli
Slide 13: Energy & Transportation
1Q 2024 EARNINGS RELEASE Energy & Transportation First Quarter 2024 vs. First Quarter 2023 1ST QUARTER HIGHLIGHTS Total Sales* Segment Profit Segment Profit (in billions of dollars) (in millions of dollars) as a percent of total sales* Total Sales Increased $427M or 7% • Oil and Gas – Increase in tu
Slide 14: Financial Products
1Q 2024 EARNINGS RELEASE Financial Products First Quarter 2024 vs. First Quarter 2023 1ST QUARTER HIGHLIGHTS Total Revenues* Segment Profit Total Revenues Increased $89M or 10% (in millions of dollars) (in millions of dollars) • Higher average financing rates across all regions of $69 million $991 $
Slide 15: ME&T Free Cash Flow and Capital Deployment
1Q 2024 EARNINGS RELEASE ME&T Free Cash Flow1 and Capital Deployment $1.3B $5.1B $5.0B Record 1Q 2024 ME&T Share repurchases and dividends Enterprise Cash Balance Free Cash Flow1 in the quarter Expect to be at the top half Including an initiation of a $3.5B Hold additional $2.2B in slightly of the M
Slide 16: Key Thoughts As We Look Ahead – Full Year 2024
1Q 2024 EARNINGS RELEASE Key Thoughts As We Look Ahead – Full Year 2024 • Anticipate full-year 2024 sales and revenues to be broadly similar to the record full-year 2023 level • Do not expect a significant change in machine dealer inventory1 by the end of 2024, compared to a build in 2023 • Anticipa
Slide 17: Key Thoughts As We Look Ahead – 2Q 2024
1Q 2024 EARNINGS RELEASE Key Thoughts As We Look Ahead – 2Q 2024 • Expect 2Q 2024 sales to be lower than 2Q 2023 • Expect dealer inventories1 of machines to decline in 2Q 2024, in line with normal seasonal trends • Expect that 2Q 2024 price realization will remain favorable compared to 2Q 2023 • Exp
Slide 18: First Quarter 2024 Key Takeaways
1Q 2024 EARNINGS RELEASE First Quarter 2024 Key Takeaways EXPECT FULL YEAR ADJUSTED RECORD RECORD $5.1B OPERATING PROFIT MARGIN2 AND ME&T FREE CASH FLOW3 ADJUSTED PROFIT CASH DEPLOYED IN THE QUARTER FOR SHARE TO BE IN TOP HALF PER SHARE1 OF $5.60 REPURCHASES AND DIVIDENDS OF TARGET RANGES4 1 First-q
Slide 19: Q&A
1Q 2024 EARNINGS RELEASE Q&A 19 Caterpillar: Non-Confidential
Slide 20: Appendix
1Q 2024 EARNINGS RELEASE Appendix 20 Caterpillar: Non-Confidential
Slide 21: 2024 Caterpillar Earnings Call Schedule
1Q 2024 EARNINGS RELEASE 2024 Caterpillar Earnings Call Schedule Earnings Quarter Release Date Call Time 2nd Quarter 2024 Tuesday, August 6, 2024 8:30 a.m. Eastern 3rd Quarter 2024 Wednesday, October 30, 2024 8:30 a.m. Eastern 21 Caterpillar: Non-Confidential
Slide 22: Dealer Inventory Changes
1Q 2024 EARNINGS RELEASE Dealer Inventory1 Changes (in billions of dollars) Increase/(Decrease) 2023 2024 YoY Impact Full to 1Q Sales 1Q 2Q 3Q 4Q 1Q Year2 Dealer Inventory1 of Machines $1.1 $0.2 $0.4 ($1.4) $0.7 $1.1 $0.0 Total Dealer Inventory1 $1.4 $0.6 $0.6 ($0.9) $2.1 $1.4 $0.0 1 Dealers are ind
Slide 23: Order Backlog
1Q 2024 EARNINGS RELEASE Order Backlog Increased Decreased Decreased $0.4B $0.6B $2.5B 1Q 2024 4Q 2023 1Q 2024 vs. 4Q 2023 vs. 3Q 2023 vs. 1Q 2023 23 Caterpillar: Non-Confidential
Slide 24: Adjusted Operating Profit Margin Target Range
1Q 2024 EARNINGS RELEASE Adjusted Operating Profit Margin1 Target Range 25% Adjusted Operating Profit Margin %1 22.0% 20.0% 20% 18.0% 16.0% 18.0% • Progressive adjusted operating profit margin1 target range 15% 14.0% 16.0% 14.0% • Adjusted operating profit margin1 target range: 10% 10.0% 12.0% • 10-
Slide 25: Additional Key Thoughts As We Look Ahead – Full Year 2024
1Q 2024 EARNINGS RELEASE Additional Key Thoughts As We Look Ahead – Full Year 2024 • Capital expenditures expected range of $2.0 billion to $2.5 billion • Restructuring costs expected between $300 million to $450 million • Expect annual effective tax rate, excluding discrete items, of 22.5% 25 Cater
Slide 26: Non-GAAP Financial Measures
1Q 2024 EARNINGS RELEASE Non-GAAP Financial Measures Note: Amounts may not add due to rounding. 26 Caterpillar: Non-Confidential
Slide 27: Estimated Annual Tax Rate Reconciliation
1Q 2024 EARNINGS RELEASE Estimated Annual Tax Rate Reconciliation Provision Profit Before (Benefit) for Effective Tax (Dollars in millions) Taxes Income Taxes Rate Three Months Ended March 31, 2024 - U.S. GAAP $ 3,532 $ 688 19.5% Restructuring (income) - non-US mining entity divestiture (64) 54 Exce
Slide 28: Reconciliation to U.S. GAAP
1Q 2024 EARNINGS RELEASE Reconciliation to U.S. GAAP Reconciliation of ME&T Cash Flow from Operations to ME&T Free Cash Flow (USD in billions) 1Q 2023 1Q 2024 ME&T cash flow from operations $ 1.8 $ 1.8 ME&T capital expenditures (0.4) (0.5) ME&T free cash flow $1.4 $1.3 Note: Amounts may not add due