Caterpillar, Inc. · NYSE:CAT
Caterpillar — Q3 2025 Earnings Presentation
26 slides from Caterpillar's earnings presentation, Oct 29, 2025
Slide 1: Third Quarter 2025 Financial Review
Third Quarter 2025 Financial Review October 29, 2025
Slide 2: Forward-Looking Statements
3Q 2025 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: Solid Performance Generated Strong Results
3Q 2025 EARNINGS RELEASE Solid Performance Generated Strong Results Driven by resilient demand across our three primary segments SALES AND REVENUES OF $17.6 BILLION BACKLOG GENERATED NOW AT $39.8 BILLION $3.2 BILLION ALL-TIME RECORD ALL-TIME RECORD OF ME&T FREE CASH FLOW1 FOR A SINGLE QUARTER 1 ME&T
Slide 4: Key Takeaways
3Q 2025 EARNINGS RELEASE Key Takeaways Third Quarter 2025 vs. Third Quarter 2024 $17.6B $3.1B $3.1B $4.88 $4.95 10% 3% 4% 4% 4% SALES & OPERATING ADJUSTED PROFIT ADJUSTED REVENUES PROFIT OPERATING PER SHARE2 PROFIT PROFIT1 PER SHARE2,3 Record 1 Adjusted operating profit is a non-GAAP measure, and a
Slide 5: End Market Commentary
3Q 2025 EARNINGS RELEASE End Market Commentary CONSTRUCTION INDUSTRIES RESOURCE INDUSTRIES ENERGY & TRANSPORTATION 5
Slide 6: Financial Results Summary
3Q 2025 EARNINGS RELEASE Financial Results Summary Third Quarter 2025 vs. Third Quarter 2024 SALES & OPERATING ADJUSTED PROFIT REVENUES PROFIT PER SHARE1,2 (in billions of dollars) (in billions of dollars) (in dollars) $17.6 $3.1 $3.1 $16.1 $5.17 $4.95 1 Third-quarter 2025 adjusted profit per share
Slide 7: Consolidated Sales and Revenues
3Q 2025 EARNINGS RELEASE Consolidated Sales and Revenues Third Quarter 2025 vs. Third Quarter 2024 3 RD QUARTER HIGHLIGHTS 20,000 Sales & Revenues Increased $1.532B or 10% 1,554 (191) 132 37 17,638 • Higher sales volume 18,000 16,106 16,000 • Higher sales of equipment to end users 14,000 (millions o
Slide 8: Consolidated Operating Profit
3Q 2025 EARNINGS RELEASE Consolidated Operating Profit Third Quarter 2025 vs. Third Quarter 2024 3 RD QUARTER HIGHLIGHTS 4,500 Operating Profit Decreased $95M or 3% 4,000 700 (191) • Unfavorable manufacturing costs (686) 3,500 • Largely reflected impact of higher tariffs1 3,147 3,052 (129) 180 • Unf
Slide 9: Construction Industries
3Q 2025 EARNINGS RELEASE Construction Industries Third Quarter 2025 vs. Third Quarter 2024 3 RD QUARTER HIGHLIGHTS Total Sales Increased $415M or 7% TOTAL SALES* SEGMENT PROFIT SEGMENT PROFIT • Higher sales volume (in billions of dollars) (in millions of dollars) (as a percent of total sales*) • Hig
Slide 10: Resource Industries
3Q 2025 EARNINGS RELEASE Resource Industries Third Quarter 2025 vs. Third Quarter 2024 3 RD QUARTER HIGHLIGHTS Total Sales Increased $62M or 2% TOTAL SALES* SEGMENT PROFIT SEGMENT PROFIT • Higher sales volume (in billions of dollars) (in millions of dollars) (as a percent of total sales*) • Higher s
Slide 11: Energy & Transportation
3Q 2025 EARNINGS RELEASE Energy & Transportation Third Quarter 2025 vs. Third Quarter 2024 3 RD QUARTER HIGHLIGHTS Total Sales Increased $1.210B or 17% TOTAL SALES* SEGMENT PROFIT SEGMENT PROFIT • Higher sales volume (in billions of dollars) (in millions of dollars) (as a percent of total sales*) •
Slide 12: Financial Products
3Q 2025 EARNINGS RELEASE Financial Products Third Quarter 2025 vs. Third Quarter 2024 3 RD QUARTER HIGHLIGHTS Total Revenues Increased $42M or 4% TOTAL REVENUES* SEGMENT PROFIT • Higher average earning assets (in millions of dollars) (in millions of dollars) • Lower average financing rates Segment P
Slide 13: ME&T Free Cash Flow and Capital Deployment
3Q 2025 EARNINGS RELEASE ME&T Free Cash Flow1 and Capital Deployment $3.2B $1.1B $7.5B ME&T FREE CASH FLOW1 DEPLOYED TO ENTERPRISE 3Q 2025 SHAREHOLDERS IN 3Q 2025 CASH BALANCE Approximately $500M higher Quarterly dividend payment Hold $1.2B in slightly longer-dated than 3Q 2024 of about $700M liquid
Slide 14: Expectations As We Look Ahead – Full Year 2025
3Q 2025 EARNINGS RELEASE Expectations As We Look Ahead – Full Year 2025 ● 2025 full-year sales and revenues modestly higher as compared to 2024, a slight improvement versus previous expectations of slightly higher ● 2025 full-year services revenues1 about flat as compared to 2024 ● 2025 net incremen
Slide 15: Expectations As We Look Ahead – 4Q 2025
3Q 2025 EARNINGS RELEASE Expectations As We Look Ahead – 4Q 2025 ● Strong 4Q 2025 sales and revenues growth as compared to 4Q 2024 ● 4Q 2025 machine dealer inventory1 to decline slightly as compared to a $1.6B decrease in 4Q 2024 ● 4Q 2025 net incremental tariffs2 of about $650M to $800M ● Excluding
Slide 16: 2025 Key Takeaways
3Q 2025 EARNINGS RELEASE 2025 Key Takeaways Remain optimistic about our underlying businesses EXPECT1 2025 FULL-YEAR ADJUSTED EXPECT1 2025 FULL-YEAR ANTICIPATE OPERATING PROFIT MARGIN2 ME&T FREE CASH FLOW4 MODESTLY HIGHER TO REMAIN NEAR TO BE ABOVE 2025 FULL-YEAR SALES INCLUDING STRONG 4Q 2025 THE B
Slide 17: Q&A
3Q 2025 EARNINGS RELEASE Q&A 17
Slide 18: Appendix
3Q 2025 EARNINGS RELEASE Appendix 18
Slide 19: 2026 Caterpillar Earnings Call Schedule
3Q 2025 EARNINGS RELEASE 2026 Caterpillar Earnings Call Schedule Earnings Quarter Release Date Call Time 4th Quarter 2025 Thursday, January 29, 2026 8:30 a.m. Eastern 1st Quarter 2026 Thursday, April 30, 2026 8:30 a.m. Eastern 2nd Quarter 2026 Tuesday, August 4, 2026 8:30 a.m. Eastern 3rd Quarter 20
Slide 20: Dealer Inventory Changes
3Q 2025 EARNINGS RELEASE Dealer Inventory1 Changes Increase/(Decrease) 2024 2025 YoY Full Impact to 1Q 2Q 3Q 4Q 1Q 2Q 3Q (USD in billions) Year2 3Q Sales3 Dealer Inventory1 of Machines $1.1 ($0.4) $0.1 ($1.6) ($0.7) $0.0 ($0.4) $0.3 $0.1 Total Dealer Inventory1 $1.4 ($0.2) $0.4 ($1.3) $0.4 $0.1 $0.1
Slide 21: Order Backlog
3Q 2025 EARNINGS RELEASE Order Backlog Increased Increased Increased $2.4B $2.5B $11.2B 3Q 2025 2Q 2025 3Q 2025 vs. 2Q 2025 vs. 1Q 2025 vs. 3Q 2024 21
Slide 22: Additional Expectations As We Look Ahead – Full Year 2025
3Q 2025 EARNINGS RELEASE Additional Expectations As We Look Ahead – Full Year 2025 ● Restructuring costs of approximately $300M to $350M in 2025 ● Capital expenditures around $2.5B in 2025 ● 2025 global annual effective tax rate of 24.0% 22
Slide 23: Adjusted Operating Profit Margin Target Range
3Q 2025 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 24: Non-GAAP Financial Measures
3Q 2025 EARNINGS RELEASE Non-GAAP Financial Measures Provision Operating Operating Profit Before (Benefit) for Profit per (Dollars in millions except per share data) Profit Profit Margin Taxes Income Taxes Profit Share Three Months Ended September 30, 2025 - U.S. GAAP $ 3,052 17.3% $ 3,127 $ 836 $ 2
Slide 25: Estimated Annual Tax Rate Reconciliation
3Q 2025 EARNINGS RELEASE Estimated Annual Tax Rate Reconciliation Provision Profit Before (Benefit) for Effective Tax (Dollars in millions) Taxes Income Taxes Rate Three Months Ended September 30, 2025 - U.S. GAAP $ 3,127 $ 836 26.7% Increase in annual effective tax rate - (54) Changes in estimates
Slide 26: Reconciliation to U.S. GAAP
3Q 2025 EARNINGS RELEASE Reconciliation to U.S. GAAP Reconciliation of ME&T Cash Flow from Operations to ME&T Free Cash Flow Sep YTD Sep YTD (USD in billions) 3Q 2024 3Q 2025 2024 2025 ME&T cash flow from operations $ 3.2 $ 3.9 $ 7.7 $ 7.7 ME&T capital expenditures (0.4) (0.7) (1.3) (1.9) ME&T free