Caterpillar, Inc. · NYSE:CAT
Caterpillar — Q1 2026 Earnings Presentation
29 slides from Caterpillar's earnings presentation, Apr 30, 2026
Slide 1: Financial Review First Quarter 2026
FINANCIAL REVIEW FIRST QUARTER 2026 APRIL 30, 2026
Slide 2: Forward-Looking Statements
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,” “
Slide 3: Financial Results
FINANCIAL RESULTS First Quarter 2026 vs. First Quarter 2025 1Q 2026 Sales & Revenues $17.4B +22% SALES & REVENUES Operating Profit $3.1B +20% $17.4B, UP 22% YEAR OVER YEAR Adjusted Operating Profit1 $3.1B +20% RECORD BACKLOG LEVEL $63B, UP 79% YEAR OVER YEAR Profit Per Share2 $5.47 +30% Adjusted Pro
Slide 4: Segment Highlights
SEGMENT HIGHLIGHTS POWER CONSTRUCTION RESOURCE & ENERGY INDUSTRIES INDUSTRIES Financial Review | First Quarter 2026 4
Slide 5: Full Year 2026 Outlook
FULL YEAR 2026 OUTLOOK ADJUSTED OPERATING MP&E FREE CASH FLOW3 SALES & REVENUES PROFIT MARGIN1 LOW DOUBLE-DIGIT NEAR THE BOTTOM HIGHER GROWTH OF TARGET RANGE2 THAN 2025 1 Adjusted operating profit margin is a non-GAAP measure and a reconciliation to the most directly comparable GAAP measure is inclu
Slide 6: Strategy Update
STRATEGY UPDATE Continued Disciplined Investment to Meet Our Customers’ Needs UPDATED 2030 GROWTH ANNOUNCED TODAY 2030 GROWTH TARGETS2 TARGETS Enterprise 5-7% 6-9% ~3x LARGE ENGINE CAPACITY1 Sales & Revenues 2024 through 2030 CAGR3 CAGR3 Compared to 2024 MACHINERY, POWER & ENERGY Power Generation Sa
Slide 7: Financial Results Summary
FINANCIAL RESULTS SUMMARY First Quarter 2026 vs. First Quarter 2025 SALES & ADJUSTED REVENUES OPERATING PROFIT1 USD in billions USD in billions $17.4 $3.1 $14.2 $2.6 1Q 2025 1Q 2026 1Q 2025 1Q 2026 1 Adjusted operating profit is a non-GAAP measure and a reconciliation to the most directly comparable
Slide 8: Consolidated Sales & Revenues
CONSOLIDATED SALES & REVENUES First Quarter 2026 vs. First Quarter 2025 USD in millions SALES & REVENUES INCREASED $3.166B OR 22% 20,000 • Higher sales volume $426 $351 $71 $17,415 • Favorable impact from changes in dealer $2,318 inventories 15,000 $14,249 • Higher sales of equipment to end users •
Slide 9: Consolidated Operating Profit
CONSOLIDATED OPERATING PROFIT First Quarter 2026 vs. First Quarter 2025 USD in millions 4,500 OPERATING PROFIT INCREASED $506M OR 20% $426 ($710) • Favorable impact of higher sales volume 4,000 $940 • Favorable price realization 3,500 ($225) $59 $40 ($9) ($15) $3,085 • Unfavorable manufacturing cost
Slide 10: Profit Per Share
PROFIT PER SHARE First Quarter 2026 vs. First Quarter 2025 PROFIT ADJUSTED PROFIT PER SHARE1 PER SHARE1,2 USD USD $5.47 $5.54 $4.20 $4.25 1Q 2025 1Q 2026 1Q 2025 1Q 2026 1 Profit per share and adjusted profit per share in the first quarter of 2026 included a favorable adjustment to our tariff costs
Slide 11: Power & Energy
POWER & ENERGY First Quarter 2026 vs. First Quarter 2025 TOTAL SALES* SEGMENT PROFIT SEGMENT PROFIT TOTAL SALES INCREASED $1.248B OR 22% USD in billions USD in millions as a percent of total sales* • Higher sales volume • Higher inter-segment sales $7.0 $1,450 22.3% $1,288 20.6% SEGMENT PROFIT INCRE
Slide 12: Construction Industries
CONSTRUCTION INDUSTRIES First Quarter 2026 vs. First Quarter 2025 TOTAL SALES* SEGMENT PROFIT SEGMENT PROFIT TOTAL SALES INCREASED $1.977B OR 38% USD in billions USD in millions as a percent of total sales* • Higher sales volume • Favorable impact from changes in dealer $7.2 inventories $1,535 21.4%
Slide 13: Resource Industries
RESOURCE INDUSTRIES First Quarter 2026 vs. First Quarter 2025 TOTAL SALES* SEGMENT PROFIT SEGMENT PROFIT TOTAL SALES INCREASED $136M OR 4% USD in billions USD in millions as a percent of total sales* • Higher sales volume • Higher sales of equipment to end users $3.7 $3.8 $623 17.0% • Favorable curr
Slide 14: Financial Products
FINANCIAL PRODUCTS First Quarter 2026 vs. First Quarter 2025 TOTAL REVENUES* SEGMENT PROFIT TOTAL REVENUES INCREASED $89M OR 9% USD in millions USD in millions • Higher average earning assets $1,096 $245 SEGMENT PROFIT INCREASED $30M OR 14% $1,007 $215 • Favorable impact from higher average earning
Slide 15: MP&E Free Cash Flow and Capital Deployment
MP&E FREE CASH FLOW 1 AND CAPITAL DEPLOYMENT $0.6B $5.7B $4.1B MP&E FREE CASH FLOW1 DEPLOYED TO ENTERPRISE 1Q 2026 SHAREHOLDERS IN 1Q 2026 CASH BALANCE About a $350M increase versus After the dividend payment, Held additional $1.3B in slightly 1Q 2025, impacted by stronger approximately $5.0B was fo
Slide 16: Expectations as We Look Ahead: Second Quarter 2026
EXPECTATIONS AS WE LOOK AHEAD Second Quarter 2026 • 2Q 2026 sales and revenues higher as compared to 2Q 2025 • 2Q 2026 tariff1 costs of around $700M • Including the impact of tariff1 costs, higher 2Q 2026 adjusted operating profit margin2 as compared to 2Q 2025 1 Tariffs implemented since the beginn
Slide 17: Expectations as We Look Ahead: Full Year 2026
EXPECTATIONS AS WE LOOK AHEAD Full Year 2026 • 2026 full-year sales and revenues growth of low double-digit as compared to 2025 • 2026 tariff1 costs in the range of $2.2B to $2.4B • 2026 full-year adjusted operating profit margin2 higher than previous expectations • Including the impact of tariff1 c
Slide 18: Key Takeaways
KEY TAKEAWAYS Continue to Execute Our Strategic Plan for Profitable Growth DELIVERED NOW ANTICIPATE CONTINUE TO RETURN SUBSTANTIALLY ALL BETTER THAN HIGHER SALES & MP&E FREE EXPECTED REVENUES GROWTH CASH FLOW1 1Q 2026 EARNINGS IN 2026 COMPARED TO A QUARTER AGO TO SHAREHOLDERS 1 MP&E free cash flow r
Slide 19: Q&A
Q&A CATERPILLAR’
Slide 20: Appendix
y APPENDIX CATERPILLAR’
Slide 21: Retail Statistics
RETAIL STATISTICS First Quarter 2026 vs. First Quarter 2025 POWER & CONSTRUCTION RESOURCE ENERGY INDUSTRIES INDUSTRIES TOTAL +32% TOTAL +7% TOTAL +6% Power Generation +48% North America +12% Mining, HC and Q&A +6% Oil & Gas +16% Latin America +4% Rail (4%) Industrial +3% Europe, Africa, Middle East
Slide 22: Caterpillar Earnings Release Call Schedule
CATERPILLAR EARNINGS RELEASE CALL SCHEDULE 2Q 2026 3Q 2026 AUGUST 4, 2026 OCTOBER 29, 2026 Tuesday, 8:30 a.m. Eastern Thursday, 8:30 a.m. Eastern Financial Review | First Quarter 2026 22
Slide 23: Dealer Inventory Changes
DEALER INVENTORY 1 CHANGES Increase/(Decrease) 2025 2026 1Q YOY Full 1Q 2Q 3Q 4Q 1Q Change3 (USD in billions) Year2 Construction Industries Dealer Inventory1 ($0.0) ($0.3) $0.6 ($0.6) ($0.3) $1.5 $1.5 Total Dealer Inventory1 $0.1 $0.1 $0.6 ($0.0) $0.9 $2.0 $1.9 1 Dealers are independent businesses a
Slide 24: Order Backlog
ORDER BACKLOG ORDER BACKLOG INCREASED INCREASED $62.7B $11.5B $27.7B 1Q 2026 1Q 2026 1Q 2026 RECORD LEVEL vs. 4Q 2025 vs. 1Q 2025 Financial Review | First Quarter 2026 24
Slide 25: Additional Expectations as We Look Ahead
ADDITIONAL EXPECTATIONS AS WE LOOK AHEAD Full Year 2026 • Restructuring costs of approximately $300M to $350M in 2026 • MP&E capital expenditures of approximately $3.5B in 2026 • 2026 global annual effective tax rate of 23.0%, excluding discrete items Financial Review | First Quarter 2026 25
Slide 26: Adjusted Operating Profit Margin Target Range
ADJUSTED OPERATING PROFIT MARGIN 1 TARGET RANGE 25% Adjusted Operating Profit Margin1 22% • Progressive adjusted operating profit margin1 19% target range 21% • Adjusted operating profit margin1 target range: 18% • 15-19% at $60B of sales and revenues • 18-22% at $72B of sales and revenues 15% • 21-
Slide 27: Non-GAAP Financial Measures
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 March 31, 2026 - U.S. GAAP $ 3,085 17.7% $ 3,211 $ 670 $ 2,549 $ 5.47 Restructuring cos
Slide 28: Estimated Annual Tax Rate Reconciliation
ESTIMATED ANNUAL TAX RATE RECONCILIATION Provision Profit Before (Benefit) for Effective Tax (Dollars in millions) Taxes Income Taxes Rate Three Months Ended March 31, 2026 - U.S. GAAP $ 3,211 $ 670 20.9% Excess stock-based compensation - 68 Annual effective tax rate, excluding discrete items $ 3,21
Slide 29: Reconciliation to U.S. GAAP
RECONCILIATION TO U.S. GAAP Reconciliation of MP&E Cash Flow From Operations to MP&E Free Cash Flow (USD in billions) 1Q 2025 1Q 2026 MP&E cash flow from operations $ 0.9 $ 1.3 MP&E capital expenditures (0.7) (0.7) MP&E free cash flow $ 0.2 $ 0.6 Note: Amounts may not add due to rounding. See reconc