CATERPILLAR INC - Quarter Report: 2025 June (Form 10-Q)

Comprehensive income attributable to shareholders$ $

See accompanying notes to Consolidated Financial Statements.

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Caterpillar Inc.

Consolidated Statement of Results of Operations

(Unaudited)

(Dollars in millions except per share data)


	Six Months Ended June 30,
	2025	2024
Sales and revenues:
Sales of Machinery, Energy & Transportation	$	$
Revenues of Financial Products
Total sales and revenues

Operating costs:
Cost of goods sold
Selling, general and administrative expenses
Research and development expenses
Interest expense of Financial Products
Other operating (income) expenses
Total operating costs

Operating profit

Interest expense excluding Financial Products
Other income (expense)

Consolidated profit before taxes

Provision (benefit) for income taxes
Profit of consolidated companies

Equity in profit (loss) of unconsolidated affiliated companies

Profit of consolidated and affiliated companies

Less: Profit (loss) attributable to noncontrolling interests		()

Profit 1	$	$

Profit per common share	$	$

Profit per common share – diluted 2	$	$

Weighted-average common shares outstanding (millions)
– Basic
– Diluted 2

See accompanying notes to Consolidated Financial Statements.

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Caterpillar Inc.

Consolidated Statement of Comprehensive Income

(Unaudited)

(Dollars in millions)


	Six Months Ended June 30,
	2025	2024

Profit of consolidated and affiliated companies	$	$
Other comprehensive income (loss), net of tax (Note 13):
Foreign currency translation		()
Pension and other postretirement benefits	()	()
Derivative financial instruments		()
Available-for-sale securities		()

Total other comprehensive income (loss), net of tax		()
Comprehensive income
Less: comprehensive income (loss) attributable to the noncontrolling interests		()
Comprehensive income attributable to shareholders	$	$

See accompanying notes to Consolidated Financial Statements.

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Caterpillar Inc.

Consolidated Statement of Financial Position

(Unaudited)

(Dollars in millions)

June 30,
2025

December 31,
2024

Assets

Current assets:

Cash and cash equivalents

Receivables – trade and other

Receivables – finance

Prepaid expenses and other current assets

Inventories

Total current assets

Property, plant and equipment – net

Long-term receivables – trade and other

Long-term receivables – finance

Noncurrent deferred and refundable income taxes

Intangible assets

Goodwill

Other assets

Total assets

Liabilities

Current liabilities:

Short-term borrowings:

Financial Products

Accounts payable

Accrued expenses

Accrued wages, salaries and employee benefits

Customer advances

Dividends payable

Other current liabilities

Long-term debt due within one year:

Machinery, Energy & Transportation

Financial Products

Total current liabilities

Long-term debt due after one year:

Machinery, Energy & Transportation

Financial Products

Liability for postemployment benefits

Other liabilities

Total liabilities

Commitments and contingencies (Notes 11 and 14)

1 and $ were declared in the six months ended June 30, 2025 and 2024, respectively.

See accompanying notes to Consolidated Financial Statements.

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Caterpillar Inc.

Consolidated Statement of Cash Flow

(Unaudited)

(Dollars in Millions)


	Six Months Ended June 30,
	2025	2024
Cash flow from operating activities:
Profit of consolidated and affiliated companies	$	$
Adjustments to reconcile profit to net cash provided by operating activities:
Depreciation and amortization
Provision (benefit) for deferred income taxes	()	()
(Gain) loss on divestiture
Other
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables – trade and other	()	()
Inventories	()	()
Accounts payable		()
Accrued expenses	()
Accrued wages, salaries and employee benefits	()	()
Customer advances
Other assets – net	()
Other liabilities – net	()	()
Net cash provided by (used for) operating activities

Cash flow from investing activities:
Capital expenditures – excluding equipment leased to others	()	()
Expenditures for equipment leased to others	()	()
Proceeds from disposals of leased assets and property, plant and equipment
Additions to finance receivables	()	()
Collections of finance receivables
Proceeds from sale of finance receivables
Investments and acquisitions (net of cash acquired)	()	()
Proceeds from sale of businesses and investments (net of cash sold)		()
Proceeds from maturities and sale of securities
Investments in securities	()	()
Other – net	()
Net cash provided by (used for) investing activities	()

Cash flow from financing activities:
Dividends paid	()	()
Common stock issued, including treasury shares reissued	()
Payments to purchase common stock	()	()
Excise tax paid on purchases of common stock	()
Proceeds from debt issued (original maturities greater than three months):
- Machinery, Energy & Transportation
- Financial Products
Payments on debt (original maturities greater than three months):
- Machinery, Energy & Transportation	()	()
- Financial Products	()	()
Short-term borrowings – net (original maturities three months or less)

million, which will be amortized over the weighted-average remaining requisite service periods of approximately years.

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. As of June 30, 2025, the maximum term of these outstanding contracts at inception was approximately months.

We generally designate as cash flow hedges at inception of the contract any foreign currency forward or option contracts that meet the requirements for hedge accounting and the maturity extends beyond the current quarter-end. We perform designation on a specific exposure basis to support hedge accounting. The remainder of ME&T foreign currency contracts are undesignated.

In managing foreign currency risk for our Financial Products operations, our objective is to minimize earnings volatility resulting from conversion and the remeasurement of net foreign currency balance sheet positions and future transactions denominated in foreign currencies. Our policy allows the use of foreign currency forward, option and cross currency contracts to offset the risk of currency mismatch between our assets and liabilities and exchange rate risk associated with future transactions denominated in foreign currencies. Our foreign currency forward and option contracts are primarily undesignated. We designate fixed-to-fixed cross currency contracts as cash flow hedges to protect against movements in exchange rates on foreign currency fixed-rate assets and liabilities. We designate float-to-float cross currency contracts as fair value hedges to protect against movements in exchange rates on floating-rate assets and liabilities.

Interest rate risk

Interest rate movements create a degree of risk by affecting the amount of our interest payments and the value of our fixed-rate debt. Our practice is to use interest rate contracts to manage our exposure to interest rate changes.

Our ME&T operations generally use fixed-rate debt as a source of funding. Our objective is to minimize the cost of borrowed funds. Our policy allows us to enter into fixed-to-floating interest rate contracts and forward rate agreements to meet that objective. We designate fixed-to-floating interest rate contracts as fair value hedges at inception of the contract, and we designate certain forward rate agreements as cash flow hedges at inception of the contract.

Financial Products operations has a match-funding policy that addresses interest rate risk by aligning the interest rate profile (fixed or floating rate and duration) of Cat Financial’s debt portfolio with the interest rate profile of our receivables portfolio within predetermined ranges on an ongoing basis. In connection with that policy, we use interest rate derivative instruments to modify the debt structure to match assets within the receivables portfolio. This matched funding reduces the volatility of margins between interest-bearing assets and interest-bearing liabilities, regardless of which direction interest rates move.

Our policy allows us to use fixed-to-floating, floating-to-fixed and floating-to-floating interest rate contracts to meet the match-funding objective. We designate fixed-to-floating interest rate contracts as fair value hedges to protect debt against changes in fair value due to changes in the benchmark interest rate. We designate most floating-to-fixed interest rate contracts as cash flow hedges to protect against the variability of cash flows due to changes in the benchmark interest rate.

We have, at certain times, liquidated fixed-to-floating and floating-to-fixed interest rate contracts at both ME&T and Financial Products. We amortize the gains or losses associated with these contracts at the time of liquidation into earnings over the remaining term of the previously designated hedged item.

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horizon. All such commodity forward and option contracts are undesignated.

Deferred compensation plan liability risk

We are also exposed to variability in compensation expense related to certain non-qualified deferred compensation obligations to employees. We utilize total return swaps to economically hedge this exposure to offset the related compensation expense. All such total return swap contracts are undesignated.

$()$ $()Interest rate contracts () ()Total$ $()$ $()Undesignated derivativesForeign exchange contracts$ $()$ $()Commodity contracts () ()Total return swap contracts ()Total$ $()$ $()

1 Assets are classified as Receivables - trade and other or Long-term receivables - trade and other.

2 Liabilities are classified as Accrued expenses or Other liabilities.

The total notional amounts of the derivative instruments as of June 30, 2025 and December 31, 2024 were $ billion and $ billion, respectively. The notional amounts of the derivative financial instruments do not represent amounts exchanged by the parties. We calculate the amounts exchanged by the parties by referencing the notional amounts and by other terms of the derivatives, such as foreign currency exchange rates, interest rates, commodity prices or certain deferred compensation plan liabilities.

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$()$ $ Interest rate contracts— — Fair Value HedgesForeign exchange contracts— — ()— ()— Interest rate contracts()()— — — — Undesignated HedgesForeign exchange contracts() — — — — Commodity contracts() — — — — Total return swap contracts ()— — — — Total$()$ $ $()$ $

1 Foreign exchange contract, Commodity contract and Total return swap contract gains (losses) are included in Other income (expense). Interest rate contract gains (losses) are included in Interest expense of Financial Products and Interest expense excluding Financial Products.

2 Foreign exchange contract gains (losses) are primarily included in Other income (expense). Interest rate contract gains (losses) are primarily included in Interest expense of Financial Products.

(Millions of dollars)Six Months Ended June 30,

Gains (Losses) Recognized on the Consolidated Statement of Results of Operations 1

Gains (Losses) Recognized in AOCI

Gains (Losses) Reclassified from AOCI 2

202520242025202420252024Cash Flow HedgesForeign exchange contracts$— $— $ $ $ $ Interest rate contracts— — Fair Value HedgesForeign exchange contracts— — ()— ()— Interest rate contracts()()— — — — Undesignated HedgesForeign exchange contracts() — — — — Commodity contracts — — — — Total return swap contracts — — — — Total$()$ $ $ $ $

2 Foreign exchange contract gains (losses) are primarily included in Other income (expense). Interest rate contract gains (losses) are primarily included in Interest expense of Financial Products.

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$ $()$()Long-term debt due after one year ()()Total$ $ $()$()

We enter into International Swaps and Derivatives Association (ISDA) master netting agreements within ME&T and Financial Products that permit the net settlement of amounts owed under their respective derivative contracts. Under these master netting agreements, net settlement generally permits the company or the counterparty to determine the net amount payable for contracts due on the same date and in the same currency for similar types of derivative transactions. The master netting agreements may also provide for net settlement of all outstanding contracts with a counterparty in the case of an event of default or a termination event. Our exposure to credit loss in the event of nonperformance by the counterparties is limited to only those gains that we have recorded, but for which we have not yet received cash payment.

Collateral is typically not required of the counterparties or of our company under the master netting agreements. As of June 30, 2025 and December 31, 2024, no cash collateral was received or pledged under the master netting agreements.

$()$ $()Financial Instruments Not Offset() () $()$ $()$ $

1 Other adjustments are comprised primarily of foreign currency translation.

2 Includes All Other Segment (See Note 16).

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$ $ $ $ $ Other U.S. and non-U.S. government bonds () Corporate debt securities Corporate bonds and other debt securities () Asset-backed securities () () Mortgage-backed debt securities U.S. governmental agency () () Residential Commercial () () Total available-for-sale debt securities$ $()$ $ $()$ $ $ $ $ $ Corporate debt securitiesCorporate bonds Asset-backed securities Mortgage-backed debt securitiesU.S. governmental agency Commercial Total$ $ $ $ $ $

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$ $ $ $ $ Corporate debt securitiesCorporate bonds Asset-backed securities Mortgage-backed debt securities U.S. governmental agency Commercial Total$ $ $ $ $ $

1 Indicates the length of time that individual securities have been in a continuous unrealized loss position.

The unrealized losses on our investments in government debt securities, corporate debt securities, and mortgage-backed debt securities relate to changes in underlying interest rates and credit spreads since time of purchase. We do not intend to sell the investments, and it is not likely that we will be required to sell the investments before recovery of their respective amortized cost basis. In addition, we did not expect credit-related losses on these investments as of June 30, 2025.

$ Due after one year through five years Due after five years through ten years Due after ten years U.S. governmental agency mortgage-backed securities Residential mortgage-backed securities Commercial mortgage-backed securities Total debt securities – available-for-sale$ $

For the three months ended June 30, 2025 and 2024, proceeds from available-for-sale debt securities were $ million and $ million, respectively. For the six months ended June 30, 2025 and 2024, proceeds from available-for-sale debt securities were $ million and $ million, respectively.

For the three months ended June 30, 2025 and 2024, the net unrealized gains (losses) for equity securities held at June 30, 2025 and 2024 were $ million and $() million, respectively. For the six months ended June 30, 2025 and 2024, the net unrealized gains (losses) for equity securities held at June 30, 2025 and 2024 were $ million and $ million, respectively.

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$ $ $ $ $ Interest cost Expected return on plan assets ()()()()()()Amortization of prior service cost (credit) ()()

Net periodic benefit cost (benefit) 1

$()$()$()$ $ $ For the six months ended:Components of net periodic benefit cost:Service cost$ $ $ $ $ $ Interest cost Expected return on plan assets ()()()()()()Amortization of prior service cost (credit) ()()

Net periodic benefit cost (benefit) 1

$()$()$()$()$ $

1 The service cost component is included in Operating costs. All other components are included in Other income (expense).

We made $ million and $ million of contributions to our pension and other postretirement plans during the three and six months ended June 30, 2025, respectively. We currently anticipate full-year 2025 contributions of approximately $ million.

B. Defined contribution benefit costs

$ $ $ Non-U.S. Plans $ $ $ $

1 Includes costs related to our non-qualified deferred compensation plans. We utilize total return swaps to economically hedge this exposure to offset the related costs. See Note 5 for additional information.

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10.

$ $ $ Operating lease revenue Total$ $ $ $

11.

million and $ million at June 30, 2025 and December 31, 2024, respectively.

No significant loss has been experienced or is anticipated under any of these guarantees.

Cat Financial provides guarantees to purchase certain loans of Caterpillar dealers from a special-purpose corporation (SPC) that qualifies as a variable interest entity. Cat Financial receives a fee for providing this guarantee. The purpose of the SPC is to provide short-term working capital loans to Caterpillar dealers. This SPC issues commercial paper and uses the proceeds to fund its loan program. Cat Financial is the primary beneficiary of the SPC as its guarantees result in Cat Financial having both the power to direct the activities that most significantly impact the SPC’s economic performance and the obligation to absorb losses, and therefore Cat Financial has consolidated the financial statements of the SPC. As of June 30, 2025 and December 31, 2024, the SPC’s assets of $ billion and $ billion, respectively, were primarily comprised of loans to dealers, and the SPC’s liabilities of $ billion and $ billion, respectively, were primarily comprised of commercial paper. The assets of the SPC are not available to pay Cat Financial’s creditors. Cat Financial may be obligated to perform under the guarantee if the SPC experiences losses. No loss has been experienced or is anticipated under this loan purchase agreement.

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$ Reduction in liability (payments)()()Increase in liability (new warranties) Warranty liability, end of period$ $

12.

$ $ $ Determination of shares (in millions): Weighted-average number of common shares outstanding (B)Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price

Average common shares outstanding for fully diluted computation (C) 2

Profit per share of common stock: Basic (A/B)$ $ $ $

Diluted (A/C) 2

$ $ $ $ Shares outstanding as of June 30, (in millions)

1 Profit attributable to common shareholders.

2 Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.

For the three and six months ended June 30, 2025, we excluded million and million of outstanding stock options, respectively, from the computation of diluted earnings per share because the effect would have been antidilutive. For both the three and six months ended June 30, 2024, we excluded million of outstanding stock options, respectively, from the computation of diluted earnings per share because the effect would have been antidilutive.

For the three and six months ended June 30, 2025, we repurchased million and million shares of Caterpillar common stock, respectively, at an aggregate cost of $ billion and $ billion, respectively. For the three and six months ended June 30, 2024, we repurchased million and million shares of Caterpillar common stock, respectively, at an aggregate cost of $ billion and $ billion, respectively. We made these purchases through the combination of accelerated share repurchase (ASR) agreements with third-party financial institutions and open market transactions in 2025 and 2024.

In the first quarter of 2025, we entered into ASR agreements to repurchase an aggregate of $ billion of common stock. We advanced the $ billion and received approximately million shares of Caterpillar common stock, approximately % of the estimated final number of shares to be repurchased, with a value of $ billion. The final number of shares to ultimately be repurchased will be based on the average of the daily volume-weighted average prices of our common stock during the term of the ASR agreements, less a discount and subject to adjustments pursuant to the terms and conditions of the ASR agreements. The final settlement of the ASR agreements is scheduled to occur during the fourth quarter of 2025. The remaining $ billion was evaluated as unsettled forward contracts and was classified as a reduction to Common stock within the Consolidated Statement of Financial Position.

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13.

)$()$()$()Gains (losses) on foreign currency translation () ()Less: Tax provision (benefit) Net gains (losses) on foreign currency translation () ()(Gains) losses reclassified to earnings Less: Tax provision (benefit) Net (gains) losses reclassified to earnings Other comprehensive income (loss), net of tax () ()Ending balance$()$()$()$()Pension and other postretirement benefitsBeginning balance$()$()$()$()Current year prior service credit (cost) Less: Tax provision (benefit) Net current year prior service credit (cost) Amortization of prior service (credit) cost()()()()Less: Tax provision (benefit) () ()Net amortization of prior service (credit) cost()()()()Other comprehensive income (loss), net of tax()()()()Ending balance$()$()$()$()Derivative financial instrumentsBeginning balance$ $ $()$ Gains (losses) deferred () Less: Tax provision (benefit) () Net gains (losses) deferred () (Gains) losses reclassified to earnings()()()()Less: Tax provision (benefit)()()()()Net (gains) losses reclassified to earnings()()()()Other comprehensive income (loss), net of tax () ()Ending balance$ $ $ $ Available-for-sale securitiesBeginning balance$()$()$()$()Gains (losses) deferred () ()Less: Tax provision (benefit) ()Net gains (losses) deferred () ()(Gains) losses reclassified to earnings Less: Tax provision (benefit) Net (gains) losses reclassified to earnings Other comprehensive income (loss), net of tax () ()Ending balance$()$()$()$()

Total AOCI ending balance at June 30,

$()$()$()$()

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14.

15.

percent compared to percent for the three months ended June 30, 2024 which was negatively impacted by losses for the divestiture of non-U.S. entities with no related tax benefit. The effective tax rate for the six months ended June 30, 2025 was percent compared to percent for the six months ended June 30, 2024.

On July 4, 2025, U.S. tax legislation was enacted containing a number of corporate tax provisions including reinstatement of 100 percent bonus depreciation and full expensing of U.S. research and development expenditures. This change in tax law will be accounted for in the period of enactment. We are evaluating the impact of this legislation and do not currently expect this change to have a material impact on our 2025 effective tax rate.

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16.

Group Presidents, a Chief Financial Officer (CFO), a Chief Legal Officer and General Counsel and a Chief Human Resources Officer. The Group Presidents and CFO are accountable for a related set of end-to-end businesses that they manage. The Chief Legal Officer and General Counsel leads the Law, Security and Public Policy Division. The Chief Human Resources Officer leads the Human Resources Organization. The CEO allocates resources and manages performance at the Group President/CFO level. As such, the CEO serves as our Chief Operating Decision Maker (CODM), and operating segments are primarily based on the Group President/CFO reporting structure.

of our operating segments, Construction Industries, Resource Industries and Energy & Transportation are led by Group Presidents. operating segment, Financial Products, is led by the CFO who also has responsibility for Corporate Services. Corporate Services is a cost center primarily responsible for the performance of certain support functions globally and to provide centralized services; it does not meet the definition of an operating segment. Group President leads smaller operating segment that is included in the All Other Segment. The Law, Security and Public Policy Division and the Human Resources Organization are cost centers and do not meet the definition of an operating segment.

B. Description of segments

We have operating segments, of which are reportable segments. Following is a brief description of our reportable segments and the business activities included in the All Other Segment:

Construction Industries: A segment primarily responsible for supporting customers using machinery in infrastructure and building construction applications. Responsibilities include business strategy, product design, product management and development, manufacturing, marketing and sales and product support. The product portfolio includes asphalt pavers; backhoe loaders; cold planers; compactors; compact track loaders; forestry machines; material handlers; motor graders; pipelayers; road reclaimers; skid steer loaders; telehandlers; track-type loaders; track-type tractors (small, medium); track excavators (mini, small, medium, large); wheel excavators; wheel loaders (compact, small, medium); and related parts and work tools. Inter-segment sales are a source of revenue for this segment.

Resource Industries: A segment primarily responsible for supporting customers using machinery in mining, heavy construction and quarry and aggregates. Responsibilities include business strategy, product design, product management and development, manufacturing, marketing and sales and product support. The product portfolio includes large track-type tractors; large mining trucks; hard rock vehicles; electric rope shovels; draglines; hydraulic shovels; rotary drills; large wheel loaders; off-highway trucks; articulated trucks; wheel tractor scrapers; wheel dozers; landfill compactors; soil compactors; wide-body trucks; select work tools; machinery components; electronics and control systems and related parts. In addition to equipment, Resource Industries also develops and sells technology products and services to provide customers fleet management, equipment management analytics, autonomous machine capabilities, safety services and mining performance solutions. Resource Industries also manages areas that provide services to other parts of the company, including strategic procurement, lean center of excellence, integrated manufacturing, research and development for hydraulic systems, automation, electronics and software for Caterpillar machines and engines. Inter-segment sales are a source of revenue for this segment.

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-year useful life. This methodology difference only impacts segment assets. We do not include goodwill amortization expense in segment profit. In addition, we have allocated to segments only a portion of goodwill for certain acquisitions made in 2011 or later.

•We generally manage currency exposures for operating segments, other than Financial Products, at the corporate level and do not include in segment profit or segment assets the effects of changes in exchange rates on results of operations and financial position within the year. We report the net difference created in the translation of revenues and costs between exchange rates used for U.S. GAAP reporting and exchange rates used for segment reporting as a methodology difference.

•We do not include stock-based compensation expense in segment profit.

•Postretirement benefit expenses are split; segments are generally responsible for service costs, with the remaining elements of net periodic benefit cost included as a methodology difference.

Reconciling items are created based on accounting differences between segment reporting and our consolidated external reporting. Please refer to pages 33-35 for financial information regarding significant reconciling items. Most of our reconciling items are self-explanatory given the above explanations. For the reconciliation of profit, we have grouped the reconciling items as follows:

•Corporate costs: These costs are related to corporate requirements primarily for compliance and legal functions for the benefit of the entire organization.

•Restructuring income/costs: May include costs for employee separation, long-lived asset impairments, contract terminations and (gains)/losses on divestitures. These costs are included in Other operating (income) expenses except for defined-benefit plan curtailment losses and special termination benefits, which are included in Other income (expense). Restructuring costs also include other exit-related costs, which may consist of accelerated depreciation, inventory write-downs, building demolition, equipment relocation and project management costs and LIFO inventory decrement benefits from inventory liquidations at closed facilities, all of which are primarily included in Cost of goods sold. See Note 20 for more information.

•Methodology differences: See previous discussion of significant accounting differences between segment reporting and consolidated external reporting.

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$ $ $ $ $ $ Resource Industries Energy & Transportation Financial Products Segment

Total sales and revenues from reportable segments All Other Segment Corporate Items and Eliminations()()()()()()()Total Sales and Revenues$ $ $ $ $ $— $ Three Months Ended June 30, 2024 Construction Industries$ $ $ $ $ $ $ Resource Industries Energy & Transportation Financial Products Segment

Total sales and revenues from reportable segments All Other Segment Corporate Items and Eliminations()()()()()()()Total Sales and Revenues$ $ $ $ $ $— $

1 Includes revenues from Construction Industries, Resource Industries, Energy & Transportation and All Other Segment of $ million and $ million in the three months ended June 30, 2025 and 2024, respectively.



Sales and Revenues by Geographic Region
(Millions of dollars)	North America	Latin America	EAME	Asia/ Pacific	External Sales and Revenues		Intersegment Sales and Revenues		Total Sales and Revenues
Six Months Ended June 30, 2025
Construction Industries	$	$	$	$	$		$		$
Resource Industries
Energy & Transportation
Financial Products Segment						1
Total sales and revenues from reportable segments
All Other Segment
Corporate Items and Eliminations	()	()	()	()	()		()		()
Total Sales and Revenues	$	$	$	$	$		$	—	$

Six Months Ended June 30, 2024
Construction Industries	$	$	$	$	$		$		$
Resource Industries
Energy & Transportation
Financial Products Segment						1
Total sales and revenues from reportable segments
All Other Segment		()
Corporate Items and Eliminations	()	()	()	()	()		()		()
Total Sales and Revenues	$	$	$	$	$		$	—	$

1 Includes revenues from Construction Industries, Resource Industries, Energy & Transportation and All Other Segment of $ million and $ million in the six months ended June 30, 2025 and 2024, respectively.

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$ $ $ Power generation Industrial Transportation Energy & Transportation External Sales$ $ $ $

$ $ $ $

Less 1:

Cost of goods sold

SG&A/R&D 2

Other segment items 3

() Segment Profit$ $ $ $ $ Three Months Ended June 30, 2024Sales and revenues$ $ $ $ $

Less 1:

Cost of goods sold

SG&A/R&D 2

Other segment items 3

() Segment Profit$ $ $ $ $

1 The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Inter-segment income/expenses are included within the amounts shown.

2 Includes selling, general and administrative (SG&A) and research and development (R&D) expenses. The combined presentation aligns with the segment-level information that is regularly provided to the CODM.

3 Other segment items for each reportable segment primarily includes:

Construction Industries / Resource Industries / Energy & Transportation – other operating (income) expenses, currency impacts defined as a methodology difference between exchange rates used in U.S. GAAP and segment reporting, and equity in (profit) loss of unconsolidated affiliated companies.

Financial Products Segment – interest expense, Cat Financial’s depreciation on equipment leased to others, Insurance Services’ underwriting expenses and investment and interest income, and foreign exchange (gains) losses.

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$ $ $ $

Less 1:

Cost of goods sold

SG&A/R&D 2

Other segment items 3

()() Segment Profit$ $ $ $ $ Six Months Ended June 30, 2024Sales and revenues$ $ $ $ $

Less 1:

Cost of goods sold

SG&A/R&D 2

Other segment items 3

() Segment Profit$ $ $ $ $

1 The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Inter-segment income/expenses are included within the amounts shown.

3 Other segment items for each reportable segment primarily includes:

$ $ $ Profit (loss) from All Other Segment() () Cost centers()()() Corporate costs()()()()Timing() () Restructuring income (costs)()()()()Methodology differences:Inventory/cost of sales() () Postretirement benefit expense() ()()Stock-based compensation expense()()()()Financing costs()()()()Currency() () Other income/expense methodology differences()()()()Other methodology differences()()()()Total consolidated profit before taxes$ $ $ $

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$ Resource Industries Energy & Transportation Financial Products Segment Total assets from reportable segments Assets from All Other Segment Items not included in segment assets: Cash and cash equivalents Deferred income taxes Goodwill and intangible assets Property, plant and equipment – net and other assets Inventory methodology differences()()Liabilities included in segment assets Other()()Total assets$ $

$ $ $ Resource Industries Energy & Transportation Financial Products Segment Total depreciation and amortization from reportable segments Items not included in segment depreciation and amortization:All Other Segment Cost centers Other ()()()Total depreciation and amortization$ $ $ $

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$ $ $ Resource Industries Energy & Transportation Financial Products Segment Total capital expenditures from reportable segments Items not included in segment capital expenditures:All Other Segment Cost centers Timing()() Other ()()()Total capital expenditures$ $ $ $

17.

months with an average remaining term of approximately months as of June 30, 2025.

Cat Financial typically maintains a security interest in financed equipment and generally requires physical damage insurance coverage on the financed equipment, both of which provide Cat Financial with certain rights and protections. If Cat Financial's collection efforts fail to bring a defaulted account current, Cat Financial generally can repossess the financed equipment, after satisfying local legal requirements, and sell it within the Caterpillar dealer network or through third-party auctions.

Cat Financial estimates the allowance for credit losses related to its customer finance receivables based on loss forecast models utilizing probabilities of default and the estimated loss given default based on past loss experience adjusted for current conditions and reasonable and supportable forecasts capturing country and industry-specific economic factors.

During the three and six months ended June 30, 2025, Cat Financial's forecasts reflected a continuation of the trend of historically low unemployment rates as well as global market uncertainty and continued actions by global central banks aimed at reducing inflation. Cat Financial believes the economic forecasts employed represent reasonable and supportable forecasts, followed by a reversion to long-term trends.

Dealer

Cat Financial provides financing to Caterpillar dealers in the form of wholesale financing plans and working capital loans. Cat Financial's wholesale financing plans provide financing to dealers for their primarily new Caterpillar equipment inventory and rental fleets on a secured and unsecured basis. In addition, Cat Financial provides a variety of secured and unsecured retail loans to Caterpillar dealers.

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$ $ $ $ $ Write-offs() ()() ()Recoveries

Provision for credit losses 1

Other () ()Ending balance$ $ $ $ $ $ Six Months Ended June 30, 2025Six Months Ended June 30, 2024CustomerDealerTotalCustomerDealerTotalBeginning balance$ $ $ $ $ $ Write-offs() ()()()()Recoveries

Provision for credit losses 1

Other () ()Ending balance$ $ $ $ $ $ Finance Receivables$ $ $ $ $ $

1 Excludes provision for credit losses on unfunded commitments and other miscellaneous receivables.

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$ $ $ $ $ $ $ EAME Asia/Pacific Latin America Total$ $ $ $ $ $ $ $ Three Months Ended June 30, 202420242023202220212020PriorRevolving
Finance
ReceivablesTotalNorth America$ $ $ $ $ $ $ $ EAME Asia/Pacific Latin America

Dealer

As of June 30, 2025 and December 31, 2024, Cat Financial's total amortized cost of finance receivables within the Dealer portfolio segment was current.

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days past due. Recognition is resumed and previously suspended income is recognized when collection is considered probable. Payments received while the finance receivable is on non-accrual status are applied to interest and principal in accordance with the contractual terms. Interest earned but uncollected prior to the receivable being placed on non-accrual status is written off through Provision for credit losses when, in the judgment of management, it is considered uncollectible.

There were finance receivables in Cat Financial's Dealer portfolio segment on non-accrual status as of June 30, 2025 and December 31, 2024.

Modifications

Cat Financial periodically modifies the terms of their finance receivable agreements. Typically, the types of modifications granted are payment deferrals, interest-only payment periods and/or term extensions. Many modifications Cat Financial grants are for commercial reasons or for borrowers experiencing some form of short-term financial stress and may result in insignificant payment delays. Cat Financial does not consider these borrowers to be experiencing financial difficulty. Modifications for borrowers Cat Financial does consider to be experiencing financial difficulty typically result in payment deferrals and/or reduced payments for a period of or longer, term extension of or longer or a combination of both.

During the three and six months ended June 30, 2025 and 2024, there were finance receivable modifications granted to borrowers experiencing financial difficulty in Cat Financial's Dealer portfolio segment.

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$ $ $ Modifications as a percentage of Customer portfolio % % % %

The financial effects of term extensions and payment delays for borrowers experiencing financial difficulty were as follows:


(In months)	Three Months Ended June 30,		Six Months Ended June 30,
	2025	2024	2025	2024
Weighted average extension to term of modified contracts
Weighted average payment deferral and/or interest only periods

After Cat Financial modifies a finance receivable, they continue to track its performance under its most recent modified terms. Defaults of loans modified in the prior twelve months were not significant during the three and six months ended June 30, 2025 and 2024.

The effect of most modifications made to finance receivables for borrowers experiencing financial difficulty is already included in the allowance for credit losses based on the methodologies used to estimate the allowance; therefore, a change to the allowance for credit losses is generally not recorded upon modification. On rare occasions when principal forgiveness is provided, the amount forgiven is written off against the allowance for credit losses.

18.

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See Note 5 for additional information.

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$ $ $ $ Other U.S. and non-U.S. government bonds Corporate debt securities Corporate bonds and other debt securities Asset-backed securities Mortgage-backed debt securities U.S. governmental agency Residential Commercial Total debt securities Equity securities Large capitalization value Smaller company growth REIT Total equity securities Derivative financial instruments - assetsForeign currency contracts - net Commodity contracts - net Total return swap contracts - net Total assets$ $ $ $ $ Liabilities Derivative financial instruments - liabilitiesInterest rate contracts - net$ $ $ $ $ Total liabilities$ $ $ $ $

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$ $ $ $ Other U.S. and non-U.S. government bonds Corporate debt securities Corporate bonds and other debt securities Asset-backed securities Mortgage-backed debt securities U.S. governmental agency Residential Commercial Total debt securities Equity securities Large capitalization value Smaller company growth REIT Total equity securities Derivative financial instruments - assetsForeign currency contracts - net Total assets$ $ $ $ $ Liabilities Derivative financial instruments - liabilitiesInterest rate contracts - net$ $ $ $ $ Commodity contracts - net Total return swap contracts - net Total liabilities$ $ $ $ $

In addition to the amounts above, certain Cat Financial loans are subject to measurement at fair value on a nonrecurring basis and are classified as Level 3 measurements. A loan is measured at fair value when management determines that collection of contractual amounts due is not probable and the loan is individually evaluated. Generally, the fair value of these receivables is measured using the fair value of collateral less estimated costs to sell. Cat Financial had loans carried at fair value of $ million and $ million as of June 30, 2025 and December 31, 2024, respectively.

B. Fair values of financial instruments

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$ $ $ 3Note 17

Wholesale inventory receivables – net (excluding finance leases 1)

3Liabilities

Long-term debt (including amounts due within one year)

Machinery, Energy & Transportation 2 Financial Products 2

1 Represents finance leases and failed sale leasebacks of $ million and $ million at June 30, 2025 and December 31, 2024, respectively.

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19.

$ $ $

Foreign exchange gains (losses) 1

() () License fee income Net periodic pension and OPEB income (cost), excluding service cost Gains (losses) on securities () Miscellaneous income (loss) () ()Total$ $ $ $

1 Includes gains (losses) from foreign exchange derivative contracts. See Note 5 for further details.

20.

$ $ $

Divestitures 1

Contract terminations 1

Long-lived asset impairments 1

Other 2

Total restructuring (income) costs$ $ $ $

1 Recognized in Other operating (income) expenses.

2 Represents costs related to our restructuring programs, primarily for inventory write-downs, project management, equipment relocation and accelerated depreciation, all of which are primarily included in Cost of goods sold.

The restructuring costs for the six months ended June 30, 2025 were related to restructuring actions across the company. The restructuring costs for the six months ended June 30, 2024 were primarily related to the divestitures of certain non-US entities.

In 2025 and 2024, all restructuring costs are excluded from segment profit.

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21.

- days, we negotiate with our suppliers is consistent, irrespective of whether a supplier participates in the Programs. The amount of obligations outstanding that are confirmed as valid to the participating financial institutions for suppliers who voluntarily participate in the Programs, included in Accounts payable in the Consolidated Statement of Financial Position, were $ million and $ million at June 30, 2025 and December 31, 2024, respectively.

22.

billion of % Senior Notes due 2035 and $ million % Senior Notes due 2055. Interest on each series of notes will be paid semi-annually on May 15 and November 15 of each year, commencing on November 15, 2025.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is intended to provide information that will assist the reader in understanding the company’s Consolidated Financial Statements, the changes in certain key items in those financial statements between select periods and the primary factors that accounted for those changes. In addition, we discuss how certain accounting principles, policies and critical estimates affect our Consolidated Financial Statements. Our discussion also contains certain forward-looking statements related to future events and expectations as well as a discussion of the many factors that we believe may have an impact on our business on an ongoing basis. This MD&A should be read in conjunction with our discussion of cautionary statements and significant risks to the company’s business under Part I, Item 1A. Risk Factors of the 2024 Form 10-K.

Highlights for the second quarter of 2025 include:

•Total sales and revenues for the second quarter of 2025 were $16.569 billion, a decrease of $120 million, or 1 percent, compared with $16.689 billion in the second quarter of 2024. In the three primary segments, sales were higher in Energy & Transportation and lower in Construction Industries and Resource Industries.

•Operating profit margin was 17.3 percent for the second quarter of 2025, compared with 20.9 percent for the second quarter of 2024. Adjusted operating profit margin was 17.6 percent for the second quarter of 2025, compared with 22.4 percent for the second quarter of 2024.

•Second-quarter 2025 profit per share was $4.62, and excluding the items in the table below, adjusted profit per share was $4.72. Second-quarter 2024 profit per share was $5.48, and excluding the items in the table below, adjusted profit per share was $5.99.

•Caterpillar ended the second quarter of 2025 with $5.4 billion of enterprise cash.

Highlights for the six months ended June 30, 2025 include:

•Total sales and revenues were $30.818 billion for the six months ended June 30, 2025, a decrease of $1.670 billion, or 5 percent, compared with $32.488 billion for the six months ended June 30, 2024.

•Operating profit margin was 17.6 percent for the six months ended June 30, 2025, compared with 21.5 percent for the six months ended June 30, 2024. Adjusted operating profit margin was 17.9 percent for the six months ended June 30, 2025, compared with 22.3 percent for the six months ended June 30, 2024.

•Profit per share for the six months ended June 30, 2025, was $8.82, and excluding the items in the table below, adjusted profit per share was $8.97. Profit per share for the six months ended June 30, 2024, was $11.23, and excluding the items in the table below, adjusted profit per share was $11.59.

•Enterprise operating cash flow was $4.4 billion for the six months ended June 30, 2025.

In order for our results to be more meaningful to our readers, we have separately quantified the impact of several significant items.



	Three Months Ended June 30, 2025					Three Months Ended June 30, 2024				Six Months Ended June 30, 2025				Six Months Ended June 30, 2024
(Dollars in millions except per share data)	Profit Before Taxes			Profit Per Share		Profit Before Taxes		Profit Per Share		Profit Before Taxes		Profit Per Share		Profit Before Taxes		Profit Per Share
Profit	$	2,818		$	4.62	$	3,500	$	5.48	$	5,388	$	8.82	$	7,032	$	11.23
Other restructuring (income) costs	56			0.10		30		0.04		89		0.15		88		0.14
Restructuring (income) costs - divestitures of certain non-U.S. entities	—			—		228		0.47		—		—		164		0.22

2,179			$	4.62

		0.10

		0.04


4,182			$	8.82

		0.15


		0.14

%% %%3,862 $4,573 (841)2,575 $3,732

1 See reconciliation of ME&T net cash provided by operating activities to consolidated net cash provided by operating activities on pages 76-77.

Supplemental Consolidating Data

We are providing supplemental consolidating data for the purpose of additional analysis. The data has been grouped as follows:

Consolidated – Caterpillar Inc. and its subsidiaries.

Machinery, Energy & Transportation – We define ME&T as it is presented in the supplemental data as Caterpillar Inc. and its subsidiaries, excluding Financial Products. ME&T’s information relates to the design, manufacturing and marketing of our products.

Financial Products – We define Financial Products as it is presented in the supplemental data as our 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 ME&T and Financial Products.

The nature of the ME&T 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. We believe this presentation will assist readers in understanding our business.

Pages 70-77 reconcile ME&T and Financial Products to Caterpillar Inc. consolidated financial information.

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Caterpillar Inc.

Supplemental Data for Results of Operations

For the Three Months Ended June 30, 2025

(Unaudited)

(Millions of dollars)


			Supplemental Consolidating Data
	Consolidated		Machinery, Energy & Transportation		Financial Products		Consolidating Adjustments
Sales and revenues:
Sales of Machinery, Energy & Transportation	$	15,674	$	15,674	$	—	$	—
Revenues of Financial Products	895		—		1,081		(186)		1
Total sales and revenues	16,569		15,674		1,081		(186)

Operating costs:
Cost of goods sold	10,807		10,809		—		(2)		2
Selling, general and administrative expenses	1,694		1,497		209		(12)		2
Research and development expenses	551		551		—		—
Interest expense of Financial Products	336		—		342		(6)		2
Other operating (income) expenses	321		22		318		(19)		2
Total operating costs	13,709		12,879		869		(39)

Operating profit	2,860		2,795		212		(147)

Interest expense excluding Financial Products	126		130		—		(4)		3
Other income (expense)	84		(101)		42		143		4

Consolidated profit before taxes	2,818		2,564		254		—

Provision (benefit) for income taxes	646		585		61		—
Profit of consolidated companies	2,172		1,979		193		—

Equity in profit (loss) of unconsolidated affiliated companies	7		7		—		—


Profit of consolidated and affiliated companies	2,179		1,986		193		—

Less: Profit (loss) attributable to noncontrolling interests	—		(1)		1		—

Profit 5	$	2,179	$	1,987	$	192	$	—

1Elimination of Financial Products’ revenues earned from ME&T.

2Elimination of net expenses recorded between ME&T and Financial Products.

3Elimination of interest expense recorded between Financial Products and ME&T.

4Elimination of discount recorded by ME&T on receivables sold to Financial Products and of interest earned between ME&T and Financial Products as well as dividends paid by Financial Products to ME&T.

5Profit attributable to common shareholders.

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Caterpillar Inc.

Supplemental Data for Results of Operations

For the Six Months Ended June 30, 2025

(Unaudited)

(Millions of dollars)


			Supplemental Consolidating Data
	Consolidated		Machinery, Energy & Transportation		Financial Products		Consolidating Adjustments
Sales and revenues:
Sales of Machinery, Energy & Transportation	$	29,052	$	29,052	$	—	$	—
Revenues of Financial Products	1,766		—		2,129		(363)		1
Total sales and revenues	30,818		29,052		2,129		(363)

Operating costs:
Cost of goods sold	19,772		19,776		—		(4)		2
Selling, general and administrative expenses	3,287		2,905		405		(23)		2
Research and development expenses	1,031		1,031		—		—
Interest expense of Financial Products	662		—		668		(6)		2
Other operating (income) expenses	627		30		643		(46)		2
Total operating costs	25,379		23,742		1,716		(79)

Operating profit	5,439		5,310		413		(284)

Interest expense excluding Financial Products	242		249		—		(7)		3
Other income (expense)	191		(146)		60		277		4

Consolidated profit before taxes	5,388		4,915		473		—

Provision (benefit) for income taxes	1,220		1,105		115		—
Profit of consolidated companies	4,168		3,810		358		—

Equity in profit (loss) of unconsolidated affiliated companies	14		14		—		—


Profit of consolidated and affiliated companies	4,182		3,824		358		—

Less: Profit (loss) attributable to noncontrolling interests	—		(1)		1		—

Profit 5	$	4,182	$	3,825	$	357	$	—

1Elimination of Financial Products’ revenues earned from ME&T.

2Elimination of net expenses recorded between ME&T and Financial Products.

3Elimination of interest expense recorded between Financial Products and ME&T.

4Elimination of discount recorded by ME&T on receivables sold to Financial Products and of interest earned between ME&T and Financial Products as well as dividends paid by Financial Products to ME&T.

5Profit attributable to common shareholders.

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Caterpillar Inc.

Supplemental Data for Results of Operations

For the Three Months Ended June 30, 2024

(Unaudited)

(Millions of dollars)


			Supplemental Consolidating Data
	Consolidated		Machinery, Energy & Transportation		Financial Products		Consolidating Adjustments
Sales and revenues:
Sales of Machinery, Energy & Transportation	$	15,840	$	15,840	$	—	$	—
Revenues of Financial Products	849		—		1,043		(194)		1
Total sales and revenues	16,689		15,840		1,043		(194)

Operating costs:
Cost of goods sold	10,150		10,152		—		(2)		2
Selling, general and administrative expenses	1,652		1,449		185		18		2
Research and development expenses	535		535		—		—
Interest expense of Financial Products	314		—		314		—
Other operating (income) expenses	556		43		560		(47)		2
Total operating costs	13,207		12,179		1,059		(31)

Operating profit	3,482		3,661		(16)		(163)

Interest expense excluding Financial Products	137		137		—		—
Other income (expense)	155		(21)		13		163		3

Consolidated profit before taxes	3,500		3,503		(3)		—

Provision (benefit) for income taxes	836		786		50		—
Profit of consolidated companies	2,664		2,717		(53)		—

Equity in profit (loss) of unconsolidated affiliated companies	17		17		—		—


Profit of consolidated and affiliated companies	2,681		2,734		(53)		—

Less: Profit (loss) attributable to noncontrolling interests	—		—		—		—

Profit 4	$	2,681	$	2,734	$	(53)	$	—

1Elimination of Financial Products’ revenues earned from ME&T.

2Elimination of net expenses recorded by ME&T paid to Financial Products.

3Elimination of discount recorded by ME&T on receivables sold to Financial Products and of interest earned between ME&T and Financial Products as well as dividends paid by Financial Products to ME&T.

4Profit attributable to common shareholders.

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Caterpillar Inc.

Supplemental Data for Results of Operations

For the Six Months Ended June 30, 2024

(Unaudited)

(Millions of dollars)


			Supplemental Consolidating Data
	Consolidated		Machinery, Energy & Transportation		Financial Products		Consolidating Adjustments
Sales and revenues:
Sales of Machinery, Energy & Transportation	$	30,800	$	30,800	$	—	$	—
Revenues of Financial Products	1,688		—		2,072		(384)		1
Total sales and revenues	32,488		30,800		2,072		(384)

Operating costs:
Cost of goods sold	19,812		19,816		—		(4)		2
Selling, general and administrative expenses	3,229		2,862		363		4		2
Research and development expenses	1,055		1,055		—		—
Interest expense of Financial Products	612		—		612		—
Other operating (income) expenses	779		2		845		(68)		2
Total operating costs	25,487		23,735		1,820		(68)

Operating profit	7,001		7,065		252		(316)

Interest expense excluding Financial Products	280		280		—		—
Other income (expense)	311		(41)		36		316		3

Consolidated profit before taxes	7,032		6,744		288		—

Provision (benefit) for income taxes	1,524		1,401		123		—
Profit of consolidated companies	5,508		5,343		165		—

Equity in profit (loss) of unconsolidated affiliated companies	27		27		—		—


Profit of consolidated and affiliated companies	5,535		5,370		165		—

Less: Profit (loss) attributable to noncontrolling interests	(2)		(3)		1		—

Profit 4	$	5,537	$	5,373	$	164	$	—

1Elimination of Financial Products’ revenues earned from ME&T.

2Elimination of net expenses recorded between ME&T and Financial Products.

3Elimination of discount recorded by ME&T on receivables sold to Financial Products and of interest earned between ME&T and Financial Products as well as dividends paid by Financial Products to ME&T.

4Profit attributable to common shareholders.

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Caterpillar Inc.

Supplemental Data for Financial Position

At June 30, 2025

(Unaudited)

(Millions of dollars)


			Supplemental Consolidating Data
	Consolidated		Machinery, Energy & Transportation		Financial Products		Consolidating Adjustments
Assets
Current assets:
Cash and cash equivalents	$	5,442	$	4,428	$	1,014	$	—
Receivables – trade and other	9,704		3,605		527		5,572		1,2
Receivables – finance	10,147		—		15,946		(5,799)		2

Prepaid expenses and other current assets	2,867		2,680		401		(214)		3
Inventories	18,595		18,595		—		—
Total current assets	46,755		29,308		17,888		(441)

Property, plant and equipment – net	13,896		10,035		3,861		—
Long-term receivables – trade and other	1,607		1,619		308		(320)		1,2
Long-term receivables – finance	13,835		—		14,708		(873)		2

Noncurrent deferred and refundable income taxes	3,427		3,680		131		(384)		4
Intangible assets	321		321		—		—
Goodwill	5,331		5,331		—		—
Other assets	5,153		3,747		2,420		(1,014)		5
Total assets	$	90,325	$	54,041	$	39,316	$	(3,032)

Liabilities
Current liabilities:
Short-term borrowings	$	4,485	$	—	$	4,485	$	—

Accounts payable	8,563		8,515		294		(246)		6,7
Accrued expenses	5,207		4,374		833		—
Accrued wages, salaries and employee benefits	1,618		1,580		38		—
Customer advances	3,412		3,387		3		22		7
Dividends payable	707		707		—		—
Other current liabilities	2,627		2,091		768		(232)		4,5,8
Long-term debt due within one year	8,315		30		8,285		—
Total current liabilities	34,934		20,684		14,706		(456)

Long-term debt due after one year	27,948		10,850		18,294		(1,196)		7,9
Liability for postemployment benefits	3,611		3,611		—		—
Other liabilities	5,169		4,199		1,376		(406)		4,5
Total liabilities	71,662		39,344		34,376		(2,058)
Commitments and contingencies
Shareholders’ equity
Common stock	6,143		6,143		905		(905)		10
Treasury stock	(47,958)		(47,958)		—		—
Profit employed in the business	62,160		57,238		4,912		10		10
Accumulated other comprehensive income (loss)	(1,684)		(731)		(953)		—
Noncontrolling interests	2		5		76		(79)		10
Total shareholders’ equity	18,663		14,697		4,940		(974)
Total liabilities and shareholders’ equity	$	90,325	$	54,041	$	39,316	$	(3,032)

1 Elimination of receivables between ME&T and Financial Products.

2 Reclassification of ME&T’s trade receivables purchased by Financial Products and Financial Products’ wholesale inventory receivables.

3 Elimination of ME&T’s insurance premiums that are prepaid to Financial Products.

4 Reclassification reflecting required netting of deferred tax assets/liabilities by taxing jurisdiction.

5 Elimination of other intercompany assets and liabilities between ME&T and Financial Products.

6 Elimination of payables between ME&T and Financial Products.

7 Reclassification of Financial Products' payables to customer advances.

8 Elimination of prepaid insurance in Financial Products’ other liabilities.

9 Elimination of debt between ME&T and Financial Products.

10 Eliminations associated with ME&T’s investments in Financial Products’ subsidiaries.

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Caterpillar Inc.

Supplemental Data for Financial Position

At December 31, 2024

(Unaudited)

(Millions of dollars)


			Supplemental Consolidating Data
	Consolidated		Machinery, Energy & Transportation		Financial Products		Consolidating Adjustments
Assets
Current assets:
Cash and cash equivalents	$	6,889	$	6,165	$	724	$	—
Receivables – trade and other	9,282		3,463		688		5,131		1,2
Receivables – finance	9,565		—		14,957		(5,392)		2

Prepaid expenses and other current assets	3,119		2,872		401		(154)		3
Inventories	16,827		16,827		—		—
Total current assets	45,682		29,327		16,770		(415)

Property, plant and equipment – net	13,361		9,531		3,830		—
Long-term receivables – trade and other	1,225		500		86		639		1,2
Long-term receivables – finance	13,242		—		14,048		(806)		2


Noncurrent deferred and refundable income taxes	3,312		3,594		118		(400)		4
Intangible assets	399		399		—		—
Goodwill	5,241		5,241		—		—
Other assets	5,302		4,050		2,277		(1,025)		5
Total assets	$	87,764	$	52,642	$	37,129	$	(2,007)

Liabilities
Current liabilities:
Short-term borrowings	$	4,393	$	—	$	4,393	$	—

Accounts payable	7,675		7,619		331		(275)		6,7
Accrued expenses	5,243		4,589		654		—
Accrued wages, salaries and employee benefits	2,391		2,335		56		—
Customer advances	2,322		2,305		3		14		7
Dividends payable	674		674		—		—
Other current liabilities	2,909		2,388		696		(175)		4,8
Long-term debt due within one year	6,665		46		6,619		—
Total current liabilities	32,272		19,956		12,752		(436)

Long-term debt due after one year	27,351		8,731		18,787		(167)		9
Liability for postemployment benefits	3,757		3,757		—		—
Other liabilities	4,890		3,977		1,344		(431)		4
Total liabilities	68,270		36,421		32,883		(1,034)
Commitments and contingencies
Shareholders’ equity
Common stock	6,941		6,941		905		(905)		10
Treasury stock	(44,331)		(44,331)		—		—
Profit employed in the business	59,352		54,787		4,555		10		10
Accumulated other comprehensive income (loss)	(2,471)		(1,182)		(1,289)		—
Noncontrolling interests	3		6		75		(78)		10
Total shareholders’ equity	19,494		16,221		4,246		(973)
Total liabilities and shareholders’ equity	$	87,764	$	52,642	$	37,129	$	(2,007)

1 Elimination of receivables between ME&T and Financial Products.

2 Reclassification of ME&T’s trade receivables purchased by Financial Products and Financial Products’ wholesale inventory receivables.

3 Elimination of ME&T’s insurance premiums that are prepaid to Financial Products.

4 Reclassification reflecting required netting of deferred tax assets/liabilities by taxing jurisdiction.

5 Elimination of other intercompany assets between ME&T and Financial Products.

6 Elimination of payables between ME&T and Financial Products.

7 Reclassification of Financial Products' payables to customer advances.

8 Elimination of prepaid insurance in Financial Products' other liabilities.

9 Elimination of debt between ME&T and Financial Products.

10 Eliminations associated with ME&T’s investments in Financial Products’ subsidiaries.

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Caterpillar Inc.

Supplemental Data for Cash Flow

For the Six Months Ended June 30, 2025

(Unaudited)

(Millions of dollars)


			Supplemental Consolidating Data
	Consolidated		Machinery, Energy & Transportation		Financial Products		Consolidating Adjustments
Cash 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 amortization	1,094		716		378		—



Provision (benefit) for deferred income taxes	(110)		(88)		(22)		—

Other	398		357		(286)		327		1
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables – trade and other	(319)		90		5		(414)		1,2
Inventories	(1,639)		(1,639)		—		—
Accounts payable	973		930		6		37		1
Accrued expenses	(12)		(64)		52		—
Accrued wages, salaries and employee benefits	(805)		(786)		(19)		—
Customer advances	1,276		1,276		—		—
Other assets – net	(90)		(133)		(3)		46		1
Other liabilities – net	(537)		(621)		128		(44)		1
Net cash provided by (used for) operating activities	4,411		3,862		597		(48)

Cash flow from investing activities:
Capital expenditures – excluding equipment leased to others	(1,265)		(1,273)		(22)		30		1
Expenditures for equipment leased to others	(608)		(14)		(597)		3		1
Proceeds from disposals of leased assets and property, plant and equipment	365		36		362		(33)		1
Additions to finance receivables	(7,064)		—		(8,084)		1,020		2
Collections of finance receivables	6,399		—		7,278		(879)		2
Net intercompany purchased receivables	—		—		93		(93)		2
Proceeds from sale of finance receivables	18		—		18		—
Additions to intercompany receivables (original maturities greater than three months)	—		(1,000)		—		1,000		3
Collections of intercompany receivables (original maturities greater than three months)	—		—		35		(35)		3

Investments and acquisitions (net of cash acquired)	(21)		(21)		—		—
Proceeds from sale of businesses and investments (net of cash sold)	12		12		—		—
Proceeds from maturities and sale of securities	1,328		1,026		302		—
Investments in securities	(618)		(278)		(340)		—
Other – net	(53)		(18)		(35)		—
Net cash provided by (used for) investing activities	(1,507)		(1,530)		(990)		1,013

Cash flow from financing activities:
Dividends paid	(1,336)		(1,336)		—		—
Common stock issued, including treasury shares reissued	(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)		3
Payments on intercompany borrowings (original maturities greater than three months)	—		(35)		—		35		3

Proceeds from debt issued (original maturities greater than three months)	5,707		1,976		3,731		—
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 period	6,896		6,170		726		—
Cash, cash equivalents and restricted cash at end of period	$	5,448	$	4,431	$	1,017	$	—

1 Elimination of non-cash adjustments and changes in assets and liabilities related to consolidated reporting.

2 Reclassification of Financial Products’ cash flow activity from investing to operating for receivables that arose from the sale of inventory.

3 Elimination of proceeds and payments to/from ME&T and Financial Products.

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Caterpillar Inc.

Supplemental Data for Cash Flow

For the Six Months Ended June 30, 2024

(Unaudited)

(Millions of dollars)


			Supplemental Consolidating Data
	Consolidated		Machinery, Energy & Transportation		Financial Products		Consolidating Adjustments
Cash flow from operating activities:
Profit of consolidated and affiliated companies	$	5,535	$	5,370	$	165	$	—
Adjustments to reconcile profit to net cash provided by operating activities:
Depreciation and amortization	1,055		662		393		—


Provision (benefit) for deferred income taxes	(133)		(81)		(52)		—
(Gain) loss on divestiture	164		(46)		210		—
Other	105		104		(280)		281		1
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables – trade and other	(245)		195		96		(536)		1.2
Inventories	(643)		(638)		—		(5)		1
Accounts payable	(21)		6		(58)		31		1
Accrued expenses	69		(41)		110		—
Accrued wages, salaries and employee benefits	(1,056)		(1,035)		(21)		—
Customer advances	341		341		—		—
Other assets – net	20		(108)		5		123		1
Other liabilities – net	(118)		(156)		147		(109)		1
Net cash provided by (used for) operating activities	5,073		4,573		715		(215)

Cash flow from investing activities:
Capital expenditures – excluding equipment leased to others	(841)		(831)		(13)		3		1
Expenditures for equipment leased to others	(614)		(10)		(612)		8		1
Proceeds from disposals of leased assets and property, plant and equipment	342		13		335		(6)		1
Additions to finance receivables	(7,446)		—		(7,951)		505		2
Collections of finance receivables	6,743		—		7,176		(433)		2
Net intercompany purchased receivables	—		—		(138)		138		2
Proceeds from sale of finance receivables	37		—		37		—
Net intercompany borrowings	—		—		9		(9)		3
Investments and acquisitions (net of cash acquired)	(32)		(32)		—		—
Proceeds from sale of businesses and investments (net of cash sold)	(61)		92		(153)		—
Proceeds from maturities and sale of securities	2,574		2,402		172		—
Investments in securities	(523)		(300)		(223)		—
Other – net	57		47		10		—
Net cash provided by (used for) investing activities	236		1,381		(1,351)		206

Cash flow from financing activities:
Dividends paid	(1,283)		(1,283)		—		—
Common stock issued, including treasury shares reissued	8		8		—		—
Payments to purchase common stock	(6,275)		(6,275)		—		—

Net intercompany borrowings	—		(9)		—		9		3
Proceeds from debt issued (original maturities greater than three months)	4,151		—		4,151		—
Payments on debt (original maturities greater than three months)	(5,217)		(1,014)		(4,203)		—
Short-term borrowings – net (original maturities three months or less)	687		—		687		—

Net cash provided by (used for) financing activities	(7,929)		(8,573)		635		9
Effect of exchange rate changes on cash	(17)		(7)		(10)		—
Increase (decrease) in cash, cash equivalents and restricted cash	(2,637)		(2,626)		(11)		—
Cash, cash equivalents and restricted cash at beginning of period	6,985		6,111		874		—
Cash, cash equivalents and restricted cash at end of period	$	4,348	$	3,485	$	863	$	—

1 Elimination of non-cash adjustments and changes in assets and liabilities related to consolidated reporting.

2 Reclassification of Financial Products’ cash flow activity from investing to operating for receivables that arose from the sale of inventory.

3 Elimination of net proceeds and payments to/from ME&T and Financial Products.

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Forward-looking Statements

Certain statements in this Form 10-Q 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 under the section entitled "Part I - Item 1A. Risk Factors" of Caterpillar's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as such factors may be updated from time to time in Caterpillar's periodic filings with the Securities and Exchange Commission.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

The information required by this Item is incorporated by reference from Note 5 – “Derivative financial instruments and risk management” included in Part I, Item 1 and Management’s Discussion and Analysis included in Part I, Item 2 of this Form 10-Q.

Item 4. Controls and Procedures

Evaluation of disclosure controls and procedures

An evaluation was performed under the supervision and with the participation of the company’s management, including the Chief Executive Officer (CEO) and Chief Financial Officer (CFO), of the effectiveness of the design and operation of the company’s disclosure controls and procedures, as that term is defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended, as of the end of the period covered by this quarterly report. Based on that evaluation, the CEO and CFO concluded that the company’s disclosure controls and procedures were effective as of the end of the period covered by this quarterly report.

Changes in internal control over financial reporting

During the second quarter of 2025, there has been no change in the company’s internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

The information required by this Item is incorporated by reference from Note 14 – “Environmental and legal matters” included in Part I, Item 1 of this Form 10-Q.

Item 1A. Risk Factors

There have been no material changes to the risk factors we previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2024.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchases of Equity Securities


Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Program	Approximate Dollar Value of Shares that May Yet be Purchased under the Program (in billions)1
April 1-30, 2025	1,790,132	$	295.04	1,790,132	$	15.940
May 1-31, 2025	543,069	$	331.42	543,069	$	15.760
June 1-30, 2025	332,974	$	360.36	332,974	$	15.640
Total	2,666,175	$	310.61	2,666,175

1 In May 2022, the Board approved a share repurchase authorization (the 2022 Authorization) of up to $15.0 billion of Caterpillar common stock effective August 1, 2022, with no expiration. In June 2024, the Board approved an additional share repurchase authorization (the 2024 Authorization) of up to $20.0 billion of Caterpillar common stock, effective June 12, 2024, with no expiration. As of March 31,2025, the 2022 Authorization was fully utilized and as of June 30,2025, approximately $15.6 billion remained available under the 2024 Authorization.

Non-U.S. Employee Stock Purchase Plans

As of June 30, 2025, we had 38 employee stock purchase plans (the “EIP Plans”) that are administered outside the United States for our non-U.S. employees, which had approximately 17,000 active participants in the aggregate. During the second quarter of 2025, approximately 58,000 shares of Caterpillar common stock were purchased by the EIP Plans pursuant to the terms of such plans.

Item 5. Other Information

, , of the Company, into a Rule 10b5-1 sales plan intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Securities Exchange Act of 1934, as amended. The sales plan will be in effect until the earlier of (1) and (2) the date on which an aggregate of shares of our common stock have been sold under the plan.

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Item 6. Exhibits



4.1						Form of 5.200% Senior Note due 2035 (incorporated by reference from Exhibit 4.1 to the Company’s Current Report on Form 8-K filed May 15, 2025)

4.2						Form of 5.500% Senior Note due 2055 (incorporated by reference from Exhibit 4.2 to the Company’s Current Report on Form 8-K filed May 15, 2025)

10.1						First Amended and Restated Aircraft Time Sharing Agreement, dated as of April 28, 2025.

10.2						Aircraft Time Sharing Agreement, dated as of May 7, 2025.

31.1						Certification of Chief Executive Officer of Caterpillar Inc., as required pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2						Certification of Chief Financial Officer of Caterpillar Inc., as required pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32						Certification of Chief Executive Officer of Caterpillar Inc. and Chief Financial Officer of Caterpillar Inc., as required pursuant to Section 906 of the Sarbanes-Oxley Act of 2002






101.INS						Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)

101.SCH						Inline XBRL Taxonomy Extension Schema Document

101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB						Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase Document

104						Cover Page Interactive File (embedded within the Inline XBRL document and included in Exhibit 101)

The agreements and other documents filed as exhibits to this report are not intended to provide factual information or other disclosure other than with respect to the terms of the agreements or other documents themselves, and you should not rely on them for that purpose. In particular, any representations and warranties made by us in these agreements or other documents were made solely within the specific context of the relevant agreement or document and may not describe the actual state of affairs as of the date they were made or at any other time.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


	CATERPILLAR INC.


August 6, 2025	/s/ Joseph E. Creed	Chief Executive Officer
	Joseph E. Creed



August 6, 2025	/s/ Andrew R.J. Bonfield	Chief Financial Officer
	Andrew R.J. Bonfield



August 6, 2025	/s/ Derek Owens	Chief Legal Officer and General Counsel
	Derek Owens



August 6, 2025	/s/ William E. Schaupp	Vice President and Chief Accounting Officer
	William E. Schaupp

CATERPILLAR INC - Quarter Report: 2025 June (Form 10-Q)

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