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

(Millions of dollars)Three Months Ended March 31,
Gains (Losses) Recognized on the Consolidated Statement of Results of Operations 1
Gains (Losses) Recognized in AOCI
Gains (Losses) Reclassified from AOCI 2
202520242025202420252024
Cash Flow Hedges
Foreign exchange contracts$— $— $ $ $— $ 
Interest rate contracts— — ()   
Fair Value Hedges
Interest rate contracts()()— — — — 
Undesignated Hedges
Foreign 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 Cost of goods sold, Sales of Machinery, Energy and Transportation, and 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 March 31, 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).

8.                                     

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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 March 31, 2025.

The cost basis and fair value of available-for-sale debt securities at March 31, 2025, by contractual maturity, are shown below.
 $ 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 March 31, 2025 and 2024, proceeds from available-for-sale debt securities were $ million and $ million, respectively.

For the three months ended March 31, 2025 and 2024, the net unrealized gains (losses) for equity securities held at March 31, 2025 and 2024 were $ million and $ million, respectively.
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9.                                     
 $ $ $ $ $ Interest cost      Expected return on plan assets ()()()()()()Amortization of prior service cost (credit)    ()()
Net periodic benefit cost (benefit) 1
$()$()$()$()$ $   


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11.                              
million and $ million at March 31, 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 March 31, 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.

  

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

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

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14.                              


15.                              
percent compared to percent for the three months ended March 31, 2024. The effective tax rate for the three months ended March 31, 2024 was favorably impacted by nontaxable gains from a divestiture of a non-US mining entity.

16.                              
Group Presidents, a Chief Financial Officer (CFO), a Chief Legal Officer and General Counsel and a Chief Human Resources Officer. The COO, 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 COO/Group President/CFO level. As such, the CEO serves as our Chief Operating Decision Maker (CODM), and operating segments are primarily based on the COO/Group President/CFO reporting structure.
 
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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.

Energy & Transportation: A segment primarily responsible for supporting customers using reciprocating engines, turbines, diesel-electric locomotives and related services across industries serving Oil and Gas, Power Generation, Industrial and Transportation applications, including marine- and rail-related businesses as well as product support of on-highway engines. Responsibilities include business strategy, product design, product management, development and testing, manufacturing, marketing and sales and product support. The product and services portfolio includes turbines, centrifugal gas compressors, and turbine-related services; reciprocating engine-powered generator sets; integrated systems and solutions used in the electric power generation industry; reciprocating engines, drivetrain and integrated systems and solutions for the marine and oil and gas industries; reciprocating engines, drivetrain and integrated systems and solutions supplied to the industrial industry as well as Caterpillar machines; electrified powertrain and zero-emission power sources and service solutions development; and diesel-electric and hybrid locomotives and components and other rail-related products and services, including remanufacturing and leasing. Responsibilities also include the remanufacturing of Caterpillar reciprocating engines and components and remanufacturing services for other companies. Inter-segment sales are a source of revenue for this segment.
 
Financial Products Segment: Provides financing alternatives to customers and dealers around the world for Caterpillar products and services, as well as financing for power generation facilities that, in most cases, incorporate Caterpillar products. Financing plans include operating and finance leases, revolving charge accounts, installment sale contracts, repair/rebuild financing, working capital loans and wholesale financing plans. The segment also provides insurance and risk management products and services that help customers and dealers manage their business risk. Insurance and risk management products offered include physical damage insurance, inventory protection plans, extended service coverage and maintenance plans for machines and engines, and dealer property and casualty insurance. The various forms of financing, insurance and risk management products offered to customers and dealers help support the purchase and lease of Caterpillar equipment. The segment also earns revenues from Machinery, Energy & Transportation, but the related costs are not allocated to operating segments. Financial Products’ segment profit is determined on a pretax basis and includes other income/expense items.
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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 29 to 30 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.

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 $ $ $ $ $ $ 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$ $ $ $ $ $— $ Three Months Ended March 31, 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 three months ended March 31, 2025 and 2024, respectively.
 $ Power generation  Industrial  Transportation  Energy & Transportation External Sales$ $ 

) )))) )))))      )       )

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17.                            

months with an average remaining term of approximately months as of March 31, 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 months ended March 31, 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 assistance to dealers by financing their mostly 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$ $ $ $ $ $    Finance Receivables$ $ $ $ $ $ 
1 Excludes provision for credit losses on unfunded commitments and other miscellaneous receivables.
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 $ $ $ $ $ $ $ EAME        Asia/Pacific        Latin America        Mining        Power        Total$ $ $ $ $ $ $ $ Three Months Ended March 31, 202420242023202220212020PriorRevolving
Finance
ReceivablesTotalNorth America$ $ $ $ $ $ $ $ EAME        Asia/Pacific        Latin America        Total$ $ $ $ $ $ $ $                            









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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 March 31, 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 months ended March 31, 2025 and 2024, there were finance receivable modifications granted to borrowers experiencing financial difficulty in Cat Financial's Dealer portfolio segment. The amortized cost basis of finance receivables modified for borrowers experiencing financial difficulty in the Customer portfolio segment during the three months ended March 31, 2025 and 2024, was $ million and $ million, respectively. Total modifications with borrowers experiencing financial difficulty represented percent and percent of Cat Financial's Customer portfolio for the same periods, respectively.



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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 months ended March 31, 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 assets$ $ $ $ $ Liabilities    Derivative financial instruments - liabilitiesInterest rate contracts - net$ $ $ $ $ Total return swap 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 March 31, 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 March 31, 2025 and December 31, 2024, respectively.


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19.                         

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

The restructuring costs for the three months ended March 31, 2025 were related to restructuring actions across the company. The restructuring income for the three months ended March 31, 2024 was primarily related to the divestiture of a non-US mining entity.

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 March 31, 2025 and December 31, 2024, respectively.
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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 first quarter of 2025 include:
•Total sales and revenues for the first quarter of 2025 were $14.249 billion, a decrease of $1.550 billion, or 10 percent, compared with $15.799 billion in the first quarter of 2024. Sales were lower across the three primary segments.
•Operating profit margin was 18.1 percent for the first quarter of 2025, compared with 22.3 percent for the first quarter of 2024. Adjusted operating profit margin was 18.3 percent for the first quarter of 2025, compared with 22.2 percent for the first quarter of 2024.
•First-quarter 2025 profit per share was $4.20, and excluding the items in the table below, adjusted profit per share was $4.25. First-quarter 2024 profit per share was $5.75, and excluding the items in the table below, adjusted profit per share was $5.60.
•Caterpillar ended the first quarter of 2025 with $3.6 billion of enterprise cash.
In order for our results to be more meaningful to our readers, we have separately quantified the impact of significant items.
Three Months Ended March 31, 2025Three Months Ended March 31, 2024
(Dollars in millions except per share data)Profit Before TaxesProfit
Per Share		Profit Before TaxesProfit
Per Share
Profit$2,570 $4.20 $3,532 $5.75 
Other restructuring (income) costs33 0.05 58 0.09 
Restructuring (income) - non-U.S. mining entity divestiture— — (64)(0.24)
Adjusted profit$2,603 $4.25 $3,526 $5.60 
2,003 $4.20 0.05 0.09  %%%926 $1,771 (502)222 $1,269 
1 See reconciliation of ME&T net cash provided by operating activities to consolidated net cash provided by operating activities on pages 64 - 65.

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 60 to 65 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 March 31, 2025
(Unaudited)
(Millions of dollars)
 
  Supplemental Consolidating Data
 ConsolidatedMachinery, Energy & Transportation Financial
Products		Consolidating
Adjustments
Sales and revenues:    
Sales of Machinery, Energy & Transportation$13,378 $13,378 $— $— 
Revenues of Financial Products871 — 1,048 (177)
1
Total sales and revenues14,249 13,378 1,048 (177)
Operating costs:    
Cost of goods sold8,965 8,967 — (2)
2
Selling, general and administrative expenses1,593 1,408 196 (11)
2
Research and development expenses480 480 — — 
Interest expense of Financial Products326 — 326 — 

Other operating (income) expenses306 8 325 (27)
2
Total operating costs11,670 10,863 847 (40)
Operating profit2,579 2,515 201 (137)
Interest expense excluding Financial Products116 119 — (3)
3
Other income (expense)107 (45)18 134 
4
Consolidated profit before taxes2,570 2,351 219 — 
Provision (benefit) for income taxes574 520 54 — 
Profit of consolidated companies1,996 1,831 165 — 
Equity in profit (loss) of unconsolidated affiliated companies7 7 — — 
Profit of consolidated and affiliated companies2,003 1,838 165 — 
Profit 5
$2,003 $1,838 $165 $— 
 
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 March 31, 2024
(Unaudited)
(Millions of dollars)
  Supplemental Consolidating Data
 ConsolidatedMachinery,
Energy &
Transportation		Financial
Products		Consolidating
Adjustments
Sales and revenues:    
Sales of Machinery, Energy & Transportation$14,960 $14,960 $— $— 
Revenues of Financial Products839 — 1,029 (190)
1
Total sales and revenues15,799 14,960 1,029 (190)
Operating costs:    
Cost of goods sold9,662 9,664 — (2)
2
Selling, general and administrative expenses1,577 1,413 178 (14)
2
Research and development expenses520 520 — — 
Interest expense of Financial Products298 — 298 — 
Other operating (income) expenses223 (41)285 (21)
2
Total operating costs12,280 11,556 761 (37)
Operating profit3,519 3,404 268 (153)
Interest expense excluding Financial Products143 143 — — 
Other income (expense)156 (20)23 153 
3
Consolidated profit before taxes3,532 3,241 291 — 
Provision (benefit) for income taxes688 615 73 — 
Profit of consolidated companies2,844 2,626 218 — 
Equity in profit (loss) of unconsolidated affiliated companies10 10 — — 
Profit of consolidated and affiliated companies2,854 2,636 218 — 
Less: Profit (loss) attributable to noncontrolling interests(2)(3)1 — 
Profit 4
$2,856 $2,639 $217 $— 
 
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 March 31, 2025
(Unaudited)
(Millions of dollars)
  Supplemental Consolidating Data
 ConsolidatedMachinery,
Energy &
Transportation		Financial
Products		Consolidating
Adjustments
Assets    
Current assets:    
Cash and cash equivalents$3,562 $2,741 $821 $— 
Receivables – trade and other9,116 3,321 551 5,244 
1,2
Receivables – finance9,655 — 15,168 (5,513)
2
Prepaid expenses and other current assets2,824 2,413 448 (37)
3
Inventories17,862 17,862 — — 
Total current assets43,019 26,337 16,988 (306)
Property, plant and equipment – net13,432 9,655 3,777 — 
Long-term receivables – trade and other1,261 532 94 635 
1,2
Long-term receivables – finance13,452 — 14,274 (822)
2
Noncurrent deferred and refundable income taxes3,334 3,614 119 (399)
4
Intangible assets361 361 — — 
Goodwill5,270 5,270 — — 
Other assets4,845 3,567 2,299 (1,021)
5
Total assets$84,974 $49,336 $37,551 $(1,913)
Liabilities    
Current liabilities:    
Short-term borrowings$3,454 $— $3,454 $— 
Accounts payable7,792 7,726 345 (279)
6,7
Accrued expenses4,990 4,304 686 — 
Accrued wages, salaries and employee benefits1,259 1,230 29 — 
Customer advances2,951 2,932 3 16 
7
Other current liabilities2,834 2,162 733 (61)
4,5,8
Long-term debt due within one year9,315 29 9,286 — 
Total current liabilities32,595 18,383 14,536 (324)
Long-term debt due after one year25,819 8,811 17,201 (193)
9
Liability for postemployment benefits3,575 3,575 — — 
Other liabilities4,915 4,033 1,306 (424)
4,5
Total liabilities66,904 34,802 33,043 (941)
Commitments and contingencies    
Shareholders’ equity    
Common stock6,043 6,043 905 (905)
10
Treasury stock(47,127)(47,127)— — 
Profit employed in the business61,356 56,626 4,720 10 
10
Accumulated other comprehensive income (loss)(2,205)(1,013)(1,192)— 
Noncontrolling interests3 5 75 (77)
10
Total shareholders’ equity18,070 14,534 4,508 (972)
Total liabilities and shareholders’ equity$84,974 $49,336 $37,551 $(1,913)
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
 ConsolidatedMachinery,
Energy &
Transportation		Financial
Products		Consolidating
Adjustments
Assets    
Current assets:    
Cash and cash equivalents$6,889 $6,165 $724 $— 
Receivables – trade and other9,282 3,463 688 5,131 
1,2
Receivables – finance9,565 — 14,957 (5,392)
2
Prepaid expenses and other current assets3,119 2,872 401 (154)
3
Inventories16,827 16,827 — — 
Total current assets45,682 29,327 16,770 (415)
Property, plant and equipment – net13,361 9,531 3,830 — 
Long-term receivables – trade and other1,225 500 86 639 
1,2
Long-term receivables – finance13,242 — 14,048 (806)
2
Noncurrent deferred and refundable income taxes3,312 3,594 118 (400)
4
Intangible assets399 399 — — 
Goodwill5,241 5,241 — — 
Other assets5,302 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 payable7,675 7,619 331 (275)
6,7
Accrued expenses5,243 4,589 654 — 

Accrued wages, salaries and employee benefits2,391 2,335 56 — 
Customer advances2,322 2,305 3 14 
7
Dividends payable674 674 — — 
Other current liabilities2,909 2,388 696 (175)
4,8
Long-term debt due within one year6,665 46 6,619 — 
Total current liabilities32,272 19,956 12,752 (436)
Long-term debt due after one year27,351 8,731 18,787 (167)
9
Liability for postemployment benefits3,757 3,757 — — 
Other liabilities4,890 3,977 1,344 (431)
4
Total liabilities68,270 36,421 32,883 (1,034)
Commitments and contingencies    
Shareholders’ equity    
Common stock6,941 6,941 905 (905)
10
Treasury stock(44,331)(44,331)— — 
Profit employed in the business59,352 54,787 4,555 10 
10
Accumulated other comprehensive income (loss)(2,471)(1,182)(1,289)— 
Noncontrolling interests3 6 75 (78)
10
Total shareholders’ equity19,494 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 Three Months Ended March 31, 2025
(Unaudited)
(Millions of dollars)
  Supplemental Consolidating Data
 ConsolidatedMachinery,
Energy &
Transportation		Financial
Products		Consolidating
Adjustments
Cash flow from operating activities:    
Profit of consolidated and affiliated companies$2,003 $1,838 $165 $— 

Adjustments to reconcile profit to net cash provided by operating activities:    
Depreciation and amortization540 351 189 — 
Provision (benefit) for deferred income taxes(38)(34)(4)— 
Other78 76 (123)125 
1
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables – trade and other155 215 (19)(41)
1,2
Inventories(990)(990)— — 

Accounts payable401 343 60 (2)
1
Accrued expenses(198)(211)13 — 
Accrued wages, salaries and employee benefits(1,144)(1,117)(27)— 
Customer advances713 713 — — 
Other assets – net69 224 (12)(143)
1
Other liabilities – net(300)(482)55 127 
1
Net cash provided by (used for) operating activities1,289 926 297 66 
Cash flow from investing activities:    
Capital expenditures – excluding equipment leased to others(710)(700)(11)1 
1
Expenditures for equipment leased to others(208)(4)(205)1 
1
Proceeds from disposals of leased assets and property, plant and equipment149 14 137 (2)
1
Additions to finance receivables(3,209)— (3,549)340 
2
Collections of finance receivables3,049 — 3,458 (409)
2
Net intercompany purchased receivables— — (3)3 
2
Proceeds from sale of finance receivables7 — 7 — 
Net intercompany borrowings— — 7 (7)
3
Investments and acquisitions (net of cash acquired)(2)(2)— — 
Proceeds from sale of businesses and investments (net of cash sold)12 12 — — 
Proceeds from maturities and sale of securities923 782 141 — 
Investments in securities(177)(28)(149)— 
Other – net(9)(44)35 — 
Net cash provided by (used for) investing activities(175)30 (132)(73)
Cash flow from financing activities:    
Dividends paid(674)(674)— — 
Common stock issued, including treasury shares reissued(64)(64)— — 
Payments to purchase common stock(3,660)(3,660)— — 
Net intercompany borrowings— (7)— 7 
3
Proceeds from debt issued (original maturities greater than three months)2,633 — 2,633 — 
Payments on debt (original maturities greater than three months)(1,797)(27)(1,770)— 
Short-term borrowings – net (original maturities three months or less)(934)— (934)— 
Net cash provided by (used for) financing activities(4,496)(4,432)(71)7 
Effect of exchange rate changes on cash54 49 5 — 
Increase (decrease) in cash, cash equivalents and restricted cash(3,328)(3,427)99 — 
Cash, cash equivalents and restricted cash at beginning of period6,896 6,170 726 — 
Cash, cash equivalents and restricted cash at end of period$3,568 $2,743 $825 $— 

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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Table of Contents
Caterpillar Inc.
Supplemental Data for Cash Flow
For the Three Months Ended March 31, 2024
(Unaudited)
(Millions of dollars)
  Supplemental Consolidating Data
 ConsolidatedMachinery,
Energy &
Transportation		Financial
Products		Consolidating
Adjustments
Cash flow from operating activities:    
Profit of consolidated and affiliated companies$2,854 $2,636 $218 $— 
Adjustments to reconcile profit to net cash provided by operating activities:    
Depreciation and amortization524 328 196 — 
Provision (benefit) for deferred income taxes(54)(23)(31)— 
(Gain) loss on divestiture(64)(64)— — 
Other(5)(16)(120)131 
1
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables – trade and other(81)111 (40)(152)
1.2
Inventories(439)(434)— (5)
1
Accounts payable203 179 30 (6)
1
Accrued expenses(38)(47)9 — 
Accrued wages, salaries and employee benefits(1,454)(1,422)(32)— 
Customer advances279 279 — — 
Other assets – net60 102 3 (45)
1
Other liabilities – net267 142 75 50 
1
Net cash provided by (used for) operating activities2,052 1,771 308 (27)
Cash flow from investing activities:    
Capital expenditures – excluding equipment leased to others(500)(493)(8)1 
1
Expenditures for equipment leased to others(236)(9)(233)6 
1
Proceeds from disposals of leased assets and property, plant and equipment155 5 152 (2)
1
Additions to finance receivables(3,256)— (3,573)317 
2
Collections of finance receivables3,140 — 3,572 (432)
2
Net intercompany purchased receivables— — (137)137 
2
Proceeds from sale of finance receivables13 — 13 — 
Net intercompany borrowings— — 3 (3)
3
Proceeds from sale of businesses and investments (net of cash sold)42 42 — — 
Proceeds from maturities and sale of securities1,867 1,797 70 — 
Investments in securities(275)(148)(127)— 
Other – net8 31 (23)— 
Net cash provided by (used for) investing activities958 1,225 (291)24 
Cash flow from financing activities:    
Dividends paid(648)(648)— — 
Common stock issued, including treasury shares reissued(8)(8)— — 
Payments to purchase common stock(4,455)(4,455)— — 
Net intercompany borrowings— (3)— 3 
3
Proceeds from debt issued (original maturities greater than three months)2,731 — 2,731 — 
Payments on debt (original maturities greater than three months)(1,570)(6)(1,564)— 
Short-term borrowings – net (original maturities three months or less)(1,050)— (1,050)— 
Net cash provided by (used for) financing activities(5,000)(5,120)117 3 
Effect of exchange rate changes on cash(30)(20)(10)— 
Increase (decrease) in cash, cash equivalents and restricted cash(2,020)(2,144)124 — 
Cash, cash equivalents and restricted cash at beginning of period6,985 6,111 874 — 
Cash, cash equivalents and restricted cash at end of period$4,965 $3,967 $998 $— 

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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Table of Contents
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 first 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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Table of Contents
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

PeriodTotal 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
January 1-31, 2025552,308 $376.35 552,308 $19.920 
February 1-28, 20256,273,914 $369.60 6,273,914 
2
$16.701 
March 1-31, 2025689,059 $339.08 689,059 $16.468 
Total7,515,281 $367.29 7,515,281 
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 approximately $16.5 billion remained available under the 2024 Authorization.
2 Includes shares acquired pursuant to the accelerated share repurchase agreements entered into during the first quarter of 2025.

Non-U.S. Employee Stock Purchase Plans
 
As of March 31, 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 16,000 active participants in the aggregate. During the first quarter of 2025, approximately 50,000 shares of Caterpillar common stock were purchased by the EIP Plans pursuant to the terms of such plans.


Item 5. Other Information

During the three months ended March 31, 2025, none of the company’s directors or officers (as defined in Rule 16a-1(f) of the Securities Exchange Act of 1934) , or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of Regulation S-K of the Securities Act of 1933).
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Table of Contents

Item 6. Exhibits
31.1
31.2
32
101.INSInline 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
104Cover 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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Table of Contents
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. 
   
   
May 7, 2025/s/ Joseph E. CreedChief Executive Officer
 Joseph E. Creed 
   
May 7, 2025/s/ Andrew R.J. BonfieldChief Financial Officer
 Andrew R.J. Bonfield 
   
   
May 7, 2025/s/ Derek OwensChief Legal Officer and General Counsel
 Derek Owens
   
   
May 7, 2025/s/ William E. SchauppVice President and Chief Accounting Officer
 William E. Schaupp 

69

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