133 added · 127 removed between the two most recent 10-Ks. The risks a company starts — or stops — disclosing are often the story.
Newly disclosed
In Power & Energy, we anticipate growth in Power Generation for both reciprocating engines and turbines and turbine-related services in 2026, driven by increasing energy demand to support data center build-out related to cloud computing and generative Artificial Intelligence (AI).
We anticipate around 50 percent of the incremental tariff costs will be in Construction Industries, 20 percent in Resource Industries and 30 percent in Power & Energy. 29 Table of Contents In the first quarter of 2026 as compared to the first quarter of 2025, excluding the impact from incremental tariff costs, we expect the profit impact of higher sales volume and favorable price realization will be partially offset by higher manufacturing costs and higher selling, general and administrative (SG&A) and research & development (R&D) expenses.
In the first quarter of 2026 as compared to the first quarter of 2025, in Construction Industries, excluding the impact from incremental tariff costs, we anticipate favorable price realization and the profit impact of higher sales volume will be partially offset by higher manufacturing costs.
On February 3, 2026, the Federal Court of Australia approved Caterpillar's acquisition of RPMGlobal Holdings Limited, an Australian based software company.
In March 2026, we will file a Form 8-K recasting historical periods to reflect the movement of the Rail division to Resource Industries.
In Resource Industries, excluding the impact from incremental tariff costs, we anticipate the profit impact of higher sales volume will be more than offset by unfavorable manufacturing costs and higher SG&A/R&D expenses.
In Power & Energy, excluding the impact from incremental tariff costs, we anticipate the profit impact of higher sales volume and favorable price realization will be partially offset by higher manufacturing costs.
Full Year 2025 Full Year 2024 (Dollars in millions except per share data) Profit Before Taxes Profit Per Share Profit Before Taxes Profit Per Share Profit $ 11,541 $ 18.81 $ 13,373 $ 22.05 Other restructuring (income) costs 445 0.73 195 0.32 Pension/OPEB mark-to-market (gains) losses (294) (0.48) (154) (0.23) Restructuring (income) costs - divestitures of certain non-U.S. entities — — 164 0.22 Tax law change related to currency translation — — — (0.46) Adjusted profit $ 11,692 $ 19.06 $ 13,578 $ 21.90 A detailed reconciliation of GAAP to non-GAAP financial measures is included on pages 48 - 49.
The outlook for North America remains positive, as sales of equipment to end users should grow moderately compared to 2025 with construction spending remaining healthy due to Infrastructure Investment and Jobs Act (IIJA) funding and other critical infrastructure programs.
Growth in Latin America is expected to continue in 2026 at a similar rate to 2025. 28 Table of Contents In Resource Industries, sales of equipment to end users is expected to increase in 2026 as compared to 2025, primarily driven by rising demand for copper and gold, and positive growth trends in heavy construction and quarry and aggregates.
We expect machine dealer inventory to increase in 2026 and offset the $500 million decrease in 2025. 31 Table of Contents Sales and Revenues by Segment (Millions of dollars) 2024 Sales Volume Price Realization Currency Inter-Segment/Other 2025 $ Change % Change Construction Industries $ 25,455 $ 568 $ (1,136) $ 24 $ 149 $ 25,060 $ (395) (2 %) Resource Industries 12,471 403 (272) (46) (82) 12,474 3 — % Power & Energy 28,854 2,401 592 62 292 32,201 3,347 12 % All Other Segment 344 11 — (1) (27) 327 (17) (5 %) Corporate Items and Eliminations (5,761) 6 (1) 6 (332) (6,082) (321) Machinery, Power & Energy 61,363 3,389 (817) 45 — 63,980 2,617 4 % Financial Products Segment 4,053 — — — 167 4,220 167 4 % Corporate Items and Eliminations (607) — — — (4) (611) (4) Financial Products Revenues 3,446 — — — 163 3,609 163 5 % Consolidated Sales and Revenues $ 64,809 $ 3,389 $ (817) $ 45 $ 163 $ 67,589 $ 2,780 4 % Sales and Revenues by Geographic Region North America Latin America EAME Asia/Pacific External Sales and Revenues Inter-Segment Total Sales and Revenues (Millions of dollars) $ % Chg $ % Chg $ % Chg $ % Chg $ % Chg $ % Chg $ % Chg 2025 Construction Industries $ 14,064 (4%) $ 2,358 (8%) $ 4,595 6% $ 3,783 (3%) $ 24,800 (2%) $ 260 134% $ 25,060 (2 %) Resource Industries 4,643 1% 2,292 10% 2,061 14% 3,189 (12%) 12,185 1% 289 (22%) 12,474 — % Power & Energy 15,558 20% 1,985 13% 5,717 (1%) 3,883 10% 27,143 13% 5,058 6% 32,201 12 % All Other Segment 26 30% — 100% 6 (14%) 14 27% 46 28% 281 (9%) 327 (5 %) Corporate Items and Eliminations (164) 1 (11) (20) (194) (5,888) (6,082) Machinery, Power & Energy 34,127 6% 6,636 4% 12,368 4% 10,849 (2%) 63,980 4% — —% 63,980 4 % Financial Products Segment 2,841 5% 442 10% 511 1% 426 (4%) 4,220 1 4% — —% 4,220 4 % Corporate Items and Eliminations (359) (90) (86) (76) (611) — (611) Financial Products Revenues 2,482 6% 352 10% 425 —% 350 (1%) 3,609 5% — —% 3,609 5 % Consolidated Sales and Revenues $ 36,609 6% $ 6,988 4% $ 12,793 4% $ 11,199 (2%) $ 67,589 4% $ — —% $ 67,589 4 % 2024 Construction Industries $ 14,576 $ 2,553 $ 4,315 $ 3,900 $ 25,344 $ 111 $ 25,455 Resource Industries 4,597 2,079 1,809 3,615 12,100 371 12,471 Power & Energy 13,005 1,763 5,787 3,533 24,088 4,766 28,854 All Other Segment 20 (2) 7 11 36 308 344 Corporate Items and Eliminations (150) (6) (25) (24) (205) (5,556) (5,761) Machinery, Power & Energy 32,048 6,387 11,893 11,035 61,363 — 61,363 Financial Products Segment 2,702 402 505 444 4,053 1 — 4,053 Corporate Items and Eliminations (353) (81) (82) (91) (607) — (607) Financial Products Revenues 2,349 321 423 353 3,446 — 3,446 Consolidated Sales and Revenues $ 34,397 $ 6,708 $ 12,316 $ 11,388 $ 64,809 $ — $ 64,809 1 Includes revenues from Machinery, Power & Energy of $712 million and $711 million in 2025 and 2024, respectively. 32 Table of Contents CONSOLIDATED OPERATING PROFIT The chart above graphically illustrates reasons for the change in consolidated operating profit between 2024 (at left) and 2025 (at right).
Dealer inventory decreased during 2025, compared with an increase in 2024. • Sales decreased in Latin America due to lower sales volume, unfavorable price realization and unfavorable currency impacts primarily related to the Brazilian real.
No longer disclosed
We completed our annual assessment of goodwill in the fourth quarter of 2024 and determined that there was no impairment of goodwill.
Overall strength in Power Generation, for both prime and backup power applications, continues to be driven by increasing energy demands to support data center growth related to cloud computing and generative artificial intelligence (AI).
In the three primary segments, sales were lower in Construction Industries and Resource Industries and higher in Energy & Transportation . • Operating profit as a percent of sales and revenues was 20.2 percent in 2024, compared with 19.3 percent in 2023.
Profit per share for 2023 was $20.12, and excluding the items in the table below, adjusted profit per share was $21.21. • In order for our results to be more meaningful to our readers, we have separately quantified the impact of several significant items.
Full Year 2024 Full Year 2023 (Dollars in millions except per share data) Profit Before Taxes Profit Per Share Profit Before Taxes Profit Per Share Profit $ 13,373 $ 22.05 $ 13,050 $ 20.12 Restructuring (income) costs - divestitures of certain non-U.S. entities 164 0.22 — — Other restructuring (income) costs 195 0.32 194 0.30 Pension/OPEB mark-to-market (gains) losses (154) (0.23) (97) (0.14) Tax law change related to currency translation — (0.46) — — Restructuring costs - Longwall divestiture — — 586 1.14 Deferred tax valuation allowance adjustments — — — (0.21) Adjusted profit $ 13,578 $ 21.90 $ 13,733 $ 21.21 • Enterprise operating cash flow was $12.0 billion in 2024.
First-Quarter 2025 Company Trends and Expectations In the first quarter of 2025, we expect lower sales and revenues as compared to the first quarter of 2024, primarily due to the unfavorable impact from changes in machine dealer inventories and unfavorable machine price realization.
In 2025, we anticipate that trend to continue but be more pronounced as sales in the first quarter should account for a lower percentage of full year sales than is typical, mainly due to our expectations for changes in dealer inventories and price realization for machines.
In the first quarter of 2025 as compared to the first quarter of 2024, we anticipate lower sales in Construction Industries primarily due to lower sales of equipment to end users, an unfavorable impact from changes in dealer inventories and unfavorable price realization.
In Energy & Transportation, we anticipate similar sales in the first quarter of 2025 as compared to the first quarter of 2024, as continued strength in Power Generation is expected to be offset by lower sales in Oil & Gas and in Transportation.
We expect favorable price realization for Energy & Transportation in the first quarter of 2025. 28 Table of Contents In the first quarter of 2025, we expect the profit impact from lower machine sales volume and unfavorable machine price realization to be partially offset by favorable price realization in Energy & Transportation.
We do not expect a significant change in machine dealer inventories in 2025. 30 Table of Contents Sales and Revenues by Segment (Millions of dollars) 2023 Sales Volume Price Realization Currency Inter-Segment/Other 2024 $ Change % Change Construction Industries $ 27,418 $ (1,737) $ (70) $ (143) $ (13) $ 25,455 $ (1,963) (7 %) Resource Industries 13,583 (1,603) 405 (28) 32 12,389 (1,194) (9 %) Energy & Transportation 28,001 (142) 900 (25) 120 28,854 853 3 % All Other Segment 449 (17) 5 (1) (11) 425 (24) (5 %) Corporate Items and Eliminations (5,582) (44) (2) (4) (128) (5,760) (178) Machinery, Energy & Transportation 63,869 (3,543) 1,238 (201) — 61,363 (2,506) (4 %) Financial Products Segment 3,785 — — — 268 4,053 268 7 % Corporate Items and Eliminations (594) — — — (13) (607) (13) Financial Products Revenues 3,191 — — — 255 3,446 255 8 % Consolidated Sales and Revenues $ 67,060 $ (3,543) $ 1,238 $ (201) $ 255 $ 64,809 $ (2,251) (3 %) Sales and Revenues by Geographic Region North America Latin America EAME Asia/Pacific External Sales and Revenues Inter-Segment Total Sales and Revenues (Millions of dollars) $ % Chg $ % Chg $ % Chg $ % Chg $ % Chg $ % Chg $ % Chg 2024 Construction Industries $ 14,576 (5%) $ 2,553 11% $ 4,315 (18%) $ 3,900 (11%) $ 25,344 (7%) $ 111 (10%) $ 25,455 (7 %) Resource Industries 4,561 (13%) 2,077 2% 1,804 (13%) 3,576 (8%) 12,018 (9%) 371 9% 12,389 (9 %) Energy & Transportation 13,005 9% 1,763 (11%) 5,787 (2%) 3,533 2% 24,088 3% 4,766 3% 28,854 3 % All Other Segment 56 (14%) — 100% 12 (33%) 50 2% 118 (10%) 307 (3%) 425 (5 %) Corporate Items and Eliminations (150) (6) (25) (24) (205) (5,555) (5,760) Machinery, Energy & Transportation 32,048 (1%) 6,387 1% 11,893 (10%) 11,035 (6%) 61,363 (4%) — —% 61,363 (4 %) Financial Products Segment 2,702 11% 402 (3%) 505 3% 444 1% 4,053 1 7% — —% 4,053 7 % Corporate Items and Eliminations (353) (81) (82) (91) (607) — (607) Financial Products Revenues 2,349 12% 321 (5%) 423 4% 353 1% 3,446 8% — —% 3,446 8 % Consolidated Sales and Revenues $ 34,397 (1%) $ 6,708 1% $ 12,316 (10%) $ 11,388 (6%) $ 64,809 (3%) $ — —% $ 64,809 (3 %) 2023 Construction Industries $ 15,343 $ 2,307 $ 5,254 $ 4,390 $ 27,294 $ 124 $ 27,418 Resource Industries 5,256 2,040 2,069 3,879 13,244 339 13,583 Energy & Transportation 11,982 1,983 5,929 3,461 23,355 4,646 28,001 All Other Segment 65 (1) 18 49 131 318 449 Corporate Items and Eliminations (133) (3) (5) (14) (155) (5,427) (5,582) Machinery, Energy & Transportation 32,513 6,326 13,265 11,765 63,869 — 63,869 Financial Products Segment 2,440 416 491 438 3,785 1 — 3,785 Corporate Items and Eliminations (347) (77) (83) (87) (594) — (594) Financial Products Revenues 2,093 339 408 351 3,191 — 3,191 Consolidated Sales and Revenues $ 34,606 $ 6,665 $ 13,673 $ 12,116 $ 67,060 $ — $ 67,060 1 Includes revenues from Machinery, Energy & Transportation of $711 million and $690 million in 2024 and 2023, respectively. 31 Table of Contents CONSOLIDATED OPERATING PROFIT The chart above graphically illustrates reasons for the change in consolidated operating profit between 2023 (at left) and 2024 (at right).
The profit impact of lower sales volume of $1.298 billion, higher selling, general and administrative (SG&A) and research and development (R&D) expenses of $201 million, and higher restructuring costs of $165 million were more than offset by favorable price realization of $1.238 billion, the absence of the impact of the divestiture of the company's Longwall business in 2023 of $586 million and favorable manufacturing costs of $246 million.