CATERPILLAR INC (CAT) · Material Event (8-K) SEC Filing

EX-99.1 2 ex991toformcat2q2026earnin.htm EX-99.1 DocumentExhibit 99.1Caterpillar Inc. 2Q 2026 Earnings ReleaseFOR IMMEDIATE RELEASE Caterpillar Reports Second-Quarter 2026 Results Second Quarter ($ in billions except profit per share) 2026 2025 Sales and Revenues $20.5 $16.6 Profit Per Share $7.77 $4.62 Adjusted Profit Per Share $8.17 $4.72 Please see a reconciliation of GAAP to non-GAAP financial measures in the appendix on pages 12 and 13. Second-quarter 2026 sales and revenues increased 24% to $20.5 billion Second-quarter 2026 profit per share of $7.77 adjusted profit per share of $8.17 Deployed $2.2 billion of cash for share repurchases and dividends in the second quarter IRVING, Texas, Aug. 4, 2026 Caterpillar Inc. (NYSE CAT) announced second-quarter 2026 results. This is the first time in company history that we have generated over $20 billion in sales and revenues in a single quarter, said Caterpillar Chairman and CEO Joe Creed. This milestone underscores both the essential work our customers do every day and the dedication of Caterpillar employees worldwide to solving our customers toughest challenges. Strong order rates and a growing backlog reflect broadening momentum across all three of our primary segments. Sales and revenues for the second quarter of 2026 were $20.5 billion, a 24% increase compared with $16.6 billion in the second quarter of 2025. The increase was primarily due to higher sales volume of $3.1 billion and favorable price realization of $595 million.Operating profit margin was 20.9% for the second quarter of 2026, compared with 17.3% for the second quarter of 2025. Adjusted operating profit margin was 21.9% for the second quarter of 2026, compared with 17.6% for the second quarter of 2025. Second-quarter 2026 profit per share was $7.77, compared with second-quarter 2025 profit per share of $4.62. Adjusted profit per share in the second quarter of 2026 was $8.17, compared with second-quarter 2025 adjusted profit per share of $4.72. For the second quarter of 2026 and 2025, adjusted operating profit margin and adjusted profit per share excluded restructuring costs. For the second quarter of 2026, enterprise operating cash flow was $4.4 billion, and the company ended the second quarter with $6.7 billion of enterprise cash. In the quarter, the company deployed $1.5 billion of cash for repurchases of Caterpillar common stock and $0.7 billion of cash for dividends.(more)2CONSOLIDATED RESULTSConsolidated Sales and RevenuesThe chart above graphically illustrates reasons for the change in consolidated sales and revenues between the second quarter of 2025 (at left) and the second quarter of 2026 (at right). Caterpillar management utilizes these charts internally to visually communicate with the company s board of directors and employees.Total sales and revenues for the second quarter of 2026 were $20.543 billion, an increase of $3.974 billion, or 24%, compared with $16.569 billion in the second quarter of 2025. The increase was primarily due to higher sales volume of $3.1 billion and favorable price realization of $595 million. Higher sales volume was mainly driven by higher sales of equipment to end users.Sales were higher across the three primary segments. Sales and Revenues by Segment (Millions of dollars) Second Quarter 2025 SalesVolume PriceRealization Currency Inter-Segment Other Second Quarter 2026 $Change %Change Power Energy $ 7,037 $ 736 $ 212 $ 53 $ 200 $ 8,238 $ 1,201 17% Construction Industries 6,190 1,755 309 74 18 8,346 2,156 35% Resource Industries 3,886 639 75 65 (17) 4,648 762 20% All Other Segment 85 1 1 (3) 84 (1) (1%) Corporate Items and Eliminations (1,524) (18) (2) 7 (198) (1,735) (211) Machinery, Power Energy 15,674 3,113 595 199 19,581 3,907 25% Financial Products Segment 1,042 103 1,145 103 10% Corporate Items and Eliminations (147) (36) (183) (36) Financial Products Revenues 895 67 962 67 7% Consolidated Sales and Revenues $ 16,569 $ 3,113 $ 595 $ 199 $ 67 $ 20,543 $ 3,974 24% (more)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 Second Quarter 2026 Power Energy $ 4,182 30% $ 373 (16%) $ 1,348 3% $ 892 9% $ 6,795 17% $ 1,443 16% $ 8,238 17% Construction Industries 5,065 50% 676 25% 1,456 23% 1,064 3% 8,261 35% 85 27% 8,346 35% Resource Industries 2,230 34% 671 13% 713 22% 954 1% 4,568 21% 80 (18%) 4,648 20% All Other Segment 9 50% 1 % 2 100% 3 (50%) 15 15% 69 (4%) 84 (1%) Corporate Items and Eliminations (51) 1 (1) (7) (58) (1,677) (1,735) Machinery, Power Energy 11,435 39% 1,722 10% 3,518 15% 2,906 4% 19,581 25% % 19,581 25% Financial Products Segment 765 9% 122 16% 137 9% 121 12% 1,145 10% % 1,145 10% Corporate Items and Eliminations (106) (23) (30) (24) (183) (183) Financial Products Revenues 659 7% 99 16% 107 (1%) 97 11% 962 7% % 962 7% Consolidated Sales and Revenues $ 12,094 37% $ 1,821 10% $ 3,625 14% $ 3,003 4% $ 20,543 24% $ % $ 20,543 24% Second Quarter 2025 Power Energy $ 3,225 $ 442 $ 1,306 $ 821 $ 5,794 $ 1,243 $ 7,037 Construction Industries 3,369 540 1,185 1,029 6,123 67 6,190 Resource Industries 1,668 592 584 945 3,789 97 3,886 All Other Segment 6 1 6 13 72 85 Corporate Items and Eliminations (32) (3) (4) (6) (45) (1,479) (1,524) Machinery, Power Energy 8,236 1,571 3,072 2,795 15,674 15,674 Financial Products Segment 703 105 126 108 1,042 1,042 Corporate Items and Eliminations (88) (20) (18) (21) (147) (147) Financial Products Revenues 615 85 108 87 895 895 Consolidated Sales and Revenues $ 8,851 $ 1,656 $ 3,180 $ 2,882 $ 16,569 $ $ 16,569 (more)4Consolidated Operating ProfitThe chart above graphically illustrates reasons for the change in consolidated operating profit between the second quarter of 2025 (at left) and the second quarter of 2026 (at right). Caterpillar management utilizes these charts internally to visually communicate with the company s board of directors and employees. The bar titled Other includes consolidating adjustments and Machinery, Power Energy s other operating (income) expenses.Operating profit for the second quarter of 2026 was $4.295 billion, an increase of $1.435 billion, or 50%, compared with $2.860 billion in the second quarter of 2025. The increase was primarily due to the profit impact of higher sales volume. Operating profit in the second quarter of 2026 included $392 million of expected International Emergency Economic Power Act (IEEPA) tariff recoveries. Profit (Loss) by Segment (Millions of dollars) Second Quarter 2026 Second Quarter 2025 $Change % Change Power Energy $ 2,027 $ 1,554 $ 473 30 % Construction Industries 1,947 1,244 703 57 % Resource Industries 693 563 130 23 % All Other Segment % Corporate Items and Eliminations (453) (566) 113 Machinery, Power Energy 4,214 2,795 1,419 51 % Financial Products Segment 328 248 80 32 % Corporate Items and Eliminations (65) (36) (29) Financial Products 263 212 51 24 % Consolidating Adjustments (182) (147) (35) Consolidated Operating Profit $ 4,295 $ 2,860 $ 1,435 50 % (more)5Other Profit Loss and Tax Items Other income (expense) in the second quarter of 2026 was income of $398 million, compared with income of $84 million in the second quarter of 2025. The change was primarily driven by favorable impacts from foreign currency, total return swap contracts and investment and interest income. The effective tax rate for the second quarter of 2026 was 23.1% compared to 23.0% for the second quarter of 2025. Excluding the discrete items discussed below, the global estimated annual effective tax rate was 23.0% for the second quarters of 2026 and 2025.A discrete tax benefit of $26 million was recorded in the second quarter of 2026, compared with a $1 million benefit in the second quarter of 2025, for the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S. GAAP compensation expense. In addition, the global estimated annual effective tax rate in the second quarter of 2026 excluded the impact of second quarter losses of $139 million for the divestiture of certain non-U.S. entities with no related tax benefit.Please see a reconciliation of GAAP to non-GAAP financial measures in the appendix on pages 12 and 13.(more)6 POWER ENERGY (Millions of dollars) Segment Sales Second Quarter 2025 Sales Volume Price Realization Currency Inter-Segment Second Quarter 2026 $ Change % Change Total Sales $ 7,037 $ 736 $ 212 $ 53 $ 200 $ 8,238 $ 1,201 17 % Sales by Application Second Quarter 2026 Second Quarter 2025 $Change %Change Power Generation $ 3,098 $ 2,407 $ 691 29 % Oil and Gas 2,044 1,867 177 9 % Industrial 1,653 1,520 133 9 % External Sales 6,795 5,794 1,001 17 % Inter-segment 1,443 1,243 200 16 % Total Sales $ 8,238 $ 7,037 $ 1,201 17 % Segment Profit Second Quarter 2026 Second Quarter 2025 Change %Change Segment Profit $ 2,027 $ 1,554 $ 473 30 % Segment Profit Margin 24.6 % 22.1 % 2.5 pts Power Energy s total sales were $8.238 billion in the second quarter of 2026, an increase of $1.201 billion, or 17%, compared with $7.037 billion in the second quarter of 2025. The increase was primarily due to higher sales volume of $736 million, favorable price realization of $212 million and higher inter-segment sales of $200 million. Power Generation Sales increased in large reciprocating engines and in turbines and turbine-related services, primarily in data center applications. Oil and Gas Sales increased in reciprocating engines used in gas compression applications and in reciprocating engine aftermarket parts, partially offset by lower sales of reciprocating engines used in well servicing applications. Sales also increased in turbines and turbine-related services. Industrial Sales increased primarily in North America and EAME.Power Energy s segment profit was $2.027 billion in the second quarter of 2026, an increase of $473 million, or 30%, compared with $1.554 billion in the second quarter of 2025. The increase was mainly due to the profit impact of higher sales volume of $457 million and favorable price realization of $212 million, partially offset by unfavorable manufacturing costs of $149 million. Unfavorable manufacturing costs largely reflected increased period manufacturing costs.(more)7 CONSTRUCTION INDUSTRIES (Millions of dollars) Segment Sales Second Quarter 2025 Sales Volume Price Realization Currency Inter-Segment Second Quarter 2026 $ Change % Change Total Sales $ 6,190 $ 1,755 $ 309 $ 74 $ 18 $ 8,346 $ 2,156 35 % Sales by Geographic Region Second Quarter 2026 Second Quarter 2025 $Change %Change North America $ 5,065 $ 3,369 $ 1,696 50 % Latin America 676 540 136 25 % EAME 1,456 1,185 271 23 % Asia Pacific 1,064 1,029 35 3 % External Sales 8,261 6,123 2,138 35 % Inter-segment 85 67 18 27 % Total Sales $ 8,346 $ 6,190 $ 2,156 35 % Segment Profit Second Quarter 2026 Second Quarter 2025 Change %Change Segment Profit $ 1,947 $ 1,244 $ 703 57 % Segment Profit Margin 23.3 % 20.1 % 3.2 pts Construction Industries total sales were $8.346 billion in the second quarter of 2026, an increase of $2.156 billion, or 35%, compared with $6.190 billion in the second quarter of 2025. The increase in sales was mainly due to higher sales volume of $1.8 billion and favorable price realization of $309 million. Higher sales volume was primarily driven by higher sales of equipment to end users. In North America, sales increased primarily due to higher sales volume and favorable price realization. Higher sales volume was mainly driven by higher sales of equipment to end users and by the impact from changes in dealer inventories. Sales increased in Latin America mainly due to higher sales volume and favorable currency impacts primarily related to the Brazilian real. Higher sales volume was mainly driven by higher sales of equipment to end users. In EAME, sales increased primarily due to higher sales volume and favorable currency impacts mainly related to the euro. Higher sales volume was primarily driven by higher sales of equipment to end users. Sales increased in Asia Pacific mainly due to higher sales volume. Higher sales volume was primarily driven by higher sales of equipment to end users. Construction Industries segment profit was $1.947 billion in the second quarter of 2026, an increase of $703 million, or 57%, compared with $1.244 billion in the second quarter of 2025. The increase was primarily due to the profit impact of higher sales volume.(more)8 RESOURCE INDUSTRIES (Millions of dollars) Segment Sales Second Quarter 2025 Sales Volume Price Realization Currency Inter-Segment Second Quarter 2026 $ Change % Change Total Sales $ 3,886 $ 639 $ 75 $ 65 $ (17) $ 4,648 $ 762 20 % Sales by Industry Second Quarter 2026 Second Quarter 2025 $Change %Change Mining, HC and Q A* $ 3,685 $ 3,024 $ 661 22 % Rail 883 765 118 15 % External Sales 4,568 3,789 779 21 % Inter-segment 80 97 (17) (18 %) Total Sales $ 4,648 $ 3,886 $ 762 20 % *Heavy Construction and Quarry Aggregates (HC and Q A) Segment Profit Second Quarter 2026 Second Quarter 2025 Change %Change Segment Profit $ 693 $ 563 $ 130 23 % Segment Profit Margin 14.9 % 14.5 % 0.4 pts Resource Industries total sales were $4.648 billion in the second quarter of 2026, an increase of $762 million, or 20%, compared with $3.886 billion in the second quarter of 2025. The increase was primarily due to higher sales volume. Higher sales volume was primarily driven by higher sales of equipment to end users. Mining, Heavy Construction and Quarry Aggregates Sales increased primarily due to higher sales of equipment to end users. Rail Sales increased due to higher international locomotive deliveries. Sales also increased in rail services.Resource Industries segment profit was $693 million in the second quarter of 2026, an increase of $130 million, or 23%, compared with $563 million in the second quarter of 2025. The increase was mainly due to the profit impact of higher sales volume of $269 million, partially offset by unfavorable manufacturing costs of $158 million. Unfavorable manufacturing costs primarily reflected increased period manufacturing costs.(more)9 FINANCIAL PRODUCTS SEGMENT (Millions of dollars) Revenues by Geographic Region Second Quarter 2026 Second Quarter 2025 $Change %Change North America $ 765 $ 703 $ 62 9 % Latin America 122 105 17 16 % EAME 137 126 11 9 % Asia Pacific 121 108 13 12 % Total Revenues $ 1,145 $ 1,042 $ 103 10 % Segment Profit Second Quarter 2026 Second Quarter 2025 Change %Change Segment Profit $ 328 $ 248 $ 80 32 % Financial Products segment revenues were $1.145 billion in the second quarter of 2026, an increase of $103 million, or 10%, compared with $1.042 billion in the second quarter of 2025. The increase was primarily due to a favorable impact from higher average earning assets across all regions.Financial Products segment profit was $328 million in the second quarter of 2026, an increase of $80 million, or 32%, compared with $248 million in the second quarter of 2025. The increase was mainly due to favorable impacts from higher average earning assets of $44 million, equity securities at Insurance Services of $22 million and higher margins at Insurance Services of $21 million, partially offset by higher provision for credit losses at Cat Financial of $22 million.At the end of the second quarter of 2026, past dues at Cat Financial were 1.31%, compared with 1.62% at the end of the second quarter of 2025. Write-offs, net of recoveries, were $20 million for the second quarter of 2026 compared with $18 million for the second quarter of 2025. As of June 30, 2026, Cat Financial's allowance for credit losses totaled $294 million, or 0.84% of finance receivables, compared with $283 million, or 0.86% of finance receivables at March 31, 2026. The allowance for credit losses at year-end 2025 was $284 million, or 0.86% of finance receivables.Corporate Items and EliminationsExpense for corporate items and eliminations was $518 million in the second quarter of 2026, a decrease of $84 million from the second quarter of 2025. This decrease was due to timing differences, which included the majority of the expected IEEPA tariff recoveries recorded in the second quarter of 2026, and favorable impacts of segment reporting methodology differences. This was partially offset by higher corporate costs, higher restructuring costs and an unfavorable change in fair value adjustments related to deferred compensation plans. In the second quarter of 2026, restructuring costs increased primarily due to the divestiture of certain non-U.S. entities.(more)10Notesi.Glossary of terms is included on the Caterpillar website at https investors.caterpillar.com overview default.aspx.ii.Sales of equipment to end users is demonstrated by the company s Rolling 3 Month Retail Sales Statistics filed in a Form 8-K on Tuesday, Aug. 4, 2026.iii.Information on non-GAAP financial measures is included in the appendix on pages 12 and 13.iv.Some amounts within this report are rounded to the millions or billions and may not add.v.Caterpillar will conduct a teleconference and live webcast, with a slide presentation, beginning at 7 30 a.m. Central Time on Tuesday, Aug. 4, 2026, to discuss its 2026 second-quarter results. The accompanying slides will be available before the webcast on the Caterpillar website at https investors.caterpillar.com events-presentations default.aspx.About CaterpillarFor more than a century, Caterpillar has built a better, more sustainable world. With 2025 sales and revenues of $67.6 billion, Caterpillar Inc. is shaping the future as the world s leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. Backed by one of the largest independent global dealer networks and financing services through Cat Financial, the company s primary business segments Power Energy, Construction Industries and Resource Industries are solving customers toughest challenges through commercial excellence and advanced technology, driven by a highly skilled, dedicated global team. Learn more at caterpillar.com.Caterpillar s latest financial results are also available online https investors.caterpillar.com overview default.aspxhttps investors.caterpillar.com financials quarterly-results default.aspx (live broadcast replays of quarterly conference call)Caterpillar investor relations contact Alex Kapper, +1 773-250-2227 or Kapper_Alex cat.comCaterpillar media contact Tiffany Heikkila, +1 832-573-0958 or Tiffany.Heikkila cat.com(more)11Forward-Looking StatementsCertain statements in this press release 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 in Caterpillar s Forms 10-Q, 10-K and other filings with the Securities and Exchange Commission.(more)12APPENDIXNON-GAAP FINANCIAL MEASURESThe following definitions are provided for the non-GAAP financial measures. These non-GAAP financial measures have no standardized meaning prescribed by U.S. GAAP and therefore are unlikely to be comparable to the calculation of similar measures for other companies. Management does not intend these items to be considered in isolation or as a substitute for the related GAAP measures.The company believes it is important to separately quantify the profit impact of two significant items in order for the company s results to be meaningful to readers. These items consist of (i) restructuring costs related to the divestiture of certain non-U.S. entities in 2026 and (ii) other restructuring costs. The company does not consider this item indicative of earnings from ongoing business activities and believes the non-GAAP measure provides investors with useful perspective on underlying business results and trends and aids with assessing the company s period-over-period results. The company intends to discuss adjusted profit per share for the fourth quarter and full-year 2026, excluding mark-to-market gains or losses for remeasurement of pension and other postemployment benefit plans.Reconciliations of adjusted results to the most directly comparable GAAP measure are as follows (Dollars in millions except per share data) Operating Profit Operating Profit Margin Profit Before Taxes Provision (Benefit) for Income Taxes Profit Profit per Share Three Months Ended June 30, 2026 - U.S. GAAP $ 4,295 20.9 % $ 4,558 $ 1,055 $ 3,593 $ 7.77 Restructuring costs - divestiture of certain non-U.S. entities 139 0.7 % 139 139 0.30 Other restructuring costs 63 0.3 % 63 15 48 0.10 Three Months Ended June 30, 2026 - Adjusted $ 4,497 21.9 % $ 4,760 $ 1,070 $ 3,780 $ 8.17 Three Months Ended June 30, 2025 - U.S. GAAP $ 2,860 17.3 % $ 2,818 $ 646 $ 2,179 $ 4.62 Other restructuring costs 56 0.3 % 56 12 47 0.10 Three Months Ended June 30, 2025 - Adjusted $ 2,916 17.6 % $ 2,874 $ 658 $ 2,226 $ 4.72 (more)13The company believes it is important to separately disclose the annual effective tax rate, excluding discrete items for the results to be meaningful to readers. The annual effective tax rate is discussed using non-GAAP financial measures that exclude the effects of amounts associated with discrete items recorded fully in the quarter they occur. For the three months ended June 30, 2026 and 2025, these items consist of (i) restructuring costs related to the divestiture of certain non-U.S. entities in 2026 and (ii) the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S. GAAP compensation expense. The company believes the non-GAAP measures will provide investors with useful perspective on underlying business results and trends and aids with assessing the company's period-over-period results.A reconciliation of the effective tax rate to annual effective tax rate, excluding discrete items is below (Dollars in millions) Profit Before Taxes Provision (Benefit) for Income Taxes Effective Tax Rate Three Months Ended June 30, 2026 - U.S. GAAP $ 4,558 1,055 23.1 % Restructuring costs - divestiture of certain non-U.S. entities 139 Excess stock-based compensation 26 Annual effective tax rate, excluding discrete items $ 4,697 $ 1,081 23.0 % Excess stock-based compensation (26) Other restructuring costs 63 15 Three Months Ended June 30, 2026 - Adjusted $ 4,760 $ 1,070 Three Months Ended June 30, 2025 - U.S. GAAP $ 2,818 $ 646 23.0 % Excess stock-based compensation 1 Annual effective tax rate, excluding discrete items $ 2,818 $ 647 23.0 % Excess stock-based compensation (1) Other restructuring costs 56 12 Three Months Ended June 30, 2025 - Adjusted $ 2,874 $ 658 (more)14Supplemental Consolidating DataThe company is providing supplemental consolidating data for the purpose of additional analysis. The data has been grouped as follows Consolidated Caterpillar Inc. and its subsidiaries.Machinery, Power Energy (MP E) The company defines MP E as it is presented in the supplemental data as Caterpillar Inc. and its subsidiaries, excluding Financial Products. MP E s information relates to the design, manufacturing and marketing of its products. Financial Products The company defines Financial Products as it is presented in the supplemental data as its 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 MP E and Financial Products.The nature of the MP E 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. The company believes this presentation will assist readers in understanding its business.Pages 15 to 25 reconcile MP E and Financial Products to Caterpillar Inc. consolidated financial information.(more)15Caterpillar Inc.Condensed Consolidated Statement of Results of Operations(Unaudited)(Dollars in millions except per share data) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Sales and revenues Sales of Machinery, Power Energy $ 19,581 $ 15,674 $ 36,054 $ 29,052 Revenues of Financial Products 962 895 1,904 1,766 Total sales and revenues 20,543 16,569 37,958 30,818 Operating costs Cost of goods sold 12,781 10,807 24,087 19,772 Selling, general and administrative expenses 2,018 1,694 3,834 3,287 Research and development expenses 616 551 1,153 1,031 Interest expense of Financial Products 362 336 707 662 Other operating (income) expenses 471 321 797 627 Total operating costs 16,248 13,709 30,578 25,379 Operating profit 4,295 2,860 7,380 5,439 Interest expense excluding Financial Products 135 126 269 242 Other income (expense) 398 84 658 191 Consolidated profit before taxes 4,558 2,818 7,769 5,388 Provision (benefit) for income taxes 1,055 646 1,725 1,220 Profit of consolidated companies 3,503 2,172 6,044 4,168 Equity in profit (loss) of unconsolidated affiliated companies 90 7 97 14 Profit of consolidated and affiliated companies 3,593 2,179 6,141 4,182 Less Profit (loss) attributable to noncontrolling interests (1) Profit 1 $ 3,593 $ 2,179 $ 6,142 $ 4,182 Profit per common share $ 7.80 $ 4.64 $ 13.29 $ 8.85 Profit per common share diluted 2 $ 7.77 $ 4.62 $ 13.23 $ 8.82 Weighted-average common shares outstanding (millions) Basic 460.4 469.7 462.0 472.4 Diluted 2 462.5 471.5 464.3 474.5 1 Profit attributable to common shareholders. 2 Diluted by assumed exercise of stock-based compensation awards using the treasury stock method. (more)16Caterpillar Inc.Condensed Consolidated Statement of Financial Position(Unaudited)(Millions of dollars) June 30,2026 December 31,2025 Assets Current assets Cash and cash equivalents $ 6,713 $ 9,980 Receivables trade and other 13,188 10,920 Receivables finance 10,844 10,649 Prepaid expenses and other current assets 3,078 2,801 Inventories 20,627 18,135 Total current assets 54,450 52,485 Property, plant and equipment net 15,628 15,140 Long-term receivables trade and other 3,086 2,142 Long-term receivables finance 14,364 14,272 Noncurrent deferred and refundable income taxes 2,286 2,882 Intangible assets 420 241 Goodwill 5,859 5,321 Other assets 6,516 6,102 Total assets $ 102,609 $ 98,585 Liabilities Current liabilities Short-term borrowings -- Financial Products $ 5,046 $ 5,514 Accounts payable 10,313 8,968 Accrued expenses 5,825 5,587 Accrued wages, salaries and employee benefits 2,148 2,554 Customer advances 4,777 3,314 Dividends payable 749 703 Other current liabilities 2,871 2,798 Long-term debt due within one year -- Machinery, Power Energy 35 35 -- Financial Products 8,026 7,085 Total current liabilities 39,790 36,558 Long-term debt due after one year -- Machinery, Power Energy 10,655 10,678 -- Financial Products 21,384 20,018 Liability for postemployment benefits 3,744 3,838 Other liabilities 7,642 6,175 Total liabilities 83,215 77,267 Shareholders equity Common stock 5,654 7,181 Treasury stock (54,533) (49,539) Profit employed in the business 70,141 65,448 Accumulated other comprehensive income (loss) (1,867) (1,772) Noncontrolling interests (1) Total shareholders equity 19,394 21,318 Total liabilities and shareholders equity $ 102,609 $ 98,585 (more)17Caterpillar Inc.Condensed Consolidated Statement of Cash Flow(Unaudited)(Millions of dollars) Six Months Ended June 30, 2026 2025 Cash flow from operating activities Profit of consolidated and affiliated companies $ 6,141 $ 4,182 Adjustments to reconcile profit to net cash provided by operating activities Depreciation and amortization 1,211 1,094 Provision (benefit) for deferred income taxes 644 (110) (Gain) loss on divestiture 139 Other (22) 398 Changes in assets and liabilities, net of acquisitions and divestitures Receivables trade and other (3,182) (319) Inventories (2,553) (1,639) Accounts payable 1,528 973 Accrued expenses 189 (12) Accrued wages, salaries and employee benefits (408) (805) Customer advances 2,576 1,276 Other assets net (93) (90) Other liabilities net 71 (537) Net cash provided by (used for) operating activities 6,241 4,411 Cash flow from investing activities Capital expenditures excluding equipment leased to others (1,315) (1,265) Expenditures for equipment leased to others (847) (608) Proceeds from disposals of leased assets and property, plant and equipment 436 365 Additions to finance receivables (8,639) (7,064) Collections of finance receivables 8,060 6,399 Proceeds from sale of finance receivables 33 18 Investments and acquisitions (net of cash acquired) (802) (21) Proceeds from sale of businesses and investments (net of cash sold) (92) 12 Proceeds from maturities and sale of securities 734 1,328 Investments in securities (1,155) (618) Other net 148 (53) Net cash provided by (used for) investing activities (3,439) (1,507) Cash flow from financing activities Dividends paid (1,399) (1,336) Common stock issued, and other stock compensation transactions, net (121) (59) Payments to purchase common stock (6,522) (4,488) Excise tax paid on purchases of common stock (49) (73) Proceeds from debt issued (original maturities greater than three months) 7,363 5,707 Payments on debt (original maturities greater than three months) (4,763) (4,168) Short-term borrowings net (original maturities three months or less) (542) 72 Net cash provided by (used for) financing activities (6,033) (4,345) Effect of exchange rate changes on cash (35) (7) Increase (decrease) in cash, cash equivalents and restricted cash (3,266) (1,448) Cash, cash equivalents and restricted cash at beginning of period 9,986 6,896 Cash, cash equivalents and restricted cash at end of period $ 6,720 $ 5,448 Cash equivalents primarily represent short-term, highly liquid investments with original maturities of generally three months or less. (more)18Caterpillar Inc.Supplemental Data for Results of OperationsFor the Three Months Ended June 30, 2026 (Unaudited)(Millions of dollars) Supplemental Consolidating Data Consolidated Machinery, Power Energy FinancialProducts ConsolidatingAdjustments Sales and revenues Sales of Machinery, Power Energy $ 19,581 $ 19,581 $ $ Revenues of Financial Products 962 1,188 (226) 1 Total sales and revenues 20,543 19,581 1,188 (226) Operating costs Cost of goods sold 12,781 12,783 (2) 2 Selling, general and administrative expenses 2,018 1,800 223 (5) 2 Research and development expenses 616 616 Interest expense of Financial Products 362 374 (12) 2 Other operating (income) expenses 471 168 328 (25) 2 Total operating costs 16,248 15,367 925 (44) Operating profit 4,295 4,214 263 (182) Interest expense excluding Financial Products 135 141 (6) 3 Other income (expense) 398 163 59 176 4 Consolidated profit before taxes 4,558 4,236 322 Provision (benefit) for income taxes 1,055 963 92 Profit of consolidated companies 3,503 3,273 230 Equity in profit (loss) of unconsolidated affiliated companies 90 90 Profit of consolidated and affiliated companies 3,593 3,363 230 Less Profit (loss) attributable to noncontrolling interests Profit 5 $ 3,593 $ 3,363 $ 230 $ 1 Elimination of Financial Products revenues earned from MP E. 2 Elimination of net expenses recorded between MP E and Financial Products. 3 Elimination of interest expense recorded between Financial Products and MP E. 4 Elimination of discount recorded by MP E on receivables sold to Financial Products and of interest earned between MP E and Financial Products as well as dividends paid by Financial Products to MP E. 5 Profit attributable to common shareholders. (more)19Caterpillar Inc.Supplemental Data for Results of OperationsFor the Three Months Ended June 30, 2025 (Unaudited)(Millions of dollars) Supplemental Consolidating Data Consolidated Machinery, Power Energy FinancialProducts ConsolidatingAdjustments Sales and revenues Sales of Machinery, Power Energy $ 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) 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) Other income (expense) 84 (101) 42 143 3 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 4 $ 2,179 $ 1,987 $ 192 $ 1 Elimination of Financial Products revenues earned from MP E. 2 Elimination of net expenses recorded by MP E paid to Financial Products. 3 Elimination of discount recorded by MP E on receivables sold to Financial Products and of interest earned between MP E and Financial Products as well as dividends paid by Financial Products to MP E. 4 Profit attributable to common shareholders. (more)20Caterpillar Inc.Supplemental Data for Results of OperationsFor the Six Months Ended June 30, 2026 (Unaudited)(Millions of dollars) Supplemental Consolidating Data Consolidated Machinery, Power Energy FinancialProducts ConsolidatingAdjustments Sales and revenues Sales of Machinery, Power Energy $ 36,054 $ 36,054 $ $ Revenues of Financial Products 1,904 2,331 (427) 1 Total sales and revenues 37,958 36,054 2,331 (427) Operating costs Cost of goods sold 24,087 24,091 (4) 2 Selling, general and administrative expenses 3,834 3,409 445 (20) 2 Research and development expenses 1,153 1,153 Interest expense of Financial Products 707 730 (23) 2 Other operating (income) expenses 797 188 656 (47) 2 Total operating costs 30,578 28,841 1,831 (94) Operating profit 7,380 7,213 500 (333) Interest expense excluding Financial Products 269 281 (12) 3 Other income (expense) 658 262 75 321 4 Consolidated profit before taxes 7,769 7,194 575 Provision (benefit) for income taxes 1,725 1,570 155 Profit of consolidated companies 6,044 5,624 420 Equity in profit (loss) of unconsolidated affiliated companies 97 97 Profit of consolidated and affiliated companies 6,141 5,721 420 Less Profit (loss) attributable to noncontrolling interests (1) (1) Profit 5 $ 6,142 $ 5,722 $ 420 $ 1 Elimination of Financial Products revenues earned from MP E. 2 Elimination of net expenses recorded between MP E and Financial Products. 3 Elimination of interest expense recorded between Financial Products and MP E. 4 Elimination of discount recorded by MP E on receivables sold to Financial Products and of interest earned between MP E and Financial Products as well as dividends paid by Financial Products to MP E. 5 Profit attributable to common shareholders. (more)21Caterpillar Inc.Supplemental Data for Results of OperationsFor the Six Months Ended June 30, 2025(Unaudited)(Millions of dollars) Supplemental Consolidating Data Consolidated Machinery, Power Energy FinancialProducts ConsolidatingAdjustments Sales and revenues Sales of Machinery, Power Energy $ 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) 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) Other income (expense) 191 (146) 60 277 3 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 4 $ 4,182 $ 3,825 $ 357 $ 1 Elimination of Financial Products revenues earned from MP E. 2 Elimination of net expenses recorded between MP E and Financial Products. 3 Elimination of discount recorded by MP E on receivables sold to Financial Products and of interest earned between MP E and Financial Products as well as dividends paid by Financial Products to MP E. 4 Profit attributable to common shareholders. (more)22Caterpillar Inc.Supplemental Data for Financial PositionAt June 30, 2026 (Unaudited)(Millions of dollars) Supplemental Consolidating Data Consolidated Machinery, Power Energy FinancialProducts ConsolidatingAdjustments Assets Current assets Cash and cash equivalents $ 6,713 $ 5,945 $ 768 $ Receivables trade and other 13,188 4,630 686 7,872 1,2 Receivables finance 10,844 18,938 (8,094) 2 Prepaid expenses and other current assets 3,078 2,683 423 (28) 3 Inventories 20,627 20,627 Total current assets 54,450 33,885 20,815 (250) Property, plant and equipment net 15,628 11,314 4,268 46 4 Long-term receivables trade and other 3,086 2,721 101 264 1,2 Long-term receivables finance 14,364 15,912 (1,548) 2 Noncurrent deferred and refundable income taxes 2,286 2,596 124 (434) 5 Intangible assets 420 420 Goodwill 5,859 5,859 Other assets 6,516 4,826 2,783 (1,093) 6 Total assets $ 102,609 $ 61,621 $ 44,003 $ (3,015) Liabilities Current liabilities Short-term borrowings $ 5,046 $ $ 5,046 $ Accounts payable 10,313 10,275 251 (213) 7 Accrued expenses 5,825 5,069 756 Accrued wages, salaries and employee benefits 2,148 2,098 50 Customer advances 4,777 4,774 3 Dividends payable 749 749 Other current liabilities 2,871 2,212 709 (50) 5,8,9 Long-term debt due within one year 8,061 35 8,026 Total current liabilities 39,790 25,212 14,841 (263) Long-term debt due after one year 32,039 10,948 22,384 (1,293) 9 Liability for postemployment benefits 3,744 3,743 1 Other liabilities 7,642 6,607 1,552 (517) 5 Total liabilities 83,215 46,510 38,778 (2,073) Shareholders equity Common stock 5,654 5,654 905 (905) 10 Treasury stock (54,533) (54,533) Profit employed in the business 70,141 64,890 5,219 32 10 Accumulated other comprehensive income (loss) (1,867) (901) (966) Noncontrolling interests (1) 1 67 (69) 10 Total shareholders equity 19,394 15,111 5,225 (942) Total liabilities and shareholders equity $ 102,609 $ 61,621 $ 44,003 $ (3,015) 1 Elimination of receivables between MP E and Financial Products. 2 Reclassification of MP E s trade receivables purchased by Financial Products and Financial Products wholesale inventory receivables. 3 Elimination of MP E's insurance premiums that are prepaid to Financial Products. 4 Reclassification of Financial Products other assets to property, plant and equipment. 5 Reclassification reflecting required netting of deferred tax assets liabilities by taxing jurisdiction. 6 Elimination of other intercompany assets and liabilities between MP E and Financial Products. 7 Elimination of payables between MP E and Financial Products. 8 Elimination of prepaid insurance in Financial Products other liabilities. 9 Elimination of debt between MP E and Financial Products. 10 Eliminations associated with MP E s investments in Financial Products subsidiaries. (more)23Caterpillar Inc.Supplemental Data for Financial PositionAt December 31, 2025 (Unaudited)(Millions of dollars) Supplemental Consolidating Data Consolidated Machinery, Power Energy FinancialProducts ConsolidatingAdjustments Assets Current assets Cash and cash equivalents $ 9,980 $ 9,333 $ 647 $ Receivables trade and other 10,920 3,883 657 6,380 1,2 Receivables finance 10,649 17,325 (6,676) 2 Prepaid expenses and other current assets 2,801 2,448 441 (88) 3 Inventories 18,135 18,135 Total current assets 52,485 33,799 19,070 (384) Property, plant and equipment net 15,140 10,985 4,106 49 4 Long-term receivables trade and other 2,142 1,982 163 (3) 1,2 Long-term receivables finance 14,272 15,538 (1,266) 2 Noncurrent deferred and refundable income taxes 2,882 3,208 133 (459) 5 Intangible assets 241 241 Goodwill 5,321 5,321 Other assets 6,102 4,525 2,651 (1,074) 6 Total assets $ 98,585 $ 60,061 $ 41,661 $ (3,137) Liabilities Current liabilities Short-term borrowings $ 5,514 $ $ 5,514 $ Accounts payable 8,968 8,988 268 (288) 7 Accrued expenses 5,587 4,877 710 Accrued wages, salaries and employee benefits 2,554 2,494 60 Customer advances 3,314 3,311 3 Dividends payable 703 703 Other current liabilities 2,798 2,259 645 (106) 5,8 Long-term debt due within one year 7,120 35 7,085 Total current liabilities 36,558 22,667 14,285 (394) Long-term debt due after one year 30,696 10,955 21,018 (1,277) 9 Liability for postemployment benefits 3,838 3,837 1 Other liabilities 6,175 5,162 1,516 (503) 5 Total liabilities 77,267 42,621 36,820 (2,174) Shareholders equity Common stock 7,181 7,181 905 (905) 10 Treasury stock (49,539) (49,539) Profit employed in the business 65,448 60,639 4,799 10 10 Accumulated other comprehensive income (loss) (1,772) (843) (929) Noncontrolling interests 2 66 (68) 10 Total shareholders equity 21,318 17,440 4,841 (963) Total liabilities and shareholders equity $ 98,585 $ 60,061 $ 41,661 $ (3,137) 1 Elimination of receivables between MP E and Financial Products. 2 Reclassification of MP E s trade receivables purchased by Financial Products and Financial Products wholesale inventory receivables. 3 Elimination of MP E s insurance premiums that are prepaid to Financial Products. 4 Reclassification of Financial Products other assets to property, plant and equipment. 5 Reclassification reflecting required netting of deferred tax assets liabilities by taxing jurisdiction. 6 Elimination of other intercompany assets and liabilities between MP E and Financial Products. 7 Elimination of payables between MP E and Financial Products. 8 Elimination of prepaid insurance in Financial Products other liabilities. 9 Elimination of debt between MP E and Financial Products. 10 Eliminations associated with MP E s investments in Financial Products subsidiaries. (more)24Caterpillar Inc.Supplemental Data for Cash Flow For the Six Months Ended June 30, 2026 (Unaudited) (Millions of dollars) Supplemental Consolidating Data Consolidated Machinery, Power Energy FinancialProducts ConsolidatingAdjustments Cash flow from operating activities Profit of consolidated and affiliated companies $ 6,141 $ 5,721 $ 420 $ Adjustments to reconcile profit to net cash provided by operating activities Depreciation and amortization 1,211 812 399 Provision (benefit) for deferred income taxes 644 666 (22) (Gain) loss on divestiture 139 139 Other (22) (74) (271) 323 1 Changes in assets and liabilities, net of acquisitions and divestitures Receivables trade and other (3,182) (1,356) (27) (1,799) 1,2 Inventories (2,553) (2,552) (1) 1 Accounts payable 1,528 1,518 (65) 75 1 Accrued expenses 189 183 6 Accrued wages, salaries and employee benefits (408) (399) (9) Customer advances 2,576 2,576 Other assets net (93) (111) 35 (17) 1 Other liabilities net 71 (112) 148 35 1 Net cash provided by (used for) operating activities 6,241 7,011 614 (1,384) Cash flow from investing activities Capital expenditures excluding equipment leased to others (1,315) (1,302) (16) 3 1 Expenditures for equipment leased to others (847) (11) (840) 4 1 Proceeds from disposals of leased assets and property, plant and equipment 436 35 407 (6) 1 Additions to finance receivables (8,639) (10,312) 1,673 2 Collections of finance receivables 8,060 9,188 (1,128) 2 Net intercompany purchased receivables (838) 838 2 Proceeds from sale of finance receivables 33 33 Collections of intercompany receivables (original maturities greater than three months) 48 (48) 3 Investments and acquisitions (net of cash acquired) (802) (802) Proceeds from sale of businesses and investments (net of cash sold) (92) (92) Proceeds from maturities and sale of securities 734 395 339 Investments in securities (1,155) (648) (507) Other net 148 230 (82) Net cash provided by (used for) investing activities (3,439) (2,195) (2,580) 1,336 Cash flow from financing activities Dividends paid (1,399) (1,399) Common stock issued, and other stock compensation transactions, net (121) (121) Payments to purchase common stock (6,522) (6,522) Excise tax paid on purchases of common stock (49) (49) Payments on intercompany borrowings (original maturities greater than three months) (48) 48 3 Proceeds from debt issued (original maturities greater than three months) 7,363 7,363 Payments on debt (original maturities greater than three months) (4,763) (19) (4,744) Short-term borrowings net (original maturities three months or less) (542) (542) Net cash provided by (used for) financing activities (6,033) (8,158) 2,077 48 Effect of exchange rate changes on cash (35) (44) 9 Increase (decrease) in cash, cash equivalents and restricted cash (3,266) (3,386) 120 Cash, cash equivalents and restricted cash at beginning of period 9,986 9,336 650 Cash, cash equivalents and restricted cash at end of period $ 6,720 $ 5,950 $ 770 $ 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 MP E and Financial Products. (more)25Caterpillar Inc.Supplemental Data for Cash Flow For the Six Months Ended June 30, 2025 (Unaudited) (Millions of dollars) Supplemental Consolidating Data Consolidated Machinery, Power Energy FinancialProducts ConsolidatingAdjustments 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, and other stock compensation transactions, net (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 MP E and Financial Products. #

EX-99.2 3 ex992toformcat2q2026retail.htm EX-99.2 DocumentEXHIBIT 99.2Caterpillar Inc. ( Caterpillar , we or our ) is furnishing supplemental information concerning (i) retail sales of machines (including locomotives) to end users and (ii) retail sales of power systems (including reciprocating and turbine engines) to end users and Original Equipment Manufacturers ( OEMs ). Caterpillar sells the majority of its machinery and power systems to independently owned and operated dealers and OEMs to meet the demands of their customers, the end users. Caterpillar believes that this supplemental information may help readers better understand Caterpillar s business and the industries it serves, particularly in light of the time delay between Caterpillar s sales to dealers and dealers sales to end users.In this report, we are providing retail sales information by major end use for our Power Energy reportable segment. Power Energy segment retail sales by end user application previously included the Transportation application, which was comprised of retail sales into marine and rail applications, as well as product support for on-highway engines. As part of the realignment of the Rail division to Resource Industries, retail sales into marine applications and product support for on-highway engines are now reported within the Industrial application. We are providing information by geographic region for retail sales of machines in our Construction Industries reportable segment. We are providing information by industry for retail sales of machines in our Resource Industries reportable segment. The information presented in this report is primarily based on unaudited reports that are voluntarily provided to Caterpillar by its independent dealers and which are not subject to Caterpillar s internal controls over financial reporting. Accordingly, the data collected from such third parties may not be accurate and or complete. As such, the information presented in this report is intended solely to convey an approximate indication of the trends, direction and magnitude of retail sales and is not intended to be an estimate, approximation or prediction of, or substitute for, Caterpillar s audited financial statements filed with the U.S. Securities and Exchange Commission. This information is furnished under this report with the U.S. Securities and Exchange Commission. Caterpillar does not undertake to update or adjust prior period information. Caterpillar Inc.Quarterly Retail Sales Statistics Total Combined 2nd Quarter 2026 1st Quarter 2026 4th Quarter 2025 3rd Quarter 2025 2nd Quarter 2025 Total UP 25% UP 14% UP 15% UP 12% UP 3% Power Energy (P E) 2nd Quarter 2026 1st Quarter 2026 4th Quarter 2025 3rd Quarter 2025 2nd Quarter 2025 Power Generation UP 72% UP 48% UP 44% UP 33% UP 19% Oil Gas UP 6% UP 16% UP 36% UP 19% UP 4% Industrial DOWN 8% UP 3% UP 14% UP 9% UP 6% Total UP 33% UP 32% UP 37% UP 23% UP 10% Reported in dollars based on reporting from dealers and direct sales. Construction Industries (CI) 2nd Quarter 2026 1st Quarter 2026 4th Quarter 2025 3rd Quarter 2025 2nd Quarter 2025 North America UP 27% UP 12% UP 18% UP 11% UP 3% Latin America UP 24% UP 4% UP 6% UP 2% DOWN 7% EAME UP 13% DOWN 2% DOWN 1% UP 7% UP 5% Asia Pacific UP 8% UNCHANGED DOWN 2% DOWN 9% DOWN 2% World UP 22% UP 7% UP 11% UP 7% UP 2% Reported in price neutral dollars and based on unit sales as reported by dealers. Resource Industries (RI) 2nd Quarter 2026 1st Quarter 2026 4th Quarter 2025 3rd Quarter 2025 2nd Quarter 2025 Mining, HC and Q A UP 15% UP 6% DOWN 7% UP 6% DOWN 3% Rail UP 272% DOWN 4% UP 26% UP 114% DOWN 66% Total UP 17% UP 6% DOWN 5% UP 8% DOWN 5% Mining, Heavy Construction and Quarry Aggregates (HC and Q A) reported in price neutral dollars and based on unit sales as reported primarily by dealers. Rail is reported in dollars based on direct sales. Glossary of TermsConstruction 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.EAME A geographic region including Europe, Africa, the Middle East and Eurasia.Power Energy A segment primarily responsible for supporting customers using reciprocating engines, turbines and related services across industries serving Power Generation, Oil and Gas, and Industrial applications, including marine applications and 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 oil and gas industry reciprocating engines, drivetrain and integrated systems and solutions supplied to the industrial industry as well as Caterpillar machines and electrified powertrain and zero-emission power sources and service solutions. Responsibilities also include the remanufacturing of Caterpillar reciprocating engines and engine and machine components and remanufacturing services for other companies.Resource Industries A segment primarily responsible for supporting customers using machinery in mining, heavy construction and quarry and aggregates as well as customers using locomotives and rail-related products and services. 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 wear and maintenance components and related parts diesel-electric, hybrid and battery-electric locomotives and components and other rail-related products and services, including remanufacturing and leasing. In addition, Resource Industries 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 component design and manufacturing and research and development for hydraulic systems and cabs. FORWARD-LOOKING STATEMENTSCertain statements in this report 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 in Caterpillar s Forms 10-Q, 10-K and other filings with the Securities and Exchange Commission.