Caterpillar Reports Fourth-Quarter and Full-Year 2024 Results

Fourth-quarter 2024 sales and revenues were $16.2 billion; full-year sales and revenues were $64.8 billion Fourth-quarter 2024 profit per share of $5.78; adjusted profit per share of $5.14 Full-year profit per share of $22.05; adjusted profit per share of $21.90 Strong enterprise operating cash flow of $12.0 billion; ended the year with $6.9 billion of enterprise cash Deployed $10.3 billion of cash for share repurchases and dividends in 2024 Fourth Quarter Full Year ($ in billions except profit per share) 2024 2023 2024 2023 Sales and Revenues $16.2 $17.1 $64.8 $67.1 Profit Per Share $5.78 $5.28 $22.05 $20.12 Adjusted Profit Per Share $5.14 $5.23 $21.90 $21.21 Please see a reconciliation of GAAP to non-GAAP financial measures in the appendix on pages 14 to 16. , /PRNewswire/ -- Caterpillar Inc. (NYSE: CAT) announced fourth-quarter and full-year results for 2024. Sales and revenues for the fourth quarter of 2024 were $16.2 billion, a 5% decrease compared with $17.1 billion in the fourth quarter of 2023. Operating profit margin was 18.0% for the fourth quarter of 2024, compared with 18.4% for the fourth quarter of 2023. Adjusted operating profit margin was 18.3% for the fourth quarter of 2024, compared with 18.9% for the fourth quarter of 2023. Fourth-quarter 2024 profit per share was $5.78, compared with $5.28 profit per share in the fourth quarter of 2023. Adjusted profit per share in the fourth quarter of 2024 was $5.14, compared with fourth-quarter 2023 adjusted profit per share of $5.23. Full-year sales and revenues in 2024 were $64.8 billion, down 3% compared with $67.1 billion in 2023. The decrease reflected lower sales volume of $3.5 billion, partially offset by favorable price realization of $1.2 billion. Lower sales volume was primarily driven by lower sales of equipment to end users. Operating profit margin was 20.2% in 2024, compared with 19.3% in 2023. Adjusted operating profit margin was 20.7% in 2024, compared with 20.5% in 2023. Full-year profit was $22.05 per share in 2024, compared with profit of $20.12 per share in 2023. Adjusted profit per share in 2024 was $21.90, compared with adjusted profit per share of $21.21 in 2023. "I'm proud of our global team's strong performance in 2024 as they delivered record adjusted profit per share and strong ME&T free cash flow," said Caterpillar Chairman and CEO Jim Umpleby. "As we kick off our centennial year, we remain committed to serving our customers, executing our strategy and continuing to invest for long-term profitable growth." In 2024, adjusted operating profit margin and adjusted profit per share excluded restructuring costs. 2024 adjusted profit per share also excluded a discrete tax benefit for a tax law change related to currency translation and excluded mark-to-market gains for remeasurement of pension and other postemployment benefit (OPEB) plans. In 2023, adjusted operating profit margin and adjusted profit per share excluded restructuring costs, which included the impact of the divestiture of the company's Longwall business and other restructuring costs. 2023 adjusted profit per share also excluded a benefit for certain deferred tax valuation allowance adjustments and mark-to-market gains for remeasurement of pension and OPEB plans. Please see a reconciliation of GAAP to non-GAAP financial measures in the appendix on pages 14 to 16. For the full year 2024, enterprise operating cash flow was $12.0 billion, and the company ended the fourth quarter with $6.9 billion of enterprise cash. During the year, the company deployed $7.7 billion of cash for repurchases of Caterpillar common stock and $2.6 billion of cash for dividends. CONSOLIDATED RESULTS Consolidated Sales and Revenues Consolidated Sales and Revenues Comparison Fourth Quarter 2024 vs. Fourth Quarter 2023 To access this chart, go to https://investors.caterpillar.com/financials/quarterly-results/default.aspx for the downloadable version of Caterpillar fourth-quarter 2024 earnings. The chart above graphically illustrates reasons for the change in consolidated sales and revenues between the fourth quarter of 2023 (at left) and the fourth quarter of 2024 (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 fourth quarter of 2024 were $16.215 billion, a decrease of $855 million, or 5%, compared with $17.070 billion in the fourth quarter of 2023. The decrease was primarily due to lower sales volume of $859 million. The decrease in sales volume was mainly driven by the impact from changes in dealer inventories and lower sales of equipment to end users. Dealer inventory decreased by $1.3 billion during the fourth quarter of 2024, compared with a decrease of $900 million during the fourth quarter of 2023. Sales were lower across the three primary segments. Sales and Revenues by Segment (Millions of dollars) FourthQuarter2023 Sales Volume Price Realization Currency Inter-Segment /Other FourthQuarter2024 $ Change % Change Construction Industries $ 6,519 $ (227) $ (300) $ (2) $ 13 $ 6,003 $ (516) (8 %) Resource Industries 3,242 (316) 26 3 7 2,962 (280) (9 %) Energy & Transportation 7,669 (301) 221 8 52 7,649 (20) — % All Other Segment 116 (7) 1 — 6 116 — — % Corporate Items and Eliminations (1,309) (8) (2) (1) (78) (1,398) (89) Machinery, Energy & Transportation 16,237 (859) (54) 8 — 15,332 (905) (6 %) Financial Products Segment 981 — — — 43 1,024 43 4 % Corporate Items and Eliminations (148) — — — 7 (141) 7 Financial Products Revenues 833 — — — 50 883 50 6 % Consolidated Sales and Revenues $ 17,070 $ (859) $ (54) $ 8 $ 50 $ 16,215 $ (855) (5 %) Sales and Revenues by Geographic Region North America Latin America EAME Asia/Pacific External Salesand Revenues Inter-Segment Total Salesand Revenues (Millions of dollars) $ % Chg $ % Chg $ % Chg $ % Chg $ % Chg $ % Chg $ % Chg Fourth Quarter 2024 Construction Industries $ 3,157 (14 %) $ 623 6 % $ 1,122 (1 %) $ 1,057 (2 %) $ 5,959 (8 %) $ 44 42 % $ 6,003 (8 %) Resource Industries 960 (23 %) 579 9 % 455 2 % 872 (7 %) 2,866 (9 %) 96 8 % 2,962 (9 %) Energy & Transportation 3,532 6 % 467 (32 %) 1,586 (3 %) 931 (1 %) 6,516 (1 %) 1,133 5 % 7,649 — % All Other Segment 13 (13 %) 1 — % 1 (80 %) 11 (8 %) 26 (19 %) 90 7 % 116 — % Corporate Items and Eliminations (29) — (2) (4) (35) (1,363) (1,398) Machinery, Energy & Transportation 7,633 (7 %) 1,670 (7 %) 3,162 (2 %) 2,867 (4 %) 15,332 (6 %) — — % 15,332 (6 %) Financial Products Segment 680 5 % 103 3 % 128 1 % 113 4 % 1,024 4 % — — % 1,024 4 % Corporate Items and Eliminations (77) (21) (22) (21) (141) — (141) Financial Products Revenues 603 8 % 82 (1 %) 106 1 % 92 5 % 883 6 % — — % 883 6 % Consolidated Sales and Revenues $ 8,236 (6 %) $ 1,752 (7 %) $ 3,268 (2 %) $ 2,959 (3 %) $ 16,215 (5 %) $ — — % $ 16,215 (5 %) Fourth Quarter 2023 Construction Industries $ 3,689 $ 587 $ 1,129 $ 1,083 $ 6,488 $ 31 $ 6,519 Resource Industries 1,240 529 445 939 3,153 89 3,242 Energy & Transportation 3,324 684 1,638 942 6,588 1,081 7,669 All Other Segment 15 — 5 12 32 84 116 Corporate Items and Eliminations (18) (2) (2) (2) (24) (1,285) (1,309) Machinery, Energy & Transportation 8,250 1,798 3,215 2,974 16,237 — 16,237 Financial Products Segment 645 100 127 109 981 — 981 Corporate Items and Eliminations (88) (17) (22) (21) (148) — (148) Financial Products Revenues 557 83 105 88 833 — 833 Consolidated Sales and Revenues $ 8,807 $ 1,881 $ 3,320 $ 3,062 $ 17,070 $ — $ 17,070 Consolidated Operating Profit Consolidated Operating Profit ComparisonFourth Quarter 2024 vs. Fourth Quarter 2023 To access this chart, go to https://investors.caterpillar.com/financials/quarterly-results/default.aspx for the downloadable version of Caterpillar fourth-quarter 2024 earnings. The chart above graphically illustrates reasons for the change in consolidated operating profit between the fourth quarter of 2023 (at left) and the fourth quarter of 2024 (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, Energy & Transportation's other operating (income) expenses. Operating profit for the fourth quarter of 2024 was $2.924 billion, a decrease of $210 million, or 7%, compared with $3.134 billion in the fourth quarter of 2023. The decrease was primarily due to the profit impact of lower sales volume. Operating profit margin was 18.0% for the fourth quarter of 2024, compared with 18.4% for the fourth quarter of 2023. Adjusted operating profit margin was 18.3% for the fourth quarter of 2024, compared with 18.9% for the fourth quarter of 2023. Profit (Loss) by Segment (Millions of dollars) Fourth Quarter2024 Fourth Quarter2023 $ Change % Change Construction Industries $ 1,174 $ 1,535 $ (361) (24 %) Resource Industries 466 600 (134) (22 %) Energy & Transportation 1,477 1,429 48 3 % All Other Segment 16 (24) 40 167 % Corporate Items and Eliminations (198) (438) 240 Machinery, Energy & Transportation 2,935 3,102 (167) (5 %) Financial Products Segment 166 234 (68) (29 %) Corporate Items and Eliminations (29) (46) 17 Financial Products 137 188 (51) (27 %) Consolidating Adjustments (148) (156) 8 Consolidated Operating Profit $ 2,924 $ 3,134 $ (210) (7 %) Other Profit/Loss and Tax Items Other income (expense) in the fourth quarter of 2024 was income of $426 million, compared with income of $241 million in the fourth quarter of 2023. The change was primarily driven by favorable foreign currency impacts. The effective tax rate for the fourth quarter of 2024 was 14.3% compared to 18.1% for the fourth quarter of 2023. Excluding the discrete items discussed below, the annual tax rate was 22.2% for the fourth quarter of 2024 compared to 21.4% for the fourth quarter of 2023. The increase from 2023 was primarily related to changes in the geographic mix of profits from a tax perspective.In the fourth quarter of 2024, the company recorded a discrete tax benefit of $224 million for a tax law change related to currency translation. The company recorded a $33 million benefit in the fourth quarter of 2024 compared to a $112 million benefit in the fourth quarter of 2023 for the change in the estimated annual tax rate through the first nine months. The company also recorded a tax charge of $43 million related to $154 million of mark-to-market gains for remeasurement of pension and OPEB plans in the fourth quarter of 2024, compared to a tax charge of $26 million related to $97 million of mark-to-market gains in the fourth quarter of 2023. In addition, a discrete tax benefit of $8 million was recorded in the fourth quarter of 2024, compared with a $3 million benefit in the fourth quarter of 2023, for the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S. GAAP compensation expense. Please see a reconciliation of GAAP to non-GAAP financial measures in the appendix on pages 14 to 16. CONSTRUCTION INDUSTRIES (Millions of dollars) Segment Sales FourthQuarter 2023 SalesVolume PriceRealization Currency Inter-Segment FourthQuarter 2024 $ Change % Change Total Sales $ 6,519 $ (227) $ (300) $ (2) $ 13 $ 6,003 $ (516) (8 %) Sales by Geographic Region FourthQuarter 2024 FourthQuarter 2023 $ Change % Change North America $ 3,157 $ 3,689 $ (532) (14 %) Latin America 623 587 36 6 % EAME 1,122 1,129 (7) (1 %) Asia/Pacific 1,057 1,083 (26) (2 %) External Sales 5,959 6,488 (529) (8 %) Inter-segment 44 31 13 42 % Total Sales $ 6,003 $ 6,519 $ (516) (8 %) Segment Profit FourthQuarter 2024 FourthQuarter 2023 Change % Change Segment Profit $ 1,174 $ 1,535 $ (361) (24 %) Segment Profit Margin 19.6 % 23.5 % (3.9 pts) Construction Industries' total sales were $6.003 billion in the fourth quarter of 2024, a decrease of $516 million, or 8%, compared with $6.519 billion in the fourth quarter of 2023. The decrease was primarily due to unfavorable price realization of $300 million and lower sales volume of $227 million. The decrease in sales volume was mainly driven by lower sales of equipment to end users and by the impact from changes in dealer inventories. Dealer inventory decreased more during the fourth quarter of 2024 than during the fourth quarter of 2023. In North America, sales decreased due to lower sales volume and unfavorable price realization. Lower sales volume was mainly driven by the impact from changes in dealer inventories. Dealer inventory decreased more during the fourth quarter of 2024 than during the fourth quarter of 2023. Sales increased in Latin America due to higher sales volume, partially offset by unfavorable currency impacts, primarily related to the Brazilian real, and unfavorable price realization. Higher sales volume was mainly driven by the impact from changes in dealer inventories. Dealer inventory decreased less during the fourth quarter of 2024 than during the fourth quarter of 2023. In EAME, sales decreased slightly due to unfavorable price realization, partially offset by higher sales volume and favorable currency impacts, primarily related to the euro. Higher sales volume was mainly due to the impact from changes in dealer inventories, partially offset by lower sales of equipment to end users. Dealer inventory decreased less during the fourth quarter of 2024 than during the fourth quarter of 2023. Sales decreased in Asia/Pacific due to unfavorable price realization and lower sales volume, partially offset by favorable currency impacts primarily related to the Australian dollar. Lower sales volume was mainly due to lower sales of equipment to end users, partially offset by the impact from changes in dealer inventories. Dealer inventory decreased less during the fourth quarter of 2024 than during the fourth quarter of 2023. Construction Industries' segment profit was $1.174 billion in the fourth quarter of 2024, a decrease of $361 million, or 24%, compared with $1.535 billion in the fourth quarter of 2023. The decrease was primarily due to unfavorable price realization. RESOURCE INDUSTRIES (Millions of dollars) Segment Sales FourthQuarter 2023 SalesVolume PriceRealization Currency Inter-Segment FourthQuarter 2024 $ Change % Change Total Sales $ 3,242 $ (316) $ 26 $ 3 $ 7 $ 2,962 $ (280) (9 %) Sales by Geographic Region FourthQuarter 2024 FourthQuarter 2023 $ Change % Change North America $ 960 $ 1,240 $ (280) (23 %) Latin America 579 529 50 9 % EAME 455 445 10 2 % Asia/Pacific 872 939 (67) (7 %) External Sales 2,866 3,153 (287) (9 %) Inter-segment 96 89 7 8 % Total Sales $ 2,962 $ 3,242 $ (280) (9 %) Segment Profit FourthQuarter 2024 FourthQuarter 2023 Change % Change Segment Profit $ 466 $ 600 $ (134) (22 %) Segment Profit Margin 15.7 % 18.5 % (2.8 pts) Resource Industries' total sales were $2.962 billion in the fourth quarter of 2024, a decrease of $280 million, or 9%, compared with $3.242 billion in the fourth quarter of 2023. The decrease was primarily due to lower sales volume. The decrease in sales volume was mainly driven by the impact from changes in dealer inventories. Dealer inventory decreased more during the fourth quarter of 2024 than during the fourth quarter of 2023. Resource Industries' segment profit was $466 million in the fourth quarter of 2024, a decrease of $134 million, or 22%, compared with $600 million in the fourth quarter of 2023. The decrease was primarily due to the profit impact of lower sales volume. ENERGY & TRANSPORTATION (Millions of dollars) Segment Sales FourthQuarter 2023 SalesVolume PriceRealization Currency Inter-Segment FourthQuarter 2024 $ Change % Change Total Sales $ 7,669 $ (301) $ 221 $ 8 $ 52 $ 7,649 $ (20) — % Sales by Application FourthQuarter 2024 FourthQuarter 2023 $ Change % Change Oil and Gas $ 1,927 $ 2,247 $ (320) (14 %) Power Generation 2,242 1,835 407 22 % Industrial 928 1,078 (150) (14 %) Transportation 1,419 1,428 (9) (1 %) External Sales 6,516 6,588 (72) (1 %) Inter-segment 1,133 1,081 52 5 % Total Sales $ 7,649 $ 7,669 $ (20) — % Segment Profit FourthQuarter 2024 FourthQuarter 2023 Change % Change Segment Profit $ 1,477 $ 1,429 $ 48 3 % Segment Profit Margin 19.3 % 18.6 % 0.7 pts Energy & Transportation's total sales were $7.649 billion in the fourth quarter of 2024, a decrease of $20 million, compared with $7.669 billion in the fourth quarter of 2023. The decrease in sales was primarily due to lower sales volume of $301 million, partially offset by favorable price realization of $221 million and higher inter-segment sales of $52 million. Oil and Gas – Sales decreased in reciprocating engines used in well servicing and gas compression applications. Sales also decreased for turbines and turbine-related services. Power Generation – Sales increased in large reciprocating engines, primarily data center applications. Turbines and turbine-related services increased as well. Industrial – Sales decreased primarily in North America and Asia/Pacific. Transportation – Sales decreased slightly as lower sales of reciprocating engine aftermarket parts and international locomotive deliveries were mostly offset by increased sales in rail services and marine. Energy & Transportation's segment profit was $1.477 billion in the fourth quarter of 2024, an increase of $48 million, or 3%, compared with $1.429 billion in the fourth quarter of 2023. The increase was primarily due to favorable price realization of $221 million, partially offset by the profit impact of lower sales volume of $158 million and unfavorable manufacturing costs of $17 million. Unfavorable manufacturing costs largely reflected increased period manufacturing costs. FINANCIAL PRODUCTS SEGMENT (Millions of dollars) Revenues by Geographic Region FourthQuarter 2024 FourthQuarter 2023 $ Change % Change North America $ 680 $ 645 $ 35 5 % Latin America 103 100 3 3 % EAME 128 127 1 1 % Asia/Pacific 113 109 4 4 % Total Revenues $ 1,024 $ 981 $ 43 4 % Segment Profit FourthQuarter 2024 FourthQuarter 2023 Change % Change Segment Profit $ 166 $ 234 $ (68) (29 %) Financial Products' segment revenues were $1.024 billion in the fourth quarter of 2024, an increase of $43 million, or 4%, compared with $981 million in the fourth quarter of 2023. The increase was primarily due to a favorable impact from higher average earning assets of $29 million driven by North America, and a favorable impact from higher average financing rates across all regions except North America of $11 million. Financial Products' segment profit was $166 million in the fourth quarter of 2024, a decrease of $68 million, or 29%, compared with $234 million in the fourth quarter of 2023. The decrease was mainly due to an unfavorable impact from equity securities of $23 million, an unfavorable impact from lower margin of $17 million and higher provision for credit losses at Cat Financial of $17 million. At the end of 2024, past dues at Cat Financial were 1.56%, compared with 1.79% at the end of 2023. Write-offs, net of recoveries, were $115 million for 2024, compared with $65 million for 2023. As of December 31, 2024, Cat Financial's allowance for credit losses totaled $267 million, or 0.91% of finance receivables, compared with $331 million, or 1.18% of finance receivables, at December 31, 2023. Corporate Items and Eliminations Expense for corporate items and eliminations was $227 million in the fourth quarter of 2024, a decrease of $257 million from the fourth quarter of 2023, primarily driven by decreased expenses due to timing differences, a favorable change in fair value adjustments related to deferred compensation plans and lower restructuring costs. Notes i. 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 Thursday, Jan. 30, 2025.iii. Information on non-GAAP financial measures is included in the appendix on pages 14 to 16.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 Thursday, Jan. 30, 2025, to discuss its 2024 fourth-quarter and full-year results. The accompanying slides will be available before the webcast on the Caterpillar website at https://investors.caterpillar.com/events-presentations/default.aspx. About Caterpillar With 2024 sales and revenues of $64.8 billion, Caterpillar Inc. is the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. For 100 years, we've been helping customers build a better, more sustainable world and are committed and contributing to a reduced-carbon future. Our innovative products and services, backed by our global dealer network, provide exceptional value that helps customers succeed. Caterpillar does business on every continent, principally operating through three primary segments – Construction Industries, Resource Industries and Energy & Transportation – and providing financing and related services through our Financial Products segment. Visit us at caterpillar.com or join the conversation on our social media channels at caterpillar.com/en/news/social-media.html. Caterpillar's latest financial results are also available online: https://investors.caterpillar.com/overview/default.aspx https://investors.caterpillar.com/financials/quarterly-results/default.aspx(live broadcast/replays of quarterly conference call) Forward-Looking Statements Certain 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. APPENDIX NON-GAAP FINANCIAL MEASURES The 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 six significant items in order for the company's results to be meaningful to readers. These items consist of (i) restructuring income/costs related to the divestitures of certain non-U.S. entities in 2024, (ii) other restructuring income/costs, (iii) pension and OPEB mark-to-market gains/losses resulting from plan remeasurements, (iv) a discrete tax benefit for a tax law change related to currency translation in 2024, (v) restructuring costs related to the divestiture of the company's Longwall business in 2023 and (vi) certain deferred tax valuation allowance adjustments in 2023. The company does not consider these items 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. Reconciliations of adjusted results to the most directly comparable GAAP measure are as follows: (Dollars in millions except per share data) OperatingProfit OperatingProfitMargin ProfitBeforeTaxes Provision(Benefit) forIncomeTaxes Profit Profit perShare Three Months Ended December 31, 2024 - U.S. GAAP $ 2,924 18.0 % $ 3,243 $ 463 $ 2,791 $ 5.78 Other restructuring (income) costs 37 0.3 % 37 10 27 0.05 Pension/OPEB mark-to-market (gains) losses — — % (154) (43) (111) (0.23) Tax law change related to currency translation — — % — 224 (224) (0.46) Three Months Ended December 31, 2024 - Adjusted $ 2,961 18.3 % $ 3,126 $ 654 $ 2,483 $ 5.14 Three Months Ended December 31, 2023 - U.S. GAAP $ 3,134 18.4 % $ 3,249 $ 587 $ 2,676 $ 5.28 Other restructuring (income) costs 92 0.5 % 92 27 65 0.13 Pension/OPEB mark-to-market (gains) losses — — % (97) (26) (71) (0.14) Deferred tax valuation allowance adjustments — — % — 18 (18) (0.04) Three Months Ended December 31, 2023 - Adjusted $ 3,226 18.9 % $ 3,244 $ 606 $ 2,652 $ 5.23 Twelve Months Ended December 31, 2024 - U.S. GAAP $ 13,072 20.2 % $ 13,373 $ 2,629 $ 10,792 $ 22.05 Restructuring (income) costs - divestitures of certain non-U.S. entities 164 0.2 % 164 54 110 0.22 Other restructuring (income) costs 195 0.3 % 195 46 149 0.32 Pension/OPEB mark-to-market (gains) losses — — % (154) (43) (111) (0.23) Tax law change related to currency translation — — % — 224 (224) (0.46) Twelve Months Ended December 31, 2024 - Adjusted $ 13,431 20.7 % $ 13,578 $ 2,910 $ 10,716 $ 21.90 Twelve Months Ended December 31, 2023 - U.S. GAAP $ 12,966 19.3 % $ 13,050 $ 2,781 $ 10,335 $ 20.12 Restructuring costs - Longwall divestiture 586 0.9 % 586 — 586 1.14 Other restructuring (income) costs 194 0.3 % 194 48 146 0.30 Pension/OPEB mark-to-market (gains) losses — — % (97) (26) (71) (0.14) Deferred tax valuation allowance adjustments — — % — 106 (106) (0.21) Twelve Months Ended December 31, 2023 - Adjusted $ 13,746 20.5 % $ 13,733 $ 2,909 $ 10,890 $ 21.21 The 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 and twelve months ended December 31, 2024, and 2023, these items consist of (i) pension and OPEB mark-to-market gains/losses resulting from plan remeasurements, (ii) the decrease in the annual effective tax rate, (iii) a discrete tax benefit for a tax law change related to currency translation in 2024, (iv) a settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S. GAAP compensation expense, (v) restructuring income/costs related to the divestitures of certain non-U.S. entities in 2024, (vi) the impact of changes in estimates related to prior years in 2024, (vii) restructuring costs related to divestiture of the company's Longwall business in 2023 and (viii) deferred tax valuation allowance adjustments in 2023. 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 BeforeTaxes Provision (Benefit) forIncome Taxes Effective TaxRate Three Months Ended December 31, 2024 - U.S. GAAP $ 3,243 $ 463 14.3 % Pension/OPEB mark-to-market (gains) losses (154) (43) Tax law change related to currency translation — 224 Decrease in annual effective tax rate — 33 Excess stock-based compensation — 8 Annual effective tax rate, excluding discrete items $ 3,089 $ 685 22.2 % Decrease in annual effective tax rate — (33) Excess stock-based compensation — (8) Other restructuring (income) costs 37 10 Three Months Ended December 31, 2024 - Adjusted $ 3,126 $ 654 Three Months Ended December 31, 2023 - U.S. GAAP $ 3,249 $ 587 18.1 % Pension/OPEB mark-to-market (gains) losses (97) (26) Decrease in annual effective tax rate — 112 Excess stock-based compensation — 3 Annual effective tax rate, excluding discrete items $ 3,152 $ 676 21.4 % Decrease in annual effective tax rate — (112) Deferred tax valuation allowance adjustments — 18 Excess stock-based compensation — (3) Other restructuring (income) costs 92 27 Three Months Ended December 31, 2023 - Adjusted $ 3,244 $ 606 Twelve Months Ended December 31, 2024 - U.S. GAAP $ 13,373 $ 2,629 19.7 % Restructuring (income) costs - divestitures of certain non-U.S. entities 164 54 Pension/OPEB mark-to-market (gains) losses (154) (43) Tax law change related to currency translation — 224 Changes in estimates related to prior years — 47 Excess stock-based compensation — 57 Annual effective tax rate, excluding discrete items $ 13,383 $ 2,968 22.2 % Changes in estimates related to prior years — (47) Excess stock-based compensation — (57) Other restructuring (income) costs 195 46 Twelve Months Ended December 31, 2024 - Adjusted $ 13,578 $ 2,910 Twelve Months Ended December 31, 2023 - U.S. GAAP $ 13,050 $ 2,781 21.3 % Restructuring costs - Longwall divestiture 586 — Pension/OPEB mark-to-market (gains) losses (97) (26) Deferred tax valuation allowance adjustments — 88 Excess stock-based compensation — 57 Annual effective tax rate, excluding discrete items $ 13,539 $ 2,900 21.4 % Deferred tax valuation allowance adjustments — 18 Excess stock-based compensation — (57) Other restructuring (income) costs 194 48 Twelve Months Ended December 31, 2023 - Adjusted $ 13,733 $ 2,909 Supplemental Consolidating Data The 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, Energy & Transportation (ME&T) – The company defines 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 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 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. The company believes this presentation will assist readers in understanding its business. Pages 17 to 27 reconcile ME&T and Financial Products to Caterpillar Inc. consolidated financial information. Caterpillar Inc. Condensed Consolidated Statement of Results of Operations (Unaudited) (Dollars in millions except per share data) Three Months EndedDecember 31, Twelve Months EndedDecember 31, 2024 2023 2024 2023 Sales and revenues: Sales of Machinery, Energy & Transportation $ 15,332 $ 16,237 $ 61,363 $ 63,869 Revenues of Financial Products 883 833 3,446 3,191 Total sales and revenues 16,215 17,070 64,809 67,060 Operating costs: Cost of goods sold 10,321 11,016 40,199 42,767 Selling, general and administrative expenses 1,769 1,756 6,667 6,371 Research and development expenses 519 554 2,107 2,108 Interest expense of Financial Products 338 288 1,286 1,030 Other operating (income) expenses 344 322 1,478 1,818 Total operating costs 13,291 13,936 51,737 54,094 Operating profit 2,924 3,134 13,072 12,966 Interest expense excluding Financial Products 107 126 512 511 Other income (expense) 426 241 813 595 Consolidated profit before taxes 3,243 3,249 13,373 13,050 Provision (benefit) for income taxes 463 587 2,629 2,781 Profit of consolidated companies 2,780 2,662 10,744 10,269 Equity in profit (loss) of unconsolidated affiliated companies 10 11 44 63 Profit of consolidated and affiliated companies 2,790 2,673 10,788 10,332 Less: Profit (loss) attributable to noncontrolling interests (1) (3) (4) (3) Profit 1 $ 2,791 $ 2,676 $ 10,792 $ 10,335 Profit per common share $ 5.81 $ 5.31 $ 22.17 $ 20.24 Profit per common share — diluted 2 $ 5.78 $ 5.28 $ 22.05 $ 20.12 Weighted-average common shares outstanding (millions) – Basic 480.0 504.4 486.7 510.6 – Diluted 2 482.6 507.0 489.4 513.6 1 Profit attributable to common shareholders. 2 Diluted by assumed exercise of stock-based compensation awards using the treasury stock method. Caterpillar Inc. Condensed Consolidated Statement of Financial Position (Unaudited) (Millions of dollars) December 31,2024 December 31,2023 Assets Current assets: Cash and cash equivalents $ 6,889 $ 6,978 Receivables – trade and other 9,282 9,310 Receivables – finance 9,565 9,510 Prepaid expenses and other current assets 3,119 4,586 Inventories 16,827 16,565 Total current assets 45,682 46,949 Property, plant and equipment – net 13,361 12,680 Long-term receivables – trade and other 1,225 1,238 Long-term receivables – finance 13,242 12,664 Noncurrent deferred and refundable income taxes 3,312 2,816 Intangible assets 399 564 Goodwill 5,241 5,308 Other assets 5,302 5,257 Total assets $ 87,764 $ 87,476 Liabilities Current liabilities: Short-term borrowings: -- Financial Products $ 4,393 $ 4,643 Accounts payable 7,675 7,906 Accrued expenses 5,243 4,958 Accrued wages, salaries and employee benefits 2,391 2,757 Customer advances 2,322 1,929 Dividends payable 674 649 Other current liabilities 2,909 3,123 Long-term debt due within one year: -- Machinery, Energy & Transportation 46 1,044 -- Financial Products 6,619 7,719 Total current liabilities 32,272 34,728 Long-term debt due after one year: -- Machinery, Energy & Transportation 8,564 8,579 -- Financial Products 18,787 15,893 Liability for postemployment benefits 3,757 4,098 Other liabilities 4,890 4,675 Total liabilities 68,270 67,973 Shareholders' equity Common stock 6,941 6,403 Treasury stock (44,331) (36,339) Profit employed in the business 59,352 51,250 Accumulated other comprehensive income (loss) (2,471) (1,820) Noncontrolling interests 3 9 Total shareholders' equity 19,494 19,503 Total liabilities and shareholders' equity $ 87,764 $ 87,476 Caterpillar Inc. Condensed Consolidated Statement of Cash Flow (Unaudited) (Millions of dollars) Twelve Months Ended December 31, 2024 2023 Cash flow from operating activities: Profit of consolidated and affiliated companies $ 10,788 $ 10,332 Adjustments to reconcile profit to net cash provided by operating activities: Depreciation and amortization 2,153 2,144 Actuarial (gain) loss on pension and postretirement benefits (154) (97) Provision (benefit) for deferred income taxes (621) (592) (Gain) loss on divestiture 164 572 Other 564 375 Changes in assets and liabilities, net of acquisitions and divestitures: Receivables – trade and other (160) (437) Inventories (414) (364) Accounts payable (282) (754) Accrued expenses 191 796 Accrued wages, salaries and employee benefits (363) 486 Customer advances 370 80 Other assets – net (97) (95) Other liabilities – net (104) 439 Net cash provided by (used for) operating activities 12,035 12,885 Cash flow from investing activities: Capital expenditures – excluding equipment leased to others (1,988) (1,597) Expenditures for equipment leased to others (1,227) (1,495) Proceeds from disposals of leased assets and property, plant and equipment 722 781 Additions to finance receivables (15,409) (15,161) Collections of finance receivables 13,608 14,034 Proceeds from sale of finance receivables 83 63 Investments and acquisitions (net of cash acquired) (34) (75) Proceeds from sale of businesses and investments (net of cash sold) (61) (4) Proceeds from maturities and sale of securities 3,155 1,891 Investments in securities (1,495) (4,405) Other – net 193 97 Net cash provided by (used for) investing activities (2,453) (5,871) Cash flow from financing activities: Dividends paid (2,646) (2,563) Common stock issued, including treasury shares reissued 20 12 Payments to purchase common stock (7,697) (4,975) Excise tax paid on purchases of common stock (40) — Proceeds from debt issued (original maturities greater than three months) 10,283 8,257 Payments on debt (original maturities greater than three months) (9,316) (6,318) Short-term borrowings – net (original maturities three months or less) (168) (1,345) Other – net (1) — Net cash provided by (used for) financing activities (9,565) (6,932) Effect of exchange rate changes on cash (106) (110) Increase (decrease) in cash, cash equivalents and restricted cash (89) (28) Cash, cash equivalents and restricted cash at beginning of period 6,985 7,013 Cash, cash equivalents and restricted cash at end of period $ 6,896 $ 6,985 Cash equivalents primarily represent short-term, highly liquid investments with original maturities of generally three months or less. Caterpillar Inc. Supplemental Data for Results of Operations For the Three Months Ended December 31, 2024 (Unaudited) (Millions of dollars) Supplemental Consolidating Data Consolidated Machinery,Energy &Transportation Financial Products Consolidating Adjustments Sales and revenues: Sales of Machinery, Energy & Transportation $ 15,332 $ 15,332 $ — $ — Revenues of Financial Products 883 — 1,062 (179) 1 Total sales and revenues 16,215 15,332 1,062 (179) Operating costs: Cost of goods sold 10,321 10,323 — (2) 2 Selling, general and administrative expenses 1,769 1,535 226 8 2 Research and development expenses 519 519 — — Interest expense of Financial Products 338 — 338 — Other operating (income) expenses 344 20 361 (37) 2 Total operating costs 13,291 12,397 925 (31) Operating profit 2,924 2,935 137 (148) Interest expense excluding Financial Products 107 111 — (4) 3 Other income (expense) 426 891 16 (481) 4 Consolidated profit before taxes 3,243 3,715 153 (625) Provision (benefit) for income taxes 463 680 (217) — Profit of consolidated companies 2,780 3,035 370 (625) Equity in profit (loss) of unconsolidated affiliated companies 10 10 — — Profit of consolidated and affiliated companies 2,790 3,045 370 (625) Less: Profit (loss) attributable to noncontrolling interests (1) (1) — — Profit 5 $ 2,791 $ 3,046 $ 370 $ (625) 1 Elimination of Financial Products' revenues earned from ME&T. 2 Elimination of net expenses recorded between ME&T and Financial Products. 3 Elimination of interest expense recorded between Financial Products and ME&T. 4 Elimination 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. 5 Profit attributable to common shareholders. Caterpillar Inc. Supplemental Data for Results of Operations For the Three Months Ended December 31, 2023 (Unaudited) (Millions of dollars) Supplemental Consolidating Data Consolidated Machinery,Energy &Transportation Financial Products Consolidating Adjustments Sales and revenues: Sales of Machinery, Energy & Transportation $ 16,237 $ 16,237 $ — $ — Revenues of Financial Products 833 — 1,020 (187) 1 Total sales and revenues 17,070 16,237 1,020 (187) Operating costs: Cost of goods sold 11,016 11,018 — (2) 2 Selling, general and administrative expenses 1,756 1,557 197 2 2 Research and development expenses 554 554 — — Interest expense of Financial Products 288 — 290 (2) 2 Other operating (income) expenses 322 6 345 (29) 2 Total operating costs 13,936 13,135 832 (31) Operating profit 3,134 3,102 188 (156) Interest expense excluding Financial Products 126 126 — — Other income (expense) 241 322 33 (114) 3 Consolidated profit before taxes 3,249 3,298 221 (270) Provision (benefit) for income taxes 587 567 20 — Profit of consolidated companies 2,662 2,731 201 (270) Equity in profit (loss) of unconsolidated affiliated companies 11 12 — (1) 4 Profit of consolidated and affiliated companies 2,673 2,743 201 (271) Less: Profit (loss) attributable to noncontrolling interests (3) (2) — (1) 5 Profit 6 $ 2,676 $ 2,745 $ 201 $ (270) 1 Elimination of Financial Products' revenues earned from ME&T. 2 Elimination of net expenses recorded between ME&T paid to Financial Products. 3 Elimination 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. 4 Elimination of equity profit (loss) earned from Financial Products' subsidiaries partially owned by ME&T subsidiaries. 5 Elimination of noncontrolling interest profit (loss) recorded by Financial Products for subsidiaries partially owned by ME&T subsidiaries. 6 Profit attributable to common shareholders. Caterpillar Inc. Supplemental Data for Results of Operations For the Twelve Months Ended December 31, 2024 (Unaudited) (Millions of dollars) Supplemental Consolidating Data Consolidated Machinery,Energy &Transportation Financial Products Consolidating Adjustments Sales and revenues: Sales of Machinery, Energy & Transportation $ 61,363 $ 61,363 $ — $ — Revenues of Financial Products 3,446 — 4,212 (766) 1 Total sales and revenues 64,809 61,363 4,212 (766) Operating costs: Cost of goods sold 40,199 40,206 — (7) 2 Selling, general and administrative expenses 6,667 5,881 786 — Research and development expenses 2,107 2,107 — — Interest expense of Financial Products 1,286 — 1,286 — Other operating (income) expenses 1,478 71 1,535 (128) 2 Total operating costs 51,737 48,265 3,607 (135) Operating profit 13,072 13,098 605 (631) Interest expense excluding Financial Products 512 518 — (6) 3 Other income (expense) 813 728 85 — Consolidated profit before taxes 13,373 13,308 690 (625) Provision (benefit) for income taxes 2,629 2,663 (34) — Profit of consolidated companies 10,744 10,645 724 (625) Equity in profit (loss) of unconsolidated affiliated companies 44 44 — — Profit of consolidated and affiliated companies 10,788 10,689 724 (625) Less: Profit (loss) attributable to noncontrolling interests (4) (5) 1 — Profit 4 $ 10,792 $ 10,694 $ 723 $ (625) 1 Elimination of Financial Products' revenues earned from ME&T. 2 Elimination of net expenses recorded between ME&T and Financial Products. 3 Elimination of interest expense recorded between Financial Products and ME&T. 4 Profit attributable to common shareholders. Caterpillar Inc. Supplemental Data for Results of Operations For the Twelve Months Ended December 31, 2023 (Unaudited) (Millions of dollars) Supplemental Consolidating Data Consolidated Machinery,Energy &Transportation Financial Products Consolidating Adjustments Sales and revenues: Sales of Machinery, Energy & Transportation $ 63,869 $ 63,869 $ — $ — Revenues of Financial Products 3,191 — 3,927 (736) 1 Total sales and revenues 67,060 63,869 3,927 (736) Operating costs: Cost of goods sold 42,767 42,776 — (9) 2 Selling, general and administrative expenses 6,371 5,696 704 (29) 2 Research and development expenses 2,108 2,108 — — Interest expense of Financial Products 1,030 — 1,032 (2) 2 Other operating (income) expenses 1,818 630 1,268 (80) 2 Total operating costs 54,094 51,210 3,004 (120) Operating profit 12,966 12,659 923 (616) Interest expense excluding Financial Products 511 511 — — Other income (expense) 595 340 (16) 271 3 Consolidated profit before taxes 13,050 12,488 907 (345) Provision (benefit) for income taxes 2,781 2,560 221 — Profit of consolidated companies 10,269 9,928 686 (345) Equity in profit (loss) of unconsolidated affiliated companies 63 67 — (4) 4 Profit of consolidated and affiliated companies 10,332 9,995 686 (349) Less: Profit (loss) attributable to noncontrolling interests (3) (4) 5 (4) 5 Profit 6 $ 10,335 $ 9,999 $ 681 $ (345) 1 Elimination of Financial Products' revenues earned from ME&T. 2 Elimination of net expenses recorded between ME&T and Financial Products. 3 Elimination 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. 4 Elimination of equity profit (loss) earned from Financial Products' subsidiaries partially owned by ME&T subsidiaries. 5 Elimination of noncontrolling interest profit (loss) recorded by Financial Products for subsidiaries partially owned by ME&T subsidiaries. 6 Profit attributable to common shareholders. Caterpillar Inc. Supplemental Data for Financial Position At December 31, 2024 (Unaudited) (Millions of dollars) Supplemental Consolidating Data Consolidated Machinery, Energy & Transportation Financial Products Consolidating Adjustments Assets Current assets: Cash and cash equivalents $ 6,889 $ 6,165 $ 724 $ — Receivables – trade and other 9,282 3,463 688 5,131 1,2 Receivables – finance 9,565 — 14,957 (5,392) 2 Prepaid expenses and other current assets 3,119 2,872 401 (154) 3 Inventories 16,827 16,827 — — Total current assets 45,682 29,327 16,770 (415) Property, plant and equipment – net 13,361 9,531 3,830 — Long-term receivables – trade and other 1,225 500 86 639 1,2 Long-term receivables – finance 13,242 — 14,048 (806) 2 Noncurrent deferred and refundable income taxes 3,312 3,594 118 (400) 4 Intangible assets 399 399 — — Goodwill 5,241 5,241 — — Other assets 5,302 4,050 2,277 (1,025) 5 Total assets $ 87,764 $ 52,642 $ 37,129 $ (2,007) Liabilities Current liabilities: Short-term borrowings $ 4,393 $ — $ 4,393 $ — Accounts payable 7,675 7,619 331 (275) 6,7 Accrued expenses 5,243 4,589 654 — Accrued wages, salaries and employee benefits 2,391 2,335 56 — Customer advances 2,322 2,305 3 14 7 Dividends payable 674 674 — — Other current liabilities 2,909 2,388 696 (175) 4,8 Long-term debt due within one year 6,665 46 6,619 — Total current liabilities 32,272 19,956 12,752 (436) Long-term debt due after one year 27,351 8,731 18,787 (167) 9 Liability for postemployment benefits 3,757 3,757 — — Other liabilities 4,890 3,977 1,344 (431) 4 Total liabilities 68,270 36,421 32,883 (1,034) Shareholders' equity Common stock 6,941 6,941 905 (905) 10 Treasury stock (44,331) (44,331) — — Profit employed in the business 59,352 54,787 4,555 10 10 Accumulated other comprehensive income (loss) (2,471) (1,182) (1,289) — Noncontrolling interests 3 6 75 (78) 10 Total shareholders' equity 19,494 16,221 4,246 (973) Total liabilities and shareholders' equity $ 87,764 $ 52,642 $ 37,129 $ (2,007) 1 Elimination of receivables between ME&T and Financial Products. 2 Reclassification of ME&T's trade receivables purchased by Financial Products and Financial Products' wholesale inventory receivables. 3 Elimination of ME&T's insurance premiums that are prepaid to Financial Products. 4 Reclassification reflecting required netting of deferred tax assets/liabilities by taxing jurisdiction. 5 Elimination of other intercompany assets 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. Caterpillar Inc. Supplemental Data for Financial Position At December 31, 2023 (Unaudited) (Millions of dollars) Supplemental Consolidating Data Consolidated Machinery, Energy & Transportation Financial Products Consolidating Adjustments Assets Current assets: Cash and cash equivalents $ 6,978 $ 6,106 $ 872 $ — Receivables – trade and other 9,310 3,971 570 4,769 1,2 Receivables – finance 9,510 — 14,499 (4,989) 2 Prepaid expenses and other current assets 4,586 4,327 341 (82) 3 Inventories 16,565 16,565 — — Total current assets 46,949 30,969 16,282 (302) Property, plant and equipment – net 12,680 8,694 3,986 — Long-term receivables – trade and other 1,238 565 85 588 1,2 Long-term receivables – finance 12,664 — 13,299 (635) 2 Noncurrent deferred and refundable income taxes 2,816 3,360 148 (692) 4 Intangible assets 564 564 — — Goodwill 5,308 5,308 — — Other assets 5,257 4,218 2,082 (1,043) 5 Total assets $ 87,476 $ 53,678 $ 35,882 $ (2,084) Liabilities Current liabilities: Short-term borrowings $ 4,643 $ — $ 4,643 $ — Accounts payable 7,906 7,827 314 (235) 6,7 Accrued expenses 4,958 4,361 597 — Accrued wages, salaries and employee benefits 2,757 2,696 61 — Customer advances 1,929 1,912 2 15 7 Dividends payable 649 649 — — Other current liabilities 3,123 2,583 647 (107) 4,8 Long-term debt due within one year 8,763 1,044 7,719 — Total current liabilities 34,728 21,072 13,983 (327) Long-term debt due after one year 24,472 8,626 15,893 (47) 9 Liability for postemployment benefits 4,098 4,098 — — Other liabilities 4,675 3,806 1,607 (738) 4 Total liabilities 67,973 37,602 31,483 (1,112) Shareholders' equity Common stock 6,403 6,403 905 (905) 10 Treasury stock (36,339) (36,339) — — Profit employed in the business 51,250 46,783 4,457 10 10 Accumulated other comprehensive income (loss) (1,820) (783) (1,037) — Noncontrolling interests 9 12 74 (77) 10 Total shareholders' equity 19,503 16,076 4,399 (972) Total liabilities and shareholders' equity $ 87,476 $ 53,678 $ 35,882 $ (2,084) 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. Caterpillar Inc. Supplemental Data for Cash Flow For the Twelve Months Ended December 31, 2024 (Unaudited) (Millions of dollars) Supplemental Consolidating Data Consolidated Machinery,Energy &Transportation Financial Products Consolidating Adjustments Cash flow from operating activities: Profit of consolidated and affiliated companies $ 10,788 $ 10,689 $ 724 $ (625) 1,5 Adjustments to reconcile profit to net cash provided by operating activities: Depreciation and amortization 2,153 1,368 785 — Actuarial (gain) loss on pension and postretirement benefits (154) (154) — — Provision (benefit) for deferred income taxes (621) (327) (294) — (Gain) loss on divestiture 164 (46) 210 — Other 564 355 (388) 597 2 Changes in assets and liabilities, net of acquisitions and divestitures: Receivables – trade and other (160) 413 207 (780) 2,3 Inventories (414) (400) — (14) 2 Accounts payable (282) (200) (41) (41) 2 Accrued expenses 191 78 113 — Accrued wages, salaries and employee benefits (363) (358) (5) — Customer advances 370 369 1 — Other assets – net (97) (188) 48 43 2 Other liabilities – net (104) (162) 85 (27) 2 Net cash provided by (used for) operating activities 12,035 11,437 1,445 (847) Cash flow from investing activities: Capital expenditures – excluding equipment leased to others (1,988) (1,952) (41) 5 2 Expenditures for equipment leased to others (1,227) (36) (1,211) 20 2 Proceeds from disposals of leased assets and property, plant and equipment 722 35 698 (11) 2 Additions to finance receivables (15,409) — (16,845) 1,436 3 Collections of finance receivables 13,608 — 14,707 (1,099) 3 Net intercompany purchased receivables — — 129 (129) 3 Proceeds from sale of finance receivables 83 — 83 — Net intercompany borrowings — — 21 (21) 4 Investments and acquisitions (net of cash acquired) (34) (34) — — Proceeds from sale of businesses and investments (net of cash sold) (61) 92 (153) — Proceeds from maturities and sale of securities 3,155 2,795 360 — Investments in securities (1,495) (909) (586) — Other – net 193 142 51 — Net cash provided by (used for) investing activities (2,453) 133 (2,787) 201 Cash flow from financing activities: Dividends paid (2,646) (2,646) (625) 625 5 Common stock issued, including treasury shares reissued 20 20 — — Payments to purchase common stock (7,697) (7,697) — — Excise tax paid on purchases of common stock (40) (40) — — Net intercompany borrowings — (21) — 21 4 Proceeds from debt issued (original maturities greater than three months) 10,283 — 10,283 — Payments on debt (original maturities greater than three months) (9,316) (1,032) (8,284) — Short-term borrowings – net (original maturities three months or less) (168) — (168) — Other – net (1) (1) — — Net cash provided by (used for) financing activities (9,565) (11,417) 1,206 646 Effect of exchange rate changes on cash (106) (94) (12) — Increase (decrease) in cash, cash equivalents and restricted cash (89) 59 (148) — Cash, cash equivalents and restricted cash at beginning of period 6,985 6,111 874 — Cash, cash equivalents and restricted cash at end of period $ 6,896 $ 6,170 $ 726 $ — 1 Elimination of equity profit earned from Financial Products' subsidiaries partially owned by ME&T subsidiaries. 2 Elimination of non-cash adjustments and changes in assets and liabilities related to consolidated reporting. 3 Reclassification of Financial Products' cash flow activity from investing to operating for receivables that arose from the sale of inventory. 4 Elimination of net proceeds and payments to/from ME&T and Financial Products. 5 Elimination of dividend activity between Financial Products and ME&T. Caterpillar Inc. Supplemental Data for Cash Flow For the Twelve Months Ended December 31, 2023 (Unaudited) (Millions of dollars) Supplemental Consolidating Data Consolidated Machinery,Energy &Transportation Financial Products Consolidating Adjustments Cash flow from operating activities: Profit of consolidated and affiliated companies $ 10,332 $ 9,995 $ 686 $ (349) 1,5 Adjustments to reconcile profit to net cash provided by operating activities: Depreciation and amortization 2,144 1,361 783 — Actuarial (gain) loss on pension and postretirement benefits (97) (97) — — Provision (benefit) for deferred income taxes Provision (benefit) for deferred income taxes (592) (576) (16) — (Gain) loss on divestiture 572 572 — — Other 375 444 (577) 508 2 Changes in assets and liabilities, net of acquisitions and divestitures: Receivables – trade and other (437) (367) 61 (131) 2,3 Inventories (364) (360) — (4) 2 Accounts payable (754) (836) 41 41 2 Accrued expenses 796 690 106 — Accrued wages, salaries and employee benefits 486 474 12 — Customer advances 80 78 2 — Other assets – net (95) 94 (110) (79) 2 Other liabilities – net 439 216 118 105 2 Net cash provided by (used for) operating activities 12,885 11,688 1,106 91 Cash flow from investing activities: Capital expenditures – excluding equipment leased to others (1,597) (1,624) (22) 49 2 Expenditures for equipment leased to others (1,495) (39) (1,466) 10 2 Proceeds from disposals of leased assets and property, plant and equipment 781 55 781 (55) 2 Additions to finance receivables (15,161) — (17,321) 2,160 3 Collections of finance receivables 14,034 — 15,634 (1,600) 3 Net intercompany purchased receivables — — 1,080 (1,080) 3 Proceeds from sale of finance receivables 63 — 63 — Net intercompany borrowings — — 10 (10) 4 Investments and acquisitions (net of cash acquired) (75) (75) — — Proceeds from sale of businesses and investments (net of cash sold) (4) (4) — — Proceeds from maturities and sale of securities 1,891 1,642 249 — Investments in securities (4,405) (3,982) (423) — Other – net 97 106 (9) — Net cash provided by (used for) investing activities (5,871) (3,921) (1,424) (526) Cash flow from financing activities: Dividends paid (2,563) (2,563) (425) 425 5 Common stock issued, including treasury shares reissued 12 12 — — Payments to purchase common stock (4,975) (4,975) — — Net intercompany borrowings — (10) — 10 4 Proceeds from debt issued (original maturities greater than three months) 8,257 — 8,257 — Payments on debt (original maturities greater than three months) (6,318) (106) (6,212) — Short-term borrowings – net (original maturities three months or less) (1,345) (3) (1,342) — Net cash provided by (used for) financing activities (6,932) (7,645) 278 435 Effect of exchange rate changes on cash (110) (60) (50) — Increase (decrease) in cash, cash equivalents and restricted cash (28) 62 (90) — Cash, cash equivalents and restricted cash at beginning of period 7,013 6,049 964 — Cash, cash equivalents and restricted cash at end of period $ 6,985 $ 6,111 $ 874 $ — 1 Elimination of equity profit earned from Financial Products' subsidiaries partially owned by ME&T subsidiaries. 2 Elimination of non-cash adjustments and changes in assets and liabilities related to consolidated reporting. 3 Reclassification of Financial Products' cash flow activity from investing to operating for receivables that arose from the sale of inventory. 4 Elimination of net proceeds and payments to/from ME&T and Financial Products. 5 Elimination of dividend activity between Financial Products and ME&T. 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Caterpillar Reports Fourth-Quarter and Full-Year 2024 Results

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How important is it?

Why Short Term?

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