Caterpillar Reports Second-Quarter 2025 Results

Second-quarter 2025 profit per share of $4.62; adjusted profit per share of $4.72 Enterprise operating cash flow was $3.1 billion in the second quarter of 2025 Deployed $1.5 billion of cash for share repurchases and dividends in the second quarter Second Quarter ($ in billions except profit per share) 2025 2024 Sales and Revenues $16.6 $16.7 Profit Per Share $4.62 $5.48 Adjusted Profit Per Share $4.72 $5.99 Please see a reconciliation of GAAP to non-GAAP financial measures in the appendix on pages 13 and 14. , /PRNewswire/ -- Caterpillar Inc. (NYSE: CAT) announced second-quarter 2025 results. "The Caterpillar team remained focused on customer success and demonstrated solid operational performance this quarter," said CEO Joe Creed. "We continued to see strong orders across our segments as demand remains resilient supported by infrastructure spending and growing energy needs." Sales and revenues for the second quarter of 2025 were $16.6 billion, a 1% decrease compared with $16.7 billion in the second quarter of 2024. The decrease was primarily due to unfavorable price realization of $414 million, partially offset by higher sales volume of $237 million. Higher sales volume was mainly driven by higher sales of equipment to end users. Operating profit margin was 17.3% for the second quarter of 2025, compared with 20.9% for the second quarter of 2024. Adjusted operating profit margin was 17.6% for the second quarter of 2025, compared with 22.4% for the second quarter of 2024. Second-quarter 2025 profit per share was $4.62, compared with second-quarter 2024 profit per share of $5.48. Adjusted profit per share in the second quarter of 2025 was $4.72, compared with second-quarter 2024 adjusted profit per share of $5.99. For the second quarter of 2025 and 2024, adjusted operating profit margin and adjusted profit per share excluded restructuring costs. For the second quarter of 2025, enterprise operating cash flow was $3.1 billion, and the company ended the second quarter with $5.4 billion of enterprise cash. In the quarter, the company deployed $0.8 billion of cash for repurchases of Caterpillar common stock and $0.7 billion of cash for dividends. CONSOLIDATED RESULTS Consolidated Sales and Revenues Consolidated Sales and Revenues Comparison Second Quarter 2025 vs. Second Quarter 2024 To access this chart, go to https://investors.caterpillar.com/financials/quarterly-results/default.aspx for the downloadable version of Caterpillar second-quarter 2025 earnings. The chart above graphically illustrates reasons for the change in consolidated sales and revenues between the second quarter of 2024 (at left) and the second quarter of 2025 (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 2025 were $16.569 billion, a decrease of $120 million, or 1%, compared with $16.689 billion in the second quarter of 2024. The decrease was primarily due to unfavorable price realization of $414 million, partially offset by higher sales volume of $237 million and higher Financial Products' revenues of $46 million. Higher sales volume was mainly driven by higher sales of equipment to end users. In the three primary segments, sales were higher in Energy & Transportation and lower in Construction Industries and Resource Industries. Sales and Revenues by Segment (Millions of dollars) SecondQuarter2024 SalesVolume PriceRealization Currency Inter-Segment /Other SecondQuarter2025 $ Change % Change Construction Industries $ 6,683 $ (83) $ (459) $ 9 $ 40 $ 6,190 $ (493) (7 %) Resource Industries 3,206 (13) (94) (11) (1) 3,087 (119) (4 %) Energy & Transportation 7,337 326 139 15 19 7,836 499 7 % All Other Segment 108 5 (1) — (8) 104 (4) (4 %) Corporate Items and Eliminations (1,494) 2 1 (2) (50) (1,543) (49) Machinery, Energy & Transportation 15,840 237 (414) 11 — 15,674 (166) (1 %) Financial Products Segment 1,004 — — — 38 1,042 38 4 % Corporate Items and Eliminations (155) — — — 8 (147) 8 Financial Products Revenues 849 — — — 46 895 46 5 % Consolidated Sales and Revenues $ 16,689 $ 237 $ (414) $ 11 $ 46 $ 16,569 $ (120) (1 %) 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 Second Quarter 2025 Construction Industries $ 3,369 (15 %) $ 540 (20 %) $ 1,185 13 % $ 1,029 6 % $ 6,123 (8 %) $ 67 148 % $ 6,190 (7 %) Resource Industries 1,111 (8 %) 541 3 % 501 13 % 851 (10 %) 3,004 (4 %) 83 (1 %) 3,087 (4 %) Energy & Transportation 3,776 14 % 493 12 % 1,386 (2 %) 905 (1 %) 6,560 8 % 1,276 2 % 7,836 7 % All Other Segment 13 — % — — % 3 (25 %) 17 42 % 33 14 % 71 (10 %) 104 (4 %) Corporate Items and Eliminations (33) (3) (3) (7) (46) (1,497) (1,543) Machinery, Energy & Transportation 8,236 (3 %) 1,571 (4 %) 3,072 6 % 2,795 (2 %) 15,674 (1 %) — — % 15,674 (1 %) Financial Products Segment 703 5 % 105 4 % 126 2 % 108 (3 %) 1,042 4 % — — % 1,042 4 % Corporate Items and Eliminations (88) (20) (18) (21) (147) — (147) Financial Products Revenues 615 6 % 85 6 % 108 4 % 87 1 % 895 5 % — — % 895 5 % Consolidated Sales and Revenues $ 8,851 (2 %) $ 1,656 (4 %) $ 3,180 6 % $ 2,882 (2 %) $ 16,569 (1 %) $ — — % $ 16,569 (1 %) Second Quarter 2024 Construction Industries $ 3,957 $ 677 $ 1,047 $ 975 $ 6,656 $ 27 $ 6,683 Resource Industries 1,206 524 442 950 3,122 84 3,206 Energy & Transportation 3,308 439 1,421 912 6,080 1,257 7,337 All Other Segment 13 — 4 12 29 79 108 Corporate Items and Eliminations (20) (1) (21) (5) (47) (1,447) (1,494) Machinery, Energy & Transportation 8,464 1,639 2,893 2,844 15,840 — 15,840 Financial Products Segment 668 101 124 111 1,004 — 1,004 Corporate Items and Eliminations (89) (21) (20) (25) (155) — (155) Financial Products Revenues 579 80 104 86 849 — 849 Consolidated Sales and Revenues $ 9,043 $ 1,719 $ 2,997 $ 2,930 $ 16,689 $ — $ 16,689 Consolidated Operating Profit Consolidated Operating Profit Comparison Second Quarter 2025 vs. Second Quarter 2024 To access this chart, go to https://investors.caterpillar.com/financials/quarterly-results/default.aspx for the downloadable version of Caterpillar second-quarter 2025 earnings. The chart above graphically illustrates reasons for the change in consolidated operating profit between the second quarter of 2024 (at left) and the second quarter of 2025 (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 second quarter of 2025 was $2.860 billion, a decrease of $622 million, or 18%, compared with $3.482 billion in the second quarter of 2024. The decrease was mainly due to unfavorable manufacturing costs. Unfavorable manufacturing costs largely reflected the impact of higher tariffs. Profit (Loss) by Segment (Millions of dollars) Second Quarter2025 Second Quarter 2024 $ Change % Change Construction Industries $ 1,244 $ 1,741 $ (497) (29 %) Resource Industries 537 718 (181) (25 %) Energy & Transportation 1,585 1,525 60 4 % All Other Segment (5) 21 (26) (124 %) Corporate Items and Eliminations (566) (344) (222) Machinery, Energy & Transportation 2,795 3,661 (866) (24 %) Financial Products Segment 248 227 21 9 % Corporate Items and Eliminations (36) (243) 207 Financial Products 212 (16) 228 1,425 % Consolidating Adjustments (147) (163) 16 Consolidated Operating Profit $ 2,860 $ 3,482 $ (622) (18 %) Other Profit/Loss and Tax Items Other income (expense) in the second quarter of 2025 was income of $84 million, compared with income of $155 million in the second quarter of 2024. The change was primarily driven by unfavorable foreign currency impacts, partially offset by favorable impacts from total return swap contracts. The effective tax rate for the second quarter of 2025 was 23.0% compared to 23.9% for the second quarter of 2024. Excluding discrete items, the second-quarter 2025 estimated annual effective tax rate was 23.0% compared with 22.5% for the second quarter of 2024. The estimated annual effective tax rate in the second quarter of 2024 excluded the impact of second-quarter losses of $228 million for the divestiture of two 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 13 and 14. CONSTRUCTION INDUSTRIES (Millions of dollars) Segment Sales SecondQuarter 2024 SalesVolume PriceRealization Currency Inter-Segment SecondQuarter 2025 $ Change % Change Total Sales $ 6,683 $ (83) $ (459) $ 9 $ 40 $ 6,190 $ (493) (7 %) Sales by Geographic Region SecondQuarter 2025 SecondQuarter 2024 $ Change % Change North America $ 3,369 $ 3,957 $ (588) (15 %) Latin America 540 677 (137) (20 %) EAME 1,185 1,047 138 13 % Asia/Pacific 1,029 975 54 6 % External Sales 6,123 6,656 (533) (8 %) Inter-segment 67 27 40 148 % Total Sales $ 6,190 $ 6,683 $ (493) (7 %) Segment Profit SecondQuarter 2025 SecondQuarter 2024 Change % Change Segment Profit $ 1,244 $ 1,741 $ (497) (29 %) Segment Profit Margin 20.1 % 26.1 % (6.0 pts) Construction Industries' total sales were $6.190 billion in the second quarter of 2025, a decrease of $493 million, or 7%, compared with $6.683 billion in the second quarter of 2024. The decrease was primarily due to unfavorable price realization. Sales volume was also lower, primarily driven by the impact from changes in dealer inventories. Dealer inventory decreased during the second quarter of 2025, while remaining about flat during the second quarter of 2024. In North America, sales decreased due to unfavorable price realization and lower sales volume. Lower sales volume was mainly driven by the impact from changes in dealer inventories. Dealer inventory decreased during the second quarter of 2025, compared with an increase during the second quarter of 2024. Sales decreased in Latin America primarily due to lower sales volume and unfavorable currency impacts primarily related to the Brazilian real. Lower sales volume was mainly driven by the impact from changes in dealer inventories. Dealer inventory decreased during the second quarter of 2025, compared with an increase during the second quarter of 2024. In EAME, sales increased due to higher sales volume and favorable currency impacts primarily related to the euro, partially offset by unfavorable price realization. Higher sales volume was mainly driven by the impact from changes in dealer inventories. Dealer inventory increased during the second quarter of 2025, compared with a decrease during the second quarter of 2024. Sales increased in Asia/Pacific due to higher sales volume, partially offset by unfavorable price realization. Higher sales volume was mainly driven by the impact from changes in dealer inventories. Dealer inventory increased during the second quarter of 2025, compared with a decrease during the second quarter of 2024. Construction Industries' segment profit was $1.244 billion in the second quarter of 2025, a decrease of $497 million, or 29%, compared with $1.741 billion in the second quarter of 2024. The decrease was mainly due to unfavorable price realization. In addition, tariffs were also higher. RESOURCE INDUSTRIES (Millions of dollars) Segment Sales SecondQuarter 2024 SalesVolume PriceRealization Currency Inter-Segment SecondQuarter 2025 $ Change % Change Total Sales $ 3,206 $ (13) $ (94) $ (11) $ (1) $ 3,087 $ (119) (4 %) Sales by Geographic Region SecondQuarter 2025 SecondQuarter 2024 $ Change % Change North America $ 1,111 $ 1,206 $ (95) (8 %) Latin America 541 524 17 3 % EAME 501 442 59 13 % Asia/Pacific 851 950 (99) (10 %) External Sales 3,004 3,122 (118) (4 %) Inter-segment 83 84 (1) (1 %) Total Sales $ 3,087 $ 3,206 $ (119) (4 %) Segment Profit SecondQuarter 2025 SecondQuarter 2024 Change % Change Segment Profit $ 537 $ 718 $ (181) (25 %) Segment Profit Margin 17.4 % 22.4 % (5.0 pts) Resource Industries' total sales were $3.087 billion in the second quarter of 2025, a decrease of $119 million, or 4%, compared with $3.206 billion in the second quarter of 2024. The decrease was primarily due to unfavorable price realization. Resource Industries' segment profit was $537 million in the second quarter of 2025, a decrease of $181 million, or 25%, compared with $718 million in the second quarter of 2024. The decrease was mainly due to unfavorable price realization of $94 million, unfavorable manufacturing costs of $44 million and the profit impact of lower sales volume of $31 million, including an unfavorable mix of products. Unfavorable manufacturing costs largely reflected the impact of higher tariffs. ENERGY & TRANSPORTATION (Millions of dollars) Segment Sales SecondQuarter 2024 SalesVolume PriceRealization Currency Inter-Segment SecondQuarter 2025 $ Change % Change Total Sales $ 7,337 $ 326 $ 139 $ 15 $ 19 $ 7,836 $ 499 7 % Sales by Application SecondQuarter 2025 SecondQuarter 2024 $ Change % Change Oil and Gas $ 1,867 $ 1,829 $ 38 2 % Power Generation 2,407 1,885 522 28 % Industrial 1,060 1,045 15 1 % Transportation 1,226 1,321 (95) (7 %) External Sales 6,560 6,080 480 8 % Inter-segment 1,276 1,257 19 2 % Total Sales $ 7,836 $ 7,337 $ 499 7 % Segment Profit SecondQuarter 2025 SecondQuarter 2024 Change % Change Segment Profit $ 1,585 $ 1,525 $ 60 4 % Segment Profit Margin 20.2 % 20.8 % (0.6 pts) Energy & Transportation's total sales were $7.836 billion in the second quarter of 2025, an increase of $499 million, or 7%, compared with $7.337 billion in the second quarter of 2024. The increase was due to higher sales volume of $326 million and favorable price realization of $139 million. Oil and Gas – Sales increased for turbines and turbine-related services. The increase was partially offset by lower sales of reciprocating engines, primarily engines used in gas compression applications. Power Generation – Sales increased in large reciprocating engines, primarily data center applications. Industrial – Sales increased in EAME, partially offset by decreased sales in North America and Latin America. Transportation – Sales decreased in marine. International locomotive deliveries were also lower. Energy & Transportation's segment profit was $1.585 billion in the second quarter of 2025, an increase of $60 million, or 4%, compared with $1.525 billion in the second quarter of 2024. The increase was primarily due to favorable price realization of $139 million and the profit impact of higher sales volume of $63 million, partially offset by unfavorable manufacturing costs of $154 million. Unfavorable manufacturing costs largely reflected the impact of higher tariffs. FINANCIAL PRODUCTS SEGMENT (Millions of dollars) Revenues by Geographic Region SecondQuarter 2025 SecondQuarter 2024 $ Change % Change North America $ 703 $ 668 $ 35 5 % Latin America 105 101 4 4 % EAME 126 124 2 2 % Asia/Pacific 108 111 (3) (3 %) Total Revenues $ 1,042 $ 1,004 $ 38 4 % Segment Profit SecondQuarter 2025 SecondQuarter 2024 Change % Change Segment Profit $ 248 $ 227 $ 21 9 % Financial Products' segment revenues were $1.042 billion in the second quarter of 2025, an increase of $38 million, or 4%, compared with $1.004 billion in the second quarter of 2024. The increase was primarily due to a favorable impact from higher average earning assets of $49 million driven by North America and higher revenues from Insurance Services of $5 million, partially offset by an unfavorable impact from lower average financing rates of $20 million mainly in North America. Financial Products' segment profit was $248 million in the second quarter of 2025, an increase of $21 million, or 9%, compared with $227 million in the second quarter of 2024. The increase was mainly due to a favorable impact from equity securities of $28 million and a favorable impact from higher average earning assets of $20 million, partially offset by higher provision for credit losses at Cat Financial of $13 million and an unfavorable impact from lower net yield on average earning assets of $10 million. At the end of the second quarter of 2025, past dues at Cat Financial were 1.62%, compared with 1.74% at the end of the second quarter of 2024. Write-offs, net of recoveries, were $18 million for both the second quarter of 2025 and the second quarter of 2024. As of June 30, 2025, Cat Financial's allowance for credit losses totaled $290 million, or 0.94% of finance receivables, compared with $282 million, or 0.95% of finance receivables at March 31, 2025. The allowance for credit losses at year-end 2024 was $267 million, or 0.91% of finance receivables. Corporate Items and Eliminations Expense for corporate items and eliminations was $602 million in the second quarter of 2025, an increase of $15 million from the second quarter of 2024. Lower restructuring costs, primarily due to the absence of the divestiture of two non-U.S. entities in 2024, and lower corporate costs, were more than offset by increased expenses due to timing differences, an unfavorable change in fair value adjustments related to deferred compensation plans and unfavorable impacts of segment reporting methodology differences. 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 Tuesday, Aug. 5, 2025.iii. Information on non-GAAP financial measures is included in the appendix on pages 13 and 14.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. 5, 2025, to discuss its 2025 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 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 two significant items in order for the company's results to be meaningful to readers. These items consist of (i) other restructuring income/costs and (ii) restructuring costs related to the divestiture of two non-U.S. entities in 2024. 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. The company intends to discuss adjusted profit per share for the fourth quarter and full-year 2025, 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) OperatingProfit OperatingProfit Margin Profit BeforeTaxes Provision(Benefit) forIncome Taxes Profit Profit perShare Three Months Ended June 30, 2025 - U.S. GAAP $ 2,860 17.3 % $ 2,818 $ 646 $ 2,179 $ 4.62 Other restructuring (income) 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 Three Months Ended June 30, 2024 - U.S. GAAP $ 3,482 20.9 % $ 3,500 $ 836 $ 2,681 $ 5.48 Restructuring costs - divestiture of two non-U.S. entities 228 1.3 % 228 — 228 0.47 Other restructuring (income) costs 30 0.2 % 30 6 24 0.04 Three Months Ended June 30, 2024 - Adjusted $ 3,740 22.4 % $ 3,758 $ 842 $ 2,933 $ 5.99 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 months ended June 30, 2025, and 2024, these items consist of (i) the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S. GAAP compensation expense and (ii) restructuring costs related to the divestiture of two non-U.S. entities in 2024. 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 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 (income) costs 56 12 Three Months Ended June 30, 2025 - Adjusted $ 2,874 $ 658 Three Months Ended June 30, 2024 - U.S. GAAP $ 3,500 $ 836 23.9 % Restructuring costs - divestiture of two non-U.S. entities 228 — Excess stock-based compensation — 4 Annual effective tax rate, excluding discrete items $ 3,728 $ 840 22.5 % Excess stock-based compensation — (4) Other restructuring (income) costs 30 6 Three Months Ended June 30, 2024 - Adjusted $ 3,758 $ 842 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 16 to 26 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 EndedJune 30, Six Months EndedJune 30, 2025 2024 2025 2024 Sales and revenues: Sales of Machinery, Energy & Transportation $ 15,674 $ 15,840 $ 29,052 $ 30,800 Revenues of Financial Products 895 849 1,766 1,688 Total sales and revenues 16,569 16,689 30,818 32,488 Operating costs: Cost of goods sold 10,807 10,150 19,772 19,812 Selling, general and administrative expenses 1,694 1,652 3,287 3,229 Research and development expenses 551 535 1,031 1,055 Interest expense of Financial Products 336 314 662 612 Other operating (income) expenses 321 556 627 779 Total operating costs 13,709 13,207 25,379 25,487 Operating profit 2,860 3,482 5,439 7,001 Interest expense excluding Financial Products 126 137 242 280 Other income (expense) 84 155 191 311 Consolidated profit before taxes 2,818 3,500 5,388 7,032 Provision (benefit) for income taxes 646 836 1,220 1,524 Profit of consolidated companies 2,172 2,664 4,168 5,508 Equity in profit (loss) of unconsolidated affiliated companies 7 17 14 27 Profit of consolidated and affiliated companies 2,179 2,681 4,182 5,535 Less: Profit (loss) attributable to noncontrolling interests — — — (2) Profit 1 $ 2,179 $ 2,681 $ 4,182 $ 5,537 Profit per common share $ 4.64 $ 5.50 $ 8.85 $ 11.28 Profit per common share — diluted 2 $ 4.62 $ 5.48 $ 8.82 $ 11.23 Weighted-average common shares outstanding (millions) – Basic 469.7 487.2 472.4 490.7 – Diluted 2 471.5 489.5 474.5 493.3 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) June 30,2025 December 31,2024 Assets Current assets: Cash and cash equivalents $ 5,442 $ 6,889 Receivables – trade and other 9,704 9,282 Receivables – finance 10,147 9,565 Prepaid expenses and other current assets 2,867 3,119 Inventories 18,595 16,827 Total current assets 46,755 45,682 Property, plant and equipment – net 13,896 13,361 Long-term receivables – trade and other 1,607 1,225 Long-term receivables – finance 13,835 13,242 Noncurrent deferred and refundable income taxes 3,427 3,312 Intangible assets 321 399 Goodwill 5,331 5,241 Other assets 5,153 5,302 Total assets $ 90,325 $ 87,764 Liabilities Current liabilities: Short-term borrowings: -- Financial Products $ 4,485 $ 4,393 Accounts payable 8,563 7,675 Accrued expenses 5,207 5,243 Accrued wages, salaries and employee benefits 1,618 2,391 Customer advances 3,412 2,322 Dividends payable 707 674 Other current liabilities 2,627 2,909 Long-term debt due within one year: -- Machinery, Energy & Transportation 30 46 -- Financial Products 8,285 6,619 Total current liabilities 34,934 32,272 Long-term debt due after one year: -- Machinery, Energy & Transportation 10,654 8,564 -- Financial Products 17,294 18,787 Liability for postemployment benefits 3,611 3,757 Other liabilities 5,169 4,890 Total liabilities 71,662 68,270 Shareholders' equity Common stock 6,143 6,941 Treasury stock (47,958) (44,331) Profit employed in the business 62,160 59,352 Accumulated other comprehensive income (loss) (1,684) (2,471) Noncontrolling interests 2 3 Total shareholders' equity 18,663 19,494 Total liabilities and shareholders' equity $ 90,325 $ 87,764 Caterpillar Inc. Condensed Consolidated Statement of Cash Flow (Unaudited) (Millions of dollars) Six Months Ended June 30, 2025 2024 Cash flow from operating activities: Profit of consolidated and affiliated companies $ 4,182 $ 5,535 Adjustments to reconcile profit to net cash provided by operating activities: Depreciation and amortization 1,094 1,055 Provision (benefit) for deferred income taxes (110) (133) (Gain) loss on divestiture — 164 Other 398 105 Changes in assets and liabilities, net of acquisitions and divestitures: Receivables – trade and other (319) (245) Inventories (1,639) (643) Accounts payable 973 (21) Accrued expenses (12) 69 Accrued wages, salaries and employee benefits (805) (1,056) Customer advances 1,276 341 Other assets – net (90) 20 Other liabilities – net (537) (118) Net cash provided by (used for) operating activities 4,411 5,073 Cash flow from investing activities: Capital expenditures – excluding equipment leased to others (1,265) (841) Expenditures for equipment leased to others (608) (614) Proceeds from disposals of leased assets and property, plant and equipment 365 342 Additions to finance receivables (7,064) (7,446) Collections of finance receivables 6,399 6,743 Proceeds from sale of finance receivables 18 37 Investments and acquisitions (net of cash acquired) (21) (32) Proceeds from sale of businesses and investments (net of cash sold) 12 (61) Proceeds from maturities and sale of securities 1,328 2,574 Investments in securities (618) (523) Other – net (53) 57 Net cash provided by (used for) investing activities (1,507) 236 Cash flow from financing activities: Dividends paid (1,336) (1,283) Common stock issued, including treasury shares reissued (59) 8 Payments to purchase common stock (4,488) (6,275) Excise tax paid on purchases of common stock (73) — Proceeds from debt issued (original maturities greater than three months) 5,707 4,151 Payments on debt (original maturities greater than three months) (4,168) (5,217) Short-term borrowings – net (original maturities three months or less) 72 687 Net cash provided by (used for) financing activities (4,345) (7,929) Effect of exchange rate changes on cash (7) (17) Increase (decrease) in cash, cash equivalents and restricted cash (1,448) (2,637) Cash, cash equivalents and restricted cash at beginning of period 6,896 6,985 Cash, cash equivalents and restricted cash at end of period $ 5,448 $ 4,348 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 June 30, 2025 (Unaudited) (Millions of dollars) Supplemental Consolidating Data Consolidated Machinery,Energy &Transportation Financial Products Consolidating Adjustments Sales and revenues: Sales of Machinery, Energy & Transportation $ 15,674 $ 15,674 $ — $ — Revenues of Financial Products 895 — 1,081 (186) 1 Total sales and revenues 16,569 15,674 1,081 (186) Operating costs: Cost of goods sold 10,807 10,809 — (2) 2 Selling, general and administrative expenses 1,694 1,497 209 (12) 2 Research and development expenses 551 551 — — Interest expense of Financial Products 336 — 342 (6) 2 Other operating (income) expenses 321 22 318 (19) 2 Total operating costs 13,709 12,879 869 (39) Operating profit 2,860 2,795 212 (147) Interest expense excluding Financial Products 126 130 — (4) 3 Other income (expense) 84 (101) 42 143 4 Consolidated profit before taxes 2,818 2,564 254 — Provision (benefit) for income taxes 646 585 61 — Profit of consolidated companies 2,172 1,979 193 — Equity in profit (loss) of unconsolidated affiliated companies 7 7 — — Profit of consolidated and affiliated companies 2,179 1,986 193 — Less: Profit (loss) attributable to noncontrolling interests — (1) 1 — Profit 5 $ 2,179 $ 1,987 $ 192 $ — 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 June 30, 2024 (Unaudited) (Millions of dollars) Supplemental Consolidating Data Consolidated Machinery,Energy &Transportation Financial Products Consolidating Adjustments Sales and revenues: Sales of Machinery, Energy & Transportation $ 15,840 $ 15,840 $ — $ — Revenues of Financial Products 849 — 1,043 (194) 1 Total sales and revenues 16,689 15,840 1,043 (194) Operating costs: Cost of goods sold 10,150 10,152 — (2) 2 Selling, general and administrative expenses 1,652 1,449 185 18 2 Research and development expenses 535 535 — — Interest expense of Financial Products 314 — 314 — Other operating (income) expenses 556 43 560 (47) 2 Total operating costs 13,207 12,179 1,059 (31) Operating profit 3,482 3,661 (16) (163) Interest expense excluding Financial Products 137 137 — — Other income (expense) 155 (21) 13 163 3 Consolidated profit before taxes 3,500 3,503 (3) — Provision (benefit) for income taxes 836 786 50 — Profit of consolidated companies 2,664 2,717 (53) — Equity in profit (loss) of unconsolidated affiliated companies 17 17 — — Profit of consolidated and affiliated companies 2,681 2,734 (53) — Less: Profit (loss) attributable to noncontrolling interests — — — — Profit 4 $ 2,681 $ 2,734 $ (53) $ — 1 Elimination of Financial Products' revenues earned from ME&T. 2 Elimination of net expenses recorded by 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 Profit attributable to common shareholders. Caterpillar Inc. Supplemental Data for Results of Operations For the Six Months Ended June 30, 2025 (Unaudited) (Millions of dollars) Supplemental Consolidating Data Consolidated Machinery,Energy &Transportation Financial Products Consolidating Adjustments Sales and revenues: Sales of Machinery, Energy & Transportation $ 29,052 $ 29,052 $ — $ — Revenues of Financial Products 1,766 — 2,129 (363) 1 Total sales and revenues 30,818 29,052 2,129 (363) Operating costs: Cost of goods sold 19,772 19,776 — (4) 2 Selling, general and administrative expenses 3,287 2,905 405 (23) 2 Research and development expenses 1,031 1,031 — — Interest expense of Financial Products 662 — 668 (6) 2 Other operating (income) expenses 627 30 643 (46) 2 Total operating costs 25,379 23,742 1,716 (79) Operating profit 5,439 5,310 413 (284) Interest expense excluding Financial Products 242 249 — (7) 3 Other income (expense) 191 (146) 60 277 4 Consolidated profit before taxes 5,388 4,915 473 — Provision (benefit) for income taxes 1,220 1,105 115 — Profit of consolidated companies 4,168 3,810 358 — Equity in profit (loss) of unconsolidated affiliated companies 14 14 — — Profit of consolidated and affiliated companies 4,182 3,824 358 — Less: Profit (loss) attributable to noncontrolling interests — (1) 1 — Profit 5 $ 4,182 $ 3,825 $ 357 $ — 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 Six Months Ended June 30, 2024 (Unaudited) (Millions of dollars) Supplemental Consolidating Data Consolidated Machinery,Energy &Transportation Financial Products Consolidating Adjustments Sales and revenues: Sales of Machinery, Energy & Transportation $ 30,800 $ 30,800 $ — $ — Revenues of Financial Products 1,688 — 2,072 (384) 1 Total sales and revenues 32,488 30,800 2,072 (384) Operating costs: Cost of goods sold 19,812 19,816 — (4) 2 Selling, general and administrative expenses 3,229 2,862 363 4 2 Research and development expenses 1,055 1,055 — — Interest expense of Financial Products 612 — 612 — Other operating (income) expenses 779 2 845 (68) 2 Total operating costs 25,487 23,735 1,820 (68) Operating profit 7,001 7,065 252 (316) Interest expense excluding Financial Products 280 280 — — Other income (expense) 311 (41) 36 316 3 Consolidated profit before taxes 7,032 6,744 288 — Provision (benefit) for income taxes 1,524 1,401 123 — Profit of consolidated companies 5,508 5,343 165 — Equity in profit (loss) of unconsolidated affiliated companies 27 27 — — Profit of consolidated and affiliated companies 5,535 5,370 165 — Less: Profit (loss) attributable to noncontrolling interests (2) (3) 1 — Profit 4 $ 5,537 $ 5,373 $ 164 $ — 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 Profit attributable to common shareholders. Caterpillar Inc. Supplemental Data for Financial Position At June 30, 2025 (Unaudited) (Millions of dollars) Supplemental Consolidating Data Consolidated Machinery, Energy & Transportation Financial Products Consolidating Adjustments Assets Current assets: Cash and cash equivalents $ 5,442 $ 4,428 $ 1,014 $ — Receivables – trade and other 9,704 3,605 527 5,572 1,2 Receivables – finance 10,147 — 15,946 (5,799) 2 Prepaid expenses and other current assets 2,867 2,680 401 (214) 3 Inventories 18,595 18,595 — — Total current assets 46,755 29,308 17,888 (441) Property, plant and equipment – net 13,896 10,035 3,861 — Long-term receivables – trade and other 1,607 1,619 308 (320) 1,2 Long-term receivables – finance 13,835 — 14,708 (873) 2 Noncurrent deferred and refundable income taxes 3,427 3,680 131 (384) 4 Intangible assets 321 321 — — Goodwill 5,331 5,331 — — Other assets 5,153 3,747 2,420 (1,014) 5 Total assets $ 90,325 $ 54,041 $ 39,316 $ (3,032) Liabilities Current liabilities: Short-term borrowings $ 4,485 $ — $ 4,485 $ — Accounts payable 8,563 8,515 294 (246) 6,7 Accrued expenses 5,207 4,374 833 — Accrued wages, salaries and employee benefits 1,618 1,580 38 — Customer advances 3,412 3,387 3 22 7 Dividends payable 707 707 — — Other current liabilities 2,627 2,091 768 (232) 4,5,8 Long-term debt due within one year 8,315 30 8,285 — Total current liabilities 34,934 20,684 14,706 (456) Long-term debt due after one year 27,948 10,850 18,294 (1,196) 7,9 Liability for postemployment benefits 3,611 3,611 — — Other liabilities 5,169 4,199 1,376 (406) 4,5 Total liabilities 71,662 39,344 34,376 (2,058) Shareholders' equity Common stock 6,143 6,143 905 (905) 10 Treasury stock (47,958) (47,958) — — Profit employed in the business 62,160 57,238 4,912 10 10 Accumulated other comprehensive income (loss) (1,684) (731) (953) — Noncontrolling interests 2 5 76 (79) 10 Total shareholders' equity 18,663 14,697 4,940 (974) Total liabilities and shareholders' equity $ 90,325 $ 54,041 $ 39,316 $ (3,032) 1 Elimination of receivables between ME&T and Financial Products. 2 Reclassification of ME&T's trade receivables purchased by Financial Products and Financial Products' wholesale inventory receivables. 3 Elimination of ME&T's insurance premiums that are prepaid to Financial Products. 4 Reclassification reflecting required netting of deferred tax assets/liabilities by taxing jurisdiction. 5 Elimination of other intercompany assets and liabilities between ME&T and Financial Products. 6 Elimination of payables between ME&T and Financial Products. 7 Reclassification of Financial Products' payables to customer advances. 8 Elimination of prepaid insurance in Financial Products' other liabilities. 9 Elimination of debt between ME&T and Financial Products. 10 Eliminations associated with ME&T's investments in Financial Products' subsidiaries. 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 Cash Flow For the Six Months Ended June 30, 2025 (Unaudited) (Millions of dollars) Supplemental Consolidating Data Consolidated Machinery,Energy &Transportation Financial Products Consolidating Adjustments Cash flow from operating activities: Profit of consolidated and affiliated companies $ 4,182 $ 3,824 $ 358 $ — Adjustments to reconcile profit to net cash provided by operating activities: Depreciation and amortization 1,094 716 378 — Provision (benefit) for deferred income taxes (110) (88) (22) — Other 398 357 (286) 327 1 Changes in assets and liabilities, net of acquisitions and divestitures: Receivables – trade and other (319) 90 5 (414) 1,2 Inventories (1,639) (1,639) — — Accounts payable 973 930 6 37 1 Accrued expenses (12) (64) 52 — Accrued wages, salaries and employee benefits (805) (786) (19) — Customer advances 1,276 1,276 — — Other assets – net (90) (133) (3) 46 1 Other liabilities – net (537) (621) 128 (44) 1 Net cash provided by (used for) operating activities 4,411 3,862 597 (48) Cash flow from investing activities: Capital expenditures – excluding equipment leased to others (1,265) (1,273) (22) 30 1 Expenditures for equipment leased to others (608) (14) (597) 3 1 Proceeds from disposals of leased assets and property, plant and equipment 365 36 362 (33) 1 Additions to finance receivables (7,064) — (8,084) 1,020 2 Collections of finance receivables 6,399 — 7,278 (879) 2 Net intercompany purchased receivables — — 93 (93) 2 Proceeds from sale of finance receivables 18 — 18 — Additions to intercompany receivables (original maturities greater than three months) — (1,000) — 1,000 3 Collections of intercompany receivables (original maturities greater than three months) — — 35 (35) 3 Investments and acquisitions (net of cash acquired) (21) (21) — — Proceeds from sale of businesses and investments (net of cash sold) 12 12 — — Proceeds from maturities and sale of securities 1,328 1,026 302 — Investments in securities (618) (278) (340) — Other – net (53) (18) (35) — Net cash provided by (used for) investing activities (1,507) (1,530) (990) 1,013 Cash flow from financing activities: Dividends paid (1,336) (1,336) — — Common stock issued, including treasury shares reissued (59) (59) — — Payments to purchase common stock (4,488) (4,488) — — Excise tax paid on purchases of common stock (73) (73) — — Proceeds from intercompany borrowings (original maturities greater than three months) — — 1,000 (1,000) 3 Payments on intercompany borrowings (original maturities greater than three months) — (35) — 35 3 Proceeds from debt issued (original maturities greater than three months) 5,707 1,976 3,731 — Payments on debt (original maturities greater than three months) (4,168) (35) (4,133) — Short-term borrowings – net (original maturities three months or less) 72 — 72 — Net cash provided by (used for) financing activities (4,345) (4,050) 670 (965) Effect of exchange rate changes on cash (7) (21) 14 — Increase (decrease) in cash, cash equivalents and restricted cash (1,448) (1,739) 291 — Cash, cash equivalents and restricted cash at beginning of period 6,896 6,170 726 — Cash, cash equivalents and restricted cash at end of period $ 5,448 $ 4,431 $ 1,017 $ — 1 Elimination of non-cash adjustments and changes in assets and liabilities related to consolidated reporting. 2 Reclassification of Financial Products' cash flow activity from investing to operating for receivables that arose from the sale of inventory. 3 Elimination of proceeds and payments to/from ME&T and Financial Products. Caterpillar Inc. Supplemental Data for Cash Flow For the Six Months Ended June 30, 2024 (Unaudited) (Millions of dollars) Supplemental Consolidating Data Consolidated Machinery,Energy &Transportation Financial Products Consolidating Adjustments Cash flow from operating activities: Profit of consolidated and affiliated companies $ 5,535 $ 5,370 $ 165 $ — Adjustments to reconcile profit to net cash provided by operating activities: Depreciation and amortization 1,055 662 393 — Provision (benefit) for deferred income taxes (133) (81) (52) — (Gain) loss on divestiture 164 (46) 210 — Other 105 104 (280) 281 1 Changes in assets and liabilities, net of acquisitions and divestitures: Receivables – trade and other (245) 195 96 (536) 1,2 Inventories (643) (638) — (5) 1 Accounts payable (21) 6 (58) 31 1 Accrued expenses 69 (41) 110 — Accrued wages, salaries and employee benefits (1,056) (1,035) (21) — Customer advances 341 341 — — Other assets – net 20 (108) 5 123 1 Other liabilities – net (118) (156) 147 (109) 1 Net cash provided by (used for) operating activities 5,073 4,573 715 (215) Cash flow from investing activities: Capital expenditures – excluding equipment leased to others (841) (831) (13) 3 1 Expenditures for equipment leased to others (614) (10) (612) 8 1 Proceeds from disposals of leased assets and property, plant and equipment 342 13 335 (6) 1 Additions to finance receivables (7,446) — (7,951) 505 2 Collections of finance receivables 6,743 — 7,176 (433) 2 Net intercompany purchased receivables — — (138) 138 2 Proceeds from sale of finance receivables 37 — 37 — Net intercompany borrowings — — 9 (9) 3 Investments and acquisitions (net of cash acquired) (32) (32) — — Proceeds from sale of businesses and investments (net of cash sold) (61) 92 (153) — Proceeds from maturities and sale of securities 2,574 2,402 172 — Investments in securities (523) (300) (223) — Other – net 57 47 10 — Net cash provided by (used for) investing activities 236 1,381 (1,351) 206 Cash flow from financing activities: Dividends paid (1,283) (1,283) — — Common stock issued, including treasury shares reissued 8 8 — — Payments to purchase common stock (6,275) (6,275) — — Net intercompany borrowings — (9) — 9 3 Proceeds from debt issued (original maturities greater than three months) 4,151 — 4,151 — Payments on debt (original maturities greater than three months) (5,217) (1,014) (4,203) — Short-term borrowings – net (original maturities three months or less) 687 — 687 — Net cash provided by (used for) financing activities (7,929) (8,573) 635 9 Effect of exchange rate changes on cash (17) (7) (10) — Increase (decrease) in cash, cash equivalents and restricted cash (2,637) (2,626) (11) — Cash, cash equivalents and restricted cash at beginning of period 6,985 6,111 874 — Cash, cash equivalents and restricted cash at end of period $ 4,348 $ 3,485 $ 863 $ — 1 Elimination of non-cash adjustments and changes in assets and liabilities related to consolidated reporting. 2 Reclassification of Financial Products' cash flow activity from investing to operating for receivables that arose from the sale of inventory. 3 Elimination of net proceeds and payments to/from ME&T and Financial Products. 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Caterpillar Reports Second-Quarter 2025 Results

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