v3.25.4
Long-term debt
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Long-term debt Long-term debt
 December 31,
(Millions of dollars)
Effective Yield to Maturity 1
20252024
Machinery, Power & Energy:  
Notes—$759 million of 5.200% due 2041 2
5.27%$753 $753 
Debentures—$193 million of 6.625% due 2028 2
6.68%193 193 
Debentures—$500 million of 2.600% due 2029 2
2.67%499 498 
Debentures—$800 million of 2.600% due 2030 2
2.72%796 796 
Debentures—$500 million of 1.900% due 2031 2
2.04%497 496 
Debentures—$242 million of 7.300% due 2031 2
7.38%241 241 
Debentures—$1,700 million of 5.200% due 2035 2
5.30%1,688 — 
Debentures—$307 million of 5.300% due 2035 2
8.64%241 237 
Debentures—$460 million of 6.050% due 2036 2
6.12%457 457 
Debentures—$65 million of 8.250% due 2038 2
8.38%64 64 
Debentures—$160 million of 6.950% due 2042 2
7.02%158 158 
Debentures—$1,722 million of 3.803% due 2042 2
6.39%1,395 1,375 
Debentures—$500 million of 4.300% due 2044
4.39%494 494 
Debentures—$1,000 million of 3.250% due 2049 2
3.34%985 984 
Debentures—$1,200 million of 3.250% due 2050 2
3.32%1,187 1,186 
Debentures—$300 million of 5.500% due 2055 2
5.74%289 — 
Debentures—$500 million of 4.750% due 2064
4.81%494 494 
Debentures—$246 million of 7.375% due 2097 2
7.51%241 241 
Finance lease obligations & other 3
6 (103)
Total Machinery, Power & Energy10,678 8,564 
Financial Products:  
Medium-term notes19,675 18,568 
Other343 219 
Total Financial Products20,018 18,787 
Total long-term debt due after one year$30,696 $27,351 

1    Effective yield to maturity includes the impact of discounts, premiums and debt issuance costs.
2    Redeemable at our option in whole or in part at any time at a redemption price equal to the greater of (i) 100% of the principal amount or (ii) the discounted present value of the notes or debentures, calculated in accordance with the terms of such notes or debentures.
3    Includes $(88) million and $(170) million of mark-to-market adjustments related to fair value interest rate swap contracts as of December 31, 2025 and 2024, respectively.

All outstanding notes and debentures are unsecured and rank equally with one another.

On May 12, 2025, we issued $1.7 billion of 5.200% Senior Notes due 2035 and $300 million 5.500% Senior Notes due 2055. Interest on each series of notes will be paid semi-annually on May 15 and November 15 of each year, commencing on November 15, 2025.

Cat Financial’s medium-term notes are offered by prospectus and are issued through agents at fixed and floating rates. Medium-term notes due after one year have a weighted average interest rate of 3.8% with remaining maturities up to 5 years at December 31, 2025.
 
The aggregate amounts of maturities of long-term debt during each of the years 2026 through 2030, including amounts due within one year and classified as current, are:

 December 31,
(Millions of dollars)20262027202820292030
Machinery, Power & Energy$35 $30 $219 $522 $805 
Financial Products7,085 8,890 7,528 2,590 456 
 $7,120 $8,920 $7,747 $3,112 $1,261 

Medium-term notes of $1.75 billion maturing in the first quarter of 2026 were excluded from the current maturities of long-term debt in Statement 3 as of December 31, 2025 due to a $1.75 billion issuance of medium-term notes on January 8, 2026 of which $1.25 billion and $500 million mature in 2028 and 2031, respectively. The preceding maturity table reflects the reclassification of $1.75 billion from maturities in 2026 to $1.25 billion in 2028 and $500 million in 2031.

Interest paid on short-term and long-term borrowings for 2025, 2024 and 2023 was $1,842 million, $1,738 million and $1,435 million, respectively.
 
Please refer to Note 18 for fair value information on long-term debt.