v3.25.4
Segment information
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment information Segment information 
 
A. Basis for segment information
 
Our Executive Office is comprised of a Chief Executive Officer (CEO), four Group Presidents, a Chief Financial Officer (CFO), a Chief Legal Officer and General Counsel and a Chief Human Resources Officer. The Group Presidents and CFO are accountable for a related set of end-to-end businesses that they manage. The Chief Legal Officer and General Counsel leads the Law, Security and Public Policy Division. The Chief Human Resources Officer leads the Human Resources Organization. The CEO allocates resources and manages performance at the Group President/CFO level. As such, the CEO serves as our Chief Operating Decision Maker (CODM), and operating segments are primarily based on the Group President/CFO reporting structure.
 
Three of our operating segments, Construction Industries, Resource Industries and Power & Energy are led by Group Presidents. One operating segment, Financial Products, is led by the CFO who also has responsibility for Corporate Services. Corporate Services is a cost center primarily responsible for the performance of certain support functions globally and to provide centralized services; it does not meet the definition of an operating segment. One Group President leads one smaller operating segment that is included in the All Other Segment. The Law, Security and Public Policy Division and the Human Resources Organization are cost centers and do not meet the definition of an operating segment.

Effective July 1, 2025, we made the following changes to segment reporting. These changes were made to reflect changes in organizational accountabilities and refinements to our internal reporting.

•Responsibility for business strategy, product design, product management and development, manufacturing, marketing and sales and product support for and sourcing of wear and maintenance components and related parts moved from All Other Segment to Resource Industries.

•Responsibility for business strategy, product design, product management and development, manufacturing and product support for electronics and control systems moved from Resource Industries to All Other Segment.

•Responsibility for research and development for automation, electronics and software for machines and engines moved from Resource Industries to the All Other Segment.
Segment information for 2024 and 2023 has been retrospectively adjusted to conform to the 2025 presentation.

B. Description of segments
 
We have five operating segments, of which four are reportable segments. Following is a brief description of our reportable segments and the business activities included in the All Other Segment:
 
Construction Industries: A segment primarily responsible for supporting customers using machinery in infrastructure and building construction applications. Responsibilities include business strategy, product design, product management and development, manufacturing, marketing and sales and product support. The product portfolio includes asphalt pavers; backhoe loaders; cold planers; compactors; compact track loaders; forestry machines; material handlers; motor graders; pipelayers; road reclaimers; skid steer loaders; telehandlers; track-type loaders; track-type tractors (small, medium); track excavators (mini, small, medium, large); wheel excavators; wheel loaders (compact, small, medium); and related parts and work tools. Inter-segment sales are a source of revenue for this segment.

Resource Industries: A segment primarily responsible for supporting customers using machinery in mining, heavy construction and quarry and aggregates. Responsibilities include business strategy, product design, product management and development, manufacturing, marketing and sales and product support. The product portfolio includes large track-type tractors; large mining trucks; hard rock vehicles; electric rope shovels; draglines; hydraulic shovels; rotary drills; large wheel loaders; off-highway trucks; articulated trucks; wheel tractor scrapers; wheel dozers; landfill compactors; soil compactors; wide-body trucks; select work tools; machinery components; wear and maintenance components and related parts. In addition to equipment, Resource Industries also sells technology products and services to provide customers fleet management, equipment management analytics, autonomous machine capabilities, safety services and mining performance solutions. Resource Industries also manages areas that provide services to other parts of the company, including strategic procurement, lean center of excellence, integrated component design and manufacturing and research and development for hydraulic systems and cabs. Inter-segment sales are a source of revenue for this segment.

Power & Energy: A segment primarily responsible for supporting customers using reciprocating engines, turbines, diesel-electric locomotives and related services across industries serving Oil and Gas, Power Generation, Industrial and Transportation applications, including marine- and rail-related businesses as well as product support of on-highway engines. Responsibilities include business strategy, product design, product management, development and testing, manufacturing, marketing and sales and product support. The product and services portfolio includes turbines, centrifugal gas compressors, and turbine-related services; reciprocating engine-powered generator sets; integrated systems and solutions used in the electric power generation industry; reciprocating engines, drivetrain and integrated systems and solutions for the marine and oil and gas industries; reciprocating engines, drivetrain and integrated systems and solutions supplied to the industrial industry as well as Caterpillar machines; electrified powertrain and zero-emission power sources and service solutions development; and diesel-electric and hybrid locomotives and components and other rail-related products and services, including remanufacturing and leasing. Responsibilities also include the remanufacturing of Caterpillar reciprocating engines and components and remanufacturing services for other companies. Inter-segment sales are a source of revenue for this segment.
 
Financial Products Segment: Provides financing alternatives to customers and dealers around the world for Caterpillar products and services, as well as financing for power generation facilities that incorporate Caterpillar products. Financing plans include operating and finance leases, revolving charge accounts, installment sale contracts, repair/rebuild financing, working capital loans and wholesale financing plans. The segment also provides insurance and risk management products and services that help customers and dealers manage their business risk. Insurance and risk management products offered include physical damage insurance, inventory protection plans, extended service coverage and maintenance plans for machines and engines, and dealer property and casualty insurance. The various forms of financing, insurance and risk management products offered to customers and dealers help support the purchase and lease of Caterpillar equipment. The segment also earns revenues from Machinery, Power & Energy, but the related costs are not allocated to operating segments. Financial Products’ segment profit is determined on a pretax basis and includes other income/expense items.
 
All Other Segment: Primarily includes activities such as: business strategy; product management and development; parts distribution; integrated logistics solutions; electronics and control systems; distribution services responsible for dealer development and administration, including a wholly owned dealer in Japan; dealer portfolio management and ensuring the most efficient and effective distribution of machines, engines and parts; brand management and marketing strategy; research and development for automation, electronics and software for machines and engines and digital investments for new customer and dealer solutions that integrate data analytics with state-of-the-art digital technologies while transforming the buying experience. Results for the All Other Segment are included as a reconciling item between reportable segments and consolidated external reporting.
 
C. Segment measurement and reconciliations
 
We determine the segment profit of Construction Industries, Resource Industries, Power & Energy and our All Other Segment on a pretax basis and exclude most interest expense and certain other income (expense) items. We determine Financial Products Segment profit on a pretax basis and include other income (expense) items.

Our CODM evaluates the operating performance of the segments using segment profit as it provides insight into the financial health of each segment. The CODM reviews this metric regularly to compare the profitability of segments, identify trends, and evaluate which segments require additional resources or strategic adjustments. The CODM uses segment profit to support the allocation of resources predominantly in the annual budget and forecasting process. Additionally, the CODM monitors forecast-to-actual variances, focusing on areas where performance deviates from expectations, when evaluating the performance of each segment and making decisions about allocating capital and other resources to each segment.

There are several methodology differences between our segment reporting and our external reporting.  The following is a list of the more significant methodology differences:
 
•For Construction Industries, Resource Industries, Power & Energy and our All Other Segment, net assets generally include inventories, receivables, property, plant and equipment, goodwill, intangibles, accounts payable and customer advances. We generally manage at the corporate level liabilities other than accounts payable and customer advances, and we do not include these in segment operations. Financial Products Segment assets generally include all categories of assets.
 
•We value segment inventories and cost of sales using a current cost methodology.

•We amortize goodwill allocated to segments using a fixed amount based on a 20-year useful life. This methodology difference only impacts segment assets. We do not include goodwill amortization expense in segment profit. In addition, we have allocated to segments only a portion of goodwill for certain acquisitions made in 2011 or later.

•We generally manage currency exposures for operating segments, other than Financial Products, at the corporate level and do not include in segment profit the effects of changes in exchange rates on results of operations within the year. We report the net difference created in the translation of revenues and costs between exchange rates used for U.S. GAAP reporting and exchange rates used for segment reporting as a methodology difference.

•We do not include stock-based compensation expense in segment profit.

•Postretirement benefit expenses are split; segments are generally responsible for service costs, with the remaining elements of net periodic benefit cost included as a methodology difference.

Reconciling items are created based on accounting differences between segment reporting and our consolidated external reporting. Please refer to pages 121 to 122 for financial information regarding significant reconciling items. Most of our reconciling items are self-explanatory given the above explanations. For the reconciliation of profit, we have grouped the reconciling items as follows:
 
•Corporate costs: These costs are related to corporate requirements primarily for compliance and legal functions for the benefit of the entire organization.
•Restructuring income/costs: May include costs for employee separation, long-lived asset impairments, contract terminations and (gains)/losses on divestitures. These costs are included in Other operating (income) expenses except for defined-benefit plan curtailment losses and special termination benefits, which are included in Other income (expense). Restructuring costs also include other exit-related costs, which may consist of accelerated depreciation, inventory write-downs, building demolition, equipment relocation and project management costs and LIFO inventory decrement benefits from inventory liquidations at closed facilities, all of which are primarily included in Cost of goods sold. See Note 24 for more information.

•Methodology differences: See previous discussion of significant accounting differences between segment reporting and consolidated external reporting.

•Timing: Timing differences in the recognition of costs between segment reporting and consolidated external reporting. For example, we report certain costs on the cash basis for segment reporting and the accrual basis for consolidated external reporting.
For the years ended December 31, 2025, 2024 and 2023, sales and revenues by geographic region reconciled to consolidated sales and revenues were as follows:
Sales and Revenues by Geographic Region
(Millions of dollars)
North
 America
Latin
 America
EAME
Asia/
 Pacific
External Sales and RevenuesIntersegment Sales and RevenuesTotal Sales and Revenues
2025    
Construction Industries$14,064 $2,358 $4,595 $3,783 $24,800 $260 $25,060 
Resource Industries4,643 2,292 2,061 3,189 12,185 289 12,474 
Power & Energy15,558 1,985 5,717 3,883 27,143 5,058 32,201 
Financial Products Segment2,841 442 511 426 4,220 
1
— 4,220 
Total sales and revenues from reportable segments37,106 7,077 12,884 11,281 68,348 5,607 73,955 
All Other Segment26 — 6 14 46 281 327 
Corporate Items and Eliminations(523)(89)(97)(96)(805)(5,888)(6,693)
Total Sales and Revenues$36,609 $6,988 $12,793 $11,199 $67,589 $— $67,589 
2024
Construction Industries$14,576 $2,553 $4,315 $3,900 $25,344 $111 $25,455 
Resource Industries4,597 2,079 1,809 3,615 12,100 371 12,471 
Power & Energy13,005 1,763 5,787 3,533 24,088 4,766 28,854 
Financial Products Segment2,702 402 505 444 4,053 
1
— 4,053 
Total sales and revenues from reportable segments34,880 6,797 12,416 11,492 65,585 5,248 70,833 
All Other Segment20 (2)7 11 36 308 344 
Corporate Items and Eliminations(503)(87)(107)(115)(812)(5,556)(6,368)
Total Sales and Revenues$34,397 $6,708 $12,316 $11,388 $64,809 $— $64,809 
2023    
Construction Industries$15,343 $2,307 $5,254 $4,390 $27,294 $124 $27,418 
Resource Industries5,292 2,040 2,075 3,922 13,329 340 13,669 
Power & Energy11,982 1,983 5,929 3,461 23,355 4,646 28,001 
Financial Products Segment2,440 416 491 438 3,785 
1
— 3,785 
Total sales and revenues from reportable segments35,057 6,746 13,749 12,211 67,763 5,110 72,873 
All Other Segment28 (1)12 6 45 318 363 
Corporate Items and Eliminations(479)(80)(88)(101)(748)(5,428)(6,176)
Total Sales and Revenues$34,606 $6,665 $13,673 $12,116 $67,060 $— $67,060 
1 Includes revenues from Construction Industries, Resource Industries, Power & Energy and All Other Segment of $712 million, $711 million and $690 million in the years ended December 31, 2025, 2024 and 2023, respectively.
For the years ended December 31, 2025, 2024 and 2023, Power & Energy segment sales by end user application were as follows:

Power & Energy External Sales
(Millions of dollars)
202520242023
Oil and Gas$7,502 $6,980 $6,988 
Power Generation10,275 7,756 6,362 
Industrial4,071 3,990 4,871 
Transportation5,295 5,362 5,134 
Power & Energy External Sales$27,143 $24,088 $23,355 
Profit from Reportable Segments
(Millions of dollars)
    
Construction IndustriesResource IndustriesPower & EnergyFinancial Products Segment Total from Reportable Segments
2025
Sales and revenues$25,060 $12,474 $32,201 $4,220 $73,955 
Less 1:
Cost of goods sold18,393 9,018 22,474 — 49,885 
SG&A/R&D 2
1,902 1,513 3,330 829 7,574 
Other segment items 3
90 (45)(21)2,425 2,449 
Segment Profit$4,675 $1,988 $6,418 $966 $14,047 
2024
Sales and revenues$25,455 $12,471 $28,854 $4,053 $70,833 
Less 1:
Cost of goods sold17,326 8,452 19,796 — 45,574 
SG&A/R&D 2
1,931 1,460 3,241 771 7,403 
Other segment items 3
33 21 81 2,350 2,485 
Segment Profit$6,165 $2,538 $5,736 $932 $15,371 
2023
Sales and revenues$27,418 $13,669 $28,001 $3,785 $72,873 
Less 1:
Cost of goods sold18,658 9,439 19,875 — 47,972 
SG&A/R&D 2
1,844 1,395 3,084 691 7,014 
Other segment items 3
(59)(1)106 2,185 2,231 
Segment Profit$6,975 $2,836 $4,936 $909 $15,656 
1 The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Inter-segment income/expenses are included within the amounts shown.
2 Includes selling, general and administrative (SG&A) and research and development (R&D) expenses. The combined presentation aligns with the segment-level information that is regularly provided to the CODM.
3 Other segment items for each reportable segment primarily includes:

Construction Industries/Resource Industries/Power & Energy – other operating (income) expenses, currency impacts defined as a methodology difference between exchange rates used in U.S. GAAP and segment reporting, and equity in (profit) loss of unconsolidated affiliated companies.

Financial Products Segment – interest expense, Cat Financial’s depreciation on equipment leased to others, Insurance Services’ underwriting expenses and investment and interest income, and foreign exchange (gains) losses.
Reconciliation of Consolidated profit before taxes:  
(Millions of dollars)
202520242023
Total profit from reportable segments14,047 15,371 15,656 
Profit from All Other Segment(8)43 16 
Cost centers(11)(1)(7)
Corporate costs(1,006)(889)(913)
Timing(175)133 (30)
Restructuring costs(445)(359)(780)
Methodology differences:
Inventory/cost of sales49 33 160 
Postretirement benefit income (expense)185 67 (65)
Stock-based compensation expense(230)(223)(208)
Financing costs(180)(126)(91)
Currency(81)145 6 
Goodwill impairment charge— — — 
Other income/expense methodology differences(470)(740)(624)
Other methodology differences(134)(81)(70)
Total consolidated profit before taxes$11,541 $13,373 $13,050 

Reconciliation of Assets:
(Millions of dollars)December 31,
20252024
Assets from reportable segments:
Construction Industries$5,442 $5,546 
Resource Industries6,087 6,082 
Power & Energy11,387 11,772 
Financial Products Segment41,476 36,925 
Total assets from reportable segments64,392 60,325 
Assets from All Other Segment1,516 1,403 
Items not included in segment assets:
Cash and cash equivalents9,333 6,165 
Deferred income taxes2,749 3,194 
Goodwill and intangible assets4,669 4,478 
Property, plant and equipment – net and other assets4,689 4,808 
Inventory methodology differences(3,622)(3,560)
Liabilities included in segment assets15,330 11,973 
Other(471)(1,022)
Total assets$98,585 $87,764 
Reconciliation of Depreciation and amortization:
(Millions of dollars)
202520242023
Depreciation and amortization from reportable segments:
   Construction Industries$266 $233 $221 
   Resource Industries252 230 277 
   Power & Energy661 578 551 
   Financial Products Segment719 740 731 
Total depreciation and amortization from reportable segments1,898 1,781 1,780 
Items not included in segment depreciation and amortization:
All Other Segment267 284 261 
Cost centers103 95 91 
Other(6)(7)12 
Total depreciation and amortization$2,262 $2,153 $2,144 

Reconciliation of Capital expenditures:   
(Millions of dollars)
2025
2024
2023
Capital expenditures from reportable segments:
Construction Industries$358 $323 $376 
Resource Industries353 228 210 
Power & Energy1,774 1,279 944 
Financial Products Segment1,341 1,085 1,299 
Total capital expenditures from reportable segments3,826 2,915 2,829 
Items not included in segment capital expenditures:
All Other Segment254 285 295 
Cost centers98 193 102 
Timing22 (149)(44)
Other86 (29)(90)
Total capital expenditures$4,286 $3,215 $3,092 
Enterprise-wide Disclosures:
Information about Geographic Areas:
    Property, plant and equipment - net
 
External sales and revenues 1
December 31,
(Millions of dollars)2025202420232025 2024
Inside United States$32,880 $30,624 $31,053 $9,455  $8,213 
Outside United States34,709 34,185 36,007 5,685 5,148 
Total$67,589 $64,809 $67,060 $15,140  $13,361 
1 Sales of MP&E are based on dealer or customer location. Revenues from services provided are based on where service is rendered.