NYSE: CAT · Construction Machinery & Heavy Transportation Equipment
Caterpillar Inc.
Caterpillar describes itself as the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines (Solar Turbines) and diesel-electric locomotives. It sells mainly through 150 independent dealers serving 190 countries, and finances customers through Cat Financial. 2025 sales and revenues rose 4% to $67.6 billion, but operating profit fell 15% to $11.2 billion: Construction and Resource Industries profits dropped while Power & Energy profit grew 12%. The order backlog jumped from $30.0 billion to $51.2 billion, led by Power & Energy. Joe Creed became CEO in May 2025, and Q2 2026 sales topped $20 billion for the first time, up 24%.
Last updated
Analysis last edited: October 12, 2026 · Financial data fetched: October 17, 2026 10:20 (SEC EDGAR) · Source 10-K filed: February 13, 2026
Built on10-K FY2025 · filed 2026-02-1310-Q (quarter ended 2026-09-30) · filed 2026-11-04
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
At a glanceFrom SEC data
Eight headline measures, each placed among the companies covered on this site.
- Revenue growthCAGRSmooths out year-to-year swings into "grew X% a year on average." Makes growth pace comparable across companies of very different sizes.
- 10.1%
- Operating marginOperating marginHow many cents of operating profit are left per dollar of revenue. Reflects pricing power and cost structure.
- 16.5%
- ROIC minus WACCROIC − WACC spreadThe difference between ROIC and WACC. Consistently positive implies value creation; consistently negative implies value destruction.
- +6.2 pts
- Net debt ÷ EBITDAEBITDAOperating income with D&A added back. A rough proxy for cash-generating power that’s less distorted by capital intensity, depreciation method, or financing/tax differences than net income.
- 2.0x
- Cash conversionOperating CF ÷ net income (cash conversion)How much of reported profit shows up as actual cash. 1x or higher means profit is backed by cash.
- 1.32x
- Dividend raisesDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year).
- 5 of 5
- P/E todayP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing.
- 23.3x
- Betaβ (beta)How much a stock moves, on average, for a 1% move in the overall market. Above 1 means more volatile than the market, which raises the return shareholders require. This site computes it from about 2.5 years (roughly 130 weeks) of weekly returns, built from Yahoo Finance daily prices, regressed against an S&P 500 ETF (SPY) as the market proxy, then applies the well-known long-run mean-reversion adjustment (0.67 × β + 0.33) as the WACC default.
- 1.04
Higher than 63% of 372 non-financial companies
Average yearly growth over the years shown
Higher than 43% of 311 non-financial companies
Latest fiscal year (FY2025)
Higher than 61% of 311 non-financial companies
Return on capital above (or below) its estimated cost
Higher than 54% of 304 non-financial companies
Below 0 means more cash than debt
Higher than 36% of 349 non-financial companies
Operating cash flow ÷ net income
Years the dividend per share rose, of the last 5
Latest close 2026-11-04; trailing 12 months to 2026-09-30
Above 1 = moves more than the market
Each marker shows where this company sits among the non-financial companies covered on this site, not all listed companies (left = lowest, right = highest). A high position is not automatically good — for net debt ÷ EBITDA, higher means more debt. Details and formulas are in the sections below and in How to read this.
02
Valuation todayFrom SEC data
Price-based measures at the latest close, next to the same measures at the last fiscal year-end.
Share price$591.66close on 2026-11-04
Market cap$275.3B
- P/EP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing. today
- 23.3x
- P/BP/BShare price ÷ book value per share. Below 1x means the market values the company below its accounting net worth. This site uses the closing price nearest the fiscal year-end and highlights sub-1x readings. today
- 12.9x
- EV/EBITDAEV/EBITDAEnterprise value (≈ market cap + interest-bearing debt − cash) as a multiple of EBITDA — roughly, "how many years of EBITDA to buy the whole company." Lower is generally viewed as cheaper, and it’s more comparable than P/E across companies with different debt loads or depreciation policies. This site excludes noncontrolling interests from the EV calculation. today
- 22.5x
- FCF yieldFree cash flow (FCF)Operating CF minus capital expenditures — cash generated by the business after funding its own investment, available for dividends, buybacks, acquisitions, or debt paydown. Acquisitions and securities purchases (also in investing CF) are not subtracted, so FCF can be positive in a year when total investing CF exceeds operating CF. today
- 3.2%
- Dividend yieldDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year). today
- 1.0%
At FY2025 year-end: 30.5x
Earnings: trailing 12 months to 2026-09-30
At FY2025 year-end: 12.5x
Book value at FY2025 year-end
At FY2025 year-end: 21.8x
EBITDA for FY2025
At FY2025 year-end: 3.3%
Free cash flow for FY2025
Dividends per share for FY2025
“Today” uses the latest closing price (2026-11-04, Yahoo Finance daily closing prices) and shares outstanding at the last fiscal year-end. The rest of this page — including the financial table and ROIC vs. WACC — uses fiscal year-end prices. These are reference figures, not a judgment of whether the stock is cheap or expensive.
03
What changed since last earningsFrom SEC data
The latest reported quarter against the same quarter a year earlier, the balance sheet against the previous quarter-end, and what management said in its latest earnings release.
Quarter ended Sep 30, 2026.
- Revenue$17.64B → $20.68B (vs. a year earlier)↑ +17.3%$17.64B → $20.68B (vs. a year earlier)
- Operating margin17.3% → 20.4% (vs. a year earlier)↑ +3.1 pts17.3% → 20.4% (vs. a year earlier)
- Net income$2.3B → $3.29B (vs. a year earlier)↑ +42.9%$2.3B → $3.29B (vs. a year earlier)
- Diluted EPS$4.88 → $7.13 (vs. a year earlier)↑ +46.1%$4.88 → $7.13 (vs. a year earlier)
- Cash$6.71B → $7.93B (vs. previous quarter-end)↑ +18.1%$6.71B → $7.93B (vs. previous quarter-end)
Source: Form 10-Q ↗ (SEC XBRL). Long-term debt is the tagged long-term debt figure and leaves out short-term borrowings.
From the earnings release of Oct 29, 2026.
Key changes
Q3 sales and revenues $20.7B, up 17%. Source sentence
Sales and revenues for the third quarter of 2026 were $20.7 billion, a 17% increase compared with $17.6 billion in the third quarter of 2025.
Operating margin 20.4% versus 17.3%. Source sentence
Operating profit margin was 20.4% for the third quarter of 2026, compared with 17.3% for the third quarter of 2025.
Deployed $2.0B for share repurchases and dividends. Source sentence
● Deployed $2.0 billion of cash for share repurchases and dividends in the third quarter
Written by AI. A line appears only if its figures and direction match the quoted sentence, which an automatic check confirms. Companies' outlooks are their own and may not be met. Read the release ↗
04
Company profileFrom SEC dataShow
- Legal name
- CATERPILLAR INC
- Headquarters
- IRVING, TX
- Incorporated in
- Delaware
- Fiscal year end
- 12/31
- Exchange & ticker
- NYSE: CAT
- Industry
- Construction Machinery & Heavy Transportation Equipment
- CIK
- 18230
Workforce (as of FY2025 year-end)
Employees
118,000
Source: Form 10-K (FY2025) cover page and business description
05
Earnings calendarFrom SEC dataShow
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q4 FY2026
Quarter end: December 2026. In past years, Q4 results were released 29–36 days after quarter end (Jan 29, 2026; Jan 30, 2025; Feb 5, 2024). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around December 31.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 25–37 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q3 FY2026 | Sep 30, 2026 | Oct 29, 2026 (+29 days) | Nov 4, 2026 10-Q (+35 days) |
| Q2 FY2026 | Jun 30, 2026 | Aug 4, 2026 (+35 days) | Aug 5, 2026 10-Q (+36 days) |
| Q1 FY2026 | Mar 31, 2026 | Apr 30, 2026 (+30 days) | May 6, 2026 10-Q (+36 days) |
| Q4 FY2025 | Dec 31, 2025 | Jan 29, 2026 (+29 days) | Feb 13, 2026 10-K (+44 days) |
| Q3 FY2025 | Sep 30, 2025 | Oct 29, 2025 (+29 days) | Nov 3, 2025 10-Q (+34 days) |
| Q2 FY2025 | Jun 30, 2025 | Aug 5, 2025 (+36 days) | Aug 6, 2025 10-Q (+37 days) |
| Q1 FY2025 | Mar 31, 2025 | Apr 30, 2025 (+30 days) | May 7, 2025 10-Q (+37 days) |
| Q4 FY2024 | Dec 31, 2024 | Jan 30, 2025 (+30 days) | Feb 14, 2025 10-K (+45 days) |
| Q3 FY2024 | Sep 30, 2024 | Oct 30, 2024 (+30 days) | Nov 6, 2024 10-Q (+37 days) |
| Q2 FY2024 | Jun 30, 2024 | Aug 6, 2024 (+37 days) | Aug 7, 2024 10-Q (+38 days) |
| Q1 FY2024 | Mar 31, 2024 | Apr 25, 2024 (+25 days) | May 1, 2024 10-Q (+31 days) |
| Q4 FY2023 | Dec 31, 2023 | Feb 5, 2024 (+36 days) | Feb 16, 2024 10-K (+47 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. For a quarter whose 10-Q or 10-K isn’t filed yet, the date is the latest Item 2.02 8-K since the previous report, which may be a preliminary or other results-related update. Fiscal years are labeled by the calendar year in which they end.
06
Flagship products & servicesSite analysis
Construction Industries
Construction equipment
Examples: Excavators, loaders, dozers, compact equipment
$25.1B of 2025 sales.
Resource Industries
Mining equipment
Examples: Mining trucks, large dozers, autonomy
$12.5B.
Power & Energy
Engines, gensets and turbines
Examples: Cat and Perkins engines, Solar turbines, FG Wilson generators
$32.2B.
Financial Products
Cat Financial
Examples: Customer and dealer financing
$4.2B.
From the FY2025 Form 10-K.
U.S., worldwide and country/regional share of flagship products/services
Only shares the company itself states (in its filings or press releases, sometimes citing a research firm) are shown. Scope and timing vary by figure — treat these as approximate.
Construction and mining equipment, engines, turbines, locomotives
Worldwide
U.S. share
—
Not disclosedWorldwide share
World's leading manufacturer
Company-disclosedPer the 10-K; no percentage is given.
Sources:
07
Recent strategic focusSite analysis
FY2025 from the 10-K, and 2026 events from the Q2 earnings release and 8-Ks.
Q2 2026 results
Record sales and revenues of $20.5B (+24%), profit per share $7.77; operating margin 20.9%.
Source: Q2 2026 earnings release (8-K filed 2026-08-04)
Leadership
Executive chairman Jim Umpleby left the board April 1, 2026; Kyle Epley became CFO May 1, 2026; Lynn Good joined the board August 1, 2026.
Source: 8-Ks filed 2026-01-06, 2026-04-10 and 2026-04-13
Segment change
Rail moved from Power & Energy to Resource Industries effective January 1, 2026.
Source: 8-K filed 2026-03-26
Capex ÷ D&A (FY2025)
1.25x
Roughly matches depreciation — mostly maintenance/replacement
formulacapital expenditures ÷ depreciation & amortization
e.g.$2,821M ÷ $2,262M = 1.25x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
R&D-to-revenue ratio (FY2025)
3.2%
formularesearch & development expense ÷ revenue × 100
e.g.$2,148M ÷ $67,589M × 100 = 3.2%
M&A spend (6-year total)
$845M
Latest year: $47M
Cash-flow-statement spending on acquisitions, net of cash acquired
Where the money goes, over time
Unit: $M. Capex went from $978M in FY2020 to $2.82B in FY2025
- Capex
- R&D
- M&A spend
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-13
08
Key figures at a glanceFrom SEC data
FY2020–FY2025, 6 years.
Revenue (FY2025)
$67.59B
As reported in the 10-K
Revenue CAGR (5 years)
+10.1%▲favorable
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($67,589M ÷ $41,748M) ^ (1÷5) − 1 = 10.1%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2025)
16.5%▲favorable
+5.6pt vs. 5 years ago
formulaoperating income ÷ revenue × 100
e.g.$11,151M ÷ $67,589M × 100 = 16.5%
ROE (FY2025)
43.5%▲favorable
6-year average: 43.1%
As reported in the 10-K
P/B (FY2025 end)
12.50x
formulafiscal year-end closing price ÷ book value per share
e.g.$572.87 ÷ $45.82 = 12.50x
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2025 end)
21.8x
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
e.g.($266,556M + $36,210M − $9,980M) ÷ ($11,151M + $2,262M) = 21.8x
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ▲
Revenue grew +10.1% a year over 5 years (strong growth)
From $41.75B in FY2020 to $67.59B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ▲
Operating margin improved: 10.9% → 16.5%
How much operating profit is left per $100 of revenue. It moved +5.6 points over 5 years — pricing power, cost control, and product mix all show up here.
- ▼
Equity ratio is 21.6% (relatively heavy reliance on debt)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ▲
Free cash flow was positive in 6 of 6 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
- ▲
ROE averaged 43.1% over 6 years (latest: 43.5%)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
09
Business modelSite analysis
Business Model Canvas
The whole company in nine blocks. Left side: how it delivers (partners, activities, resources, costs). Right side: who it serves and how it earns. Every entry comes from the company’s filings shown on this page.
08 · who helps
Key partners
No partners or suppliers named in the filings.
07 · what it does
Key activities
Machinery
Designing and manufacturing machines- Parts and services through dealers
Power & Energy
Engine and turbine manufacturing- Integrated power systems
Financial Products
Loans and leases
06 · what it draws on
Key resources
Machinery
Steel, castings and components- About 118,000 full-time employees
Power & Energy
Engine and turbine technology (Cat, Perkins, Solar, FG Wilson)Financial Products
Debt financing
02 · why customers buy
Value propositions
- Construction, mining and energy equipment; Caterpillar believes its control of the integration and design of key machine components is a competitive advantage.
04 · how it keeps them
Customer relationships
- Dealer service and parts over the equipment's life, and financing from Cat Financial, whose marketing programs Caterpillar calls a significant competitive advantage.
03 · how it reaches them
Channels
- Mostly independent dealers worldwide; engines sold directly to OEMs.
01 · who it serves
Customer segments
Machinery
Construction contractors, quarries, mining companiesPower & Energy
Power generation, oil and gas, industrial and marine customersFinancial Products
Equipment buyers and dealers
09 · where money goes
Cost structure
FY2025, share of revenue ($67.59B)
- Cost of revenue0.1%
- Research & development3.2%
- Selling, general & administrative10.3%
- Other operating costs69.9%
Operating profit left: 16.5% of revenue. Depreciation & amortization (inside the costs above): $2.26B. Capital spending: $2.82B.
Source: Form 10-K income statement and cash-flow statement (SEC XBRL).
05 · how money comes in
Revenue streams
Machinery
Machine sales to dealers- Parts and services
Power & Energy
Equipment sales- Service
Financial Products
Financing income
Value propositions, channels and customer relationships: Form 10-K (FY2025)
Machinery (Construction and Resource Industries)
Excavators, loaders, dozers and other construction machines, plus mining trucks and equipment; from 2026 Resource Industries also includes rail.
01 what it draws on
Inputs & resources
- Steel, castings and components
- About 118,000 full-time employees
02 what it does
Activities
- Designing and manufacturing machines
- Parts and services through dealers
03 who it serves
Customers
- Construction contractors, quarries, mining companies
04 how money comes in
How it earns
- Machine sales to dealers
- Parts and services
Machinery (Construction and Resource Industries): how it makes money
- Construction Industries 2025 sales $25.1B, profit $4.68B (-24%).
- Resource Industries sales $12.5B, profit $1.99B (-22%).
Power & Energy
Reciprocating engines and generator sets, Solar industrial gas turbines and integrated power systems for oil and gas, industrial and power generation markets (including data centers); rail moved to Resource Industries in 2026.
01 what it draws on
Inputs & resources
- Engine and turbine technology (Cat, Perkins, Solar, FG Wilson)
02 what it does
Activities
- Engine and turbine manufacturing
- Integrated power systems
03 who it serves
Customers
- Power generation, oil and gas, industrial and marine customers
04 how money comes in
How it earns
- Equipment sales
- Service
Power & Energy: how it makes money
- 2025 sales $32.2B (+12%), profit $6.42B (+12%) — the largest segment.
- The largest increase in the $51.2B backlog was in Power & Energy.
Financial Products
Cat Financial and Insurance Services provide retail and wholesale financing to customers and dealers.
01 what it draws on
Inputs & resources
- Debt financing
02 what it does
Activities
- Loans and leases
03 who it serves
Customers
- Equipment buyers and dealers
04 how money comes in
How it earns
- Financing income
Financial Products: how it makes money
- 2025 segment revenue $4.2B, profit $966M.
Government & regulation around the business
Non-market factors from the company’s filings: what governments and regulators fund, buy, set, approve or restrict, and which part of the flow above each one touches.
Caterpillar expects about $2.6B of tariff costs in 2026, and emissions rules shape its products.
Trade & export rules
Tariffs and trade rules
Expects tariff impact of about $2.6B in 2026 based on tariffs in place by January 29, 2026.
Constrains the businessTouches: Inputs & resourcesSource: Form 10-K (FY2025)
Environmental rules
Product emissions rules
Environmental laws affect product development, including engine emissions.
Constrains the businessTouches: ActivitiesSource: Form 10-K (FY2025)
Revenue by segment (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue, margin = segment profit ÷ segment revenue × 100
Power & Energy
32,201 (44%)profit 6,418 · margin 19.9%
Construction Industries
25,060 (34%)profit 4,675 · margin 18.7%
Resource Industries
12,474 (17%)profit 1,988 · margin 15.9%
Financial Products
4,220 (6%)profit 966 · margin 22.9%
Source: Form 10-K (FY2025) — MD&A, sales and profit by segment Segment sales include inter-segment sales; profit is segment profit before corporate items. Rail moved from Power & Energy to Resource Industries from January 2026.
10
Where it earnsSite analysis
Many U.S.-listed companies earn most of their revenue outside the U.S. — this breaks down revenue by country/region so it's clear where the business actually makes its money.
Largest market (FY2025)
North America — 54% of revenue
Revenue by country / region (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
North America
36,609 (54%)EAME
12,793 (19%)Asia/Pacific
11,199 (17%)Latin America
6,988 (10%)
Source: Form 10-K (FY2025) — sales and revenues by geographic region
11
Contract structureSite analysisShow
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
Caterpillar sells mostly to independent dealers, who resell and service equipment; dealer inventory changes affect sales. The firm order backlog was $51.2B at year-end 2025, with $19.3B not expected to be filled in 2026.
Sales to dealers
Most of $63.98B of machinery, power and energy sales
Typical term: Dealers buy and resell; 41 U.S. and 109 non-U.S. dealers
Dealers do not deal exclusively with Caterpillar products.
Financing (Cat Financial)
$3.6B of financial products revenue
Typical term: Retail and wholesale loans and leases
Source: Form 10-K (FY2025)
12
Customers & suppliersSite analysis
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
Independent dealers and their customers in construction, mining, energy and transportation; OEMs that buy engines.
Named by the company
None named in the 10-K or the company’s press releases.
What the filings disclose
- Machines are distributed through 41 U.S. and 109 non-U.S. dealers serving 190 countries. (Form 10-K (FY2025), Item 1)
Suppliers
Domestic and international suppliers of steel, castings, forgings and components.
Named by the company
None named in the 10-K or the company’s press releases.
13
Competitors & peersSite analysis
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
Caterpillar's 10-K names global competitors for each business.
Competitors named in the 10-K
Construction and mining machinery
- CNH Industrialsite ↗
- Deere & Companysite ↗
- Doosan Bobcatsite ↗
- Hitachi Construction Machinerysite ↗
- HD Hyundai Construction Equipmentsite ↗
- J.C. Bamford Excavators (JCB)site ↗
- Kobelco Construction Machinerysite ↗
- Komatsusite ↗
- Kubotasite ↗
- Sany Heavy Industrysite ↗
- Volvo Groupsite ↗
- XCMGsite ↗
Plus regional competitors in China such as LiuGong and SDLG.
Engines, power generation and turbines
Peer group the company chose
2025 Compensation Peer Group, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.
Companies comparable in size, competitors and industry peers, and sources of executive talent with large non-U.S. operations.
- 3Msite ↗
- Archer-Daniels-Midlandsite ↗
- Boeingsite ↗
- Cisco Systemssite ↗
- Cumminssite ↗
- Deere & Companysite ↗
- Emersonsite ↗
- FedExsite ↗
- Ford Motorsite ↗
- GE Vernovasite ↗
- GE Aerospacesite ↗
- General Motorssite ↗
- Halliburtonsite ↗
- Honeywellsite ↗
- Intelsite ↗
- Johnson Controlssite ↗
- PACCARsite ↗
- RTXsite ↗
Also named as competitors in the 10-K
The proxy lists General Electric Company, shown here as GE Aerospace.
Source: Proxy statement (DEF 14A, filed 2026-04-30) — 2025 Compensation Peer GroupCompany names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
14
Six years of financialsFrom SEC data
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-13
Profit over time (operating → net)
Unit: $M
- Operating income
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-13
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-13
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
- Dividend per share
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-13
| Line item | FY202010-K on EDGAR ↗ | FY202110-K on EDGAR ↗ | FY202210-K on EDGAR ↗ | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ |
|---|---|---|---|---|---|---|
| Income statement ($M) | ||||||
| Revenue | 41,748 | 50,971 | 59,427 | 67,060 | 64,809 | 67,589 |
| Operating income | 4,553 | 6,878 | 7,904 | 12,966 | 13,072 | 11,151 |
| Pretax income | 3,995 | 8,204 | 8,752 | 13,050 | 13,373 | 11,541 |
| Net income (attributable) | 3,003 | 6,493 | 6,704 | 10,332 | 10,788 | 8,882 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | 22.1% | 16.6% | 12.8% | -3.4% | 4.3% |
| Operating margincalcoperating income ÷ revenue × 100 | 10.9% | 13.5% | 13.3% | 19.3% | 20.2% | 16.5% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | 7.2% | 12.7% | 11.3% | 15.4% | 16.6% | 13.1% |
| Balance sheet ($M) | ||||||
| Total assets | 78,324 | 82,793 | 81,943 | 87,476 | 87,764 | 98,585 |
| Total equity | 15,378 | 16,516 | 15,891 | 19,503 | 19,494 | 21,318 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | 28,014 | 31,437 | 31,671 | 29,115 | 31,744 | 36,210 |
| Equity ratio | 19.6% | 19.9% | 19.4% | 22.3% | 22.2% | 21.6% |
| ROE | 19.5% | 40.7% | 41.4% | 58.4% | 55.3% | 43.5% |
| Cash flow ($M) | ||||||
| Operating CF | 6,327 | 7,198 | 7,766 | 12,885 | 12,035 | 11,739 |
| Investing CF | -1,485 | -3,084 | -2,541 | -5,871 | -2,453 | -4,707 |
| Financing CF | -3,755 | -4,188 | -7,281 | -6,932 | -9,565 | -3,899 |
| Free cash flowcalccash flow from operations − capital expenditures | 5,349 | 6,105 | 6,470 | 11,288 | 10,047 | 8,918 |
| Cash and equivalents | 9,352 | 9,254 | 7,004 | 6,978 | 6,889 | 9,980 |
| Per share & other | ||||||
| EPS ($) | 5.46 | 11.83 | 12.64 | 20.12 | 22.05 | 18.81 |
| BVPS ($) | 28.20 | 30.82 | 30.78 | 39.05 | 40.79 | 45.82 |
| Dividend per share ($) | 4.12 | 4.36 | 4.71 | 5.10 | 5.53 | 5.94 |
| Payout ratiocalcdividend per share ÷ diluted EPS × 100 | 75.5% | 36.9% | 37.3% | 25.3% | 25.1% | 31.6% |
| P/E (x) | 33.3 | 17.5 | 19.0 | 14.7 | 16.5 | 30.5 |
| EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization) | 16.9 | 14.4 | 14.7 | 11.2 | 13.0 | 21.8 |
| P/B (x)calcfiscal year-end closing price ÷ book value per share | 6.45 | 6.71 | 7.78 | 7.57 | 8.89 | 12.50 |
P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (the consolidated financial statements and, for older years, earlier 10-Ks), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
Last 8 quarters
Three-month figures from 10-Q filings. Change is versus the same quarter a year earlier. Newest quarter on top.
| Quarter ended | Revenue | Operating income | Net income | Diluted EPS |
|---|---|---|---|---|
| 2026-09-30 | $20.68B+17.3% | $4.21B+38.1% | $3.29B+42.9% | $7.13 |
| 2026-06-30 | $20.54B+24.0% | $4.3B+50.2% | $3.59B+64.9% | $7.77 |
| 2026-03-31 | $17.42B+22.2% | $3.09B+19.6% | $2.55B+27.2% | $5.47 |
| 2025-12-31 † | $19.13B+18.0% | $2.66B-9.0% | $2.4B-13.9% | — |
| 2025-09-30 | $17.64B | $3.05B | $2.3B | $4.88 |
| 2025-06-30 | $16.57B | $2.86B | $2.18B | $4.62 |
| 2025-03-31 | $14.25B | $2.58B | $2B | $4.20 |
| 2024-12-31 † | $16.22B | $2.92B | $2.79B | — |
† Fourth quarter = the 10-K’s annual figure minus the first three quarters; quarterly EPS isn’t derived this way because share counts change during the year.
15
Is ROIC above WACC?From SEC data
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
ROIC (FY2025)
16.1%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
e.g.$11,151M × (1 − 21.5%) ÷ $54,383M × 100 = 16.1%
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
WACC (this site’s estimate)
9.88%
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
e.g.Equity weight: $266.56B ÷ ($266.56B + $36.21B) = 88.0%
e.g.Debt weight: $36.21B ÷ ($266.56B + $36.21B) = 12.0%
e.g.WACC: 10.7% × 88.0% + 5.1% × (1 − 21.5%) × 12.0% = 9.88%
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
How firm is this? With the equity risk premium ±1 point and beta ±0.2, WACC runs 8.2%–11.9% and ROIC − WACC runs +4.2 to +7.9 points. The sign holds across this range. This describes the latest year and does not predict future value creation.
WACC 9.88% is this site’s estimate under the assumptions below (not a figure the company has published)
- Risk-free rate
- 4.95% (10-year Treasury, 2026-11-03)
- β
- 1.04 (price-derived adjusted beta)
- Equity risk premium
- 5.5%
- Cost of equity
- 10.67%
- Cost of debt
- 5.14%
- Tax rate
- 21.5% (effective rate, FY2023–FY2025)
- Capital structure (equity : debt)
- 88% : 12%
ROIC over time, vs. WACC
Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red
- ROIC (above WACC)
- ROIC (below WACC)
- WACC 9.88%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
Try different WACC assumptions
β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The risk-free rate starts at the 10-year Treasury yield on 2026-11-03 (U.S. Treasury).
Initial β: 1.04 (price-derived adjusted beta. Raw β 1.06, R² 0.25, 130 weeks)
formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)
e.g.0.67 × 1.056 + 0.33 = 1.037
termsβ (beta)
Period 2024-05-10–2026-11-04, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.
formularisk-free rate + β × equity risk premium
e.g.5.0% + 1.04 × 5.5% = 10.7%
termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)
formulafiscal year-end closing price × shares outstanding (= market cap)
formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)
16
What the price implies (DCF)From SEC data
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Growth the price implies (price on 2026-11-04)
6.9%
Perpetual FCF growth: g = r − FCF ÷ EV = 9.9% − 3.0%
Past FCF growth (FY2020–FY2025)
+10.8%
Compound annual rate, 5 years
Past revenue growth (FY2020–FY2025)
+10.1%
Compound annual rate, 5 years
Inputs (FY2025): free cash flow $8.92B (operating CF − capex); enterprise value $301.53B = market cap $275.3B (latest close, 2026-11-04) + debt $36.21B − cash and short-term investments $9.98B; r = WACC of 9.9% using this page’s default assumptions (β 1.04, risk-free 5.0%, market premium 5.5%).
Three WACC scenarios
The same calculation under cautious, base and optimistic cost-of-capital assumptions (risk-free rate fixed at the 10-year Treasury yield). Pick one to load it into the sliders below.
Try your own assumptions
V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.
Theoretical enterprise value
$297.27B
FCF $8.92B ÷ (9.9% − 6.9%)
Theoretical ÷ actual enterprise value
0.99x
Below 1x: these assumptions value the business below the market did
How sensitive the answer is
Theoretical ÷ actual enterprise value for each combination of r and g.
| g \ r | 7.9% | 8.9% | 9.9% | 10.9% | 11.9% |
|---|---|---|---|---|---|
| 0% | 0.37x | 0.33x | 0.30x | 0.27x | 0.25x |
| 2% | 0.50x | 0.43x | 0.37x | 0.33x | 0.30x |
| 4% | 0.76x | 0.60x | 0.50x | 0.43x | 0.37x |
| 6% | 1.56x | 1.02x | 0.76x | 0.60x | 0.50x |
| 8% | — | 3.29x | 1.56x | 1.02x | 0.76x |
A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap uses the latest close (2026-11-04) × shares at fiscal year-end; free cash flow and WACC inputs are from the latest fiscal year.
17
Earnings qualityFrom SEC dataShow
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 1.34x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): -3.1%
A small share of profit rests on accounting estimates.
- ✓
Core-earnings share (operating income ÷ pretax income): 97%
Most profit comes from core operations.
- ✓
Days sales outstanding: 64 → 55 days
No major slowdown in collecting on sales.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-13
Profit bridge (FY2025)
Unit: $M — what moved profit from operating income to net income
- Profit (each stage)
- Pushed profit up
- Pushed profit down
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-13
Receivables & inventory days
Unit: days — days grow when receivables or inventory build up faster than sales
- Days sales outstanding
- Days inventory outstanding
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
termsInventory · Cost of revenue (COGS)
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
e.g.$11,739M ÷ $8,882M = 1.32x
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
e.g.$11,151M ÷ $11,541M × 100 = 97%
termsOperating income · Income before income taxes (pretax income)
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
e.g.($9,282M + $10,920M) ÷ 2 ÷ $67,589M × 365 = 55 days
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
e.g.($16,827M + $18,135M) ÷ 2 ÷ $49M × 365 = 130216 days
termsInventory · Cost of revenue (COGS)
18
Who holds the sharesFrom SEC dataShow
How much of the stock large institutional investors report owning on SEC Form 13F, how much the directors and executive officers hold (and how much of the vote they control), and roughly how much is left for individual investors. Shown next to beta so the holder mix can be read alongside how much the stock swings.
Institutions, insiders and everyone else, 13F holdings as of 2026-06-30
“Everyone else” is what remains after shares reported on Form 13F and shares held by directors and executive officers: mostly individual investors, plus non-insider families or foundations and smaller or foreign institutions. The figures have different dates and 13F reports count some shares twice — read it as an approximate split.
- Held by 13F filers
- 72.0%
- Directors & officers (shares)
- <1%
- Everyone else (est.)
- 28.0%
- Directors & officers (voting power)
- <1%
- Institutional-ownership rank
- 372 of 416
- Beta (adjusted)
- 1.04
individuals and other non-13F holders
no separate voting figure; shown as shares
1 = most institutional; 89% of covered companies have more
above 1 = swings more than the market
- 330.8M shares reported by 4,045 13F filers ÷ 459.7M shares outstanding on 2026-06-30. Option positions are excluded.
- Directors and executive officers as a group, from the proxy statement’s beneficial-ownership table (percentage computed from the group’s share count ÷ shares outstanding); includes shares they can acquire within 60 days.
- A large “everyone else” share can still reflect a family, trust or foundation stake held outside the board; check the proxy statement’s 5% holders.
Sources: SEC Form 13F data set (holdings as of 2026-06-30) · Form DEF 14A filed None (beneficial ownership table) · Form 10-Q cover page (shares outstanding as of 2026-06-30)
19
Strengths & weaknessesSite analysis
Strengths
1. Global dealer network
One of the largest independent global dealer networks: 150 dealers serving 190 countries.
Evidence: Form 10-K (FY2025), Item 1
2. Power generation demand
Backlog rose to $51.2B, largest increase in Power & Energy; Q2 2026 sales a record $20.5B (+24%).
Evidence: Form 10-K (FY2025); Q2 2026 earnings release
3. Shareholder returns
Dividends per share rose from $4.36 (2021) to $5.94 (2025), and shares outstanding fell from 536M to 465M.
Evidence: SEC EDGAR XBRL
Weaknesses
1. Machinery profit decline
Construction Industries profit fell 24% and Resource Industries 22% in 2025, with unfavorable price realization in Construction Industries.
Evidence: Form 10-K (FY2025), MD&A
2. Cyclical end markets
Operating profit fell from $13.1B (2024) to $11.2B (2025).
Evidence: Form 10-K (FY2025)
20
What draws investors to itSite analysis
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2025)
30.5x
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2025)
1.04%
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2025)
32%
Dividends per share ÷ diluted EPS
FCF yield (FY2025)
3.3%
(Operating CF − capex) ÷ market cap
1. Power generation upcycle
Power & Energy is now the largest and fastest-growing segment, and the backlog reached $51.2B.
- What has to hold
- Power and data center demand keeps rising.
- The other side
- Machinery profits fell sharply in 2025, and the business is cyclical.
Evidence: Form 10-K (FY2025); Q2 2026 earnings release
These summarize facts in Caterpillar's filings, not a recommendation.
21
ResilienceSite analysisShow
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2025)
Cash & short-term investments ÷ debt due within a year
1.8x
$9.98B vs. $5.51B
Interest coverage (operating income ÷ interest expense)
6.0x
$11.15B vs. $1.86B
Free cash flow ÷ dividends paid
3.2x
$8.92B vs. $2.75B (FCF = operating CF − capex)
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | -3.4% in FY2024 ($67.06B → $64.81B) | Yes, by FY2025 |
| Operating income | -14.7% in FY2025 ($13.07B → $11.15B) | Not yet, as of FY2025 |
Covers only the 6 fiscal years on record (FY2020–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Backlog
$51.2B of firm orders at year-end 2025.
Source: Form 10-K (FY2025)
Cash generation
Operating cash flow $11.7B in 2025.
Source: SEC EDGAR XBRL
22
Legal & regulatory mattersSite analysisShow
Lawsuits, government investigations, enforcement actions and settlements the company discloses — where each stands, what is at stake, and what comes next. From the 10-K's Legal Proceedings and contingencies note, the latest 10-Q, and 8-Ks.
Caterpillar reports ordinary-course product liability (including asbestos claims), contract, employment, environmental, IP and tax disputes, plus tax and customs disputes in Brazil related to Caterpillar Brasil's exports.
Company statement: Caterpillar says reasonably possible losses beyond accruals are not material and there is no more than a remote chance any liability would be material.
Based on Form 10-Q (quarter ended 2026-06-30) — Legal Proceedings, reviewed 2026-10-18. Routine ordinary-course claims are not listed. “Major” is this site’s judgment of which matters could materially affect results.
23
Risks (including geopolitical)Site analysis
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring). See the rating criteria.
- 1Competition & technology shift
Global and Chinese competition
- Company disclosure (summarized from the 10-K)
- Competes with Komatsu, Deere, CNH, Volvo, Hitachi, Sany, XCMG and others; outside the U.S. some competitors have home-market advantages, and competition can cause price discounting.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood High
- 2Raw materials & energy
Commodity and supply chain
- Company disclosure (summarized from the 10-K)
- Commodity price changes, material cost increases and supply disruptions may hurt results.
- Company’s stated mitigation
- Derivatives that we use are primarily foreign currency forward, option and cross currency contracts, interest rate contracts, commodity forward and option contracts and total return swap contracts.
- This site’s assessment
- Impact Med / Likelihood Med
- 3Demand & macro
Construction and mining cycles
- Company disclosure (summarized from the 10-K)
- Demand depends on construction activity, commodity prices and energy investment.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact High / Likelihood Med
- 4Governance & quality
Leadership transition
- Company disclosure (summarized from the 10-K)
- New CEO (May 2025), executive chairman departed April 2026, new CFO from May 2026.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Low / Likelihood Med
24
What to watch going forwardSite analysis
- Power & Energy orders for data centers and power generation.
- Construction pricing and dealer inventory.
- Conversion of the record backlog to sales.
- Leadership under CEO Joe Creed and CFO Kyle Epley.
25
Source documentsShow
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Last updated
Analysis last edited: October 12, 2026 · Financial data fetched: October 17, 2026 10:20 (SEC EDGAR) · Source 10-K filed: February 13, 2026
Built on10-K FY2025 · filed 2026-02-13
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent Caterpillar Inc.’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.