Caterpillar | 10-K: FY2025 Annual Report

Caterpillar Inc. reported full-year 2025 sales and revenues of $67.589 billion, up 4% from $64.809 billion in 2024, driven by higher sales volume partially offset by unfavorable price realization. Operating profit margin declined to 16.5% from 20.2% in 2024, while profit per share decreased 15% to $18.81 from $22.05, primarily due to unfavorable manufacturing costs largely reflecting higher tariffs.Power & Energy segment sales grew 12% to $32.201 billion with profit up 12% to $6.418 billion, while Construction Industries sales declined 2% to $25.060 billion with profit down 24%. Resource Industries sales remained flat at $12.474 billion as profit fell 22%. Financial Products segment revenues increased 4% to $4.220 billion with profit up 4% to $966 million.Looking ahead to 2026, Caterpillar expects sales growth around the top end of its 5-7% CAGR target, supported by strong backlog and healthy end markets across segments. The company anticipates incremental tariff impacts of around $2.6 billion in 2026, approximately $800 million higher than 2025, though management remains confident in ability to manage tariff impacts over time.

Caterpillar Inc. reported full-year 2025 sales and revenues of $67.589 billion, up 4% from $64.809 billion in 2024, driven by higher sales volume partially offset by unfavorable price realization. Operating profit margin declined to 16.5% from 20.2% in 2024, while profit per share decreased 15% to $18.81 from $22.05, primarily due to unfavorable manufacturing costs largely reflecting higher tariffs.Power & Energy segment sales grew 12% to $32.201 billion with profit up 12% to $6.418 billion, while Construction Industries sales declined 2% to $25.060 billion with profit down 24%. Resource Industries sales remained flat at $12.474 billion as profit fell 22%. Financial Products segment revenues increased 4% to $4.220 billion with profit up 4% to $966 million.Looking ahead to 2026, Caterpillar expects sales growth around the top end of its 5-7% CAGR target, supported by strong backlog and healthy end markets across segments. The company anticipates incremental tariff impacts of around $2.6 billion in 2026, approximately $800 million higher than 2025, though management remains confident in ability to manage tariff impacts over time.