v3.26.1
Segment Information
 3 Months Ended
Mar. 31, 2026
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, Power & Energy, Construction Industries, and Resource Industries 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 January 1, 2026, we made the following change to segment reporting. The change was made to reflect change 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 diesel-electric, hybrid and battery-electric locomotives and components and other rail-related products and services, including remanufacturing and leasing moved from Power & Energy to Resource Industries.

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 2025 has been retrospectively adjusted to conform to the 2026 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:

Power & Energy: A segment primarily responsible for supporting customers using reciprocating engines, turbines and related services across industries serving Power Generation, Oil and Gas and Industrial applications, including marine applications and 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 oil and gas industry; reciprocating engines, drivetrain and integrated systems and solutions supplied to the industrial industry as well as Caterpillar machines; and electrified powertrain and zero-emission power sources and service solutions. Responsibilities also include the remanufacturing of Caterpillar reciprocating engines and engine and machine components and remanufacturing services for other companies. Inter-segment sales are a source of revenue for this 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 as well as customers using locomotives and rail-related products and services. 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; diesel-electric, hybrid and battery-electric locomotives and components and other rail-related products and services, including remanufacturing and leasing. In addition, Resource Industries 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.

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 Power & Energy, Construction Industries, Resource Industries, 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 Power & Energy, Construction Industries, Resource Industries, 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 or segment assets the effects of changes in exchange rates on results of operations and financial position 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 28-30 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 20 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.
The three months ended March 31, 2026 and 2025, 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
Three Months Ended March 31, 2026    
Power & Energy$3,500 $278 $1,141 $794 $5,713 $1,318 $7,031 
Construction Industries4,292 650 1,199 961 7,102 59 7,161 
Resource Industries1,836 572 560 742 3,710 87 3,797 
Financial Products Segment741 111 133 111 1,096 
1
— 1,096 
Total sales and revenues from reportable segments10,369 1,611 3,033 2,608 17,621 1,464 19,085 
All Other Segment7 — 3 2 12 65 77 
Corporate Items and Eliminations(146)(19)(28)(25)(218)(1,529)(1,747)
Total Sales and Revenues$10,230 $1,592 $3,008 $2,585 $17,415 $— $17,415 
Three Months Ended March 31, 2025    
Power & Energy$2,625 $326 $1,026 $677 $4,654 $1,129 $5,783 
Construction Industries2,904 504 867 869 5,144 40 5,184 
Resource Industries1,610 606 510 860 3,586 75 3,661 
Financial Products Segment682 99 122 104 1,007 
1
— 1,007 
Total sales and revenues from reportable segments7,821 1,535 2,525 2,510 14,391 1,244 15,635 
All Other Segment8 — 1 2 11 59 70 
Corporate Items and Eliminations(91)(20)(20)(22)(153)(1,303)(1,456)
Total Sales and Revenues$7,738 $1,515 $2,506 $2,490 $14,249 $— $14,249 
1    Includes revenues from Power & Energy, Construction Industries, Resource Industries, and All Other Segment of $183 million and $163 million in the three months ended March 31, 2026 and 2025, respectively.
For the three months ended March 31, 2026 and 2025, Power & Energy external sales by end user application were as follows:

Power & Energy External Sales
Three Months Ended March 31,
(Millions of dollars)20262025
Power Generation$2,817 $1,996 
Oil and Gas1,423 1,258 
Industrial1,473 1,400 
Power & Energy External Sales$5,713 $4,654 

For the three months ended March 31, 2026 and 2025, Resource Industries external sales by industry were as follows:

Resource Industries External Sales
Three Months Ended March 31,
(Millions of dollars)20262025
Mining, HC and Q&A*$2,954 $2,842 
Rail756 744 
Resource Industries External Sales$3,710 $3,586 
*Heavy Construction and Quarry & Aggregates (HC and Q&A)
Profit from Reportable Segments
(Millions of dollars)Power & EnergyConstruction IndustriesResource IndustriesFinancial Products Segment Total from Reportable Segments
Three Months Ended March 31, 2026
Sales and revenues$7,031 $7,161 $3,797 $1,096 $19,085 
Less 1:
Cost of goods sold4,847 5,127 2,913 — 12,887 
SG&A/R&D 2
731 485 494 217 1,927 
Other segment items 3
3 14 12 634 663 
Segment Profit$1,450 $1,535 $378 $245 $3,608 
Three Months Ended March 31, 2025
Sales and revenues$5,783 $5,184 $3,661 $1,007 $15,635 
Less 1:
Cost of goods sold3,834 3,718 2,612 — 10,164 
SG&A/R&D 2
691 451 439 195 1,776 
Other segment items 3
(30)(9)(13)597 545 
Segment Profit$1,288 $1,024 $623 $215 $3,150 
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:
Power & Energy / Construction Industries / Resource Industries – 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)Three Months Ended March 31,
20262025
Total profit from reportable segments$3,608 $3,150 
Profit (loss) from All Other Segment(43)(19)
Cost centers11 4 
Corporate costs(306)(213)
Timing82 (7)
Restructuring income (costs)(41)(33)
Methodology differences:
Inventory/cost of sales15 (27)
Postretirement benefit expense4 14 
Stock-based compensation expense(48)(45)
Financing costs(54)(46)
Currency89 (54)
Other income/expense methodology differences(95)(142)
Other methodology differences(11)(12)
Total consolidated profit before taxes$3,211 $2,570 
Reconciliation of Assets:
(Millions of dollars)March 31, 2026December 31, 2025
Assets from reportable segments:
Power & Energy$7,996 $8,438 
Construction Industries6,425 5,442 
Resource Industries9,578 9,036 
Financial Products Segment41,385 41,476 
Total assets from reportable segments65,384 64,392 
Assets from All Other Segment1,470 1,516 
Items not included in segment assets:  
Cash and cash equivalents3,316 9,333 
Deferred income taxes2,290 2,749 
Goodwill and intangible assets4,759 4,669 
Property, plant and equipment – net and other assets4,922 4,689 
Inventory methodology differences(4,159)(3,622)
Liabilities included in segment assets17,394 15,330 
Other174 (471)
Total assets$95,550 $98,585 
Reconciliation of Depreciation and amortization:
(Millions of dollars)
Three Months Ended March 31,
20262025
Depreciation and amortization from reportable segments:
   Power & Energy$146 $116 
   Construction Industries68 63 
   Resource Industries100 97 
   Financial Products Segment186 178 
Total depreciation and amortization from reportable segments500 454 
Items not included in segment depreciation and amortization:
All Other Segment68 63 
Cost centers28 24 
Other(1)(1)
Total depreciation and amortization$595 $540 
Reconciliation of Capital expenditures:  
(Millions of dollars)
Three Months Ended March 31,
20262025
Capital expenditures from reportable segments:
Power & Energy$291 $240 
Construction Industries55 46 
Resource Industries125 110 
Financial Products Segment265 170 
Total capital expenditures from reportable segments736 566 
Items not included in segment capital expenditures:
All Other Segment22 36 
Cost centers29 27 
Timing259 295 
Other5 (6)
Total capital expenditures$1,051 $918