| Allowance for credit losses and total finance receivables |
An analysis of the allowance for credit losses was as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Millions of dollars) | Three Months Ended June 30, 2026 | | Three Months Ended June 30, 2025 | | Customer | | Dealer | | Total | | Customer | | Dealer | | Total | | Beginning balance | $ | 273 | | | $ | 4 | | | $ | 277 | | | $ | 273 | | | $ | 4 | | | $ | 277 | | | Write-offs | (46) | | | — | | | (46) | | | (27) | | | — | | | (27) | | | Recoveries | 26 | | | — | | | 26 | | | 9 | | | — | | | 9 | | Provision for credit losses 1 | 29 | | | — | | | 29 | | | 21 | | | — | | | 21 | | | Other | — | | | — | | | — | | | 5 | | | — | | | 5 | | | Ending balance | $ | 282 | | | $ | 4 | | | $ | 286 | | | $ | 281 | | | $ | 4 | | | $ | 285 | | | | | | | | | | | | | | | Six Months Ended June 30, 2026 | | Six Months Ended June 30, 2025 | | Customer | | Dealer | | Total | | Customer | | Dealer | | Total | | Beginning balance | $ | 273 | | | $ | 4 | | | $ | 277 | | | $ | 258 | | | $ | 4 | | | $ | 262 | | | | | | | | | | | | | | | Write-offs | (88) | | | — | | | (88) | | | (57) | | | — | | | (57) | | | Recoveries | 39 | | | — | | | 39 | | | 19 | | | — | | | 19 | | Provision for credit losses 1 | 58 | | | — | | | 58 | | | 54 | | | — | | | 54 | | | Other | — | | | — | | | — | | | 7 | | | — | | | 7 | | | Ending balance | $ | 282 | | | $ | 4 | | | $ | 286 | | | $ | 281 | | | $ | 4 | | | $ | 285 | | | | | | | | | | | | | | | Finance Receivables | $ | 23,900 | | | $ | 1,548 | | | $ | 25,448 | | | $ | 22,842 | | | $ | 1,378 | | | $ | 24,220 | | | | | | | | | | | | | | 1 Excludes provision for credit losses on unfunded commitments and other miscellaneous receivables. |
|
| Write-offs by origination year |
Gross write-offs by origination year for the Customer portfolio segment were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Millions of dollars) | Three Months Ended June 30, 2026 | | 2026 | | 2025 | | 2024 | | 2023 | | 2022 | | Prior | | Revolving Finance Receivables | | Total | | North America | $ | — | | | $ | 5 | | | $ | 7 | | | $ | 7 | | | $ | 4 | | | $ | 3 | | | $ | 3 | | | $ | 29 | | | EAME | — | | | 2 | | | 1 | | | 1 | | | 1 | | | — | | | — | | | 5 | | | Asia/Pacific | — | | | 1 | | | 1 | | | 1 | | | 1 | | | — | | | — | | | 4 | | | Latin America | — | | | 2 | | | 2 | | | 2 | | | 1 | | | 1 | | | — | | | 8 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total | $ | — | | | $ | 10 | | | $ | 11 | | | $ | 11 | | | $ | 7 | | | $ | 4 | | | $ | 3 | | | $ | 46 | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2025 | | 2025 | | 2024 | | 2023 | | 2022 | | 2021 | | Prior | | Revolving Finance Receivables | | Total | | North America | $ | — | | | $ | 3 | | | $ | 6 | | | $ | 2 | | | $ | 2 | | | $ | 2 | | | $ | 2 | | | $ | 17 | | | EAME | — | | | 1 | | | 2 | | | — | | | 1 | | | — | | | — | | | 4 | | | Asia/Pacific | — | | | 1 | | | 1 | | | 1 | | | — | | | — | | | — | | | 3 | | | Latin America | — | | | — | | | 1 | | | 2 | | | — | | | — | | | — | | | 3 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total | $ | — | | | $ | 5 | | | $ | 10 | | | $ | 5 | | | $ | 3 | | | $ | 2 | | | $ | 2 | | | $ | 27 | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2026 | | 2026 | | 2025 | | 2024 | | 2023 | | 2022 | | Prior | | Revolving Finance Receivables | | Total | | North America | $ | — | | | $ | 9 | | | $ | 14 | | | $ | 13 | | | $ | 6 | | | $ | 5 | | | $ | 6 | | | $ | 53 | | | EAME | — | | | 3 | | | 2 | | | 2 | | | 1 | | | 1 | | | — | | | 9 | | | Asia/Pacific | — | | | 4 | | | 3 | | | 1 | | | 1 | | | — | | | — | | | 9 | | | Latin America | — | | | 3 | | | 4 | | | 4 | | | 2 | | | 1 | | | — | | | 14 | | | Mining | — | | | 3 | | | — | | | — | | | — | | | — | | | — | | | 3 | | | Power | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Total | $ | — | | | $ | 22 | | | $ | 23 | | | $ | 20 | | | $ | 10 | | | $ | 7 | | | $ | 6 | | | $ | 88 | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2025 | | 2025 | | 2024 | | 2023 | | 2022 | | 2021 | | Prior | | Revolving Finance Receivables | | Total | | North America | $ | — | | | $ | 5 | | | $ | 11 | | | $ | 6 | | | $ | 4 | | | $ | 3 | | | $ | 4 | | | $ | 33 | | | EAME | — | | | 2 | | | 3 | | | 1 | | | 1 | | | — | | | — | | | 7 | | | Asia/Pacific | — | | | 1 | | | 2 | | | 1 | | | 1 | | | — | | | — | | | 5 | | | Latin America | — | | | — | | | 2 | | | 3 | | | — | | | 1 | | | — | | | 6 | | | Mining | — | | | 3 | | | 1 | | | 1 | | | — | | | — | | | — | | | 5 | | | Power | — | | | — | | | — | | | — | | | — | | | 1 | | | — | | | $ | 1 | | | Total | $ | — | | | $ | 11 | | | $ | 19 | | | $ | 12 | | | $ | 6 | | | $ | 5 | | | $ | 4 | | | $ | 57 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| Financing receivable credit quality indicators |
The aging analysis of Cat Financial's Customer portfolio segment by origination year was as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Millions of dollars) | June 30, 2026 | | 2026 | | 2025 | | 2024 | | 2023 | | 2022 | | Prior | | Revolving Finance Receivables | | | | Total Finance Receivables | | North America | | | | | | | | | | | | | | | | | | | Current | $ | 2,908 | | | $ | 4,639 | | | $ | 2,876 | | | $ | 1,318 | | | $ | 452 | | | $ | 129 | | | $ | 569 | | | | | $ | 12,891 | | | 31-60 days past due | 10 | | | 45 | | | 31 | | | 20 | | | 10 | | | 3 | | | 6 | | | | | 125 | | | 61-90 days past due | 2 | | | 11 | | | 9 | | | 6 | | | 2 | | | 1 | | | 2 | | | | | 33 | | | 91+ days past due | 1 | | | 27 | | | 31 | | | 19 | | | 11 | | | 5 | | | 2 | | | | | 96 | | | | | | | | | | | | | | | | | | | | | EAME | | | | | | | | | | | | | | | | | | | Current | 692 | | | 1,253 | | | 728 | | | 452 | | | 209 | | | 76 | | | — | | | | | 3,410 | | | 31-60 days past due | 3 | | | 9 | | | 11 | | | 9 | | | 3 | | | 1 | | | — | | | | | 36 | | | 61-90 days past due | — | | | 5 | | | 7 | | | 4 | | | 2 | | | 1 | | | — | | | | | 19 | | | 91+ days past due | 1 | | | 8 | | | 11 | | | 12 | | | 8 | | | 3 | | | — | | | | | 43 | | | | | | | | | | | | | | | | | | | | | Asia/Pacific | | | | | | | | | | | | | | | | | | | Current | 620 | | | 773 | | | 421 | | | 196 | | | 58 | | | 10 | | | 1 | | | | | 2,079 | | | 31-60 days past due | — | | | 6 | | | 7 | | | 2 | | | 1 | | | — | | | — | | | | | 16 | | | 61-90 days past due | — | | | 4 | | | 3 | | | — | | | — | | | — | | | — | | | | | 7 | | | 91+ days past due | — | | | 3 | | | 3 | | | 2 | | | 2 | | | — | | | — | | | | | 10 | | | | | | | | | | | | | | | | | | | | | Latin America | | | | | | | | | | | | | | | | | | | Current | 570 | | | 752 | | | 372 | | | 147 | | | 54 | | | 18 | | | 5 | | | | | 1,918 | | | 31-60 days past due | 3 | | | 10 | | | 8 | | | 4 | | | 1 | | | — | | | — | | | | | 26 | | | 61-90 days past due | — | | | 3 | | | 2 | | | 1 | | | 1 | | | — | | | — | | | | | 7 | | | 91+ days past due | — | | | 7 | | | 14 | | | 7 | | | 4 | | | 1 | | | — | | | | | 33 | | | | | | | | | | | | | | | | | | | | | Mining | | | | | | | | | | | | | | | | | | | Current | 389 | | | 689 | | | 540 | | | 357 | | | 214 | | | 106 | | | 15 | | | | | 2,310 | | | 31-60 days past due | — | | | 4 | | | — | | | — | | | — | | | — | | | — | | | | | 4 | | | 61-90 days past due | — | | | — | | | — | | | — | | | — | | | — | | | — | | | | | — | | | 91+ days past due | — | | | — | | | 1 | | | 1 | | | — | | | — | | | — | | | | | 2 | | | | | | | | | | | | | | | | | | | | | Power | | | | | | | | | | | | | | | | | | | Current | 94 | | | 186 | | | 221 | | | 151 | | | 35 | | | 37 | | | 111 | | | | | 835 | | | 31-60 days past due | — | | | — | | | — | | | — | | | — | | | — | | | — | | | | | — | | | 61-90 days past due | — | | | — | | | — | | | — | | | — | | | — | | | — | | | | | — | | | 91+ days past due | — | | | — | | | — | | | — | | | — | | | — | | | — | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Totals by Aging Category | | | | | | | | | | | | | | | | | | | Current | $ | 5,273 | | | $ | 8,292 | | | $ | 5,158 | | | $ | 2,621 | | | $ | 1,022 | | | $ | 376 | | | $ | 701 | | | | | $ | 23,443 | | | 31-60 days past due | 16 | | | 74 | | | 57 | | | 35 | | | 15 | | | 4 | | | 6 | | | | | 207 | | | 61-90 days past due | 2 | | | 23 | | | 21 | | | 11 | | | 5 | | | 2 | | | 2 | | | | | 66 | | | 91+ days past due | 2 | | | 45 | | | 60 | | | 41 | | | 25 | | | 9 | | | 2 | | | | | 184 | | | Total Customer | $ | 5,293 | | | $ | 8,434 | | | $ | 5,296 | | | $ | 2,708 | | | $ | 1,067 | | | $ | 391 | | | $ | 711 | | | | | $ | 23,900 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Millions of dollars) | December 31, 2025 | | 2025 | | 2024 | | 2023 | | 2022 | | 2021 | | Prior | | Revolving Finance Receivables | | | | Total Finance Receivables | | North America | | | | | | | | | | | | | | | | | | | Current | $ | 5,531 | | | $ | 3,634 | | | $ | 1,845 | | | $ | 743 | | | $ | 318 | | | $ | 20 | | | $ | 510 | | | | | $ | 12,601 | | | 31-60 days past due | 30 | | | 42 | | | 28 | | | 18 | | | 6 | | | 1 | | | 4 | | | | | 129 | | | 61-90 days past due | 11 | | | 14 | | | 10 | | | 5 | | | 3 | | | — | | | 2 | | | | | 45 | | | 91+ days past due | 11 | | | 34 | | | 29 | | | 20 | | | 8 | | | 3 | | | 1 | | | | | 106 | | | | | | | | | | | | | | | | | | | | | EAME | | | | | | | | | | | | | | | | | | | Current | 1,551 | | | 929 | | | 614 | | | 316 | | | 114 | | | 44 | | | — | | | | | 3,568 | | | 31-60 days past due | 5 | | | 12 | | | 6 | | | 6 | | | 2 | | | — | | | — | | | | | 31 | | | 61-90 days past due | 3 | | | 5 | | | 3 | | | 2 | | | 1 | | | — | | | — | | | | | 14 | | | 91+ days past due | 5 | | | 9 | | | 12 | | | 6 | | | 3 | | | 2 | | | — | | | | | 37 | | | | | | | | | | | | | | | | | | | | | Asia/Pacific | | | | | | | | | | | | | | | | | | | Current | 996 | | | 571 | | | 290 | | | 104 | | | 25 | | | 1 | | | — | | | | | 1,987 | | | 31-60 days past due | 5 | | | 8 | | | 3 | | | 1 | | | — | | | — | | | — | | | | | 17 | | | 61-90 days past due | 2 | | | 3 | | | 1 | | | 2 | | | — | | | — | | | — | | | | | 8 | | | 91+ days past due | 1 | | | 1 | | | 2 | | | 2 | | | — | | | — | | | — | | | | | 6 | | | | | | | | | | | | | | | | | | | | | Latin America | | | | | | | | | | | | | | | | | | | Current | 984 | | | 511 | | | 212 | | | 96 | | | 15 | | | 1 | | | 4 | | | | | 1,823 | | | 31-60 days past due | 3 | | | 6 | | | 5 | | | 3 | | | — | | | — | | | — | | | | | 17 | | | 61-90 days past due | 2 | | | 2 | | | 2 | | | 1 | | | — | | | 1 | | | — | | | | | 8 | | | 91+ days past due | 1 | | | 10 | | | 7 | | | 4 | | | 1 | | | — | | | — | | | | | 23 | | | | | | | | | | | | | | | | | | | | | Mining | | | | | | | | | | | | | | | | | | | Current | 765 | | | 698 | | | 484 | | | 278 | | | 106 | | | 46 | | | — | | | | | 2,377 | | | 31-60 days past due | 3 | | | — | | | — | | | — | | | — | | | — | | | — | | | | | 3 | | | 61-90 days past due | — | | | — | | | — | | | — | | | — | | | — | | | — | | | | | — | | | 91+ days past due | 1 | | | 1 | | | 8 | | | — | | | — | | | — | | | — | | | | | 10 | | | | | | | | | | | | | | | | | | | | | Power | | | | | | | | | | | | | | | | | | | Current | 168 | | | 250 | | | 179 | | | 37 | | | 8 | | | 35 | | | 148 | | | | | 825 | | | 31-60 days past due | — | | | — | | | — | | | — | | | — | | | — | | | — | | | | | — | | | 61-90 days past due | — | | | — | | | — | | | — | | | — | | | — | | | — | | | | | — | | | 91+ days past due | — | | | — | | | — | | | — | | | — | | | — | | | — | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Totals by Aging Category | | | | | | | | | | | | | | | | | | | Current | $ | 9,995 | | | $ | 6,593 | | | $ | 3,624 | | | $ | 1,574 | | | $ | 586 | | | $ | 147 | | | $ | 662 | | | | | $ | 23,181 | | | 31-60 days past due | 46 | | | 68 | | | 42 | | | 28 | | | 8 | | | 1 | | | 4 | | | | | 197 | | | 61-90 days past due | 18 | | | 24 | | | 16 | | | 10 | | | 4 | | | 1 | | | 2 | | | | | 75 | | | 91+ days past due | 19 | | | 55 | | | 58 | | | 32 | | | 12 | | | 5 | | | 1 | | | | | 182 | | | Total Customer | $ | 10,078 | | | $ | 6,740 | | | $ | 3,740 | | | $ | 1,644 | | | $ | 610 | | | $ | 154 | | | $ | 669 | | | | | $ | 23,635 | | | | | | | | | | | | | | | | | | | |
|
| Investment in finance receivables on non-accrual status |
In Cat Financial's Customer portfolio segment, finance receivables which were on non-accrual status and finance receivables over 90 days past due and still accruing income were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Millions of dollars) | June 30, 2026 | | December 31, 2025 | | | | | | Amortized Cost | | Amortized Cost | | |
| Non-accrual With an Allowance | | | | 91+ Still Accruing | | Non-accrual With an Allowance | | | | 91+ Still Accruing | | | | | | | | | | | | | | | | | | | | | | | | | | North America | $ | 90 | | | | | $ | 13 | | | $ | 90 | | | | | $ | 20 | | | | | | | | | EAME | 40 | | | | | 6 | | | 35 | | | | | 5 | | | | | | | | | Asia/Pacific | 7 | | | | | 3 | | | 4 | | | | | 2 | | | | | | | | | Latin America | 34 | | | | | 1 | | | 24 | | | | | 1 | | | | | | | | | Mining | 7 | | | | | — | | | 10 | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | Total | $ | 178 | | | | | $ | 23 | | | $ | 163 | | | | | $ | 28 | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| Financing receivable, modified |
The ending amortized cost of finance receivables modified with borrowers experiencing financial difficulty in Cat Financial's Customer portfolio segment was as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | (Millions of dollars) | Three Months Ended June 30, | | Six Months Ended June 30, | | 2026 | | 2025 | | 2026 | | 2025 | | Amortized cost of finance receivables modified | $ | 20 | | | $ | 16 | | | $ | 31 | | | $ | 20 | | | Modifications as a percentage of Customer portfolio | 0.08 | % | | 0.07 | % | | 0.13 | % | | 0.09 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The financial effects of term extensions and payment delays for borrowers experiencing financial difficulty were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | (In months) | Three Months Ended June 30, | | Six Months Ended June 30, | | 2026 | | 2025 | | 2026 | | 2025 | | Weighted average extension to term of modified contracts | 9 | | 14 | | 10 | | 13 | | Weighted average payment deferral and/or interest only periods | 7 | | 7 | | 7 | | 7 |
|