Caterpillar Inc. (CAT) FY2025 10-K Review

Statements & commentary

Statements as filed on the left — every figure from the company's own XBRL filing, in millions of dollars. What management wrote on the right, quoted verbatim. Open any claim for its arithmetic. The gold number beside a statement line counts the claims resting on that line. ✓ matches · ◐ partly · ✗ contradicts or red flag · ◐ watch.

INCOME STATEMENTCASH FLOWBALANCE SHEETVARIANCE YoYBUSINESS QUALITYQUARTERLYOWNERSHIPEVERY FIGURE AS FILED · $M EXCEPT PER-SHARE

Income statement · $ millions	2025	2024	2023
Total revenues	67,589	64,809	67,060	4
· Machinery power energy	63,980	61,363	63,869
· Financial products	3,609	3,446	3,191
Cost of revenue	44,752	40,199	42,767
Research and development	2,148	2,107	2,108
Selling, general and administrative	6,985	6,667	6,371
Depreciation, depletion and amortization	2,262	2,153	2,144
Total operating expenses	56,438	51,737	54,094
Operating income	11,151	13,072	12,966	2
Other income (expense), net	892	813	595
Income before income taxes	11,541	13,373	13,050	1
Income tax provision	2,768	2,629	2,781	2
— of which current	2,303	3,250	3,373	1
Net income incl. noncontrolling interests	8,882	10,788	10,332
Less: noncontrolling interests	(2)	(4)	(3)
Net income attributable to common	8,884	10,792	10,335	2
Diluted earnings per share	$18.81	$22.05	$20.12	1
Weighted-average diluted shares	472	489	514	1

Cash flow · $ millions	2025	2024	2023
Net income incl. noncontrolling interests	8,882	10,788	10,332
Depreciation, depletion and amortization	2,262	2,153	2,144
Deferred income taxes	465	(621)	(592)
Change in receivables	2,138	160	437
Change in inventories	1,477	414	364
Change in payables	1,179	(282)	(754)
Net cash provided by operating activities	11,739	12,035	12,885	3
Capital expenditure	2,821	1,988	1,597	1
Acquisitions, net of cash	47	34	75
Net cash used in investing activities	(4,707)	(2,453)	(5,871)
Dividends paid	2,749	2,646	2,563	1
Repurchases of common stock	5,190	7,697	4,975	1
Net cash used in financing activities	(3,899)	(9,565)	(6,932)
Cash and equivalents at end of period	9,986	6,896	6,985

Balance sheet · $ millions	2025	2024
Cash and cash equivalents	9,980	6,889
Receivables, net	10,920	9,282	1
Inventories	18,135	16,827	1
Total current assets	52,485	45,682
Property, plant and equipment, net	15,140	13,361
Goodwill	5,321	5,241	1
Intangible assets, net	241	399
Total assets	98,585	87,764	1
Accounts payable	8,968	7,675
Total current liabilities	36,558	32,272
Long-term debt	30,696	27,351
Total liabilities	77,267	68,270
Noncontrolling interests	0	3
Total equity	21,318	19,494

Largest FY/FY moves · $ millions, ranked by \|Δ\|	FY2025	FY2024	Δ $	Δ %	Reading
Total assets · BS	98,585	87,764	+10,821	+12.3%	—
Total liabilities · BS	77,267	68,270	+8,997	+13.2%	—
Total current assets · BS	52,485	45,682	+6,803	+14.9%	—
Net cash used in financing activities · CF	(3,899)	(9,565)	+5,666	+59.2%	◐ outsized
Total operating expenses · IS	56,438	51,737	+4,701	+9.1%	—
Cost of revenue · IS	44,752	40,199	+4,553	+11.3%	—
Total current liabilities · BS	36,558	32,272	+4,286	+13.3%	—
Long-term debt · BS	30,696	27,351	+3,345	+12.2%	—
Cash and cash equivalents · BS	9,980	6,889	+3,091	+44.9%	—
Cash and equivalents at end of period · CF	9,986	6,896	+3,090	+44.8%	—
Total revenues · IS	67,589	64,809	+2,780	+4.3%	—
· Machinery power energy · IS	63,980	61,363	+2,617	+4.3%	—
Repurchases of common stock · CF	5,190	7,697	−2,507	-32.6%	—
Net cash used in investing activities · CF	(4,707)	(2,453)	−2,254	-91.9%	—

Business quality — Buffett/Munger screen · deterministic · not part of the filing score	Value	Reading
Return on equity net income ÷ average of start- and end-of-year equity	43.5% sector median 24.0%	strong
Share count, year-end (year-end shares − prior year-end) ÷ prior year-end	-2.6% sector median -0.8%	shrinking
Debt to equity (current debt + long-term debt) ÷ year-end equity	1.44 sector median 0.63	leveraged
FCF consistency, 5yr operating cash flow − capital expenditure, per year	positive 5 of 5	consistent
Margin stability pre-tax income ÷ revenue, swing across up to five years	pre-tax margin 17.1% sector median 14.2%	cyclical

Quarterly · as filed in 10-Q/10-K · $ millions	MAR 25	JUN 25	SEP 25	DEC 25	MAR 26
Total revenues	14,249	16,569	17,638	19,133	17,415
Cost of revenue	8,965	10,807	11,673	—	11,306
Research and development	480	551	555	—	537
Selling, general and administrative	1,593	1,694	1,822	—	1,816
Depreciation, depletion and amortization	540	554	570	598	595
Total operating expenses	11,670	13,709	14,586	—	14,330
Operating income	2,579	2,860	3,052	—	3,085
Other income (expense), net	107	84	208	—	260
Income before income taxes	2,570	2,818	3,127	3,026	3,211
Income tax provision	574	646	836	—	670
Net income incl. noncontrolling interests	2,003	2,179	2,299	—	2,548
Less: noncontrolling interests	0	0	(1)	—	(1)
Net income attributable to common	2,003	2,179	2,300	—	2,549
Diluted earnings per share	$4.20	$4.62	$4.88	—	$5.47
Weighted-average diluted shares	477	472	471	—	466
Net cash provided by operating activities	1,289	—	—	—	1,870

Largest QoQ moves · latest vs prior filed quarter	Prior	Latest	Δ $	Δ %
Total revenues	19,133	17,415	−1,718	-9.0%
Net cash provided by operating activities	1,289	1,870	+581	+45.1%
Cost of revenue	11,673	11,306	−367	-3.1%
Total operating expenses	14,586	14,330	−256	-1.8%
Net income incl. noncontrolling interests	2,299	2,548	+249	+10.8%
Net income attributable to common	2,300	2,549	+249	+10.8%
Income before income taxes	3,026	3,211	+185	+6.1%
Income tax provision	836	670	−166	-19.9%

Ownership — insiders & floatForm 4 + 10-K cover · open-market trades only	Value	Reading
Public float	$180,900M	10-K cover · as of 2025-12-31
Insider Form 4s, 90d	31 filings · 1 buys / 21 sells	net selling · −$87,423,434
· Bonfield Andrew R J	SELL $14,399,861	Form 4 filed 2026-05-07 · open market
· Fassino Anthony D.	SELL $14,154,620	Form 4 filed 2026-05-12 · open market
· De Lange Bob	SELL $13,349,298	Form 4 filed 2026-05-07 · open market
· De Lange Bob	SELL $9,005,679	Form 4 filed 2026-05-07 · open market
· Fassino Anthony D.	SELL $8,152,676	Form 4 filed 2026-05-07 · open market
Insider ownership %	—	needs the proxy statement — not read yet, never estimated
Institutional %	—	needs 13F aggregation — not read yet, never estimated
· 10b5-1 adopted	Andrew R.J. Bonfield, Chief Financial Officer	August 28, 2025 · 20,000 shares · 10-K insider trading arrangements
· 10b5-1 adopted	Joseph E. Creed, Chief Executive Officer	November 21, 2025 · 2,500 shares · 10-K insider trading arrangements

COMMENTARY5EARNINGS QUALITY8

sales growth✓MATCHES

“Sales and revenues for 2025 were $67.589 billion, an increase of $2.780 billion, or 4 percent, compared with $64.809 billion for 2024.”

Total revenues $64.8B → $67.6B+2,780

Quoted $67.589 billionTotal revenues: filed $67.6B

Quoted $2.780 billionTotal revenues: change $2.8B

Quoted $64.809 billionTotal revenues: filed $64.8B

Every quoted figure reconciles to the filed lines: $67.589 billion against total revenues; $2.780 billion against total revenues; $64.809 billion against total revenues.

1 LINES TRACED · ITEM 7 · HIGHLIGHTS · P. 27

margin decline◐PARTLY

“Operating profit as a percent of sales and revenues was 16.5 percent in 2025, compared with 20.2 percent in 2024.”

Operating income $13.1B → $11.2B-1,921

Total revenues $64.8B → $67.6B+2,780

The quoted figures do not map one-for-one onto a filed line on this page; carried as partly supported.

2 LINES TRACED · ITEM 7 · HIGHLIGHTS · P. 27

eps decline✓MATCHES

“Profit per share for 2025 was $18.81, and excluding the items in the table below, adjusted profit per share was $19.06.”

Diluted earnings per share $22.05 → $18.81-3.24

Quoted $18.81Diluted earnings per share: filed $18.81

Quoted $19.06Diluted earnings per share: filed $18.81

Every quoted figure reconciles to the filed lines: $18.81 against diluted earnings per share; $19.06 against diluted earnings per share.

1 LINES TRACED · ITEM 7 · HIGHLIGHTS · P. 27

operating profit decline✓MATCHES

“Operating profit was $11.151 billion in 2025, a decrease of $1.921 billion, or 15 percent, compared with $13.072 billion in 2024.”

Operating income $13.1B → $11.2B-1,921

Quoted $11.151 billionOperating income: filed $11.2B

Quoted $1.921 billionOperating income: change $1.9B

Quoted $13.072 billionOperating income: filed $13.1B

Every quoted figure reconciles to the filed lines: $11.151 billion against operating income; $1.921 billion against operating income; $13.072 billion against operating income.

1 LINES TRACED · ITEM 7 · CONSOLIDATED OPERATING PROFIT · P. 33

tax rate increase◐PARTLY

“The effective tax rate for 2025 was 24.0 percent compared to 19.7 percent for 2024.”

Income tax provision $2.6B → $2.8B+139

Income before income taxes $13.4B → $11.5B-1,832

The quoted figures do not map one-for-one onto a filed line on this page; carried as partly supported.

2 LINES TRACED · ITEM 7 · OTHER PROFIT/LOSS AND TAX ITEMS · P. 33

Cash tax vs book charge✗RED FLAG

SILENT IN MD&ADisclosed in the statements; not discussed by management.

Cash income taxes paid$2,206M

Total book tax charge$2,768M

Divergence ($2,206M − $2,768M) ÷ $2,768M-20.3%

Deferred tax asset $2,759M → $2,263M-496M

Cash taxes paid diverge from the total book charge by -20.3%. The deferred tax asset moved in the same direction — the ordinary accounting counterpart of such a gap, shown above. The flag marks the size of the divergence. Management's own account touching these lines appears in the "tax rate increase" claim on this page (partial); this page has not independently verified it.

EARNINGS-QUALITY FLAG · 2 LINES TRACED · COMPUTED FROM THE FILED STATEMENTS

Receivables pace✓CLEAN

SILENT IN MD&ADisclosed in the statements; not discussed by management.

DSO, prior year $9,282M ÷ $64,809M × 36552.3 days

DSO, current year $10,920M ÷ $67,589M × 36559.0 days

Change+6.7 days

Days sales outstanding moved +6.7 days — inside the ±7-day watch threshold.

EARNINGS-QUALITY FLAG · 2 LINES TRACED · COMPUTED FROM THE FILED STATEMENTS

Goodwill weight✓CLEAN

SILENT IN MD&ADisclosed in the statements; not discussed by management.

Goodwill$5,321M

Total assets$98,585M

Weight $5,321M ÷ $98,585M5.4%

Impairments, three years (newest first)none filed

Goodwill is 5.4% of assets (threshold 40%), no impairment in three years.

EARNINGS-QUALITY FLAG · 2 LINES TRACED · COMPUTED FROM THE FILED STATEMENTS

Inventory vs revenue pace✓CLEAN

SILENT IN MD&ADisclosed in the statements; not discussed by management.

Inventory $16,827M → $18,135M+7.8%

Revenue $64,809M → $67,589M+4.3%

Gap 7.8% − 4.3%+3.5pp

Inventory moved +7.8%, revenue +4.3% (gap +3.5pp). The flag tests inventory OUTRUNNING revenue by more than 7pp.

EARNINGS-QUALITY FLAG · 2 LINES TRACED · COMPUTED FROM THE FILED STATEMENTS

Cash conversion stability✓CLEAN

SILENT IN MD&ADisclosed in the statements; not discussed by management.

Operating cash flow, three years (newest first)$11,739M · $12,035M · $12,885M

Net income incl. noncontrolling interests, three years (newest first)$8,882M · $10,788M · $10,332M

OCF ÷ NI, three years (newest first)1.32× · 1.12× · 1.25×

Swing 1.32× − 1.12×0.20×

Cause verified by this pageno

Net income attributable to common, three years (newest first) shown so both bases reconcile; the ratio above uses the consolidated line$8,884M · $10,792M · $10,335M

OCF ÷ NI ran 1.32× · 1.12× · 1.25× across three years — swing 0.20×, inside the 1.00× threshold.

EARNINGS-QUALITY FLAG · 2 LINES TRACED · COMPUTED FROM THE FILED STATEMENTS

Capital returned vs free cash flow✓CLEAN

SILENT IN MD&ADisclosed in the statements; not discussed by management.

Capital returned ÷ FCF, three years (newest first)0.89× · 1.03× · 0.67×

Current year ($2,749M + $5,190M) ÷ ($11,739M − $2,821M)0.89×

Capital returned ran 0.89× of free cash flow (threshold 1.00×).

EARNINGS-QUALITY FLAG · 4 LINES TRACED · COMPUTED FROM THE FILED STATEMENTS

Stock compensation in cash flow✓CLEAN

SILENT IN MD&ADisclosed in the statements; not discussed by management.

Share-based compensation$242M

Operating cash flow$11,739M

Share $242M ÷ $11,739M2.1%

Share-based compensation is 2.1% of operating cash flow (threshold 15%).

EARNINGS-QUALITY FLAG · 1 LINES TRACED · COMPUTED FROM THE FILED STATEMENTS

Share-count artefact✓CLEAN

SILENT IN MD&ADisclosed in the statements; not discussed by management.

Weighted-average shares 489M → 472M-3.5%

Shares outstanding, year-end 477.9M → 465.3M-2.6%

EPS-growth vs NI-growth gap+3.0pp

No share-count artefact: weighted-average and year-end counts do not diverge in direction.

EARNINGS-QUALITY FLAG · 2 LINES TRACED · COMPUTED FROM THE FILED STATEMENTS

Five-year seriesEACH OPENS ITS OWN PAGE WITH DERIVATION AND HISTORY

Revenue →Net income →Operating cash flow →Free cash flow →Capital expenditure →Cash & equivalents →Total assets →Shareholders' equity →Return on equity →Days sales outstanding →

Terms and acronyms used on this page

Income statement & cash flow

ImpairmentA write-down of an asset's carrying value. Non-cash, and it does not reverse. A large impairment in one year flatters the next year's comparison.

OCFOperating cash flow — net cash provided by operating activities, as reported.

FCFFree cash flow. Not a GAAP measure and not defined in this filing. Derived here as operating cash flow less additions to oil and gas property less leasehold acquisitions. The method is shown wherever the figure is used.

Balance sheet & market

Public floatThe market value of shares held by non-affiliates, disclosed on the 10-K cover at the prior 30 June. Converting it to a float percentage needs a share price on that date, which the filing does not contain.

Filing & document terms

10-KThe annual report filed with the SEC. Item 7 is management's discussion and analysis; Item 1A is risk factors; Item 8 and Item 15 carry the audited financial statements.

YoY · CAGRYear over year · compound annual growth rate.

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Not investment advice. DHI Signal publishes impersonal, rules-based research; no recommendation to buy or sell any security is made or implied. Every statement figure is transcribed from Caterpillar Inc.'s Form 10-K for FY2025 (accession 0000018230-26-000008), pulled from EDGAR XBRL. Derived measures are computed only from lines shown on this page and the arithmetic is displayed so it can be checked. CAT is not in the tracked book. Market posture attaches only when the dashboard feed carries the name; this page computes none of it.