Financial Analysis

For the years ended December 31, 2025, 2024 and 2023, 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 Revenues Intersegment Sales and Revenues Total Sales and Revenues 2025 Construction Industries $ 14,064 $ 2,358 $ 4,595 $ 3,783 $ 24,800 $ 260 $ 25,060 Resource Industries 4,643 2,292 2,061 3,189 12,185 289 12,474 Power & Energy 15,558 1,985 5,717 3,883 27,143 5,058 32,201 Financial Products Segment 2,841 442 511 426 4,220 1 4,220 Total sales and revenues from reportable segments 37,106 7,077 12,884 11,281 68,348 5,607 73,955 All Other Segment 26 6 14 46 281 327 Corporate Items and Eliminations (523) (89) (97) (96) (805) (5,888) (6,693) Total Sales and Revenues $ 36,609 $ 6,988 $ 12,793 $ 11,199 $ 67,589 $ $ 67,589 2024 Construction Industries $ 14,576 $ 2,553 $ 4,315 $ 3,900 $ 25,344 $ 111 $ 25,455 Resource Industries 4,597 2,079 1,809 3,615 12,100 371 12,471 Power & Energy 13,005 1,763 5,787 3,533 24,088 4,766 28,854 Financial Products Segment 2,702 402 505 444 4,053 1 4,053 Total sales and revenues from reportable segments 34,880 6,797 12,416 11,492 65,585 5,248 70,833 All Other Segment 20 (2) 7 11 36 308 344 Corporate Items and Eliminations (503) (87) (107) (115) (812) (5,556) (6,368) Total Sales and Revenues $ 34,397 $ 6,708 $ 12,316 $ 11,388 $ 64,809 $ $ 64,809 2023 Construction Ind …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Stock-based compensation Our stock-based compensation plans primarily provide for the granting of stock options, restricted stock units (RSUs) and performance-based restricted stock units (PRSUs) to Officers and other key employees, as well as non-employee Directors. Stock options permit a holder to buy Caterpillar stock at the stocks price when the option was granted. RSUs are agreements to issue shares of Caterpillar stock at the time of vesting. PRSUs are similar to RSUs and include performance conditions in the vesting terms of the award. Our long-standing practices and policies specify that the Compensation Committee (the Committee) of the Board of Directors approve all stock-based compensation awards. The award approval process specifies the grant date, value and terms of the award. We consistently apply the same terms and conditions to all employee grants, including Officers. The Committee approves all individual Officer grants. We determine the number of stock-based compensation award units included in an individuals award based on the methodology approved by the Committee. The exercise price methodology approved by the Committee is the closing price of the Company stock on the date of the grant. In June of 2014, shareholders approved the Caterpillar Inc. 2014 Long-Term Incentive Plan (the 2014 Plan) under which all new stock-based compensation awards were granted. In June of 2023, shareholders approved the Caterpillar Inc. 2023 Long-Term Incentive Plan (the 2023 Plan …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Fair value disclosures A. Fair value measurements The guidance on fair value measurements defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. This guidance also specifies a fair value hierarchy based upon the observability of inputs used in valuation techniques. Observable inputs (highest level) reflect market data obtained from independent sources, while unobservable inputs (lowest level) reflect internally developed market assumptions. In accordance with this guidance, fair value measurements are classified under the following hierarchy: Level 1 Quoted prices for identical instruments in active markets. Level 2 Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs or significant value-drivers are observable in active markets. Level 3 Model-derived valuations in which one or more significant inputs or significant value-drivers are unobservable. When available, we use quoted market prices to determine fair value, and we classify such measurements within Level 1. In some cases where market prices are not available, we make use of observable market based inputs to calculate fair value, in which case the measurements are classified within …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Intangible assets and goodwill A. Intangible assets Intangible assets were comprised of the following: December 31, 2025 (Millions of dollars) Gross Carrying Amount 1 Accumulated Amortization 1 Net Customer relationships $ 2,012 $ (1,877) $ 135 Intellectual property 479 (399) 80 Other 117 (91) 26 Total finite-lived intangible assets $ 2,608 $ (2,367) $ 241 December 31, 2024 Gross Carrying Amount Accumulated Amortization Net Customer relationships $ 2,220 $ (1,950) $ 270 Intellectual property 496 (401) 95 Other 117 (83) 34 Total finite-lived intangible assets $ 2,833 $ (2,434) $ 399 1 For the year ended December 31, 2025, $248 million of intangible assets were fully amortized and have been removed. Finite-lived intangible assets are amortized over their estimated useful lives and tested for impairment if events or changes in circumstances indicate that the asset may be impaired. Amortization expense related to intangible assets was $169 million, $176 million and $218 million for 2025, 2024 and 2023, respectively. As of December 31, 2025, amortization expense related to intangible assets is expected to be: (Millions of dollars) 2026 2027 2028 2029 2030 Thereafter $98 $35 $27 $24 $21 $36 B. Goodwill There were no goodwill impairments during 2025, 2024 or 2023. The changes in carrying amount of goodwill by reportable segment for the years ended December 31, 2025 and 2024 were as follows: (Millions of dollars) December 31, 2024 Other Adjustments 1 December 31, 2025 Construction In …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income taxes As described in Note 1J, New accounting guidance, we have elected to prospectively adopt the guidance in ASU 2023-09. The following table is a reconciliation of the U.S. federal statutory tax rate of 21 percent to our effective tax rate for the year ended December 31, 2025 in accordance with the guidance in ASU 2023-09. Reconciliation of the U.S. federal statutory tax rate to effective tax rate: Year ended December 31, (Millions of dollars) 2025 Taxes at U.S. statutory tax rate $ 2,424 21.0 % (Decreases)/increases resulting from: Non-U.S. tax effects Switzerland Federal statutory tax rate difference (310) (2.7) % State and local income taxes, net of federal 160 1.4 % Other (27) (0.2) % Other Non-U.S. jurisdictions 342 3.0 % Other 179 1.5 % Provision (benefit) for income taxes $ 2,768 24.0 % The following table is a reconciliation of the U.S. federal statutory tax rate of 21 percent to our effective tax rate for the years ended December 31, 2024 and December 31, 2023 prior to the adoption of the guidance in ASU 2023-09. Reconciliation of the U.S. federal statutory tax rate to effective tax rate: Years ended December 31, (Millions of dollars) 2024 2023 Taxes at U.S. statutory rate $ 2,809 21.0 % $ 2,740 21.0 % (Decreases) increases resulting from: Non-U.S. subsidiaries taxed at other than the U.S. rate 186 1.4 % 129 1.0 % U.S. tax incentives (245) (1.8) % (170) (1.3) % Tax law change related to currency translation (224) (1.7) % % Othernet 103 0.8 % 82 0.6 % Provis …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Environmental and legal matters The Company is regulated by federal, state and international environmental laws governing its use, transport and disposal of substances and control of emissions. In addition to governing our manufacturing and other operations, these laws often impact the development of our products, including, but not limited to, required compliance with air emissions standards applicable to internal combustion engines. We have made, and will continue to make, significant research and development and capital expenditures to comply with these emissions standards. We are engaged in remedial activities at a number of locations, often with other companies, pursuant to federal and state laws. When it is probable we will pay remedial costs at a site, and those costs can be reasonably estimated, we accrue the investigation, remediation, and operating and maintenance costs against our earnings. We accrue costs based on consideration of currently available data and information with respect to each individual site, including available technologies, current applicable laws and regulations, and prior remediation experience. Where no amount within a range of estimates is more likely, we accrue the minimum. Where multiple potentially responsible parties are involved, we consider our proportionate share of the probable costs. In formulating the estimate of probable costs, we do not consider amounts expected to be recovered from insurance companies or others. We reassess these …

LegalMattersAndContingenciesTextBlock · excerpt; the full note is in the filing

Leases A. Lessee arrangements We lease certain property, information technology equipment, warehouse equipment, vehicles and other equipment through operating leases. We recognize a lease liability and corresponding right-of-use asset based on the present value of lease payments. To determine the present value of lease payments for most of our leases, we use our incremental borrowing rate based on information available on the lease commencement date. For certain property and information technology equipment leases, we have elected to separate payments for lease components from non-lease components. For all other leases, we have elected not to separate payments for lease and non-lease components. Our lease agreements may include options to extend or terminate the lease. When it is reasonably certain that we will exercise that option, we have included the option in the recognition of right-of-use assets and lease liabilities. We have elected not to recognize right-of-use assets or lease liabilities for leases with a term of twelve months or less. Our finance leases are not significant and therefore are not included in the following disclosures. The components of lease costs were as follows: (Millions of dollars) Years Ended December 31, 2025 2024 2023 Operating lease cost $ 192 $ 185 $ 189 Short-term lease cost $ 67 $ 65 $ 62 We recognize operating lease right-of-use assets in Other assets in Statement 3. We recognize the operating lease liabilities in Other current liabilities …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Long-term debt December 31, (Millions of dollars) Effective Yield to Maturity 1 2025 2024 Machinery, Power & Energy: Notes$759 million of 5.200% due 2041 2 5.27% $ 753 $ 753 Debentures$193 million of 6.625% due 2028 2 6.68% 193 193 Debentures$500 million of 2.600% due 2029 2 2.67% 499 498 Debentures$800 million of 2.600% due 2030 2 2.72% 796 796 Debentures$500 million of 1.900% due 2031 2 2.04% 497 496 Debentures$242 million of 7.300% due 2031 2 7.38% 241 241 Debentures$1,700 million of 5.200% due 2035 2 5.30% 1,688 Debentures$307 million of 5.300% due 2035 2 8.64% 241 237 Debentures$460 million of 6.050% due 2036 2 6.12% 457 457 Debentures$65 million of 8.250% due 2038 2 8.38% 64 64 Debentures$160 million of 6.950% due 2042 2 7.02% 158 158 Debentures$1,722 million of 3.803% due 2042 2 6.39% 1,395 1,375 Debentures$500 million of 4.300% due 2044 4.39% 494 494 Debentures$1,000 million of 3.250% due 2049 2 3.34% 985 984 Debentures$1,200 million of 3.250% due 2050 2 3.32% 1,187 1,186 Debentures$300 million of 5.500% due 2055 2 5.74% 289 Debentures$500 million of 4.750% due 2064 4.81% 494 494 Debentures$246 million of 7.375% due 2097 2 7.51% 241 241 Finance lease obligations & other 3 6 (103) Total Machinery, Power & Energy 10,678 8,564 Financial Products: Medium-term notes 19,675 18,568 Other 343 219 Total Financial Products 20,018 18,787 Total long-term debt due after one year $ 30,696 $ 27,351 1 Effective yield to maturity includes the impact of discounts, premiums …

LongTermDebtTextBlock · excerpt; the full note is in the filing

J. New accounting guidance A. Adoption of new accounting standards Income tax reporting (ASU 2023-09) In December 2023, the Financial Accounting Standards Board (FASB) issued accounting guidance to expand the annual disclosure requirements for income taxes, primarily related to the rate reconciliation and income taxes paid. The expanded disclosures were effective for the year ending December 31, 2025, and are being applied prospectively. See Note 6, Income taxes, for additional information. All other ASUs effective January 1, 2025, were assessed and determined that they either were not applicable or did not have a material impact on our financial statements. B. Accounting standards issued but not yet adopted Disaggregation of income statement expenses (ASU 2024-03) In November 2024, the FASB issued accounting guidance to enhance transparency into the nature and function of income statement expenses. The amendments require that, on an annual and interim basis, entities disclose disaggregated operating expense information about specific categories, including purchases of inventory, employee compensation, depreciation and amortization. The expanded annual disclosures are effective for our year ending December 31, 2027, and the expanded interim disclosures are effective in 2028, with early adoption permitted. We are in the process of evaluating the effect of this new guidance on the related disclosures. Internal-use software costs (ASU 2025-06) In September 2025, the FASB issued …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Postemployment benefit plans We provide defined benefit pension plans, defined contribution plans and/or other postretirement benefit plans (retirement health care and life insurance) to employees in many of our locations throughout the world. Our defined benefit pension plans provide a benefit based on years of service and/or the employees average earnings near retirement. Our defined contribution plans allow employees to contribute a portion of their salary to help save for retirement, and in most cases, we provide a matching contribution. The benefit obligation related to our non-U.S. defined benefit pension plans are for employees located primarily in Europe, Japan and Brazil. For other postretirement benefits (OPEB), substantially all of our benefit obligation is for employees located in the United States. A. Obligations, assets and funded status U.S. Pension Benefits Non-U.S. Pension Benefits Other Postretirement Benefits (Millions of dollars) 2025 2024 2025 2024 2025 2024 Accumulated benefit obligation, end of year $ 12,066 $ 12,171 $ 3,011 $ 2,880 Change in benefit obligation: Benefit obligation, beginning of year $ 12,171 $ 13,137 $ 2,989 $ 3,265 $ 2,469 $ 2,741 Service cost 1 49 43 63 67 Interest cost 612 625 118 118 125 131 Plan amendments 6 Actuarial loss (gain) 276 (603) (93) (31) (96) (202) Foreign currency exchange rates 291 (203) 21 (33) Participant contributions 5 5 41 45 Benefits paid - gross (993) (988) (189) (193) (287) (286) Less: federal subsidy on benef …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Restructuring income/costs Our accounting for employee separations is dependent upon how the particular program is designed. For voluntary programs, we recognize eligible separation costs at the time of employee acceptance unless the acceptance requires explicit approval by the company. For involuntary programs, we recognize eligible costs when management has approved the program, the affected employees have been properly notified and the costs are estimable. Restructuring costs for 2025, 2024 and 2023 were as follows: (Millions of dollars) 2025 2024 2023 Employee separations 1 $ 106 $ 64 $ 74 Divestitures 1 30 164 586 Contract terminations 1 4 7 7 Long-lived asset impairments 1 17 6 3 Other 2 291 118 110 Total restructuring (income) costs $ 448 $ 359 $ 780 1 Recognized in Other operating (income) expenses. 2 Represents costs related to our restructuring programs, primarily for inventory write-downs, project management and accelerated depreciation, all of which are primarily included in Cost of goods sold. The restructuring costs in 2025 were related to restructuring actions across the company including write-downs in the value of inventory in the Rail division. The restructuring costs in 2024 were related to restructuring actions across the company including the divestitures of certain non-U.S. entities. The restructuring costs in 2023 were primarily related to the divestiture of the company's Longwall business within Resource Industries. In 2025, 2024 and 2023, all restruct …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

Sales and revenue recognition A. Sales of Machinery, Power & Energy We recognize sales of MP&E when all the following criteria are satisfied: (i) a contract with an independently owned and operated dealer or an end user exists which has commercial substance; (ii) it is probable we will collect the amount charged to the dealer or end user; and (iii) we have completed our performance obligation whereby the dealer or end user has obtained control of the product. A contract with commercial substance exists once we receive and accept a purchase order under a dealer sales agreement, or once we enter into a contract with an end user. If collectibility is not probable, the sale is deferred and not recognized until collection is probable or payment is received. Control of our products typically transfers when title and risk of ownership of the product has transferred to the dealer or end user. Typically, where product is produced and sold in the same country, title and risk of ownership transfer when we ship the product. Products that are exported from a country for sale typically transfer title and risk of ownership at the border of the destination country. Our remanufacturing operations are primarily focused on the remanufacture of Cat engines and components and rail related products. In this business, we inspect, clean and remanufacture used engines and related components (core). In connection with the sale of our remanufactured product to dealers, we collect a deposit that …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

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, Construction Industries, Resource Industries and Power & Energy 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 Ju …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Subsequent eventOn February 3, 2026, the Federal Court of Australia approved Caterpillar's acquisition of RPMGlobal Holdings Limited, an Australian based software company. The transaction is expected to close in the final two weeks of February with a purchase price of approximately $790million, excluding cash acquired. RPMGlobal is a leading provider of mining software solutions with deep domain expertise in mining technology enablement and data-driven software solutions at every stage of the mining lifecycle. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing

Acquisitions RPMGlobal On February 17, 2026, Caterpillar completed the acquisition of RPMGlobal Holdings Limited (RPMGlobal), an Australian based software company. Headquartered in Brisbane, Australia, RPMGlobal is a leading provider of mining software solutions. RPMGlobal has deep domain expertise in mining technology enablement, providing global customers with data-driven software solutions at every stage of the mining lifecycle. The acquisition, within the Resource Industries segment, aligns with our strategy of providing customers with expanded product offerings including advanced technology solutions. The purchase price was approximately $733 million, net of $53 million of acquired cash. We financed the transaction with available cash. As of the acquisition date, the tangible assets acquired were $78 million which were recorded at their fair values and primarily included cash of $53 million and receivables of $18 million. Finite-lived intangible assets acquired included $110 million related to developed intellectual property, customer relationships of $85 million and trade names of $5 million, each of which were recorded at their acquisition date fair value. These intangible assets will be amortized on a straight-line basis over a weighted-average useful life of approximately 10 years. Liabilities assumed as of the acquisition date were approximately $38 million. Goodwill of $546 million, of which $523 million is expected to be deductible for income tax purposes, represe …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

The three and six months ended June 30, 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 Revenues Inter-Segment Sales and Revenues Total Sales and Revenues Three Months Ended June 30, 2026 Power & Energy $ 4,182 $ 373 $ 1,348 $ 892 $ 6,795 $ 1,443 $ 8,238 Construction Industries 5,065 676 1,456 1,064 8,261 85 8,346 Resource Industries 2,230 671 713 954 4,568 80 4,648 Financial Products Segment 765 122 137 121 1,145 1 1,145 Total sales and revenues from reportable segments 12,242 1,842 3,654 3,031 20,769 1,608 22,377 All Other Segment 9 1 2 3 15 69 84 Corporate Items and Eliminations (157) (22) (31) (31) (241) (1,677) (1,918) Total Sales and Revenues $ 12,094 $ 1,821 $ 3,625 $ 3,003 $ 20,543 $ $ 20,543 Three Months Ended June 30, 2025 Power & Energy $ 3,225 $ 442 $ 1,306 $ 821 $ 5,794 $ 1,243 $ 7,037 Construction Industries 3,369 540 1,185 1,029 6,123 67 6,190 Resource Industries 1,668 592 584 945 3,789 97 3,886 Financial Products Segment 703 105 126 108 1,042 1 1,042 Total sales and revenues from reportable segments 8,965 1,679 3,201 2,903 16,748 1,407 18,155 All Other Segment 6 1 6 13 72 85 Corporate Items and Eliminations (120) (23) (22) (27) (192) (1,479) (1,671) Total Sales and Revenues $ 8,851 $ 1,656 $ 3,180 $ 2,882 $ 16,569 $ $ 16,569 1 Includes revenues from Power &a …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Stock-based compensation Accounting for stock-based compensation requires that the cost resulting from all stock-based payments be recognized in the financial statements based on the grant-date fair value of the award. Our stock-based compensation consists of stock options, restricted stock units (RSUs) and performance-based restricted stock units (PRSUs). We recognized pretax stock-based compensation expense of $92 million and $146 million for the three and six months ended June 30, 2026, respectively, and $86 million and $131 million for the three and six months ended June 30, 2025, respectively. The following table illustrates the type and fair value of the stock-based compensation awards granted during the six months ended June 30, 2026 and 2025: Six Months Ended June 30, 2026 Six Months Ended June 30, 2025 Shares Granted Weighted-Average Fair Value Per Share Shares Granted Weighted-Average Fair Value Per Share Stock options 126,660 $ 270.41 299,523 $ 106.04 RSUs 224,552 $ 758.15 442,800 $ 333.10 PRSUs 86,114 $ 925.49 199,856 $ 345.60 The fair value of our stock options was estimated using the Black-Scholes option-pricing model. The following table provides the assumptions used in determining the fair value of the stock options granted during the six months ended June 30, 2026 and 2025: Grant Year 2026 2025 Weighted-average dividend yield 1.82% 2.13% Weighted-average volatility 36.1% 30.5% Range of volatilities 29.5% - 34.2% 26.6% - 32.6% Range of risk-free interest rates …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Fair value disclosures A. Fair value measurements The guidance on fair value measurements defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. This guidance also specifies a fair value hierarchy based upon the observability of inputs used in valuation techniques. Observable inputs (highest level) reflect market data obtained from independent sources, while unobservable inputs (lowest level) reflect internally developed market assumptions. In accordance with this guidance, fair value measurements are classified under the following hierarchy: Level 1 Quoted prices for identical instruments in active markets. Level 2 Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs or significant value-drivers are observable in active markets. Level 3 Model-derived valuations in which one or more significant inputs or significant value-drivers are unobservable. When available, we use quoted market prices to determine fair value, and we classify such measurements within Level 1. In some cases where market prices are not available, we make use of observable market-based inputs to calculate fair value, in which case the measurements are classified within …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Intangible assets and goodwill A. Intangible assets Intangible assets were comprised of the following: June 30, 2026 (Millions of dollars) Gross Carrying Amount 1 Accumulated Amortization 1 Net Customer relationships $ 495 $ (342) $ 153 Intellectual property 642 (402) 240 Other 86 (59) 27 Total finite-lived intangible assets $ 1,223 $ (803) $ 420 December 31, 2025 Gross Carrying Amount Accumulated Amortization Net Customer relationships $ 2,012 $ (1,877) $ 135 Intellectual property 479 (399) 80 Other 117 (91) 26 Total finite-lived intangible assets $ 2,608 $ (2,367) $ 241 1 For the six months ended June 30, 2026, $1.6 billion of intangible assets were fully amortized and have been removed. During the first quarter of 2026, we acquired finite-lived intangible assets of $200 million due to the purchase of RPM Global. See Note 22 for details on the acquisition. Amortization expense for the three and six months ended June 30, 2026 was $46 million and $87 million, respectively. Amortization expense for the three and six months ended June 30, 2025 was $43 million and $87 million, respectively. Amortization expense related to intangible assets is expected to be: (Millions of dollars) Remaining Six Months of 2026 2027 2028 2029 2030 Thereafter $36 $67 $59 $55 $53 $150 B. Goodwill No goodwill was impaired during the six months ended June 30, 2026 or 2025. The changes in carrying amount of goodwill by reportable segment for the six months ended June 30, 2026 were as follows: (Millions …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income taxes The effective tax rate for the three months ended June 30, 2026 was 23.1 percent compared to 23.0 percent for the three months ended June 30, 2025. The effective tax rate for the six months ended June 30, 2026 was 22.2 percent compared to 22.6 percent for the six months ended June 30, 2025.

IncomeTaxDisclosureTextBlock

Environmental and legal matters The Company is regulated by federal, state and international environmental laws governing its use, transport and disposal of substances and control of emissions. In addition to governing our manufacturing and other operations, these laws often impact the development of our products, including, but not limited to, required compliance with air emissions standards applicable to internal combustion engines. We have made, and will continue to make, significant research and development and capital expenditures to comply with these emissions standards. We are engaged in remedial activities at a number of locations, often with other companies, pursuant to federal and state laws. When it is probable we will pay remedial costs at a site, and those costs can be reasonably estimated, we accrue the investigation, remediation, and operating and maintenance costs against our earnings. We accrue costs based on consideration of currently available data and information with respect to each individual site, including available technologies, current applicable laws and regulations, and prior remediation experience. Where no amount within a range of estimates is more likely, we accrue the minimum. Where multiple potentially responsible parties are involved, we consider our proportionate share of the probable costs. In formulating the estimate of probable costs, we do not consider amounts expected to be recovered from insurance companies or others. We reassess these …

LegalMattersAndContingenciesTextBlock · excerpt; the full note is in the filing

Postretirement benefits A. Pension and postretirement benefit costs U.S. Pension Benefits Non-U.S. Pension Benefits Other Postretirement Benefits June 30, June 30, June 30, (Millions of dollars) 2026 2025 2026 2025 2026 2025 For the three months ended: Components of net periodic benefit cost: Service cost $ $ $ 12 $ 12 $ 14 $ 16 Interest cost 136 153 30 27 26 30 Expected return on plan assets (176) (180) (44) (40) (3) (2) Amortization of prior service cost (credit) 1 (1) Net periodic benefit cost (benefit) 1 $ (40) $ (27) $ (1) $ (1) $ 37 $ 43 For the six months ended: Components of net periodic benefit cost: Service cost $ $ $ 24 $ 23 $ 28 $ 32 Interest cost 272 306 60 55 53 61 Expected return on plan assets (352) (360) (88) (80) (6) (4) Amortization of prior service cost (credit) 1 (2) Net periodic benefit cost (benefit) 1 $ (80) $ (54) $ (3) $ (2) $ 75 $ 87 1 The service cost component is included in Operating costs. All other components are included in Other income (expense). We made $64 million and $282 million of contributions to our pension and other postretirement plans during the three and six months ended June 30, 2026, respectively. We currently anticipate full-year 2026 contributions of approximately $360 million. B. Defined contribution benefit costs Total company costs related to our defined contribution plans, which are included in Operating costs in the Consolidated Statement of Results of Operations, were as follows: Three Months Ended June 30, Six Months End …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Restructuring income/costs Our accounting for employee separations is dependent upon how the particular program is designed. For voluntary programs, we recognize eligible separation costs at the time of employee acceptance unless the acceptance requires explicit approval by the company. For involuntary programs, we recognize eligible costs when management has approved the program, the affected employees have been properly notified and the costs are estimable. Restructuring costs for the three and six months ended June 30, 2026 and 2025 were as follows: (Millions of dollars) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Employee separations 1 $ 34 $ 10 $ 69 $ 27 Divestitures 1 139 139 Other 2 29 49 35 65 Total restructuring (income) costs $ 202 $ 59 $ 243 $ 92 1 Recognized in Other operating (income) expenses. 2 Represents costs related to our restructuring programs, primarily for inventory write-downs and project management, which are primarily recognized in Cost of goods sold, and long-lived asset impairments, which are recognized in Other operating (income) expenses. The restructuring costs for the six months ended June 30, 2026 were related to restructuring actions across the company, including the divestiture of certain non-U.S. entities. The restructuring costs for the six months ended June 30, 2025 were related to restructuring actions across the company. In 2026 and 2025, all restructuring costs are excluded from segment profit. …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

Sales and revenue contract information Trade receivables represent amounts due from dealers and end users for the sale of our products, and include amounts due from wholesale inventory financing provided by Cat Financial for a dealers purchase of inventory. We recognize trade receivables from dealers and end users in Receivables trade and other and Long-term receivables trade and other in the Consolidated Statement of Financial Position. Trade receivables from dealers and end users were $10,920 million, $9,402 million and $7,864 million as of June 30, 2026, December 31, 2025 and December 31, 2024, respectively. Long-term trade receivables from dealers and end users were $1,274 million, $1,006 million and $640 million as of June 30, 2026, December 31, 2025 and December 31, 2024, respectively. For certain contracts, we invoice for payment when contractual milestones are achieved. We recognize a contract asset when a sale is recognized before achieving the contractual milestone for invoicing. We reduce the contract asset when we invoice for payment and recognize a corresponding trade receivable. Contract assets are included in Prepaid expenses and other current assets in the Consolidated Statement of Financial Position. Contract assets were $277 million, $297 million and $238 million as of June 30, 2026, December 31, 2025 and December 31, 2024, respectively. We invoice in advance of recognizing the sale of certain products. We recognize advanced customer payments as a contract l …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

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 J …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing