# Caterpillar Inc. (CAT) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-12  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/CAT/thesis · /stocks/CAT/memo

## Financial Snapshot

---
ticker: CAT
step: 04
generated: 2026-05-12
source: quick-research
---

### Caterpillar Inc. (CAT) — Financial Snapshot

#### Income Statement Summary

| Metric | FY2022 | FY2023 | FY2024 | FY2025 | YoY (25v24) |
|--------|--------|--------|--------|--------|-------------|
| Revenue | $59.4B | $67.1B | $64.8B | $67.6B | +4.3% |
| Gross Margin | ~30% | ~34% | ~36% | ~35% | -100 bps |
| Operating Margin | 13.3% | 19.3% | 20.2% | ~19.5% | -70 bps |
| Adj. Operating Margin | 14.0% | 20.5% | 20.7% | ~20% | -70 bps |
| Net Income | $6.7B | $10.3B | $10.8B | ~$9.0B | -16% |
| EPS (diluted) | $12.64 | $20.12 | $22.05 | $18.81 | -14.7% |
| Adj. EPS | $13.84 | $21.21 | $21.90 | ~$20 | -8.7% |

Note: FY2025 EPS declined despite revenue growth due to higher input/material costs (tariff impact) and reset commercial pricing — bookings/backlog continued to expand strongly. TTM revenue (March 2026) reached $70.8B (+11.9% YoY) as the AI-power upcycle accelerated into 2026.

#### Q4 FY2025 — Record Quarter
- Revenue: $19.1B (+18% YoY)
- Backlog entering 2026: $51B (+71% YoY) — a record

#### Cash Flow & Balance Sheet (FY2025)

| Metric | Value |
|--------|-------|
| Operating Cash Flow | ~$12B |
| Capex | ~$2.5B |
| Free Cash Flow | ~$9.5B |
| Cash & Equivalents | ~$7B |
| Total Debt (incl. Cat Financial) | ~$36B |
| ROE | ~47.2% |

#### Capital Return
- 32 consecutive years of dividend increases (Dividend Aristocrat)
- Annual dividend payout: ~$2.8B
- Share buybacks: $5–8B annually (variable by year)
- Total capital return targeted ~100% of FCF over time

#### Key Ratios (approximate, May 2026)
- P/E: ~22x (TTM) | EV/EBITDA: ~15x | FCF Yield: ~5%
- Revenue Growth (TTM): ~12% | Operating Margin: ~20%
- ROE: ~47% (industry-leading) | ROIC: ~30%+

#### Segment Mix (FY2024)
- Construction Industries: ~36% revenue
- Energy & Transportation: ~41% revenue (largest, fastest growing due to AI / data center demand)
- Resource Industries: ~17% revenue
- Financial Products: ~5% revenue

#### Growth Profile
The defining story of FY2025/2026 is Caterpillar's pivot from cyclical earthmover to industrial AI infrastructure beneficiary. Power generation revenue surged 41% in Q1 2026 to $2.82B as hyperscalers built "behind-the-meter" gas plants (G3500 / G3600 reciprocating engines + Solar Turbines) to bypass multi-year grid interconnect waits. Caterpillar lifted its long-term 2024–2030 CAGR target from 5–7% to 6–9% and now projects power generation sales tripling by 2030. The $725M Lafayette, Indiana capacity expansion (doubling G3500/G3600 production) is the largest discrete capex commitment in years, with output coming online late 2026 / 2027.

#### Forward Estimates
**2026 guidance (issued early 2026):** Low double-digit revenue growth (+10–12%); operating margin expansion modest given tariff/input headwinds. Consensus FY2026 EPS: ~$24–26 (+30%+ on normalization). The $51B backlog gives unusual revenue visibility for an industrial — typically CAT has 2–3 quarters of backlog visibility, now it has 4–6 quarters. Bull-side scenarios pencil in $24+ EPS in FY2026 and $30+ in FY2028 as AI-power orders convert. Bear-side scenarios assume mining / construction cycles weaken simultaneously with AI capex peaking, compressing the multi-segment growth path.

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/CAT/fundamental

## Navigation

- Overview: /stocks/CAT
- Financials (this page): /stocks/CAT/financials
- Thesis: /stocks/CAT/thesis
- Investment Memo: /stocks/CAT/memo
- Coverage universe: /stocks