Caterpillar Inc.

“With 2025 sales and revenues of $67.589 billion, Caterpillar Inc. is shaping the future as the world’s leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives.”

“Caterpillar continues to operate through five operating segments, four of which are reportable segments and are described below.”

“In March 2026, we will file a Form 8-K recasting historical periods to reflect the movement of the Rail division to Resource Industries.”

“Customers in developing economies often prioritize purchase price in making their investment decisions, while customers in developed economies generally weigh productivity and other performance criteria”

“Backed by one of the largest independent global dealer networks and financing services through Cat Financial”

“The Construction Industries product portfolio includes the following machines and related parts, services and worktools: · asphalt pavers· motor graders· track-type tractors (small, medium)”

“Our equipment is used to extract and haul copper, iron ore, coal, oil sands, aggregates, gold and other minerals and ores”

“The product and services portfolio includes reciprocating engines, generator sets, integrated systems and solutions, turbines and turbine-related services, electrified powertrain and zero-emission power sources”

“•Loans – Cat Financial offers loans that allow customers to purchase equipment with structured payments over time.”

“North America sales increased 6 percent due to higher sales volume, partially offset by unfavorable price realization.”

“Total sales and revenues$36,609 $6,988 $12,793 $11,199 $67,589 $— $67,589”

“Oil and Gas$7,502 $6,980 $6,988 Power Generation10,275 7,756 6,362”

“Our primary exposure (excluding competitive risk) is to exchange rate movements in the Australian dollar, Chinese yuan, Euro, Indian rupee and Mexican peso.”

“We believe our ability to control the integration and design of key machine components and innovative technologies represents a competitive advantage.”

“Examples of global competitors include CASE (part of CNH Industrial N.V.), Deere Construction & Forestry (part of Deere & Company), Doosan Bobcat (Part of Doosan Group), Hitachi Construction Machinery Co., Ltd.”

“If we do not take the mitigating actions we plan to take in 2026, the impact from tariffs could be around 20 percent higher.”

“we expect the impact from tariffs to be around $2.6 billion in 2026, which is $800 million higher than incurred in 2025... we expect restructuring costs of approximately $300 million to $350 million and capital expenditures of around $3.5 billion. We anticipate our 2026 estimated annual effective tax rate to be 23.0 percent”

“We expect the impact from incremental tariffs to be around $800 million in the first quarter of 2026, which is similar to the fourth quarter of 2025. We anticipate around 50 percent of the incremental tariff costs will be in Construction Industries, 20 percent in Resource Industries and 30 percent in Power & Energy.”

“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.”

“The decrease was mainly due to unfavorable manufacturing costs and unfavorable price realization, partially offset by the profit impact of higher sales volume. Unfavorable manufacturing costs largely reflected the impact of higher tariffs.”

“driven by increasing energy demand to support data center build-out related to cloud computing and generative Artificial Intelligence (AI)... After reaching record levels in 2025, Oil & Gas is expected to see moderate growth in 2026.”

“sales of equipment to end users should grow moderately compared to 2025 with construction spending remaining healthy due to Infrastructure Investment and Jobs Act (IIJA) funding and other critical infrastructure programs. We also anticipate accelerated investment in data centers”

“primarily driven by rising demand for copper and gold, and positive growth trends in heavy construction and quarry and aggregates. In mining, most key commodities remain above investment thresholds, and customer product utilization is high while the age of the fleet remains elevated.”

“Regulatory emissions standards require us to continue to make investments as new products and new regulations are introduced. Ongoing compliance with these regulations remains a focus.”

“We are a significant user of steel and many other commodities required for the manufacture of our products. Increases in the prices of such commodities would increase our costs”

“We continue to monitor a variety of external factors around the world, such as supply chain disruptions, inflationary cost, labor pressures and the impact of trade policies. Areas of particular focus include transportation, certain components and raw materials.”

“the U.S. Foreign Corrupt Practices Act and similar foreign anti-corruption laws generally prohibit companies and their intermediaries from making improper payments or providing anything of value to improperly influence foreign government officials”

“Interest rate changes may also affect our customers’ ability to finance machine purchases, can change the optimal time to keep machines in a fleet and can impact the ability of our suppliers to finance the production of parts and components”

“Throughout the world, government spending finances a significant portion of infrastructure development, such as highways, rail systems, airports, sewer and water systems, waterways and dams.”

“imposition of new or additional tariffs or quotas;withdrawal from or modification of trade agreements or the negotiation of new trade agreements;imposition of new or additional trade and economic sanctions laws imposed by the U.S. or foreign governments”

“We may be required to make material contributions to our pension plans in the future and may fund contributions through the use of cash on hand, the proceeds of borrowings, shares of our common stock or a combination of the foregoing, as permitted by applicable law. We employ a liability-driven investment strategy”

“For example, a government’s adoption of “buy national” policies or retaliation by another government against such policies could have a negative impact on our results of operations.”

“We are also subject to the continuous examination of our income tax returns by the U.S. Internal Revenue Service and other tax authorities.”

“We are involved in various claims and lawsuits related to product design, manufacture and performance liability (including claimed asbestos exposure), contracts, employment issues, environmental matters, intellectual property rights, tax, securities and other legal proceedings”

“Changes in climate change concerns, or in the regulation of such concerns, including greenhouse gas emissions, could subject us to additional costs and restrictions, including increased energy and raw materials costs.”