Caterpillar (CAT) Q4 2025 earnings summary

Executive summary

• Full-year 2025 sales and revenues reached a record $67.6 billion, up 4% year-over-year, with Q4 sales at a record $19.1 billion, up 18% year-over-year.

• Adjusted operating profit margin for 2025 was 17.2%, within the target range, and adjusted profit per share was $19.06.

• Record order backlog at year-end 2025 was $51.2 billion, up 71% year-over-year, providing strong momentum into 2026.

• $7.9 billion was returned to shareholders in 2025 through share repurchases and dividends.

• Strong operating and free cash flow supported capital returns and a year-end cash balance of $10.0 billion.

Financial highlights

• Q4 2025 sales and revenues were $19.1 billion, an all-time quarterly record, with 18% growth year-over-year.

• Q4 adjusted operating profit margin was 15.6%, and adjusted profit per share was $5.16.

• Full-year MP&E free cash flow was $9.5 billion, marking the third consecutive year above $9 billion.

• Full-year operating profit margin was 16.5% (GAAP), 17.2% (adjusted); profit per share was $18.81 (GAAP), $19.06 (adjusted).

• Net incremental tariff headwinds totaled $1.7 billion for the year.

Outlook and guidance

• 2026 sales and revenues expected to grow near the top of the 5%-7% CAGR target, supported by a record backlog.

• Adjusted operating profit margin for 2026 projected near the bottom of the target range due to $2.6 billion in incremental tariff costs.

• Capital expenditures to rise to $3.5 billion, with free cash flow slightly lower than 2025.

• 2026 restructuring costs estimated at $300M–$350M; effective tax rate of 23%.

• All segments expected to see volume and price growth, with Power and Energy leading.