Caterpillar (CAT) Status Update summary

Strategic focus and financial performance

• Emphasis on long-term profitable growth through operational excellence, expanded offerings, services, and sustainability.

• Services revenue grew from $14B in 2016 to $24B in 2023, with a target of $28B by 2026.

• Services represented 39% of ME&T sales in 2023, up from 36% the prior year.

• Services revenue grew 4% in 2023 despite a 3% decline in total sales.

• Focus remains on increasing recurring revenue and customer success.

Digital innovation and connectivity

• Over 1.5 million connected assets globally, enabling advanced digital solutions.

• Helios, a cloud-based digital platform, integrates data from Caterpillar and other OEMs, processing 50B records monthly.

• Digital tools like VisionLink and Cat Inspect enhance equipment management and inspection efficiency.

• AI-driven solutions, such as Prioritized Service Events, help predict maintenance needs and reduce downtime.

• E-commerce platforms have more than doubled online customer transactions, exceeding growth targets.

Customer value agreements and dealer network

• Over two-thirds of new equipment sold with Customer Value Agreements (CVAs), offering predictable costs and enhanced service.

• CVAs tailored for both large and small customers, with unique service commitments and uptime guarantees.

• Dealer network spans 150 dealers, 180,000 employees, and 3,900 locations, with an average tenure over 60 years.

• Caterpillar-led, dealer-executed model serves large global customers, combining direct contact with local expertise.