CaterpillarWide moat

CAT — overall economic moat

Investment snapshot
Wide moat→ Holding steadyConfidenceHighValuationExpensive
Strongest advantage150 independent dealers in 190 countries selling $24bn a year of parts and service, plus a power business sold out into 2028
Greatest threatThe cycle and the price: construction still sets the downturns, tariffs cost about $2.2bn in 2026, and the shares trade at about 34 times earnings
Key metricReturn on invested capital through the next downturn (16.8% in 2025) against a 10% hurdle
Verdict: Caterpillar's moat is its dealers and parts, not its machines, and it has now added a power business growing faster than it can build. The returns look ordinary only because a bank is attached: the factories earn about 53% pre-tax on their net assets. But construction still sets the cycle, 2025 showed that tariffs and softer prices can cut profit while sales set records, and at about 34 times near-record earnings the shares assume the power boom lasts.
📈 CAT valuation, revenue & earnings — P/E, P/S, revenue, EPS →

Caterpillar makes the machines that move earth and the engines that make power, and it sells them through a network of 150 independent dealers that took a century to build. Organized as Caterpillar Tractor Co. in 1925 and reorganized as Caterpillar Inc. in 19861, it calls itself "the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives"2. It employed about 118,000 people at the end of 20253.

Total sales and revenues ($bn)47.0201538.5201654.7201841.7202059.4202264.8202467.6202574.7TTM Jun2026Caterpillar Forms 10-K FY2019, FY2022, FY2025; TTM calculated
Two troughs, then a record.

Total sales and revenues were $67,589 million in 2025, a record45. On its 2025 segment basis, Power & Energy had external sales of $27,143 million, Construction Industries $24,800 million and Resource Industries $12,185 million, and Financial Products earned $4,220 million of revenues6. Power generation alone sold $10,275 million7.

How it makes money: it builds machines and engines, sells most of them to 150 independent dealers in 190 countries89, and then sells parts and service for decades. Services revenues were $24 billion in 202510. Cat Financial lends to the customers and dealers11.

2025 showed both sides of the business. Volume rose, price realization fell by $817 million and tariffs pushed manufacturing costs up $2.148 billion12. Profit fell to $8,884 million, or $18.81 a share, from $10,792 million and $22.0513.

2026 has been stronger. Second-quarter sales and revenues were $20,543 million, up 24%, the first quarter above $20 billion in the company's history14, and the backlog reached about $72.1 billion15. The company returned $5.2 billion in buybacks and $2.7 billion in dividends in 202516 and has raised its dividend for 32 consecutive years17.

The shares were $805.25 on 24 September 2026, a market value of $370.15 billion18, about 34 times trailing earnings19.

The company is also in the middle of a change of leadership. Joe Creed, who joined Caterpillar in 1997 and ran Energy & Transportation before becoming chief operating officer, was appointed chief executive on 1 May 2025 and became chairman on 1 April 2026, when Jim Umpleby retired after 45 years of service, eight of them as chief executive20. Kyle Epley became chief financial officer on 1 May 2026, succeeding Andrew Bonfield after eight years21. There is no controlling shareholder: Vanguard held 10.06% of the shares, State Street 7.4% and BlackRock 6.6%22.

The workforce is spread as widely as the customers. At the end of 2025, about 51,600 of the 118,000 employees were in the United States23, and 7,972 hourly production workers there were covered by collective bargaining agreements, including with the UAW24. The recordable injury frequency rate was 0.41 in 2025, against 0.43 in 202425.

The moat is wide: the dealers, the parts business and now the power franchise. The number that would falsify it is return on invested capital through the next downturn, 16.8% in 202526; if it falls below 10% again, as in 2020, the moat protects Caterpillar's share of the cycle but not its returns.

The number that tests this moat
Reported
Revenue, and where it comes from
$67.6bn in 2025: Power & Energy $27.1bn, Construction $24.8bn, Resource $12.2bn, Financial Products $4.2bn

Segment external sales before $0.8bn of eliminations. Watch power generation ($10.3bn) against construction.

Source: Caterpillar Form 10-K, FY2025 ↗
Moat scorecardHow ratings work →
Switching costs7/10
Network effects6/10
Pricing power6/10
Hard to replicate9/10
Disruption resistance7/10
Overall durability8/10

Replication is the hardest thing to do: a century-old dealer network in 190 countries with a parts business behind it could not be rebuilt quickly. Switching costs are real for fleets and mines, which are maintained and automated as systems. The dealer network behaves like a network effect: more machines in the field mean more parts, more service and better dealers. Pricing power is uneven: strong in power generation, where supply is short, weaker in construction, where Caterpillar gave back $1.1bn of price in 2025. Disruption risk is moderate, from Chinese makers and packagers in power. Durability sits in the wide band, tested by two sharp downturns in the last decade.

Dig deeper
DIG DEEPER 01
The Revenue Lines
Power & Energy overtook Construction Industries as Caterpillar's largest segment in 2025.
DIG DEEPER 02
The Moat
Caterpillar's moat is its dealers and parts, not its machines, and its returns look modest only because a bank is attached to the factory.
DIG DEEPER 03
Competitors
Caterpillar faces a different rival in every business, and wins most clearly where supply is short and least where machines are plentiful.
DIG DEEPER 04
Major Clients
No Caterpillar customer is large enough to disclose, but a handful of gigawatt-scale power buyers now sit inside a $72 billion backlog.
✦ Future bets — beyond today's moat
✦ FUTURE BET 01
The Future Bets
Caterpillar has published its bets as numbers: power generation more than tripled and the whole company growing 6-9% a year to 2030.
⚠ Threats to the moat
⚠ THREAT 01
The Cycle Has Not Been Repealed
Caterpillar's sales fell by a fifth in each of its last two downturns, and the construction business that drove those falls is still its largest.
⚠ THREAT 02
Thirty-Four Times Earnings for an Equipment Maker
Caterpillar trades at about 34 times near-record earnings, a multiple it has only reached before when earnings were depressed.
◆ What the market may be missing
◆ THE VARIANT VIEW
What the Market Isn't Pricing In
The market prices Caterpillar like a power company, but power generation is 15% of its sales and construction still sets its cycle.
◆ THE VARIANT VIEW
Inside the Latest Quarter (Q2 2026)
Caterpillar's first $20 billion quarter was real, but $392 million of its operating profit was a tariff refund that will not recur.
References
  1. ReportedOrganized as Caterpillar Tractor Co. in 1925 and reorganized as Caterpillar Inc. in 1986, it calls itself "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 Form 10-K for fiscal 2025 - note on segment information: sales, profit and external sales by segment and application. — FY2025 · publ. 13 February 2026 · source ↗
  2. ReportedOrganized as Caterpillar Tractor Co. in 1925 and reorganized as Caterpillar Inc. in 1986, it calls itself "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 Form 10-K for fiscal 2025 - note on segment information: sales, profit and external sales by segment and application. — FY2025 · publ. 13 February 2026 · source ↗
  3. ReportedIt employed about 118,000 people at the end of 2025.
    Caterpillar Form 10-K for fiscal 2025 - Item 1 business: history, products, Cat Financial, employees and order backlog. — FY2025 · publ. 13 February 2026 · source ↗
  4. ReportedTotal sales and revenues were $67,589 million in 2025, a record.
    Caterpillar Form 10-K for fiscal 2025 - Item 1 business: history, products, Cat Financial, employees and order backlog. — FY2025 · publ. 13 February 2026 · source ↗
  5. ReportedTotal sales and revenues were $67,589 million in 2025, a record.
    Caterpillar fourth-quarter 2025 earnings call transcript (company PDF) - services revenues, tariff headwinds, power generation, autonomous trucks and the AIP order. — Q4 2025 · publ. 29 January 2026 · source ↗
  6. ReportedOn its 2025 segment basis, Power & Energy had external sales of $27,143 million, Construction Industries $24,800 million and Resource Industries $12,185 million, and Financial Products earned $4,220 million of revenues.
    Caterpillar Form 10-K for fiscal 2025 - note on segment information: sales, profit and external sales by segment and application. — FY2025 · publ. 13 February 2026 · source ↗
  7. ReportedPower generation alone sold $10,275 million.
    Caterpillar Form 10-K for fiscal 2025 - Item 1 business: history, products, Cat Financial, employees and order backlog. — FY2025 · publ. 13 February 2026 · source ↗
  8. ReportedHow it makes money: it builds machines and engines, sells most of them to 150 independent dealers in 190 countries, and then sells parts and service for decades.
    Caterpillar Form 10-K for fiscal 2025 - Item 1 business: dealers and distributors. — FY2025 · publ. 13 February 2026 · source ↗
  9. Moat Explorer calcHow it makes money: it builds machines and engines, sells most of them to 150 independent dealers in 190 countries, and then sells parts and service for decades.
    Moat Explorer calculation from Caterpillar's reported figures ($ millions unless stated). Dealers: 41 + 109 = 150 (2025); 43 + 113 = 156 (2022); 46 + 119 = 165 (2019). Segment margins (segment profit / total segment sales, FY2025 10-K basis): Construction Industries 6,975 / 27,418 = 25.4% (2023), 6,165 / 25,455 = 24.2% (2024), 4,675 / 25,060 = 18.7% (2025); Resource Industries 2,836 / 13,669 = 20.7%, 2,538 / 12,471 = 20.4%, 1,988 / 12,474 = 15.9%; Power & Energy 4,936 / 28,001 = 17.6%, 5,736 / 28,854 = 19.9%, 6,418 / 32,201 = 19.9%; Financial Products 909 / 3,785 = 24.0%, 932 / 4,053 = 23.0%, 966 / 4,220 = 22.9%, 590 / 3,044 = 19.4% (2020). Recast (Rail in Resource Industries): 2,151 / 15,920 = 13.5% (2025), 2,676 / 15,745 = 17.0% (2024); Power & Energy 6,256 / 28,624 = 21.9%. Construction Industries H1 2026 3,482 / 15,507 = 22.5%. Implied Rail: sales 15,920 - 12,474 = 3,446 and profit 2,151 - 1,988 = 163, 163 / 3,446 = 4.7% (2025); sales 15,745 - 12,471 = 3,274 and profit 2,676 - 2,538 = 138 (2024). Power generation 10,275 / 3,963 = 2.6 times (2020-2025); 10,275 / 67,589 = 15.2% of sales and revenues; three times the 2024 base 7,756 x 3 = 23,268. Oil and gas 7,502 / 27,143 = 27.6% of Power & Energy external sales; 7,502 / 3,701 = 2.0 times. Services 24 / 67.589 = 35.5%; (30 / 24)^(1/5) - 1 = 4.6% a year. Backlog 72.1 / 30.0 = 2.4 times; long end 29.2 / 19.3 - 1 = 51%. Customer advances 4,777 / 3,314 - 1 = 44%. Price realization H1 2026 426 + 595 = 1,021; 2024 against 2023 1,238 / 5,596 = 22%. Volume H1 2026 2,318 + 3,113 = 5,431. Capex excluding leased equipment 2,821 / 1,597 - 1 = 77%. Pre-tax return on average MP&E net assets (MP&E adjusted operating profit / average MP&E net assets): 4,675 / 20,070 = 23.3% (2020), 6,453 / 19,662 = 32.8% (2021), 8,656 / 19,841 = 43.6% (2022), 13,439 / 19,450 = 69.1% (2023), 13,246 / 19,999 = 66.2% (2024), 11,327 / 21,417 = 52.9% (2025). Profit 8,884 / 6,147 - 1 = 44.5% and diluted EPS 18.81 / 10.26 - 1 = 83.3% (2018-2025). Dividends paid 2,749 / profit 8,884 = 30.9%. Return on average equity 8,884 / ((19,494 + 21,318) / 2) = 43.5%. Price to earnings at year end (market capitalisation $bn / profit $bn): 39.57 / 2.512 = 15.8 (2015); 93.75 / 0.754 = 124.3 (2017); 74.98 / 6.147 = 12.2 (2018); 81.62 / 6.093 = 13.4 (2019); 98.88 / 2.998 = 33.0 (2020); 111.83 / 6.489 = 17.2 (2021); 124.67 / 6.705 = 18.6 (2022); 150.52 / 10.335 = 14.6 (2023); 175.14 / 10.792 = 16.2 (2024); 268.09 / 8.884 = 30.2 (2025); trailing 370.15 / 10.844 = 34.1. Share price 805.25 / 1,073.46 - 1 = -25%. Trailing twelve months to June 2026: sales and revenues 67,589 - 30,818 + 37,958 = 74,729; profit 8,884 - 4,182 + 6,142 = 10,844; diluted EPS 18.81 - 8.82 + 13.23 = 23.22. Debt at 30 June 2026 5,046 + 35 + 8,026 + 10,655 + 21,384 = 45,146; at 31 December 2025 5,514 + 35 + 7,085 + 10,678 + 20,018 = 43,330; Financial Products debt 5,514 + 7,085 + 20,018 = 32,617, 32,617 / 43,330 = 75%. Financial Products segment assets 41,476 / 64,392 = 64%. Downturns: 38,537 / 47,011 - 1 = -18% (2016); 41,748 / 53,800 - 1 = -22% (2020). Construction Industries Asia/Pacific external sales 3,783 / 4,390 - 1 = -14%; North America share 14,064 / 24,800 = 57%. Shares of 2025 sales and revenues of 67,589: Construction Industries 24,800 = 36.7%; Resource Industries 12,185 = 18.0%; Power & Energy 27,143 = 40.2%; Financial Products 4,220 = 6.2%; Construction and Resource together (24,800 + 12,185) / 67,589 = 54.7%. Segment external sum 27,143 + 24,800 + 12,185 + 4,220 = 68,348 against 67,589 (difference 759, All Other +46 and corporate items -805); 2024 25,344 + 12,100 + 24,088 + 4,053 = 65,585 against 64,809 (776); 2023 27,294 + 13,329 + 23,355 + 3,785 = 67,763 against 67,060 (703). Power & Energy share 27,143 / 68,348 = 39.7%. 2030 range: 64,809 x 1.06^6 = 91,933; 64,809 x 1.09^6 = 108,691. RPMGlobal 733 / 67,589 = 1.1%. Autonomous trucks 827 / 690 - 1 = 20%; 690 x 3 = 2,070. Tech-enabled machines 500 / 191 = 2.6 times. Latin America employees 22,300 - 19,700 = 2,600 (EAME 16,700 - 15,900 = 800; Asia/Pacific 26,900 - 25,300 = 1,600; North America 52,100 - 52,000 = 100). Profit 2025 8,884 / 10,792 - 1 = -17.7%. Cost of goods sold 44,752 / 40,199 - 1 = 11.3%. Financial Products segment assets 41,476 / 36,925 - 1 = 12.3%. Power generation growth 7,756 / 6,362 - 1 = 21.9%, 10,275 / 7,756 - 1 = 32.5%. Engine capex at 4% to 5% of 2025 machinery, power and energy sales of 63,980: 2,559 to 3,199. Earnings implied by forward and trailing P/E 34.70 / 28.01 - 1 = 24%. Analyst target 975.61 / 805.25 - 1 = 21%. Segment capex 2025: Construction Industries 358 + Resource Industries 626 = 984, against Financial Products 1,341. Power & Energy Q2 2026 external sales: North America 4,182 against other regions 373 + 1,348 + 892 = 2,613 - segment margins, growth and price realization. — 2015-2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in Caterpillar's Forms 10-K, 10-Q, results releases, the March 2026 recast exhibit, the February 2026 Barclays deck, the earnings calls and market data; operands shown in the source line.
  10. ReportedServices revenues were $24 billion in 2025.
    Caterpillar fourth-quarter 2025 earnings call transcript (company PDF) - services revenues, tariff headwinds, power generation, autonomous trucks and the AIP order. — Q4 2025 · publ. 29 January 2026 · source ↗
  11. ReportedCat Financial lends to the customers and dealers.
    Caterpillar Form 10-K for fiscal 2025 - Item 1 business: dealers and distributors. — FY2025 · publ. 13 February 2026 · source ↗
  12. ReportedVolume rose, price realization fell by $817 million and tariffs pushed manufacturing costs up $2.148 billion.
    Caterpillar Form 10-K for fiscal 2025 - Item 7 MD&A: consolidated results, sales and profit bridges, tariffs, dealer inventory and the 2026 outlook. — FY2025 · publ. 13 February 2026 · source ↗
  13. ReportedProfit fell to $8,884 million, or $18.81 a share, from $10,792 million and $22.05.
    Caterpillar Form 10-K for fiscal 2025 - financial statements and notes: profit, per-share data, cash flow, balance sheet, debt, dividends and credit risk. — FY2025 · publ. 13 February 2026 · source ↗
  14. ReportedSecond-quarter sales and revenues were $20,543 million, up 24%, the first quarter above $20 billion in the company's history, and the backlog reached about $72.1 billion.
    Caterpillar second-quarter 2026 results release, Form 8-K exhibit 99.1 - consolidated results, cash deployment and the CEO's statement. — Q2 2026 · publ. 4 August 2026 · source ↗
  15. ReportedSecond-quarter sales and revenues were $20,543 million, up 24%, the first quarter above $20 billion in the company's history, and the backlog reached about $72.1 billion.
    Caterpillar Form 10-Q for the quarter ended 30 June 2026 - backlog, outlook, tariffs, dealer inventory, balance sheet and the RPMGlobal acquisition - MD&A: order backlog, dealer inventory, tariffs, IEEPA recoveries and the 2026 outlook. — Q2 2026 · publ. 5 August 2026 · source ↗
  16. ReportedThe company returned $5.2 billion in buybacks and $2.7 billion in dividends in 2025 and has raised its dividend for 32 consecutive years.
    Caterpillar fourth-quarter and full-year 2025 results release, Form 8-K exhibit 99.1 - capital returned and Rail inventory write-downs. — FY2025 · publ. 29 January 2026 · source ↗
  17. ReportedThe company returned $5.2 billion in buybacks and $2.7 billion in dividends in 2025 and has raised its dividend for 32 consecutive years.
    Caterpillar Form 8-K exhibit 99.1, 10 June 2026 - quarterly dividend raised 8% to $1.63; higher annual dividends for 32 consecutive years. — June 2026 · publ. 10 June 2026 · source ↗
  18. ReportedThe shares were $805.25 on 24 September 2026, a market value of $370.15 billion, about 34 times trailing earnings.
    Caterpillar (CAT) market data - $805.25 at the close on 24 September 2026, market cap $370.15B, 52-week range 459.58-1,073.46, dividend $6.52 (0.81%). — September 2026 · publ. 24 September 2026 · source ↗
  19. Moat Explorer calcThe shares were $805.25 on 24 September 2026, a market value of $370.15 billion, about 34 times trailing earnings.
    Moat Explorer calculation from Caterpillar's reported figures ($ millions unless stated). Dealers: 41 + 109 = 150 (2025); 43 + 113 = 156 (2022); 46 + 119 = 165 (2019). Segment margins (segment profit / total segment sales, FY2025 10-K basis): Construction Industries 6,975 / 27,418 = 25.4% (2023), 6,165 / 25,455 = 24.2% (2024), 4,675 / 25,060 = 18.7% (2025); Resource Industries 2,836 / 13,669 = 20.7%, 2,538 / 12,471 = 20.4%, 1,988 / 12,474 = 15.9%; Power & Energy 4,936 / 28,001 = 17.6%, 5,736 / 28,854 = 19.9%, 6,418 / 32,201 = 19.9%; Financial Products 909 / 3,785 = 24.0%, 932 / 4,053 = 23.0%, 966 / 4,220 = 22.9%, 590 / 3,044 = 19.4% (2020). Recast (Rail in Resource Industries): 2,151 / 15,920 = 13.5% (2025), 2,676 / 15,745 = 17.0% (2024); Power & Energy 6,256 / 28,624 = 21.9%. Construction Industries H1 2026 3,482 / 15,507 = 22.5%. Implied Rail: sales 15,920 - 12,474 = 3,446 and profit 2,151 - 1,988 = 163, 163 / 3,446 = 4.7% (2025); sales 15,745 - 12,471 = 3,274 and profit 2,676 - 2,538 = 138 (2024). Power generation 10,275 / 3,963 = 2.6 times (2020-2025); 10,275 / 67,589 = 15.2% of sales and revenues; three times the 2024 base 7,756 x 3 = 23,268. Oil and gas 7,502 / 27,143 = 27.6% of Power & Energy external sales; 7,502 / 3,701 = 2.0 times. Services 24 / 67.589 = 35.5%; (30 / 24)^(1/5) - 1 = 4.6% a year. Backlog 72.1 / 30.0 = 2.4 times; long end 29.2 / 19.3 - 1 = 51%. Customer advances 4,777 / 3,314 - 1 = 44%. Price realization H1 2026 426 + 595 = 1,021; 2024 against 2023 1,238 / 5,596 = 22%. Volume H1 2026 2,318 + 3,113 = 5,431. Capex excluding leased equipment 2,821 / 1,597 - 1 = 77%. Pre-tax return on average MP&E net assets (MP&E adjusted operating profit / average MP&E net assets): 4,675 / 20,070 = 23.3% (2020), 6,453 / 19,662 = 32.8% (2021), 8,656 / 19,841 = 43.6% (2022), 13,439 / 19,450 = 69.1% (2023), 13,246 / 19,999 = 66.2% (2024), 11,327 / 21,417 = 52.9% (2025). Profit 8,884 / 6,147 - 1 = 44.5% and diluted EPS 18.81 / 10.26 - 1 = 83.3% (2018-2025). Dividends paid 2,749 / profit 8,884 = 30.9%. Return on average equity 8,884 / ((19,494 + 21,318) / 2) = 43.5%. Price to earnings at year end (market capitalisation $bn / profit $bn): 39.57 / 2.512 = 15.8 (2015); 93.75 / 0.754 = 124.3 (2017); 74.98 / 6.147 = 12.2 (2018); 81.62 / 6.093 = 13.4 (2019); 98.88 / 2.998 = 33.0 (2020); 111.83 / 6.489 = 17.2 (2021); 124.67 / 6.705 = 18.6 (2022); 150.52 / 10.335 = 14.6 (2023); 175.14 / 10.792 = 16.2 (2024); 268.09 / 8.884 = 30.2 (2025); trailing 370.15 / 10.844 = 34.1. Share price 805.25 / 1,073.46 - 1 = -25%. Trailing twelve months to June 2026: sales and revenues 67,589 - 30,818 + 37,958 = 74,729; profit 8,884 - 4,182 + 6,142 = 10,844; diluted EPS 18.81 - 8.82 + 13.23 = 23.22. Debt at 30 June 2026 5,046 + 35 + 8,026 + 10,655 + 21,384 = 45,146; at 31 December 2025 5,514 + 35 + 7,085 + 10,678 + 20,018 = 43,330; Financial Products debt 5,514 + 7,085 + 20,018 = 32,617, 32,617 / 43,330 = 75%. Financial Products segment assets 41,476 / 64,392 = 64%. Downturns: 38,537 / 47,011 - 1 = -18% (2016); 41,748 / 53,800 - 1 = -22% (2020). Construction Industries Asia/Pacific external sales 3,783 / 4,390 - 1 = -14%; North America share 14,064 / 24,800 = 57%. Shares of 2025 sales and revenues of 67,589: Construction Industries 24,800 = 36.7%; Resource Industries 12,185 = 18.0%; Power & Energy 27,143 = 40.2%; Financial Products 4,220 = 6.2%; Construction and Resource together (24,800 + 12,185) / 67,589 = 54.7%. Segment external sum 27,143 + 24,800 + 12,185 + 4,220 = 68,348 against 67,589 (difference 759, All Other +46 and corporate items -805); 2024 25,344 + 12,100 + 24,088 + 4,053 = 65,585 against 64,809 (776); 2023 27,294 + 13,329 + 23,355 + 3,785 = 67,763 against 67,060 (703). Power & Energy share 27,143 / 68,348 = 39.7%. 2030 range: 64,809 x 1.06^6 = 91,933; 64,809 x 1.09^6 = 108,691. RPMGlobal 733 / 67,589 = 1.1%. Autonomous trucks 827 / 690 - 1 = 20%; 690 x 3 = 2,070. Tech-enabled machines 500 / 191 = 2.6 times. Latin America employees 22,300 - 19,700 = 2,600 (EAME 16,700 - 15,900 = 800; Asia/Pacific 26,900 - 25,300 = 1,600; North America 52,100 - 52,000 = 100). Profit 2025 8,884 / 10,792 - 1 = -17.7%. Cost of goods sold 44,752 / 40,199 - 1 = 11.3%. Financial Products segment assets 41,476 / 36,925 - 1 = 12.3%. Power generation growth 7,756 / 6,362 - 1 = 21.9%, 10,275 / 7,756 - 1 = 32.5%. Engine capex at 4% to 5% of 2025 machinery, power and energy sales of 63,980: 2,559 to 3,199. Earnings implied by forward and trailing P/E 34.70 / 28.01 - 1 = 24%. Analyst target 975.61 / 805.25 - 1 = 21%. Segment capex 2025: Construction Industries 358 + Resource Industries 626 = 984, against Financial Products 1,341. Power & Energy Q2 2026 external sales: North America 4,182 against other regions 373 + 1,348 + 892 = 2,613 - valuation, balance sheet, capital returns and returns on capital. — 2015-2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in Caterpillar's Forms 10-K, 10-Q, results releases, the March 2026 recast exhibit, the February 2026 Barclays deck, the earnings calls and market data; operands shown in the source line.
  20. ReportedJoe Creed, who joined Caterpillar in 1997 and ran Energy & Transportation before becoming chief operating officer, was appointed chief executive on 1 May 2025 and became chairman on 1 April 2026, when Jim Umpleby retired after 45 years of service, eight of them as chief executive.
    Caterpillar Form 8-K exhibit 99.1, 6 January 2026 - Joe Creed elected Chairman effective 1 April 2026; Jim Umpleby to retire. — January 2026 · publ. 6 January 2026 · source ↗
  21. ReportedKyle Epley became chief financial officer on 1 May 2026, succeeding Andrew Bonfield after eight years.
    Caterpillar Form 8-K exhibit 99.1, 8 April 2026 - Kyle Epley appointed chief financial officer effective 1 May 2026; Andrew Bonfield to retire. — April 2026 · publ. 8 April 2026 · source ↗
  22. ReportedThere is no controlling shareholder: Vanguard held 10.06% of the shares, State Street 7.4% and BlackRock 6.6%.
    Caterpillar 2026 proxy statement (DEF 14A) - holders of more than 5% of the shares. — 2026 · publ. 2026 · source ↗
  23. ReportedAt the end of 2025, about 51,600 of the 118,000 employees were in the United States, and 7,972 hourly production workers there were covered by collective bargaining agreements, including with the UAW.
    Caterpillar Form 10-K for fiscal 2025 - Item 1 business: history, products, Cat Financial, employees and order backlog. — FY2025 · publ. 13 February 2026 · source ↗
  24. ReportedAt the end of 2025, about 51,600 of the 118,000 employees were in the United States, and 7,972 hourly production workers there were covered by collective bargaining agreements, including with the UAW.
    Caterpillar Form 10-K for fiscal 2025 - Item 1 business: history, products, Cat Financial, employees and order backlog. — FY2025 · publ. 13 February 2026 · source ↗
  25. ReportedThe recordable injury frequency rate was 0.41 in 2025, against 0.43 in 2024.
    Caterpillar Form 10-K for fiscal 2025 - Item 1 business: history, products, Cat Financial, employees and order backlog. — FY2025 · publ. 13 February 2026 · source ↗
  26. Moat Explorer calcThe number that would falsify it is return on invested capital through the next downturn, 16.8% in 2025; if it falls below 10% again, as in 2020, the moat protects Caterpillar's share of the cycle but not its returns.
    Moat Explorer calculation, a scratch copy of tools_roic_edgar.py on SEC EDGAR XBRL for CIK 18230: return on invested capital 5.9% (2015), 1.7% (2016), 7.0% (2017), 15.4% (2018), 15.0% (2019), 7.8% (2020), 12.5% (2021), 13.9% (2022), 22.9% (2023), 22.3% (2024), 16.8% (2025). Operating profit (OperatingIncomeLoss): 3,785 (2015), 1,162 (2016), 4,460 (2017), 8,293 (2018), 8,290 (2019), 4,553 (2020), 6,878 (2021), 7,904 (2022), 12,966 (2023), 13,072 (2024), 11,151 (2025) $ millions. — 2015-2025 · publ. September 2026 · source ↗
    Method: NOPAT (operating income x (1 - effective tax rate, clamped 0-35%)) divided by average operating invested capital (total assets less current liabilities less cash), from SEC EDGAR XBRL via a scratch copy of tools_roic_edgar.py with CIK 18230 added. For 2015-2019, where Caterpillar's XBRL carries no year-end CashAndCashEquivalentsAtCarryingValue, cash and short-term investments is used; the repo method alone gives the same 2020-2025 values. Invested capital includes about $25bn of Cat Financial finance receivables.
Sources
Generated September 25, 2026