CompetitorsNarrow moat

Caterpillar (CAT) — moat facet

Caterpillar faces a different rival in every business, and wins most clearly where supply is short and least where machines are plentiful.

Caterpillar's annual report does not rank its competitors or give market shares; it lists them, arena by arena. In construction it names twelve global rivals, including CASE, Deere, Hitachi, Komatsu, Kubota, Sany and Volvo Construction Equipment, plus regional Chinese makers1. In mining it names Deere, Epiroc, Hitachi, Komatsu, Liebherr, Sandvik and Volvo on the surface, and Epiroc, Komatsu and Sandvik underground2. In power it names Cummins, Deutz, Rolls-Royce Power Systems and Siemens Energy as principal global competitors3; in rail, Wabtec, Greenbrier, Voestalpine, Vossloh, Alstom and Siemens Mobility4.

Segment profit margin by business, 2025 (%)Power & Energy19.9Construction Industries18.7Resource Industries15.9Rail (implied)4.7Caterpillar Form 10-K FY2025 and March 2026 recast; margins calculated
Strongest in power, weakest in rail.

The four competitors on these pages are four different kinds of relationship. Komatsu is the rival met in every arena. The Chinese makers are price challengers strongest at home. The power rivals and the packagers are competing for customers Caterpillar cannot yet serve. And the rail field is where Caterpillar's position has been weakest by its own accounting.

The company's segment margins say where it stands against them. In 2025 Construction Industries earned 18.7%, Resource Industries 15.9% and Power & Energy 19.9% on the annual report's basis56; the rail business folded into Resource Industries from 2026 earned about 4.7%7.

The rivals are not all trying the same thing. Caterpillar's report notes that the construction field has some global competitors and many regional and specialised local ones8, while in power a separate set of companies are packagers who buy engines and sell finished systems9. That spread is why no single rival can threaten the whole company, and why each business has to be judged against its own field.

Caterpillar does not report market shares, so the scorecard is indirect. Its segment profit in 2025 was $4,675 million in construction, $1,988 million in resource industries and $6,418 million in power and energy10, and each can be set against the named rivals' own reports.

Caterpillar's own risk factors warn that its share of industry sales "could be reduced due to aggressive pricing"11. The single figure that best measures the contest is Construction Industries' price realization, the line most exposed to rivals: minus $1,136 million in 202512 and plus $309 million in the second quarter of 202613. A return to sustained negative price with volume rising would say the rivals are setting it.

Moat trajectory: Holding steady

Construction price back to positive in 2026; power demand outruns everyone's supply.

The number that tests this moat
Reported
Construction Industries price realization, latest quarter
+$309M (Q2 2026) after -$1,136M for 2025

The line most exposed to rivals; sustained negative price with rising volume would mean rivals are setting it.

Source: Caterpillar Q2 2026 results release ↗
Dig deeper
DIG DEEPER 01
Komatsu: The Rival in Every Arena
Komatsu is the one rival Caterpillar names in construction, surface mining and underground mining alike.
DIG DEEPER 02
LiuGong, Sany, SDLG, Shantui and XCMG: The Challengers at Home
Caterpillar's construction sales in Asia/Pacific fell about 14% from 2023 to 2025, where six Chinese rivals compete on price.
DIG DEEPER 03
The Power Rivals and the Packagers
In power, Caterpillar competes with engine makers and with packagers who may buy engines from it, and the winner is whoever can deliver first.
DIG DEEPER 04
Wabtec and the Rail Field
Caterpillar's rail business earns about 4.7% on $3.4 billion of sales, after a $925 million write-down, against six named rivals.
References
  1. ReportedIn construction it names twelve global rivals, including CASE, Deere, Hitachi, Komatsu, Kubota, Sany and Volvo Construction Equipment, plus regional Chinese makers.
    Caterpillar Form 10-K for fiscal 2025 - Item 1 business: competitive environment by segment. — FY2025 · publ. 13 February 2026 · source ↗
  2. ReportedIn mining it names Deere, Epiroc, Hitachi, Komatsu, Liebherr, Sandvik and Volvo on the surface, and Epiroc, Komatsu and Sandvik underground.
    Caterpillar Form 10-K for fiscal 2025 - Item 1 business: competitive environment by segment. — FY2025 · publ. 13 February 2026 · source ↗
  3. ReportedIn power it names Cummins, Deutz, Rolls-Royce Power Systems and Siemens Energy as principal global competitors; in rail, Wabtec, Greenbrier, Voestalpine, Vossloh, Alstom and Siemens Mobility.
    Caterpillar Form 10-K for fiscal 2025 - Item 1 business: competitive environment by segment. — FY2025 · publ. 13 February 2026 · source ↗
  4. ReportedIn power it names Cummins, Deutz, Rolls-Royce Power Systems and Siemens Energy as principal global competitors; in rail, Wabtec, Greenbrier, Voestalpine, Vossloh, Alstom and Siemens Mobility.
    Caterpillar Form 10-K for fiscal 2025 - Item 1 business: competitive environment by segment. — FY2025 · publ. 13 February 2026 · source ↗
  5. ReportedIn 2025 Construction Industries earned 18.7%, Resource Industries 15.9% and Power & Energy 19.9% on the annual report's basis; the rail business folded into Resource Industries from 2026 earned about 4.7%.
    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 ↗
  6. Moat Explorer calcIn 2025 Construction Industries earned 18.7%, Resource Industries 15.9% and Power & Energy 19.9% on the annual report's basis; the rail business folded into Resource Industries from 2026 earned about 4.7%.
    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.
  7. Moat Explorer calcIn 2025 Construction Industries earned 18.7%, Resource Industries 15.9% and Power & Energy 19.9% on the annual report's basis; the rail business folded into Resource Industries from 2026 earned about 4.7%.
    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.
  8. ReportedCaterpillar's report notes that the construction field has some global competitors and many regional and specialised local ones, while in power a separate set of companies are packagers who buy engines and sell finished systems.
    Caterpillar Form 10-K for fiscal 2025 - Item 1 business: competitive environment by segment. — FY2025 · publ. 13 February 2026 · source ↗
  9. ReportedCaterpillar's report notes that the construction field has some global competitors and many regional and specialised local ones, while in power a separate set of companies are packagers who buy engines and sell finished systems.
    Caterpillar Form 10-K for fiscal 2025 - Item 1 business: competitive environment by segment. — FY2025 · publ. 13 February 2026 · source ↗
  10. ReportedIts segment profit in 2025 was $4,675 million in construction, $1,988 million in resource industries and $6,418 million in power and energy, and each can be set against the named rivals' own reports.
    Caterpillar Form 10-K for fiscal 2025 - Item 1 business: competitive environment by segment. — FY2025 · publ. 13 February 2026 · source ↗
  11. ReportedCaterpillar's own risk factors warn that its share of industry sales "could be reduced due to aggressive pricing".
    Caterpillar Form 10-K for fiscal 2025 - Item 1A risk factors. — FY2025 · publ. 13 February 2026 · source ↗
  12. ReportedThe single figure that best measures the contest is Construction Industries' price realization, the line most exposed to rivals: minus $1,136 million in 2025 and plus $309 million in the second quarter of 2026.
    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. ReportedThe single figure that best measures the contest is Construction Industries' price realization, the line most exposed to rivals: minus $1,136 million in 2025 and plus $309 million in the second quarter of 2026.
    Caterpillar second-quarter 2026 results release, Form 8-K exhibit 99.1 - segment results and Cat Financial credit. — Q2 2026 · publ. 4 August 2026 · source ↗
Sources
Generated September 25, 2026