What it does
Caterpillar states that its Machinery, Power & Energy business designs, manufactures and markets construction, mining and quarry equipment; engines, generator sets, turbines, locomotives and related systems; parts; and services. Construction Industries serves infrastructure and building construction uses, while Resource Industries serves mining, heavy construction, and quarry and aggregates customers. Power & Energy serves oil and gas, power generation, marine, rail and industrial applications. Its Financial Products operations provide financing and insurance-related services, principally through Cat Financial and Insurance Services.
Source: Caterpillar Inc. Form 10-K for fiscal 2025, Item 1 — sec.gov
How it makes money
The company states that it operates through five operating segments, four of which are reportable. The segment table below provides the revenue detail. Machinery, Power & Energy generates sales from its equipment, engines, power systems, parts and related offerings through Construction Industries, Resource Industries and Power & Energy. Financial Products supports product and service sales while generating financing income: Cat Financial offers customer loans, revolving charge accounts and leases, plus dealer inventory, rental-fleet and working-capital financing. The filing also describes insurance and brokerage activities within Financial Products.
Source: Caterpillar Inc. Form 10-K for fiscal 2025, Item 1 — sec.gov
Customers and geography
The filing describes customers across construction, rental, quarry and aggregates, mining, oil and gas, electric power, marine, rail and industrial applications. Caterpillar distributes machines principally through 41 U.S. dealers and 109 dealers outside the U.S., serving 190 countries. It sells some turbines and locomotives directly to end customers. Cat Financial provides customer and dealer financing worldwide and has a significant portion of its activity in North America, with additional offices and subsidiaries in Latin America, Asia/Pacific, Europe and Africa. The company also owns and operates a dealership in Japan covering approximately 80% of that market.
Source: Caterpillar Inc. Form 10-K for fiscal 2025, Item 1 — sec.gov
Competition
The filing states that Caterpillar products and services are sold worldwide into highly competitive markets, with competition based on product performance, customer service, quality and price. Named construction-equipment competitors include CASE, Deere Construction & Forestry, Komatsu, Sany Heavy Industry and Volvo Construction Equipment. For Resource Industries, the filing names Epiroc, Hitachi Construction Machinery, Liebherr and Sandvik, among others. Power & Energy competitors named include Cummins, Deutz, Rolls-Royce Power Systems and Siemens Energy. Cat Financial competes with commercial banks, finance and leasing companies, including Wells Fargo Equipment Finance, Banc of America Leasing & Capital and BNP Paribas Leasing Solutions.
Source: Caterpillar Inc. Form 10-K for fiscal 2025, Item 1 — sec.gov
Key risks
The filing highlights the following risks:
- Its business and served industries are highly sensitive to global and regional economic conditions.
- Success depends on the ability to develop, produce and market quality products that meet customer needs.
- Global financial-market disruption or volatility could limit liquidity for the company or its customers, dealers and suppliers.
- Market developments could reduce financing demand and worsen payment patterns, increasing Cat Financial delinquencies, defaults, write-offs and credit-loss provisions.
- Global operations are subject to a wide range of trade and anti-corruption laws and regulations.
- Supply-chain disruptions or increased demand can create parts and component constraints across some products.
Source: Caterpillar Inc. Form 10-K for fiscal 2025, Item 1 and Item 1A — sec.gov
People and operations
As of December 31, 2025, the company employed 118,000 full-time people, including approximately 66,400 outside the United States and approximately 51,600 in the United States. The filing states that employment levels are aligned with business needs. It also reports 7,972 U.S. hourly production employees covered by collective bargaining agreements. Operationally, the company sources raw materials and manufactured components domestically and internationally, machines and assembles some components in its facilities, and uses global strategic sourcing models. It distributes machines principally through its worldwide dealer network.
Source: Caterpillar Inc. Form 10-K for fiscal 2025, Item 1 — sec.gov