# Caterpillar Inc. (CAT)

> Makes construction and mining machines, engines and power systems, locomotives, and finances equipment purchases through its finance arm and dealers.

- Exchange: NYSE · Sector: Industrials · Industry: Farm and Heavy Construction Machinery
- Headquarters: Irving, Texas (from outside knowledge; not stated in the supplied filings)
- Founded: 1925
- Employees: 118,000 (December 31, 2025)
- SEC CIK: 0000018230 ([filings on EDGAR](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000018230))
- Full page: https://inspectstocks.com/stocks/cat
- Data as of: price 2026-09-29; newest filing used 2026-08-05; latest fiscal period ended 2026-06-30

## Grade

**C+** on the growth-and-cash rubric, 3 of 5 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Revenue growing overall | failed | $55.9B | $64.8B |
| Revenue growing recently | failed | $55.9B | $67.6B |
| Free cash flow positive | passed | $10.7B |  |
| Free cash flow growing overall | passed | $10.7B | $8.6B |
| Free cash flow growing recently | passed | $10.7B | $8.9B |

Business quality (the + / − mark): 6 of 6 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Profitable | passed | 19.4% |  |
| Healthy profit margin | passed | 19.4% |  |
| Strong operating margin | passed | 23.4% |  |
| Good return on equity | passed | 50.9% |  |
| Debt under control | passed | 1.73 |  |
| Turns sales into cash | passed | 19.1% |  |

How the grade works: the letter counts failed checks (none → A, one → B, two → C, three → D, four or more → F). It is built from SEC filings only — the share price never enters it — and describes the business, not whether the stock is worth buying.

## Key figures

In US dollars, as filed.

| Measure | Value |
| --- | --- |
| Revenue, trailing twelve months | $55.9B |
| Net income, trailing twelve months | $10.8B |
| Free cash flow, trailing twelve months | $10.7B |
| Net margin | 19.4% |
| Operating margin | 23.4% |
| Return on equity | 50.9% |
| Debt to equity | 1.73 |
| Diluted EPS, trailing twelve months | $23.24 |
| Share price | $826.73 |
| Market value | $380B |
| Price / earnings | 35.6x |
| Price / sales | 6.8x |

## What the business does

Caterpillar makes construction and mining equipment, engines and power-generation systems, turbines, and diesel-electric locomotives. It sells most machines through independent dealers, who also sell parts and service the equipment; some products are sold directly to customers. Its finance arm provides loans and leases to equipment buyers and dealers. On its latest earnings call, management described a dealer-owned rental joint venture for large construction projects and the acquisition of Skycatch, which adds mining data technology.

### How it makes money

- **Power & Energy: engines, generator sets, turbines, related services, and rail products** (36.8% (six months ended June 30, 2026)) — Revenue comes from selling engines, generator sets, turbines, locomotives, parts, and related services to customers and original equipment manufacturers, as well as sales to Caterpillar's other segments.
- **Construction Industries: construction machinery, parts, and services** (37.4% (six months ended June 30, 2026)) — Revenue comes mainly from machinery sold to dealers, who sell it to contractors, rental companies, and other customers; parts and service also bring in revenue.
- **Resource Industries: mining, heavy construction, and quarry equipment and services** (20.4% (six months ended June 30, 2026)) — Revenue comes from selling equipment, components, parts, work tools, technology, and services to mining, quarry, and heavy construction customers.
- **Financial Products: customer and dealer financing and insurance** (5.4% (six months ended June 30, 2026)) — Cat Financial earns financing income from equipment loans and leases and from financing dealer inventories; the insurance businesses earn income from insurance and related services.

### Products

- **Construction machinery** — Machines such as excavators, wheel loaders, bulldozers, graders, backhoe loaders, compactors, and road-building equipment, plus related parts, work tools, and services.
- **Mining and quarry equipment** — Large mining trucks, shovels, drills, underground mining vehicles, loaders, and other equipment used to extract and move minerals, along with parts, work tools, and fleet technology.
- **Engines, generator sets, and power systems** — Engines and generator sets that supply power for utilities, industrial customers, marine uses, oil and gas operations, and Caterpillar machinery.
- **Turbines and compressors** — Industrial gas turbines, gas compressors, and related services for power generation and oil and gas customers.
- **Rail products** — Diesel-electric and hybrid locomotives, components, and other rail-related products and services.
- **Financing and insurance** — Loans and leases for customers buying or using equipment, financing for dealer inventories, revolving accounts for parts and services, and insurance services.

### Customers

- Construction and infrastructure contractors, who generally buy machines through Caterpillar dealers.
- Equipment rental companies and dealer-owned rental fleets, which buy machines to rent to contractors and other users.
- Mining, quarry, and aggregate operators, who buy machines and related parts, maintenance, and fleet services.
- Oil and gas companies and service providers, who buy engines, turbines, compressors, parts, and related services.
- Utilities, data center developers, industrial businesses, and marine customers, who buy engines, generator sets, turbines, and power systems.
- Caterpillar dealers and other manufacturers, which buy equipment or engines; dealers can also obtain inventory financing from Cat Financial.

### Competitors

- Deere & Company (through Deere Construction & Forestry) (DE) — Construction and forestry machinery, and some mining applications.
- Komatsu Ltd. (KMTUY) — Construction and mining equipment.
- Cummins Inc. (CMI) — Engines and power-generation equipment.
- Epiroc AB (EPOKY) — Surface and underground mining equipment.
- Wabtec Corporation (WAB) — Locomotives and rail-related products and services.
- Volvo Group (through Volvo Construction Equipment) (VLVLY) — Construction and mining equipment.

### What it depends on

- Most machine sales and much of the product servicing depend on Caterpillar's independent dealer network and dealers' decisions about inventory and rental fleets.
- Manufacturing depends on suppliers of steel, castings, forgings, finished parts, and other components; the company reports that supply constraints can affect some products.
- Demand depends on construction, mining, oil and gas, power generation, and rail activity, which can vary with regional economic conditions and commodity markets.
- Cat Financial depends on equipment sales, customers' willingness and ability to borrow, and access to funding; its financing and insurance activities are also subject to government rules.

### What could go wrong

- A downturn in regional economies or in construction, mining, oil and gas, or power markets can reduce demand for Caterpillar equipment and services.
- Supplier interruptions, shortages of materials or labor, and changes in material costs or trade policies can disrupt production, raise costs, or affect the company's ability to deliver products.
- Changing emissions rules can require costly product and manufacturing changes; Cat Financial can also be affected by customer payment problems, interest rates, and funding conditions.

## More on this company

- [Overview](https://inspectstocks.com/stocks/cat)
- [Financial statements](https://inspectstocks.com/stocks/cat/financials)
- [Competitors](https://inspectstocks.com/stocks/cat/peers)
- [Earnings](https://inspectstocks.com/stocks/cat/earnings)

---

Source: InspectStocks, built from the company’s own SEC filings. This describes a business — it is not investment advice and not a recommendation to buy or sell anything.