10-K 0000018230-26-000008 (2026-02-13) vs 10-K 0000018230-25-000008 (2025-02-14)
| Section | Compared text | Words now | Changed |
|---|
| Risk Factors | Item 1A | 7,798 |
2.4% |
| MD&A | Item 7 | 12,988 |
20.7% |
| Legal Proceedings | Item 3, via Note 22 – Environmental and legal matters | 531 |
0.0% |
| Accounting Policies | Item 8, Note 1 – Operations and summary of significant accounting policies | 1,975 |
11.3% |
The redline: what was cut and what was added
In each section, the paragraph that changed most, marked against last year's 10-K:
cut words struck through, new words highlighted and underlined.
MD&A 246 words changed in this paragraph; it is 39% similar to last year's version.
In Energy Power & Transportation, demand is expected to remain strong Energy, we anticipate growth in Power Generation, as we expect growth Generation for both reciprocating engines and turbines and turbine-related services in 2025 as compared to 2024. Overall strength in Power Generation, for both prime and backup power applications, continues to be 2026, driven by increasing energy demands demand to support data center growth build-out related to cloud computing and generative artificial intelligence Artificial Intelligence (AI). Through continued focus on improving manufacturing efficiencies, along Additionally, we are starting to see orders for prime power trend higher as data center customers look for alternative power solutions to keep pace with initial stages of our investment their growth. After reaching record levels in 2025, Oil & Gas is expected to increase large engine output capability, we expect growth in reciprocating engines for Power Generation in 2025. We also expect growth in turbines and turbine-related services for Power Generation, driven by increased customer demand. For Oil and Gas, we expect see moderate growth in 2025 as compared 2026. Reciprocating engine sales are expected to 2024. We expect reciprocating engines and services to be slightly down increase, driven by strong demand in 2025 due to continuing capital discipline by our customers, industry consolidation and efficiency improvements in our customers’ operations. We expect growth for turbines and turbine-related services in Oil & Gas in 2025 as compared to 2024. gas compression applications. For turbines and turbine-related services used in Oil & Gas applications, we expect another year of strong sales in 2026 comparable to our record 2025 performance as backlog remains strong, and we see healthy, with continued healthy solid order and inquiry activity. Demand for products in Industrial applications in 2025 is expected to remain at a relatively low level, similar to 2024. grow moderately in 2026 as we see continued recovery from previous lows. In Transportation, we anticipate growth in 2025, driven by rail services. services and locomotive deliveries in 2026 compared to 2025.
Source: Item 7, 10-K 0000018230-26-000008 vs Item 7, 10-K 0000018230-25-000008
Risk Factors 101 words changed in this paragraph; it is 70% similar to last year's version.
We maintain a number of credit facilities to support general corporate purposes (facilities) and have issued debt securities to manage liquidity and fund operations (debt securities). The agreements relating to a number of the facilities and the debt securities contain certain restrictive covenants applicable to us and certain subsidiaries, including Cat Financial. These covenants include maintaining a minimum consolidated net worth (defined as the consolidated shareholder’s equity including preferred stock but excluding the pension and other post-retirement benefits balance within accumulated other comprehensive income (loss)), limitations on the incurrence of liens and sales and leaseback transactions, restrictions on the transfer of certain property and certain restrictions on consolidation and merger. Cat Financial has also agreed under certain of these agreements not to exceed a certain leverage ratio (consolidated debt to consolidated net worth, calculated (1) on a monthly basis as the average of the leverage ratios determined on the last day of each of the six preceding calendar months and (2) at each December 31), to maintain a minimum interest coverage ratio (calculated as (1) profit excluding income taxes, interest expense and net gain (loss) from interest rate derivatives to (2) interest expense calculated at the end of each fiscal quarter for the prior four consecutive fiscal quarter period) and not to terminate, amend or modify its support agreement with us.
Source: Item 1A, 10-K 0000018230-26-000008 vs Item 1A, 10-K 0000018230-25-000008
Accounting Policies 43 words changed in this paragraph; it is 67% similar to last year's version.
Income tax reporting (ASU 2023-09) — In December 2023, the FASB Financial Accounting Standards Board (FASB) issued accounting guidance to expand the annual disclosure requirements for income taxes, primarily related to the rate reconciliation and income taxes paid. The expanded disclosures are were effective for our the year ending December 31, 2025 2025, and can be are being applied prospectively or retrospectively. We are in the process of evaluating the effect of this new guidance on the related disclosures. prospectively. See Note 6, Income taxes, for additional information.
Source: Item 8, Note 1 – Operations and summary of significant accounting policies, 10-K 0000018230-26-000008 vs Item 8, Note 1 – Operations and summary of significant accounting policies, 10-K 0000018230-25-000008
Every change, by type
Sentences and paragraphs of CAT's Risk Factors and MD&A, 10-K 2026-02-13 against 10-K 2025-02-14.
Each links to the text at sec.gov.
Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier
(may, could, will, not, significant, material…). A year or date rolling forward is not counted.
The full word list
adverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, would
RewordedRisk Factors
Increases in the prices of such commodities would increase our costs, negatively impacting our business, results of operations and financial condition if we are unable to fully offset the effect of these increased costs through price increases, productivity improvements, cost reduction programs or hedging programs.
Read it in 10-K 2026-02-13 at sec.gov ↗
AddedMD&A
In Resource Industries, sales of equipment to end users is expected to increase in 2026 as compared to 2025, primarily driven by rising demand for copper and gold, and positive growth trends in heavy construction and quarry and aggregates. In mining, most key commodities remain above investment thresholds, and customer product utilization is high while the age of the fleet remains elevated. With modest increases in commodity prices projected in 2026, we expect rebuild activity to increase slightly compared to 2025.
Read it in 10-K 2026-02-13 at sec.gov ↗
AddedMD&A
Our expectations assume the Rail division within Power & Energy, as was the case through year-end 2025. In March 2026, we will file a Form 8-K recasting historical periods to reflect the movement of the Rail division to Resource Industries. This will establish an appropriate baseline for evaluating future segment-level performance and expectations. If necessary, we will also update any segment specific forward-looking assumptions impacted by this change. There will be no impact on the enterprise-wide assumptions due to the Rail division recast.
Read it in 10-K 2026-02-13 at sec.gov ↗
AddedMD&A
For the full-year 2026, we anticipate sales and revenues to grow around the top end of our 5 to 7 percent compound annual growth rate (CAGR) target, as compared to 2025. The strong backlog coupled with healthy end markets supports our expectations for sales volume growth in all three primary segments, as well as favorable price realization of about 2 percent of sales and revenues. We expect machine dealer inventory to increase in 2026 and offset the $500 million decrease in 2025. Services revenues are also expected to grow in 2026 as compared to 2025.
Read it in 10-K 2026-02-13 at sec.gov ↗
AddedMD&A
Based on the incremental tariffs announced in 2025 and in place by January 29, 2026, we expect the impact from tariffs to be around $2.6 billion in 2026, which is $800 million higher than incurred in 2025. If we do not take the mitigating actions we plan to take in 2026, the impact from tariffs could be around 20 percent higher. We remain confident that we will manage the impact of tariffs over time.
Read it in 10-K 2026-02-13 at sec.gov ↗
AddedMD&A
Please see a reconciliation of GAAP to non-GAAP financial measures on pages 48-49.
Read it in 10-K 2026-02-13 at sec.gov ↗
AddedMD&A
•Industrial – Sales increased in EAME, partially offset by decreased sales in North America, Latin America and Asia/Pacific.
Read it in 10-K 2026-02-13 at sec.gov ↗
AddedMD&A
We intend to utilize our liquidity and debt capacity to fund initiatives targeted to drive long term profitable growth focused on our three strategic growth pillars. Our strategic growth pillars are commercial excellence, advanced technology leadership and transforming how we work. These pillars work together to drive sustainable growth, innovation and operational efficiency for Caterpillar and our customers.
Read it in 10-K 2026-02-13 at sec.gov ↗
AddedMD&A
On February 3, 2026, the Federal Court of Australia approved Caterpillar's acquisition of RPMGlobal Holdings Limited, an Australian based software company. The transaction is expected to close in the final two weeks of February with a purchase price of approximately $790 million, excluding cash acquired. RPMGlobal is a leading provider of mining software solutions with deep domain expertise in mining technology enablement and data-driven software solutions at every stage of the mining lifecycle.
Read it in 10-K 2026-02-13 at sec.gov ↗
AddedMD&A
4Reclassification of Financial Products’ other assets to property, plant and equipment.
Read it in 10-K 2026-02-13 at sec.gov ↗
RemovedMD&A
Our results continue to reflect the benefit of the diversity of our end markets.
Read it in 10-K 2025-02-14 at sec.gov ↗
RemovedMD&A
continue into 2025. We anticipate China to remain at relatively low levels for the excavator industry above 10-tons. In EAME, we anticipate that weak economic conditions in Europe will continue, and we anticipate a healthy level of construction activity in Africa and in the Middle East in 2025. Construction activity in Latin America is expected to moderately decline in 2025 as compared to 2024. We also anticipate the ongoing benefit of our services initiatives will positively impact Construction Industries in 2025.
Read it in 10-K 2025-02-14 at sec.gov ↗
RemovedMD&A
In Resource Industries, we anticipate lower sales of equipment to end users in 2025 compared to 2024, partially offset by higher services revenues, including robust rebuild activity. Customers continue to display capital discipline, although key commodities remain above investment thresholds. Customer product utilization remains high, the number of parked trucks remains relatively low, the age of the fleet remains elevated, and our autonomous solutions continue to see strong customer acceptance. We continue to believe the energy transition will support increased commodity demand over time, expanding our total addressable market and providing further opportunities for long-term profitable growth.
Read it in 10-K 2025-02-14 at sec.gov ↗
RemovedMD&A
For the full-year 2025, we anticipate sales and revenues will be slightly lower compared to 2024, primarily driven by lower sales volume and unfavorable price realization. We expect lower sales in Construction Industries and Resource Industries to be partially offset by higher sales in Energy & Transportation. Currently, we do not anticipate a significant change in machine dealer inventories in 2025. Services revenues increased in 2024, and we expect services revenues to grow across all three primary segments in 2025.
Read it in 10-K 2025-02-14 at sec.gov ↗
RemovedMD&A
For Construction Industries, we expect lower sales, including unfavorable price realization. In Resource Industries, we anticipate slightly lower sales, driven by unfavorable price realization and slightly lower sales volume. In Energy and Transportation, we expect an increase in sales driven by higher sales volume and favorable price realization.
Read it in 10-K 2025-02-14 at sec.gov ↗
RemovedMD&A
In a typical year, we see our lowest sales of the year in the first quarter. In 2025, we anticipate that trend to continue but be more pronounced as sales in the first quarter should account for a lower percentage of full year sales than is typical, mainly due to our expectations for changes in dealer inventories and price realization for machines. In Energy & Transportation, we expect normal seasonality with sales growing throughout the year.
Read it in 10-K 2025-02-14 at sec.gov ↗
RemovedMD&A
For the twelve months ended December 31, 2024, restructuring costs increased primarily due to the divestitures of certain non-U.S. entities.
Read it in 10-K 2025-02-14 at sec.gov ↗
RemovedMD&A
Profit (Loss) by Segment (Millions of dollars) 2024 2023 $ % Change Change Construction Industries $ 6,165 $ 6,975 $ (810) (12 Resource Industries 2,533 2,834 (301) (11 Energy & Transportation 5,736 4,936 800 16 All Other Segment 48 18 30 167 Corporate Items and Eliminations (1,384) (2,104) 720 Machinery, Energy & Transportation 13,098 12,659 439 3 Financial Products Segment 932 909 23 3 Corporate Items and Eliminations (327) 14 (341) Financial Products 605 923 (318) (34 Consolidating Adjustments (631) (616) (15) Consolidated Operating Profit $ 13,072 $ 12,966 $ 106 1
Read it in 10-K 2025-02-14 at sec.gov ↗
RemovedMD&A
•Other income (expense) in 2024 was income of $813 million, compared with income of $595 million in 2023. The change was primarily driven by favorable foreign currency impacts, favorable impacts from pension and other postemployment benefit (OPEB) plan costs and higher mark-to-market gains for remeasurement of pension and OPEB plans.
Read it in 10-K 2025-02-14 at sec.gov ↗
RemovedMD&A
Fund strategic growth initiatives and return capital to shareholders — We intend to utilize our liquidity and debt capacity to fund targeted investments that drive long-term profitable growth focused in the areas of expanded offerings, services and sustainability, including acquisitions.
Read it in 10-K 2025-02-14 at sec.gov ↗
RewordedMD&A
(Dollars in millions except per share data) Profit Before Taxes Profit Profit Before Taxes Profit Per Share Per Share Full Year 2024 2025 Full Year 2023 2024 Profit $ 11,541 $ 18.81 $ 13,373 $ 22.05 $ 13,050 $ 20.12 Other restructuring (income) costs 445 0.73 195 0.32 Pension/OPEB mark-to-market (gains) losses (294) (0.48) (154) (0.23) Restructuring (income) costs - divestitures of certain non-U.S. entities — — 164 0.22 — — Other restructuring (income) costs 195 0.32 194 0.30 Pension/OPEB mark-to-market (gains) losses (154) (0.23) (97) (0.14) Tax law change related to currency translation — (0.46) — — Restructuring costs - Longwall divestiture — — 586 1.14 Deferred tax valuation allowance adjustments — — — (0.21) (0.46) Adjusted profit $ 11,692 $ 19.06 $ 13,578 $ 21.90 $ 13,733 $ 21.21
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedMD&A
GAAP $ 13,373 11,541 $ 2,629 19.7% Restructuring (income) costs - divestitures of certain non-U.S. entities 164 54 2,768 24.0% Pension/OPEB mark-to-market (gains) losses (154) (43) Tax law change related to currency translation — 224 (294) (68) Changes in estimates related to prior years — 47 (41) Excess stock-based compensation — 57 50 Annual effective tax rate, excluding discrete items $ 13,383 11,247 $ 2,968 22.2% 2,709 24.1% Other restructuring (income) costs 445 102 Changes in estimates related to prior years — (47) 41 Excess stock-based compensation — (57) Other restructuring (income) costs 195 46 (50) Twelve Months Ended December 31, 2024 2025 - Adjusted $ 13,578 11,692 $ 2,910 2,802
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedMD&A
These items consist of (i) other restructuring income/costs, (ii) pension and OPEB mark-to-market gains/losses resulting from plan remeasurements, (iii) restructuring income/costs related to the divestitures of certain non-U.S. entities in 2024, (ii) other restructuring income/costs, (iii) pension 2024 and OPEB mark-to-market gains/losses resulting from plan remeasurements, (iv) a discrete tax benefit for a tax law change related to currency translation in 2024, (v) restructuring costs related to the divestiture of the company's Longwall business in 2023 and (vi) certain deferred tax valuation allowance adjustments in 2023. 2024.
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedMD&A
These items consist of (i) restructuring income/costs related to the divestitures of certain non-U.S. entities in 2024, (ii) pension and OPEB mark-to-market gains/losses resulting from plan remeasurements, (iii) a discrete tax benefit for a tax law change related to currency translation in 2024, (iv) (ii) the impact of changes in estimates related to prior years in 2024, (v) a years, (iii) the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S.
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedMD&A
The increase was primarily due to a favorable impact from higher average financing rates across all regions of $153 million and a favorable impact from higher average earning assets of $127 $222 million driven by North America, partially offset by an unfavorable impact from lower average financing rates of $68 million across all regions except Latin America.
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedMD&A
In Energy & Transportation, Resource Industries, we anticipate similar strong sales growth in the first quarter of 2025 2026 as compared to the first quarter of 2024, as continued strength in Power Generation is expected 2025, primarily due to be offset by lower higher sales in Oil & Gas and in Transportation. volume.
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedMD&A
Overall strength In Power & Energy, we anticipate growth in Power Generation, Generation for both prime reciprocating engines and backup power applications, continues to be turbines and turbine-related services in 2026, driven by increasing energy demands demand to support data center growth build-out related to cloud computing and generative artificial intelligence Artificial Intelligence (AI).
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedMD&A
In the first quarter of 2026 as compared to the first quarter of 2025, we expect lower stronger sales and revenues as compared to the first quarter of 2024, primarily due to the unfavorable impact from changes in machine dealer inventories higher sales volume and unfavorable machine favorable price realization.
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedMD&A
In Energy Power & Transportation, Energy, we anticipate similar sales growth in the first quarter of 2025 2026 as compared to the first quarter of 2024, as continued 2025, driven by strength in Power Generation is expected to be offset by lower sales in and Oil & Gas Gas, and in Transportation. favorable price realization.
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedMD&A
The increase was mainly due to a favorable impact from higher average earning assets of $54 $90 million, partially offset by the absence of an insurance settlement of $33 million, million in 2024, and a favorable an unfavorable impact from equity securities higher provision for credit losses at Cat Financial of $32 $31 million.
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedMD&A
In the first quarter of 2025 2026 as compared to the first quarter of 2024, 2025, we anticipate lower strong sales growth in Construction Industries Industries, primarily due to lower higher sales of equipment to end users, an unfavorable impact from changes in dealer inventories volume and unfavorable favorable price realization.
Read it in 10-K 2026-02-13 at sec.gov ↗
RewordedMD&A
The allowance for credit losses attributable to finance receivables that are individually evaluated is primarily based on the present value of expected future cash flows discounted at the receivables' effective interest rate, the fair value of the collateral for collateral-dependent receivables or the observable market price of the receivable. receivables.
Read it in 10-K 2026-02-13 at sec.gov ↗
