Caterpillar(US:CAT)2026-02-13 15:18Construction Industries - The Construction Industries segment focuses on machinery for infrastructure and building construction, with significant sales in heavy and general construction, rental, quarry, and mining industries [14]. - In 2025, the majority of research and development spending in the Construction Industries segment was directed towards the next generation of construction machines, emphasizing customer-driven product innovations [15]. Resource Industries - The Resource Industries segment provides machinery for mining and heavy construction, with a broad product range aimed at high productivity and low total cost of ownership [20]. - The competitive landscape for Resource Industries includes global competitors such as Deere Construction & Forestry and Komatsu, as well as numerous regional players [22]. Power & Energy - The Power & Energy segment supports various applications, including oil and gas and power generation, with a focus on compliance with regulatory emissions standards [25][26]. - The order backlog was approximately $51.2 billion at December 31, 2025, up from $30.0 billion at December 31, 2024, with a significant increase in the Power & Energy segment [50]. Cat Financial - Cat Financial, the financial products segment, provides retail and wholesale financing for Caterpillar products, with a significant portion of its activity in North America [29][38]. - Cat Financial offers various financing products, including loans and leases, to support sales of Caterpillar products and services [31][32]. - The competitive environment for Cat Financial includes commercial banks and finance companies, as well as financial subsidiaries of competing manufacturers [35]. - Cat Financial employs a match-funding policy to manage interest rate risk, aligning the interest rate profile of its debt portfolio with its receivables portfolio [39]. Insurance Services - Caterpillar Insurance Company and Caterpillar Life Insurance Company provide property, casualty, and life insurance services, regulated by various authorities to ensure compliance with financial requirements [42][43]. - Caterpillar's insurance group provides various coverages, including $19.3 billion in international employee benefit plans reinsured through retrocession agreements [46]. Employment and Safety - As of December 31, 2025, the company employed about 118,000 full-time employees, an increase from 112,900 in 2024, with 66,400 located outside the United States [65]. - The recordable injury frequency rate improved to 0.41 in 2025 from 0.43 in 2024, reflecting the company's commitment to employee safety [58]. - The company achieved a total of 7,972 hourly production employees in the U.S. covered by collective bargaining agreements as of December 31, 2025 [65]. - Caterpillar's leadership development programs focus on building resilient teams and enhancing employee skills tailored to business needs [60]. Supply Chain and Compliance - The company maintains strategic sourcing models to ensure timely delivery of raw materials and components, despite facing supply chain disruptions [48]. - The company is committed to complying with environmental regulations, investing significantly in research and development to meet emissions standards [67]. - The total health programs emphasize physical, mental, and financial wellness, aligning with the company's pay-for-performance philosophy [64].