Caterpillar(US:CAT) Prnewswire·2026-01-29 11:30Core Insights - Caterpillar Inc. reported record full-year sales and revenues of $67.6 billion for 2025, marking an increase of 4% from $64.8 billion in 2024, with fourth-quarter sales reaching $19.1 billion, an 18% increase from $16.2 billion in the same quarter of 2024 [2][3][4]. Financial Performance - Fourth-quarter profit per share was $5.12, down from $5.78 in the fourth quarter of 2024, while adjusted profit per share was $5.16, slightly up from $5.14 [3][4]. - Full-year profit per share was $18.81, compared to $22.05 in 2024, with adjusted profit per share at $19.06, down from $21.90 [4][12]. - Operating profit margin for the fourth quarter was 13.9%, down from 18.0% in the previous year, while adjusted operating profit margin was 15.6%, down from 18.3% [18][4]. Segment Performance - Construction Industries reported sales of $6.926 billion in Q4 2025, a 15% increase from $6.003 billion in Q4 2024, driven by higher sales volume [25][26]. - Resource Industries saw sales rise to $3.353 billion, a 13% increase from $2.980 billion, primarily due to higher sales volume [27][28]. - Power & Energy segment sales increased to $9.400 billion, a 23% rise from $7.649 billion, attributed to higher sales volume and favorable price realization [30][31]. Cash Flow and Capital Management - The company generated $11.7 billion in enterprise operating cash flow for the full year 2025 and ended the year with $10.0 billion in cash [6][12]. - Caterpillar deployed $7.9 billion for share repurchases and dividends in 2025 [6][12]. Tax and Other Financial Items - The effective tax rate for Q4 2025 was 23.5%, up from 14.3% in Q4 2024, with a global annual effective tax rate of 24.1% compared to 22.2% in 2024 [24][21]. - The company recorded a tax charge of $68 million related to mark-to-market gains for pension and OPEB plans in Q4 2025 [21][24].