Q4 2025 FINANCIAL RESULTS February 17, 2026 SAFE HARBOR STATEMENT AND DISCLOSURES All statements other than statements of historical fact contained in this presentation including competitive strengths; business strategy; future financial position or operating results; budgets; projections with respect to revenue, income, earnings (or loss) per share, capital expenditures, dividends, liquidity, capital structure or other financial items; costs; and plans and objectives of management regarding operations and ...

Core Insights - The company reported a 6% increase in consolidated revenues for Q4 2025, but a 9% decline in full-year revenues due to lower demand in the agricultural equipment sector [1][2] - Net income for Q4 2025 was $89 million, down from $176 million in Q4 2024, with full-year net income at $505 million compared to $1,259 million in 2024 [1][2] - The company anticipates lower demand levels in 2026, with a projected recovery in 2027 for the agricultural equipment market [1][23] Financial Performance - Q4 2025 consolidated revenues were $5.16 billion, up from $4.88 billion in Q4 2024, while net sales of Industrial Activities increased to $4.45 billion, an 8% rise [1][4] - Full-year 2025 consolidated revenues totaled $18.10 billion, a 9% decrease from $19.84 billion in 2024, with net sales of Industrial Activities at $15.35 billion, down 10% [2][18] - Full-year diluted EPS was $0.41, down from $0.99 in 2024, while adjusted diluted EPS was $0.55 compared to $1.05 in 2024 [2][19] Segment Performance - The Agriculture segment saw Q4 2025 net sales increase by 5% to $3.6 billion, but adjusted EBIT decreased to $233 million from $244 million in Q4 2024 [10][20] - In the Construction segment, Q4 2025 net sales rose 19% to $853 million, driven by higher shipment volumes, although adjusted EBIT fell to $5 million from $18 million in Q4 2024 [11][13] - Financial Services revenues decreased by 6% in Q4 2025 due to lower yields and reduced average portfolio balances, while net income increased by 18% to $109 million [14][16] Market Outlook - The company expects a further 5% decline in global industry retail demand for agricultural equipment in 2026, maintaining low production levels and managing dealer inventories [23][24] - The construction equipment market is projected to remain flat in 2026, with varying demand across different construction sectors [24]

Core Viewpoint - Caterpillar Inc. (NYSE:CAT) has shown significant stock performance, with shares increasing by 115% over the past year and 27% year-to-date, indicating strong market confidence in the company [1]. Financial Performance - In the fiscal fourth quarter, Caterpillar reported revenues of $19.1 billion and earnings of $5.16 per share, reflecting robust financial health [1]. - Analysts from Baird and Jefferies have raised their price targets for Caterpillar's stock, with Baird increasing it to $805 from $680 and Jefferies to $750 from $700, both maintaining a positive outlook on the stock [1]. Market Trends - The CEO of Caterpillar, Joe Creed, highlighted a shift among data center operators towards on-site power generation, which aligns with Jim Cramer's view that the company will benefit from the growing data center construction boom [1]. - Cramer has expressed strong enthusiasm for Caterpillar, suggesting that its performance is exceptional and worth attention [2].

Core Viewpoint - Volvo Construction Equipment has successfully completed the acquisition of Swecon, enhancing its operations in key European markets with a transaction valued at 7 billion SEK [1][2]. Group 1: Acquisition Details - The acquisition encompasses Swecon's business operations in Sweden, Germany, and the Baltics, including sales, rental operations, aftermarket services, and support, along with 1,400 employees [2]. - The strategic intent behind this acquisition is to strengthen Volvo CE's retail operations and service sales, making the retail market a core focus in Europe [2]. Group 2: Financial Impact - In Q1 2026, Volvo CE's earnings will experience a temporary dilution due to a higher cost base in inventory, with an estimated impact of SEK 300 million as a result of the acquired inventory from Swecon [3]. - For the full year of 2024, Swecon's revenues were reported at SEK 10 billion [3].

Group 1 - Volvo is recognized for its commitment to safety and innovation in the automotive industry, competing with major companies like Daimler and Scania [1] - RBC Capital maintains an "Outperform" rating for Volvo, indicating confidence in the company's future performance [5] - The stock price target for Volvo was raised to SEK 350 from SEK 340, reflecting optimism for growth [3][5] Group 2 - On January 30, 2026, Volvo's stock was priced at $36.42, aligning with positive sentiment and an upgrade to a Zacks Rank 2 (Buy) [2] - The recent upgrade suggests an upward trend in earnings estimates, which could drive the stock price higher [3][5] - Currently, Volvo's stock is trading at $36.51, with a market capitalization of approximately $74.9 billion [4]

Core Insights - Caterpillar has seen a significant increase in its stock value, gaining over 75% in the past year, making it the top performer in the Dow Jones Industrial Average [1] - The company's recent quarterly results exceeded analysts' expectations, driven by strong demand for equipment used in AI data center construction [1] Financial Performance - Caterpillar reported an adjusted earnings per share of $5.16 for the fourth quarter, with an 18% year-over-year revenue increase to $19.1 billion [1] - The construction industries segment experienced a 15% growth in sales, while the power generation division saw a remarkable 44% revenue surge [1] Market Impact - The growing demand for construction machinery related to AI data centers has helped mitigate the negative effects of tariffs on Caterpillar's margins [1] - Caterpillar's stock has risen 16% in January alone, reflecting the broader market impact of the AI boom across various industries [1] Analyst Sentiment - Wall Street analysts are divided on Caterpillar's stock potential, with five analysts recommending "buy" and four suggesting "hold" [1] - The stock has surpassed the mean target price of approximately $662 set by analysts [1]

Group 1 - The Volvo Group will host its Capital Markets Day 2026 on June 10 in Eskilstuna, Sweden, starting at 9:00 a.m. CEST and concluding at 4:00 p.m. CEST [1] - Presentations will be made by the President and CEO, Martin Lundstedt, along with Executive Management, and attendees will have the opportunity to test drive products [1] - The event will be streamed live on the company's website, with a recorded version available afterward [1] Group 2 - Attendance is limited, and those wishing to participate on-site must contact Volvo Group Investor Relations by March 27 [2] - The Volvo Group, founded in 1927, is headquartered in Gothenburg, Sweden, employs over 100,000 people, and serves customers in nearly 190 markets [2] - In 2024, the company reported net sales of SEK 527 billion (approximately EUR 46 billion) [2]

分组1 - The article discusses how investors can create a portfolio that allows for monthly dividend payouts by strategically selecting stocks that pay dividends in different months [1][9] - The suggested combination of stocks includes Coca-Cola (KO), Caterpillar (CAT), and McDonald's (MCD), which collectively provide the necessary monthly dividend schedule [2][10] 分组2 - Coca-Cola (KO) is highlighted as a member of both the Dividend Aristocrats and Dividend Kings groups, indicating its strong track record of reliable dividend payments [3] - Caterpillar (CAT), the largest construction equipment manufacturer, is also part of the Dividend Aristocrats group, known for its commitment to increasing shareholder rewards despite a lower current annual yield [5] - McDonald's (MCD) is recognized as a well-known restaurant chain, with a consistent history of annual dividend payments [7]

Core Insights - The reshoring trend and the push for supply-chain independence are significantly transforming U.S. manufacturing, driven by factors such as post-pandemic vulnerabilities, trade disputes, and recent tariff policies [1][2]. Industry Overview - The imposition of import tariffs on various products has made offshore production costly, prompting companies to relocate manufacturing back to the U.S. to stabilize supply chains and avoid tariffs [2]. - Favorable U.S. government policies, including the CHIPS & Science Act and the Inflation Reduction Act (IRA), are encouraging investments in sectors like semiconductors and clean energy, which in turn is boosting demand for related industries [3]. Company Focus: Caterpillar Inc. (CAT) - Caterpillar has shifted its construction equipment production from Japan to Georgia and Texas, enhancing its supply chain efficiency and reducing transit times [6]. - The company plans to invest $725 million in its engine manufacturing facility in Lafayette, IN, to improve workforce skills and meet rising demand for power generation engines [6]. - CAT's shares have increased by 60.6% over the past year, with earnings growth expected to be 19% in 2026 [8]. Company Focus: EnerSys (ENS) - EnerSys is relocating battery production to Kentucky to avoid tariffs and leverage IRA tax credits, ceasing operations in its Mexican facility [10]. - The company anticipates benefiting from the IRA, expecting its products to qualify for tax credits, which will support its high-density battery portfolio expansion [11]. - ENS shares have risen 62.6% in the past year, with projected earnings growth of 20.7% for fiscal 2027 [12]. Company Focus: GE Aerospace - GE Aerospace is investing $1 billion in U.S. manufacturing to enhance production capabilities and meet growing demand for engines and services [13][16]. - This investment is expected to create approximately 5,000 jobs in the U.S. and focuses on improving engine quality and delivery [16]. - GE's shares have surged 87.5% over the past year, with earnings growth projected at 13.1% for 2026 [17].

Financial Performance - FY2025 - Deere & Company's FY2025 net sales and revenues reached $51716 million, a 13% increase compared to $45684 million in FY2024[7] - Net sales for equipment operations in FY2025 were $44759 million, up 15% from $38917 million in FY2024[7] - Net income attributable to Deere & Company for FY2025 was $7100 million, a 29% increase compared to $5027 million in FY2024[7] - Diluted earnings per share (EPS) for FY2025 were $2552, a 28% increase compared to $1850 in FY2024[7] Financial Performance - 4Q2025 - Net sales and revenues for 4Q2025 were $12394 million, a 11% increase compared to $11143 million in 4Q2024[9] - Net sales for equipment operations in 4Q2025 were $10579 million, up 14% from $9275 million in 4Q2024[9] - Net income attributable to Deere & Company for 4Q2025 was $1065 million, a 14% decrease compared to $1245 million in 4Q2024[9] - Diluted earnings per share (EPS) for 4Q2025 were $393, a 14% decrease compared to $455 in 4Q2024[9] Segment Performance - 4Q2025 - Production & Precision Ag net sales in 4Q2025 were $4740 million, a 10% increase compared to $4305 million in 4Q2024[11] - Small Ag & Turf net sales in 4Q2025 were $2457 million, a 7% increase compared to $2306 million in 4Q2024[13] - Construction & Forestry net sales in 4Q2025 were $3382 million, a 27% increase compared to $2664 million in 4Q2024[24] Financial Outlook - FY2026 - Deere & Company forecasts a net income attributable to the company of $40-475 billion for FY2026[35] - The company anticipates an effective tax rate of 25-27% for FY2026[35] - Net operating cash flow for FY2026 is projected to be $40-50 billion[36] - Capital expenditures are expected to be approximately $14 billion[37]