Overview

• Construction equipment maker's Q4 revenue rose 18%, beating analyst expectations

• Adjusted EPS for Q4 beat consensus, reflecting strong end markets

• Company deployed $7.9 bln for share repurchases and dividends in 2025

Outlook

• Caterpillar enters 2026 with strong momentum and a record backlog

Result Drivers

• SALES VOLUME INCREASE - Higher sales volumes, particularly in Power & Energy and Construction Industries, drove Q4 revenue growth

• POWER & ENERGY GROWTH - Power & Energy segment sales rose 23% due to increased demand in oil and gas and power generation

• HIGHER MANUFACTURING COSTS - Unfavorable manufacturing costs, largely from tariffs, impacted profit margins

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 Revenue	Beat	$19.10 bln	$17.86 bln (15 Analysts)
Q4 Adjusted EPS	Beat	$5.16	$4.68 (20 Analysts)
Q4 EPS		$5.12

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 12 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the heavy machinery & vehicles peer group is "buy"

• Wall Street's median 12-month price target for Caterpillar Inc is $623.27, about 3.1% below its January 28 closing price of $643.28

• The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release: ID:nPn2NFclLa

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