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Caterpillar Inc.
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NYSE: CAT Industrials Infra 🔎 Screen
Dow 30 S&P 500
$352.0B
Market Cap
30.5
P/E
3.63
PEG
16.6%
ROCE
43.5%
ROE
2.07
D/E
17.4%
OPM
-30.8%
% from 52W High
70
α RS
🔍 CAT is showing a multi-screen setup because it matches 11 of 39 tracked screener presets and RS Rating is 70. The main caution: the Price Pessimism preset's Backtest win rate is only 45%. Net: Mixed signal stack, not a recommendation. ? Conviction RS Rating Backtest
Sources
Conviction 11/39 · RS Rating 70 · Backtest win rate 45%
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🌏 Global Investor Returns
Currency-adjusted total returns for CAT including FX impact
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📈 Price History
Ratio Health
— Excellent
— Good
— Average
— Poor
By Category
📊 Peer Medians
About

Caterpillar Inc. provides construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives in the United States and internationally. The Construction Industries segment offers asphalt pavers, cold planers, compactors, forestry machines, material handlers, motor graders, pipelayers, road reclaimers, telehandlers, track-type tractors, and track and wheel excavators; backhoe, compact track, skid steer, track-type, and wheel loaders; and related parts and work tools. Its Resource Industries segment provides electric rope and hydraulic shovels, draglines, rotary drills, hard rock vehicles, mining trucks, wheel loaders, off-highway and articulated trucks, wide-body trucks, wheel tractor scrapers and dozers, and landfill and soil compactors; machinery components, and wear and maintenance components; and technology products and services for fleet management, equipment management analytics, autonomous machine capabilities, safety services, and mining performance solutions. The Energy & Transportation segment offers reciprocating engine powered generator sets; reciprocating engines, drivetrain, and integrated systems and solutions; centrifugal gas compressors and related services; and diesel-electric locomotive components, and other rail-related products. Its Financial Products segment provides operating and finance leases, revolving charge accounts, installment sale contracts, repair/rebuild financing, working capital loans, and wholesale financing; and insurance and risk management products and services. The All Other segment offers parts distribution; logistics and distribution services; electronics and control systems; dealer portfolio management; brand management and marketing strategy; and digital investment services. It also provides mining software solutions. The company was formerly known as Caterpillar Tractor Co. Caterpillar Inc. was incorporated in 1925 and is headquartered in Irving, Texas.

Key Ratios Snapshot
📈 Growth Pattern
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⭐ Superinvestors Holding CAT
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Manager Shares Value % of Fund Period
Cathie Wood ARK Investment Management 58.6K $41.5M 0.32% Mar 2026
Jim Simons Renaissance Technologies LLC 21.5K $15.2M 0.02% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$20.5B
+24% YoY
Operating Income
$4.3B
+50% YoY
Operating Margin
21.9% (adjusted)
+4.3pp YoY
Adjusted EPS
$8.17
+73% YoY
What Went Right
  • Record second-quarter sales/revenues of $20.5B, up 24%, the first $20B quarter in company history.
  • Backlog rose ~$35B YoY and $9B sequentially to $72B, with growth across all three primary segments.
  • Power generation sales to users jumped 72% in Q2, and MP&E free cash flow hit a record $5.1B.
What to Watch
  • Q2 tariff costs excluding IEEPA recoveries were ~$400M; full-year tariff costs seen at ~$2.2B with no additional IEEPA recoveries in H2.
  • Q3 tariff costs expected around $600M, with ~50% in Construction Industries; tariffs continue to pressure margins.
  • Construction Industries dealer inventory expected to decline >$1B in Q4, making H2 dealer inventory a year-over-year headwind.
Management Guidance
  • Full-year 2026 sales/revenues growth raised to mid-to-high teens, with stronger growth across all three primary segments.
  • Full-year adjusted operating profit margin expected higher than April; excluding IEEPA recoveries, near bottom of target range.
  • Q3: strong sales growth vs prior year with volume and price in all segments; tariff costs ~$600M.
  • MP&E free cash flow now expected in top half of $6B-$15B target; CapEx ~$3.5B; restructuring $300M-$350M; effective tax rate ~23%.
Investor Lens
Thesis is stronger after this call: record backlog, broad-based demand, and raised guidance point to continued momentum. That said, full-year margin excluding IEEPA recoveries is near the bottom of the target range, so operating leverage is partly tariff-constrained. P&E visibility out to 2028-2030 and the CI rental/mega-project ramp are positive, while H2 dealer inventory destocking and rising strategic spend need monitoring.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Record revenue up 24% to $20.5B; backlog $72B.
Revenue
Q2 sales and revenues were $20.5B, up 24% YoY, topping expectations. All three primary segments grew: P&E +17% to $8.2B, CI +35% to $8.3B, RI +20% to $4.6B.
Profitability
Operating profit rose 50% to $4.3B; adjusted operating profit was $4.5B, up 54%. Adjusted EPS was $8.17, up 73% from $4.72, while GAAP EPS was $7.77.
Margins
Adjusted operating margin was 21.9%, up 430bp YoY. Margin benefited from $392M IEEPA recoveries and lower-than-expected tariff costs, with higher sales volume partially offset by higher SG&A/R&D.
Balance Sheet
Enterprise cash was $6.7B. MP&E free cash flow was a record $5.1B; $2.2B was deployed to shareholders via $1.5B buybacks and $0.7B dividends, and the dividend was raised 8%.
Key Risks
Tariffs remain a key headwind: Q3 costs seen around $600M and full-year ~$2.2B excluding IEEPA recoveries. Geopolitical uncertainty, Middle East softness, and weaker Asia Pacific outside China were flagged, along with Q4 CI dealer inventory destocking.
Outlook
2026 revenue growth guidance was raised to mid-to-high teens; adjusted operating margin outlook improved, near bottom of target range excluding IEEPA recoveries. Q3 is expected to deliver another strong quarter of sales growth with ~$600M tariff costs.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-04
Record quarterly sales and revenues rose 24% year-over-year to $20.5 billion, with all segments contributing to strong backlog and profit growth. Full-year guidance was raised to mid to high teens growth, supported by robust demand in power, construction, and mining.
Q1 2026 Q1 2026 2026-04-30
Q1 2026 saw 22% revenue growth and record backlog, with all segments contributing. Full-year guidance was raised for sales, profit margin, and cash flow, driven by strong demand in data centers, construction, and mining. Significant capacity expansion and shareholder returns were announced.
Q4 2025 Q4 2025 2026-01-29
Record sales, revenues, and backlog were achieved, with strong growth across all segments and robust free cash flow enabling significant shareholder returns. 2026 guidance calls for continued sales and margin growth, though tariff headwinds and capacity constraints remain key risks.
Q3 2025 Q3 2025 2025-10-29
Record quarterly sales and backlog were achieved, with strong growth in Energy and Transportation and resilient demand across all segments. Despite significant tariff headwinds, margins remained above expectations, and full-year guidance was raised for sales and cash flow.
Q2 2025 Q2 2025 2025-08-05
Q2 2025 saw resilient demand and record backlog, with sales and adjusted profit margin above expectations despite a 1% revenue decline and significant tariff headwinds. Full-year sales are expected to rise slightly, but tariffs will weigh on margins, with strong cash flow and capital returns continuing.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
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Information Sources:
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