HIGHLIGHTSAll comparisons are to Q4 2024 results unless indicated otherwise.
Revenue of $2.7 billion was up 6%, with growth in all regions. Annual revenue of $10.6 billion was up 7% from 2024.
Product support revenue increased 8% to $1.5 billion with continued strong mining activity. Q4 2025 was the 7th quarter in a row of year-over-year product support growth.
New equipment sales increased 9% to $1.0 billion. Equipment backlog (3) grew to a new record level of $3.1 billion at December 31, 2025, which included strong order intake in Canada across all market sectors.
SG&A (2) margin (3) was 15.4%, and included $21 million of long-term incentive plan ("LTIP") expense primarily due to strong fourth quarter share price performance, relative to a $3 million LTIP recovery in the prior year. This LTIP expense had an approximately 80 basis point impact to SG&A margin.
EBIT (2) was $187 million and Adjusted EBIT (4)(5) was $209 million, which excluded the impact of a $22 million write-off of certain information technology assets to align with Caterpillar's digital and technology strategy.
Adjusted EBIT margin (3)(5) was 7.8%, down 60 basis points from Q4 2024 EBIT margin (3). Adjusted EBIT margin was 10.4% in South America, 8.1% in Canada, and 4.6% in the UK & Ireland.
Q4 2025 Adjusted EPS (2)(3)(5) of $1.00 was up 3% from Q4 2024 EPS from continuing operations of $0.97. LTIP expense had a $0.12 impact to EPS in Q4 2025, relative to a $0.02 benefit in Q4 2024.
Adjusted ROIC (2) from continuing operations (3)(5) was 19.2%, up 130 basis points from December 31, 2024.
Q4 2025 free cash flow from continuing operations (4) was $642 million. Net debt to Adjusted EBITDA (2)(3)(5) at December 31, 2025 was 1.2 times, down from 1.7 times at December 31, 2024.
"2025 was a very strong year for our company. We have grown our business, and improved both our resilience and Adjusted ROIC while generating strong free cash flow and creating value for our shareholders through earnings growth, lower share count, and reduction in net debt. Our performance is a result of focused execution by our employees, and I would like to thank them for their unwavering commitment to each other, our customers and partners" said Kevin Parkes, President and CEO.
"Our earnings capacity has been significantly transformed, and we are more resilient in all market conditions. Product support revenue is approaching $6 billion annually while reducing SG&A margin to 15% in 2025. Our new equipment revenues reached an all-time high of $3.9 billion this year, while at the same time, backlog is at an all-time high of $3.1 billion, both of which provide a solid foundation for future product support opportunities. Our mining and power & energy end markets remain robust, despite relatively low oil and gas prices, and we are optimistic that the market for construction equipment will start to improve in 2026 as the political environment and economic outlook for infrastructure development improves across our regions."
"We have delivered strong results since we updated our strategic objectives at our Investor Day in 2023 and we have more opportunities to continue executing this strategy to maximize product support, drive full-cycle resilience and grow our used, rental and power & energy businesses to improve our return on invested capital. We are excited about growth opportunities supported by our constructive end markets and continued execution of our strategy," said Mr. Parkes.Q4 2025 FINANCIAL SUMMARY
3 months ended December 31
Years ended
% change
% change
2025
2024
fav(2)
2025
2024
fav
($ millions, except per share amounts)
(Restated)
(unfav)(2)
(Restated)
(unfav)
New equipment
1,000
921
9
%
3,863
3,612
7
%
Used equipment
105
136
(23
)%
487
507
(4
)%
Equipment rental
77
75
2
%
301
295
2
%
Product support
1,507
1,394
8
%
5,934
5,480
8
%
Other
1
2
(48
)%
6
9
(30
)%
Revenue
2,690
2,528
6
%
10,591
9,903
7
%
Gross profit
617
599
3
%
2,444
2,357
4
%
Gross profit margin(3)
23.0
%
23.7
%
23.1
%
23.8
%
SG&A
(413
)
(391
)
(6
)%
(1,585
)
(1,560
)
(2
)%
SG&A margin
(15.4
)%
(15.5
)%
(15.0
)%
(15.8
)%
Equity earnings of joint ventures
5
4
10
9
Other expenses
(22
)
—
(34
)
(19
)
EBIT
187
212
(12
)%
835
787
6
%
EBIT margin
6.9
%
8.4
%
7.9
%
7.9
%
Adjusted EBIT
209
212
(2
)%
869
820
6
%
Adjusted EBITmargin
7.8
%
8.4
%
8.2
%
8.3
%
Net income from continuing operations
115
133
(14
)%
523
482
9
%
EPS
0.88
0.97
(9
)%
3.93
3.43
14
%
Adjusted EPS
1.00
0.97
3
%
4.12
3.61
14
%
Free cash flow from continuing operations
642
399
61
%
546
828
(33
)%
Q4 2025 EBIT by Operation
South
UK &
Finning
($ millions, except per share amounts)
Canada
America
Ireland
Other
Total
EPS
EBIT / EPS
98
98
17
(26
)
187
0.88
Write-off of intangible assets
5
5
3
9
22
0.12
Adjusted EBIT / Adjusted EPS
103
103
20
(17
)
209
1.00
Adjusted EBIT margin
8.1
%
10.4
%
4.6
%
n/m(2)
7.8
%
Q4 2024 EBIT by Operation
South
UK &
Finning
($ millions, except per share amounts)
Canada
America
Ireland
Other
Total
EPS
EBIT / EPS
90
103
22
(3
)
212
0.97
EBIT margin
7.5
%
10.9
%
5.8
%
n/m
8.4
%
QUARTERLY KEY PERFORMANCE MEASURES FROM CONTINUING OPERATIONS
2023
2025 (Restated)(1)
2024 (Restated)(1)(a)
(Restated)
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Q4(1)(a)
EBIT ($ millions)
187
240
203
205
212
160
220
195
168
Adjusted EBIT ($ millions)
209
240
215
205
212
193
220
195
223
EBIT margin
Consolidated
6.9
%
8.5
%
7.8
%
8.4
%
8.4
%
6.4
%
8.5
%
8.5
%
7.2
%
Canada
7.7
%
8.7
%
8.5
%
8.4
%
7.5
%
5.0
%
8.9
%
8.7
%
8.9
%
South America
9.9
%
9.7
%
10.1
%
10.6
%
10.9
%
10.6
%
10.4
%
11.0
%
6.7
%
UK & Ireland
4.0
%
6.5
%
5.2
%
4.7
%
5.8
%
4.9
%
4.6
%
4.5
%
1.8
%
Adjusted EBIT margin
Consolidated
7.8
