Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Caterpillar Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Profit of consolidated and affiliated companies	8,882)	10,788)	10,332)	6,704)	6,493)
Depreciation and amortization	2,262)	2,153)	2,144)	2,219)	2,352)
Actuarial gain on pension and postretirement benefits	(294)	(154)	(97)	(606)	(833)
Provision (benefit) for deferred income taxes	465)	(621)	(592)	(377)	(383)
Loss on divestiture	30)	164)	572)	—)	—)
Goodwill impairment charge	—)	—)	—)	925)	—)
Other	742)	564)	375)	701)	216)
Receivables, trade and other	(2,138)	(160)	(437)	(220)	(1,259)
Inventories	(1,477)	(414)	(364)	(2,589)	(2,586)
Accounts payable	1,179)	(282)	(754)	798)	2,041)
Accrued expenses	438)	191)	796)	317)	196)
Accrued wages, salaries and employee benefits	187)	(363)	486)	90)	1,107)
Customer advances	1,933)	370)	80)	768)	34)
Other assets, net	(176)	(97)	(95)	(210)	(97)
Other liabilities, net	(294)	(104)	439)	(754)	(83)
Changes in assets and liabilities, net of acquisitions and divestitures	(348)	(859)	151)	(1,800)	(647)
Adjustments to reconcile profit to net cash provided by operating activities	2,857)	1,247)	2,553)	1,062)	705)
Net cash provided by operating activities	11,739)	12,035)	12,885)	7,766)	7,198)
Capital expenditures, excluding equipment leased to others	(2,821)	(1,988)	(1,597)	(1,296)	(1,093)
Expenditures for equipment leased to others	(1,465)	(1,227)	(1,495)	(1,303)	(1,379)
Proceeds from disposals of leased assets and property, plant and equipment	708)	722)	781)	830)	1,265)
Additions to finance receivables	(15,329)	(15,409)	(15,161)	(13,239)	(13,002)
Collections of finance receivables	13,515)	13,608)	14,034)	13,177)	12,430)
Proceeds from sale of finance receivables	71)	83)	63)	57)	51)
Investments and acquisitions, net of cash acquired	(47)	(34)	(75)	(88)	(490)
Proceeds from sale of businesses and investments, net of cash sold	22)	(61)	(4)	1)	36)
Proceeds from maturities and sale of securities	2,494)	3,155)	1,891)	2,383)	785)
Investments in securities	(1,930)	(1,495)	(4,405)	(3,077)	(1,766)
Other, net	75)	193)	97)	14)	79)
Net cash used for investing activities	(4,707)	(2,453)	(5,871)	(2,541)	(3,084)
Dividends paid	(2,749)	(2,646)	(2,563)	(2,440)	(2,332)
Common stock issued, and other stock compensation transactions, net	(16)	20)	12)	51)	135)
Payments to purchase common stock	(5,190)	(7,697)	(4,975)	(4,230)	(2,668)
Excise tax paid on purchases of common stock	(73)	(40)	—)	—)	—)
Machinery, Power & Energy	1,976)	—)	—)	—)	494)
Financial Products	9,129)	10,283)	8,257)	6,674)	6,495)
Proceeds from debt issued, original maturities greater than three months	11,105)	10,283)	8,257)	6,674)	6,989)
Machinery, Power & Energy	(51)	(1,032)	(106)	(25)	(1,919)
Financial Products	(8,030)	(8,284)	(6,212)	(7,703)	(7,877)
Payments on debt, original maturities greater than three months	(8,081)	(9,316)	(6,318)	(7,728)	(9,796)
Short-term borrowings, net, original maturities three months or less	1,106)	(168)	(1,345)	402)	3,488)
Other, net	(1)	(1)	—)	(10)	(4)
Net cash used for financing activities	(3,899)	(9,565)	(6,932)	(7,281)	(4,188)
Effect of exchange rate changes on cash	(43)	(106)	(110)	(194)	(29)
Increase (decrease) in cash, cash equivalents and restricted cash	3,090)	(89)	(28)	(2,250)	(103)
Cash, cash equivalents and restricted cash at beginning of period	6,896)	6,985)	7,013)	9,263)	9,366)
Cash, cash equivalents and restricted cash at end of period	9,986)	6,896)	6,985)	7,013)	9,263)

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

Overall, the period demonstrates generally strong and increasing operating cash flow, though with a dip in 2025. Investing and financing activities show significant fluctuations, reflecting substantial activity in debt, equity, and receivables. A notable increase in cash and cash equivalents is observed at the end of the period.

Operating Activities: Net cash provided by operating activities increased significantly from $7.198 billion in 2021 to a peak of $12.885 billion in 2023, before decreasing to $11.739 billion in 2025. This growth is largely driven by increasing profit, with a substantial jump in 2023. Adjustments to reconcile profit to net cash show a consistent positive contribution, increasing over the period. Working capital changes demonstrate variability; significant increases in receivables and decreases in inventories are observed in 2022 and 2023, followed by reversals in subsequent years. Accounts payable and accrued expenses also exhibit fluctuations, impacting overall operating cash flow.
Investing Activities: Net cash used for investing activities is consistently negative, indicating ongoing investment. Capital expenditures increased steadily from $1.093 billion in 2021 to $2.821 billion in 2025. Additions to finance receivables represent a substantial cash outflow throughout the period, consistently exceeding $13 billion annually. Proceeds from the sale of finance receivables partially offset these outflows. Proceeds from maturities and sales of securities contribute positively to cash flow, with a peak in 2024. Investments and acquisitions also represent a consistent cash outflow.
Financing Activities: Net cash used for financing activities is consistently negative, indicating a reliance on external funding or returns of capital to shareholders. Dividends paid remain relatively stable, around $2.5 to $2.7 billion annually. Payments to purchase common stock are significant, particularly in 2024. Proceeds from debt issued are substantial, especially in 2021, 2022, and 2023, while payments on debt are consistently high. Short-term borrowings demonstrate variability, with a net inflow in 2021 and 2025, and outflows in other years.
Key Trends & Observations: The company demonstrates a strong ability to generate cash from its core operations. However, significant cash is consistently used for investing activities, primarily related to finance receivables and capital expenditures, suggesting a growth-oriented strategy. Financing activities are heavily influenced by debt issuance and repayment, as well as share repurchases. The increase in cash and cash equivalents in 2025, despite negative financing cash flow, is attributable to the decrease in operating cash flow and investing activities. The actuarial gains on pension and postretirement benefits are consistently negative, though decreasing in magnitude, representing a cash outflow. The provision for deferred income taxes fluctuates significantly, impacting overall cash flow.

The company’s cash flow profile suggests a dynamic financial position with substantial investment and financing activities alongside robust operating performance.

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Caterpillar Inc. (NYSE:CAT)

Cash Flow Statement