Caterpillar Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 30 April 2026: press release. The quarter’s numbers.

Read the filing

Key takeaways

• Sales rose 22% to $17.4 billion: Sales and revenues were $17.415 billion against $14.249 billion, an increase of $3.166 billion. The company named higher sales volume and price realization as the drivers. Source
• Adjusted profit per share of $5.54: Adjusted profit per share was $5.54 against $4.25 a year earlier, with both figures excluding restructuring costs. Source
• Construction Industries profit up 50%: Segment profit was $1.535 billion, with margin of 21.4% against 19.8%. Volume added $505 million and price realization $356 million, partly offset by $362 million of manufacturing costs. Source
• Resource Industries profit down 39%: Segment profit was $378 million, with margin of 10.0% against 17.0%. Sales rose 4% on volume of $85 million and currency of $78 million; the profit decline was mainly manufacturing costs. Source
• Power generation sales up 41%: Power Generation sales were $2.817 billion, up $821 million, with growth in large reciprocating engines and in turbines, primarily for data center applications. Source
• Dealer inventory rose in construction: Construction Industries volume was mainly driven by dealer inventory changes, which increased in the quarter after a slight decrease a year earlier. Source
• Manufacturing costs offset part of gains: Unfavorable manufacturing costs of $710 million partly offset the volume and price gains in the operating profit bridge. The release does not split this cost line further. Source
• Enterprise cash fell to $4.1 billion: Enterprise operating cash flow was $1.9 billion in the quarter. Year-end 2025 enterprise cash was $10.0 billion, per the fourth-quarter release. Source

“driven by resilient end markets and disciplined execution in a dynamic operating environment,”

Caterpillar Chairman and CEO Joe Creed

What changed from last quarter

• New: Adjusted measures in this release exclude restructuring costs only. The prior release also excluded pension and OPEB mark-to-market gains and losses for 2025 and 2024. Source

Results and growth drivers

• Sales rose 22% to $17.4 billion: Sales and revenues were $17.415 billion against $14.249 billion, an increase of $3.166 billion. The company named higher sales volume and price realization as the drivers. Source
• Adjusted profit per share of $5.54: Adjusted profit per share was $5.54 against $4.25 a year earlier, with both figures excluding restructuring costs. Source
• Operating profit rose 20%: Higher sales volume added $940 million to operating profit. The cost lines offset part of that gain and are covered in the costs section. Source
• Other income and tax rate: Other income was $260 million, against $107 million, mainly from currency, total return swaps and commodity hedges. A discrete tax benefit of $68 million was recorded, against $17 million. Source
• Adjusted results exclude restructuring costs: Restructuring costs were $41 million pre-tax, or $0.07 per share after tax, and were excluded from adjusted figures. The year-earlier figure was $32 million pre-tax. Source

Segments and regions

• Power & Energy sales up 22%: Segment profit was $1.450 billion, up 13%, with segment margin of 20.6% against 22.3%. Volume added $435 million and price realization $108 million; manufacturing costs offset $346 million. Source
• Construction Industries profit up 50%: Segment profit was $1.535 billion, with margin of 21.4% against 19.8%. Volume added $505 million and price realization $356 million, partly offset by $362 million of manufacturing costs. Source
• Resource Industries profit down 39%: Segment profit was $378 million, with margin of 10.0% against 17.0%. Sales rose 4% on volume of $85 million and currency of $78 million; the profit decline was mainly manufacturing costs. Source
• Sales rose in all four regions: North America rose 32% to $10.230 billion, EAME 20% to $3.008 billion, Latin America 5% to $1.592 billion and Asia/Pacific 4% to $2.585 billion. Source

“Solid sales and revenues growth, combined with robust order activity,”

Caterpillar Chairman and CEO Joe Creed

Products and end markets

• Power generation sales up 41%: Power Generation sales were $2.817 billion, up $821 million, with growth in large reciprocating engines and in turbines, primarily for data center applications. Source
• Oil and gas sales up 13%: Oil and Gas sales were $1.423 billion, up $165 million, from reciprocating engines in gas compression and from turbines and turbine-related services. Source
• Industrial sales up 5%: Industrial sales were $1.473 billion, up $73 million, with the increase primarily in EAME and Asia/Pacific. Source

Demand, dealer stock and end users

• Dealer inventory rose in construction: Construction Industries volume was mainly driven by dealer inventory changes, which increased in the quarter after a slight decrease a year earlier. Source
• End-user sales reported separately: The release gives no end-user sales figure. The company refers readers to its Rolling 3 Month Retail Sales Statistics, filed in a separate 8-K on the same date. Source
• Mining end-user equipment sales rose: Heavy Construction, Quarry & Aggregates and Mining sales were $2.954 billion, up 4%, mainly from higher equipment sales to end users in Mining. Source

Costs, margins and pricing

• Manufacturing costs offset part of gains: Unfavorable manufacturing costs of $710 million partly offset the volume and price gains in the operating profit bridge. The release does not split this cost line further. Source
• Compensation drove SG&A and R&D rise: SG&A and R&D expenses rose, mainly because of higher compensation expenses. The release gives no separate amount for the compensation increase. Source
• Operating margin declined: Adjusted operating profit margin was 18.0% against 18.3%, excluding restructuring costs in both periods. Source
• Corporate items expense fell: Corporate items and eliminations expense decreased mainly from segment reporting methodology differences and timing, partly offset by higher corporate costs and deferred compensation fair value changes. Source

Financial Products and Cat Financial

• Financial Products revenues rose 9%: Revenues were $1.096 billion, reflecting higher average earning assets across all regions. Source
• Profit up on earning assets and insurance: Segment profit was $245 million, up $30 million. Higher SG&A expenses of $22 million partly offset the gains. Source
• Credit allowance stayed at 0.86%: The allowance was $283 million at March 31, 2026, against $284 million at December 31, 2025. Both amounts were 0.86% of finance receivables. Source

Cash, capital and shareholder returns

• Enterprise cash fell to $4.1 billion: Enterprise operating cash flow was $1.9 billion in the quarter. Year-end 2025 enterprise cash was $10.0 billion, per the fourth-quarter release. Source
• $5.7 billion deployed for buybacks and dividends: The cash flow statement shows $5.028 billion of stock repurchases and $703 million of dividends paid in the quarter. Source
• Diluted share count declined: Diluted weighted-average shares were 465.8 million against 477.1 million a year earlier. Basic shares were 463.4 million against 474.9 million. Source
• Acquisitions used $788 million: Investments and acquisitions used $788 million of cash, net of cash acquired, against $2 million a year earlier. The release does not name the acquisition. Source
• Capital spending and leased equipment: Capital expenditures excluding equipment leased to others were $728 million, against $710 million. Leased-equipment expenditures were $323 million, against $208 million. Source

Coming up, as management said on 30 April 2026

• Adjusted profit per share for Q4 and FY2026: Management said it intends to discuss adjusted profit per share for the fourth quarter and full-year 2026, excluding pension and OPEB mark-to-market gains or losses. Source

Figures management reported

Risks management discussed

• Regulatory: Higher tariff costs were cited as the reason manufacturing costs were unfavorable in the segments discussed. The release does not quantify tariff costs separately. Source
• Financial: Cat Financial past dues were 1.39%, against 1.58% a year earlier. Net write-offs were $29 million, against $20 million in the year-earlier quarter. Source

Other quarters

• Q2 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.