How Caterpillar (CAT) Makes Money: A Visual Guide
Caterpillar (CAT) generated $67.59B in revenue (TTM through Q4 2025), earning $8.87B in net profit (13.1% margin). Its largest revenue source is Reportable Subsegments (53.8% of revenue). Below is an interactive breakdown of how revenue flows through the income statement.
Caterpillar (CAT) Income Statement Flow
Frequently asked questions
How does Caterpillar (CAT) make money?
- Caterpillar (CAT) primarily makes money through Reportable Subsegments, which accounts for 53.8% of total revenue. For TTM through Q4 2025, Caterpillar generated $67.59B in total revenue with a net profit margin of 13.1%.
What is Caterpillar (CAT) gross profit margin?
- Caterpillar (CAT) reported a gross profit margin of 32.3% for TTM through Q4 2025, equivalent to $21.86B in gross profit. This means Caterpillar retains 32.3% of each revenue unit after direct costs of production.
What is Caterpillar (CAT) operating profit margin?
- Caterpillar (CAT) reported an operating profit margin of 16.6% for TTM through Q4 2025, equivalent to $11.21B in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.
What is Caterpillar (CAT) net profit margin?
- Caterpillar (CAT) reported a net profit margin of 13.1% for TTM through Q4 2025, equivalent to $8.87B in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.
How much does Caterpillar (CAT) invest in R&D?
- Caterpillar (CAT) invested $2.15B in research and development in TTM through Q4 2025 (3.2% of total revenue). R&D spending reflects investment in future products, services, and technologies.
How much does Caterpillar (CAT) spend on capital expenditures?
- Caterpillar (CAT) spent $3.17B on capital expenditures in TTM through Q4 2025 (4.7% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.
What is Caterpillar (CAT) free cash flow?
- Caterpillar (CAT) generated $10.27B in free cash flow for TTM through Q4 2025 (15.2% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.
What is Caterpillar (CAT) effective tax rate?
- Caterpillar (CAT) had an effective tax rate of 23.9% for TTM through Q4 2025. This is the actual percentage of pre-tax income paid as income taxes.
About this data
- What is a Sankey diagram?
- A Sankey diagram shows how money flows through a company from revenue to net profit. The width of each flow represents its proportion.
- How is the data calculated?
- We use the income statement from company filings. For TTM (Trailing Twelve Months), we sum the last four quarters. Revenue flows to cost of revenue and gross profit, then to operating expenses (R&D, S&M, G&A) and operating profit.
- When was this data last updated?
- Based on company filings through TTM through Q4 2025.