CATERPILLAR INC

Caterpillar is a global manufacturer of heavy construction and mining equipment, diesel and natural-gas engines, and industrial gas turbines. The company sells new machines through an independent dealer network, generates recurring revenue from aftermarket parts and services, and offers finance solutions that support equipment sales and owner uptime. Revenue is driven by equipment sales, parts/service, and financing income.^[1]

Business Segments

• Construction Industries — heavy and compact construction machines and related parts; approximately 38% of consolidated external sales.
• Resource Industries — mining and heavy-excavation equipment and related parts; approximately 19% of consolidated external sales.
• Energy & Transportation — engines, power generation, industrial and transportation products and parts; approximately 39% of consolidated external sales.
• Financial Products — captive finance operations that support equipment purchases; roughly 5% of consolidated external sales.^[2]

Competitive Position

• Global dealer network and brand recognition give Caterpillar durable distribution scale and strong aftermarket share, supporting high-margin parts and service revenue.^[3]
• Broad product portfolio across construction, mining, power generation and engines creates cross-selling opportunities and diversification versus narrower competitors.^[4]

Investment Considerations

• Aftermarket and services provide recurring, higher-margin revenue and support long-term customer relationships, cushioning equipment-cycle volatility.^[5]
• The business is cyclical and sensitive to end-market capital spending, commodity cycles and macroeconomic trends, which can materially affect equipment demand.^[6]
• Competition from lower-cost global OEMs and escalating technology and R&D needs may pressure market share and require continued investment to defend pricing and product leadership.^[7]
• Captive finance reduces purchase frictions and supports sales but exposes the company to credit and interest-rate risk tied to financing portfolios.^[5]