Caterpillar reported a 22% increase in revenue to $17.4 billion, a 20% increase in operating profit to $3.1 billion, and a 30% increase in adjusted EPS to $5.54. Management increased 2026 guidance and its five-year forecast, which was just produced in November, driven mainly by power and energy.
Management may be understating the group’s margin potential of 18%-22% as further services growth is likely to be margin accretive. There is a spread between the core construction segment and the others that could narrow.
Due to Caterpillar’s cyclicality, management profit margin targets may not be maintainable through the business cycle. Worse decremental margins would imply the value proposition to customers isn’t as robust.
|
Metric
|
CAT
|
6301
|
|---|---|---|
Price/Earnings (Normalized) | 44.39 | 16.28 |
Price/Book Value | 22.32 | 1.73 |
Price/Sales | 6.00 | 1.48 |
Price/Cash Flow | 32.04 | 10.08 |
|
Metric
|
CAT
|
6301
|
|---|---|---|
Quick Ratio | 0.72 | 0.98 |
Current Ratio | 1.35 | 2.09 |
Interest Coverage | 24.43 | 11.52 |
|
Metric
|
CAT
|
6301
|
|---|---|---|
Return on Assets (Normalized) | 10.32% | — |
Return on Equity (Normalized) | 49.08% | — |
Return on Invested Capital (Normalized) | 16.34% | — |
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1-Day Chart
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United States