Dear Fellow Shareholders,

The world is investing in physical infrastructure at a pace and scale that will define the next decade and beyond. Data centers are being built to meet surging demand for AI and cloud computing. Power grids are being expanded and reinforced. Critical minerals are being extracted to support growing global energy needs and power the devices we rely on every day. Roads, ports and industrial facilities are being constructed and modernized across every major economy.

These are not short-term trends. Urbanization, digitalization, electrification and the evolving global energy landscape are creating sustained, long-duration demand for the physical systems that underpin modern life. Our customers are essential to meeting that demand, and Caterpillar equips them to do it.

In 2025, we celebrated our centennial. For 100 years, Caterpillar has been essential to every major wave of infrastructure investment—from the roads and dams that modernized economies around the world, to the mines that supply the raw materials behind modern technology, to the power systems that keep critical operations running today. The world’s needs have changed enormously over that span. Caterpillar has grown with them every time.

What makes this moment different is the wide range of demand coming together at the same time, combined with how we are evolving to meet it. Caterpillar today has the broadest equipment portfolio in our industries, an unmatched independent dealer network around the world, and a growing set of technology capabilities. As a result, our business is becoming more essential and valuable to the customers we serve and more integrated in their operations.

We are delivering results that reflect that positioning. In 2025, sales and revenues reached $67.6 billion, the highest in Caterpillar’s history. We maintained adjusted operating profit margin within our target range, generated $9.5 billion of Machinery, Power & Energy (MP&E) free cash flow¹ and returned $7.9 billion to shareholders through share repurchases and dividends. Adjusted profit per share¹ was $19.06.

A refreshed strategy

At our 2025 Investor Day, we introduced a refreshed strategic plan for profitable growth organized around our mission—solving our customers’ toughest challenges—and three pillars: Commercial Excellence, Advanced Technology Leader and Transform How We Work. All three are built on a foundation of Operational Excellence and guided by Our Values in Action: Safety, Integrity, Teamwork, Excellence and Commitment.

Together, these pillars are designed to deepen how we serve customers across the full equipment lifecycle; accelerate the deployment of technology and digital solutions that help them work safer, more productively, and with less unplanned downtime; and strengthen the operating capabilities that allow us to grow while protecting margins and cash returns.

To support our strategy, we are making significant investments across our business, with MP&E capital expenditures increasing through the end of the decade—guided by our Operating & Execution Model to ensure every investment earns a return.

We established 2030 financial targets to reflect our confidence in the strategy and our ability to execute it. They are grounded in the demand we see, the investments we are making and the competitive advantages we continue to strengthen.

The next 100 years

As we enter our second century, we do so with conviction in the opportunity ahead and in Caterpillar’s ability to capture it. The physical foundation most people never think about—generating power, extracting critical minerals, and constructing and maintaining the infrastructure that keeps economies running—is becoming more important. This is the “invisible layer” that makes progress possible, and it would not exist without Caterpillar. Demand for the invisible layer has never been greater, and our customers who build, power and maintain it have never needed us more. Caterpillar is here to deliver enduring value for customers, communities and shareholders today and for generations to come.

Thank you for your trust and partnership.