It’s a privilege to take on the role of CEO and continue the remarkable legacy that has defined Caterpillar throughout our 100-year history. Since 1925, our commitment to customer success has pushed us to pioneer new technologies that solve their toughest challenges. Our performance in 2024 is a testament to the strength of our strategy, our culture of innovation, and the trust we have built with our customers. But the true foundation of our success is our people. Their expertise, hard work and dedication continue to drive profitable growth and have delivered value to customers around the world.
I am extremely proud of our team for delivering another good year. We achieved record adjusted profit per share1 of $21.90 and higher adjusted operating profit margin1 of 20.7%, which exceeded the top of our target range2. We also generated Machinery, Energy and Transportation (ME&T) free cash flow3 of $9.4 billion, near the top of our target range2.
Our robust ME&T free cash flow3 and strong balance sheet allowed us to return over $10 billion to shareholders through share repurchases and dividends. Caterpillar has paid higher annual dividends to shareholders for 31 consecutive years and has again been recognized as a member of the S&P 500 Dividend Aristocrats Index.
Our strategy for profitable growth is delivering results. Ongoing services initiatives and investments contributed to record services revenues4 of $24 billion as we strive toward our aspirational target of $28 billion.
We continue to make significant progress as we invest for long-term success. Increasing investments in the core technologies of autonomy, alternative fuels, connectivity, digital and electrification support customer requirements for reliability, durability and economic value. Our commitment to supporting customers goes beyond the initial sale with services and digital solutions.
By leveraging these core technologies, we’re helping our customers navigate the evolving energy landscape with solutions that can lower greenhouse gas emissions, deliver energy flexibility and improve efficiency and productivity. Our expanding portfolio of increasingly fuel-efficient, fuel-flexible and fully electric products helps customers achieve their sustainability-related objectives.
Working with Cat® dealers, we continue cultivating a digital ecosystem that applies insights from more than 1.5 million connected reporting assets to help customers improve uptime and seamlessly manage their fleets. In 2024, we drove better-than-expected growth in our eCommerce platforms and record use of VisionLink®, our equipment management application.
Our commitment to excellence extends beyond the execution of our strategy. Caterpillar and our employees are equally dedicated to improving the lives of others around the world through the Caterpillar Foundation. From supporting skills development and workforce readiness in communities to building sustainable infrastructure and enabling disaster preparedness, response and recovery, the Caterpillar Foundation’s 2024 grants totaled more than $43 million.
Through the public policy process, Caterpillar actively advocates for issues that support our corporate strategy and business objectives. We value shareholder input and continue to provide greater transparency on our work with trade associations, governance process and disclosures in our 2024 Sustainability Report.
Reflecting on the extraordinary milestone of a century of Caterpillar, I am inspired by the significant and historic role our people, products and solutions have played in shaping the foundations of modern life. Our founders, Holt and Best, had a vision to help customers find better ways to solve tough challenges. I am honored and energized to lead our talented team as we build upon that tradition.
With rising global demand for energy and the critical minerals powering emerging technologies — alongside expanded opportunities to meet the world’s infrastructure needs — we are well-positioned and ready to unlock opportunities in the years ahead.
Thank you for your trust and partnership. We are committed to innovating with purpose and shaping solutions that drive customer success and create lasting value for our communities and shareholders. With a strong foundation and tremendous opportunity, our team is ready to embrace the next 100 years with confidence.
Joseph E. Creed
Chief Executive Officer
1Adjusted profit per share and adjusted operating profit margin are non-GAAP measures, and a reconciliation to the most directly comparable GAAP measures is included in our 2024 10-K SEC filing.
2Target ranges based on 4Q 2023 Caterpillar earnings call. Caterpillar communicated an adjusted operating profit margin target range relative to the corresponding level of sales and revenues and an ME&T free cash flow target range of $5 billion to $10 billion annually.
3ME&T free cash flow is a non-GAAP measure, and a reconciliation to the most directly comparable GAAP measure is included in our 2024 10-K SEC filing.
4ME&T Services Revenues include, but are not limited to, aftermarket parts and other service-related revenues and exclude most Financial Products’ revenues, discontinued products and captive dealer services.
