Executing Our Strategy

Solar Turbines Mercury Generator Sets powered by landfill gas provide a sustainable solution to minimize CO2 emissions.
Solar Turbines Mercury Generator Sets powered by landfill gas provide a sustainable solution to minimize CO2 emissions.

Annual Report

Executing Our Strategy

Our dedicated global team continues to focus on executing our enterprise strategy for long-term profitable growth. In 2022, we delivered one of the best years in our nearly 100-year history, including double-digit top-line growth, strong Machinery, Energy & Transportation (ME&T) free cash flow and record full-year adjusted profit per share.

Caterpillar Strategy Gear from 2022
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Caterpillar Strategy Gear from 2022

INCREASING SERVICES SALES

Caterpillar is increasingly confident in our ability to achieve our commitment to reach $28 billion in ME&T services sales1 by 2026. More than 60% of equipment is now delivered with a Customer Value Agreement. These agreements drive aftermarket parts and service sales for our dealers, and help customers minimize downtime, improve utilization and extend product life. Customers also benefit from the introduction of serial-number-specific QR codes2 added to our products at assembly. By simply scanning the code with a mobile device, customers can quickly navigate to equipment-specific parts and services. Other offerings that make equipment easy to buy and own include a new Cat Central app, which helps drive growth in eCommerce sales, and a range of data analytics tools to monitor our more than 1.4 million connected assets. In 2022, Cat Reman continued to expand services, introducing 28% more remanufactured products than the prior year. Newly available products include Cat Reman engines with new content for the on-highway truck industry and replacement engines.

Holt of Texas - Rebuild for their customer. The tech is working on some pony wheels for 826/836 compactors.
Holt of Texas - Rebuild for their customer. The tech is working on some pony wheels for 826/836 compactors.

ELECTRIFYING THE PRODUCT PORTFOLIO

We are developing a wide range of advanced power technologies to help our customers achieve their climate-related objectives. In 2022, our SEM brand introduced its first zero-exhaust emissions electric wheel loader in China. We displayed four battery electric machine prototypes at bauma, including the Cat 301.9 mini excavator, 906 compact wheel loader, 950 GC medium wheel loader and 320 medium excavator. The machine prototypes also feature onboard and offboard charging solutions. We successfully demonstrated the first battery electric Cat 793 large mining truck prototype at our Tucson Proving Ground in Arizona, U.S., which we are transforming into a sustainable testing and validation hub of future mining products. Additionally, we created the Electrification & Advanced Power Solutions Division to deliver advanced electrified powertrain and zero-exhaust emissions products and technologies, and the solutions and services associated with these technologies.

301.9 Mini HEX, battery electric prototype
301.9 Mini HEX, battery electric prototype

PRIORITIZING SAFETY, EFFICIENCY & QUALITY

Excellent operating fundamentals help us meet our shareholder commitments. In 2022, Caterpillar further enhanced our safety-focused culture by encouraging employee involvement in partnering with leaders to develop safety solutions. Feedback and problem-solving dialogue and initiatives foster increased trust and collective ownership. We continued our focus on efficiency and quality measures, as illustrated with the implementation of new, state-of-the-art storage and retrieval systems at five locations around the world, with more underway. The new systems are modernizing our parts distribution network and helping us maintain high levels of parts availability despite supply chain challenges.

Autostore image
Autostore image

REVOLUTIONIZING JOBSITES THROUGH AUTONOMOUS TECHNOLOGIES

Tight labor markets, remote job sites, and continued focus on safety and productivity are why customers continue to embrace our autonomous technology solutions. Cat Command, for example, allows machines to be run autonomously from thousands of miles away. In 2022, we expanded our autonomous technologies to a wider range of surface and underground equipment. We also announced a collaboration with Luck Stone, the largest U.S. family-owned and operated producer of crushed stone, sand and gravel, to deploy our autonomous solution to a quarry site. This agreement is Caterpillar’s first deployment in the quarry and aggregates industry and expands our autonomous truck fleet to include the Cat 777.

mining truck driving down road
mining truck driving down road

INVESTING IN ENERGY TRANSITION SOLUTIONS

We are investing to help our customers achieve their sustainability objectives. In 2022, we acquired Tangent Energy Solutions, a U.S.-based energy-as-a-service company. Tangent provides customers with turnkey solutions for reducing energy costs, increasing energy efficiency, reducing emissions, monetizing electric grid support and providing resiliency for customer operations. We also have invested in Lithos Energy, a U.S.-based battery technology company that produces lithium-ion battery packs and specializes in designing, engineering and manufacturing shock-resistant and high-performance lithium-ion battery solutions for applications in demanding conditions such as off-road and marine.

Tangent employees at work
Tangent employees at work

Caterpillar's Role in the Energy Transition

The energy transition and global energy demand are increasing Caterpillar’s opportunities for long-term growth.

View our Role
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Caterpillar engineer operates compact wheel loader with Cat Command

2022 Performance
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2022 Segment Highlights


Top image: Solar Turbines Mercury Generator Sets powered by landfill gas provide a sustainable solution to minimize CO2 emissions.

1 ME&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.

2 QR Code is a registered trademark of DENSO WAVE INCORPORATED.

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