#United States #Nashville #Q3 2025 #Caterpillar #Cat Financial

Cat Financial Reports Third-Quarter 2025 Results

Cat Financial announced its financial performance for the third quarter of 2025, highlighting a revenue figure of $926 million. This marks a $38 million increase, or a 4% rise, compared to the $888 million recorded in the same quarter last year. The revenue growth is attributed primarily to an increase in average earning assets, which added $56 million. However, it was somewhat tempered by a reduction in average financing rates that negatively impacted revenues by $15 million.

The company's profit for the third quarter was noted at $134 million, a slight decline of $3 million or 2% compared to the $137 million in the third quarter of 2024. Despite the dip in net profit, profit before income taxes increased by $2 million to $184 million, reflecting a 1% rise from the previous year. This increase was bolstered by higher average earning assets, contributing an additional $23 million to profits, although it was offset by a $15 million increase in the provision for credit losses and an added $5 million in general, operational, and administrative expenses.

In terms of tax obligations, the provision for income taxes for Q3 2025 came to $50 million, calculated on the profit before income taxes of $184 million. This is an increase from $45 million in taxes on $182 million profit before income taxes for the previous year's third quarter. The tax provision also included a $10 million expense for a valuation allowance against the deferred tax assets relating to a non-U.S. subsidiary.

Retail new business volume experienced significant growth, rising to $3.63 billion, which is a $234 million increase or 7% from $3.40 billion in the same quarter of the previous year. This upward trend was observed across all segments, although it was slightly countered by a decrease in the Mining sector.

At the close of Q3 2025, Cat Financial reported past dues percentage at 1.47%, down from 1.74% at the same time last year. However, net write-offs saw a rise, reaching $40 million in Q3 2025 as compared to $27 million a year prior. The company’s allowance for credit losses stood at $283 million, or 0.89% of finance receivables, which is a slight decrease from $290 million or 0.94% at mid-2025, yet it is higher than the $267 million, 0.91% of finance receivables, recorded at the end of 2024.

Dave Walton, President of Cat Financial, expressed confidence in the performance by noting, "Cat Financial delivered another solid quarter with strong portfolio performance reflected in historically low past dues." He further commended the team for its ongoing execution of strategic goals while continuing to support Caterpillar customers and dealers with financial services solutions.

In summary, Cat Financial continues to show resilience with solid revenues and strategic growth, despite minor fluctuations in profits and increased write-offs. The consistent focus on enhancing financial solutions illustrates their commitment to both customers and the broader Caterpillar brand.

About Cat Financial

Cat Financial is the financial services subsidiary of Caterpillar Inc., the global leader in manufacturing construction and mining equipment, as well as diesel and natural gas engines. They provide an extensive array of financing options, supporting customers and Cat® dealers, and have a presence across various global markets.