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Cat Financial Reports Strong Third-Quarter 2026 Results

Cat Financial, a subsidiary of Caterpillar Inc., has unveiled its third-quarter results for 2026, reporting impressive revenue and profit growth. The company's revenues reached $1.02 billion, showing a notable increase of $95 million or 10% from $926 million in the same quarter of 2025.

This surge in revenues can largely be attributed to an enhancement in the average earning assets, which contributed $125 million. However, this positive impact was somewhat mitigated by a decline in average financing rates, which caused a $38 million unfavorable adjustment. On the profit front, Cat Financial reported a profit of $145 million, marking an increase of $11 million or 8% compared to $134 million in the third quarter of the previous year.

Financial Highlights

In addition to the revenue growth, Cat Financial also reported a profit before income taxes of $194 million, which is an increase of $10 million or 5% from the $184 million recorded in the same quarter the previous year. This growth was primarily driven by better average earning assets and the positive performance from returned or repossessed equipment, contributing $52 million and $8 million respectively to the profit growth. Conversely, higher provisions for credit losses negatively impacted the profits by $34 million, while margin losses accounted for an additional $19 million.

As of September 30, 2026, the estimated annual tax rate rose to 29%, up from 24% in 2025. This increase is primarily due to alterations in the geographic distribution of profits, reflecting the dynamic nature of the business environment.

The company also reported new retail business volume of $3.85 billion during the third quarter, an increase of $221 million or 6% from $3.63 billion in Q3 2025. This growth was driven by increased volume across nearly all segments, with the exception of the Asia-Pacific region.

Credit Performance

Before concluding the quarterly results, it is essential to highlight the credit performance indicators. The percentage of past dues decreased from 1.47% at the end of the third quarter of 2025 to 1.31% in 2026. Write-offs, after accounting for recoveries, were reported at $28 million, down from $40 million in the same period last year. The allowance for credit losses increased slightly, totaling $332 million or 0.91% of finance receivables, compared to $294 million or 0.84% at the end of June 2026.

“Cat Financial delivered another quarter of strong results. Our portfolio continues to perform well with past dues remaining at historical lows,” stated Dave Walton, the President of Cat Financial and the Senior Vice President responsible for the Financial Products Division of Caterpillar Inc. He added, “The Cat Financial team remains focused on executing our strategy and providing financial services solutions to support Caterpillar customers and dealers.”

About Cat Financial

Cat Financial operates as a vital subsidiary of Caterpillar, recognized globally as the leading manufacturer of construction and mining equipment, as well as off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. The company offers a comprehensive range of financial solutions to Cat® dealers and customers for machinery, engines, Solar® turbines, and genuine Cat parts and services.

Headquartered in Nashville, Tennessee, Cat Financial caters to a diverse global clientele with offices and subsidiaries strategically positioned across North and South America, Asia, Australia, Europe, and Africa. For further information, Cat Financial's offerings can be reviewed at cat.com.

Conclusion

The third-quarter results of Cat Financial indicate a solid financial performance with clear growth trajectories in revenue and profits. The company's ability to maintain low past dues and effectively manage credit losses enhances its stability and future outlook. Overall, these financial results position Cat Financial strongly within the market, supporting its ongoing mission of providing effective financial solutions to its global customer base.