Risk factor changes · CAT

What changed in Caterpillar's risk factors

Item 1A (Risk Factors) of Caterpillar's FY2025 10-K compared with its FY2024 10-K, sentence by sentence.

Newer: 10-K filed 2026-02-13 · Older: 10-K filed 2025-02-14

New in the latest 10-K 2

• The occurrence of one or more of these events may negatively impact our business, results of operations and financial condition.
• We may incur additional tax expense or become subject to additional tax exposure.

Reworded 11

Removed words are struck through; added words are highlighted.

• Should known or unknown risks or uncertainties materialize or underlying assumptions prove inaccurate, actual results could materially differ from past results and/or those anticipated, estimated or projected. 9 Table of Contents We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise.
• In addition to the factors discussed elsewhere in this report, the following are some of the important factors that, individually or in the aggregate, we believe could make our actual results differ materially from those described in any forward-looking 9 Table of Contents statements.
• The adverse effects of any such catastrophic event would be exacerbated if experienced at the same time as another unexpected and adverse event. 10 Table of Contents Commodity price changes, material price increases, fluctuations in demand for our products and services, significant disruptions to our supply chains or significant shortages of labor and material may adversely impact our financial results or our ability to meet commitments to customers.
• Increases in the prices of such commodities would increase our costs, negatively impacting our business, results of operations and financial 10 Table of Contents condition if we are unable to fully offset the effect of these increased costs through price increases, productivity improvements, cost reduction programs or hedging programs.
• Operating in different regions and countries exposes us to numerous risks, including: multiple and potentially conflicting laws, regulations and policies that are subject to change; imposition of currency restrictions, restrictions on repatriation of earnings or other restraints; imposition of new or additional tariffs or quotas; 11 Table of Contents withdrawal from or modification of trade agreements or the negotiation of new trade agreements; imposition of new or additional trade and economic sanctions laws imposed by the U.S. or foreign governments; war or acts of terrorism; and political and economic instability or civil unrest that may severely disrupt economic activity in affected countries. 11 Table of Contents The occurrence of one or more of these events may negatively impact our business, results of operations and financial condition.
• Currency devaluations result in a diminished value of funds denominated in the currency of the country instituting the devaluation. 16 Table of Contents Restrictive covenants in our debt agreements could limit our financial and operating flexibility.
• Cat Financial has also agreed under certain of these agreements 16 Table of Contents not to exceed a certain leverage ratio (consolidated debt to consolidated net worth, calculated (1) on a monthly basis as the average of the leverage ratios determined on the last day of each of the six preceding calendar months and (2) at each December 31), to maintain a minimum interest coverage ratio (calculated as (1) profit excluding income taxes, interest expense and net gain (loss) from interest rate derivatives to (2) interest expense calculated at the end of each fiscal quarter for the prior four consecutive fiscal quarter period) and not to terminate, amend or modify its support agreement with us.
• We employ a liability-driven investment strategy, where the interest rate sensitivity of the pension investments and pension obligations are aligned to reduce funded status volatility.
• These factors could significantly increase our payment obligations under the plans and, as a result, adversely affect our business and overall financial condition.
• Violations may also disrupt our business, and may result in an adverse effect on our reputation, business and results of operations or financial condition. 17 Table of Contents International trade policies may impact demand for our products and our competitive position.
• For example, a government s adoption of buy national policies or retaliation by another government against such policies could have a negative impact on our results of operations. 17 Table of Contents We may incur additional tax expense or become subject to additional tax exposure.

Removed since the previous 10-K 4

• We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise.
• The adverse effects of any such catastrophic event would be exacerbated if experienced at the same time as another unexpected and adverse event.
• Restrictive covenants in our debt agreements could limit our financial and operating flexibility.
• International trade policies may impact demand for our products and our competitive position.

Source: SEC EDGAR filings, compared sentence by sentence by EdgarStack. Sentence matching is automated and may pair or split passages imperfectly; check the linked filings before relying on any passage. A software tool, not financial advice. Not affiliated with the U.S. Securities and Exchange Commission.