Caterpillar Inc. (CAT)
Caterpillar is the world's leading manufacturer of construction and mining equipment, recognisable by its iconic yellow machines found on building sites globally.
Is Caterpillar Inc. a good stock for a UK beginner?
The honest version: There's no rating here and nothing for sale. In its favour: Dominant market position in heavy machinery. Worth weighing: High sensitivity to global economic cycles.
Is this normal for this company?
Each figure against the range this same company has produced recently. Neither end of a range is the good end.
Share price divided by the earnings actually reported over the four most recent quarters. The range is the same calculation at each of this company's last few results, so roughly the past year.
Profit as a share of sales, from the company's own quarterly statements. The range covers the 5 quarters we hold, and the figure shown is its most recent one.
How these ranges are built
Every number here is the company's own reported figure, not a comparison with other companies. The ranges come from this company's own results and its share price. Where it reports in a different currency from the one its shares trade in, the price-to-earnings range is left out rather than mixing the two.
What does Caterpillar Inc. do?
Caterpillar makes the heavy-duty machinery used to build roads, dig mines, and construct energy infrastructure. Sales of these massive machines, plus the parts and services that keep them running for years, are what bring in the money. Because their equipment is essential for large-scale global projects, investors often watch the health of the construction and mining industries to gauge how well the company might perform.
On our factor screen it looks strongest on growth and momentum, and weakest on value.
- ✓Pays a dividend - about 0.8% a year
- ✓Growing - revenue up about 24% over the year
- !High P/E of 36 - big growth is already priced in
- !Carries a lot of debt - roughly 2.3x its equity
- ✓Strong return on shareholder money (ROE 57%)
- Growth screens high
- Value screens low
Does Caterpillar Inc. pay a dividend?
Yes - Caterpillar Inc. currently pays a dividend of about 0.8% a year, which is £7.80 a year for every £1,000 invested (the yearly payout as a share of the price). A dividend is a slice of profit handed to shareholders; the yield moves as the price moves, and a company can cut or stop it. An ISA doesn't shelter the US tax on this one →
What do the numbers say about Caterpillar Inc.'s dividend?
There's no rating here, and we don't judge whether the dividend will continue - that would be advice. Here are the figures income investors usually look at, and what each one means, so you can weigh it up yourself.
Figures are from the latest available data and can be distorted by one-off results. Past payments don't predict future ones, and a dividend can be cut at any time. This lays out the numbers to help you understand them - it is not a view on what will happen.
Most recent ex-dividend date: 20 Jul 2026. To receive a dividend you must already own the shares before the ex-dividend date; become a holder on or after it and the previous owner keeps that payment. Why the price usually falls that morning →
Does Caterpillar Inc. have more cash or more debt?
It holds about $5.94B in cash against about $45.15B of debt - so it has net debt of about $39.20B. Debt is not automatically a problem - it funds growth - but it has to be serviced and repaid, which matters more when profits wobble.
From the latest reported balance sheet. Cash and debt levels change, and some borrowing is normal - this is context, not a judgment.
What do Caterpillar Inc.'s numbers mean?
How has it performed?
Growth of £1,000, the worst fall, and year by year
Over about 2 years to 2026-09-11. This is the share price only - reinvesting the dividends would add to it. And it's the USD return - as a UK investor your actual £ return also moves with the exchange rate. Past performance is not a guide to the future, and it could just as easily have fallen.
How much has Caterpillar Inc. actually fallen?
Over the last 2 years of daily prices, Caterpillar Inc. fell as much as −34% from a high to a later low. Falls like this are normal when you own a share.
Past falls are not a forecast - it can fall further, or recover.
How has it done year by year?
Calendar-year total return - the share price with dividends reinvested - from adjusted closing prices. The current year is only part-complete. Past returns are not a guide to the future.
A closer look at the numbers
Ownership, earnings history, where the money goes, and the outlook range
Does the share price tell you if it's cheap or expensive?
Who owns Caterpillar Inc.?
About 73% of Caterpillar Inc., or about 73 in every 100 shares, is held by big institutions such as pension and index funds. The rest, roughly 27%, is held by the public and smaller investors.
What this does and doesn't tell you
This is a recent snapshot of the share register, and it moves. We don't read anything into who owns what - a high institutional share is common for any large listed company and is not a signal about it.
Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.
Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.
How much money does Caterpillar Inc. make?
Revenue and profit by quarter, and how much of each sale turns into profit.
Where does each £100 of Caterpillar Inc.'s sales go?
A rough split of the latest full-year figures: of every £100 of sales, about £70 covers making the product or service, £15 goes on running costs, tax and interest, and about £15 is left as profit. Margins vary a lot by industry, and one-off items can distort a single year.
When does Caterpillar Inc. report earnings, and how did recent quarters go?
Caterpillar Inc. is next scheduled to report on about 2026-10-29 - dates can move, and we don't predict results; this just tells you when to look.
‘Beat’ and ‘missed’ are against what analysts expected, not whether the business is doing well.
| Reported | Expected EPS: The earnings per share analysts expected for the quarter - the average of their forecasts. 'Beating' or 'missing' is measured against this number. | Actual EPS | vs expected |
|---|---|---|---|
| 2026-08-04 | $6.20 | $8.17 | Beat +32% |
| 2026-04-30 | $4.64 | $5.54 | Beat +19% |
| 2026-01-29 | $4.71 | $5.16 | Beat +10% |
| 2025-10-29 | $4.52 | $4.95 | Beat +9% |
| 2025-08-05 | $4.90 | $4.72 | Missed -4% |
| 2025-04-30 | $4.34 | $4.25 | Missed -2% |
Across the last 6 quarters here, Caterpillar Inc. came in ahead of what analysts expected 4 times. One quarter is noise, not a trend.
See who else reports over the next two weeks →
Where these figures come from
Each quarter a company reports its results against a consensus of analyst forecasts. The figures here are reported versus expected earnings per share from published results; the expectation is that analyst consensus, not our view. Report dates are estimates and can move.
What are the scenarios for Caterpillar Inc.?
An illustrative range for the year ahead — not a prediction or a price target.
What are the pros, cons and common questions?
The case each way, and the questions people ask
Successful transition to electric and autonomous machinery
Shift away from traditional mining and fossil fuels
What are the pros and cons of Caterpillar Inc.?
A balance check, not a score or verdict.
- Dominant market position in heavy machinery
- Strong brand recognition and loyalty
- High profitability relative to the capital invested
- High sensitivity to global economic cycles
- Significant share price volatility
- High valuation multiples compared to historical averages
- Potential slowdown in major infrastructure projects
- Rising costs for raw materials like steel
- Increased competition from lower-cost international manufacturers
The write-up's own warning lights — if these start happening, the case above changes.
- A sustained, multi-year decline in global mining activity
- A significant drop in the company's profit margins
Common questions about Caterpillar Inc.
Does Caterpillar Inc. pay a dividend?
Yes - Caterpillar Inc. currently pays a dividend of about 0.8% a year. Dividends are a share of profit paid to holders; the yield moves with the price and payouts can be cut.
When does Caterpillar Inc. report earnings next?
Caterpillar Inc. is next scheduled to report results on about 2026-10-29. Report dates are estimates and can move; this is a diary note for when to look, not a forecast of the outcome.
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This plain-English summary was auto-generated on 2026-08-02 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.