CAT · 8-K · 20260804PR000040
Operating Margin Drivers
CATERPILLAR INC · 2026-08-04 · Importance 64 · Surprise 56 · No source text
Second-quarter 2026 operating profit increased 50% to $4.295 billion from $2.860 billion, while operating margin expanded to 20.9% from 17.3%. Adjusted operating margin increased to 21.9% from 17.6%, excluding $202 million of restructuring costs comprising $139 million related to non-U.S. entity divestitures and $63 million of other restructuring costs. The operating profit increase was primarily driven by higher sales volume and included $392 million of expected IEEPA tariff recoveries. Power & Energy margin rose 2.5 percentage points to 24.6%, Construction Industries margin rose 3.2 points to 23.3%, and Resource Industries margin increased 0.4 points to 14.9%.
Key facts
- Construction Industries segment profit in second quarter 2026: $1,947 million, an increase of $703 million, or 57%, compared with $1,244 million in second quarter 2025. source
- Operating profit for the second quarter of 2026 was $4.295 billion, an increase of $1.435 billion, or 50%, compared with $2.860 billion in the second quarter of 2025. source
- Power & Energy segment profit for second quarter 2026: $2,027 million, an increase of $473 million, or 30%, compared with $1,554 million in second quarter 2025. source
- Resource Industries segment profit in second quarter 2026: $693 million, an increase of $130 million, or 23%, compared with $563 million in second quarter 2025. source
- Second-quarter 2026 operating profit margin: 20.9%, compared with 17.3% for the second quarter of 2025. source
- Second-quarter 2026 adjusted operating profit margin: 21.9%, compared with 17.6% for the second quarter of 2025. source
- Consolidated profit before taxes for the three months ended June 30, 2026: $4,558 million, compared with $2,818 million for the three months ended June 30, 2025. source
- A discrete tax benefit of $26 million was recorded in the second quarter of 2026 for settlement of stock-based compensation awards. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | positive | realized | +8.5% | Consolidated profit before taxes for the three months ended June 30, 2026: $4,558 million, compared with $2,818 million for the three… |
| operating_income | positive | realized | +7.0% | Operating profit for the second quarter of 2026 was $4.295 billion, an increase of $1.435 billion, or 50%, compared with $2.860 billion in… |
| margin | positive | realized | +4.3% | Second-quarter 2026 adjusted operating profit margin: 21.9%, compared with 17.6% for the second quarter of 2025. |
| margin | positive | realized | +3.6% | Second-quarter 2026 operating profit margin: 20.9%, compared with 17.3% for the second quarter of 2025. |
| operating_income | positive | realized | +3.4% | Construction Industries segment profit in second quarter 2026: $1,947 million, an increase of $703 million, or 57%, compared with $1,244… |
| operating_income | positive | realized | +2.3% | Power & Energy segment profit for second quarter 2026: $2,027 million, an increase of $473 million, or 30%, compared with $1,554 million… |
| operating_income | positive | realized | +0.6% | Resource Industries segment profit in second quarter 2026: $693 million, an increase of $130 million, or 23%, compared with $563 million… |