CAT · 10-Q · 2026Q3 · Full report

Supply Chain Tariff Impact

CATERPILLAR INC · 2026-11-04 · Importance 64 · Surprise 42

Caterpillar recorded $128 million of IEEPA tariff recoveries in third-quarter 2026 and $520 million for the first nine months, recognized in cost of goods sold and included in operating profit. Full-year 2026 tariff costs are expected to be about $2.2 billion excluding approximately $520 million of IEEPA recoveries; fourth-quarter costs are expected to be around $600 million, about $200 million below fourth-quarter 2025. Management expects roughly 50% of tariff costs in Construction Industries and 25% each in Power & Energy and Resource Industries. Nine-month unfavorable manufacturing costs included higher material costs and tariffs, including $813 million in Construction Industries and $584 million in Resource Industries.