Cat Financial reports higher revenue, lower profit in Q4, full-year 2025
Originations up 10.3% in Q4
Cat Financial reported year-over-year revenue growth in the fourth quarter and full year of 2025, while profit declined, reflecting higher earning assets, lower financing rates and the absence of prior-year tax benefits.
Fourth-quarter revenue increased 7.5% year over year to $949 million, driven primarily by higher average earning assets, according to a Jan. 29 Cat Financial release. Retail new business, or originations, volume in the quarter increased 10.3% YoY to $4.1 billion, while Q4 profit declined 61.1% YoY to $139 million, largely due to the absence of a non-cash tax benefit recorded in the prior-year period.
Credit performance improved, with past dues declining 19 basis points (bps) YoY to 1.37% at year-end, according to the release. Meanwhile, net write-offs for 2025 totaled $101 million, down 12.2% YoY, while the allowance for credit losses as a percentage of finance receivables decreased 5 bps YoY to 0.86% in Q4.
For the full year, Cat Financial reported revenue of $3.6 billion, an increase of 4.2% from 2024, according to the release. Retail new business volume for the year increased 7.7% to $14.3 billion, with growth across all segments except mining.
Cat Financial’s full-year total assets increased 12.4% year over year to $38.3 billion, according to the release. Profit declined 9.7% to $540 million, while profit before income taxes rose 37.7% to $734 million, primarily reflecting the absence of a loss on a non-U.S. divestiture recorded in 2024.
MARKET REACTION: Shares of Caterpillar [NYSE: CAT] were up 3.4% or $21.96 from market open to $665.24 as of market close Jan. 29, following the company’s earnings release. It has a market capitalization of $301 billion.
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