Discontinued — last reported Q2 '22

Standard Product Warranty Accrual

Current Liabilities

Caterpillar Standard Product Warranty Accrual decreased by 4.4% to $1.63B in Q4 2025 compared to the prior quarter. Year-over-year, this metric declined by 4.4%, from $1.70B to $1.63B. Over 5 years (FY 2020 to FY 2025), Standard Product Warranty Accrual shows relatively stable performance with a 0.2% CAGR. This is a positive signal — lower values indicate better performance for this metric.

Analysis

StatementBalance Sheet Statement
SectionCurrent Liabilities
CategoryRisk
SignalLower is better
VolatilityModerate
First reportedQ3 2014
Last reportedQ2 2022

How to read this metric

A significant increase may indicate rising product quality issues or higher-than-expected repair costs.

Detailed definition

The estimated liability for future costs related to repairing or replacing products under standard warranty terms. This...

Peer comparison

Standard for all manufacturing companies providing product warranties.

Metric ID: standard_product_warranty_accrual

Historical Data

5 periods
 Q4 '21Q4 '22Q4 '23Q4 '24Q4 '25
Value$1.69B$1.76B$1.89B$1.70B$1.63B
QoQ Change—+4.3%+7.6%-10.2%-4.4%
YoY Change—+4.3%+7.6%-10.2%-4.4%
Range$1.63B – $1.89B
CAGR-3.7%
Avg YoY Growth-0.7%
Median YoY Growth-0.0%
Current Streak2 quarters decline

Frequently Asked Questions

What is Caterpillar's standard product warranty accrual?
Caterpillar (CAT) reported standard product warranty accrual of $1.63B in Q4 2025.
How has Caterpillar's standard product warranty accrual changed year-over-year?
Caterpillar's standard product warranty accrual decreased by 4.4% year-over-year, from $1.70B to $1.63B.
What is the long-term trend for Caterpillar's standard product warranty accrual?
Over 5 years (2020 to 2025), Caterpillar's standard product warranty accrual has grown at a 0.2% compound annual growth rate (CAGR), from $1.61B to $1.63B.
What does standard product warranty accrual mean?
Money set aside to cover the expected costs of fixing products under warranty.

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