Free cash flow
Caterpillar Free cash flow decreased by 12.5% to $2.69B in Q4 2025 compared to the prior quarter. Year-over-year, this metric grew by 0.1%, from $2.69B to $2.69B. Over 4 years (FY 2021 to FY 2025), Free cash flow shows an upward trend with a 9.9% CAGR. This decline may warrant attention — for this metric, higher values are generally preferred.
Analysis
How to read this metric
An increase suggests strong operational efficiency and the ability to self-fund future innovation or return capital to shareholders, while a decrease may indicate heavy capital expenditure cycles or declining operational profitability.
Detailed definition
Free cash flow represents the cash generated by a company after accounting for cash outflows to support operations and m...
Peer comparison
High-growth semiconductor and AI infrastructure peers typically prioritize reinvestment, so free cash flow margins are often compared against R&D intensity and capital expenditure requirements of industry rivals.
cf_free_cash_flowHistorical Data
| Q2 '21 | Q3 '21 | Q4 '21 | Q1 '22 | Q2 '22 | Q3 '22 | Q4 '22 | Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | $1.95B | $1.49B | $992.00M | -$33.00M | $1.99B | $2.20B | $2.31B | $1.15B | $2.99B | $3.68B | $3.47B | $1.55B | $2.68B | $3.13B | $2.69B | $579.00M | $2.57B | $3.08B | $2.69B |
| QoQ Change | — | -23.8% | -33.2% | -103.3% | >999% | +10.3% | +5.1% | -50.2% | +159.6% | +23.2% | -5.8% | -55.2% | +72.7% | +16.6% | -13.9% | -78.5% | +343.4% | +19.9% | -12.5% |
| YoY Change | — | — | — | — | +2.2% | +48.0% | +133.0% | >999% | +49.9% | +67.4% | +50.0% | +34.8% | -10.3% | -15.1% | -22.4% | -62.7% | -4.2% | -1.5% | +0.1% |
Free cash flow at Other Companies
Frequently Asked Questions
- What is Caterpillar's free cash flow?
- Caterpillar (CAT) reported free cash flow of $2.69B in Q4 2025.
- How has Caterpillar's free cash flow changed year-over-year?
- Caterpillar's free cash flow increased by 0.1% year-over-year, from $2.69B to $2.69B.
- What is the long-term trend for Caterpillar's free cash flow?
- Over 4 years (2021 to 2025), Caterpillar's free cash flow has grown at a 9.9% compound annual growth rate (CAGR), from $6.11B to $8.92B.
- What does free cash flow mean?
- The cash a company has left over after paying for its operating expenses and capital investments.