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Caterpillar CAT Standard Product Warranty Accrual

Standard Product Warranty Accrual at other companies

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Other financials

Income statement

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Revenue$20.5B+24.0%
Gross profit$7.8B+34.7%
Operating income$4.3B+50.2%
Net income$3.6B+64.9%
EPS (diluted)$7.77+68.2%

Balance sheet

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Cash & equivalents$6.7B+23.4%
Total debt$36.9B+14.2%
Total equity$21.3B+9.4%
Total assets$102.61B+13.6%

Cash flow

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Operating cash flow$4.4B+40.0%
CapEx$587.0M+5.8%
Free cash flow$3.8B+47.4%

Valuation

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Market cap$393.92B+95.8%
P/E36.3×+15.0×
P/S5.3×+2.1×

Profitability

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Gross margin94.2%-5.9pp
Operating margin17.5%-0.7pp
Net margin14.5%-0.4pp
FCF margin14.3%+0.1pp

Returns & leverage

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Return on equity43.5%-11.8pp
Debt / equity1.7×+0.1×
Current ratio1.4×0.0×

Where this comes from

Reported directly by Caterpillar in its filing.

Tagged under the XBRL concept us-gaap:ProductWarrantyAccrual.

The source filing: Caterpillar’s 10-K, filed February 13, 2026.

Filed
Feb 13, 2026, 10:18 AM EST
Fiscal year
FY2025
Accession
0000018230-26-000008
(Millions of dollars)20252024
Warranty liability, beginning of period$1,700$1,894
Reduction in liability (payments)(836)(824)
Increase in liability (new warranties)762630
Warranty liability, end of period$1,626$1,700

Item 8.Financial Statements and Supplementary Data.

FAQ

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 $1.7B 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?
The estimated liability for future costs related to repairing or replacing products under standard warranty terms. This is based on historical failure rates and expected costs. It serves as a proxy for product quality and long-term reliability expectations.

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