Caterpillar’s investments grew 33.5% in 2025 compared to 2024, continuing a growing trend over the last five years.
Its Power & Energy segment led the investment, with $1.774 billion, followed by Financial Products, with $1.341 billion.
In 2025, Caterpillar allocated its capital expenditures to fund operational commitments and strategic growth initiatives. These funds supported the three fundamental pillars: commercial excellence, leadership in advanced technology, and the transformation of its various internal work processes.
Caterpillar’s investments
The company concentrated investments in the Power & Energy segment to expand the production capacity of large engines. In addition, it prioritized autonomy technologies, alternative fuels, and electrification. In doing so, it sought to strengthen profitability and ensure long-term operational sustainability.
At the same time, it completed the acquisition of RPMGlobal for approximately $790 million. This strategic move aims to lead the mining software market. It also promotes advanced digital solutions that optimize the operational lifecycle and reinforce technological efficiency.
The following shows the trend in Caterpillar’s investments (capital expenditures) in millions of dollars:
- 2019: 2,669.
- 2020: 2,115.
- 2021: 2,472.
- 2022: 2,599.
- 2023: 3,092.
- 2024: 3,215.
- 2025: 4,286.
Competition
Caterpillar has consolidated Mexico as the hub of its global manufacturing strategy. It operates plants in Torreón, Acuña, Monterrey, Ramos Arizpe, Reynosa, San Luis Potosí, and Tijuana. These facilities supply construction, resources, and energy, integrating the country into its global chain.
In the competitive environment, the company faces Komatsu and John Deere in heavy machinery. The rivalry focuses on technological innovation, operational efficiency, and independent distributor networks. In addition, the context requires adjustments in the face of trade policies and persistent inflationary pressures.
In 2025, consolidated revenues totaled $67.589 billion, with annual growth of 4%. The increase was mainly due to demand in Power & Energy, which rose 12%. This offset lower sales volumes in the construction segment.
However, net income stood at $8.884 billion, a 17.7% drop compared to 2024. The decline was due to higher manufacturing costs, restructuring expenses of $445 million, and a higher effective tax rate, despite solid operating cash flow.