Caterpillar (CAT) risk factors: FY2025 10-K

1. Our business and the industries we serve are highly sensitive to global and regional economic conditions.
2. Catastrophic events could materially adversely affect our business, results of operations and/or financial condition.
3. Commodity price changes, material price increases, fluctuations in demand for our products and services, significant disruptions to our supply chains or significant shortages of labor and material may adversely impact our financial results or our ability to meet commitments to customers.
4. Our global operations are exposed to political and economic risks, commercial instability and events beyond our control in the countries in which we operate.

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1. The success of our business depends on our ability to develop, produce and market quality products that meet our customers’ needs.
2. We operate in a highly competitive environment, which could adversely affect our sales and pricing.
3. Increased information technology security threats and more sophisticated computer crime pose a risk to our systems, networks, products and services.
4. Our business is subject to the inventory management decisions and sourcing practices of our dealers and our OEM customers.
5. We may not realize all of the anticipated benefits of our acquisitions, joint ventures or divestitures, or these benefits may take longer to realize than expected.
6. Union disputes or other labor matters could adversely affect our operations and financial results.
7. Unexpected events may increase our cost of doing business or disrupt our operations.

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1. Disruptions or volatility in global financial markets could limit our sources of liquidity, or the liquidity of our customers, dealers and suppliers.
2. Failure to maintain our credit ratings could increase our cost of borrowing and could adversely affect our cost of funds, liquidity, competitive position and access to capital markets.
3. Our Financial Products segment is subject to risks associated with the financial services industry.
4. Changes in interest rates or market liquidity conditions could adversely affect Cat Financial's and our earnings and/or cash flow.Interest rates
5. An increase in delinquencies, repossessions or net losses of Cat Financial customers could adversely affect its results.
6. Currency exchange rate fluctuations affect our results of operations.
7. Restrictive covenants in our debt agreements could limit our financial and operating flexibility.
8. Sustained increases in funding obligations under our pension plans may impair our liquidity or financial condition.

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1. Our global operations are subject to a wide range of trade and anti-corruption laws and regulations.
2. International trade policies may impact demand for our products and our competitive position.
3. We may incur additional tax expense or become subject to additional tax exposure.
4. Costs associated with lawsuits or investigations or adverse rulings in enforcement or other legal proceedings may have an adverse effect on our results of operations.
5. New regulations or changes in financial services regulation could adversely impact Caterpillar and Cat Financial.
6. We are subject to stringent environmental laws and regulations that impose significant compliance costs.
7. The Company’s amended and restated bylaws provide that the Court of Chancery of the State of Delaware will be the exclusive forum for certain legal actions between the Company and its shareholders, which could discourage claims or limit the ability of the Company’s shareholders to bring a claim in a judicial forum viewed by the shareholders as more favorable for disputes with the Company or the Company’s directors, officers or other employees.

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