Compliance Status
Doubtful
Screened on Oct 19, 2026 · AAOIFI Standard 21
Acceptable
Is Caterpillar Inc. (CAT) halal? Doubtful. Based on AAOIFI screening, Caterpillar Inc. passes the business activity screen but has financial ratios approaching AAOIFI limits with a compliance score of 60/100 (Grade: B).
Quote this verdict
HalalScreener rates Caterpillar Inc. (CAT) Doubtful, 60/100, grade B under AAOIFI Standard 21, screened Oct 19, 2026. Source: https://halalscreener.app/en/stock/CAT
Business activity
Its main business is permissible, with some incidental non-compliant revenue.
Company debt
Well clear of the limitHow much the company borrows, compared to its total value. AAOIFI allows up to 30%.
The verdict above is final and free.
Pro members can verify every number behind it: interest-bearing deposits, prohibited income breakdown, and the full AAOIFI math.
Screened according to AAOIFI Standard 21
What this means for you
You may own CAT, with caution
Its numbers sit close to AAOIFI limits. Cautious investors may prefer alternatives or ask a scholar first.
Purification amount is Pro
We have screened CAT's prohibited income, but the exact share you would need to purify is part of Pro.
CAT: Is Caterpillar Inc. Halal?
Caterpillar Inc.
$730.76
-0.66%
Market Cap: 335.9B
Get an email if CAT's halal status changes
We re-screen Caterpillar Inc. daily. If the verdict moves, you hear about it the same day.
Free. One click sets it up, and you can unsubscribe any time.
About Caterpillar Inc.
Caterpillar Inc., a global enterprise founded in 1925 and headquartered in Deerfield, Illinois (having previously operated as Caterpillar Tractor Co. until its rebranding in 1986), is a premier manufacturer and vendor of heavy construction and mining equipment, diesel and natural gas power units, and industrial gas turbines across the world. The company's extensive offerings are organized into several operational divisions: Construction Industries: This segment delivers a broad spectrum of machinery for construction projects, including asphalt pavers, versatile backhoe and skid steer loaders, various sizes of excavators (from compact to heavy-duty), compactors, road-building equipment like cold planers and motorgraders, pipelayers, site preparation tractors, telehandlers, and utility vehicles, alongside a range of wheel loaders and track-type equipment. Resource Industries: Dedicated to the mining sector, this division supplies powerful equipment such as electric rope and hydraulic shovels, draglines, rotary drills, specialized hard rock vehicles, and a diverse fleet of mining, off-highway, and articulated trucks. It also offers longwall miners, wheel dozers, fleet management systems, autonomous vehicle solutions, crucial machinery components, selected work tools, and comprehensive safety and performance solutions for mining operations. Energy & Transportation: This segment focuses on power generation and propulsion systems. It provides reciprocating engines, generator sets, integrated power solutions, industrial turbines and associated services, remanufactured engines and parts, centrifugal gas compressors, and diesel-electric locomotives with related components and services. These products serve critical sectors including marine, oil and gas, industrial applications, and electric power generation. Financial Products: This segment supports customers with a variety of financial services, such as operating and finance leases, installment sale agreements, working capital loans, and wholesale financing schemes. It also offers insurance and risk management products tailored for vehicles, power generation facilities, and marine vessels. All Other: This encompassing segment is responsible for manufacturing essential consumables and components like filters, fluids, undercarriage parts, and ground engaging tools.
Sector: Industrials · Industry: Agricultural - Machinery
Why This Stock Is Doubtful
- Business activity: the share of revenue from an activity AAOIFI treats as prohibited falls on either side of the 5% limit depending on how one revenue line is read.
Stocks are marked Doubtful when financial ratios pass but approach AAOIFI thresholds. Consider consulting a qualified scholar for a definitive ruling.
Shariah Compliance Status
See which ratio caused the failure.
See the exact debt ratio, interest income %, and prohibited revenue that caused the failure. Know before you sell or hold.
AI Compliance Insight
PROInstitutional-grade Shariah analysis
See why CAT is rated Doubtful with institutional-grade analysis
Business Activity Screen
Share not disclosedChecks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)
The filing's own figures put this revenue on either side of the AAOIFI 5% limit, depending on how one revenue line is read. The verdict is Doubtful, and purification uses the higher reading.
- •Cat Financial lending and leasing: 3.5% to 5.3% of revenues (fiscal 2025), depending on whether operating-lease rentals count
Use the Purification Calculator to compute exactly how much of your dividend income to donate.
Source: the company's Form 10-K for the fiscal year ended 2025-12-31, whose figures support two readings. View its filings on SEC EDGAR
The verdict above is final and free.
Pro members can verify every number behind it: interest-bearing deposits, prohibited income breakdown, and the full AAOIFI math.
Screened according to AAOIFI Standard 21
Compliance History
Doubtfulnow
since Sep 2026
Halal
until the change above
Tracked since May 2026. Updates automatically on each re-screen.
More Industrials Stocks
Know the day CAT's verdict changes
A free account keeps watch on 3 stocks and emails you when a verdict moves. You also get 3 questions for the AI Scholar. No card needed.
Frequently Asked Questions
Is Caterpillar Inc. (CAT) halal to invest in?
Why did Caterpillar Inc. get a B compliance rating?
What could change Caterpillar Inc.'s Shariah verdict?
How often is Caterpillar Inc. re-screened for Shariah compliance?
Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.
Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.