Caterpillar sales surpass $20B as generators for data centers take off
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- Caterpillar posted record Q2 sales and revenue of $20.5 billion, up 24% from $16.6 billion a year earlier, lifted by higher volumes and favorable pricing across all three of its segments.
- Power generation retail sales climbed 72% year-over-year, fueled by "very strong demand for large gen[erator] sets and turbines used in data center applications," CEO Joseph Creed said on the earnings call.
- The company's $72 billion order backlog has power and energy customers placing orders through 2030, with about 59% expected to be delivered over the next 12 months, spanning hyperscalers, oil and gas, mining, and marine.
- Caterpillar is resuming production of its 10-MW medium-speed gas reciprocating engine platform — discontinued in 2022 for "limited industry opportunity" — to bring back 1.5 GW of capacity, with shipments beginning in Q4.
- The construction segment grew 35% to $8.3 billion in quarterly sales, with North American regional sales surging 50% to nearly $5.1 billion.
- Caterpillar raised full-year sales-and-revenue growth guidance to the "mid-to-high teens" even as it braces for $2.2 billion in tariff costs (excluding IEEPA refunds); the quarter included a $392 million IEEPA-related refund.
Why it matters: A $72 billion order backlog stretching to 2030 — with 59% shipping within 12 months — locks in revenue across multiple heavy-industry segments simultaneously, giving Caterpillar visibility past whatever near-term jitters hit AI-exposed chip stocks, and the construction segment's 50% North American surge signals demand beyond the data-center narrative.
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