Caterpillar Inc.
Caterpillar's order backlog reached a record $72.1 billion in the second quarter of 2026, fueled by robust demand for power generation and construction equipment.
"This is the first time in company history that we have generated over $20 billion in sales and revenues in a single quarter," Chairman and CEO Joe Creed said.
"This milestone underscores both the essential work our customers do every day and the dedication of Caterpillar employees worldwide to solving our customers' toughest challenges. Strong order rates and a growing backlog reflect broadening momentum across all three of our primary segments."
Earnings And Margins
Revenue rose 24% from $16.6 billion. GAAP diluted EPS increased to $7.77 from $4.62, while adjusted EPS rose from $4.72. GAAP profit climbed to $3.593 billion from $2.179 billion.
Operating profit increased 50% to $4.295 billion. Operating margin expanded to 20.9% from 17.3%, while adjusted operating margin rose to 21.9% from 17.6%.
Higher sales volume contributed $3.113 billion to revenue growth, while favorable pricing added $595 million. Backlog increased $34.6 billion year over year and $9.4 billion sequentially.
Segment Performance
Power & Energy sales rose 17% to $8.238 billion, while segment profit increased 30% to $2.027 billion and margin expanded to 24.6%. Growth included higher sales of large reciprocating engines, turbines and related services, primarily for data-center applications.
Construction Industries sales climbed 35% to $8.346 billion, with segment profit up 57% to $1.947 billion. Resource Industries sales increased 20% to $4.648 billion, while profit rose 23% to $693 million.
During the earnings call, Creed said the company saw softer sales to end users in the Middle East within its Construction Industries segment.
Financial Products revenue gained 10% to $1.145 billion, and segment profit increased 32% to $328 million.
Cash Flow And Capital Returns
Enterprise operating cash flow totaled $4.4 billion. Machinery, Power & Energy operating cash flow reached $5.7 billion, while free cash flow was $5.1 billion.
Caterpillar ended the quarter with $6.7 billion in enterprise cash and returned $2.2 billion to shareholders, including $1.5 billion through share repurchases and $700 million through dividends.
Tariffs And Outlook
Results included $392 million in expected IEEPA tariff recoveries. Adjusted EPS excluded 40 cents per share of restructuring costs.
Caterpillar expects full-year sales growth in the mid-to-high teens, up from its previous expectation for low-double-digit growth.
It projects about $2.2 billion in tariff costs, approximately $3.5 billion in MP&E capital expenditures and $300 million to $350 million in restructuring costs.
CAT Stock Price Activity: Caterpillar shares were up 11.30% at $923.84 during premarket trading on Tuesday, according to Benzinga Pro data.
