The artificial intelligence infrastructure boom helped construction equipment and engine manufacturer Caterpillar surpass $20 billion in sales and revenues in a single quarter for the first time in the company’s history.
Caterpillar’s second-quarter sales and revenues increased 24% year over year and reached $20.5 billion, according to a Tuesday (Aug. 4) earnings press release. The company saw growth across its three major segments, with power and energy up 17%, construction industries up 35% and resources industries up 20%.
In addition, Caterpillar’s order backlog leapt 92% year over year to reach $72 billion, per a Tuesday presentation.
Caterpillar’s power and energy business benefited from “very strong demand” for large generator sets and turbines used by data centers. The company’s sales of these power generation products to users grew 72%, Caterpillar Chairman and CEO Joe Creed said during a Tuesday earnings call.
Caterpillar’s construction industries business delivered its first units to Major Projects, a Cat-dealer-owned rental joint venture that supports customers with multibillion-dollar projects across North America, including data center builds, Creed said.
Looking ahead, Caterpillar expects its sales and revenues to see “strong growth” in the third quarter and mid- to high-teens growth in full-year 2026, according to the presentation.
Creed said during the call that Caterpillar’s outlook is supported by “the breadth and duration of our record backlog.”
“There is a lot of discussion around AI demand,” Creed said during the call. “We have constant discussions with our customers, and all I can tell you is what our discussions with them is no one is slowing down at the moment. In fact, if we can get more units out, they’re asking us to give them more units.”
PYMNTS reported in January that data center construction had emerged as a primary demand driver at Caterpillar. Customers are using Caterpillar generator sets and turbines as primary power sources, not just backup systems, to support hyperscale and enterprise data centers. Data center and energy projects also drive demand for the equipment contractors use for site preparation, earthmoving and material handling.
It was reported in July that the five companies spending the most on AI data centers in the United States—Alphabet, Amazon, Meta, Microsoft and Oracle—added about $350 billion to their debt obligations over the past five years to finance their efforts.
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