October 30, 2026 - Caterpillar reported its highest quarterly sales on record during the third quarter, supported by data center development and growing demand across its power generation, construction and mining businesses.

The company’s backlog reached $78 billion, nearly twice its level a year earlier. During Thursday’s earnings call, CEO Joseph Creed said Caterpillar is expanding production capacity for large reciprocating engines and turbines to meet demand from data center customers.

Power and Energy

Power and Energy sales increased 18% year over year to $8.8 billion, while segment profit rose 31% to $2.1 billion.

Power generation sales grew 30%, largely reflecting data center demand. Oil and gas sales also recorded double-digit growth, supported by aftermarket parts for reciprocating engines and engines used in gas compression.

North America and the Europe, Middle East and Africa region accounted for approximately 82% of the segment’s external sales and revenue. Sales declined in Latin America and Asia-Pacific.

Construction Industries

Construction Industries sales increased 18% to nearly $8 billion, with gains across all geographic regions. Segment profit rose 33% to $1.8 billion.

North America represented more than half of external sales, followed by Europe, the Middle East and Africa, Asia-Pacific, and Latin America.

Higher sales volumes and pricing offset increased manufacturing costs, including freight and capacity expansion expenses.

Caterpillar announced last month that it would invest $1 billion in a new facility in Sanford, North Carolina, to manufacture compact construction equipment serving small contractors and growing businesses.

Resource Industries

Resource Industries sales rose 15% to $4.6 billion, although results fell below expectations because of mining shipment and commissioning delays and fewer locomotive deliveries, Creed said.

Sales to end users increased 4%. Caterpillar makes most of its sales through dealers and original equipment manufacturers.

Segment profit increased 14% to $622 million as higher volumes and pricing outweighed increased manufacturing and material costs, including tariffs.

Tariffs and Outlook

Caterpillar recorded $600 million in third-quarter tariff costs, excluding refunds claimed under the International Emergency Economic Powers Act.

CFO Kyle Epley said the total was consistent with the year-earlier period and $200 million below the fourth quarter of 2025. Construction Industries accounted for approximately half of tariff costs, with Power and Energy and Resource Industries each representing about one-quarter.

For the fourth quarter, Caterpillar expects moderate year-over-year sales growth and higher operating profit margins. Its full-year outlook calls for sales growth in the mid-to-high teens compared with 2025.

The company projects approximately $2.2 billion in full-year tariff costs, excluding IEEPA refunds. Management said strong orders and an expanding backlog support its expectation of another record year.