Caterpillar $CAT reported second-quarter sales and revenues of $20.5 billion on Tuesday, a 24% increase from $16.6 billion a year earlier and the first time the company has surpassed $20 billion in a single quarter, the company said.
The equipment maker posted $20.5 billion in quarterly sales for the first time in its history, driven by demand for construction and power gear
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Caterpillar $CAT reported second-quarter sales and revenues of $20.5 billion on Tuesday, a 24% increase from $16.6 billion a year earlier and the first time the company has surpassed $20 billion in a single quarter, the company said.
Adjusted profit per share came in at $8.17, up from $4.72 in the second quarter of 2025. That exceeded analyst expectations of $6.20 per share, according to CNBC. Caterpillar shares were up 9% in premarket trading.
The Construction Industries segment was the primary growth driver, with sales up 35% to $8.3 billion; within that, North American construction demand surged 50%, the company said. The Power & Energy segment added 17% revenue growth to reach $8.2 billion, with power generation sales — predominantly tied to data center projects — climbing 29%. Between them, the two segments represented 81% of the company's total revenue, according to CNBC.
Operating profit rose 50% to $4.3 billion, and operating profit margin expanded to 20.9% from 17.3% a year earlier. The company also recorded $9.4 billion in new orders over the period, lifting its cumulative order backlog to an all-time high of $72.1 billion, the company said.
"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 in a statement. "Strong order rates and a growing backlog reflect broadening momentum across all three of our primary segments."
Caterpillar also updated its annual outlook, guiding for full-year revenue growth in the mid-to-high-teens percentage range — a step up from its previous low-double-digit target — while narrowing its tariff cost estimate to roughly $2.2 billion from a prior range of $2.2 billion to $2.6 billion. Operating profit in the quarter included $392 million in expected tariff recoveries under the International Emergency Economic Power Act, the company said.
The results mark a sharp turnaround from the pressures Caterpillar flagged in its first quarter, when unfavorable manufacturing costs of $710 million — driven by higher tariff costs — weighed on margins across all three business segments. At that time, the company reported adjusted earnings per share of $5.54 on revenue of $17.4 billion.
Resource Industries revenue rose 20% to $4.6 billion in the second quarter, driven by higher equipment sales to end users and increased international locomotive deliveries. The company deployed $2.2 billion in cash during the quarter for share repurchases and dividends.
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