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Caterpillar’s power and energy unit nears construction as growth engine
In the second quarter, power and energy revenue rose 17% year over year to more than $8.2 billion, nearly matching construction’s $8.3 billion.
Caterpillar is leaning further into power and energy as a growth driver, with the unit posting more than $8.2 billion in second-quarter revenue, a 17% year-over-year increase that nearly matched the $8.3 billion generated by the company’s traditional construction segment, according to Yahoo Finance. Yahoo Finance reports that Caterpillar’s operating profit from the power and energy division, just over $2 billion, surpassed construction’s, a shift tied in the article to demand from data centers building out AI infrastructure. The outlet also points to a strong momentum backdrop for the broader business, with Caterpillar recording its first-ever $20 billion sales quarter at $20.5 billion, up 24% from $16.6 billion a year earlier. Profit per share rose to $7.77, and adjusted operating margin expanded to 21.9% from 17.6%, alongside $4.4 billion in operating cash flow. Order flow and workforce spending are part of the same picture, with Caterpillar’s order backlog at $72 billion at the end of June, up 92% from a year earlier. The company also announced a new Arkansas manufacturing workforce commitment worth up to $3 million under its five-year, $100 million Building the Future Workforce Initiative, the fifth allocation in the program.