My number one pick for AI infrastructure. Started accumulating CAT when tech started getting my attention.
Caterpillar’s shares soared after the company said demand for its power generators remained strong and it raised its sales-growth forecast for the year.
The company’s third-quarter profit beat analysts’ estimates. Shares rose as much 13%, on track for their best day since 2009. Caterpillar said it expects sales for 2025 to be modestly higher than in 2024, bumping up its earlier forecast of slightly higher sales this year.
The Irving, Texas, maker of mining and construction machinery posted earnings of $2.3 billion, or $4.88 a share, down from $2.46 billion, or $5.06 a share, a year earlier.
Stripping out certain one-time items, Caterpillar logged adjusted earnings of $4.95 a share, handily beating the average analyst estimate of $4.53 a share.
Overall revenue, which includes the company’s financing business, rose 10% to a record $17.6 billion, surpassing the average analyst projection for $16.8 billion.
Caterpillar’s engine business was again the standout performer of the equipment maker’s quarterly results. A 31% increase in sales of power generators, mostly to data-center developers, pushed up third-quarter engine-segment sales and profit by 17% from a year earlier. Caterpillar is expanding production of generators with a $725 million addition to its Lafayette, Indiana, plant.
Robust demand for generators contributed to a $2.4 billion increase in Caterpillar’s order backlog during the quarter to a record $39.8 billion.
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- Reminder: I am inappropriately exuberant about the Bakken, US economy, and the US market.
- I am also inappropriately exuberant about all things Apple.
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