Key facts
- Caterpillar reported a second-quarter profit of $8.17 per share, up from $4.72 a year earlier.
- Revenue increased 22% to $17.42 billion.
- The construction segment revenue grew 38%, and the power and energy segment revenue rose 22%.
- The company raised its full-year revenue forecast to a low double-digit percentage increase.
- Caterpillar reduced its estimated annual tariff impact to $2.2 billion-$2.4 billion from $2.6 billion.
Caterpillar reported a significant increase in its second-quarter profit, driven by robust demand for its power generation and construction equipment. The company's adjusted profit per share rose to $8.17, a substantial jump from $4.72 in the same period last year. Revenue also saw a healthy increase of 22%, reaching $17.42 billion.
The construction segment experienced a 38% surge in revenue, while the power and energy segment saw a 22% increase. This growth was attributed to strong customer demand in North America, Caterpillar's largest market, and benefits from dealers building inventory. The power equipment business, in particular, has been boosted by the AI infrastructure boom, with data centers investing heavily in power generation and backup solutions.
Following these strong results, Caterpillar raised its full-year revenue forecast, now expecting growth in the low double-digit percentage range, up from its previous projection of about seven percent compounded annual revenue growth. Additionally, the company revised its estimate for the annual impact of tariffs, reducing it to a range of $2.2 billion to $2.4 billion from a previous projection of $2.6 billion. These positive developments led to a 5.3% increase in Caterpillar's shares in pre-market trading.