Caterpillar designs and manufactures heavy machinery and engines for construction, mining, energy, and rail projects. It sells heavy equipment, engines, parts, and services worldwide, and also provides financing options and aftermarket maintenance and repair. The company differentiates itself through its global scale, integrated sales-partssupport-financing ecosystem, and a large maintenance network that keeps customers’ fleets running. Its goal is to help customers complete large-scale projects safely, efficiently, and sustainably, while supporting communities and environmental responsibility through initiatives like the Caterpillar Foundation.
Company Size
10,001+
Company Stage
IPO
Headquarters
Irving, Texas
Founded
1925
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Annual incentive bonus plan
Medical, dental, and vision coverage
Paid time off plan (Vacation, Holiday, Volunteer, Etc.)
401k savings plan
Health savings account (HSA)
Flexible spending accounts (FSAs)
Disability benefits
Life Insurance
Parental leave
Healthy Lifestyle Programs
Employee Assistance Programs
Voluntary Benefits and Employee Discounts
Tuition Reimbursement
Career Development
Bank of America has maintained its buy rating and $989 price target for Caterpillar after the industrial equipment maker secured 283 megawatts in AI-backed orders. The company has become an unexpected beneficiary of the artificial intelligence boom, as data centres require massive amounts of electricity and power equipment. Caterpillar posted its first quarter above $20 billion in sales during Q2, up 24% to $20.5 billion. Power generation retail sales surged 72% on demand for large generator sets and turbines for data centres. The company's backlog reached $72 billion, with power and energy customers placing orders through 2030. The latest catalyst came from Atlas Energy Solutions, which announced agreements with an unnamed frontier AI lab for two data centres using Caterpillar equipment.
Caterpillar announced plans to invest approximately $1 billion in a new manufacturing facility in Sanford, North Carolina, dedicated to producing compact track loaders and telehandlers. The expansion supports the company's Cat Compact strategy, targeting small contractors and growing businesses across construction, landscaping, agriculture, and material handling sectors. The facility will incorporate automation, robotics, and digital production systems. Caterpillar will not expand headcount but instead prepare its existing 2,000-person Sanford workforce for technologically advanced roles. Local officials approved incentives totalling up to $85.5 million. Lee County authorised tax rebates worth up to $46 million, whilst Sanford City Council approved $39.5 million. Full incentives require Caterpillar to meet the $1 billion investment threshold and maintain at least 1,950 positions averaging roughly $65,500 annually. Caterpillar reported 2025 sales of $67.6 billion.
Caterpillar Inc. has entered into an agreement to acquire John Fabick Tractor Company, a Cat dealer with over 100 years of service across portions of Missouri, Illinois, Wisconsin, and Michigan's Upper Peninsula. The acquisition aims to support a seamless ownership transition whilst maintaining strong customer service. "Caterpillar and Cat dealers share a common mission of solving our customers' toughest challenges," said Joe Creed, Caterpillar chairman and CEO. Fabick operates 37 locations across its service territory. The transaction requires regulatory approval and is expected to close within 30 days. Caterpillar reported 2025 sales and revenues of $67.6 billion.
Caterpillar reported strong second-quarter 2026 results, with revenue increasing 24% year-on-year to $20.5 billion. The construction and heavy machinery company's earnings per share reached $7.77. The company's order backlog now stands at a record $72 billion, up $35 billion from the previous year. Caterpillar is benefiting from AI-related infrastructure demand, which is providing multiyear revenue visibility and reducing its dependence on traditional construction cycles. Analysts have set an average price target of $975 for the stock, which currently trades around $800 per share. However, the company's trailing P/E ratio has risen above 35, significantly higher than industry averages and its historical norm. Despite the elevated valuation, the company's strong demand outlook and reduced cyclicality support its position amongst industrial stocks.
Caterpillar's shares have fallen 26% from their 52-week high, but the company holds a $72 billion order book, nearly matching its $74.7 billion in trailing twelve-month revenue. The backlog grew 92% year-over-year, with 59% expected for delivery within twelve months. Power & Energy drives growth, with second-quarter sales to power generation users up 72% on data centre demand. Lead times for gas engines extend into late 2028 and 2029. The company converted a Kansas plant in under twelve months to meet demand. Construction Industries saw sales to users grow 22% in the second quarter, the sixth consecutive quarter of growth. Management expects full-year 2026 growth despite anticipated dealer inventory reductions in the fourth quarter. The company is already taking orders into 2029 and 2030.