Caterpillar makes construction and mining machines, diesel and natural gas engines, industrial gas turbines and locomotives for contractors, mines, energy companies and data center builders. It is the world's largest maker of construction and mining equipment, and its yellow Cat bulldozers and excavators work in nearly every country. Customers buy or rent machines through independent Cat dealers, while its engines and turbines generate electricity and push natural gas through pipelines. Caterpillar earns money from equipment sales and from the parts and repairs that dealers supply over a machine's working life. It was formed in 1925 when California's Holt and Best tractor companies merged, and it is based in Irving, Texas.
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
Investors weighing Caterpillar against Corning are choosing between industrial infrastructure and technological innovation. Caterpillar, a construction and mining equipment manufacturer, generated $67.6 billion in revenue in FY 2025, up 4.3%, though net income fell to $8.9 billion from $10.8 billion the previous year. Corning, a materials science company supplying optical communications and display technologies, posted stronger growth. Its FY 2025 revenue reached $15.6 billion, up 19.1%, whilst net income surged to $1.6 billion from $506 million. The company secured a multi-billion-dollar supply agreement with AT&T extending through 2030. Caterpillar trades at a forward P/E of 30.0x versus Corning's 49.7x, reflecting Corning's faster growth trajectory. Corning's optical communications business grew over 30% year-over-year, driven by AI data centre demand, with ambitious revenue targets of $20 billion by end-2026 and $40 billion by 2030. Despite Caterpillar's record backlog and reliable dividend, Corning's AI infrastructure exposure offers more compelling growth potential for patient investors.
Jim Cramer identified Caterpillar as a potential buying opportunity after the stock fell 24% in the third quarter. He highlighted the company's growing role in supplying power for data centres as a key growth driver. Caterpillar secured a 2-gigawatt natural gas generator order from American Intelligence & Power in January for its Monarch Compute Campus, with deliveries scheduled from September 2026 through August 2027. Second-quarter sales rose 24% year-over-year to approximately $20.5 billion, whilst adjusted profit per share increased to $8.17 from $4.72. The company faces approximately $2.2 billion in full-year tariff costs. Caterpillar trades at roughly 29 times forward earnings, compared with 16 times for competitor Cummins. Hedge fund ownership declined slightly from 87 funds in Q1 to 84 in Q2.
Caterpillar and Waste Management are highlighted as strong dividend-paying industrial stocks for reliable income. Caterpillar reported Q2 revenue of $20.5 billion, up 24% year-over-year, with earnings of $7.77 per share. The company returned $2.2 billion to shareholders, including $700 million in dividends. Its stock is up 43% this year, yielding 0.8% with a $6.52 per share dividend that has increased for 32 consecutive years. Waste Management posted Q2 revenue of $6.68 billion, up from $6.43 billion previously, with net income of $785 million. The company returned $1.04 billion to shareholders, including $379 million in dividends. Despite being down 6% this year, its dividend yield stands at 1.8% with a $3.78 per share payout, marking 23 consecutive years of increases.
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.