Caterpillar Power Sales Surge 32% and Backlog Swells to $63 Billion
OSK•Caterpillar’s shares surged 150% over the past year as its Power and Energy division saw sales rise 32% and power generation segment climb 48% on data center demand. Backlog hit a record $63 billion—a 79% increase—driven by orders stretching into 2028, while Resource Industries margins fell 700 basis points to 10%.
1. AI-Driven Sales Boom
Caterpillar’s Power and Energy division reported a 32% increase in sales over the past year, led by a 48% jump in power generation equipment used in data centers.
2. Record Backlog Growth
The company’s order backlog swelled to a record $63 billion, up 79% year-over-year, with customers committing to delivery schedules extending into 2028.
3. Margin Pressure in Resource Industries
The Resource Industries segment saw its margin contract by 700 basis points to 10% in the first quarter, reflecting cost headwinds in mining equipment operations.
4. Outlook and Production Challenges
Caterpillar faces the task of scaling manufacturing capacity to fulfill long-dated orders while managing cost pressures to protect profit margins on high-value contracts.
