Caterpillar Raises Revenue Forecast, Reports 22% Q1 Sales Jump and $62.7B Backlog
CAT•Caterpillar raised its full-year revenue outlook to low double-digit growth and long-term 2024-30 revenue targets to 6–9% after reporting record order backlog of $62.7 billion driven by AI-focused data center demand. First-quarter revenue jumped 22% to $17.42 billion with profit of $5.54 per share and mixed tariff effects.
1. AI-Driven Demand Fuels Equipment Sales
Caterpillar’s power generation and construction segments saw surging sales as technology firms expanded data center infrastructure for AI workloads, lifting power and energy revenue 22% to $7.03 billion and construction revenue 38% to $7.16 billion in Q1.
2. Record Backlog and Revenue Growth
Order backlog reached an all-time high of $62.7 billion at quarter-end, underpinning overall revenue growth of 22% to $17.42 billion—a four-and-a-half year peak—and EPS of $5.54 versus $4.62 consensus expectations.
3. Upgraded Forecasts and Long-Term Guidance
Full-year revenue growth forecast was raised to the low double digits from about 7%, while long-term 2024-30 targets were lifted to 6–9% from 5–7%, reflecting sustained demand strength across key end markets.
4. Tariff Impact and Cost Dynamics
Unfavorable manufacturing costs and tariffs trimmed results, but full-year tariff impact was reduced to $2.2–2.4 billion from $2.6 billion, with Q2 tariff costs pegged at $700 million following a shift to Section 232 levies post-Supreme Court decision.
