Caterpillar Boosts Sales Outlook Amid Strong Q2 Earnings

Caterpillar Inc.'s second-quarter earnings call focused on backlog and capacity growth, with management raising its 2026 sales outlook. The company now expects mid- to high teens growth in sales and revenues for that year.

The backlog reached $72 billion, a sequential increase of $9 billion and about 92% year-over-year. Chairman and CEO Joe Creed noted that 59% of the backlog is scheduled for delivery within 12 months, with some Power & Energy customers ordering through 2030.

Caterpillar reported second-quarter sales and revenues of $20.54 billion, a 24% increase from the same period last year. The company's adjusted earnings per share topped the Zacks Consensus Estimate at $8.17. Construction Industries sales rose 35%, Power & Energy advanced 17%, and Resource Industries increased 20%.

The company is restarting production of a 10-megawatt gas reciprocating engine platform, which will add about 1.5 gigawatts of capacity. Caterpillar also delivered its first units under the Major Projects rental venture, a dealer-owned rental program for large transportation, energy, manufacturing, and data center developments.