Caterpillar Exceeds $20 Billion in Sales Amid Production Constraints

Caterpillar (CAT) has cleared $20 billion in sales for the first time in its history, but despite this milestone, the stock has fallen 6.5% over the past three months.

The company's backlog is a record $72 billion, with lead times on gas engines for prime power running into the back half of 2028 and 2029. Turbines have slightly longer lead times, while some Power & Energy customers are placing orders as far out as 2030.

To address production constraints, Caterpillar is restarting a 10-megawatt medium-speed gas reciprocating engine platform it stopped building in 2022, which will bring about 1.5 gigawatts of production capacity back online with minimal investment.