Caterpillar Profit Jumps on Strong Demand for Power-Generation Equipment

Caterpillar's second-quarter profit has jumped due to strong demand for its power-generation and construction equipment, particularly in North America. The company's revenue grew 24% to $20.54 billion in the quarter ending June 30.

The core construction segment recorded a 35% increase in revenue, driven by non-residential investment in critical infrastructure programs, heavy construction, and data centers. CEO Joe Creed told analysts that this demand is contributing to overall construction spending levels.

Caterpillar's power and energy arm also posted 17% growth in revenue, with the company building power generators and backup power equipment under this segment. The two segments combined account for 81% of Caterpillar's total revenue.

The company raised its annual revenue growth forecast after beating second-quarter profit estimates. Shares of Caterpillar rose as much as 12% in early trading and were last up around 7%, on track for their best day in more than three months if gains hold.