Caterpillar Quietly Riding AI Data Center Boom

Caterpillar, a 100-year-old manufacturer, is quietly benefiting from the AI data center buildout. Its Q2 revenue hit $20.54 billion, a record high for the company, with EPS of $8.17 against an estimate of $6.1974.

The operating margin expanded to 20.9%, and net income jumped 64.89% year over year. The backlog underscores the setup, growing sequentially by $9 billion to $72 billion, up roughly 92% year over year.

Management said some Power & Energy customers have placed orders as far out as 2030, with no signs of slowing down in demand for data center power generation equipment. Caterpillar's CEO Joe Creed noted that customers are asking for more units if they can get them, indicating a strong market.