Caterpillar Sets Record with $20.5 Billion Quarterly Sales, Boosts Full-Year Guidance

Caterpillar has achieved a record-breaking $20.5 billion in quarterly sales and revenue for the first time in its history, surpassing its previous high of $16.57 billion from the same period last year.

The company's CEO, Joe Creed, marked this milestone as a testament to broadening momentum across all three primary segments: Power & Energy, Construction Industries, and Resource Industries.

Orders grew sequentially by $9 billion to $72 billion, up roughly 92% from the year-ago quarter, with all three segments contributing to the increase. The backlog surge was led by a 35% jump in sales for Construction Industries, followed by a 17% growth in Power & Energy.

Despite expectations of tariff costs weighing on Caterpillar's margins, the company recognized $392 million in IEEPA tariff recoveries and saw underlying tariff costs come in below projected levels. As a result, management raised full-year sales guidance to mid-to-high-teens growth and expects machine, energy, and transportation free cash flow in the top half of its $6 billion to $15 billion target range.