Caterpillar's $72 Billion Backlog: Decoupled from Construction Cycle
Caterpillar's stock has surged over 90% in the past year to around $815 per share. The company's massive power generation backlog has reached a staggering $72 billion, with 59% of that amount expected to be delivered within the next year.
The AI boom and data centers are driving this growth, with strong demand for large generator sets and turbines increasing by 72%. This is not just a matter of increased sales; it's also a sign that Caterpillar's customers are looking to power these new technologies well into the future, with some contracts extending as far out as 2030.
Caterpillar's biggest challenge now is meeting this demand. The company plans to restart production of its 10-megawatt gas engine platform, bringing back online about 1.5 gigawatts of capacity. Shipment will begin before the end of the year.