Caterpillar's Profits Soar Amid Data Center Boom

Caterpillar's fortunes have undergone a significant turnaround in recent quarters, thanks to a surge in orders for construction equipment amid a nationwide buildout of data centers and backup power equipment. The company has seen its profits soar after being upended by Washington's move to curb imports last year.

In the second quarter, Caterpillar reported revenue growth of 24% to $20.54 billion, with its core construction segment revenue increasing 35% in that period. The power and energy arm posted 17% growth in revenue during the same time.

The company's order backlog has reached a record high of $72.1 billion, following orders worth $9.4 billion in the April to June quarter. Caterpillar also lowered its tariff costs forecast for the full year to around $2.2 billion from an earlier estimate of $2.2 billion to $2.6 billion.