Caterpillar reported $20.5 billion in sales and revenue for the second quarter, a 24% jump from $16.6 billion a year earlier and a quarterly record. The beat was broad, construction, power and energy, and resource industries all posted double-digit growth, but the standout was power generation, where retail sales climbed 72% on demand for large generator sets and turbines bound for data centers. CEO Joseph Creed said customers are placing orders through 2030 and that no one is slowing down at the moment, a line that will either age well or become a case study in peak-cycle hubris.
Power segment drives the upside
Power and energy segment sales reached $8.2 billion, up 17%, with segment profit rising 30% to $2 billion. The company is restarting production of its 10-MW medium-speed gas reciprocating engine platform, shelved in 2022 for limited industry opportunity, and expects to ship 1.5 GW of capacity starting in the fourth quarter. The $72 billion backlog carries 59% delivery visibility over the next 12 months, a figure that includes hyperscalers alongside oil and gas, mining, and marine buyers.
Construction strength concentrated in North America
Construction segment sales hit $8.3 billion, up 35%, with segment profit up 57% to $1.9 billion. North America did the heavy lifting: regional sales surged 50% to nearly $5.1 billion. Caterpillar also began delivering equipment to Major Projects, a rental joint venture for multibillion-dollar North American projects, supplementing existing dealer rental channels. The resource industries segment added $4.6 billion in sales, up 20%, with profit up 23% to $693 million, helped by the July acquisition of Skycatch for AI-driven mining analytics.
Guidance raised, tariff bill quantified
The company lifted full-year sales growth guidance to the mid-to-high teens percentage range over 2025 and plans to expand capacity in the second half. CFO Kyle Epley put a number on the trade overhang: $2.2 billion in tariff costs for the year, excluding any IEEPA refunds. The quarter already benefited from a $392 million refund tied to revoked International Emergency Economic Powers Act tariffs. That refund helped the headline; the $2.2 billion forecast is the cost of doing business under the current regime.