A record-revenue quarter
On 4 August Caterpillar reported its results for the second quarter of 2026. Revenue rose 24% to $20.54 billion, up from $16.57 billion a year earlier. It was the first time in the company's history that it earned more than $20 billion in a single quarter. The main contributions came from $3.1 billion of higher sales volume and from price increases, which added another $595 million. The company explains that volumes grew mainly on the back of equipment sales to end users. Sales rose in all three primary segments.
Operating profit increased 50% to $4.3 billion. The operating margin rose to 20.9% from 17.3% a year earlier, and the adjusted operating margin to 21.9% from 17.6%. Earnings per share were $7.77 against $4.62, and adjusted earnings per share $8.17 against $4.72. The adjusted figures exclude restructuring costs. In the second quarter these costs rose mainly because of the sale of several businesses outside the United States: the loss on those transactions came to $139 million.
"The strong pace of incoming orders and our growing backlog reflect momentum that extends across all three of our primary segments," said Caterpillar chairman and CEO Joe Creed. The size of the backlog is not disclosed in the press release.
Construction equipment: up 35%
The fastest-growing segment was Construction Industries. Its sales rose 35% to $8.35 billion, profit rose 57% to $1.95 billion, and the margin improved to 23.3% from 20.1%. Sales by region:
- North America: $5.07 billion, +50%;
- Latin America: $676 million, +25%;
- EAME (Europe, Africa and the Middle East): $1.46 billion, +23%;
- Asia-Pacific: $1.06 billion, +3%.
The company attributes the growth in EAME to higher sales volume to end users and a favourable euro exchange rate. The report contains no separate figures for the CIS or Central Asia.
Mining and energy
The Resource Industries segment increased sales by 20% to $4.65 billion. Equipment for mining, heavy construction, quarrying and aggregates grew 22% to $3.69 billion, and here too growth came mainly from sales to end users. The rail business grew 15% to $883 million on the back of international locomotive deliveries. In the EAME region the segment's external sales rose 22% to $713 million. Resource Industries' profit rose 23% to $693 million, although higher manufacturing costs took $158 million off it.
The Power & Energy segment grew 17% to $8.24 billion. The fastest growth, 29% to $3.1 billion, came in power generation equipment: large reciprocating engines and turbines, primarily for data centres. Oil and gas added 9%, and industrial also 9%.
Tariffs, finance and shareholder returns
The quarter's operating profit included $392 million in expected refunds of tariffs that the United States had imposed under the International Emergency Economic Powers Act (IEEPA). According to Caterpillar's quarterly report on Form 10-Q, these tariffs cost the company about $1 billion in 2025 and in 2026, before US customs stopped collecting them.
The financial products segment, which includes Cat Financial, increased revenue by 10% to $1.15 billion, including growth of 9% to $137 million in the EAME region. Past dues at Cat Financial fell to 1.31% at the end of the quarter from 1.62% a year earlier. Operating cash flow for the quarter was $4.4 billion; the company spent $1.5 billion on share buybacks and $0.7 billion on dividends. Caterpillar ended the quarter with $6.7 billion in cash.
What to consider when buying Cat equipment
In Kazakhstan, repair and rebuilding of Caterpillar equipment is handled by Borusan Cat. According to AmCham Kazakhstan, the company has operated in the country since 1999 and has a component rebuild centre in Karaganda that employs more than 400 people.
The quarterly report offers no direct conclusions about prices and delivery times in Kazakhstan. But two points from it are worth bearing in mind when planning purchases:
- Prices are rising. Price increases brought Caterpillar $595 million in the quarter, of which $309 million came from construction equipment. Check commercial offers for their date and validity period.
- Demand is high. Construction equipment sales grew 50% in North America and 23% in the EAME region, and the company speaks of a growing backlog. It makes sense to order a machine for next season early and to fix the delivery date with the dealer straight away.
Those running Cat equipment at quarries and mines should agree an overhaul and component rebuild schedule with their dealer in advance, so as not to lose time at the height of the season.
Sources
- Caterpillar Inc. (PR Newswire, PANews), "Caterpillar Reports Second-Quarter 2026 Results", 2026-08-04: https://smb.panews.com/article/Caterpillar-Reports-Second-Quarter-2026-Results/6a71c0021d8459b6854a708e
- Construction Briefing, "Cat’s revenue surpasses $20bn in a single quarter for the first time", 2026-08-05: https://www.constructionbriefing.com/news/cats-revenue-passes-20bn-in-a-single-quarter-for-the-first-time/8128415.article
- U.S. Securities and Exchange Commission (EDGAR), "CATERPILLAR INC - Form 10-Q - FY2026", 2026-10-22: https://www.sec.gov/Archives/edgar/data/0000018230/000001823026000046/cat-20260630.htm
- AmCham Kazakhstan, "Supporting Kazakhstan's Mining Industry: Borusan Cat in Karaganda", 2026-07-29: https://amcham.kz/amcham-news/supporting-kazakhstans-mining-industry-borusan-cat-in-karaganda/
