Caterpillar reported record fourth-quarter sales and revenue of $19.1 billion, driven by strong demand across construction, mining and power equipment segments, positioning the company with solid momentum heading into 2026.
The Irving, Texas-based manufacturer recorded double-digit sales growth in its three primary business segments during the quarter. However, operating profit declined 9% year over year to $2.7 billion, reflecting higher tariff-related manufacturing expenses and restructuring costs. These pressures were partially offset by strong turbine and engine orders from oil and gas producers and data center developers.
A notable boost to its order book came from a recent agreement to supply two gigawatts of generators for a multibillion-dollar data center development in West Virginia. Excluding that contract, Caterpillar’s order backlog still reached a record $51 billion at year-end, underscoring sustained demand across key markets.
The company’s power and energy segment delivered the strongest performance in the quarter. Sales rose 23% year over year to $9.4 billion, while operating profit climbed 25% to $1.8 billion. Power generation sales alone surpassed $10 billion in 2025, reflecting heightened demand from hyperscale data center operators seeking rapid deployment solutions.
Construction and mining equipment sales also increased compared with the previous year, although segment profitability was pressured by unfavorable tariff costs and pricing dynamics. Caterpillar cited nearly $1 billion in manufacturing impacts and $282 million in higher restructuring expenses during the quarter.
For the full year, Caterpillar reported sales and revenue of $67.6 billion, up 4% from 2024. Operating profit totaled $11.2 billion, down 15% year over year, as tariff volatility added a net incremental headwind of $1.7 billion despite cost-control and pricing mitigation measures.
Looking ahead, the company forecasts 2026 sales growth of 5% to 7%. However, it anticipates incremental tariff costs of $2.6 billion and restructuring expenses between $300 million and $350 million. Management indicated that while power and energy demand remains robust, construction and mining orders may fluctuate quarter to quarter.
Caterpillar also announced a leadership transition. Tony Fassino, president of the construction segment, will retire at the end of May after three decades with the company. Rod Shurman is set to assume the role beginning Feb. 1.
With record backlog levels and accelerating demand in power generation particularly from data center expansion Caterpillar enters 2026 with strong visibility, even as tariff pressures and restructuring efforts continue to weigh on margins.
