Caterpillar Reports Record $63 Billion Order Backlog Driven by Data Center Demand
Caterpillar Inc. reported a record backlog of $63 billion as of the first quarter, up significantly from $35 billion in early 2025. A large portion of this growth is attributed to demand for Caterpillar's power generation equipment used primarily in data centers rather than traditional construction sectors. The company’s Power and Energy segment saw a 41% year-over-year increase in sales, driven by large reciprocating engines and turbines utilized as backup or primary generators at data center facilities. This has pushed the annual run rate for this segment above $11 billion. Caterpillar is expanding its production capacity to meet demand, with most of the capital investments scheduled from 2027 through 2029. Caterpillar’s stock price has nearly doubled since hitting a 52-week low and currently trades at around $815 per share, reflecting investor confidence in sustained AI infrastructure growth. The company is set to report second-quarter results on August 4, with analysts watching for continued backlog expansion and strong revenue conversion.
Topics: AI infrastructure demand backlog growth Caterpillar data centers