Caterpillar Inc. (CAT)[Tv]

Key Developments

• Caterpillar secured a landmark $2.1 billion contract with Chevron and Microsoft for Project Kilby, a 2.7-gigawatt, 20-year natural gas power agreement to fuel a massive AI data center in West Texas—solidifying the company’s role as a foundational supplier in the AI infrastructure boom.
• CAT announced a strategic pivot to triple its Power Generation segment sales by 2030, backed by a record $63 billion order backlog and aggressive expansion of large reciprocating engine output, signaling a structural evolution beyond cyclical industrial demand.
• Caterpillar raised its full-year 2026 sales growth outlook to the low double digits, significantly above its previous 5–7% long-term target, reflecting growing confidence in sustained demand from hyperscalers and industrial clients.
• Management confirmed unprecedented lead times extending into 2029, validating a global supply-demand imbalance and confirming CAT’s pricing power and industrial dominance in mission-critical power systems.
• CAT achieved an 8% dividend increase, marking its 32nd consecutive year of raises—underscoring financial discipline and a durable business model even amid a transformative shift toward AI-driven infrastructure.