CaterpillarCAT

01Power & Energy sales were $8.238 billion in Q2 2026, an increase of $1.201 billion or 17 percent compared with Q2 2025 The company anticipates growth in Power Generation for both reciprocating engines and turbines and turbine-related services, driven by increasing energy demand to support data center build-out related to cloud computing and generative AI Prime power demand continues to trend higher for turbines and turbine-related services and for reciprocating engine products and services The order backlog at June 30, 2026 was approximately $72.1 billion, about $9.4 billion higher than Q1 2026, with the largest increase in Power & Energy Of the total backlog, approximately $29.2 billion was not expected to be filled in the following twelve months

02Q2 2026 favorable price realization was $595 million on consolidated sales Power & Energy achieved favorable price realization of $212 million in Q2 2026 Construction Industries achieved favorable price realization of $309 million in Q2 2026 The company anticipates favorable price realization in each of the three primary segments in Q3 2026 Adjusted operating profit margin was 21.9 percent for Q2 2026 compared with 17.6 percent for Q2 2025

03Cat Financial creates a competitive moat by bundling captive financing, leasing, and equipment insurance that independent equipment makers cannot replicate. This integration lowers customer acquisition friction, locks buyers into the CAT ecosystem for the equipment's useful life, and generates recurring fee income while improving credit visibility on the customer base. The declining past-due rate during a period of rapid volume growth suggests underwriting discipline rather than growth-at-any-cost.

04In Resource Industries, customer product utilization is high and the age of the fleet remains elevated The company now expects rebuild activity in 2026 to increase moderately as compared to 2025 Most key commodities remain above investment thresholds Reciprocating engine aftermarket parts demand shows continued momentum Services revenues are expected to grow in 2026 as compared to 2025