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Caterpillar Earnings Boosted by AI Data Center Power Demand
['Jacob Lorinc']
Transport Topics
Caterpillar Inc. got an earnings boost from selling power generation equipment to AI data centers in its fourth quarter, helping drive quarterly results that topped Wall Street’s expectations.
The company’s power and energy segment — now Caterpillar’s biggest and fastest-growing segment — posted a 25% profit jump compared to the year-earlier period thanks to higher demand for its power-generating equipment.
The power and energy segment sells generators, diesel and natural gas engines, and industrial gas turbines that produce electricity for buildings, factories and data centers.
Caterpillar forecasts $2.6 billion in incremental tariff costs this year.
In comparison, the equipment maker said in October it anticipated 2025 tariff costs would be between $1.6 billion to $1.75 billion.