Caterpillar (CAT) Q1 earnings
A worker washes a Caterpillar crawler dozer at Ideal Tractor in West Sacramento, California, on Aug. 1, 2022.
David Paul Morris | Bloomberg | Getty Images
Caterpillar reported a higher first-quarter profit on Thursday, led by strong demand for its power generation and construction equipment, sending its shares up nearly 5% in premarket trading.
The company, seen as a bellwether for the global industrial economy, reported an adjusted per-share profit of $5.54 in the January-March period, compared with $4.25 a year earlier.
Over the last year, Caterpillar’s power and energy segment has seen a windfall from data center clients seeking power generation and backup equipment to fuel surging use of artificial intelligence.
The company’s overall revenue rose 22% to $17.42 billion. Its core construction segment revenue jumped 38%, while the power and energy segment revenue was up 22%.
Analysts had noted in a pre-earnings note that the company’s earnings would have benefited from dealers building fresh inventory of its construction equipment and strong execution of its pending AI orders.
Caterpillar said its construction equipment segment was aided by higher sales volume and better pricing, but partly offset by higher manufacturing costs tied to tariff costs.
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