Caterpillar has followed a strong conclusion to its 2025 fiscal year with even more growth to its construction equipment and power and energy revenue.
For the first quarter of 2026, Cat’s construction industries revenue rose 38% to $7.2 billion, driven primarily by a $1.5 billion jump in sales volumes compared to the first quarter of 2025. Caterpillar also saw a $356 million benefit from growing price realization (the net difference between a machine’s listed price and the actual selling price).
In Caterpillar’s power and energy segment, which covers its engine business, revenue was up 22% year-over-year to $7 billion, driven by an $840 million sales volume increase.
Caterpillar attributed these notable jumps in sales volume to changes in dealer inventories and higher sales of equipment.
In the first quarter, Caterpillar sold 7,387 new financed machines in the U.S., according to Fusable’s EDA equipment finance data. Popular models included the 255, 265 compact and 275 compact track loaders. (EDA is owned by Fusable, parent company of Equipment World.)
Looking at North America, construction industries revenue was up 48% to $4.3 billion — the largest percentage increase in this segment among all Caterpillar’s regions. Power and energy revenue rose 33% year-over-year to $3.5 billion. Consolidated North American revenue saw a 32% increase to $10.2 billion.
Consolidated revenue among all Caterpillar’s business segments was up 22% to $17.4 billion in the first quarter.
Consolidated operating profit rose 20% to $3.1 billion, driven by a $940 million positive sales volume impact but hampered by an additional $710 million in manufacturing costs, largely reflecting higher tariffs.
Caterpillar’s construction business saw a 50% increase in operating profit to $1.54 billion, while the power and industry segment’s operating profit came in at $1.45 billion, up 13%.
Caterpillar reported during the earnings call that first-quarter costs were about $600 million, and the company expects to see about $700 million in tariff costs during its second quarter, compared to around $400 million in the second quarter of 2025.
Caterpillar estimates its full-year 2026 tariff costs between $2.2 billion to $2.4 billion. Recently appointed CFO Kyle Epley said during the earnings call that this updated tariff cost estimate does “not currently include any IEPA-related refunds as the result of the Supreme Court's decision.”
