Caterpillar expands engine and turbine production to meet data center demand

Caterpillar said on its Q3 2026 earnings call that it has taken steps to expand production of its large reciprocating engines and turbines and to increase capacity in response to demand from data center customers. The company reported its highest sales quarter ever, with net sales and revenue of $20.7 billion, up 17% year over year, and a backlog of $78 billion, nearly double the prior year. Caterpillar recognized $600 million in tariff costs in Q3, with construction industries about 50% of that total and power and energy and resource industries each 25%, and forecast full-year tariff costs of about $2.2 billion, excluding IEEPA refunds.