Caterpillar Engine and Turbine Production Expansion for Data Center Demand
What happened
On its Q3 2026 earnings call, reported November 3, 2026, Caterpillar said 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 accounting for about 50% of that amount. The reports do not state which tariff measures produced those costs or any effective date for the production expansion.
Generated by AI from the reports · updated 3 hours ago
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- Utility DiveCaterpillar 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.
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