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Sales have surged for Caterpillar and other companies in part due to increased demand for infrastructure to build data centers that support cloud computing and generative artificial intelligence.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n The heavy equipment maker\u2019s energy and transportation segment \u2014 responsible for building engines, turbines and power generators \u2014\u00a0saw Q3 sales reach $8.4 billion, up 17% over last year. Caterpillar\u2019s construction and resource industries segments also saw sales climb 7% and 2%, respectively, during the same period. However, the company\u2019s only segment with YoY profit growth was energy and transportation.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n \u201cWe continue to stay close to our largest data center customers and receive regular feedback on their long-term demand expectations,\u201d Creed said.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Caterpillar also saw its backlog of orders grow by $2.4 billion during the quarter, largely driven by its data center customers. The backlog is now at $39.8 billion, another all-time high, according to the company.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n \u201cWhat we have in place is working and generating great momentum,\u201d Creed said.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Looking ahead, Caterpillar raised its full-year guidance from the previous quarter, expecting sales and revenues to be \u201cmodestly\u201d higher versus \u201cslightly\u201d higher than last year, according to its earnings presentation<\/span><\/span>. The company\u2019s Q4 sales are also forecasted to be stronger than last year, with profitability weighed down by tariffs.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Caterpillar is anticipating tariffs to have a full-year impact between $1.6 billion and $1.75 billion, excluding mitigation and cost actions. This is in line with the company\u2019s <\/span><\/span><\/span><\/span><\/span><\/span>revised tariff estimates<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a>\u00a0released Aug. 28. CFO Andrew Bonfield said it also factors in the Trump administration\u2019s <\/span><\/span><\/span><\/span><\/span><\/span>25% tariffs<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a> on imports of medium- and heavy-duty trucks and truck parts, set to take effect Nov. 1.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Creed said the company has been taking a measured, \u201cno regrets\u201d approach to tariffs, including relatively minor sourcing changes, cost reductions and certifying more products to be compliant with the U.S.-Mexico-Canada Agreement<\/a>, rather than making hasty investment decisions.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n \u201cWe\u2019ll use everything in our toolkit when the time is right to react to the tariffs or to mitigate the tariffs,\u201d Creed said. \u201cBut I\u2019m confident we\u2019ll manage it over time.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n