{"id":248174,"date":"2025-10-29T15:52:11","date_gmt":"2025-10-29T15:52:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/248174\/"},"modified":"2025-10-29T15:52:11","modified_gmt":"2025-10-29T15:52:11","slug":"caterpillar-beats-estimates-as-ai-boom-drives-demand-for-energy-equipment","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/248174\/","title":{"rendered":"Caterpillar beats estimates as AI boom drives demand for energy equipment"},"content":{"rendered":"<p class=\"c-article-body__text text-pr-5\">Caterpillar <a href=\"https:\/\/www.theglobeandmail.com\/investing\/markets\/stocks\/CAT-N\/\" target=\"_self\" rel=\"nofollow noopener\" title=\"https:\/\/www.theglobeandmail.com\/investing\/markets\/stocks\/CAT-N\/\">CAT-N<\/a> topped third-quarter profit and revenue estimates on Wednesday as a boom in AI technologies drove demand for its energy equipment, sending its shares up 12 per cent.<\/p>\n<p class=\"c-article-body__text text-pr-5\">The industrial equipment maker\u2019s energy and transportation unit has fueled much of the company\u2019s growth in recent quarters as AI-driven investments in power-hungry data centers have boosted demand for its power-generation systems.<\/p>\n<p class=\"c-article-body__text text-pr-5\">President Donald Trump\u2019s focus on energy projects has also aided the segment, which also makes mining equipment such as excavators and giant shovels and contributes 40 per cent to Caterpillar\u2019s overall revenue.<\/p>\n<p class=\"c-article-body__text text-pr-5\">\u201cPower-generation sales are expected to continue sustainably growing as CAT maintains their market leadership in backup power generation for data center applications,\u201d said Third Bridge analyst Ryan Keeney.<\/p>\n<p class=\"c-article-body__text text-pr-5\">The unit posted a 17-per-cent rise in third-quarter sales to about US$7.2-billion.<\/p>\n<p class=\"c-article-body__text text-pr-5\">However, industrial machinery makers including Caterpillar are grappling with higher costs from Trump\u2019s expansive tariffs on imports, while weak demand and elevated interest rates are limiting their ability to pass on the burden to customers.<\/p>\n<p class=\"c-article-body__text text-pr-5\">The company said on Wednesday it expects annual tariff costs between US$1.6-billion and US$1.75-billion, compared with its prior expectation of US$1.5-billion to US$1.8-billion.<\/p>\n<p class=\"c-article-body__text text-pr-5\">Tariff headwinds are expected to be larger in the final quarter of the year, compared to the third quarter, finance chief Andrew Bonfield told analysts in an earnings call.<\/p>\n<p class=\"c-article-body__text text-pr-5\">During the second quarter, companies across the globe flagged a combined annual financial hit of between US$16.2-billion and US$17.9-billion and nearly US$15-billion for 2026, according to a Reuters tariff tracker.<\/p>\n<p class=\"c-article-body__text text-pr-5\">The company, seen as a bellwether for the global industrial economy, reported quarterly revenue of US$17.6-billion, beating Wall Street\u2019s expectation of US$16.77-billion, according to data compiled by LSEG.<\/p>\n<p class=\"c-article-body__text text-pr-5\">Its mainstay construction segment posted a 7-per-cent rise in revenue to US$6.76-billion, helped by price hikes.<\/p>\n<p class=\"c-article-body__text text-pr-5\">The company reported a quarterly adjusted per share profit of US$4.95, topping the average estimate of US$4.52.<\/p>\n<p class=\"c-article-body__text text-pr-5\">Caterpillar\u2019s shares are up about 60 per cent so far this year, outperforming the S&amp;P 500 Industrials index\u2019s 17-per-cent rise. <\/p>\n","protected":false},"excerpt":{"rendered":"Caterpillar CAT-N topped third-quarter profit and revenue estimates on Wednesday as a boom in AI technologies drove demand&hellip;\n","protected":false},"author":2,"featured_media":248175,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[62,276,277,49,48,49174,61],"class_list":["post-248174","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-ca","tag-canada","tag-streetwise","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/248174","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=248174"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/248174\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/248175"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=248174"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=248174"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=248174"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}