{"id":44747,"date":"2026-06-23T15:08:51","date_gmt":"2026-06-23T10:08:51","guid":{"rendered":"https:\/\/www.my-equipment.com\/blog\/?p=44747"},"modified":"2026-06-23T15:11:32","modified_gmt":"2026-06-23T10:11:32","slug":"caterpillar-construction-equipment-revenue-jumps-by-38-in-2026","status":"publish","type":"post","link":"http:\/\/www.my-equipment.com\/blog\/2026\/06\/caterpillar-construction-equipment-revenue-jumps-by-38-in-2026\/","title":{"rendered":"Caterpillar Construction Equipment: Revenue Jumps by 38% In 2026"},"content":{"rendered":"<p><a href=\"https:\/\/www.my-equipment.com\/caterpillar\"><b>Caterpillar construction equipment <\/b><\/a><span style=\"font-weight: 400;\">kicks off 2026 with a strong first quarter, delivering major gains in its construction equipment and power business segments. After a strong finish to 2025, the company seems to be continuing that momentum, particularly in North America, where demand for equipment remained surprisingly strong despite continuing concerns about tariffs and manufacturing costs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The biggest headline from Caterpillar\u2019s most recent earnings report was the sharp increase in the construction industry&#8217;s revenue. The segment made $7.2 billion in Q1 2026, up 38% from the same quarter a year ago. Much of that jump came from higher machine sales volumes and stronger pricing in several equipment categories.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"http:\/\/www.my-equipment.com\/blog\/2026\/06\/caterpillar-construction-equipment-revenue-jumps-by-38-in-2026\/#Construction_Equipment_Sales_Keep_Rising\" >Construction Equipment Sales Keep Rising<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"http:\/\/www.my-equipment.com\/blog\/2026\/06\/caterpillar-construction-equipment-revenue-jumps-by-38-in-2026\/#North_America_Delivered_the_Biggest_Growth\" >North America Delivered the Biggest Growth<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"http:\/\/www.my-equipment.com\/blog\/2026\/06\/caterpillar-construction-equipment-revenue-jumps-by-38-in-2026\/#Power_and_Energy_Business_Keeps_Growing\" >Power and Energy Business Keeps Growing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"http:\/\/www.my-equipment.com\/blog\/2026\/06\/caterpillar-construction-equipment-revenue-jumps-by-38-in-2026\/#Higher_costs_but_operating_profit_up\" >Higher costs, but operating profit up<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"http:\/\/www.my-equipment.com\/blog\/2026\/06\/caterpillar-construction-equipment-revenue-jumps-by-38-in-2026\/#Tariff_concerns_continue_to_loom_over_the_industry\" >Tariff concerns continue to loom over the industry<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"http:\/\/www.my-equipment.com\/blog\/2026\/06\/caterpillar-construction-equipment-revenue-jumps-by-38-in-2026\/#What_This_Means_for_the_Equipment_Market\" >What This Means for the Equipment Market<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Construction_Equipment_Sales_Keep_Rising\"><\/span><b>Construction Equipment Sales Keep Rising<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Caterpillar said sales volume increased by almost $1.5 billion during the quarter due to higher equipment demand. The company also gained from higher price realization, which added $356 million. In simple, Caterpillar was selling more machines and getting more for them.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That mix is important because a lot of manufacturers have struggled to hold on to margins over the past year as the cost to make things has gone up. Caterpillar, at this point, seems better than most at managing that balancing act.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The company\u2019s small equipment range also did well in terms of financing activity. EDA equipment finance data shows Caterpillar financed 7,387 new machines in the U.S. in the first quarter. The most active models were the Cat 255, 265, and 275 compact track loaders, which continue to be sought after by contractors for construction and site work projects.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"North_America_Delivered_the_Biggest_Growth\"><\/span><b>North America Delivered the Biggest Growth<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">North America was Caterpillar\u2019s strongest region in the quarter. Region revenue from construction industries increased 48% year over year to $4.3 billion. That was the largest percentage improvement of all of Caterpillar\u2019s operating regions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The company\u2019s power and energy business in North America also posted strong numbers, up 33% to $3.5 billion. Total consolidated revenue in the region was $10.2 billion, up 32% from Q1 2025.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThis growth seems to be a big reason behind dealer inventory movement and stronger equipment sales.\u201d \u201cSo some restocking activity probably helped push numbers higher this quarter as dealers have been relatively cautious with inventory levels over the past couple of years.\u201d<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Power_and_Energy_Business_Keeps_Growing\"><\/span><b>Power and Energy Business Keeps Growing<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Excluding construction equipment, the power and energy division of Caterpillar had a good quarter. Segment revenue was up 22% to $7 billion year-over-year.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The company said this growth was largely due to an increase in sales volume of $840 million. Demand for engines, power systems and industrial energy products remained strong around the world, especially with the continued momentum of infrastructure and industrial projects across many regions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This side of Caterpillar\u2019s business often gets less attention than heavy equipment, but it has become a major earnings contributor for the company in recent years.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Higher_costs_but_operating_profit_up\"><\/span><b>Higher costs, but operating profit up<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Caterpillar\u2019s total company revenue for the first quarter reached $17.4 billion, up 22% overall. Consolidated operating profit also increased 20% to $3.1 billion.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Still, the quarter had its share of pressure. The company also reported approximately $710 million of incremental manufacturing costs, much of it related to tariffs and increased manufacturing costs. Those expenses still cut into margins, even with higher sales.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Operating profit in the construction industry segment increased 50% to $1.54 billion. Meanwhile, the power and industry division generated $1.45 billion in operating profit, up 13% from last year.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So while Caterpillar is clearly benefiting from stronger equipment demand, cost pressure remains a major factor behind the scenes.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Tariff_concerns_continue_to_loom_over_the_industry\"><\/span><b>Tariff concerns continue to loom over the industry<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">During the earnings call, Caterpillar executives took some time to talk about tariffs. The company said it expects first-quarter tariff-related costs to be approximately $600 million and second-quarter tariff costs to rise to approximately $700 million.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For the full year, <\/span><a href=\"https:\/\/www.my-equipment.com\/caterpillar\"><span style=\"font-weight: 400;\">Caterpillar<\/span><\/a><span style=\"font-weight: 400;\"> now expects tariff expenses to land somewhere between $2.2 billion and $2.4 billion. That is a huge number, even for a company of this size.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Newly named CFO Kyle Epley also said the company\u2019s current estimate does not yet reflect possible IEPA-related refu nds connected to a recent Supreme Court decision. That means tariff-related numbers could still shift later in the year, depending on legal and policy developments.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Newly named CFO Kyle Epley also said the company\u2019s current estimate does not yet reflect possible IEPA-related refunds connected to a recent Supreme Court decision. That means tariff-related numbers could still shift later in the year, depending on legal and policy developments.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_This_Means_for_the_Equipment_Market\"><\/span><b>What This Means for the Equipment Market<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Caterpillar\u2019s latest results are another signal that construction equipment demand has remained stronger than many expected into 2026. Contractors continue to purchase machines, rental companies continue to refresh their fleets, and infrastructure work continues to be active across North America.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But at the same time, rising manufacturing costs and tariff pressure are harder to ignore. Should those costs continue to rise throughout the year, manufacturers might ultimately pass more of those costs down into equipment pricing.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For buyers in the <\/span><b>used equipment market,<\/b><span style=\"font-weight: 400;\"> this could become another factor underpinning stronger resale values in 2026. Pricing for new equipment continues to be high, so many contractors are still looking to used machinery instead of buying brand new units.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The current numbers for Caterpillar show that the market still has momentum. But the second half of the year should give a better idea of whether that pace of growth can actually be sustained in the face of rising cost pressure.<\/span><\/p>\n<blockquote><p><span style=\"font-weight: 400;\">With new <\/span><b>Caterpillar construction equipment<\/b><span style=\"font-weight: 400;\"> prices continuing to climb, used machinery is becoming the smarter choice for many contractors. At <a href=\"https:\/\/www.my-equipment.com\/\">MY-Equipment<\/a>, we stock quality used CAT machines out of Houston, Texas. Browse our current <\/span><a href=\"https:\/\/www.my-equipment.com\/caterpillar\"><span style=\"font-weight: 400;\">Caterpillar listings<\/span><\/a><span style=\"font-weight: 400;\"> or contact us directly; we will help you find the right equipment at the right price. <\/span><\/p><\/blockquote>\n<p style=\"text-align: center;\"><span style=\"font-size: 18pt;\"><strong>Don\u2019t forget to subscribe to our YouTube channel for more equipment offers and insights into the industry. <\/strong><\/span><\/p>\n<p><center><iframe loading=\"lazy\" title=\"YouTube video player\" src=\"https:\/\/www.youtube.com\/embed\/Nni3IEZSDA8?si=CS9_zGu-m450s0I5\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/center><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Caterpillar construction equipment kicks off 2026 with a strong first quarter, delivering major gains in &hellip; <a href=\"http:\/\/www.my-equipment.com\/blog\/2026\/06\/caterpillar-construction-equipment-revenue-jumps-by-38-in-2026\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Caterpillar Construction Equipment: Revenue Jumps by 38% In 2026&#8221;<\/span><\/a><\/p>\n","protected":false},"author":3,"featured_media":44750,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1155,126],"tags":[4669,1187,4678,4081,4674,4671,3392,4664,4663,4666,4661,2390,4660,2383,4662,4670,4651,4668,2923,4672,4665,4242,4667,2646,4676,4527,4673,3314,4677,4675],"class_list":["post-44747","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-feature","category-news","tag-caterpillar-business-update","tag-caterpillar-construction-equipment","tag-caterpillar-corporate-earnings-report","tag-caterpillar-dealer-network","tag-caterpillar-economic-outlook","tag-caterpillar-equipment-manufacturer","tag-caterpillar-financial-performance","tag-caterpillar-machine-sales","tag-caterpillar-north-america-demand","tag-caterpillar-power-and-energy-segment","tag-caterpillar-q1-2026-earnings","tag-caterpillar-quarterly-results","tag-caterpillar-revenue-2026","tag-caterpillar-revenue-growth","tag-caterpillar-sales-increase","tag-caterpillar-stock-news","tag-construction-equipment-industry-news","tag-construction-equipment-market-growth","tag-construction-equipment-sales-trends","tag-construction-industry-growth-2026","tag-construction-machinery-revenue","tag-earthmoving-equipment-sales","tag-heavy-equipment-industry-trends","tag-heavy-equipment-market-2026","tag-heavy-equipment-sector-performance","tag-heavy-machinery-market-analysis","tag-industrial-equipment-revenue","tag-infrastructure-equipment-demand","tag-machinery-industry-insights","tag-north-american-construction-market"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Caterpillar Construction Equipment: Revenue Jumps by 38% In 2026<\/title>\n<meta name=\"description\" content=\"Caterpillar construction equipment revenue jumps 38% in Q1 2026, driven by strong North America demand, higher machine sales, and growth in the power and energy segment.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.my-equipment.com\/blog\/2026\/06\/caterpillar-construction-equipment-revenue-jumps-by-38-in-2026\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Caterpillar Construction Equipment: Revenue Jumps by 38% In 2026\" \/>\n<meta property=\"og:description\" content=\"Caterpillar construction equipment revenue jumps 38% in Q1 2026, driven by strong North America demand, higher machine sales, and growth in the power and energy segment.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.my-equipment.com\/blog\/2026\/06\/caterpillar-construction-equipment-revenue-jumps-by-38-in-2026\/\" \/>\n<meta property=\"og:site_name\" content=\"Heavy Equipment Market Insights | News | Guides &amp; 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