How Caterpillar’s Record $72B Backlog Is Making Used Equipment the Smarter Buy In 2026

Caterpillar just posted the best quarter in its history. On August 4, the company reported second-quarter 2026 revenue of $20.54 billion, the first time it has ever crossed the $20 billion mark in a single quarter, with construction segment revenue up 35% and order backlog swelling to a record $72.1 billion. Behind the numbers is a story that matters to anyone looking for equipment right now: North American data center construction is taking up new-machine capacity faster than manufacturers can build it.

For contractors and fleet managers of used heavy equipment, that’s not just an interesting earnings headline. It’s a supply problem. And it’s one of the clearest signals yet that buying used isn’t a substitute plan anymore; it’s a legitimate strategy.

What really happened in Caterpillar’s Q2?

The topline figures are impressive enough: adjusted earnings of $8.17 per share compared to an estimate of $6.19 by the Street; revenue that exceeded estimates by over a billion dollars; and a backlog that increased by $9 billion in one quarter. However, the important thing to note is the source of the growth. Construction Industries revenue rose 35% and North America retail sales rose 50% alone. The driver, according to CEO Joe Creed is non-residential investment, or heavy infrastructure, critical power projects, and data centers.

This is not a Caterpillar thing. Deere’s construction and forestry unit posted a 29% increase in net sales in its latest quarter, while the company’s large agriculture business had a rough one, and the company highlighted shipment volumes and improved price realization in construction as the positive aspect of a mixed report. Two of the biggest equipment makers in the industry are sharing the same news, but from different perspectives: Equipment that pours foundations, moves earth and constructs power infrastructure is in short supply, and buyers are competing for it.

Why Data Centers are Fueling Equipment Demand

The physical buildout of the AI that is taking place throughout the U.S. is enormous, as there is a tremendous amount of work that must be completed before the first server rack is online. It includes site grading, foundation work, utility trenching, power infrastructure, and access roads. The machinery used for that work is the same as is used on any other construction site: excavators, wheel loaders, dozers and motor graders. When a new hyperscale data center campus is approved, local contractors know they need to order more iron than they thought, and they need it faster than the normal order-to-delivery cycle.

Include ongoing increases in industrial and infrastructure spending overall, and you have what Caterpillar’s backlog reveals: demand far outstrips the supply of new machines.

What does a record backlog mean if you are buying?

A $72 billion backlog is a manufacturer’s success story. However, on the other side of the table, a backlog generally translates to longer lead times. As the order books grow longer, dealers begin to limit new inventory, the list price rises (because the manufacturer is realizing a better price), and contractors who require a machine on a job site next month, instead of next quarter, begin looking elsewhere.

Historically, one of the best tailwinds for the used equipment market has been that. If new machines are scarce or expensive, well-maintained used equipment is the solution for contractors who can’t afford to have a project sit idle waiting for a delivery date.

The case for buying used right now

None of this is to say that new equipment is a bad purchase; for long-term core fleet requirements, it may still be worth it. However, in a tight supply cycle, used equipment has three benefits for contractors who need to ramp up their staffing levels quickly for a data center project, infrastructure contract, or seasonal work that is more significant than they are in a normal supply cycle:

Availability: A used excavator or wheel loader on a dealer’s lot can be inspected, financed, and delivered to a job site in days, not months. That’s a fast pace in a market where new-unit lead times are getting longer and longer, and it’s a valuable currency.

Price stability: New equipment list prices rise as manufacturers’ backlogs grow and tariff-driven cost pressures increase, whereas used equipment list prices tend to rise and fall more slowly and are more easily negotiated against other similar equipment listings and recent auction results.

Proven performance data: A machine that has been used and has service records provides a buyer with tangible proof of the machine’s ability to perform under load that a brand new machine cannot. That history is important for contractors who require reliability on a tight schedule.

That’s also why more fleet managers are turning to a hybrid model: They keep a base fleet of owned or financed equipment for day-to-day use, rent for short periods when demand peaks, and purchase quality used equipment for the jobs that require it and are time-sensitive when waiting for a new-unit order just isn’t an option. It’s a more disciplined approach to cash and capacity than simply buying new equipment for every requirement, and it’s becoming the norm for backlogs such as Caterpillar’s to remain high.

What to Look for When Buying Used in a Tight-Supply Market

When a supply shortage comes, it’s the time to be careful, not rushed. Here are a couple of points to consider before you make a decision:

Check hour meters and service records with the condition of the machine. In a demand-driven market, sellers may be tempted to rush to sell equipment without full disclosure.

Specifically ask about the undercarriage and hydraulic history of dozers and excavators. These are the parts that wear out first and are the most expensive to replace.

Use recent auction prices, not dealer listings, to determine a realistic assessment of fair market value in the current market.

Look for dealers who can provide maintenance records and after-sales service, as a machine that fails on a data center job site with a hard deadline is a much bigger issue than a delayed delivery.

The Bottom Line

Caterpillar’s record quarter is good news for the industry, but it’s also a clear signal that new-equipment supply is going to stay tight for a while. Backlogs at $72 billion don’t clear overnight, and as long as data center and infrastructure spending keeps climbing, that pressure isn’t going away soon. For contractors who need equipment now, not on a manufacturer’s schedule, the used market is where the flexibility is.

If you are comparing new against used equipment for an upcoming project, browse our current inventory of used excavators and used wheel loaders to see what’s available for immediate delivery, no backlog required.

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