CAT · 10-Q · 2026Q2 · Full report

Manufacturing and Capacity

CATERPILLAR INC · 2026-08-05 · Importance 38 · Surprise 24 · In source text

Caterpillar said it was progressing with capacity expansion plans and expected to increase throughput in the second half of 2026. Higher sales volume and demand across Power & Energy, Construction Industries and Resource Industries were accompanied by unfavorable manufacturing costs. In the second quarter, unfavorable manufacturing costs were $149 million in Power & Energy and $158 million in Resource Industries, primarily reflecting increased period manufacturing costs. For the six-month period, Resource Industries manufacturing costs were pressured by higher tariff costs, while the company continued working to minimize supply-chain challenges affecting its ability to meet customer demand.

Key facts

Impact estimates

metricdirectionstageexpectedbasis
revenuepositiveprobableCompany expects higher throughput in the second half of 2026 as part of capacity expansion plans.