CAT · Earnings call · 2026Q3T · Full report

End-Market Demand Trends

CATERPILLAR INC · 2026-10-29 · Importance 26 · Surprise 24

Management described healthy construction conditions in North America, with spending supported by the Infrastructure Investment and Jobs Act (IIJA), other critical-infrastructure programs, and data centers. It expects Europe to remain stable and Africa’s construction activity to remain strong, while the Middle East faces challenges with only a limited anticipated impact on EAME sales to users. Outside China, stable economic conditions are expected in Asia Pacific; China is expected to have moderate conditions and full-year growth in the above-10-ton excavator industry from low activity levels. For Resource Industries, management expects full-year 2026 sales-to-users growth driven by copper and gold demand, Canadian oil sands activity, and heavy construction, quarry, and aggregates.

Key facts

• Caterpillar expects oil and gas to grow moderately in 2026 after a record year for sales in 2025.
• Caterpillar has seen no material change since the prior quarter in discussions with customers.
• Caterpillar said demand is strong for gas compression in both Solar Turbines and its reciprocating engine business, and expects natural gas activity to be strong over the next few years.
• Caterpillar said it is seeing strength in all three of its segments.