Caterpillar Inc. (CAT) reported third-quarter 2026 sales and revenues of $20.7 billion, a 17% increase from $17.6 billion a year earlier, after 24% year-over-year growth in the second quarter.

The $3.044 billion year-over-year increase was primarily due to $2.2 billion of higher sales volume and $663 million of favorable price realization. The company said higher sales volume was mainly driven by higher sales of equipment to end users. Sales were higher across the three primary segments.

Profit per share was $7.13, compared with $4.88 a year earlier. Adjusted profit per share was $7.20, compared with $4.95. Operating profit margin was 20.4%, compared with 17.3% a year earlier. Adjusted operating profit margin was 20.6%, compared with 17.5%. Adjusted figures excluded restructuring costs.

Consolidated operating profit rose 38% to $4.214 billion from $3.052 billion. The company said the increase was primarily due to the profit impact of higher sales volume. Operating profit included $128 million of International Emergency Economic Power Act tariff recoveries.

Chairman and CEO Joe Creed said third-quarter results reflected the durability of end markets, with strong order rates and a record backlog.

Power & Energy sales were $8.784 billion, up 18%. Volume contributed $879 million and price realization $216 million. Power Generation sales rose 30% to $3.421 billion, which the company said increased mainly in turbines and turbine-related services and in large reciprocating engines, primarily in data center applications. Oil and Gas sales rose 13% to $2.236 billion. Industrial sales rose 4% to $1.631 billion. Segment profit rose 31% to $2.143 billion, and segment profit margin expanded 2.5 points to 24.4%.

Construction Industries sales were $7.983 billion, up 18%. Volume contributed $874 million and price realization $349 million. North America sales rose 23% to $4.796 billion. Latin America sales rose 26% to $825 million. EAME sales rose 12% to $1.366 billion. Asia/Pacific sales rose 2% to $925 million. Segment profit rose 33% to $1.831 billion, and margin expanded 2.5 points to 22.9%. The company said profit was lifted by $356 million of volume and $349 million of price, partially offset by $252 million of unfavorable manufacturing costs, including higher freight.

Resource Industries sales were $4.615 billion, up 15%. Mining, Heavy Construction and Quarry & Aggregates sales rose 22% to $3.697 billion. Rail sales fell 5% to $832 million, which the company said decreased primarily due to lower international locomotive deliveries. Segment profit rose 14% to $622 million. Margin was 13.5%, compared with 13.6% a year earlier. Unfavorable manufacturing costs of $208 million primarily reflected higher material costs, including tariffs.

Financial Products segment revenues rose 9% to $1.177 billion. Segment profit rose 10% to $264 million. Past dues at Cat Financial were 1.31%, compared with 1.47% a year earlier. Net write-offs were $28 million. The allowance for credit losses was $332 million, or 0.91% of finance receivables, as of September 30, 2026.

Enterprise operating cash flow was $4.4 billion. The company ended the quarter with $7.9 billion of enterprise cash. It deployed $1.2 billion for share repurchases and $0.7 billion for dividends.

The effective tax rate was 22.9%, compared with 26.7% a year earlier. Excluding discrete items, the global estimated annual effective tax rate was 23.0%. Other income was $135 million, compared with $208 million a year earlier, which the company said was primarily driven by unfavorable impacts from total return swap contracts, partially offset by favorable impacts from commodity hedges.