Cat Financial revenue rises 10% in Q3

Cat Financial posted increased revenue in the third quarter while the parent company’s power and energy segment continued to grow with the data center boom.  

Caterpillar’s financing arm saw originations grow while past dues fell 16 basis points year over year to 1.31% — the lowest level since 1998, Chief Financial Officer Kyle Epley said during today’s earnings call.  

“In addition, used equipment inventory levels continue to remain low and conversion rates remain above historical averages as customers continue to choose to purchase their equipment at the end of their lease term,” he said.  

Cat Financial reported in Q3:

• Revenue of $1 billion, up 10% YoY;
• Retail new business volume of $3.9 billion, up 6.1% YoY;
• Write-offs, net of recoveries, totaling $28 million, compared with $40 million in Q3 2025;
• Allowance for credit losses was $332 million, or 0.91% of finance receivables, up 17.3% from $283 million, or 0.89% of finance receivables, in Q3 2025; and
• Profit of $145 million, up 8.2% YoY.  

Data center boom  

Meanwhile, Caterpillar’s total sales and revenue increased 17.3% YoY in Q3 to $20.7 billion, according to today’s earnings release. Power and energy segment sales and revenue jumped 17.7% YoY to $8.8 billion. 

The increase in energy product sales was “driven by continued very strong demand for turbines and large reciprocating engines used in data center applications,” Chief Executive Joseph Creed said during the call. 

“We continue to anticipate full-year growth in power generation for both Cat reciprocating engines and solar turbines driven by increasing energy demand to support the data center build-out related to cloud computing and generative AI,” he said.  

Construction sales and revenue also rose 18.1% YoY to $8 billion as “dealer rental revenue in North America continued to grow, driving increased investment in their equipment fleets,” Creed said. 

Caterpillar’s construction growth initiatives include its Cat Compact program that launched this year, helping the company “reach more small contractors in the growing compact construction equipment industry,” he said.  

“To support that growth and meet increasing customer demand, we announced a $1 billion investment to expand manufacturing capacity in Sanford, North Carolina,” Creed said.  

Shares of Caterpillar [NYSE: CAT] dropped 9.3% from market open to $647.39 as of market close today. It has a market capitalization of $297.6 billion.  

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