Caterpillar (CAT) Barclays 43rd Annual Industrial Select Conference summary

Strategic priorities and performance

• Focus on growing absolute OPACC dollars, which strongly correlates with free cash flow and shareholder return.

• Achieved top quartile total shareholder return since 2020, with OPACC up 4.1x.

• New targets set to grow sales and revenues 5%-7% annually through 2030; 2023 saw 4% growth.

• Services revenue surpassed $24B, targeting $30B by 2030.

• Returned 84% of free cash flow to shareholders in 2023 via dividends and buybacks; dividend grew 7%.

Investment and capacity expansion

• CapEx to double over next five years, reaching $3.5B in 2024, still under 5% of revenues.

• Major investments in digital, automation, and connectivity, with tech investment to rise 2.5x by 2030.

• Expanding capacity for large engines and Solar Turbines, with most new capacity coming online 2026–2028.

• Operating margin target range increased to 15%-25%, with a new sales cap of $100B.

• CapEx peak expected in 2026–2027.

Business segments and market trends

• Diverse portfolio: Construction Industries, Resource Industries, and Power & Energy.

• Power & Energy benefits from data center, oil & gas, and pipeline demand.

• Mining and heavy construction supported by infrastructure spending and commodity demand.

• North America and Middle East strong; China and Europe weak but expected to improve by 2026.

• Services growth and portfolio breadth help reduce business cycle volatility.