Caterpillar (CAT) CONEXPO-CON/AGG 2026 summary

Strategic direction and leadership

• Emphasis on a new strategy focused on commercial excellence, customer-centricity, and leveraging technology across all segments, with a goal of 1.25 sales growth to users.

• Leadership transition in Construction Industries (CI) highlighted, with Rod Shurman taking over and praised for his customer focus and operational expertise.

• Commitment to solving customer challenges, including safety, productivity, labor, and mixed fleet management, showcased at CONEXPO.

• Launch of Cat Compact and omnichannel solutions to attract new and existing customers, making it easier to try, buy, lease, rent, and service equipment.

• Ongoing discipline in portfolio management, with regular reviews and resource allocation guided by the Operating & Execution Model.

Market trends and segment outlook

• Backlog and order growth remain strong across all three segments, with healthy demand in power and energy, construction, and resources.

• Mining segment remains steady, with customers extending equipment life and a focus on services; long-term outlook is positive due to global mineral demand.

• Power and energy segment experiencing robust growth, especially in oil and gas and natural gas compression, driven by data center and energy transition needs.

• CI segment benefits from infrastructure tailwinds and close customer relationships, enabling dynamic response to market changes.

• China and other regions are approached with a focus on profitable growth, maintaining a global footprint and readiness for demand recovery.

Operational excellence and efficiency

• Lean principles are embedded as a continuous journey, with ongoing improvements in demand and supply planning, cost efficiency, and total cost of ownership.

• Dealer inventory volatility addressed through enhanced S&OP processes and data-driven inventory management.

• Rental business is a key growth area, with a new digital platform (catrentals.com) and focus on customer cash flow and flexibility.

• Pricing strategies are value-driven, with flexibility to adapt to regional and segment-specific competition and inflation.

• Margin discipline maintained despite tariff impacts, with a focus on regaining lost margin and growing OPACC dollars.