Caterpillar and Honeywell Report Strong Sales Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: NASDAQ.COM
- Caterpillar Sales Growth: Caterpillar's energy and transportation segment saw significant sales growth, with 2025 revenue reaching $67.6 billion, a 4% increase, while backlog surged 71% year-over-year to $51.2 billion, indicating strong demand from large data centers despite a 17.2% drop in EPS.
- Honeywell Profitability Outlook: Honeywell forecasts 2026 revenue between $38.8 billion and $39.8 billion, reflecting a 5% midpoint increase, with adjusted EPS expected to rise 7.4% to between $10.35 and $10.65, showcasing the potential for improved margins from its strategic shift towards industrial automation.
- Dividend Growth Trend: Caterpillar has raised its dividend for 31 consecutive years, increasing it by 7% to $1.51 per share in 2025, and despite a low yield of 0.8%, its payout ratio of 31.5% suggests ample room for future hikes, enhancing its appeal to income-focused investors.
- Market Competitive Advantage: Amid rising oil prices, both Caterpillar and Honeywell are leveraging their strong positions in automation and energy infrastructure, with Caterpillar poised to expand its market share due to increased government spending on infrastructure, ensuring sustained growth momentum.
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Analyst Views on CAT
Wall Street analysts forecast CAT stock price to fall
15 Analyst Rating
8 Buy
6 Hold
1 Sell
Moderate Buy
Current: 688.650
Low
395.00
Averages
620.54
High
730.00
Current: 688.650
Low
395.00
Averages
620.54
High
730.00
About CAT
Caterpillar Inc. is a manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The Company operates through its various segments, namely Construction Industries, Resource Industries, and Energy & Transportation. It also provides financing and related services through its Financial Products segment. The Construction Industries segment is primarily responsible for supporting customers using machinery in infrastructure and building construction applications. The Resource Industries segment develops and manufactures high productivity equipment for both surface and underground mining operations, as well as provide hydraulic systems, electronics and software for its machines and engines. The Energy & Transportation segment offers product and services that includes reciprocating engines, generator sets, integrated systems and solutions, turbines and turbine-related services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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