Caterpillar's AI Boom Fuels Power Surge

0:00It's March 23rd. You're listening to Durham News today, AI-powered local news. I'm Corey with the story. Caterpillar's stock has roughly doubled over the past 12 months, topping the charts among Dow Jones industrial average performers. The century-old machinery giant, best known for construction gear, is riding high on the artificial intelligence boom. Data Center's guzzling power for AI training, need generators and turbines fast, often ahead of grid upgrades, and caterpillars delivering. In the fourth quarter of 2025, power generation sales soared 44 percent. They snagged one of their biggest power contracts ever for a huge data center in Mason County, West Virginia. Power and energy now lead revenue, prompting a $725 million investment in their Indiana plan to ramp up engine. Production, with plans to double turbine capacity by 2030. Some investors stick with Caterpillar for its rock solid dividends, paid quarterly since 1933, and raised for 31 straight, years.

1:02The latest bump set it at $1.51 per share, yielding about 0.8 percent with a low 31 percent payout. Ratio. Free cash flow hit $8.92 billion last year, leaving room for more hikes into high single digits through 2030. The company closed 2025 with a record, $51 billion backlog across construction, mining, and power segments. Revenue grew 4.29 percent to $67.59 billion, with 5 to 7 percent annual growth targeted through 2030. Tariffs will sting with $2.6 billion in cost next year, squeezing margins a bit. All this momentum, positions, Caterpillar to fuel the digital infrastructure rush, while keeping shareholders happy with steady payouts and growth.