If you build data centers, you need power. And if you need power, you call Caterpillar. That's the story behind the construction and mining giant's blowout second quarter, which sent shares soaring Tuesday morning.

Caterpillar Inc. (CAT) reported adjusted earnings of $8.17 per share, blowing past the $5.71 analysts were looking for. Revenue came in at $20.5 billion, also crushing the $18.358 billion consensus. The company's order backlog hit a record $72.1 billion, fueled by insatiable demand for power generation and construction equipment.

"This is the first time in company history that we have generated over $20 billion in sales and revenues in a single quarter," Chairman and CEO Joe Creed said in a statement. "This milestone underscores both the essential work our customers do every day and the dedication of Caterpillar employees worldwide to solving our customers' toughest challenges. Strong order rates and a growing backlog reflect broadening momentum across all three of our primary segments."

Earnings And Margins

The numbers are staggering. Revenue jumped 24% from $16.6 billion a year ago. GAAP diluted EPS came in at $7.77, up from $4.62, while adjusted EPS rose from $4.72. GAAP profit climbed to $3.593 billion from $2.179 billion.

Operating profit increased 50% to $4.295 billion, with operating margin expanding to 20.9% from 17.3%. Adjusted operating margin was even better at 21.9%, up from 17.6%.

What drove the growth? Higher sales volume contributed $3.113 billion, while favorable pricing added another $595 million. The backlog grew $34.6 billion year over year and $9.4 billion sequentially.

Segment Performance

Every major segment delivered. Power & Energy sales rose 17% to $8.238 billion, with segment profit up 30% to $2.027 billion and margin expanding to 24.6%. The growth was driven by higher sales of large reciprocating engines, turbines, and related services, primarily for data-center applications. That's the AI buildout in action.

Construction Industries sales climbed 35% to $8.346 billion, with segment profit up 57% to $1.947 billion. Resource Industries sales increased 20% to $4.648 billion, while profit rose 23% to $693 million.

During the earnings call, Creed noted softer sales to end users in the Middle East within Construction Industries, a slight blemish on an otherwise stellar report.

Financial Products revenue gained 10% to $1.145 billion, and segment profit increased 32% to $328 million.

Cash Flow And Capital Returns

Caterpillar is also a cash machine. Enterprise operating cash flow totaled $4.4 billion. Machinery, Power & Energy operating cash flow reached $5.7 billion, with free cash flow of $5.1 billion.

The company ended the quarter with $6.7 billion in enterprise cash and returned $2.2 billion to shareholders, including $1.5 billion through share repurchases and $700 million through dividends.

Tariffs And Outlook

Tariffs are a factor, but Caterpillar is managing. Results included $392 million in expected IEEPA tariff recoveries. Adjusted EPS excluded 40 cents per share of restructuring costs.

Looking ahead, Caterpillar expects full-year sales growth in the mid-to-high teens, up from its previous expectation for low-double-digit growth. The company projects about $2.2 billion in tariff costs, approximately $3.5 billion in MP&E capital expenditures, and $300 million to $350 million in restructuring costs.

CAT Stock Price Activity: Caterpillar shares were up 11.30% at $923.84 during premarket trading on Tuesday, according to market data.