Good morning, team. Remember, we’re raising large reciprocating engine capacity from 2x 2024 levels to nearly 3x, with investment beginning as soon as possible but primarily 2027‑29; capex is expected to average about 4%‑5% of manufacturing‑and‑engine sales through 2030. You know, adding capacity runs accelerated depreciation, which drags Power and Energy margin – 20.6% this quarter, down 170 basis points, mainly on tariffs. Full‑year 2026 tariff cost is estimated at $2.2‑$2.4 billion, fluid as of now.

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CAT / Raising capacity - and owning the cost of it

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/p/p-day-20260720-cat-src-cat-capacity-tariffs-margin-ingest ↗

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2026-07-20T02:08:37.687Z