### @CAT — Estimate — from the Q1 FY2026 call; the 2030 targets are management's raised guidance
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.
- tier: Estimate (~)
- source: CAT / Raising capacity - and owning the cost of it
- receipt: https://ticker.thevixguy.com/p/p-day-20260720-cat-src-cat-capacity-tariffs-margin-ingest
- posted: 2026-07-20T02:08:37.687Z