Club holding Caterpillar (CAT) delivered another strong quarter before the opening bell Tuesday, sparking a much-deserved rally of more than 8% to an all-time high above $287 per share. Revenue in the second quarter increased 22% year over year to $17.32 billion, exceeding estimates of $16.49 billion, according to Refinitiv. Adjusted earnings per share (EPS) surged 75% to $5.55, well ahead of estimates of $4.58. Profit margin performance was well ahead of expectations, with operating income beating across all of the company’s product segments. CAT 5Y mountain Caterpillar 5-year performance Bottom line Strong headline results at Caterpillar were met with a very bullish conference call — giving shares another jolt to the upside, thanks to positive commentary on the operating environment and growth drivers for the remainder of the year. In addition to strong quarterly sales, Caterpillar’s backlog increased to $30.7 billion. That represents a $300 million quarter-over-quarter gain and a $2.2 billion year-over-year surge. Despite strong results in the first quarter, shares sold off on concerns that the backlog, which was flat versus the fourth quarter, indicating that the strongest demand was in the rearview mirror. At the time, we never bought into that notion because there was too much infrastructure spending coming down the pipe. In Tuesday’s results, we’re starting to see that money flow through to the backlog. Indeed, management told us as much on the call that they “expect continued growth in nonresidential construction in North America due to the positive impact of government-related infrastructure investments and a healthy pipeline of construction projects.” How fast those orders come in will depend on the timeline to obtain permits, but the team does expect the order momentum to “last for some time.” Combined with commentary around dealer inventories and end market dynamics, this infrastructure potential gives us confidence in sustained demand through the end of the year and into 2024. While forward guidance wasn’t expressly given, management made clear that business has improved over the past three months, with full-year results tracking above where consensus estimates had been coming into the print. This was as good of a quarter as we could have hoped for, with plenty of conviction from management for continued momentum. That said, we told investors during Tuesday’s Morning Meeting that conviction always takes a back seat to discipline. With that view in mind, if not restricted, we would be trimming 25 shares, or a little over 7% of our position, due to the strong stock move higher. In line with that view, we’re maintaining our 2 rating , however, raising our price target to $300 per share, up from $285. Companywide Q2 results All three of Caterpillar’s physical product segments, as indicated in the table above, reported strong year-over-year revenue growth that beat estimates. While Financial Products sales missed the mark, lower credit loss provisions — an estimate on loans that won’t get repaid — helped segment operating income outpace expectations. Construction Industries sales in Q2 rose 19% to $7.15 billion. North America was up thanks to an increase in both selling prices and sales volume. On the call, management called out strong demand in both North American residential and nonresidential construction. Latin America saw a decline in sales volume, however, this was partially offset by an increase in prices. In Europe, Africa, and the Middle East, an increase in prices was compounded by higher sales volumes. Sales in Asia/Pacific were largely flat versus the year-ago period. China remains weak and that’s not expected to change much in the near term. Fortunately, China represents less than 5% of sales with weakness being more than offset by strong demand elsewhere in the Asia/Pacific region. Resource Industries sales of $3.56 billion increased by 20%. Segment sales benefited from both higher prices and an increase in sales volume, two factors that also aided segment operating income performance despite an increase in material costs. Within the segment, management expects “healthy mining demand to continue as commodity prices remain above investment thresholds.” Energy & Transportation sales increased 27% to $7.22 billion. Backlog commentary Management explained on the call that backlog levels are a function of demand (which adds to the backlog), as well as the company’s production rates and ability to ship out inventory (which decreases the backlog). With the supply chain improving and Caterpillar’s ability to more quickly turnover orders, we may see that robust backlog as of the end of Q2 decline in future quarters. If that were to occur, a declining backlog would not necessaliry be viewed negatively should it prove to be a function of shorter lead times thanks to increased product availability. Dealer inventories, another forward-looking metric to monitor, increased by about $600 million on a sequential basis and provided a $1 billion benefit to total sales. Caterpillar dealers are independent businesses and they’re not going to increase inventory levels if they aren’t seeing strong demand on the near-term horizon. Guidance As mentioned earlier in the bottom line , Caterpillar didn’t provide exact guidance numbers for every line item. But, we did get positive qualitative comments on the path ahead. The team stated plainly that they now expect their full-year 2023 to be better than they thought just three months ago. Starting with the third quarter, management noted that sales are expected to be higher on an annual basis but lower on a sequential basis (which is typical given seasonal trends). The Street was modeling a 6.8% annual increase and a 7.9% sequential decrease versus the topline results we got Tuesday (or a 2.9% sequential decline versus estimates coming into the print). How exactly that matches up versus estimates is hard to say but we would bet that it’s at least as good as analysts were looking for, probably a bit better. The adjusted operating profit margin for the third quarter is expected to have a similar dynamic, expansion versus the year-ago period and contraction on a sequential basis. That commentary is also in line with Street models coming into the print. On a full-year basis, management expects Caterpillar’s operating profit margin to “be close to the top end of our target range.” The team also noted that second-half sales will be higher versus the second half of 2022. Coming into the release, the Street had been modeling second-half sales of about $33.4 billion. In the first two quarters, Caterpillar generated sales of about $33.2 billion. Add those up and we get a blended full-year sales estimate of $66.4 billion. According to the target ranges provided by the company, we should be looking for an adjusted operating profit margin of about 19%, which if achieved would be ahead of the 18% margin the Street is currently expecting. However, that would be below the 21% in Q2. As for full-year cash flow, the team expects Machinery, Energy & Transportation (ME & T) to be “around the top” of their $4 billion to $8 billion range. That’s highly positive given that management intends to “return substantially all” ME & T free cash flow to shareholders via dividends and repurchases over time. (Jim Cramer’s Charitable Trust is long CAT. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
A Caterpillar (Cat) Excavator is seen working at a construction site near the New York Harbor in Brooklyn, New York, March 4, 2021.
Brendan McDermid | Reuters
Club holding Caterpillar (CAT) delivered another strong quarter before the opening bell Tuesday, sparking a much-deserved rally of more than 8% to an all-time high above $287 per share.
In a record-setting deal worth billions, Chinese heavy equipment manufacturer XCMG has agreed to deliver more than 200 of its 240-tonne electric haul trucks to Australian mining giants Fortescue in one of the biggest moves yet to decarbonize mining.
From pioneering its “world’s first” best-practice model for smart mining at China Huaneng’s Yimin Mine and winning the 2025 Decarbonizing Mining Award to ranking among the world’s top four open-pit heavy equipment makers, XCMG is rapidly building a reputation for building high-quality electric equipment options that can do all the work without any of the emissions.
Earlier this week, XCMG joined Fortescue, one of the world’s largest iron ore producers, at a grand signing ceremony in Beijing for a strategic cooperation agreement on green mining equipment solutions. Under the terms of the new deal, XCMG will deliver up to 200 of its massive, 240T battery-electric haul trucks to Fortescue, beating a similar deal posted last yearand marking China’s largest-ever export order for green mining machinery.
It’s also one of the largest-ever EV sales, period.
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Big deal
Signing the Fortescue deal; via XCMG.
Fortescue believes the deal isn’t just significant for its size and scope, but for building new global bridges in the quest for full decarbonization.
“The world once benefited from open trade and cooperation – now it is divided,” explains Fortescue Executive Chairman and Founder, Dr. Andrew Forrest. “Fortescue is showing that industry can help glue back that multilateral spirit. Not through rhetoric, but through practical alliances that prove heavy industry can follow a new path – one where profits rise as emissions fall.”
“China is scaling and manufacturing green technologies at unprecedented speed,” adds Forrest. “and “Our partnerships give Fortescue access to that capability.”
As for the trucks themselves, the new XCMG 240T electric haul trucks are absolute giants, built to handle payloads over 500,000 lbs., with a gross vehicle weight rating somewhat north of 380 (!) tonnes (that’s almost 420 Imperial tons, to you and me).
There’s enough power on tap from the big haul trucks’ 1,900 kW (2,550 hp) electric drive system to climb 17% grades and hit speeds up to 56 km/h (35 mph). That’s enough to make XCMG’s 240T one of the most powerful and capable EVs on the planet, slashing emissions without sacrificing hauling performance.
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There are plenty of electric fat tire bikes on the market these days, but few feel as purpose-built and refined as the Puckipuppy Labrador Pro. While the name might sound like a friendly pooch, don’t let it fool you… this is a serious all-terrain machine with enough power to rip through sand, snow, or steep trails. Plus, if it can do all that, it can surely handle your commute, too!
Built for the wild (and the wild commute)
Right out of the gate, the Puckipuppy Labrador Pro feels like it’s aimed at a very specific type of rider – someone who wants the capability of an electric mountain bike, the stability of a fat tire cruiser, and the commuting chops of a Class 3 bike built for the streets.
That hybrid identity is reflected in the bike’s rugged 6061 aluminum frame, which includes internal cable routing for a clean look and a removable 48V 20Ah lithium-ion battery nestled into the downtube. The battery is locking and removable, offering a massive 960Wh of capacity. It claims up to 80 miles of range per charge under optimal conditions.
That’s quite respectable for a nearly 1 kWh battery powering a peak 1,350W hub motor!
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Custom-motor muscle with real torque
Puckipuppy’s Labrador Pro isn’t running just any hub motor. This one’s a custom PUCKIPUPPY-branded unit, and it cranks out a claimed 1,350W of peak power. In addition to an extra helping of wattage, this thing delivers serious torque, and it delivers it instantly.
Thanks to the smart torque sensor, the motor responds immediately to how hard you’re pedaling. You don’t get that jarring “kick” from cadence-sensor bikes. Instead, the assist feels intuitive and fluid, even when climbing steep dirt paths or rolling over beach dunes.
It’s the kind of responsive pedaling experience that makes you forget you’re even riding an electric bike, at least until you realize you’re doing a solid 25 mph while barely breaking a sweat.
Suspension and traction dialed in
One of the standout features of the Labrador Pro is its full-suspension setup, which instantly sets it apart from most fat tire e-bikes in this price range. Up front, you’ve got a sturdy hydraulic suspension fork with 130mm of travel, while the rear features its own shock that smooths out bumps, roots, and rough terrain. Whether rolling over rocky trails or dropping curbs in the city, the dual suspension keeps the ride comfortable and under control.
That plush suspension pairs perfectly with the bike’s 26” x 4” all-terrain fat tires, which offer a massive contact patch and plenty of cushion. The bike can float over sand, gravel, and even loose pine-needle trails with zero drama. These tires aren’t limited to only off-road performance either. On pavement, they give the Labrador Pro a smooth, stable feel, especially when aired up to road pressure.
And when it comes time to slow things down, the 180mm hydraulic disc brakes give you reliable, confidence-inspiring stopping power, even on fast descents or in wet conditions.
Drivetrain and speed
Backing up the torque-heavy motor is a Shimano 8-speed drivetrain, which shifts smoothly and gives you enough range to ride comfortably even without assist. That’s especially nice when your battery gets low, or when you want to dial down the motor to extend your range on a long ride.
The Labrador Pro is also a Class 3 e-bike, meaning it provides pedal assist up to 28 mph. There’s also a left-side thumb throttle that can get you moving without pedaling at all, and it’s zippy – topping out around 20 mph on throttle alone. Combined, these modes make the Labrador Pro equally useful as a car-replacing commuter or a weekend trail shredder.
Looks and utility of the Puckipuppy Labrador Pro
The Puckipuppy Labrador Pro comes in four different colors, though the orange option here is definitely the brightest and the most fun, at least in our opinion. No matter your color, the integrated headlight and rear brake light are a nice touch for safety to help you be seen, especially for early morning or dusk rides.
It also includes front and rear fenders, which help when you’re splashing through mud or wet pavement, and a heavy-duty rear cargo rack. Plus, the bike supports up to 400 lb of payload. That makes this bike more than just a toy – it’s also a workhorse capable of hauling groceries, gear, or just about anything you can throw at it.
The full-color LCD display mounted on the handlebars gives you real-time readouts of speed, battery level, distance, and assist level. The control pad on the left is intuitive, and gives you all the info you need at a glance.
Final thoughts on the Puckipuppy Labrador Pro
The Puckipuppy Labrador Pro is a seriously capable all-terrain e-bike with great specs at a competitive price of just $1,599. For riders who want a go-anywhere, do-anything machine with torque-sensing pedal assist, fat tires, and real power under the hood, this is a compelling option.
It’s not the cheapest fat tire e-bike out there, but you don’t want the cheapest bike when you’re barrelling down a rocky trail. And when you consider the powerful motor, torque sensor, 960Wh battery, hydraulic brakes, and full commuter-ready features like fenders and a rack, it starts to look like a solid value.
Whether you’re carving through mountain trails, powering across sandy beaches, or just blasting past traffic on your way to work, the Labrador Pro brings its A game every time.
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Super73, the lifestyle e-bike brand known for its moto-inspired designs, just dropped a teaser that has fans buzzing… and scratching their heads. In a cryptic Instagram post, the company shared a silhouetted image of a new two-wheeled electric vehicle alongside the promise of unveiling “an entirely new generation of electric mobility” next month.
The official debut is set for October 11th at the Moto Beach Classic, and while details are scarce, the image and language give us a few key clues.
First, there are the visuals. The teaser image shows a chunky, fat-tire two-wheeler that looks like a departure from Super73’s current lineup. The frame appears heavily stylized with what may be body panels that cover part of the traditional bike silhouette in the rear, or perhaps just extra gussets on the frame. There’s no visible suspension, neither in the fork nor the rear triangle (in fact, there’s no rear triangle at all, opting for a classic mini-bike styled frame instead), suggesting this could be a rigid ride. That could point to a lightweight design or a retro mini-bike platform that ditches extra components in favor of simplicity and affordability.
Pedals are still visible, keeping this squarely in e-bike territory (at least legally), but everything else about the bike leans much more toward electric moto than bicycle. With large off-road tires, a long flat seat, and a minimalist-looking cockpit, it gives off stripped-down dirt bike or electric pit bike vibes.
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There’s also a fairly large battery slung under the top tube. If the bike rides on 20″ tires like the rest of Super73’s lineup, then that could be a much bigger battery than we’re used to seeing. I overlaid a Super73-Z Miami on the image below, and you can see that the mystery bike’s battery dwarfs the one on the red Super73-Z. But those could also be smaller-diameter tires, meaning the battery may be a standard Super73 pack.
A red Super73-Z Miami overlaid on the teaser bike
Then there’s the caption. Super73 says they’re unveiling the “next big thing (figuratively speaking),” which might lend credence to the theory that this will actually be smaller than their usual offerings. Could it be a compact adventure mini-bike? A budget-friendly urban ripper? A youth-focused model? We’ve seen the brand expand into kids’ bikes before, so it wouldn’t be a shocker.
The real wildcard is how much power this thing will pack. Super73 has always leaned into the blurred line between e-bike and moped, and if this new model keeps pedals just for show while cranking serious wattage under the hood, we might be looking at something more akin to a Sur Ron competitor.
With recent shakeups in Super73’s leadership team and the seemingly frozen state of the long-awaited Super73’s C1X electric motorcycle, which only made it partway through development, perhaps this could be the new model replacing the company’s former motorcycle aspirations.
Whatever it is, it’s not just another iteration of the RX. This looks like a whole new category, possibly even a new platform for the brand. And in an industry where yearly innovation often just means a new paint job, it’s refreshing to see a company hint at something different.
Stay tuned – we’ll be watching closely when the curtain lifts next month.
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