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.
Can an EV really help power your home when the power goes out? It’s one of the biggest FAQs people have about electric cars — but the answer can be a bit confusing. It’s either a yes, with a but – or a no, with an unless. To find out which EVs can offer vehicle-to-home (V2H) tech to keep the lights on or even lower your energy bills, keep on reading.
Modern EVs have big, efficient batteries capable of storing enough energy to power home for days. That can mean backup power during a storm or the ability to use stored energy during expensive peak hours and recharge again when kilowatts are cheap.
That’s all true – but only in theory. Because, while your EV might have a big battery, that doesn’t mean it has the special hardware and software that allow electricity to safely flow back out of the car baked in. Car companies call this vehicle-to-home (V2H) or bi-directional charging, and only a handful of models currently support it. That’s that, “yes, with a but” asterisk.
Advertisement – scroll for more content
Yes, an EV can power your home, but it has to be one of these.
So, if you’re excited about the upcoming RSX or Honda’s 0 electric rides and want to take advantage of V2x tech, you don’t have much longer to wait. No word on pricing.
Ford F-150 Lightning
F-150 Lightning powers home; via Ford.
Ford made early headlines using its F-150 Lightning as a life-saving generator during winter ice storms and hurricanes, so it should come as no surprise that it’s included in this list. The best-selling electric truck in America can send up to 9.6 kW of power from its onboard batteries back to the house. More than enough to keep the lights on and the refrigerator running during an outage.
To make it work, you’ll need to install the Charge Station Pro (formerly called Intelligent Backup Power) home charger, the Home Integration System (HIS), which includes an inverter, a transfer switch, and a small battery to switch the system on, as well Ford’s Charge Station Pro 80A bi-directional charger (which comes free with the Extended Range F-150 Lightning, but costs about $1,300 otherwise).
All-in, you’re looking at about $5,000 in hardware, plus installation, to make it work.
When paired with the Quasar 2 bidirectional charger from Wallbox (and the associated Power Recovery Unit, or PRU), a fully-charged Kia EV9 can power a standard suburban home for three days. Longer, still, if you’re keeping the energy use low. The Wallbox Quasar 2 isn’t cheap, though – pricing starts at $6,440 (again, plus installation). For that price, you the PRU plus a wall-mounted 12 kW L2 charger with 12.8 kW of with discharge power on a split-phase system.
Pretty much all the GM EVs
Chevy Silverado, Equinox, and Blazer EVs at Tesla Supercharger; GM.
With the exception of the Chevy Brightdrop, GMC Hummer EV, and the hand-built, ultra-luxe Cadillac CELESTIQ, every Ultium-based GM EV can send battery power back to your home through GM Energy’s Ultium Home System – arguably the most fully integrated EV + battery backup + solar option out there outside of Tesla.
GM Energy says its new 19.2 kW Powershift Charger delivers around 6-7% more juice than a typical 11.5 kW L2 charger, delivering up to 51 miles of range per charge hour. Bi-directional charging requires the Powershift Charger to be paired up with a compatible GM EV and the GM Energy V2H Enablement Kit. The full system retails for $12,699, plus installation, and can be financed through GM Financial.
NOTE: some 2024 models might require a software update to enable V2H functionality, which can be done either at the dealer or through an OTA update.
Taiga Orca WX3
Taiga Orca WX3; via Taiga.
Candian startup Taiga have been offering high-performance electric watercraft for several years now. For 2026, their third-gen offering features automotive-grade fast charging that will allow riders to plug into the same fast charging networks their electric cars and trucks use, getting them back in the water in 30 minutes or less.
That said, this isn’t an article about fast-charging your PWC. Taiga is incorporating bidirectional charging into all its electric watercraft as of 2026, turning the PWC EVs into a mobile energy resources that can recharge equipment at the dock, power hotel loads on larger yachts, or bring power to an off-grid cabin or campsite.
That rounds off the list of vehicles that ship with V2H software baked in, so if you’re wondering whether or not your EV can be used to power your home, now you know the answer is yes, as long as it’s one of the ones listed here. But you might remember that I answered the initial question by saying it was either a yes, with a but – or a no, with an unless. So if you want to use your car’s battery as a backup, but don’t have one of the EVs listed above, that doesn’t mean you’re completely out of luck.
No, with an unless
Fred Lambert explains Sigenergy V2X system.
As some of the earliest and most enthusiastic EV adopters, Tesla fans have also been among the loudest advocates for using the energy stored their cars’ batteries to back up their homes — or even the grid itself. Unfortunately for them, the slow-selling Cybertruck is the only Tesla vehicle that officially supports bi-directional charging. If you’re one of the many Model 3 and Y owners frustrated by those delays, there’s good news: those vehicles are now capable of V2H charging thanks to an “impressive” Powerwall competitor, Sigenergy.
The good news doesn’t stop there, however. The Sigenergy V2X also works with both the popular Kia EV6 and Electrek‘s 2024 EV of the Year, the Volvo EX30 over the DIN70121 protocol, and several VW/Audi/Porsche and Mercedes-Benz EVs over the ISO15118-2 protocol.
Our own Editor-in-Chief, Fred Lambert, recently went on a Sigenergy deep dive with Sylvain Juteau, President of Roulez Electrique, and came away deeply impressed with the system. I’ve included the video, above, and you can read more about the system itself at this link.
And, of course, I look forward to learning about any V2H models or more universal battery backup systems from you, the smartest readers in the blogosphere, in the comments.
If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
FTC: We use income earning auto affiliate links.More.
The Trump administration needs to strike multiple deals with U.S. miners to secure the nation’s supply chain against China, said Mark Chalmers, CEO of Energy Fuels, a miner focused on uranium and rare earth minerals.
The Pentagon decision to take an equity stake in MP Materials, the largest U.S. rare earth miner, in July and support the company with a price floor surprised many in the industry, Chalmers told CNBC.
But it was a necessary step that the White House should now follow with more deals to diversify the U.S. supply chain and reduce the risk that would come with backing a single national champion, the CEO said.
“One company doesn’t fix it,” Chalmers said of the MP Materials deal. “You have to have multiple deals to ensure that you don’t just have the company risk, because all companies aren’t going to deliver.”
The White House is “not ruling out other deals with equity stakes or price floors as we did with MP Materials, but that doesn’t mean every initiative we take would be in the shape of the MP deal,” a Trump administration official told CNBC.
Rare earths are key inputs in weapons platforms such as the F-35 warplane as well as consumer products like electric vehicles and smartphones. The U.S. is almost entirely dependent on China, which supplied 70% of rare earth imports in 2023, according to the U.S. Geological Survey.
China has manipulated the market by suppressing prices to drive Western competition from the market, said Ryan Castilloux, founder of Adamas Intelligence, a critical mineral market research firm. The MP deal demonstrated that the U.S. is willing to break with free market ideals and push back against China by mimicking its model of strategic capitalism when necessary, Castilloux said.
“We’ve seen just how disadvantaged the free market view is versus a long term, industrial policy driven market — and something needed to give,” Castilloux, an expert on critical minerals, told CNBC.
Possible rare earth targets
Energy Fuels’ stock has surged nearly 200% since the MP deal on July 10, as investors speculate that it could be a deal target for the Trump administration. Critical mineral miner NioCorp Developments is also up almost 200%, Ramaco Resources has gained 140%, and USA Rare Earth is up more than 70%.
MP Materials will likely need more heavy rare earths as it develops a second facility to make magnets under the Defense Department deal, Castilloux said. Heavy rare earths are needed to produce magnets that can withstand high temperatures in EV motors and defense industry applications, he said.
Headquartered in Denver, Energy Fuels is the largest uranium miner in the U.S. and is forming a rare earth operation through mines it has acquired around the world. Its operation will produce heavy rare earths, Chalmers said.
Energy Fuels is focused on “providing a product that is attractive to the U.S government” and complements the strengths of MP Materials, the CEO said.
“The government cannot bet on one horse — it just doesn’t make sense,” Chalmers said. “We spend a lot of time in D.C. making sure they understand the merits of our strategy,” he said.
Trump eyes lithium
Other critical minerals like lithium, cobalt and graphite are ripe for federal investment to smooth out volatile price fluctuations that undermine U.S. miners, said Rich Nolan, CEO of the National Mining Association. Those minerals are all used in batteries, among other applications.
The Trump administration has proposed an equity stake in Lithium Americas, as the Canadian company renegotiates the terms of a $2.2 billion loan from the Department of Energy for its Thacker Pass mine in northern Nevada. The mine is expected to become one of the largest sources of lithium in North America, with the first phase of the project scheduled to start operations in late 2027.
Lithium Americas stock surged more than 90% this week on news of the potential government stake.
Albemarle CEO Kent Masters told CNBC that something “in the ballpark” of the MP deal could apply to the lithium sector. Albemarle, headquartered in Charlotte, North Carolina, is one of the largest lithium producers in the world.
“What you want to do is move the market such that private industry can invest behind it,” Masters told CNBC in July, pointing to Apple‘s offtake agreement with MP just days after the Defense Department deal.
Miners seek price floors
While it might take a government equity stake to move the market in some cases, the price floor established by the Pentagon in the MP deal is the “critical part” that allows private industry to invest and build out the supply chain, Masters said.
Price support from the federal government “sends a true market signal that these investments are long term, that they are here to stay,” the National Mining Association’s Nolan said.
Under the MP deal, the Pentagon set a price floor of $110 per kilogram for neodymium-praseodymium oxide, orNdPr, a key input in rare-earth magnets. The government pays MP the difference when the market price is below $110 but in turn takes 30% of the upside when the price is above $110.
The price of NdPr surged 40% in the wake of the MP deal, Castilloux said.
“It serves as a blueprint for any market where suppressed pricing is slanting the competitive playing field against the U.S. and its allies,” the analyst said of the price floor. The deal signals that “there is a way to break free of China’s artificially suppressed pricing,” he said.
This month, we’ve been running a sidebar survey about what losing the federal home solar tax credit means for Electrek readers and how it impacts their solar power plans. After receiving nearly two thousand responses, here’s what you told us.
With the 30% federal home solar tax credit set to expire at the end of this year, homeowners everywhere are showing mixed reactions. And, in the case of nearly 30% of our readers, a sense of urgency. Nearly four in ten (38.7%) of our solar survey responders said that they were “deeply concerned” about the credit ending, and moving up plans to install a home solar system before the credit is gone.
That response suggests the industry could see a meaningful surge of demand in the final quarter of the year as households look to lock in tax benefits while they still can.
Meanwhile, 16.4% of Electrek survey respondents admitted they had no idea there even was a 30% federal solar credit. That fact, while frustrating, serves to highlight the need for better public awareness around both clean energy incentives, and the potential benefits to adding solar power to your home.
Interesting, but does it matter?
Home solar panels with Powerwall battery; via Tesla.
The general public? The people who don’t read Electrek, don’t follow the cimate tech blogs, and generally have no idea what’s going on in the world of clean energy incentives? Getting rid of a tax credit they don’t even know exists may not move the market one way or the other. And, frankly, I don’t think it will.
If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
FTC: We use income earning auto affiliate links.More.