The company is targeting a global market of around $5 trillion for energy transition infrastructure between 2021 and 2040, Umpleby said.
“Capital spending in the mining sector has been relatively subdued over the past few years and we believe it will increase,” he told Reuters after the company’s investor day meetings.
Executives reaffirmed the heavy machinery, energy and transportation services giant’s annual revenue targets of $28 billion by 2026.
Rising demand for minerals will expand the total addressable market for renewable energy, Umpleby said. “It requires more mining equipment, which gives us an opportunity,” he said.
Capital expenditure for mining in 2022 has already exceeded that of the previous eight years and the trend is expected to continue as companies reinvest in their fleets to replace aging equipment to scale up operations.
Caterpillar’s overall cash flow for capex expenses increased to $346 million in 2022, from $252 million last year, as the company allocated investments toward scaling technology, artificial intelligence and environmental, sustainability and governance services.
On Tuesday, the company’s board of directors approved a new $15 billion share buyback. Shares rose 2.1% on the news.