Quick Read – Eaton (ETN) grew its electrical order book 42% organically while Vertiv (VRT) built a $15 billion backlog on 252% order growth, both posting Q1 beats. – Caterpillar (CAT) beat Q1 EPS by 19% as its Power Generation segment grew 41% for four consecutive quarters,…
cked by a record backlog. – Data centers are projected to consume 12% of U.S. electricity by 2028, and that makes power infrastructure the first place AI earnings leverage appears, ahead of compute itself. – AI data center construction is a power problem before it is a compute problem, and the equipment that moves, conditions, cools and backs up electricity inside those buildings is where the earnings leverage is showing up first. Three U.S.-listed industrials have become the cleanest ways to own that buildout: Eaton (NYSE:ETN) for switchgear and thermal management, Vertiv (NYSE:VRT) for critical power and cooling infrastructure and Caterpillar (NYSE:CAT) for on-site backup generation
Each posted a first-quarter beat, each raised guidance, and each is trading with a forward multiple that reflects real order acceleration rather than a story. Here is how they stack up going into the July earnings cycle. The macro backdrop is unusually supportive.
The Department of Energy projects data centers will account for up to 12% of U.S. electrical demand by 2028, and PJM Interconnection’s independent market monitor concluded that “data center load growth is the primary reason for recent and expected capacity market conditions” in the country’s largest grid region. That is the tailwind these three names are monetizing. General Motors, POSCO, and 50,000+ everyday investors have already backed lithium producer EnergyX.