Amid a strong year for the industrials sector, U.S. machinery giant Caterpillar (NYSE: CAT) was among the most notable standouts of 2025. Using the Industrial Select Sector SPDR Fund (NYSEARCA: XLI) as a proxy, the sector delivered a total return of around 19% last year. This ranked third among the stock market’s 11 sectors.
Caterpillar’s performance was significantly more impressive, with its total return coming in at 60%. Data center buildouts have been a huge tailwind for the company, which provides several key pieces of in-demand equipment.
