Industrial bellwether Caterpillar is one of the world’s leading providers of heavy construction machinery and a major player in industrial engines and transportation products. While clearly a cyclical company, management has worked intensely to reduce earnings volatility and structurally improve profitability and cash flow. Leadership established targets in 2017 to boost margins 300-600 basis points through the cycle, generate $4 billion-$8 billion in annual free cash flow, and return all industrial free cash substantially to shareholders via repurchases and a progressive dividend. Management has executed very well and tackled costs via capacity rationalization and expense controls. Caterpillar has established a new goal to reach $30 billion in annual services sales by 2030. Having reached $24 billion last year, the company is well on its way to achieving this target, thereby improving margins and reducing cyclicality. The services strategy includes increasing machine digitization to enhance predictive maintenance and increase the attach rate of customer value agreements.