Shares of the company, often viewed as bellwether for the industrial economy, fell about 4% in premarket trading after it also flagged a tariff impact of $400 million to $500 million in the third quarter.

Caterpillar missed second-quarter profit expectations today due to sluggish demand for construction equipment and warned of up to $1.5 billion hit from costs tied to U.S. tariffs in 2025.

Caterpillar posted weaker-than-expected quarterly profit and warned U.S. tariffs could pose significant headwinds in the second half and cost the construction and mining equipment maker up to $1.5 billion in 2025.