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

Caterpillar reported a lower second-quarter profit on Tuesday, hurt by sluggish demand, pricing pressure and higher costs tied to U.S. tariffs. Adjusted profit in the second quarter fell to $4.72 per share,

The company posted adjusted earnings of $4.72 per share, missing the consensus estimate of $4.80. GAAP earnings came in at $4.62 per share, down from $5.48 a year earlier, and compared with the consensus estimate of $4.79 a share.