Caterpillar shares are rising in morning trades, after the maker of construction and mining equipment missed second-quarter profit expectations but beat on sales and raised its full-year growth outlook.

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 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.