Caterpillar Inc. posted second-quarter adjusted earnings of $4.72 a share, missing analysts’ consensus of about $4.88, as higher tariff costs and lower equipment prices weighed on profitability. Revenue edged up 1% from a year earlier to $16.6 billion, modestly topping expectations, but GAAP profit fell to $4.62 a share from $5.48. The manufacturer’s operating profit declined to $2.86 billion, giving an operating margin of 17.3%. Sales in the core Machinery, Energy & Transportation division slipped 1% to $15.67 billion, while the company’s order backlog expanded by $2.5 billion from the prior quarter, signaling continued demand for construction and mining equipment. Management said incremental U.S. tariff costs are now projected at $1.3 billion to $1.5 billion for 2025, up from earlier assumptions. Even so, Caterpillar raised its outlook, forecasting full-year sales to be “slightly higher” than 2024 and predicting moderate year-over-year growth in third-quarter sales and revenue. Investors focused on the earnings shortfall, sending the shares down about 3%–4% in early New York trading.