Caterpillar Inc. reported adjusted earnings of $4.72 a share for the second quarter of 2025, missing analyst expectations of roughly $4.88 and sliding from $5.48 a year earlier. Revenue slipped 1% year-on-year to $16.6 billion but edged past consensus forecasts of about $16.3 billion. GAAP profit came in at $4.62 a share, and operating profit totaled $2.9 billion, giving the construction-equipment maker a 17.3% operating margin. Management said weaker price realization and higher U.S. tariffs more than offset a modest rise in sales volume. The company now expects to absorb $1.3 billion to $1.5 billion in incremental tariff costs this year, toward the top end of its earlier range. Even so, the order backlog expanded by $2.5 billion from the prior quarter, bolstered by demand for heavy machinery, energy and transportation equipment. Caterpillar forecast that third-quarter sales and revenue will grow moderately from a year earlier and predicted “robust” construction demand in the fourth quarter. For the full year, the company now anticipates sales and revenue to be slightly higher than in 2024 but warned that adjusted operating margins are likely to land in the lower half of its target range because of tariff headwinds. Management also expects price headwinds to ease late in the year. The mixed results sent the shares down as much as about 4% in pre-market trading before trimming losses, marking the third earnings-per-share miss in the past four quarters.