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.

Caterpillar warned on Tuesday U.S. tariffs would pose significant challenges in the second half of the year and cost the construction equipment maker up to $1.5 billion in 2025.

Tariffs are having a bigger impact on Irving-based Caterpillar Inc.’s margins even as demand for the company’s iconic yellow diggers and bulldozers