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.

The construction and mining equipment giant is expecting higher trade-related costs in the second half of the year. Meanwhile, AI data center demand is driving growth in the power generation business.