Caterpillar Inc. (NYSE:CAT) saw its stock rise in premarket trading on Tuesday, following the company’s second-quarter earnings report that surpassed analysts’ profit expectations, even though revenue fell short.

Revenue for the quarter dropped by 3.6% year-over-year to $16.69 billion, falling below analysts’ estimates compiled by Visible Alpha. Despite an 8.2% decline in profits to $2.68 billion, Caterpillar’s adjusted net income—accounting for approximately $250 million in one-time expenses, such as restructuring costs—exceeded forecasts and rose to $2.93 billion from the previous year.

In line with the first quarter, sales in Caterpillar’s Construction Industries and Resource Industries segments decreased, while the Energy & Transportation segment experienced a slight increase. The overall drop in sales volume, driven by reduced dealer inventory, was partially offset by higher prices.

Caterpillar CEO Jim Umpleby emphasized the company’s strong performance, noting higher adjusted operating profit margins, record adjusted profit per share, and robust free cash flow from Machinery, Energy, and Transportation. He attributed the results to the company’s diverse end markets and disciplined execution of its long-term growth strategy.

Caterpillar shares increased 3.7% to $328.50 in premarket trading, representing an 11% increase since the beginning of 2024.