(Bloomberg) -- Caterpillar Inc. warned that revenues will be “slightly lower” in 2025 as demand concerns weigh on the outlook of the heavy equipment maker.

The guidance, disclosed in a presentation, arrives at a tenuous time for global manufacturers, given the tariff threats by US President Donald Trump that could drive up costs and affect supply chains worldwide. The warning comes as Caterpillar reported fourth-quarter profit that beat Wall Street estimates due in part to higher-than-anticipated construction demand.

“Management’s 2025 commentary seems to suggest an outlook that’s below consensus, which is likely to put downward pressure on estimates,” Christopher Ciolino, Bloomberg Intelligence’s senior industry analyst, wrote in a note.

Shares of the Irving, Texas-based company fell as much as 5.8% in premarket trading in New York.

Caterpillar is viewed as a bellwether for global economic growth since it supplies heavy equipment to the construction, mining and energy industries around the world. Among the challenges ahead, Caterpillar also faces economic headwinds across China and Europe.

Still, the company could benefit this year from efforts by the Trump administration to bring back manufacturing to the US as well as any potential rise in global infrastructure projects.

Shares of Caterpillar had climbed more than 9% from the start of January to Wednesday amid optimism for an uptick in the company’s energy and transportation business, as well as its role as a leading producer of backup power for data centers.

Investors, though, have been concerned by elevated inventories of Caterpillar machines at dealerships that sell to consumers. Such stockpiles provide an insight into demand — high inventories suggest customers aren’t buying machines off dealer lots and low levels indicate strong consumption. Caterpillar said Thursday that it isn’t expecting a significant change in dealer inventories this year.

Fourth-quarter adjusted earnings were $5.14 per share, beating the $5.05 average estimate of analysts polled by Bloomberg.

(Updates shares and adds Bloomberg Intelligence comment.)

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