“However, in our alternative scenario, assuming the tariffs in place today remain for the duration of 2025, and without any additional mitigation actions, which is unlikely to happen, we would still expect to remain within the margin target range at the expected levels of sales and revenues.”

In context

“down slightly versus 2024. This result highlights the resilience of our top line, which is supported by the strength of our backlog and the diversity of our end markets. Now, onto margins. In a pre-tariff scenario, which assumes no impact from tariffs, we would have expected full year margins to remain in the top half of the adjusted operating profit margin range at the expected levels of sales and revenue. We have also assessed potential cost impacts from the current tariffs for the remainder of the year before any additional mitigation actions. Given the uncertainty of what tariff rates could be and the timing of any additional mitigation actions that we may take once the situation becomes clearer, it is not possible to derive an accurate estimate of the net full year impact of tariffs. However, in our alternative scenario, assuming the tariffs in place today remain for the duration of 2025, and without any additional mitigation actions, which is unlikely to happen, we would still expect to remain within the margin target range at the expected levels of sales and revenues. Also, I want to remind you about two important points impacting our year-over-year comparatives. As we said in January, we expect the impact of negative price realization to be greater in the first and second quarters of the year. This will moderate as we move into the second half. In addition, we also do not expect a significant decrease in machine dealer inventory as we saw in the fourth quarter of 2024 and still expect dealers to hold inventories about flat for the full year. These factors help to underpin our confidence about the second half of the year. Moving on, we continue to expect restructuring costs of approximately $150 million to $200 million in 2025, and our anticipated annual effect of global tax rate remains at 23% for 2025 excluding discrete items. Turning to Slide 17. To”