“We expect our sales merchandising programs will continue yielding results, supporting strong sales to users, but a headwind to our price realization in the quarter with the unfavorable impact, roughly half the size we saw in the second quarter of 2025.”

In context

“anticipated loss on the divestiture of non-U.S. entities. On taxes, we are evaluating the impact of recently enacted U.S. legislation and do not currently expect this change to have a material impact on our 2025 effective global tax rate, which we have previously estimated to be 23.0% for 2025, excluding discrete items. Turning to Slide 15. To assist you with your modeling, I'll provide our third quarter assumptions. Based on what we see today, we anticipate third quarter sales will grow moderately versus the prior year, with higher volumes across all three primary segments. By segment, in Construction Industries, we expect sales increase in the third quarter versus the prior year on volume growth driven by strong sales to users. The year over price comparison begins to ease this quarter. We expect our sales merchandising programs will continue yielding results, supporting strong sales to users, but a headwind to our price realization in the quarter with the unfavorable impact, roughly half the size we saw in the second quarter of 2025. This headwind should continue to diminish in the fourth quarter. In Resource Industries in the third quarter, we expect slightly higher sales versus the prior year, primarily due to higher volume, partially offset by an unfavorable price realization. The impact of price is expected to be similar to what we saw in the second quarter versus the prior year. In Energy & Transportation in the third quarter, we anticipate sales growth versus the prior year driven by continued strength in power generation. We also expect higher sales in oil and gas driven by Solar Turbines and turbine-related services. Price realization should remain favorable as well. Now I'll provide some color on our third quarter margin expectations. Excluding the net impact from incremental tariffs, we expect the third quar”