“This will have a material impact on our quarterly decremental margins as well as overall profitability for the segment in the quarter.”

In context

“pment purchases. Despite these pressures, it's worth reiterating that we continue to see robust utilization of equipment in the field. Josh, earlier you mentioned our decision to underproduce earthmoving retail demand in the fourth quarter of 2024, which successfully drove down field inventories over the past three months. Given the additional softening in retail demand that we're anticipating in 2025, we've made the decision to continue to underproduce retail in the first half of next year to ensure inventory levels are appropriately sized to respond to demand changes in the back half of 2025. In fact, much like large ag this past quarter, earthmoving lines at our North American factories will be shut down for approximately half the total production days in the first quarter of the year. This will have a material impact on our quarterly decremental margins as well as overall profitability for the segment in the quarter. Given the steady outlook for road building, combined with demand in global forestry being flat to down 5%, we expect these product lines to provide stability to our overall construction and forestry segment. This is Josh. Maybe just to summarize here, we feel good about our C&F business. However, we're being proactive, learning lessons from previous cycles as well as our ag business. Important to note that even with this underproduction, we're weathering the demand reduction in the competitive environment better than we have in the past. This is a testament to the efforts of our team to drive structural improvements alongside differentiated customer value, as we continue to concentrate our investments in margin-accretive opportunities. Josh Beal: Yeah. That's great insight into what appea”