“As we mentioned, we expect pricing to be positive across all three segments.”

In context

“f the cadence in Q1. But I'm just wondering if we could get a little bit of a cleaner bridge on what the margin expectations are for 2025. What are the puts and takes in terms of productivity costs that you're carrying over? Raw materials, and the headwinds from the production in the first half? Josh Jepsen: Yeah. Good to see you, Kristen. I hear you. I'll take a shot and team jump in. I think as we think about margin, there's a few things at play here as you look at 2025. First and foremost and notably, I think, is just the continued volume declines that we're seeing in the market. Expectations, as you look at the individual guides, would be that total equipment would be down around 13% for the full year. And certainly, that continued level of volume reduction is weighing on the margins. As we mentioned, we expect pricing to be positive across all three segments. And Josh Jepsen mentioned favorable production costs as well. So we're seeing favorable price costs. And in addition to that, obviously, some of the decisions we've made in terms of reducing costs this year will carry over into next year as well, providing a lift. And so overall, as we mentioned, margin expectations relative to history are very strong. I think maybe lastly, if you think about decrementals, probably a little bit higher than normal on the large ag business. That's really a mix-driven impact, as we think about the large ag business in North America being down around 30%. Our sales reduction will be less than that given the comp to 2024 underproduction that we did this year. But still, the outsized reduction in one of our most profitable regions and in our most profitable pro”