“For fiscal year '25, our outlook remains at $750 million as benefits from a favorable compare to special items related to the sale of Banco John Deere and lower SA&G expenses are partially offset by less favorable financing spreads.”

In context

“out Europe. Moving on to the Construction and Forestry segment outlook on Slide 12, 2025 net sales remain forecasted to be down between 10% and 15%. Net sales guidance for the year includes one point of negative net price realization and flat currency translation. The segment's operating margin is now projected to be between 8.5% and 11.5% due primarily to tariff impacts and, to a lesser degree, lower price realization. Now, transitioning to our financial services operations on Slide 13. Worldwide financial services net income attributable to Deere & Company in the second quarter was $161 million. Net income was flat due to less favorable financing spreads and a higher provision for credit losses which were offset by lower SA&G expenses and a reduction in derivative valuation adjustments. For fiscal year '25, our outlook remains at $750 million as benefits from a favorable compare to special items related to the sale of Banco John Deere and lower SA&G expenses are partially offset by less favorable financing spreads. And finally, Slide 14 outlines our guidance for net income, effective tax rate, and operating cash flow. For fiscal year 2025, our outlook for net income has widened to between $4.75 billion and $5.5 billion. Next, our guidance incorporates an effective tax rate between 20% and 22%. And lastly, cash flow from the equipment operations remains projected between $4.5 billion and $5.5 billion. This concludes our formal comments. We'll now shift to a few topics specific to the quarter before we open up the lines to questions from our investors. Let's begin our discussion with Deere's performance in the quarter. We saw net sales increase sequentially, albeit down year-over-year. Additionally, margins were down roughly 2 points year-over-year but grew sequentially to come in at just under 19% fo”