“Segment operating margin for the full year is forecasted between 11-13%, reflecting stability in international markets amidst incremental tariff and mix headwinds with Large Ag in the U.S. declining another year.”

In context

“ile soybean and corn acreage is expected to grow at a trendline pace in Brazil, customer demand for equipment has been tempered due to the high-interest rate environment. Additionally, strong global crop yields are weighing on prices, and the recent trade agreement between China and the U.S. creates uncertainty around demand for Brazil exports of soybeans. In Argentina, industry growth is anticipated to moderate after robust growth in 2025. Industry sales in Asia are expected to be down 5% following slight gains in India last year. Moving to our segment forecast on Slide eight. We anticipate Production and Precision Ag net sales to be down 5-10% in fiscal year 2026. The forecast assumes roughly 1.5 points of positive price realization and about 1.5 points of positive currency translation. Segment operating margin for the full year is forecasted between 11-13%, reflecting stability in international markets amidst incremental tariff and mix headwinds with Large Ag in the U.S. declining another year. Slide nine provides our forecast for the Small Ag and Turf segment. Josh Beal: We expect fiscal year 2026 net sales to be up around 10%. This includes two points of positive price realization as well as one point of positive currency translation. The segment's operating margin is projected to be between 12.5-14%, reflecting strength in the Dairy and Livestock segment. Shifting to Construction and Forestry on slide 10. Christopher Seibert: Net sales for the quarter were up 27% year over year to $3.382 billion, due to higher shipment volumes. Price realization was negative by about one point, while currency translation was positive in the quarter by roughly 1.5 points. Operating profit increased to $348 million, resulting in a 10.3% operating margin. Higher shipment volumes and a positive s”