“We've seen a little bit of change, maybe a little bit more inflationary pressure on materials, but offset by some improvements on the overhead side as we've added volume, we're seeing more overhead efficiency. And so we'll be slightly unfavorable from a production cost standpoint ex tariffs.”

In context

“ons on the cost and tariff side. Has anything changed in terms of the expectation for the full year and how you expect to play out in terms of price versus cost? Josh Beal: Yes. Thanks, Tim. I mean you're right, some changes over the course of the quarter. We're probably closer now to price/cost neutral for the full year, just given particularly a little bit of a reduction on the pricing side in C&F. Tariff costs -- and by the way, that price cost neutral is inclusive of the $600 million of incremental tariffs that we're seeing this year. So we're covering that tariff piece coming into the business in 2026. But we've -- tariffs have been roughly flattish quarter-over-quarter. There were some puts and takes there, but that $1.2 billion for the full year guide on tariffs is still unchanged. We've seen a little bit of change, maybe a little bit more inflationary pressure on materials, but offset by some improvements on the overhead side as we've added volume, we're seeing more overhead efficiency. And so we'll be slightly unfavorable from a production cost standpoint ex tariffs. But overall, again, price/cost neutral with the price actions that we're taking. Joshua Jepsen: Yes. And maybe just one thing. First quarter ex tariffs, we were production cost favorable. So I think it speaks to just the things we can control and how we're operating in an environment with a fair bit of uncertainty. Operator: Our next question comes from Steven Fisher from UBS. Steven Fisher: I echo my sentiments. Josh appreciate the help. In terms of some of the regional dynamics, I think there were expected to be some pretty big differences between North America and Europe in the first quarter. It sounds like maybe North America ended up being a little bit better on the tractor side, perhaps. Anything in particular from a regional production perspective we should be expecting or just gen”