“I mean, as we'll see a pickup, particularly in North America production here in the second quarter.”

In context

“eneral for Q2, how to model that and any of the differences for the rest of the year because I think those can certainly affect the margin progression in large ag. Josh Beal: Yes. Thanks for the question, Steven. Regional mix was certainly an impact on large ag in the first quarter. I mean if you look at overall volume in the large ag business in Q1, we were effectively flattish year-over-year in terms of total volume, but that mix was Europe up, Asia, it was a smaller part of our large ag business, but Asia up and then both North America and South America down year-over-year in Q1. So given the different profitability profile, excuse me, for those different geographies, that was unfavorable mix for us in the first quarter. That starts to change as you move through the course of the year. I mean, as we'll see a pickup, particularly in North America production here in the second quarter. And as Josh Jepsen mentioned, our order books are for tractors as an example, now into the fourth quarter. So we've got good confidence that we'll see that pick up and we'll revert to a more normal mix going forward, and that will aid margins. I mean you can expect us in large ag to do double-digit margins each quarter for the rest of the year. So it really is a mix that's improving as you move through 2026. Joshua Jepsen: Yes, Steven, I think you see that, too, like in gross margins, that really rings through. And when you look at the first quarter versus the rest of the year, where we bounce back and look a lot more like what do we do for gross margins in PPA in 2025 in the remainder of the year, that's where we operate. And a big part of that is a little bit more normal mix geographica”