CLAIM #20449 · DE (DE) · 2026Q2 earnings call · May 21, 2026 · due Oct 31, 2026
“And Josh noted, that is just the way the order book was built this year for a much heavier fourth quarter with respect to our large tractors. That are going to be settled here in The U.S. And so that is going to help on the overhead absorption as we move a little bit later in the year.”
Brent Norwood · CFO
How to check this claim
Look at: Overhead absorption/production rates for large tractors (large ag equipment segment), Q4 fiscal year
It came true if: Q4 production rates for large tractors higher than Q3 and prior quarters this fiscal year, as reflected in improved operating margin/overhead absorption for the large ag equipment segment
Where: Company segment operating results (10-K / Q4 earnings release and call commentary)
In context
“usiness last year. And we are starting to lap the indirect inflation that we that we saw come in from tariffs in the back half the last year as well. So the comps become more favorable, but I would agree with you that we are seeing some high levels of inflation over the last 2 or 3 months. Hey, Mig. T. Brent Norwood: This is Brent. So just to add on to that, know, and I think Josh has covered this already, but our pricing is much more favorable in the back half as well. So as we think about price cost ratios, those do those do improve meaningfully. And I think Josh has covered the commentary on inflation quite well, but the other thing that see, particularly for our large ag factories, is a little bit of better absorption in the fourth quarter as production rates are significantly higher. And Josh noted, that is just the way the order book was built this year for a much heavier fourth quarter with respect to our large tractors. That are going to be settled here in The U.S. And so that is going to help on the overhead absorption as we move a little bit later in the year. Thanks, Mig. Analyst: Thank you. Operator: Our next question comes from Timothy Tighan from Raymond James. Your line is open. Analyst (Tim Thein): Thank you. Good morning. My question is just on the kind of the sentiment and the feedback that you and the dealer base is hearing in North America with respect to large ag You know, I guess I guess you do not try and make it a habit to forecast what happens with the spring EOP. But I am just curious. I mean, your own expectations or know, the feedback you are hearing from dealers, how you expect that you know, may play out? Obviously, there is a lot of crosscurrents in the market, but coming from a low base, etcetera. So I am just curious, like, to the extent you know, you what you can kind of think about how you expect that or how the dealers”
Verify independently
SEC filings for DE ↗ · Claim quote is verbatim from the 2026Q2 earnings call.