“These mitigation actions will completely offset the tariff headwinds in the fiscal year with carryover benefit to completely cover the full annualized impact we will encounter in 2026 under these assumptions.”

In context

“lized basis. This assumes no waiver or exemption mechanism and the country of origin for semiconductor fabrication will be based on the location of fabrication. In 2025, we expect the gross incremental impact to be $60 million, around 0.35% of sales. So in total, our gross impact in 2025 is expected to be $245 million and $455 million on an annualized basis, which is around 2.5% of sales. We are mitigating these impacts through targeted surcharges and pricing actions, production reconfiguration using our global manufacturing footprint and additional supply chain regionalization initiatives. In 2025, we're targeting $190 million of incremental price and surcharges in the fiscal year with another $55 million of operational mitigation benefits from inventory on hand and supply chain actions. These mitigation actions will completely offset the tariff headwinds in the fiscal year with carryover benefit to completely cover the full annualized impact we will encounter in 2026 under these assumptions. As stated in the February call, we had pricing actions ready to be implemented when the first IEEPA tariffs took effect. Pricing actions are underway across all of our businesses, and all increases will be completed inside the quarter, including surcharges to our backlog where applicable. The remainder of our mitigation center around leveraging our global operational footprint that gives us a lot of flexibility to move production capacity around. Clearly, our regionalization efforts over the years put us in a strong position to drive these actions with speed effectiveness. Mike, I will now pass it over to you. Mike Baughman: Thanks, Ram. Please turn to slide 10 where I will walk through the details of our 2025 guide for sales and adjusted EPS. As Lal and Ram discussed, the sustained momen”