“We anticipate operating margins of 10.4%, up 20 basis points from 2025 actuals.”

In context

“midpoint of the revenue range. As I noted earlier, the Marine group has been on a remarkable growth story. It will continue in 2026. Our outlook for this year anticipates revenue in a range of $17.3 billion and $17.7 billion with a 30 basis point improvement at the operating margin line. This should result in operating earnings around $1.3 billion. In Technologies, 2026 revenue is expected to be up to $13.8 billion. Operating margins are expected to decrease around 30 basis points to 9.2%. We continue to see long-term low single-digit growth from the group and continued industry-leading margins. The EBITDA margin is quite impressive. This should leave operating earnings of about $1.3 billion. So for 2026 companywide, we expect to see revenue in the range of $54.3 billion to $54.8 billion. We anticipate operating margins of 10.4%, up 20 basis points from 2025 actuals. This should leave us with operating earnings around $5.7 billion at the midpoint of the anticipated revenue range. All of this rolls up to an EPS forecast between $16.1 and $16.2. None of this contemplates or includes any capital deployment. On a quarter basis, if one were to assume an average of $4 per quarter, the first quarter would be off 40¢. Second, off 30¢. The third, off 10¢. And the fourth up 80¢ on a typical fourth-quarter increased volume. To wrap up, as we go into 2026, we feel very good about our business and the prospects for the year. We will do our level best to execute and beat the forecast we have given you. As always, we will be laser-focused on operations. Nicole, back to you. Nicole Shelton: Thank you, Phebe. As a reminder, we ask participants to ask one question and”