“Global forestry markets are expected to remain flat.”

Why this grade

Before the flat forestry market outlook came due, management revised it down to an expected 5% decline, a downward revision of the forward guidance.

Deviation basis: percentage point change in expected global forestry market growth, from flat (0%) to -5%

In context

“on and Forestry industry outlook. Christopher Seibert: Industry sales for earthmoving equipment in the U.S. and Canada are expected to be flat to up 5%. And compact construction equipment in the U.S. and Canada is also expected to be flat to up 5%. Construction markets are expected to experience modest growth, supported by employment at all-time highs and construction backlogs at robust levels. U.S. Government infrastructure spending continues to bolster the industry. Additionally, declining interest rates, increasing investments in rental fleets, and surging data center construction starts are also providing support. And while U.S. single-family housing starts are expected to show modest improvement in 2026, investment activity in the private commercial sector continues to be restrained. Global forestry markets are expected to remain flat. Global road-building markets are expected to remain flat at strong levels. Continuing with our 12. 2026 net sales are forecasted to be up around 10%. Our net sales guidance for the year includes about three points of positive price realization and one point of positive currency translation. The segment's operating margin is projected to be between 8-10% as the benefits of higher North American earthmoving volumes and price realization are tempered by incremental tariff expense. Switching to our Financial Service operations on slide 13. Worldwide Financial Services net income attributable to Deere & Company was $93 million for the fourth quarter. The year-over-year increase was mainly due to favorable financing spreads, special items, and the lower provision for credit losses. Josh Beal: F”