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While not providing a specific number, Luciano Pires, EVP & CFO, offered a qualitative bridge for the expected significant increase. He detailed positive drivers for Q3, including higher prices and volumes with lower costs in Phosphates; higher prices and lower turnaround costs in Potash; and guided for Mosaic Fertilizantes EBITDA to be 'over $200 million,' and potentially 'well above,' confirming a much stronger quarter is anticipated.

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President and CEO Bruce Bodine explained Q1 costs were high due to weather-related curtailments at the low-cost Belle Plaine mine. He expects costs to improve significantly as the Esterhazy hydroflow project adds low-cost tonnes. EVP and CFO Luciano Pires clarified that costs should be in the target range in the second half of the year.

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Jenny Wang, EVP of Commercial, clarified that the strategic shift in the Brazilian customer base has already occurred and she does not anticipate a major volume change between the first and second halves of the year. Luciano Pires, EVP and CFO, reiterated that the $120 million quarterly EBITDA run rate for Fertilizantes should be considered a floor, with upside expected from Q2 onwards.

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Josh Beal, Director of Investor Relations, detailed that the increase was driven by higher rates on Europe, steel, and India, with Europe and steel comprising about 50% of the total. Mitigation efforts include USMCA certification and sourcing changes. CFO Joshua Jepsen added that excluding tariffs, the equipment operations' decremental margin is a solid 40%.

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Josh Rohleder, Manager of Investor Communications, noted that while used combine inventory has improved, the focus remains on high-horsepower tractors, where inventory levels have stabilized but sales pace is still uncertain. CFO Josh Jepsen added that moving used inventory is a key factor to unlocking the ag cycle, along with a new farm bill and potential upside from trade or weather events.

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Executive Josh Beal pointed to 'green shoots' like improving farmer profitability and strong tech adoption but noted visibility is limited by a short 3-month order book. He confirmed positive low single-digit price realization in Q1 and expects positive pricing for the full year, a significant turnaround from negative pricing last year when the company was focused on reducing inventory.

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President, CEO & CFO Kathleen Valiasek explained that gross margin expansion will be driven by tower upgrades, pricing, product mix, and cost reductions, targeting 33-34% in the near term. She noted the new CCO will amplify the current team's efforts by expanding strategic customer relationships. Valiasek also confirmed that a Midwest facility and other expansions are in active planning stages. Executive Chairman Craig Hurlburt added that customer engagement is at an all-time high, and the new CCO will help capitalize on this demand.

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The company stated that gross margin expansion will be driven by multiple factors including tower upgrades, pricing, product mix, and cost reductions, with a near-term target of 33-34%. The new CCO will focus on amplifying strategic customer relationships. Plans for a Midwest facility and expansions of existing sites are actively in the planning phase to meet high customer demand.

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Executive Kathleen Valiasek explained that the 20% yield increase resulted from a successful R&D program involving light optimization in the stack phase, which will be implemented in other facilities in Q3. She attributed the second-half revenue ramp to this increased production, new Walmart projects, and expanded Grab and Go salad offerings. Regarding the debt restructuring, Valiasek clarified that GAAP rules require the $197 million debt write-off to be amortized over ten years, which will reduce reported interest expense on the P&L to under $5 million per quarter. She also noted the company will have no cash interest or amortization payments for two years.

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SVP Imre Havasi and EVP Chris Osowski highlighted the structurally strong corn oil market and internal efforts to maximize yields. CFO Phil Boggs noted the EcoEnergy partnership has already yielded over $50 million in working capital benefits. Interim Principal Executive Officer Michelle Mapes stated the company's 3-5 year outlook is mission-critical on becoming a low-CI biofuel producer, while the broader strategic review remains active.

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SVP Imre Havasi noted a solid outlook for corn oil, supported by renewable diesel demand. CFO Phil Boggs highlighted a greater than $50M working capital benefit from the EcoEnergy partnership. On long-term strategy, Interim CEO Michelle Mapes emphasized the current focus is on execution and profitability, with the low-CI biofuel strategy being 'mission critical' for the future.

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Todd Becker, President and CEO, stated that the Fairmont plant is a valuable asset, especially with its potential carbon pipeline connection, and while monetization is an option, they are hopeful the pipeline project proceeds. Regarding hedging, he acknowledged shareholder feedback and explained that decisions are assessed quarter-by-quarter with the Board, aiming for less reliance on it as new income streams come online.

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CEO Todd Becker acknowledged margin compression but noted that premiums are realized in international and pet food markets. He explained that carbon monetization involves a fixed transport fee with their pipeline partner, with Green Plains retaining all upside from 45Z, 45Q, and LCFS/voluntary credits. He added that markets to monetize these credits are well-developed.

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EVP & President - Global Retail Jeff Tarsi outlined several positive drivers for the second half. He highlighted a continued heavy focus on expense reduction, an opportunity to increase sales of high-margin foliar nutritionals, and an improved outlook for the Australian business following recent rains, which should boost proprietary product sales.

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CEO Kenneth Seitz deferred to CFO Mark Thompson, who detailed the retail guidance bridge. Thompson explained that the midpoint of the guidance ($1.75B) assumes underlying EBITDA growth of about $125 million after accounting for FX headwinds and non-recurring items. This assumes continued growth in proprietary products, higher crop nutrient volumes, and recovery in Brazil. Specifically for crop protection, the midpoint assumes margins at historical average levels. Upside would come from stronger ag fundamentals and above-average CPC margins.

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EVP Judd O’Connor reported that the Brazil order book is "unusually well ahead of pace," with 90% of summer crop and 40% of safrinha orders already in hand. He confirmed that low-single-digit price growth is the right expectation for the competitive Latin American market, where acreage is expected to increase.

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CFO David Johnson explained that Corteva's strategy is to hedge currencies within the year, for the year, aiming for consistency between quarters rather than mitigating year-over-year impacts. He noted the Brazilian Real (BRL) is the largest exposure (~40% of the total impact) and that the company's currency exposure is more weighted to the second half of the year.

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CEO J. Erik Fyrwald stated the goal is to become a world-class leader in innovation. He described the board as being at 'full strength,' highlighting new members like Kevin O'Byrne (Chairman), Mehmood Khan (R&D), Jesus Montas (Digital/AI), and Cindy Jamieson (CFO experience), who bring critical expertise to guide strategy and execution.

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CFO Michael DeVeau outlined a clear sequence of priorities. First is completing the debt tender to achieve a leverage ratio below 3x net debt to EBITDA. The top priority thereafter is reinvesting in CapEx to support core businesses. Following that, the company will evaluate small, bolt-on acquisitions and consider capital returns to shareholders through its dividend and a potential share buyback program.

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CEO Jon Erik Fyrwald explained that the 2025 volume growth forecast of 1-4% is a normalized rate, following 2024's 6% growth which was partially inflated by the absence of destocking. He attributed the expected growth primarily to strong commercial pipelines and high win rates in the Health & Biosciences, Scent, and Taste segments. Fyrwald also highlighted a three-year strategy focused on investing in these high-margin businesses to close the margin gap with top competitors, while simultaneously driving aggressive productivity in the Food Ingredients division.

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CFO Glenn Richter explained that the contracting period is primarily for pricing and is going well, reflecting a two-year effort to remediate the business. He detailed the successful turnaround strategy, including fixing service levels, reinvesting deflation into competitive pricing, and reenergizing the sales pipeline. He noted they have regained about half of the lost volume and are expanding margins, with a long-term plan to restructure the supply chain to reach mid-teens EBITDA margins.

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Executive Chair Greg Bentley noted that the US AI strategy necessitates infrastructure investment, especially for the grid. CEO Nicholas Cumins added that data centers are like 'mini cities,' creating a prime opportunity for Bentley's portfolio. He highlighted that hyperscalers are receptive to digital twin workflows and pointed to the systematic uptake of Bentley's Synchro software for data center construction modeling.

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CEO Nicholas Cumins described growth in EMEA as solid, with ongoing investments from the EU's next-generation plan. He highlighted new defense-related spending, such as the EU's 'rearm Euro plan,' which includes upgrading dual-use transport infrastructure. He also mentioned Germany's proposed EUR 500 billion infrastructure plan as a massive future tailwind. Executive Chair Greg Bentley added that he remains impressed by the strong and serious infrastructure investment in Europe.

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CEO Nicholas Cumins explained that the commercial model is asset-based in all cases, but the revenue recognition differs. Use during the construction phase is typically not recurring, whereas ongoing use for asset operations is. Executive Gregory Bentley added that construction projects serve as a good entry point, with the potential for renewal into the asset's operational phase.

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Executive Chair Greg Bentley credited the Virtuosity subscription model and its digital engagement approach for the sustained SMB success. He agreed that Cesium could expand the Total Addressable Market (TAM), viewing its open-source model as the 'ultimate example of digital engagement' that can attract a broader, younger user base to the Bentley ecosystem.

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Management stated that customer sentiment is stable, with strong pockets in energy, defense, data centers, and civil infrastructure. Trimble's productivity solutions are well-positioned to help customers manage inflation. The Field Systems model transition is succeeding, evidenced by 17% ARR growth, as the subscription model makes technology more affordable and provides customers with continuous updates ('technology assurance').

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Executive Robert Painter attributed the Field Systems segment's outperformance to serving a large, underpenetrated global market with strong demand for mixed-fleet solutions. He highlighted the success of their product portfolio and global dealer channel, noting that the subscription model is expanding the addressable market. He confirmed the go-to-market strategy is centered on the SITECH channel, now enhanced by a renewed CAT relationship and new partnerships with John Deere and Liebherr, which expands their OEM ecosystem.

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CEO Robert Painter attributed the success to serving a large, underpenetrated market with superior products and a world-class dealer channel (SITECH). He highlighted that the subscription model is expanding the addressable market. He also noted new partnerships with John Deere and Liebherr, and the establishment of new technology outlets to broaden market reach and serve mixed fleets effectively.

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CEO Robert Painter stated that AECO's growth is expected to come approximately two-thirds from existing customers and one-third from new logos, aligning with the previously discussed $1 billion cross-sell opportunity. Regarding AI, he described the 100-200 basis point margin improvement heard elsewhere as 'aspirational,' noting that while Trimble sees productivity gains in R&D and marketing, a quantifiable company-wide impact is not yet available.

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Executive Robert Painter confirmed strong ACV bookings across the company, with Trimble Construction One (TC1) driving above-average growth in the AECO segment through prepackaged bundles. He also detailed that the new John Deere partnership is complementary to the long-standing Caterpillar JV, aiming to expand technology adoption by enabling 3D upgrades on Deere machines through both dealer networks without creating channel conflict.

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Executive Robert Painter confirmed strong ACV bookings, with a majority in the AECO segment now being TC1 bookings. Regarding the partnerships, he explained that the John Deere agreement is complementary to the Caterpillar relationship, aiming to grow overall technology adoption by giving customers more choice without creating channel conflict.

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ACV bookings were strong, with TC1 bundles driving growth in AECO and Transporeon bookings up over 30%. The Deere partnership enables 3D upgrades on their machines and is seen as complementary to the CAT relationship, serving unmet customer demand without creating channel conflict.

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CFO Andrew Bonfield explained that the situation remains fluid. He noted that uncertainties include potential agreements with more countries, which could be a positive development, as well as ongoing Section 232 and 301 investigations, which could have a negative impact.

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CFO Andrew Bonfield explained that this scenario assumes negative global economic growth in the second half, which is more pessimistic than most forecasts. He stated that the Construction Industries (CI) segment would be the most sensitive and bear the majority of the sales deterioration. The Resource Industries and Energy & Transportation segments would see a much smaller impact, primarily related to general activity levels.

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Executive D. Umpleby stated that for 2025, the company is guiding to the top half of the existing range and is not changing it, emphasizing the focus on absolute OPACC dollar growth. Executive Andrew R. Bonfield added that the targets are progressive and require significant operating leverage, making the current range still valid.

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Chairman and CEO Jim Umpleby expressed confidence in Caterpillar's ability to compete through technology and dealer strength, acknowledging currency fluctuations are a factor. CFO Andrew Bonfield added that dealer inventory is complex and that for some product lines, higher inventory levels are competitively advantageous, not a universal negative.

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CEO Gerrit Marx specified that the positive demand is currently concentrated in tractors. He attributed the trend to a combination of factors, including effective market share defense, strong sales in Poland fueled by a government purchase program, and improving farmer confidence in Germany. He characterized the recovery as 'spotty' but indicative of a positive shift in farmer sentiment.

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EVP & CFO Jim Gray and President & CEO Jim Zallie attributed the cautious guidance to ongoing tariff uncertainties and their potential indirect impact on customers. For the Texture and Healthful Solutions segment, Gray highlighted a "step change benefit" from improved procurement and demand forecasting, while Zallie noted that lower raw material costs impacted price/mix but that innovation and customized formulations would lift margins over time.

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CFO Jim Gray attributed the strong LATAM performance primarily to lapping the significant negative impact from the Argentine peso devaluation on its JV in Q1 2024. He noted the rest of the LATAM business also saw positive op income growth from shifting production to higher-value uses. Regarding Pakistan, Gray confirmed its size is comparable to the divested South Korea business but stated it's too early to comment on the use of proceeds.

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EVP and CFO Jim Gray explained the guidance range reflects uncertainties in foreign exchange rates, co-product values, and corn costs on the low end, with potential upside from stronger-than-expected volume growth and customer reformulation wins. He positioned the Indiana investment as a high-return (10% to mid-teens IRR) opportunity enabled by a strong balance sheet. President and CEO Jim Zallie affirmed that the company retains the balance sheet flexibility to pursue M&A alongside organic investments and share repurchases.

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President and CEO James Zallie attributed European growth to lapping a soft prior-year quarter and increased consumer mobility driving demand for convenience foods. EVP and CFO Jim Gray added that he sees steady demand rather than significant channel restocking. Zallie explained that gross margin improvement was driven by a combination of renegotiated contracts, lower raw material costs, and better fixed cost absorption from higher production volumes.

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President, CEO & Chairman Ashish Khandpur acknowledged pricing pressure but stated Avient works to find material alternatives. He noted that while commodity polymer prices are favorable, pigment and performance material costs are rising. In cases like flame retardants, where costs have tripled, price increases are being passed on to customers. SVP & CFO Jamie Beggs explained the new cash flow revolver replaced an asset-based loan to ensure adequate liquidity following the divestiture of the distribution business, which had reduced the available asset base for the previous facility.

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SVP and CFO Jamie Beggs described reformulation as a continuous process, leveraging Avient's extensive materials database to find substitutes without compromising quality. President and CEO Dr. Ashish Khandpur added that channel inventories are very lean as customers are in a 'wait-and-see' mode, which has shortened order book visibility from a historical 45 days to 20-30 days.

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President and CEO Dr. Ashish Khandpur explained the new incentive plan is customized to reward business units based on their specific strategic goals, such as growth or cash generation. SVP and CFO Jamie Beggs provided a 2025 free cash flow forecast of $180-$200 million, supported by earnings growth and insurance proceeds. She also guided for CapEx of approximately $120 million.

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President and CEO Dr. Ashish Khandpur estimated that growth from new initiatives is split roughly 50/50 between new business development in high-growth areas and market share gains from commercial execution. Regarding Fiber-Line, he acknowledged its weakness, especially in Europe due to subsidized Chinese competition, and noted that while it remains in the portfolio, the company's future strategic focus will be on less volatile businesses.

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SVP & CFO Damon Audia provided a detailed H2 production outlook, with North America remaining down over 50% and Europe's results varying by quarter due to 2024 comps. He projected North American operating losses could be in the 10-11% range. Chairman, President & CEO Eric Hansotia added that the 'Farmer Core' strategy, including e-commerce and mobile service, is a key catalyst for parts growth.

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CFO Damon Audia provided an EPS bridge, explaining that the $0.40 Q1 beat and a $0.40 FX benefit were offset by a $0.30 headwind from weaker industry outlooks and another $0.30 headwind from the net impact of tariffs. CEO Eric Hansotia stated that discussions with TAFE are progressing well, the TAFE-held board seat is now vacant, and the company is actively working to enable share buybacks in response to investor interest.

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CFO Damon Audia reported that BayWa's restructuring is progressing well and the partnership remains strong, though BayWa is currently cautious about taking on new stock to preserve cash. He also noted that benefits from AGCO's own European cost-saving initiatives are expected to materialize more significantly in the second half of 2025.

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Damon Audia, Senior Vice President & CFO, clarified that European pricing was modestly negative due to promotional pricing on the Fendt 700 Gen 6 model during its transition to the new Gen 7. Regarding the divestiture, he stated it accounted for a $200 million reduction in the sales outlook and about $0.10 of the EPS guide-down, with a de minimis effect on the full-year operating margin percentage.

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CFO Enrique López Lecube stated that another $10 million in cash generation is expected from the HB4 business transition. He aims to return to a historical net working capital level of 4-4.5 months of sales and to get EBITDA-to-free cash flow conversion as close as possible. He also noted that Argentina's market is normalizing and showing signs of recovery, with a healthy winter crop season expected. CEO Federico Trucco added that a good harvest is boosting farmer morale. CCO Milen Marinov commented that the company is emerging from a 'perfect storm' and is insulated from U.S. tariff volatility since most products sold in the U.S. are manufactured there.

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CEO Federico Trucco explained that the new partnerships would immediately lower costs and generate royalties, with more significant results in 2-3 years, while broadening monetization strategies beyond drought tolerance. CFO Enrique López Lecube added that the pivot will free up working capital from grain inventories over the next 3-4 quarters and reduce SG&A, allowing for reallocation to the global biologicals business. Trucco clarified that the company will now focus heavily on high-return biologicals while pursuing seed innovations through partnerships, particularly in gene editing, using its existing patented GMO platform.

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CFO Enrique López Lecube noted farmer sentiment is shifting from cautious to optimistic due to rains and potential government action on export taxes. He added that reduced leafhopper pressure could spur late corn planting. Regarding HB4, he confirmed the transition is a work in progress and that the industry is engaging more proactively to find partnership opportunities.

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EVP Bert Frost described a tight global market with strong demand and a high marginal cost of production set by Europe and Asia. CEO W. Will added that a peace resolution in Ukraine would not immediately impact supply. EVP & COO Christopher Bohn confirmed that Q1 operations have been strong with no significant weather disruptions, maintaining the 10 million-ton gross ammonia outlook for 2025.

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CEO Ruy Cunha explained that the guidance change is primarily due to the timing of inventory deliveries for the soy crop, which impacted the second quarter. He noted that farmer sentiment is improving with better crop prospects and a favorable FX rate, which also improves the mood of input suppliers. Cunha attributed the strength in the off-patent business to both a strong product registration pipeline at Perterra and better integration with Lavoro's retail channel, highlighting its significant growth potential.

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CEO Ruy Cunha explained that the revised guidance stems from inventory delays impacting Q2 soy crop deliveries, not a change in market fundamentals. He noted that farmer sentiment is improving due to better income prospects and favorable currency exchange, which should also improve supplier mood. Cunha attributed the Crop Care segment's strength to both a robust pipeline of new product registrations at its subsidiary Perterra and enhanced integration with Lavoro's retail channel.

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CFO Julian Del Val Neto stated that the fiscal year's seasonality is expected to be broadly similar to the previous year. CEO Ruy Cunha added that input price trends are stabilizing and channel inventories are mostly normalized, creating potential opportunities. Regarding EBITDA, Ruy Cunha clarified that the primary driver for recovery is expected to be margin improvement, with footprint optimization through store consolidation serving as a secondary lever for profitability.

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CFO Julian Del Val Neto stated that the seasonality for fiscal 2025 is expected to be broadly similar to the previous year. CEO Ruy Cunha added that channel inventory is mostly normalized and input prices are stabilizing, which could present an opportunity. Cunha clarified that the majority of the anticipated EBITDA recovery in fiscal 2025 will be driven by margin improvements, with footprint optimization serving as a secondary lever for cost savings.

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CEO Ruy Cunha explained that the primary uncertainty is the pace of shipments, which depends on farmer behavior and their willingness to accept products for the next season. He noted that Lavoro has sufficient order bookings to meet the high end of the guidance. Cunha also confirmed that the revenue being pushed out of Q4 is expected to be recognized in Q1 of fiscal year 2025.

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CEO Ruy Cunha explained that the primary uncertainty is the pace of shipments, which depends on farmers' willingness to accept product deliveries for the next season. He confirmed they have sufficient order bookings to reach the high end of the guidance. Cunha also noted that credit procedures and collateral documentation are a factor. He affirmed that the delayed revenue is a timing issue and is expected to be recognized in the first quarter of fiscal 2025.

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Executives explained that key milestones will be the announcement and execution of strategic partnerships and licensing deals. These deals can vary, sometimes including upfront fees, but are primarily focused on offtake agreements. The main constraint is the 2-year seed bulking process before broad-acre adoption in 2027. The run-rate for cash OpEx and CapEx is expected to be $55M-$60M, with a goal of reducing cash burn over time as the new model is implemented.

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