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    Kyle Menges • Citigroup

    Kyle Menges's questions to Paccar Inc (PCAR) leadership

    Kyle Menges's questions to Paccar Inc (PCAR) leadership •

    Question

    Kyle Menges asked for the rationale behind the guided increase in R&D spending for next year in a potentially flat market. He also requested an outlook for the North American medium-duty market.

    Answer

    CEO Preston Feight explained that the R&D increase is modest and necessary to fund important projects in powertrain, connectivity, and electronics that enhance customer profitability. He also stated that he expects the medium-duty market in North America to 'remain a good market' next year.

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    Kyle Menges's questions to Paccar Inc (PCAR) leadership • Q2 2025

    Question

    Kyle Menges from Citigroup asked for an update on the medium-duty truck market, including inventory levels, and whether the 2027 emissions standards could trigger a pre-buy in that segment during 2026.

    Answer

    CEO & Director R. Preston Feight stated that industry inventory for medium-duty is around six months, while Kenworth and Peterbilt are better positioned at 4.5 months. He confirmed that the same factors driving a potential Class 8 pre-buy, such as the 2027 emissions standards, also apply to the medium-duty market and could stimulate demand in 2026.

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    Kyle Menges's questions to Paccar Inc (PCAR) leadership • Q2 2025

    Question

    Kyle Menges asked for commentary on the medium-duty truck market, including inventory levels, and whether the 2027 emissions standards could also catalyze a pre-buy in the medium-duty segment.

    Answer

    CEO & Director R. Preston Feight stated that industry inventory for medium-duty is around six months, while Kenworth and Peterbilt are lower at 4.5 months, putting PACCAR in a good position. He confirmed that the same regulatory factors affecting Class 8 in 2027 could also stimulate the medium-duty market in 2026.

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    Kyle Menges's questions to Paccar Inc (PCAR) leadership • Q1 2025

    Question

    Kyle Menges requested more detail on the Q2 gross margin guide, specifically asking about sticky cost inflation outside of tariffs. He also sought to understand the confidence behind the 2% to 4% growth forecast for the Parts business, given lower truck deliveries.

    Answer

    CEO Preston Feight reiterated that the Q2 cost impact is primarily assigned to tariffs. CFO Harrie Schippers added that other cost elements are flat, with good productivity and cost reduction programs in place. Schippers also clarified that pricing, which was up about 2.5% sequentially in Q1, contributes to the confidence in Parts revenue growth.

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    Kyle Menges's questions to Paccar Inc (PCAR) leadership • Q4 2024

    Question

    Kyle Menges questioned the resilience of vocational Class 8 orders, asking for confidence that dealers are not overordering and seeking more detail on the medium-duty market outlook for 2025.

    Answer

    CEO Preston Feight expressed confidence in the order book, highlighting that PACCAR's dealer inventory at 2.3 months is well below the industry's 3.1 months, and noted that backlogs at body builders are for trucks already sold to customers. Regarding the medium-duty market, he expects a return to more historically normal levels in 2025 with strengthening in the second half, and pointed to PACCAR's market share growth from 14.5% to 18% as a sign of strength.

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    Kyle Menges's questions to Regal Rexnord Corp (RRX) leadership

    Kyle Menges's questions to Regal Rexnord Corp (RRX) leadership • Q2 2025

    Question

    Kyle Menges of Citigroup inquired about the momentum in the Industrial Powertrain Solutions (IPS) segment, including the sustainability of its growth rate into 2026 and the drivers of order reacceleration after a flat July. He also asked about the margin impact of selling more systems in IPS and data center solutions in AMC.

    Answer

    CEO Louis Pinkham stated it was too early to provide a 2026 forecast but expects to enter the year with low-single-digit growth. He expressed confidence in IPS achieving mid-single-digit order growth for the quarter, citing a strong $300 million cross-sell funnel and a 15% year-to-date backlog increase. Pinkham clarified that systems solutions in IPS typically have margins at or slightly above the company average, while data center wins are a positive mix contributor for the AMC segment.

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    Kyle Menges's questions to Regal Rexnord Corp (RRX) leadership • Q1 2025

    Question

    Kyle Menges asked whether there was evidence of pre-buying ahead of tariffs in segments beyond PES, particularly given the strong 9% order growth in IPS. He also inquired if the $18 million in Q1 synergies was in line with expectations and about the company's confidence in achieving its full-year synergy target.

    Answer

    CEO Louis Pinkham stated that the company did not observe material pre-buying outside of some in residential HVAC, clarifying that the strong IPS orders were driven by longer-cycle projects, not customer stockpiling. CFO Robert Rehard confirmed that the $18 million in Q1 synergies was in line with their plan and that they remain on track for the $54 million full-year target. Pinkham added that tariff-related disruptions would not impact synergy realization due to the company's 'in-region, for-region' strategy.

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    Kyle Menges's questions to Regal Rexnord Corp (RRX) leadership • Q4 2024

    Question

    Kyle Menges from Citigroup asked for details on the drivers behind the company's market outgrowth, particularly in the IPS segment, and requested specific examples of recent cross-selling successes.

    Answer

    CEO Louis Pinkham explained that outgrowth is broad-based, driven by new products in PES, integrated solutions in AMC, and the industrial powertrain system in IPS. He highlighted that the cross-sell funnel for the industrial powertrain is up double year-over-year and cited a mid-teens million-dollar mining project in Southeast Asia as a key win where the company sold an integrated system instead of individual components.

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    Kyle Menges's questions to Regal Rexnord Corp (RRX) leadership • Q3 2024

    Question

    Randy, on behalf of Kyle Menges from Citigroup, inquired about the incremental benefits from cross-selling synergies in the IPS segment and whether Q3 represented a margin bottom for the AMC segment.

    Answer

    CEO Louis Pinkham stated that cross-selling and powertrain initiatives contributed 1-2 percentage points to IPS's growth, emphasizing the large opportunity that remains. CFO Rob Rehard indicated that Q3 was 'pretty close to a bottom' for AMC margins and expects improvement in Q4 driven by higher sales, cost actions, and the absence of prior FX headwinds.

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    Kyle Menges's questions to Cummins Inc (CMI) leadership

    Kyle Menges's questions to Cummins Inc (CMI) leadership • Q2 2025

    Question

    Kyle Menges from Citi asked about capital allocation strategy, the potential cash benefit from recent tax legislation, and how the industry is managing tariff cost pass-throughs.

    Answer

    CFO Mark Smith stated that with leverage metrics improving, the base case is for increased capital returns to shareholders. He estimated a $125-$250 million cash tax benefit but stressed this is dwarfed by tariff costs, which had a net negative impact of $22 million in Q2. He expects to reach a near price-cost neutral position on tariffs by Q4 through ongoing mitigation and customer negotiations.

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    Kyle Menges's questions to Cummins Inc (CMI) leadership • Q2 2025

    Question

    Kyle Menges from Citi asked about capital allocation strategy, including leverage and share buybacks, and the potential cash benefit from recent tax legislation. He also followed up on tariff recovery plans and the rollout of the EPA 2027 compliant engine.

    Answer

    CFO Mark Smith reaffirmed the plan to return at least 50% of operating cash flow to shareholders and noted leverage has improved. He estimated a $125M-$250M cash tax benefit but stressed this is far outweighed by the negative impact of tariffs, which were a $22M net headwind in Q2. CEO Jennifer Rumsey confirmed the EPA 2027 engine platform launch remains on track for late 2026, supported by a $1 billion investment.

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    Kyle Menges's questions to Cummins Inc (CMI) leadership • Q1 2025

    Question

    Kyle Menges sought to clarify if the reallocation of Power Generation orders was a current trend and asked about specific tariff mitigation actions and contract pass-throughs.

    Answer

    CEO Jennifer Rumsey stated that while not a significant trend, some limited and not atypical order reallocations are occurring, which are easily managed due to strong underlying demand. She mentioned inventory strategies and dual sourcing as current mitigation efforts. CFO Mark Smith added that Power Gen has the least exposure to changing economic sentiment and declined to comment on contract specifics.

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    Kyle Menges's questions to Cummins Inc (CMI) leadership • Q4 2024

    Question

    Kyle Menges inquired about the outlook for R&D spending in 2025 compared to 2024, with a specific focus on the Engine and Components segments, and the longer-term trend. He also asked for the 2025 outlook for the aftermarket parts business.

    Answer

    CFO Mark Smith indicated that a more significant downward trend in Engine R&D expense is expected after 2025, following major product launches. For 2025, he noted no dramatic shift. For the parts business, Smith stated the outlook is for flat to 5% growth, likely including some pricing, and growing roughly in line with the economy.

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    Kyle Menges's questions to Cummins Inc (CMI) leadership • Q3 2024

    Question

    Kyle Menges of Citigroup Inc. asked about the drivers behind the strong growth in the Industrial portion of Power Systems, particularly in mining. He also questioned the sustainability of the segment's high incremental margins of approximately 60% into 2025.

    Answer

    CEO Jennifer Rumsey and Executive Christopher Clulow clarified that overall guidance for the mining market is relatively flat and recent strength was partly due to rebuild demand, cautioning against over-reading a single quarter's results. CFO Mark Smith explained that the high incremental margins were driven by a combination of cost resets, pricing actions, and efficiency gains. While he does not expect 40-60% incrementals to continue, he anticipates further margin improvement next year.

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    Kyle Menges's questions to Caterpillar Inc (CAT) leadership

    Kyle Menges's questions to Caterpillar Inc (CAT) leadership • Q2 2025

    Question

    Kyle Menges of Citigroup inquired about the Resource Industries backlog and visibility into 2026, and asked for an update on the company's commodity exposure, specifically to coal.

    Answer

    CEO Joe Creed noted that while sales to users are expected to be softer, order rates are healthy and the backlog is up, particularly for large and articulated trucks, providing positive momentum. CFO Andrew Bonfield reiterated that coal represents a low-single-digit percentage of total company revenue and is diminishing over time.

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    Kyle Menges's questions to Caterpillar Inc (CAT) leadership • Q1 2025

    Question

    Kyle Menges sought more detail on the pricing outlook for the Construction and Resource Industries segments in the second half of the year, asking if pricing could turn flat to positive as the company laps its merchandising programs and potentially implements tariff-related price actions.

    Answer

    Joe Creed, COO and incoming CEO, stated that the market remains competitive and pricing decisions are complex. CFO Andrew Bonfield clarified that the company's 'no-tariff scenario' does not assume price increases in the second half. However, the negative impact from merchandising programs will moderate as they are lapped. He confirmed that no pricing actions for tariff mitigation have been assumed yet, as the company awaits more clarity. Creed added that pricing dynamics vary by segment.

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    Kyle Menges's questions to Caterpillar Inc (CAT) leadership • Q4 2024

    Question

    Kyle Menges of Citi requested more detail on the Resource Industries segment, asking about the progression of customer conversations and orders into Q1 and the specifics of negative pricing actions expected in the quarter.

    Answer

    Executive D. Umpleby noted that while customers show capital discipline, key indicators like commodity prices, product utilization, and fleet age remain favorable. Executive Andrew R. Bonfield specified that the negative Q1 price impact is from merchandising programs targeting heavy construction and quarry and aggregates.

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    Kyle Menges's questions to Caterpillar Inc (CAT) leadership • Q3 2024

    Question

    Kyle Menges asked if the planned Q4 dealer inventory reduction is sufficient heading into 2025 and also inquired about the state of used equipment inventories.

    Answer

    CFO Andrew Bonfield stated that used equipment inventories remain at historically low levels and are not a concern. Regarding new equipment, he confirmed the planned Q4 reduction is expected to bring machine dealer inventory to roughly flat year-over-year, a level the company is comfortable with based on current dealer feedback and sales planning.

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    Kyle Menges's questions to Allison Transmission Holdings Inc (ALSN) leadership

    Kyle Menges's questions to Allison Transmission Holdings Inc (ALSN) leadership • Q2 2025

    Question

    Kyle Menges of Citigroup Inc. requested an analysis of the key factors embedded in the margin guidance for the second half of the year, focusing on pricing, steel costs, and other potential headwinds.

    Answer

    CFO Scott Mell stated that strong pricing of over 400 basis points is expected to continue but will be offset by volume declines, particularly in the vocational mix, and some impact from tariffs. COO G. Frederick Bohley added that tariff exposure is limited due to a high percentage of North American sourcing and that steel and aluminum cost pass-throughs lag by 6-12 months.

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    Kyle Menges's questions to Allison Transmission Holdings Inc (ALSN) leadership • Q1 2025

    Question

    Kyle Menges inquired about the drivers behind Allison's strong Q1 margin performance, which surpassed the implied full-year guidance, especially considering the downturn in the high-margin parts business.

    Answer

    Chief Operating Officer G. Bohley attributed the robust margin expansion to several factors. He highlighted $39 million in price increases, the non-recurrence of a one-time UAW signing incentive from the prior year, and a favorable price recognition of approximately 500 basis points year-over-year, which collectively offset lower sales volume and unfavorable material costs.

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    Kyle Menges's questions to Allison Transmission Holdings Inc (ALSN) leadership • Q4 2024

    Question

    Kyle Menges requested a deeper dive into the volume assumptions for the North American On-Highway 2025 forecast, seeking clarity on the outlook for medium-duty versus Class 8 straight trucks.

    Answer

    David Graziosi, CEO, explained the guidance assumes a softer medium-duty market versus 2024, citing improved inventories and alignment with OEM forecasts. In contrast, he expects continued robust and stable demand for Class 8 vocational trucks, consistent with the last 12-18 months, with constraints remaining at the bodybuilder level.

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    Kyle Menges's questions to Allison Transmission Holdings Inc (ALSN) leadership • Q3 2024

    Question

    Kyle Menges sought more insight into the performance of the aftermarket parts business, noting the commentary had shifted from weakness in North America to global weakness, and asked about the outlook for 2025.

    Answer

    CFO Fred Bohley clarified that year-over-year movement wasn't significant but noted a tough comparison to H1 2023. He expects Q4 parts revenue may be down mildly sequentially. For 2025, he anticipates a 'fairly good year,' potentially the second-best on record, but does not expect a return to the peak H1 2023 levels as most of the pent-up demand has now been satisfied.

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    Kyle Menges's questions to CNH Industrial NV (CNH) leadership

    Kyle Menges's questions to CNH Industrial NV (CNH) leadership • Q2 2025

    Question

    Kyle Menges from Citigroup asked for early color on the 2026 order books, which had been open for a month, seeking initial trends and farmer sentiment.

    Answer

    CEO Gerrit Marx stated that while it's too early for a full 2026 forecast, the company maintains that 2025 will be the trough year for demand. He highlighted that future demand depends on resolving uncertainties around global trade and tariffs. However, he noted early positive signs in EMEA and reiterated that once production aligns with retail, CNH's wholesale volumes and revenue will increase even in a flat market.

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    Kyle Menges's questions to Oshkosh Corp (OSK) leadership

    Kyle Menges's questions to Oshkosh Corp (OSK) leadership • Q2 2025

    Question

    Kyle Menges from Citigroup noted that the Vocational segment's margin guidance already reaches the low end of its 2028 target and asked for a summary of the drivers behind this performance. He also questioned the rationale for increasing share buybacks while the stock is trading at a 52-week high.

    Answer

    CEO John Pfeifer attributed the Vocational segment's strong performance to stable end markets and high demand for advanced technology like autonomy and AI. CFO Matthew Field reiterated the company's capital allocation priorities, stating that even at a 52-week high, the stock is believed to trade at a discounted multiple, making share repurchases an attractive use of capital after organic growth investments.

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    Kyle Menges's questions to Oshkosh Corp (OSK) leadership • Q1 2025

    Question

    Kyle Menges asked for color on the significant sales decline in telehandlers and questioned whether the strong revenue in refuse and recycling was driven by market growth, outperformance, or dealer stocking.

    Answer

    CEO John Pfeifer advised against over-analyzing Q1 telehandler sales, noting that while impacted by the Cat contract loss, Oshkosh's market share in the category actually increased. He attributed the refuse and recycling growth to a combination of improved production output and the successful expansion of its dealer network, stating he does not foresee it creating a difficult comparison next year.

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    Kyle Menges's questions to Oshkosh Corp (OSK) leadership • Q4 2024

    Question

    Kyle Menges from Citigroup Inc. requested a breakdown of the Access segment's projected 15% revenue decline between aerial work platforms (AWPs) and telehandlers. He also asked how the company is thinking about its telehandler production capacity given the changes with the CAT contract and the launch of a new product line.

    Answer

    CEO John Pfeifer declined to provide a revenue breakdown by product line within Access but reiterated that the overall guidance reflects customer conversations and market conditions, including the CAT agreement change. He affirmed that telehandlers have been and are expected to remain strong. He also stated that capacity decisions are based on a 5-plus year outlook, and the company is proceeding with increasing output at its Jefferson City plant to meet long-term demand.

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    Kyle Menges's questions to Oshkosh Corp (OSK) leadership • Q3 2024

    Question

    Kyle Menges asked for more detail on the Access market, seeking to differentiate demand softness between large and small rental customers. He also questioned the near-term NGDV ramp-up, noting what appeared to be a sequential decline in deliveries.

    Answer

    President and CEO John Pfeifer described the Access market as 'normalizing,' with softness tied more to private construction exposure than customer size. He clarified that NGDV deliveries actually increased, with the reported figure being an artifact of cost-to-cost accounting, and stated the production ramp is progressing well with positive field feedback.

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    Kyle Menges's questions to AGCO Corp (AGCO) leadership

    Kyle Menges's questions to AGCO Corp (AGCO) leadership • Q2 2025

    Question

    Kyle Menges of Citigroup Inc. asked for a quantification of the tariff impact on the updated EPS guide and inquired how the unchanged production hour guidance aligns with lower industry outlooks and dealer inventory levels.

    Answer

    SVP & CFO Damon Audia provided a detailed bridge for the EPS guidance change, attributing an incremental $0.15 headwind to tariffs due to better clarity and delayed pricing actions. He explained the production guidance is a net effect of deeper cuts in North America offsetting modest changes in Europe, and noted that the lower-horsepower industry weakness has minimal impact on their own production hours.

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    Kyle Menges's questions to AGCO Corp (AGCO) leadership • Q1 2025

    Question

    Kyle Menges from Citigroup asked about the sustainability of the strong Europe/Middle East (EME) margins, the risk of a product mix shift away from the high-margin Fendt brand, and the Q1 performance of the PTx Trimble business.

    Answer

    CFO Damon Audia explained that EME is AGCO's most stable market and that the premium Fendt brand continues to gain share due to a 'flight to quality' by farmers, making a negative mix shift unlikely. He also noted the PTx Trimble business was profitable in Q1 with over $60 million in sales. CEO Eric Hansotia added that AGCO has tripled its dealer coverage for PTx since year-end and the technology take-rate on AGCO equipment is now around 90%.

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    Kyle Menges's questions to AGCO Corp (AGCO) leadership • Q4 2024

    Question

    Kyle Menges from Citigroup Inc. inquired about the potential impact of upcoming German elections on the business. He also asked about the 2025 top-line synergy opportunity from the PTx Trimble acquisition, specifically regarding the cross-selling of Trimble products through the Precision Planting dealer network.

    Answer

    CEO Eric Hansotia stated that AGCO does not anticipate a significant impact from country-specific elections, viewing the recent rightward shift in the EU parliament as more relevant and generally farmer-friendly. He noted significant progress on dealer integration, with over 1,000 PTx dealers now in place, and said the 2025 focus is on driving cross-selling and expanding the number of AGCO dealers carrying the full PTx portfolio.

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    Kyle Menges's questions to Terex Corp (TEX) leadership

    Kyle Menges's questions to Terex Corp (TEX) leadership • Q2 2025

    Question

    Kyle Menges requested details on the change in the assumed tariff impact, which increased from $0.40 to $0.50 per share, and asked about demand trends in North American Materials Processing and the impact of bonus depreciation.

    Answer

    SVP & CFO Jennifer Kong-Picarello explained the increase was due to higher EU reciprocal tariffs, secondary tariff impacts, and Section 232 steel tariffs. President & CEO Simon A. Meester noted that while bonus depreciation is a positive, he expects the benefits to materialize more in 2026 than in the second half of 2025, as customers assess the cash impact.

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    Kyle Menges's questions to Terex Corp (TEX) leadership • Q1 2025

    Question

    Kyle Menges asked what gives management confidence in exceeding the $25 million ESG synergy target and questioned the company's strategy for its Monterrey, Mexico facility regarding production shifts and supply chain sourcing.

    Answer

    CEO Simon Meester explained that confidence comes from a robust project pipeline showing synergies across the entire Terex portfolio. Regarding the Monterrey facility, he stated that while it is a key asset, major product moves are paused until the dynamic tariff environment stabilizes. He also clarified its role in the company's North American production footprint.

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    Kyle Menges's questions to Terex Corp (TEX) leadership • Q4 2024

    Question

    Kyle Menges asked why ESG's margins are guided to be flat year-over-year despite expected sales growth and synergies, and inquired about the level of synergies included in the 2025 guidance. He also pointed out a discrepancy between his EBITDA calculation and the company's guidance.

    Answer

    Executive Julie Beck reiterated confidence in achieving the $25 million run-rate synergy target by the end of 2026 but stated it was too early to update the forecast. She emphasized the guidance reflects continued strong performance and operating margins for the ESG business. She also clarified that the company's $660 million EBITDA guidance is an adjusted number, which would account for the calculation difference.

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    Kyle Menges's questions to Terex Corp (TEX) leadership • Q3 2024

    Question

    Kyle Menges of Citi Group asked for an update on the ESG segment's backlog, its expected coverage for the remainder of the year, and the anticipated timing for realizing acquisition synergies.

    Answer

    CEO Simon Meester described the ESG backlog as 'very healthy and strong,' with a typical six-month cycle and a book-to-bill ratio over 100% for recent quarters, positioning the segment for a strong 2025. CFO Julie Beck reiterated the target of $25 million in run-rate synergies by the end of 2026, confirming that some benefits are expected to materialize in 2025, with more details to be provided on the Q4 call.

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    Kyle Menges's questions to Timken Co (TKR) leadership

    Kyle Menges's questions to Timken Co (TKR) leadership • Q2 2025

    Question

    Kyle Menges of Citi inquired about the rationale for lowering the second-half organic volume guide despite stable market trends and backlog growth, and also asked about Timken's applications and market potential in the emerging humanoid robotics sector.

    Answer

    EVP and CFO Philip Fracassa explained the guidance adjustment reflects a cautious stance due to trade uncertainty, not a deceleration in demand. President & CEO Rich Kyle addressed robotics, noting that while Timken is active in applications for humanoids, it's a long-term play. He emphasized the company's current strength is in broader automation, including factory, medical, and warehouse automation, supported by recent acquisitions like CGI.

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    Kyle Menges's questions to Timken Co (TKR) leadership • Q1 2025

    Question

    Kyle Menges questioned the competitiveness of Timken's tariff-related pricing actions and how the company's U.S. manufacturing footprint positions it relative to peers. He followed up by asking for a breakdown of the $150 million tariff mitigation plan between pricing and supply chain initiatives.

    Answer

    CEO Richard Kyle stated that Timken's U.S. footprint is a competitive advantage and that the company is seeing competitors also raise prices. CFO Philip Fracassa provided extensive detail, noting the gross annualized tariff impact is estimated at $150 million, with over 80% driven by high China tariffs. He explained that LIFO accounting accelerates the cost impact, creating a timing lag before pricing catches up. Fracassa clarified that the mitigation will be predominantly achieved through pricing and surcharges, with the goal of being fully offset on a run-rate basis by year-end.

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    Kyle Menges's questions to Timken Co (TKR) leadership • Q4 2024

    Question

    Kyle Menges asked about potential low-hanging fruit to strengthen the product portfolio and the company's ability to pass through tariff-related costs, referencing the 2018 experience.

    Answer

    CEO Tarak Mehta highlighted becoming more customer-centric by tailoring products to local market needs as a key opportunity. Regarding tariffs, both Mehta and CFO Philip Fracassa recalled the 2018 playbook, noting that while there can be a lag, they successfully mitigated past tariffs through pricing and surcharges over a couple of quarters.

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    Kyle Menges's questions to Herc Holdings Inc (HRI) leadership

    Kyle Menges's questions to Herc Holdings Inc (HRI) leadership • Q2 2025

    Question

    Kyle Menges of Citigroup requested a deeper analysis of the free cash flow guidance, questioning the core business contribution after accounting for tax benefits and asset sales. He also asked about pricing trends for legacy Herc versus H&E.

    Answer

    SVP & CFO Mark Humphrey explained that normalized free cash flow is 10-15% of revenue, but the 2025 guidance is impacted by the absence of five months of H&E's cash flow. Regarding pricing, he confirmed it was a positive contributor for legacy Herc but declined to give specifics, noting H&E's pricing headwinds are factored into its revenue forecast.

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    Kyle Menges's questions to Herc Holdings Inc (HRI) leadership • Q1 2025

    Question

    Kyle Menges requested color on customer sentiment in core end markets, particularly regarding tariffs. He also asked about the impact of weather on Q1 margins and any other unexpected cost pressures.

    Answer

    COO Aaron Birnbaum noted that large national contractors have plenty of work while local contractors feel a slowdown, and it's too early for feedback on tariffs. CFO W. Humphrey added that margin pressure was anticipated due to moderating used equipment values (now stabilized), fixed cost absorption from M&A, and not yet anniversarying higher insurance costs.

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