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CEO Preston Feight stated that ongoing capital investments ensure PACCAR will not be capacity constrained in the coming years. Regarding used trucks, President and CFO Harrie Schippers noted the market has normalized and PACCAR's inventory is very healthy. Feight added that a recovery in the overall aftersales market should act as a tailwind for the Parts business in 2025.

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EVP Kevin Baney expressed confidence in profit upside for the parts business, driven by ongoing dealer capacity additions and strong customer service. CEO & Director R. Preston Feight stated PACCAR's inventory is well-positioned at 2.9 months of retail sales versus the industry's 4.2 months, highlighting that about half of their inventory is with bodybuilders due to strength in the vocational segment.

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EVP Kevin Baney expressed confidence in profit upside for the Parts business, citing dealer capacity additions and new distribution centers. CEO & Director R. Preston Feight stated that PACCAR feels very good about its inventory, noting Kenworth and Peterbilt inventory is at 2.9 months of retail sales versus the industry's 4.2 months, and highlighted that PACCAR builds to order.

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CEO Preston Feight detailed two parts of the regulatory discussion: GHG standards and NOx standards, stating PACCAR is prepared for either outcome with investments in clean diesel technology. CFO Harrie Schippers noted the Parts team achieved solid margins above 30% in a soft market and expects growth to continue at 2% to 4% for the year.

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CEO Preston Feight stated the core strategy is to build valuable trucks for customers, which allows PACCAR to maintain its premium pricing and gain share simultaneously, supported by a strong dealer network. On Parts, President and CFO Harrie Schippers emphasized that growing sales by 4% in a down market was an impressive achievement and guided for 2% to 4% growth in 2025, signaling another strong year.

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CEO Jule Smith explained that confidence in 2026 public spending stems from projected contract awards across state, federal, and local programs, which are expected to grow similarly to fiscal 2025's 14% increase. CFO Greg Hoffman noted that costs for the next year are largely locked in the backlog and that the company is on track to reach its ~2.5x leverage ratio target by late fiscal 2026 through strong operating cash flow. Smith added that while deleveraging is a commitment, the company will continue to pursue crucial strategic acquisitions.

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CFO Gregory Hoffman attributed organic growth to both strong markets and share gains from newly acquired companies. He described the cost environment as stable despite mixed commodity price movements. Executive F. Smith noted that CPI is insulated from grant pauses as it relies on formula funding and expressed optimism about the federal reauthorization, citing a supportive administration and a proposed increase in the transportation budget.

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Executive F. Smith stated they have heard of no pauses on funding for their projects and noted that the current administration's focus on 'hard infrastructure' could be a tailwind. He explained that the record backlog allows them to bid patiently at good margins and that the competitive landscape remains stable with competitors also being busy. CFO Gregory Hoffman added that growing the backlog despite strong revenue burn highlights robust demand.

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CFO Eric Guerin clarified the GTV guidance reflects a tough Q4 comparison against $169 million in 2024 CAT event GTV, which is not in the current forecast. For EBITDA, he stated that year-over-year growth is expected to accelerate in H2, with no significant headwinds anticipated beyond minor startup costs for new international contracts.

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CFO Eric Guerin attributed the SG&A performance to a disciplined focus on operational efficiency while still investing in growth. CEO Jim Kessler added that as a company built on acquisitions, there are ongoing opportunities for efficiency gains. Regarding the take rate, Kessler stated they follow a disciplined annual review process but declined to share specific assumptions in the 2025 forecast.

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CFO Eric Guerin confirmed the Q1 GTV decline was anticipated and that the company expects a stronger second half to meet its full-year guidance. Executive Sameer Rathod addressed the tariff question, stating that while the situation is fluid, the key dynamic remains the spread between repair cost inflation and used car inflation. Regarding the take rate, Guerin explained that the company does not comment on its composition but continuously adjusts fees and commissions based on market dynamics.

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CFO Andrew Bonfield confirmed expectations for a strong Q4 in Construction Industries, driven by the absence of the large dealer inventory destock seen in the prior year. He clarified that while the pricing headwind from merchandising will diminish further in Q4 as they lap its introduction, some drag will likely persist into 2026.

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Joe Creed, COO and incoming CEO, explained that Caterpillar is implementing short-term, 'no-regrets' actions like reducing discretionary spending and slowing some inbound shipments. He noted that longer-term actions like moving supply chains require more certainty. Regarding pricing, he emphasized the need to balance tariff offsets with market conditions and competitive positioning, highlighting the success of current merchandising programs. Chairman and CEO Jim Umpleby added that the company is cautiously optimistic that trade deals could reduce the final tariff impact.

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Executive Andrew R. Bonfield explained that the recent inventory swings were primarily in Resource Industries, not Construction Industries. He stated the 2025 forecast is based on ongoing conversations with dealers, and while Q4 retail sales were better than expected, the company is not yet calling it a sustainable trend for 2025.

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Chairman and CEO Jim Umpleby avoided 2025 guidance but provided color on current trends. He noted continued weakness in well servicing but strength in gas compression for reciprocating engines. He described the Solar Turbines business in oil and gas as 'quite strong,' with robust booking and quotation activity. He added that a restart of LNG export permitting would be a medium- to long-term positive.

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Chair & CEO J. Thomas Hill expressed confidence in 2026 pricing, citing visible highway demand and a turn in private markets. Senior VP & CFO Mary Carlisle stated that while capital allocation priorities remain the same, the level of capital available has increased. She indicated that returning cash to shareholders in H2 is likely, with the amount dependent on M&A developments.

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CEO James Hill responded that Vulcan does not price based on its costs but rather on the value it provides to customers. He contextualized the potential tariff impact as being less significant than the 'breakneck inflation' of recent years, which the market absorbed. He concluded that he does not anticipate tariffs having a material impact on aggregates pricing.

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Chairman and CEO James Hill confirmed that since they are approaching their $11 per ton goal faster than anticipated, they plan to establish new long-term targets in the 'not-too-distant future.' Regarding 2025 free cash flow, SVP and CFO Mary Andrews Carlisle stated that full guidance will be provided in February but suggested that CapEx should remain in the historical 8-9% of revenue range for modeling purposes.

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SVP & CFO Jennifer Kong-Picarello clarified that the direct impact from steel tariffs is minimal as Terex does not import raw steel, and component-related impacts are included in the overall tariff guidance. President & CEO Simon A. Meester stated that ES booking patterns are returning to normal seasonality, with no evidence of customers pre-buying to get ahead of tariffs; demand remains strong based on fundamentals.

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EVP and CFO Philip Fracassa explained that the margin guidance was lowered due to three main factors: the negative leverage from a lower volume outlook, a more unfavorable mix than previously expected, and incremental cost headwinds, including a slightly longer ramp-up for the Belts plant. These factors combined to drive a slightly higher overall decremental margin assumption for the year.

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CFO Philip Fracassa confirmed there was no material evidence of a pre-buy in the fourth quarter. CEO Tarak Mehta acknowledged that while the renewables market saw price pressure in 2024 due to lower volumes, the company's market share has stabilized and they do not see competitive intensity increasing in 2025.

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President and CEO Tarak Mehta stated that net working capital is on the high side historically and that the company is working on process changes to improve efficiency. CFO Philip Fracassa clarified that on an organic basis, inventory actually declined by about $10 million in Q3, with more expected in Q4. On price-cost, Mehta anticipates flattish pricing in 2025, as there is no significant driver for prices to decline given continued input and labor cost inflation.

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CFO Pat Watson explained the inventory increase was mainly in WIP and raw materials due to a long supply chain and that holding lower-cost inventory is beneficial with rising tungsten prices. He also highlighted several non-recurring items for FY26, including the absence of ~$6M in insurance proceeds and an ~$8M catch-up portion of the IRA tax credit. CEO Sanjay Chowbey confirmed the company is using tariff rates as of April 30 and has plans to fully mitigate the impact.

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CFO Pat Watson detailed the company's sales exposure, noting China is about 10% of sales, Canada is half of that, and Mexico is around $40 million. He explained that trade is often bilateral and the company can leverage its global footprint to mitigate potential tariff costs. Watson also stated that while Kennametal's own inventory is slightly elevated and will be reduced, channel inventories at the customer level appear well-aligned with current demand.

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CFO Timothy Mammen clarified that the current financial impact is based on existing tariffs, with the highest rate affecting metal components from China. CEO Mark Gitin stated that the primary mitigation strategy is shifting manufacturing, not raising prices. He reiterated that significant price competition is confined to the China cutting market, which is less than 5% of IPG's business. Both executives noted that any low-cost competitor importing to the U.S. faces a 145% tariff, which strengthens IPG's competitive position due to its local U.S. manufacturing.

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CFO Tim Mammen noted that e-mobility is less than 20% of revenue and the outlook remains uncertain but stable. CEO Mark Gitin emphasized that competition is primarily in cutting, as IPG maintains a strong moat in EV battery welding with its differentiated technology. Both executives highlighted the company's manufacturing flexibility to mitigate tariff impacts without requiring significant new CapEx.

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CEO Troy Rudd stated that second-half growth will be balanced between top-line increases and margin improvement, supported by a record backlog and pipeline. He noted that while they have a handle on project delays, some may linger due to government personnel changes. CFO Gaurav Kapoor affirmed the company's focus on the annual 10% free cash flow margin target, expecting strong second-half performance consistent with historical trends.

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CEO Troy Rudd stated that while Q1 NSR growth of 5.5% exceeded internal expectations, the company still anticipates an acceleration in the second half of the year, supported by a record backlog and pipeline. Rudd emphasized that federal funding freezes have no material impact on the business due to minimal exposure to affected agencies like the EPA and USAID. He highlighted the company's strong position in Department of Defense work and a 100% win rate (8 for 8) on its largest strategic pursuits in the quarter.

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CEO Troy Rudd stated that infrastructure is a bipartisan priority and sees opportunities from deregulation and permitting reform, noting 95% of IIJA funding is secure. He confirmed good visibility into an H2'25 growth acceleration. CFO Gaurav Kapoor affirmed that the 10% free cash flow to NSR margin is an achievable and core focus, supported by the company's culture and future margin expansion, though it's hard to be precise given the number of projects.

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CFO Brian DelGhiaccio confirmed that the pricing moderation is expected to be gradual, supported by the 63% of their restricted contract portfolio tied to alternative indices that are currently outperforming CPI. He attributed the strong free cash flow primarily to EBITDA growth, along with some favorable working capital timing, such as one less payroll period, noting the result was in line with internal expectations.

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CEO Ward Nye and CFO Jim Nickolas asserted that the price-cost spread should continue to widen. Nye believes pricing will remain in a 'fundamentally better place' due to the inherent value of the product. Nickolas added that with moderating cost inflation, they expect another 100 basis points of gross margin expansion in 2025. Regarding segment margins, Nye expects ready-mix to see some compression as it absorbs input cost hikes from aggregates and cement, while the strategic cement business is performing exceptionally well with constructive pricing and high operational availability.

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CEO C. Nye acknowledged the weather impact was significant but did not provide a specific percentage, agreeing that 2025 volumes could be higher than the cautious initial guide if weather normalizes. He confirmed that the preliminary 2025 pricing outlook does not factor in any potential mid-year increases, which could provide an additional tailwind to results.

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CEO Eric Hansotia and CFO Damon Audia responded that while they have multiple contingency plans, no major supply chain shifts will occur without clear and stable tariff rules. They are exploring minor adjustments like local kitting. On the second point, Eric Hansotia stated that used equipment is not a significant problem for AGCO, with values holding steady and volumes at manageable, pre-COVID levels.

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CEO John Casella stated that they do not see significantly increased M&A competition, as many of their deals are relationship-based, though larger deals are always competitive. CFO Bradford Helgeson described cost inflation as 'stubborn,' running at 4-5% this year. He noted that the company is budgeting for this level of inflation to continue into 2025 and plans to offset it through ongoing cost reduction programs and disciplined pricing.

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