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President and CFO Harrie Schippers explained that European volumes were impacted by weakness in Central and Eastern Europe. CEO Preston Feight added that the European team has maintained strong price discipline and that PACCAR intends to build to demand in 2025. Regarding new orders, Feight mentioned positive customer conversations and acknowledged current price/cost tension but expects it to ease through 2025.

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EVP Kevin Baney stated the engine remanufacturing plant will be operational in Q1 of next year and will have a run-rate capacity of about 5,000 engines annually. CEO & Director R. Preston Feight explained the South America outlook reduction is primarily driven by Brazil, where interest rate hikes have negatively affected consumer confidence and investment in trucks.

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EVP Kevin Baney stated the engine remanufacturing plant will be operational in Q1 of next year with a full run-rate capacity of about 5,000 engines annually. CEO & Director R. Preston Feight attributed the lower South American outlook primarily to Brazil, where significant interest rate hikes have dampened confidence and investment.

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CEO Preston Feight clarified the 13-14% Q2 margin guide includes tariffs as they stand today, and any changes from the Section 232 investigation would likely represent upside. CFO Harrie Schippers added that for the Parts business, it's much easier to pass on cost increases with immediate effect, minimizing margin impact.

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CEO Preston Feight explained that the Q1 delivery forecast reflects a normalization in the robust medium-duty market, a Q4 pre-buy in Mexico, and fewer production days in South America, while US Class 8 deliveries are expected to be flat to slightly up. He strongly reaffirmed the strategic importance of the Amplify JV, stating it is a long-term objective to provide customers with a full powertrain portfolio and secure a low-cost, high-quality battery supply.

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CFO Jack Kienzler detailed the factors for the second-half margin outlook, citing typical seasonality, moderating share gains after a strong first half, and higher decrementals from lower first-fit volume. CEO Steph Disher addressed capital allocation, emphasizing that inorganic growth is the top priority and the 1-3% repurchase range provides flexibility, supported by the company's strong cash generation capabilities, especially post-separation from Cummins.

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CFO Jack Kienzler detailed a pricing ramp, expecting over 3% in Q2, building to the 4-5% range in Q3 and Q4. CEO Stephanie Disher elaborated on tariff impacts, explaining the current focus is on mitigating China and Mexico tariffs through certifications and supply chain adjustments before passing on costs. She stated that any future tariffs, like from Section 232, would be handled with the same principles of mitigation first, followed by price adjustments to remain margin-dollar neutral.

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CEO Steph Disher confirmed the 1% pricing guidance reflects actions already taken and does not assume a second-half increase, though they will monitor conditions. On first-fit, she explained wins are longer-cycle but noted a 2024 win will benefit 2025 and that the company is reinvesting in account management to drive further share growth.

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CEO Stephanie Disher responded that while the company expects to continue gaining market share, overall volumes face downward pressure from fewer selling days and further declines in the heavy-duty first-fit market. Regarding pricing, she did not provide a specific 2025 figure but referenced the company's long-term growth algorithm, which targets 1% to 2% price growth through the middle of the cycle.

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CFO Allan Dicks confirmed the segment's higher run-rate, noting it includes about $5.5 million from prior-year M&A and is subject to typical Q2/Q3 seasonality. President & CEO Vijay Manthripragada added that the company's overall organic growth is now in the low double-digits. Regarding capital allocation, both executives stated that buybacks are an option but not a current priority. The focus remains on organic growth, deleveraging, and cash flow generation, with the redemption of preferred stock having been completed ahead of schedule.

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CEO Timothy FitzGerald explained that while Middleby does not sell directly to end-users, its go-to-market strategy involves significant direct engagement through innovation centers, culinary teams, and digital tools for education. He clarified they work with and strengthen their channel partners and are not planning a direct e-commerce sales channel, but are deploying new digital tools to enhance customer interaction.

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Executive Timothy FitzGerald clarified that the tariff impact range already assumes a 20-40% reduction from the gross number, but it could decrease further depending on negotiations. Regarding the buyback, he affirmed the company's commitment to deploying 'essentially the entirety' of its free cash flow for share repurchases this year, while still considering other factors.

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Executive Timothy FitzGerald confirmed that Middleby has initiatives to grow service revenue in both businesses, leveraging tools like IoT. Executive Bryan Mittelman added that the mix has grown most in the Food Processing segment as customers outsource maintenance, while the Commercial segment's mix has been stable and Residential's remains the lowest.

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Executive Timothy FitzGerald acknowledged the industry-wide shortage of service technicians post-COVID and detailed Middleby's focused strategy to address it. This includes hiring technicians into their network and providing industry-leading training at their new facilities. He noted that the number of service agents has grown significantly over the past 18 months as a result of these efforts.

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President & CEO Shyam Kambeyanda explained the headwind was from local customers in Mexico delaying orders post-tariff implementation, but noted confidence in an automation rebound due to a strong order book. CFO Kevin Johnson added that cost savings have been ramping up over the past three years, shifting from footprint rationalization to back-office automation and EBX initiatives.

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CEO Shyam Kambeyanda acknowledged the company's strong momentum but stated the focus remains on hitting existing targets before setting new ones. While confirming they are considering future targets, he emphasized the strategy of balancing margin expansion with reinvesting in the business for long-term growth, such as in innovation and AI.

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CEO Shyam Kambeyanda attributed the EMEA & APAC success to long-term (8+ years) investments in local teams, market leadership in India and the Middle East, and a strong product portfolio, confirming that the company is gaining share. Regarding North America, he acknowledged equipment share is currently low but noted that brand recognition has grown 200% and the company is confident in its long-term strategy to gain share by selling value.

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Sanjay Chowbey, President, CEO & Director, clarified that the flat Energy revenue outlook is the result of higher pricing from material costs offsetting an expected mid-single-digit decline in piece volume and rig counts. For Aerospace and Defense, he projected low double-digit growth for the year, anticipating conditions will steadily improve as OEM production ramps up and supply chain issues are resolved.

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President and CEO Sanjay Chowbey clarified that the ~2% price realization outlook for the year excludes the impact of tariff surcharges, which are intended to offset the direct cost of tariffs. CFO Pat Watson added that in Q3, price versus raw material cost was balanced for the Infrastructure segment, unlike the prior-year period which faced a headwind.

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CFO Pat Watson opined that lower rates are constructive but have a variable lag of several quarters, noting that customer sentiment has not yet turned positive. He then specified the workday impact for the upcoming quarters: +0.5 days in Q2, -0.5 in Q3, and -0.5 in Q4, resulting in a minimal net effect for the year.

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CFO Mark Smith affirmed that the company's aspiration is for Power Systems margins to go higher over time and that having new capacity fully installed should theoretically help, all else being equal. However, he cautioned against expecting dramatic short-term changes, noting the business's complexity and the many variables at play.

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CFO Mark Smith acknowledged the logic, stating that while there are many moving variables, the company aspires for Power Systems margins to go higher over time. He agreed that once new capacity is fully installed and running against strong demand, performance is 'usually better.' However, he cautioned against expecting dramatic changes in the near term.

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CFO Mark Smith reported a net positive price-cost impact of approximately 2% on gross margin, resulting from a 3% price-cost benefit partially offset by a 1% negative volume impact. He explained that the Distribution segment is a reseller, while the Components segment has U.S. manufacturing but faces tariff exposure through its complex global supply base.

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CFO Mark Smith explained that while aftermarket parts provide a stable base, the primary swing factor for the Distribution segment's strong growth is power generation demand from data centers. Regarding the prebuy, Smith noted that a stronger second half is built into the forecast, driven partly by demand ahead of regulations, but acknowledged that the exact timing and magnitude are uncertain.

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CFO Mark Smith acknowledged the strong recent performance but stated that Cummins would not be updating its long-term targets at this time, deferring detailed guidance to the February call. He noted that while the core business has performed well, the Accelera segment has faced incremental headwinds since the company's last Analyst Day.

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CEO Joe Creed explained that while all options, including sourcing changes and pricing, are being considered, the company requires more certainty before implementing long-term actions. He emphasized Caterpillar's global footprint and its commitment to mitigating the impacts over time, highlighting that short-term "no regrets" actions like cost controls are already underway.

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Andrew Bonfield, CFO, explained that the Q2 figure is not a simple run-rate to be annualized. He noted that not all tariffs will be in effect for the full quarter and that the company expects to implement further mitigation actions as the year progresses. Bonfield also highlighted that a significant portion (over 50%) of the tariff impact comes from China, and any potential trade deals could substantially reduce this cost.

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Executive Andrew R. Bonfield stated that Energy & Transportation was the primary driver of order growth. He added that Resource Industries saw some improvement from large contracts, while Construction Industries orders were broadly flat for the quarter.

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Chairman and CEO Jim Umpleby declined to provide 2025 guidance but expressed long-term optimism for mining, driven by the energy transition. He noted the recent volume drop was mainly due to tough comparisons for articulated and off-highway trucks. Positive indicators include high equipment utilization, an aged fleet, low numbers of parked trucks, and strong customer inquiry activity for large mining trucks.

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COO G. Frederick Bohley affirmed that the capital allocation policy is unchanged and the company can simultaneously fund the business, pay down debt, and return cash to shareholders. He stated they will remain opportunistic with buybacks, citing a strong belief in the company's long-term value and a three-year stock price target north of $200 per share.

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COO G. Bohley confirmed the Q1 pricing figure was closer to 500 basis points, ahead of the initial 400 basis point guidance. He indicated that for the full year, pricing would likely be 'a little north of the 400 basis points' and agreed that a mid-single-digit outcome is possible.

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G. Bohley, COO, CFO & Treasurer, confirmed the 400 basis point price increase is broad-based, with North America On-Highway as a key driver due to new, shorter-duration long-term agreements. He clarified that the segment's guided 1% revenue growth implies a year-over-year volume decline, primarily driven by an expected slowdown in the medium-duty market, which aligns with industry forecasts.

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CEO David Graziosi clarified the India investment doubles the manufacturing footprint to increase component fabrication for the 3000 and 4000 Series, boosting global on-highway capacity by 10-20%, not assembly capacity. Regarding the cycle, he described vocational demand as 'unprecedented' with no signs of a near-term pullback, fueled by infrastructure spending and a potential 2027 pre-buy, though industry capacity constraints are a limiting factor.

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CFO Jim Nicholas confirmed that the historical seasonal pattern for Agriculture segment margins is expected to repeat in 2025. He guided for a slight step-down in margins from Q2 to Q3, followed by a strong rebound in Q4, which will align with the company's full-year guidance for the segment.

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CFO Matthew Field stated that he expects total share repurchases for the year to 'roughly double, maybe a little bit more' than the $120 million repurchased last year. He clarified that the amount is not determined as a direct percentage of free cash flow but is based on the company's execution and overall comfort level with its performance.

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CFO Matthew Field stated that he expects Access margins in Q2 and Q3 to be stronger than Q1, with minimal tariff impact in Q2 due to inventory. Both he and CEO John Pfeifer confirmed the $1 headwind is a partial-year 2025 figure, primarily affecting the second half, and that the company is actively working on mitigation plans for 2026 and beyond.

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CEO John Pfeifer stated that the NGDV production mix is consistent with previous discussions and that the company is on schedule, with the USPS delighted with the new vehicles. On tariffs, he emphasized that Oshkosh is primarily an American manufacturer for the U.S. market and has a resilient global footprint, allowing it to make adjustments to mitigate impacts, similar to how it shifted production to Europe to counter recent tariffs there.

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EVP and CFO Michael Pack confirmed that increasing Vocational capacity is a 'huge focus,' with investments underway in existing facilities and at the new Murphysboro plant. On AeroTech, Pack highlighted strong technology and commercial synergies, while CEO John Pfeifer added that the strength of AeroTech's customer relationships was a positive surprise.

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SVP & CFO Damon Audia outlined the margin seasonality, projecting approximately 7.5% in Q3 and over 9% in Q4 to meet the full-year target. Chairman, President & CEO Eric Hansotia explained that the 2026 outlook is based on a proprietary data science model with around 200 variables, which has proven highly accurate, and is supported by improving farmer sentiment indicators.

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CEO Eric Hansotia clarified that AGCO would not place the entire cost burden of a tariff on a single product line. The company's strategy is to first mitigate costs internally and with suppliers, and then any remaining impact would likely be spread across the broader product portfolio through pricing actions to maintain the relative market positioning and value proposition of all its brands.

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CFO Damon Audia attributed the resilient performance to market share gains and robust parts sales. For the long-term outlook, he stated that AGCO generally targets mid-teens operating margins for its regions, including Europe, at mid-cycle.

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Damon Audia, Senior Vice President & CFO, attributed strong North American pricing to new product introductions and more selective discounting, especially in the rural lifestyle segment. On deleveraging, he confirmed the $500 million term loan was repaid and stated the company will likely use cash to pay down an additional $250 million of debt maturing in early 2025.

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President & CEO Simon A. Meester confirmed expectations for gradual sequential improvement in MP, supported by healthy fleet utilization, despite some caution extending rental conversions. SVP & CFO Jennifer Kong-Picarello added that the margin improvement would be skewed toward Q4, driven by higher factory absorption and a favorable geographical mix.

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CEO Simon Meester clarified that the guidance assumes a de-escalation of China tariffs to roughly 50% of their current level. Regarding Germany, he noted positive sentiment from customers and stated a stimulus would favorably impact the Material Handling, Aerials, and MP aggregates businesses, with main effects likely starting in 2026.

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Executive Simon Meester clarified that the ES segment guidance combines ESG with Terex Utilities, and growth is constrained by supply and capacity ramp-up on the Utilities side, not by ESG's performance. Executive Julie Beck explained that Q1 EPS will be impacted by seasonally lower Aerials revenue and continued production cuts to match demand, while the MP segment will also start slow. ESG is expected to be strong and steady.

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Founder, Chairman, President & CEO Patrick Dovigi stated that with only 10% of the workforce unionized and competitive wages already in place, GFL does not see strikes as a material risk. He pointed to declining voluntary turnover rates as an indicator that employees are fairly compensated, suggesting significant wage inflation pressure is not expected within their book of business.

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Senior VP & CFO Michael Larsen explained that the margin outlook was adjusted due to the dilutive effect of pricing actions taken to offset tariffs, which is an EPS-positive timing issue expected to be recovered. He and President & CEO Chris O'Herlihy expressed confidence in the Automotive segment's margin trajectory, with Larsen projecting margins solidly above 20% for the second half, putting them on track for their long-term goals. O'Herlihy added that ongoing enterprise initiatives and high-margin innovation are key drivers of this performance.

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CFO Michael Larsen confirmed the guidance incorporates current demand, incremental tariff-related pricing, and lower auto build forecasts. He agreed that it's reasonable to assume higher pricing could offset potential volume softness in the second half. Larsen also stated that all divisions impacted by tariffs have already taken decisive pricing actions based on recent announcements, expressing confidence in their ability to manage the impact effectively.

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CFO Michael Larsen quantified import exposure, stating that combined imports from China, Canada, and Mexico are less than 10% of U.S. domestic spend, making potential tariff impacts manageable. He also noted that the 2025 price/cost expectation is for a normal environment where price offsets cost increases on a dollar basis, consistent with historical performance.

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CFO Michael Larsen explained that price/cost has normalized, with price dollars modestly ahead of cost dollars. CEO Chris O'Herlihy affirmed that enterprise initiatives will continue to be a significant contributor in 2025, driven by the company's continuous improvement DNA, calling 80/20 'the gift that keeps on giving.' On strategy, he stated that ITW evaluates all M&A opportunities against its disciplined criteria of sustainable differentiation, business model leverage, and proper valuation, rather than targeting specific sectors.

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CFO Brian Delghiaccio projected that volumes for the second half of the year would be flat to slightly negative. He expects Q3 to be flattish year-over-year due to contributions from event-driven landfill volumes, turning negative in Q4 as those projects conclude. On pricing, Delghiaccio reiterated the full-year outlook for 5% average yield on related revenue, implying a rate just under 5% for the second half.

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CEO Jon Vander Ark advised looking at Environmental Solutions margin trends over years rather than quarters due to mix variability but affirmed they expect margin expansion for the full year. He clarified the guidance did not assume a recession but rather a 'slow and steady recovery,' and they did not bake in a 'hockey stick rebound.'

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CFO Phil Sawarynski clarified that the $10 million tariff impact is primarily from products imported into the U.S. from Canada and Mexico that are not USMCA compliant, with minimal impact from China. He also stated that direct federal revenue exposure is very small, in the single-digit millions for the remainder of the year, and was already conservatively factored into guidance.

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Executive Phil Sawarynski clarified that the $10 million tariff impact is primarily from products imported to the U.S. from Canada and Mexico that are not USMCA compliant, rather than from China. Regarding federal exposure, he stated it was minimal, accounting for only single-digit millions in the forecast for the remainder of the year, making any potential government spending cuts immaterial to their outlook.

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CFO Phil Sawarynski detailed a plan to execute $625 million in buybacks over Q1 and Q2, followed by repurchases of at least one-third of free cash flow. He noted the company has ample capacity for M&A. He also explained the improved guidance was driven by underlying strength in the AECO and Field Systems businesses, which offset a $40 million FX headwind.

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Executive Robert Painter noted anecdotally increased customer confidence but highlighted that Trimble's business is now more resilient with over 60% recurring revenue. He pointed to the untapped potential of the bipartisan infrastructure law as a key factor. Executive Phil Sawarynski reiterated that the company is biased towards the high end of its prior long-term operating leverage model of 30-35% and could see about 100 basis points of EBITDA margin expansion annually over a multiyear period.

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Executive Robert Painter noted anecdotal increases in customer confidence but emphasized the business is more resilient today with over 60% recurring revenue. Executive Phil Sawarynski reiterated that the company is biased toward the high end of its 30-35% operating leverage model and expects about 100 basis points of EBITDA margin expansion over a multiyear view.

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CEO Juan Luciano described overall demand in Carbohydrate Solutions as solid but not robust, reiterating guidance for the segment to be slightly lower than last year. He identified pockets of weakness, including lower results in Europe due to high corn costs, softness in the paper industry, and softer exports to Mexico amid tariff uncertainty.

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Chair and CEO Juan Luciano confirmed that, excluding regulatory uncertainty, the Q4 volume growth driven by the Spiritwood facility ramp-up is a reasonable baseline for 2025 under normal conditions. Regarding tariffs, he explained that ADM actively engages in scenario planning and that its global footprint provides the agility to adjust trade flows and adapt to new policies.

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CEO Ryan McMonagle confirmed the primary tariff exposure is on chassis from Canada and Mexico. He explained that the company is mitigating costs by leveraging strong supplier relationships and tactically pulling forward chassis inventory purchases ahead of price increases. McMonagle also stated that the inventory reduction will be more weighted towards the second half of the year, with some additional inventory purchasing expected in Q2.

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CEO Ryan McMonagle projected that utilization would remain in the high 70s to low 80s range for the year, with normal seasonal increases in the spring and fall driven by transmission project demand. CFO Chris Eperjesy confirmed that Q1 is expected to be the low point of the year, consistent with a 45/55 first-half/second-half revenue and EBITDA split.

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CEO Ryan McMonagle indicated that while formal 2025 guidance is pending, a mid-single-digit fleet growth rate seems like a reasonable preliminary expectation. CFO Chris Eperjesy explained that the APS segment's gross margin was impacted by a mix shift away from higher-margin tool and accessory rentals, which were affected by the same utility market softness, as well as some increased material costs.

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CEO Rafael Santana explained that pricing is managed across the entire 'basket of business' with a customer, which includes new orders, modernizations, and multiyear agreements, rather than on an item-by-item basis. This allows for a balanced and fair approach. CFO John Olin confirmed that the updated guidance incorporates the company's latest view on currency exchange rates for the remainder of the year.

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CFO W. Humphrey responded that the guide does not assume a recession but rather a flat local market offset by mega project growth. He confirmed they have embedded a 10% customer churn 'dis-synergy' into their model, with 60% in year one and 40% in year two post-close, which he described as in line with or above normal attrition.

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CEO Lawrence Silber stated that Herc does not comment on specific deals but views industry consolidation as a positive that creates a more stable market. CFO W. Humphrey noted the 2025 fleet purchase will be slightly more weighted to specialty to meet customer needs, but it will not meaningfully change the overall fleet mix.

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CEO Lawrence Silber confirmed that specialty rental revenue grew at a double-digit rate but did not provide a more specific figure. On local markets, he stated that overall organic growth was in the 7% range and that the underlying local market behavior stabilized in Q3 at a level consistent with the end of Q2.

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CEO Gregory Heckman stated the farmer aid package has a minimal direct impact but is broadly positive as it supports farmer investment in future crops. On a potential trade flow shift, he emphasized that Bunge's balanced global footprint enables it to manage regional trade-offs and adjust its system to serve demand wherever it originates, whether North or South America.

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