Do you see merit in the president trying to restructure trade relationships with the major powers from the EU to China to the smaller ones like Vietnam. Do you see merit. It it's got to happen. It's got to happen for a couple of reasons.First of all, it's one of the reasons we're also getting into a lot of debt, but partially it could also contribute to uh tax revenues, but also these imbalances are not uh sustainable. Not they're not sustainable not only because of the debt issue and the trade issue to mak ...

Core Viewpoint - Prologis offers a dividend yield of 3.8%, which is high compared to its historical range, and despite current tariff tensions, the long-term outlook remains positive due to a significant internal growth opportunity valued at $42 billion [1][10]. Company Overview - Prologis is a real estate investment trust (REIT) specializing in industrial properties, particularly warehouses in key international trade hubs, with a market capitalization of approximately $100 billion, making it one of the largest publicly traded REITs [2][5]. Asset and Operations - The company owns over 5,800 buildings, encompassing more than 1.3 billion square feet of space across 20 countries, serving around 6,500 customers, and managing $198 billion in assets for institutional investors [4]. Market Position and Strategy - Prologis's size provides advantageous access to capital markets and positions it as an industry consolidator, although its focus on global distribution hubs ties it to global trade dynamics, which are currently affected by tariff issues [5][6]. Growth Opportunities - The undeveloped land owned by Prologis is estimated to support a build-out worth $42 billion, representing a significant long-term growth opportunity relative to its market cap [8][9]. - The company plans to utilize this growth opportunity over time, ensuring that capital investment aligns with tenant demand, thus providing sustained growth potential [9][10].

Core Insights - Deere & Company reported a net income of $1.804 billion for Q2 2025, down 24% from $2.370 billion in Q2 2024, with earnings per share decreasing from $8.53 to $6.64 [1][3][19] - For the first half of 2025, net income was $2.673 billion, a 35% decline from $4.121 billion in the same period last year [1][19] - The company anticipates full-year net income for fiscal 2025 to be between $4.75 billion and $5.50 billion [3][12] Financial Performance - Total net sales and revenues decreased by 16% to $12.763 billion in Q2 2025, and by 22% to $21.272 billion for the first six months [2][4][19] - Net sales for Q2 2025 were $11.171 billion, down from $13.610 billion in Q2 2024, while for the first half, sales fell from $24.097 billion to $17.980 billion [2][19] - Operating profit for the total company decreased by 26% to $2.308 billion in Q2 2025, and by 41% to $3.101 billion for the first half [4][19] Segment Performance - Production & Precision Agriculture segment saw net sales drop by 21% to $5.230 billion, with operating profit down 30% to $1.148 billion [5][16] - Small Agriculture & Turf segment reported a 6% decrease in net sales to $2.994 billion, but operating profit increased by 1% to $574 million [6][16] - Construction & Forestry segment experienced a 23% decline in net sales to $2.947 billion, with operating profit falling 43% to $379 million [7][16] Market Outlook - The company expects a decline of approximately 30% in large agriculture equipment sales in the U.S. and Canada, and a 10-15% decrease in small agriculture and turf sales [10][11] - Construction equipment sales in the U.S. and Canada are projected to decrease by around 10% [11] - The outlook incorporates the effects of global import tariffs, with potential future tariff impacts not included due to uncertainty [12][14] Strategic Focus - The company emphasizes ongoing investment in advanced products and manufacturing capabilities to remain competitive [4][8] - Deere & Company aims to continue significant investments in its core U.S. market over the next decade, focusing on innovation and growth [4][8]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $26.6 million, down $3.2 million compared to Q1 2024, primarily due to a $6 million reduction in semiconductor sales and a $1.2 million decline in the industrial market [7][22] - Gross profit for Q1 2025 was $11.1 million, a decrease of $2 million year-over-year, with a gross margin of 41.5%, tightening by 230 basis points compared to the prior year [22][23] - The net loss for the quarter was $2.3 million, or a loss of $0.19 per diluted share, while adjusted net loss was $1.4 million, or a loss of $0.11 per diluted share [25] Business Line Data and Key Metrics Changes - Sales to the auto EV sector increased by $2 million, life sciences by $1 million, and other markets by $1.3 million, partially offsetting declines in semiconductor and industrial sales [10][22] - Industrial orders grew 47% year-over-year to $4.6 million, driven by a significant order from a returning customer [18] - Semiconductor orders declined by $6 million, reflecting tempered demand in the electronic test division [19] Market Data and Key Metrics Changes - Backlog as of March 31 was $38.2 million, including $5.8 million from affirmation, down $17.2 million from the prior year [21] - Over half of the company's sales are associated with products made in the U.S. and sold to U.S. customers, or products sold to global customers from international sites not currently impacted by tariffs [15] Company Strategy and Development Direction - The company is focusing on market diversification, innovation, and investment in regional manufacturing facilities to navigate geopolitical tensions and trade policy volatility [31][33] - Plans to begin manufacturing in Malaysia during the second half of 2025 are on schedule, which is expected to enhance competitiveness and reduce costs [32][33] - The Vision 02/1930 growth strategy aims to increase the proportion of new products in total sales from 17% to 25% in the coming years [32] Management's Comments on Operating Environment and Future Outlook - Management noted that the first quarter was marked by shifting tariff policies and macroeconomic turmoil, creating a challenging environment for global companies [7][31] - The company remains optimistic about its customer pipeline, which is at an all-time high, and anticipates sequential improvement in top-line and profitability through the year [29][31] - Visibility into the timing of orders and shipments remains limited due to ongoing tariff uncertainties [28][29] Other Important Information - The company generated $5.5 million in cash from operations during the quarter and reduced total debt by $3.2 million [26][27] - Operating expenses for Q1 2025 were $13.9 million, up $1.3 million year-over-year, including restructuring costs and incremental expenses related to the acquisition of Alphamation [23][24] Q&A Session Summary Question: When did visibility get cloudier in the second half? - Management noted that customer slowdown in order bookings began mid-quarter, which affected guidance [36][37] Question: What are the potential swing factors for revenue? - Management identified semiconductor and auto sectors as the biggest potential swing factors, with a healthy pipeline for both industries [38][39] Question: What is the breakeven quarterly revenue level now? - Management indicated that the breakeven point is being adjusted downwards, with a typical range around $30 million [40][41] Question: Can you quantify the customer pipeline? - Management refrained from providing specific numbers but confirmed that the opportunity funnel is at a historic peak [53][54]