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Federal Signal (NYSE:FSS) M&A Announcement Transcript
2025-09-25 13:32
Summary of Federal Signal Corporation's Acquisition of New Way Trucks Conference Call Company and Industry - **Company**: Federal Signal Corporation (NYSE:FSS) - **Acquisition Target**: New Way Trucks, a leader in the design and manufacture of refuse collection vehicles serving the solid waste industry Core Points and Arguments 1. **Acquisition Announcement**: Federal Signal announced the acquisition of New Way Trucks for an initial purchase price of $396 million on a cash-free, debt-free basis, with additional real estate consideration of $30 million and a contingent earnout of up to $54 million based on financial targets over two years [9][10] 2. **Strategic Rationale**: The acquisition is seen as a natural extension of Federal Signal's specialty vehicle portfolio, aimed at diversifying revenue streams and reducing earnings cyclicality. New Way's leadership in automated side loaders is particularly attractive [12][22] 3. **Market Position**: New Way Trucks holds a leading position in automated side loaders, which represent approximately 37% of the North American refuse collection vehicle market, up from 29% five years ago [13] 4. **Synergy Expectations**: Federal Signal anticipates annual run-rate synergies of $15 million to $20 million, targeting a combined EBITDA of $55 million for New Way by 2028 [16][39] 5. **Financial Projections**: The acquisition is expected to be neutral to earnings per share (EPS) in 2026, with anticipated accretion of $0.40 to $0.45 per share by 2028, assuming a debt paydown of approximately $100 million per year [10][11] 6. **Operational Improvements**: Federal Signal plans to implement its operational model, including procurement savings and supply chain optimization, to enhance New Way's manufacturing efficiencies and customer service [17][18] 7. **Aftermarket Growth**: There is a significant opportunity to increase New Way's aftermarket sales mix, which is currently around 10-11% of sales, targeting mid to high teens by 2028 [20][30] 8. **Market Expansion**: Federal Signal aims to leverage its existing distribution network to penetrate underserved markets, particularly in Canada, where New Way has minimal presence [26][55] Other Important but Possibly Overlooked Content 1. **Cultural Fit**: The acquisition is noted for its strong cultural alignment between Federal Signal and New Way, emphasizing employee treatment and community investment [64] 2. **Technological Advancements**: New Way has been building electric vehicles (EVs) since 2018 and has sold over 50 EV trucks since 2020, aligning with Federal Signal's strategy [70] 3. **Integration Strategy**: Federal Signal has a detailed integration plan in place, with a focus on aligning incentives for both New Way and Federal Signal employees to achieve synergy targets [73][74] 4. **Customer Relationships**: New Way's strong relationships with customers and dealers are highlighted as a key competitive advantage in the market [57] 5. **Future Product Development**: Plans for enhancing New Way's technology offerings through R&D and partnerships are in place, focusing on customer feedback [71] This summary encapsulates the key points discussed during the conference call regarding Federal Signal's acquisition of New Way Trucks, highlighting the strategic rationale, financial implications, and operational plans moving forward.
REV Group(REVG) - 2025 Q3 - Earnings Call Transcript
2025-09-03 15:02
Financial Data and Key Metrics Changes - Consolidated net sales for Q3 2025 were $644.9 million, up from $579.4 million in Q3 2024, representing a 20.5% increase when excluding the impact of the exited E and C transit bus business [13] - Adjusted EBITDA for Q3 2025 was $64.1 million, compared to $45.2 million in Q3 2024, marking a 66.1% year-over-year increase when excluding the impact of the divested bus business [14][25] - Year-to-date cash flow was strong, with cash from operating activities totaling $164.7 million [23] Business Line Data and Key Metrics Changes - Specialty Vehicles segment sales increased to $483.3 million, an 11.8% increase compared to the prior year, with adjusted EBITDA rising by 71.4% to $64.6 million [15][16] - Fire unit shipments increased by 11% and ambulance unit shipments increased by 7% compared to the previous year [6][16] - Recreational Vehicle segment sales rose to $161.7 million, a 9.7% increase, but adjusted EBITDA decreased by 13.8% due to increased dealer assistance and tariff impacts [19][20] Market Data and Key Metrics Changes - Specialty Vehicles segment backlog at the end of Q3 was $4.3 billion, reflecting continued demand for fire apparatus and ambulance units [17][58] - Recreational Vehicle segment backlog declined by 7% year-over-year, indicating soft end market demand [21] Company Strategy and Development Direction - The company is focused on reinvesting in its businesses to drive long-term growth, pursuing opportunistic share repurchases, and maintaining a sustainable dividend [12] - A major facility expansion in South Dakota is expected to increase fire apparatus production capacity by 40%, enhancing delivery times and throughput [8][47] - The company aims to streamline operations and improve cost discipline, with a focus on lean manufacturing and workforce training [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage tariff impacts and maintain strong performance, raising the fiscal 2025 outlook [12][25] - The company anticipates continued demand for its products, despite macroeconomic uncertainties affecting the recreational vehicle market [19][21] - Management highlighted the importance of maintaining competitive lead times and quality in response to market conditions [50][64] Other Important Information - The company completed the sale of its Lance Camper business, streamlining its RV portfolio to focus on motorized RVs [10] - Capital expenditures for the quarter were $11.6 million, with a focus on improving efficiency and quality [23] Q&A Session Summary Question: Were the record EBITDA margins in line with expectations? - Management confirmed that the company is on track with its midterm targets and is pleased with the progression [29] Question: How will tariffs impact the first quarter of fiscal 2026? - Management expects a typical sequential decline in sales of 10-15% in the first quarter due to working and shipping days [31] Question: Are pricing strategies effectively offsetting inflation and tariffs? - Management is actively reviewing pricing strategies to offset inflation and has not yet taken price increases in response to tariffs [33][44] Question: How is the company managing tariff impacts on steel and aluminum? - Management indicated that the expected drag from tariffs remains consistent, with ongoing efforts to minimize impacts through supply chain management [41][42] Question: What is the outlook for the fire business and its capacity expansion? - The South Dakota facility expansion will enhance production capabilities, with full operational capacity expected in 2027 [47] Question: How does the company view pricing competition in the market? - Management noted that they are currently not seeing significant price competition and remain competitive in both price and lead time [62][64] Question: What are the capital deployment plans given strong cash flow? - Management emphasized the importance of internal investments for productivity improvements while remaining opportunistic regarding M&A opportunities [73][75]
Oshkosh (OSK) Q2 EPS Beats by 16%
The Motley Fool· 2025-08-02 10:25
Core Viewpoint - Oshkosh reported strong adjusted earnings per share for Q2 2025, but faced challenges in revenue and backlog, particularly in the Access segment, while management raised full-year earnings guidance due to improved cost visibility and execution [1][5][11] Financial Performance - Adjusted earnings per share (non-GAAP) were $3.41, exceeding estimates by $0.46, while GAAP revenue was $2.73 billion, down 4.2% year-over-year [2][5] - Operating income (GAAP) increased by 11.8% to $291.7 million, and net income (GAAP) rose 21.5% to $204.8 million [2] - The Vocational segment saw a 15.0% increase in sales to $969.7 million, with operating income jumping 38.3% [6] - The Access segment experienced a 10.7% decline in sales to $1,256.0 million, with backlog dropping over 60% [7] Segment Analysis - The Transport segment's sales fell 16.2% to $479.1 million, but backlog grew to $6.7 billion, indicating future security [8] - Key product launches included new electric vehicles and a micro-sized scissor lift, reflecting the company's focus on innovation and sustainability [9][10] Strategic Outlook - Management raised full-year adjusted earnings guidance to approximately $11.00 for fiscal 2025, with GAAP earnings per share expected at $10.25 and sales projected at $10.6 billion [11] - The company is implementing cost-cutting measures and tariff mitigation efforts, anticipating less impact from tariffs than previously expected [11][12]
Oshkosh (OSK) - 2025 Q2 - Earnings Call Transcript
2025-08-01 13:32
Financial Data and Key Metrics Changes - The company reported consolidated sales of $2.7 billion for Q2 2025, a decrease of $115 million or 4% from the same quarter last year, primarily due to lower sales volume in the Access and Transport segments [18] - Adjusted operating income was $313 million, down slightly from the prior year, with an adjusted operating income margin of 11.5%, consistent with the prior year despite lower sales [18][19] - Adjusted earnings per share (EPS) was $3.41, an increase of 2.1% over the prior year [7][19] - Free cash flow for the quarter was $49 million, significantly higher than the net use of cash of $251 million in the previous year [19] Business Segment Data and Key Metrics Changes - The Access segment delivered resilient adjusted operating income margins of 14.8% on sales of $1.26 billion, despite a sales decline of $151 million compared to last year [19] - The Vocational segment achieved an adjusted operating income margin of 16.3% on $970 million of sales, reflecting a 220 basis point increase from last year due to improved price-cost dynamics [20] - The Transport segment improved its operating income margin to 3.7% from 2.1% last year, despite a revenue decrease of $93 million to $479 million [20] Market Data and Key Metrics Changes - Market conditions for access equipment in North America were in line with expectations, with sales volume in Europe experiencing a decline [19][20] - The company noted a return to normative levels in the book-to-bill ratio, indicating a stable demand environment [45] Company Strategy and Development Direction - The company aims for a compound annual revenue growth rate of 7% to 10% and transformative margin expansion of 200 to 400 basis points by 2028 [10] - The strategy focuses on accelerated innovation in autonomy, electrification, and intelligent connected products, supported by favorable long-term trends [6][10] - The company signed a three-year sole source contract for the FMTV program with the Department of Defense, which is expected to yield favorable returns [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in offsetting tariff impacts through mitigation strategies and local production initiatives [39] - The company anticipates a more limited impact from tariffs compared to previous quarters, projecting adjusted EPS for the year to be in the range of $11 per share on revenues of approximately $10.6 billion [22] - Management highlighted strong demand in infrastructure and data center projects, which are expected to drive future growth [47][48] Other Important Information - The company has increased its outlook for free cash flow from a range of $300 million to $400 million to a range of $400 million to $500 million, reflecting recent tax changes and improved operating performance [22] - Share repurchases for the year are expected to increase significantly, with nearly $70 million repurchased year-to-date [19][77] Q&A Session Summary Question: Access segment margin expectations for the second half - Management indicated that the second half results would be influenced by seasonality and expected cost impacts from tariffs, particularly in Q4 [28][30] Question: Clarification on tariff impacts - Management acknowledged ongoing tariff headwinds but expressed confidence in their mitigation strategies and local production advantages [39] Question: Expectations for Access revenues and margins - Management expects Access revenues to return to normal seasonality, with a strong third quarter followed by a dip in the fourth quarter [86] Question: Vocational segment performance - Management confirmed that the strong performance in the fire segment is expected to continue, with ongoing investments in capacity [68] Question: Capital allocation and share buybacks - Management outlined a framework prioritizing maintaining a strong balance sheet, organic growth, and share repurchases, even at current stock price levels [98]
Oshkosh (OSK) - 2025 Q2 - Earnings Call Transcript
2025-08-01 13:30
Financial Data and Key Metrics Changes - The company reported consolidated sales of $2.7 billion for Q2 2025, a decrease of $115 million or 4% from the same quarter last year, primarily due to lower sales volume in the Access and Transport segments [16] - Adjusted operating income was $313 million, slightly down from the prior year, with an adjusted operating income margin of 11.5%, consistent with the prior year despite lower sales [16] - Adjusted earnings per share (EPS) was $3.41, an increase of $0.07 or 2.1% over the prior year [6][17] Business Line Data and Key Metrics Changes - The Access segment delivered resilient adjusted operating income margins of 14.8% on sales of $1.26 billion, despite a $151 million decrease in sales compared to last year [17] - The Vocational segment achieved an adjusted operating income margin of 16.3% on $970 million of sales, a 220 basis point increase from last year, reflecting improved price-cost dynamics [18] - The Transport segment improved its operating income margin to 3.7% from 2.1% last year, despite a $93 million decrease in sales to $479 million [18] Market Data and Key Metrics Changes - Market conditions for access equipment in North America were in line with expectations, with sales volume in Europe lower, partially offset by sales at IUSA [17] - The company noted a return to normative levels in the book-to-bill ratio, indicating a stable demand environment [42] Company Strategy and Development Direction - The company aims for a compound annual revenue growth rate of 7% to 10% and transformative margin expansion of 200 to 400 basis points by 2028 [8] - The strategy focuses on accelerated innovation in autonomy, electrification, and intelligent connected products, supported by favorable long-term trends [5] - The company is committed to executing its strategies despite uncertainties introduced by tariffs, believing that industry-leading businesses will provide long-term growth opportunities [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to offset tariff impacts through mitigation strategies and local production [36] - The company anticipates a more limited impact from tariffs compared to the previous quarter and expects adjusted EPS for the year to be in the range of $11 per share on revenues of approximately $10.6 billion [20] - Management highlighted strong demand from infrastructure spending and data centers, which are expected to drive future growth [45][100] Other Important Information - The company has increased its outlook for free cash flow from a range of $300 million to $400 million to a range of $400 million to $500 million, reflecting improved operating performance [20] - The company stepped up share repurchases, buying back nearly 415,000 shares for about $40 million in the quarter [17] Q&A Session Summary Question: Access segment margin expectations for the second half - Management indicated that the second half results would reflect seasonality and expected some impact from tariffs in the fourth quarter, with pricing adjustments being implemented [26][30] Question: Clarification on tariff commentary - Management acknowledged ongoing tariff headwinds but expressed confidence in their mitigation strategies and local production advantages [36] Question: Expectations for orders in the second half - Management noted a healthy backlog and expected to continue booking orders in the third and fourth quarters, which is typical for this time of year [52] Question: Vocational segment performance and backlog - Management confirmed that the strong performance in the vocational segment is expected to continue, driven by increased capacity and demand for advanced technology [64] Question: Capital allocation and share buybacks - Management outlined priorities for capital allocation, emphasizing maintaining a strong balance sheet, organic growth, and share repurchases, even at current stock price levels [90]
中国重器引领全球!自行式模块运输车只租不卖,年赚300亿
Sou Hu Cai Jing· 2025-07-19 11:03
Group 1 - The core viewpoint of the article highlights the significant advancements in China's heavy transport equipment, particularly the development of self-propelled modular transporters (SPMTs), which have transformed the industrial transport landscape in China [1][3][9] - In 2006, a critical incident involving a coastal shipyard's inability to rent an SPMT led to a six-month delay in transporting a 5,000-ton ship component, resulting in economic losses of several hundred million yuan, underscoring the need for domestic innovation in heavy transport equipment [1][3] - In 2007, China initiated the independent research and development of SPMTs, overcoming technological barriers and market monopolies, with a collaborative effort led by China Aerospace Science and Industry Corporation and various research institutions [3][4] Group 2 - The first domestically produced SPMT successfully operated in 2009, capable of transporting 1,000 tons, marking a significant breakthrough in China's heavy transport sector [3][4] - By 2012, the second generation of SPMTs was developed, featuring a load capacity of 10,000 tons and improved adaptability to complex terrains, further enhancing China's industrial capabilities [3][4] - The third generation of SPMTs was unveiled in 2020, boasting 1,152 tires and a total load capacity of 50,000 tons, demonstrating superior performance compared to German counterparts in terms of load capacity, control precision, and safety [4][6] Group 3 - The commercial strategy for SPMTs in China involves a "rent-only" model, with all five existing third-generation SPMTs held by Chinese companies, maximizing economic benefits while protecting core technologies [6][9] - Chinese SPMTs have gained international recognition, successfully transporting components for major projects across various regions, including the Middle East, Indonesia, Africa, and the United States, showcasing their reliability and performance [6][9] - The development of SPMTs represents a significant shift from reliance on foreign technology to leading the global market, contributing to China's industrial rise and revitalizing global heavy transport technology [9]
配套动力电池PACK厂 浙江55亿项目开工
鑫椤锂电· 2025-06-05 08:12
Core Viewpoint - The Zhejiang Dongzhong Special Vehicles Project in Haining, Zhejiang Province, represents a significant investment in the production of new energy heavy trucks and mining vehicles, aiming to address industry challenges related to high energy consumption and emissions [1] Group 1: Project Overview - The total investment for the Zhejiang Dongzhong Special Vehicles Project is 5.5 billion yuan, covering an area of approximately 358 acres with a total construction area of about 153,000 square meters [1] - The project will have an annual production capacity of 3,500 new energy heavy trucks and 1,200 non-road wide-body dump trucks [1] - It will also include the establishment of a power battery PACK factory, an electric drive system R&D center, and an intelligent connected testing platform [1] Group 2: Economic Impact - Upon reaching full production capacity, the project is expected to directly drive over 30 upstream and downstream industry chain enterprises, forming a 10 billion yuan industrial cluster and creating 20,000 high-quality jobs [1] - The new generation of pure electric mining trucks will have a load capacity of 260 tons and can operate for 10 hours on a one-hour charge [1] Group 3: Environmental and Economic Benefits - Compared to similar diesel models, the lifecycle operating costs of the new electric mining trucks are reduced by 45%, and carbon emissions are decreased by 80% [1] - The products are set to be first applied in large open-pit mines in Inner Mongolia and Shanxi, with a market share expected to exceed 20% in the next three years [1]
REV Group(REVG) - 2025 Q2 - Earnings Call Transcript
2025-06-04 15:02
Financial Data and Key Metrics Changes - Consolidated net sales for Q2 2025 were $629.1 million, an increase of $45.1 million or 7.7% compared to Q2 2024, excluding the impact of the divested E and C transit bus business [26][27] - Adjusted EBITDA for Q2 2025 was $58.9 million, a 63.6% increase year over year, excluding the impact of the divested bus business [27][29] - Cash flow from operating activities in the quarter was $117 million, with $11.4 million spent on capital expenditures [41][22] Business Line Data and Key Metrics Changes - Specialty Vehicles segment sales increased by $16.5 million to $453.9 million, with a 12.2% increase when excluding the divested transit bus business [29][30] - Recreational Vehicle segment sales decreased by $4.4 million or 2.4% due to lower unit shipments amid soft market demand [34][35] - Specialty Vehicles segment adjusted EBITDA increased by $24 million or 74.3% year over year, driven by higher sales and manufacturing efficiencies [30][31] Market Data and Key Metrics Changes - Specialty Vehicles segment backlog at the end of the quarter was $4.3 billion, reflecting strong demand for fire apparatus [31] - Recreational Vehicle segment backlog declined by 2% to $268 million, attributed to soft end market demand [37] - REV brand retail sales decreased by 10% year over year, compared to a 13% decline in the broader industry [35] Company Strategy and Development Direction - The company is focusing on operational excellence, investing in people and equipment, and product innovation to drive sustainable growth [10][23] - A strategic decision was made to exit the non-motorized travel trailer and truck camper product categories to concentrate on scalable operations with stronger competitive positioning [18][19] - The company is increasing capital expenditure plans to enhance throughput and efficiency across its operations [23][42] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating tariff impacts and maintaining updated financial guidance for the year [13][42] - The company anticipates continued growth in the Specialty Vehicles segment, with mid-teens revenue growth expected for the second half of the fiscal year [33][42] - Management noted that demand for fire and ambulance products is returning to long-term trend levels, with expectations for normalized order levels in the back half of the year [64] Other Important Information - The company repurchased approximately 2.9 million shares for $88 million under its share repurchase authorization [22][41] - A non-cash loss of $30 million was recognized related to the Lance Camper assets held for sale, partially offset by a $16.6 million income tax benefit [36][43] - The company maintains ample liquidity with approximately $263.2 million available under its ABL revolving credit facility [41][44] Q&A Session Summary Question: What is the timeframe for tariff impacts on the backlog and output? - Management expects the RV tariff impact to primarily affect the back half of fiscal 2025, with some potential carryover into early 2026 [47][48] Question: What is the expected return on the $20 million investment in the Brandon facility? - Management indicated that the investment aims to reduce lead times and increase throughput, but specific return metrics were not disclosed [49][50] Question: How does the sale of Lance impact long-term EBITDA goals? - Management clarified that Lance represents less than 10% of total sales for recreation, thus having no material impact on long-term EBITDA targets [51][52] Question: Will dealer assistance continue to increase in the second half? - Management expects a softer second half for recreation sales, influenced by tariffs and consumer confidence risks, but did not specify on dealer assistance trends [57][58] Question: What is the demand outlook for the S-one 80 program? - Demand for the S-one 80 program remains strong, with orders increasing across various brands [62][63] Question: What is the current state of wholesale versus retail demand in recreational vehicles? - Retail shipments showed early signs of improvement, while dealer inventories are healthier, which should drive better wholesale orders [70][72]
Here's What Key Metrics Tell Us About Oshkosh (OSK) Q1 Earnings
ZACKS· 2025-04-30 14:36
Core Viewpoint - Oshkosh reported a decline in revenue and earnings for the quarter ended March 2025, indicating potential challenges in its financial performance [1][3]. Financial Performance - Revenue for the quarter was $2.31 billion, down 9.1% year-over-year, and below the Zacks Consensus Estimate of $2.41 billion by 4.17% [1]. - Earnings per share (EPS) were $1.92, a decrease from $2.89 in the same quarter last year, and also fell short of the consensus estimate of $2.02 by 4.95% [1]. Key Metrics - Net Sales- Access- Total: $957.10 million, down 22.7% year-over-year, and below the average estimate of $992.50 million [4]. - Net Sales- Access- Aerial work platforms: $450.80 million, a decline of 23.7% compared to the previous year, and below the estimate of $470.40 million [4]. - Net Sales- Access- Telehandlers: $244.50 million, down 34.5% year-over-year, and below the average estimate of $298.36 million [4]. - Net Sales- Defense: $463 million, down 13.8% year-over-year, and below the estimate of $519.18 million [4]. - Net Sales- Vocational- Total: $866.80 million, a 12.2% increase year-over-year, but slightly below the estimate of $873.40 million [4]. Operating Income - Adjusted Vocational segment operating income was $128.80 million, exceeding the average estimate of $118.12 million [4]. - Adjusted Access segment operating income was $107.80 million, below the estimate of $116.23 million [4]. - Operating income for Defense was $0.60 million, significantly lower than the average estimate of $14.12 million [4]. Stock Performance - Oshkosh shares have returned -6.1% over the past month, underperforming the Zacks S&P 500 composite, which changed by -0.2% [3]. - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance in the near term [3].
Oshkosh (OSK) - 2025 Q1 - Earnings Call Transcript
2025-04-30 13:30
Financial Data and Key Metrics Changes - The company reported revenue of $2.3 billion for the first quarter, a decrease of $231 million or 9% from the same quarter last year, primarily due to softer market conditions for access equipment in North America [19] - Adjusted operating income was $192 million, representing 8.3% of sales, down from the prior year due to lower sales volume and higher operating expenses [19] - Adjusted EPS was $1.92, in line with expectations of approximately $2 per share [19][20] - Free cash flow reflected a net use of cash of $435 million due to seasonal working capital needs [20] Business Line Data and Key Metrics Changes Access Segment - Adjusted operating margin was 11.3% despite lower sales, with a strong backlog of $1.8 billion [9] - The segment booked orders of $930 million with a book-to-bill ratio of 1.0, indicating stable demand [9] Vocational Segment - Achieved year-over-year revenue growth of 12% with a robust adjusted operating income margin of nearly 15% [11] - Backlog remains strong at $6.3 billion, providing excellent visibility for future revenue [12] Defense Segment - First quarter results reflected lower volume but progress on the production ramp-up for the NGDV program [15] - The company is on target to increase NGDV volume to full-rate production by year-end, which is expected to drive revenue growth in the latter half of 2025 [15] Market Data and Key Metrics Changes - The backlog for the Access segment remained stable at $1.8 billion, indicating healthy demand despite market challenges [9] - The vocational segment is benefiting from strong demand in refuse and recycling vehicle sales, supported by technological advancements [12][71] Company Strategy and Development Direction - The company is focused on mitigating tariff impacts through a broad U.S. production footprint and proactive supply chain management [6][7] - Continued investment in technology and innovation is emphasized, particularly in the vocational segment with advancements in electric fire trucks and telematics solutions [13][70] - The company maintains a strong balance sheet and is open to M&A opportunities, particularly in growth segments [60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying trajectory of operational performance across all segments, despite near-term volatility due to tariffs [6][22] - The company anticipates that the direct impact of tariffs could be about $1 per share, with efforts to mitigate this through cost actions [20][22] - Customer sentiment remains balanced, with healthy demand in various end markets, particularly in infrastructure projects [50][67] Other Important Information - The company is planning an Investor Day on June 5, 2025, to share future plans and insights from key leaders [4] - The defense business is undergoing a leadership transition, with a new segment leader expected to be announced later this year [18] Q&A Session Summary Question: How is the company addressing tariffs? - Management aims to minimize the impact of tariffs on customers, leveraging pricing power while focusing on targeted mitigation strategies [28][30] Question: What are the cost headwinds related to tariffs? - The most significant impacts are expected in the Access segment, with mitigation efforts being broad-based across the company [38][44] Question: How is the defense segment expected to perform? - The defense segment is projected to ramp up production, with expectations of strong revenue growth in the latter half of 2025 [40][41] Question: What is the outlook for the vocational segment? - The vocational segment is expected to maintain strong margins and continue benefiting from technological advancements and a robust backlog [69][70] Question: How is customer sentiment regarding tariffs? - Customers maintain a balanced view, with healthy demand reflected in the strong backlog for the Access segment [50][68]