Please note this event is being recorded. I would now like to turn the conference over to Greg Peterson, AGCO Head of Investor Relations. Please go ahead. Thanks, and good morning. Welcome to those of you joining us for AGCO's first quarter 2025 earnings call. We will refer to a slide presentation this morning that's posted to our website at www.agcocorp.com. The non-GAAP measures used in the slide presentation are reconciled to GAAP measures in the appendix of that presentation. We will make forward-looking statements this morning, including statements about our strategic plans and initiatives, as well as their financial impacts. We'll discuss demand, product development, and capital expenditure plans, and timing of those plans, and our expectations concerning the costs and benefits of those plans and the timing of those benefits. We'll also cover revenue, crop production, and farm income, production levels, price levels, margins, earnings, operating income, cash flow, engineering expense, tax rates, and other financial metrics. All of these are subject to risks that could cause actual results to differ materially from those suggested by the statements. These risks include, but are not limited to, adverse developments in the agricultural industry, supply chain disruption, inflation, tariffs, weather, commodity prices, changes in product demand, the possible failure to develop new and improved products on time, including premium technology and smart farming solutions within budget and with the expected performance and price benefits, difficulties in integrating the PTx Trimble business in a manner that would produce the expected financial results, introduction of new or improved products by our competitors, and reductions in pricing by them, the war in Ukraine, difficulties in integrating acquired businesses and in completing expansion and modernization plans on time and in a manner that produces the expected financial results, and adverse changes in the financial and foreign exchange markets. Actual results could differ materially from those suggested in these statements. Further information concerning these and other risks is included in AGCO's filings with the Securities and Exchange Commission, including its Form 10-K for the year ended December 31, 2024. AGCO disclaims any obligations to update any forward-looking statements except as required by law. We will make a replay of this call available on our corporate website later today. On the call with me this morning is Eric Hansotia, our Chairman, President, and Chief Executive Officer, and Damon Audia, our Senior Vice President and Chief Financial Officer. With that, Eric, please go ahead. Thanks, Greg, and good morning to everyone on the call. I'm pleased to announce AGCO delivered solid results in the first quarter in the midst of a very challenging industry and an uncertain and evolving trade environment. We achieved over $2 billion in net sales, down approximately 30% compared to quarter one 2024. The lower net sales are a result of continued soft demand in the AgM arket, coupled with our efforts to destock dealer inventories, as well as the impact of the divestiture of the Grain & Protein business. Excluding last year's Grain & Protein results, sales declined by about 25%. Consolidated operating margins were 2.4% on a reported basis and 4.1% on an adjusted basis, reflecting decremental margins in the low to mid-20% range. This reflects the strong performance from our teams around the world. They are executing on our sales plans as well as on the restructuring actions. We achieved these decremental margins despite a 33% reduction in production hours versus quarter one 2024, as we look to better align dealer inventories. We've made headway lowering both working capital and dealer inventories, which were down across all regions. Our working capital progress showed up in our cash usage for the quarter, which was significantly improved compared to the first quarter of 2024. Sentiment in Europe, as measured by the CEMA index, is on an upward trend. Europe currently represents the majority of AGCO's sales and should help mitigate the adverse impact of the U.S. trade policy on our financials. Geopolitical uncertainties and trade friction have dampened U.S. farmer sentiment recently, and as a result, demand for machinery was lower in the quarter than we had expected. Despite higher net farm income forecasts related to government aid, margins for U.S. farmers remain tight due to high input costs and reduced export demand. On the flip side, South American farmers are expected to expand global share in key commodities over the next year due to trade policies. Our top priority during the geopolitical uncertainty is to take care of our farmers. We want to be there to help them be more productive and more profitable by leveraging our industry-leading solutions. We will continue to monitor the rapidly changing tariff policies and implement pricing actions or supply chain adjustments where it makes sense and is feasible. AGCO continues to focus on its three high-margin growth levers by investing in key strategic markets and products, including smart farming solutions and enhanced digital capabilities to help deliver more resilient and higher earnings across the Ag cycle. Our financials continue to be weighted toward the second half of the year as we expect the market to find bottom and start recovering along with optimizing dealer inventories. Slide four details industry unit retail sales by region for quarter one 2025. Global industry retail sales of farm equipment remain challenged in North America and Europe, with some early signs of recovery in Brazil. In Western Europe, industry retail tractor sales decreased 17% during the first three months of 2025 compared to the first three months of 2024. You'll recall that last year at this time, we were still seeing relatively strong demand. Industry demand is expected to remain soft in 2025 as lower income levels pressure demand from arable farmers, while healthy demand from dairy and livestock producers is expected to mitigate some of the decline. North America industry retail sales decreased 14% during the first three months compared to the first three months of 2024. Sales declines are relatively consistent across the horsepower categories, with higher horsepower categories declining more in recent months. Combine unit sales were down 46% compared to the same period in 2024. Uncertain demand for grain exports and higher input costs are expected to pressure industry demand in 2025, leading to weaker North American sales compared to 2024, particularly in large equipment. Brazil industry retail sales increased 11% during the first three months of 2025 compared to the first three months of 2024, primarily in the smaller tractor categories. While the U.S. may face reduced market access for key exports, Brazil is likely to ship more to China, which should help the industry recover faster. Despite record soybean harvests and potential trade benefits, we haven't seen meaningful improved demand for larger equipment yet. If increased trade benefits farm economics, we could see improved demand later this year. For now, we expect industry demand in Brazil to improve modestly in 2025. Regardless of the near-term trade environment, AGCO will benefit from the long-term growth of the agricultural equipment segment, thanks to market expansion stemming from population growth and a middle class with diets that consist of greater amounts of protein. Our tech stack has been evolving significantly over the past few years and allows us to provide farmers with the differentiated Precision Ag solutions needed to raise yields and meet the world's growing agricultural needs. AGCO's factory production hours are shown on slide five. To improve comparability, we have eliminated grain and protein production hours from the 2024 hours shown here. Significant production cuts were made in all regions in quarter one 2025, with the biggest reductions occurring in North and South America. Our production hours were down approximately 33% in quarter one 2025 versus quarter one 2024. We remain laser-focused on reducing dealer inventories as quickly as possible in 2025, given the current soft demand environment and elevated dealer inventory levels. As I mentioned earlier, we have made progress in destocking the dealer channel in the first quarter, but still have work to do, primarily in North America and South America. We are projecting 2025 production hours between 15%-20% lower than 2024, with the North America region showing the biggest decline. Our plan remains front-loaded and aggressive to get inventory right size quickly. Our current outlook for 2025 assumes production in North America and South America will be less than retail demand. Diving into regional breakdown, in Europe, dealer inventory reduced modestly to just under four months, which is in line with our target. Fendt is still below this average, and Massey Ferguson and Valtra are slightly above. Our near-target dealer inventory level in Europe remains a positive for AGCO, given significant exposure to this region. In South America, we reduced the number of units on hand at dealers by 7% from the quarter four 2024 level, reducing the months of supply from around five months to approximately four. Given the forward outlook, this is still above our targeted level of three months. We still anticipate to underproduce relative to retail demand in the second quarter to further reduce dealer inventory levels. Similarly, in North America, we further reduced the units on hand at dealers by approximately 1% in total from quarter four 2024 levels. This is still approximately eight and a half months of supply versus our six-month target. However, this modest change is reflective of good momentum in Large Ag, who reduced inventory by around two months and around 7% on a unit basis. This solid progress was offset by the normal seasonal position for Small Ag equipment entering the peak selling season for dealers. Given the continued challenging outlook in 2025, we currently expect to underproduce to retail demand into the third quarter. Moving to slide six, where you'll see our three high-margin growth levers aimed at improving our mid-cycle operating margins to our new target of 14%-15% by 2029 and outgrowing the industry by 4%-5% annually. This demonstrates we are a much stronger company that has less variability throughout the business cycle, higher mid-cycle, but also higher highs and higher lows. To reiterate our 2029 growth lever targets, we discussed at our analyst meeting last December. Number one, the globalization and full-line product rollout of our Fendt brand, where we now expect North and South America Fendt revenues to reach $1.7 billion. Number two, growing our Precision Ag sales to $2 billion globally. Number three, focusing on accelerating our global parts business and increasing the market share of genuine AGCO parts to achieve approximately $2.3 billion in global sales. AGCO's continued strong investment in R&D has been recognized by numerous global organizations with awards and illustrates how we innovate to put farmers first. On slide seven, you'll see a few of the products that have won prestigious awards recently, each aimed to help farmers improve their profitability through lower costs or increased yields, while also focusing on the ease of use and operator comfort. The first is our PTx Trimble Outrun Retrofit Autonomy Kit, which was awarded the esteemed Davidson Prize for the absolute most innovative products of the year. Outrun is the first commercially available autonomous retrofit grain cart solution on the market and is recognized for its ability to help farmers maximize yield and combat the labor shortage many farmers are facing around the world. This is just the first of several retrofit autonomous solutions being developed by the PTx team. The Valtra S Series, which was the brand's flagship product, has won three major design awards in just a few months since launch: a Good Design Award, an iF Design Award, and now the prestigious Red Dot Award for product design. This hat trick has never before been achieved by any tractor brand. Red Dot judges were so impressed with the S series design and attention to user experience that they awarded the tractor the Red Dot Best of the Best Award. This special recognition is the highest distinction in the competition and is only awarded to the truly pioneering designs. Finally, the Massey Ferguson 5M Series tractor was awarded with its own Red Dot Award for product design. This affordable and versatile tractor was recognized by judges for its straightforward and accessible features, high performance and efficiency, with the best value for price. I want to take a moment to thank the teams that earned these awards, helping AGCO deliver on our vision of being farmers' trusted partner for industry-leading smart farming solutions. Now I'll hand it over to Damon to walk you through some of the financials for the quarter. Thank you, Eric, and good morning, everyone. Slide eight provides an overview of regional net sales performance for the first quarter. Net sales were down approximately 25% in the first quarter compared to the first quarter of 2024, when excluding the negative effect of currency translation and the positive impact of acquisitions. For comparison purposes, the impact of the divestiture of the grain and protein business, which was approximately $200 million in Q1 of 2024, has also been excluded. Pricing in the quarter was roughly flat compared to the first quarter of 2024. Positive pricing in North America mostly offset negative pricing in South America and in Europe. By region, the Europe-Middle East segment reported sales down roughly 23% in the quarter compared to the strong results in the same period in 2024, excluding the impact of unfavorable currency translation and favorable impact of acquisitions. Sales were lower across most of the Western European markets, partially offset by growth in Spain and Eastern Europe. The products showing the most significant declines were high horsepower and mid-range tractors, as well as hay equipment. South American net sales decreased approximately 6%, excluding the impact of unfavorable currency translation and the favorable impact of acquisitions. The market for larger equipment continues to be challenged, and we continue to underproduce relative to retail demand. Lower sales of high horsepower tractors and planters accounted for most of the decline. Net sales in the North American region decreased approximately 34%, excluding the impact of unfavorable currency translation and the favorable impacts of acquisitions. Softer industry sales and underproduction relative to end market demand contributed to lower sales. High horsepower tractors, sprayers, and combines saw the largest declines. Net sales in Asia-Pacific Africa decreased 38%, excluding the favorable currency translation impacts and the favorable impact of acquisitions, due to weaker end market demand and lower production volumes. The most significant declines occurred in Australia, Japan, and China. Finally, consolidated replacement parts sales were approximately $433 million for the first quarter, flat year-over-year on a reported basis and up approximately 3% year-over-year when excluding the effect of unfavorable currency translation. Turning to slide nine, the first quarter adjusted operating margin was 4.1%, a decline of 550 basis points compared to the first quarter of 2024. The weak industry conditions are resulting in significantly higher costs related to factory underabsorption and higher discounts. By region, the Europe-Middle East segment income from operations decreased by $141 million, and operating margins decreased to just over 11%. The lower margins resulted from reduced sales volume, factory underabsorption, and increased discounts. North American income from operations in the quarter decreased approximately $48 million year-over-year, and operating margins were negative in the first quarter. Lower sales from weak market conditions and lower production hours were the primary drivers for the lower operating margins year-over-year. Operating income in South America decreased by approximately $10 million in Q1 of 2025 versus Q1 of 2024, and operating margins remained positive in the quarter at roughly 1%. Market conditions in the region have continued to remain weak, and we have reacted with significant production cuts now for six consecutive quarters. Income from operations in our Asia-Pacific Africa segment decreased by approximately $12 million due to the lower sales volumes. Slide 10 shows our year-over-year free cash flow. As a reminder, free cash flow represents cash used in or provided by operating activities less purchases of property, plant, and equipment. Free cash flow conversion is defined as free cash flow divided by adjusted net income. We used $260 million of cash in the first quarter of 2025, approximately $205 million or 44% less than the first quarter of 2024, primarily related to improved working capital and lower capital expenditures. For the full year, we anticipate our free cash flow to be in the targeted range of 75%-100% of adjusted net income. Our capital allocation plan includes reinvesting back into our business, repaying debt to maintain our investment-grade credit ratings, and rewarding investors with direct returns with our regular quarterly dividend of $0.29 per share. We remain focused on deploying capital in the most effective ways for the benefits of our shareholders. Slide 11 highlights our current 2025 market forecast for our three major regions. All three regions have changed modestly from what we communicated on our fourth quarter call. For North America, we expect demand to be meaningfully lower in 2025 compared to 2024. Despite net farm income forecasts revising higher related to government aid, farmers are delaying equipment purchases due to still elevated input costs and uncertain export demand causing tighter profit margins. We now expect the large AG segment to be down around 25%-30% versus 2024, which is a marginal deterioration from our prior forecast. The small tractor segment is expected to be down between 0%-5% after several years of significant decline. For Western Europe, we expect the industry to be down approximately 5% compared to our prior forecast of down 0%-5%. Wheat production has been negatively impacted by persistent rain and poor growing conditions. Decreased commodity prices and elevated input costs are also pressuring farm income. For Brazil, after the significant decline we saw in 2024, we now expect the market to be up 0%-5% versus our prior forecast of the industry being flat year-over-year. Farmer optimism around healthy soybean yields in the Midwest and the expectation for farmers to expand global share in key commodities due to trade policies is expected to support retail demand for tractors. Slide 12 shows our primary assumptions used in our current 2025 outlook. We continue to anticipate the 2025 global industry demand to be approximately 85% of mid-cycle. Our sales plan includes market share gains and pricing in the 1% range, which is up from the flat to 1% range communicated on our fourth quarter call. Additionally, based on the weakening of the US dollar, our expectation now is for no foreign currency impact in 2025 versus 2024, which has been revised up from the 3% foreign currency headwind we had communicated previously. Tariffs are creating significant demand uncertainty and increased costs for us. Our current full-year guidance takes into consideration only the tariffs currently in effect across the company's global markets and our anticipated plans to mitigate them through potential pricing actions or cost mitigation actions. That said, the potential for retaliatory measures or additional US tariffs, particularly targeting the EU, could influence our current outlook. We're closely monitoring these developments and remain nimble in our approach. We will update our outlook if necessary as the situation evolves. Engineering expenses are expected to be approximately flat compared to 2024. With the continued need to destock the dealer inventory channel, our production hours will be down 15%-20% in 2025, as Eric mentioned earlier. These production cuts will be primarily focused in the first half of 2025, with the second quarter down 15%-20%. With this lower level of sales and production in 2025, and despite geopolitical trade conflicts, we still expect our adjusted operating margin to be between 7% and 7.5%. With the structural changes we have made to our business, coupled with the cost initiatives we've implemented, we continue to view this outlook as achievable. We are still projecting 2025 to be the bottom of the trough. Our current adjusted operating margins projection is approximately 300-350 basis points above AGCO's performance at the last trough in 2016 due to the structural transformation that has been implemented across the company. Lastly, our effective tax rate is now anticipated to be approximately 35% for 2025, which is at the lower end of the 30%-35% range previously communicated. Turning to slide 13 for our 2025 outlook, our projected net sales, capital spending, and free cash flow targets remain unchanged from those communicated at the start of the year. Our full-year net sales outlook is $9.6 billion, which reflects the market environment, the weaker US dollar, the elimination of the grain and protein sales, and the softer demand resulting from the announced tariffs across the company's global markets net of our planned mitigation actions. Our 2025 earnings per share remain in the $4-$4.50 range. These full-year estimates reflect the projected impact of tariffs in place as of May 1, 2025, along with our planned mitigation actions. Changes to the tariffs or other actions in response to them could result in a change to these estimates. Given the weaker market environment, our estimated CapEx spending continues to be approximately $375 million versus the $393 million in 2024, which keeps AGCO well-positioned for any future demand inflections. Our free cash flow conversion target remains 75%-100% of adjusted net income as we look to further reduce working capital in 2025. Lastly, our Q2 2025 net sales are expected to be approximately $2.5 billion. If you were to exclude grain and protein sales from Q2 2024, our sales will be down roughly 17% on a like-for-like basis. Given the lower sales volumes and significant reduction in production hours again, we anticipate Q2 earnings per share to be in the $1-$1.10 range. On slide 14, you can see the details of our 2025 Tech Days in October of Germany, where we will provide a Fendt factory tour and product experience on September 30, followed by field demonstrations on October 1. We hope you will join us, and we look forward to seeing you there. With that, I will turn the call over to the operator to begin the Q&A. We will now begin the question and answer session. To ask a question, you may press star then one on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two. Please limit yourself to one question and one follow-up. The first question comes from Jamie Cook with Truist. Please go ahead. Hi, good morning. I guess my first question, the first quarter came in better than you guys had expected. I think you were guiding to break even and on an adjusted basis you came in at $0.41. So Damon, just any color on where you performed better versus what you would have thought? I guess my second question, just a little more color on tariffs and the actions you're taking to mitigate tariffs, I guess. One, can you talk to your order book? Is there any risk in your order book associated with tariffs, sort of the price increases that you're talking about and actions you're taking? I do not know if you can put a dollar amount on that because it is impressive you are still maintaining your guide. Thank you. Yeah, sure, Jamie. You're right, we did do better in the first quarter than what we had originally expected. I think there's probably two items or two different categories. I think at the operational side of the house, the teams did a little bit better in pricing, and mix was stronger, especially in our European operations. As you heard us talk last year about our cost control actions, we're starting to see those were a little bit ahead of schedule in what we dropped to the bottom line. I think price, mix, and cost were all a little bit better. We did cut production a little bit more in the quarter than what we had originally guided to, so that was a little bit of a net negative of a headwind. When I look at those categories operationally, I'd say that was about $0.25 of a positive versus our outlook. We did better below the line. If you look at the foreign currency gain and losses, we had some lower discounting of receivables. Those other below-the-line items were about $0.20, and that's what brought us to the $0.41 for the quarter. As we think about your question on tariffs, as we've said, we are looking at what is in effect today. We have assumed some modest price increases. We have already had some in effect for our parts operations or parts products, excuse me. Those have already been in effect. We are contemplating things on equipment. In that, though, we have also assumed that to the extent we do take pricing actions, there would be an incremental slowdown to the North American business. We've not factored that into our industry outlook as we're not sure whether that would be unique to AGCO or whether that would affect the industry. When we look at those two things together, we see the price net of the lower North American volume as a net negative on sales. I would say it's about less than 1% of total company revenues, and it's a negative to earnings per share. If I look at that, that's about a $0.30 headwind related to our business here in our current outlook that we've embedded in our outlook. Order boards, as you know, order boards have been coming down as we came out of the supply chain challenges. Right now, as we sit here in North America, we're somewhere in the range of four to five months of orders depending on the product. Again, any actions will likely have an effect on pricing later on in the year given the current order board that we see. Other actions we're taking on tariffs, again, we talked about potentially implementing some prices for equipment. We already have prices in effect for parts. As I've mentioned on other calls, we are looking to mitigate some of these costs where possible. Some of the products that we've brought in from Europe, we're looking at things like bonded warehouses now to minimize the price effects of what would happen in Canada. Obviously, we're having active discussions with our suppliers as to how do we help mitigate the costs we have to absorb in actions that they can take to try to dampen the overall impact to AGCO. I think, like most large industrials, we're pulling every lever out there. We're working with advisors as what they may be hearing and seeing others doing to make sure that we're looking at all of these different options to mitigate the cost given the dynamic situation we're in right now. Thank you. The next question comes from Kyle Menges with Citigroup. Please go ahead. Thank you. I know, Damon, you called out just the EME margins particularly strong in the quarter, at least partly driven by mix. I guess the question is really just around the sustainability of the EME margins and just how do we think about the risks of a potential mix shift from Fendt to maybe the other brands and just how to think about the mixed impacts on EME margins, how to think about that for the rest of the year and then maybe in the kind of medium term. Yeah, I think overall, Kyle, the European market, again, reminding for the group, is the most stable of all of our three major markets. Given the level of subsidies in that market, it's historically been the most stable and predictable. That part of the world, at least thus far, has been relatively solid for us. If you think about what we've been seeing here, there's somewhat of a sense of a flight to quality as farmers are on the fringes who are less profitable. Think about them likely buying more of our volume-orientated brands. Fendt has continued to do well in gaining significant market share over the last one year. Fendt has done exceptionally well in gaining share, whether that's through some of the new product introductions or some of the next-generation products. The portfolio of new products coming out for Fendt is still pretty rich as we look over the next couple of years. You have heard us say this before, but Fendt is the best of the best. It is driving the latest innovation, the best fuel efficiency out there. As farmers are really challenged on their profitability, they are looking for ways to minimize their input cost, maximize their output and their yield, and Fendt delivers on that in the products that they are offering. I do not see necessarily Fendt eroding in exchange for another product or another brand. What you may see is if the economy recovers and some of these more volume-orientated brands start to outpace in a recovery mode, it may have a little bit of effect, but I do not see that changing the overall EME margins significantly from what you have been seeing us perform over the last couple of quarters. That is helpful. Thank you. I think it would also be helpful just to get some sense of what Trimble top line and margins look like in the quarter, like where margins are possible or positive. Just how should we be thinking about as you start lapping that CNH dealer stock up that we saw? What are you seeing now in terms of the dealer inventories and order trends from those dealers? Yeah. I'll touch on maybe the numbers, and I'll let Eric talk about what he's seeing specifically related to some of the dealers and the products here. If you remember, we did not have PTx Trimble in the portfolio here in the first quarter. For our overall PTx revenue, that's incremental. Sales for that part of the business were just over $60 million in the quarter. If you remember what Trimble would have announced, it was a little bit over $80 million. That did include AGCO-related sales. Down a little bit, not too different than the overall industry. Very much in line. We're feeling pretty good about what we're seeing relative to the industry dynamics. Eric can talk about what we're seeing with the CNH channel and some of the other AGCO dealer channels that we're bringing on board right now. Yeah. The main focus we've got is establishing the channel of the future. That's ramping up our AGCO dealers to also take on the PTx contract. From where we were at the end of 2024 till today, we've about tripled the amount of industry coverage that we've got covered by AGCO dealers that also carry PTx. We expect that the bulk of that work to be done by the end of the second quarter, we'll have most of the large-sized dealers signed up. That channel is our most urgent to get activated, and it's underway in a good way. Second topic is utilizing Trimble technology on AGCO products. When we launched the JV a year ago, we were at about 20% take rate. We got it to about 70% take rate at the end of 2024. Now we're more like 90% take rate, which is about where we think it'll stabilize because there'll always be niches that we may still provide other brands. That's fundamentally well in place. We think that the last time buy of the CNH made just prior to the deal closing is getting closer to being exhausted. That should no longer be a headwind to the overall business. Feeling very good about first quarter acceleration of channel readiness as well as the cross-selling activity in the full-line tech channel. I talked about the AGCO dealers. Those are the machinery dealers that sell planters, sprayers, combines, and so on that also sell PTx. Then we've got this unique. We're the only ones in the industry that have a full-line tech channel, and all they sell is technology. Those are either former Trimble dealers or former Precision Planting dealers that are going to sell the full portfolio. We are working on helping those dealers be capable and proficient at cross-selling the entire line. That is taking hold this year. It will be a little bit longer runway on that because it is a little bit more complicated. We feel like we are on pace with that as well. Kyle, wrapping up on the profitability, PTx Trimble was profitable for us in the quarter, not to the levels we wanted to shed. As we have talked in the past, given the lower levels of volume and the high incrementals and decrementals there, we know we need to get volume back in. We were profitable here for the first quarter. A good start to the year with the PTx Trimble team. Maybe one more comment because I imagine there's other questions on other people's minds. I'll just say we reorganized the leadership team of the PTx business in quarter four, where we had PTx Trimble as the JV and Precision Planting along with the other tech companies that we had bought. We blended all that together, melted together into one global PTx leadership team. With that, in quarter one, we've seen a significant acceleration in the synergies, both within PTx, ideas of revenue synergies and cost synergies, as well as with PTx to AGCO. That's the other element that we were committed to getting done, and we found a nice acceleration in quarter one. Really helpful. Thank you, guys. You bet, Kyle. T he next question comes from Kristen Owen with Oppenheimer. Please go ahead. Good morning. Thank you for taking the question. I wanted to follow up on some of what Jamie touched on in her question and just make sure I understand the mechanics on the full-year guide. You have the Q1 top line in line, full year maintained, bottom line beat by $0.40, full year maintained. You have also lifted some of the outlook for price for FX. Is it fair to think that your assumptions around tariffs are something on the order of the four points that you added to the top line, that that could be a 4 percentage point headwind and similarly a 40% headwind on the bottom line? Sorry for the long-winded question there, but I just want to make sure I understand the mechanics. I do have an unrelated follow-up. Yeah. Kristen, maybe I'll do it by EPS or by earnings per share just to keep it simple for me. Our guide was $4 to $4.50. If I roll through the $0.40 beat directionally that we had in the first quarter, foreign currency is a positive for us. As we've said, we went from negative 3 to around flat. Think of that's probably directionally around a $0.40 pickup as well. We've taken the industry outlooks in North America and Europe down. Asia is also down. When I look at those industry dynamics, South America is up. That's around a $0.30 headwind for us. The net tariff impact to us. Pricing coupled with that volume comment I made earlier, that's around $0.30. Then you got some incremental negative absorption because of the industry changes. We're still in the 15-20% hours cut, but that's because we're taking the industry down and we have the assumption in North America we have some further absorption embedded in our numbers. That coupled with some other things is about another 10 cents or so. That's incredibly helpful. Thank you for that, Damon. I did want to ask, since you mentioned it in the prepared remarks, as you typically do, about your capital allocation strategy. Just given the progress with your large shareholder and their decision not to stand for reelection, I'm wondering if you can maybe update us on what potential outcomes could look like there and how that might influence your capital allocation going forward. Thank you. Yeah, I'll take that one. We feel really good about the progress we've made in discussions with TAFE. You have seen that the board seat that TAFE had is no longer in place. We have gone from 10 directors down to 9. You can kind of imagine that the overall discussions are pretty robust. We are not all the way done with them yet, but we are getting close. We recognize that investors would like us to do share buybacks. Because of that, we would like to do that as well. We have been constrained from doing them over the last several years because of that shareholder concentration. As you can imagine, that is part of our discussions. We are trying to represent that on behalf of our investors. I cannot say any specifics right now because the discussions are not done. I promise you that is certainly at the forefront of what we are trying to get accomplished. As soon as we can share it, I promise you we will. Thank you. The next question comes from Jerry Revich with Goldman Sachs. Please go ahead. Yes. Hi. Good morning, everyone. Nice quarter. Eric, I wanted to ask, if you folks look at the scenario that I'm sure you've evaluated if you were to bring Fendt production into the U.S. for the U.S. market, what would that look like for AGCO? What would the impact be on unit costs if you were to move in that direction? How long would that transition take? Can you just fill us in on that contingency plan and how you folks have evaluated it if it were to come down to it? Yeah. We've looked at that. We actually even looked at it before the tariffs. We look at it every year of our overall footprint and understand what market demand is looking like and where is the best place to produce as exchange rates move and volumes change and things like that. We have been gaining market share nicely with Fendt in North and South America. It is a natural thing that we do annually. I would say that for any of these footprint decisions, one of the things that we need to count on is a sustainable set of assumptions and that we can count on those for the long term. Right now, that environment does not exist. We have a few different scenarios of what we might do. As you can imagine, tractor production especially involves a lot of machining capability, designing the transmission and engine and powertrain particularly. A lot of the castings take a lot of machining. Machining are high-capital good items. All the major players kind of centralize those into one spot for high-horsepower production. That is for the components. To do final assembly, it is a little bit more flexible. We have options for different levels of how much vertical integration we would potentially do. We have the site selected and understanding the impact of the supply base. Right now, we are waiting until things stabilize. We do not anticipate to make any real changes in manufacturing locations in the short term. We are working with our suppliers to move component production around because that is a little bit more flexible. Final production is something that we are holding off until things stabilize further. Super. Just to shift gears, nice to hear progress about the Precision Ag reorganization and what that has meant for cross-selling. Can you just update us on your views on the legacy Trimble retrofit kit? You've got a competitor that's spoken publicly about making good headway in terms of launching that product at a lower upfront cost with subscription over time. What's the AGCO counterpoint to that offering? Are you folks in the market? Do the numbers that Damon quoted earlier include potential lower ASP but higher subscription value? Can you just talk about how you're thinking about the competitive landscape? Yeah. In fact, this week, we're launching the new, latest, and greatest guidance technology. We call it the NAV- 960. That's just the new model number. It's at Agrishow. And it's getting tremendous interest from the market down there. In fact, the overall Agrishow is very positive. We see ordering up across all of our brands, lots of interest, especially in Fendt, but across all three of our brands in South America. Coming back to the technology, we've got PTx marketing and education embedded in each of our brand booths within the show, as well as our PTx unique story. PTx is playing a very strong position in the market. We just rolled out the latest new technology. We're excited about the new 960. As it relates to pricing, we have experimented with both full price on the hardware upfront and subscription-based pricing. I think we're going to end up having a bit of a mix as it goes into the market, where depending on where we are in the world, we'll probably use different tools. It is really because we want to be the most farmer-focused company in the industry and serve those markets the way the farmers want to consume that technology. We recognize the value in subscriptions as it relates to our income statement, but we are trying to balance that with what farmers want to make sure that they are most productive in their operation. I think you will see a little bit of both. Thank you. The next question comes from Stephen Volkmann with Jefferies. Please go ahead. Hey. Good morning, guys. Damon, I am wondering if you can sort of mark us to market relative to your various cost-cut programs. What have you achieved so far? What do you expect to achieve by year-end? Any changes in that outlook? No changes, Steve. I think we are on very good pace. I think at the end of the first quarter, we've expensed somewhere in the range of around $160 million. And if you remember, our guide was somewhere in the range of $150 million-$200 million in total cost. So we're getting through the bulk of that is past us here. Savings-wise, our guide was $100 million-$125 million. I feel very confident that we will be exiting the year here at that level. Great. It's been a top priority for our whole leadership team. All last year and into this year, we just had two and a half days working on that. We've got a very detailed management approach to this, a whole working tool that tracks every project by date, by location. It's not a hope. It's a very detailed and well-managed program to deliver on that. I would say that we also announced that you remember at the December Investor Day, we announced another $75 million of cost opportunities we saw that we thought we could materialize by end of 2026. Given the environment we're in right now, probably no surprise to you, we are, as Eric said, working with our teams around the world in where our areas to potentially accelerate those cost-out opportunities, trying to enhance that $100-$125 million of run rate savings we have with the original restructuring. Nothing to add incremental right now, but I would say, as Eric said, it's top priority of this team around the world looking for ways to pull that in where appropriate. Super. Thank you for that. I guess as I think forward, I think, Damon, you said you're still looking at 2025 as kind of the trough of the cycle. I guess just based on all this cost stuff, there should not be any real reason that we would not factor in potentially meaningfully higher incremental margins once we start turning back up again, or is there some offset you would like us to keep in mind? No. I mean, again, I think as we look at the structural costs that we are taking out, if you look at our decrementals this quarter, we were actually slightly positive to our normal, call it around 30%. And part of that is the cost-savings actions that are dropping to the bottom line. I think, obviously, as you start to go into an upswing in the market, Steve, there is some variable cost that comes in. Things like variable comp hopefully get to go to become a headwind for us. I think overall, we would feel that we have structurally changed the profitability of this business through the cost actions coupled with the primary growth engines Eric talked about. Hopefully, the incrementals will be above our normal. Let's get to that point in the conversation when the industry's recovering, and we can dig deeper at that point in time. Got it. Thank you. The next question comes from Tami Zakaria with JPMorgan. Please go ahead. Hey. Good morning. Thank you so much. My first question is on Fendt. If there's import on tariffs from the EU starting in July, what's your plan regarding the Fendt brand? My understanding is it's a premium-priced product already. Would you consider raising prices, or would you absorb the cost initially to not drive any price escalation in an already weak market? Yeah. Let me talk about tariff strategies. It applies to Fendt or any other product that we bring in. Just because one product from one country gets a tariff, that does not mean you can put all of that load on that one product coming from that one country. It gets that machine out of whack in the marketplace. Instead, we are looking at it more strategically and saying, "What are the total costs the company is incurring across all components and all machines that we export to a new market?" Then evaluating, "What can we do about that cost?" That is why we are so aggressive at taking cost out of the core of the company. That allows us a little bit more breathing room to be able to manage through that. Number two, how much can our suppliers, either by us resourcing or working with them to take cost out, how much can we absorb in our supply base? When we're all done, it's probably going to be a bit of a more broad-based pricing strategy versus the one model that originated the cost increase. That is because you need to keep your overall portfolio essentially in line with the market. All of the models within a given brand, but also from one brand to the next, you want to keep them matched with the value proposition that they deliver and the position they have in the market. It would be more likely spread across the overall portfolio versus the models that originated the issue. That's very helpful. That's all I had for today. Thank you. The next question comes from Steven Fisher with UBS. Please go ahead. Thanks. Good morning. I just wanted to follow up on the $0.30 of the tariff impact. Just clarify from a flow perspective, what are the tariffs that is really driving that? Is that Europe to U.S.? Is it China? Where does that all come from? Yeah. Steve, the largest headwind for us is going to be the tariffs currently in effect related to the EU. That would be our largest headwind that we're dealing with. Secondarily would be the components coming out of China that we source given the high tariff rate there. It drops off after those two. We do import, as you're probably aware, we import some smaller or low-horsepower tractors out of countries like Japan, Indonesia, India, a little bit from Brazil. That tail drops off after EU and China. Very helpful. It seems like Brazil is obviously on the verge of perhaps really turning more positive here. What can you do, and what are you doing to make sure you're keeping competitive pace there and really trying to, is the objective to kind of win in Brazil? Can you just give a little bit of color there? No, we are full speed ahead in Brazil. We've said each time Brazil comes up, we're bullish on Brazil. We've been bullish on Brazil for years. We think it's one of the most critical growth markets in global agriculture. It's got the capacity to grow two crops a season, sometimes even more than that, and put more acreage into the production along with more use of high-technology Precision Ag tools. Our brand leads, both of them, our Senior Vice Presidents of both brands are down there this week. I wish I could have been, but we had this stuff going on today. Head of PTx is down there. We are engaging with the market vigorously. All of them have given me feedback that the customer group is much more excited this year, and sales sentiment is much more positive this year than last year. We are working with our factories and supply base to make sure that we can be ready for an increase in demand that is likely coming. Brazil is either going up or down. It does not stay flat for very long. We recognize that, and we think we are on the path to be going up for some time because all the indicators are pointing towards Brazil being a winner out of the volatility that is in the marketplace. We are well-positioned for that. Damon talked about we're about one-month high in dealer inventory, but probably through Agrishow, that's going to get evaporated here soon. Then it's really about building to the market. Terrific. Thank you. The last question will come from Tim Thein with Raymond James. Please go ahead. All righty. Snuck into the bottom of the order. Just a quick one, I guess, Eric, just continuing along the line there. Getting flashbacks, Greg, to my old baseball days batting here at the bottom of the lineup. Just on the back of that comment on Brazil, I guess I'm just curious, in light of the increase in interest rates that's putting a bit more pressure on the federal government in terms of the wiggle room they have in terms of announcing or the subsidized interest rate programs, I'm just curious if there's been any news or anything that's come out there in terms of what next year's program may look like. Maybe that's part one. Then part two, and I probably missed this, but the change in the pricing expectations, and it wasn't a grand change, but the change from last quarter, was there a region, or is that a mixed dynamic going on with Brazil improving? Does that bias the overall pricing higher from last quarter? Maybe just a comment on that. Thank you. Yeah. R eal briefly, Brazil, we have not heard any indications yet. I do not think there are any indications been provided. We do have confidence that that government is highly supportive of farming and farmers. We think that the priority on farmers will remain, but do not have any specifics yet to be able to digest. I will ask Damon to help out with the mix on pricing. Tim, I think overall our outlook from which was 0-1% to around 1%, heavily weighted on what we have assumed related to the North American market there. There has been a little bit of improvement here in Europe. Generally speaking, the change in guidance is mainly focused on North America. This concludes our question-and-answer session. I would like to turn the conference back over to Eric Hansotia for any closing remarks. Thank you. I just wanted to thank the group for joining us today and the great questions on the call. When you take a step back, AGCO has gone through a substantial transformation over these past several years, particularly in 2024, where we supercharged our Precision Ag portfolio with the PTx brand. We're so glad that we made that move. AGCO performed well in the first quarter, better positioning ourselves amidst global trade uncertainty and continued weak industry demand. We made substantial progress in our cost reduction efforts and reducing inventory. All these efforts will be priorities for the remainder of the year. We're excited about the fact that farmer sentiment indicators are trending positive in all the major regions six months in a row now in EAME, which is our biggest market. We still see the trough being in 2025. Our key to our long-term success is the continued execution of our farmer-first strategy. Our focus is on growing our margin-rich businesses like Fendt, parts and services, and our Precision Ag business. I'll finish where I started. Our financial outlook reflects my confidence in the team and our strategy. Even in the weak industry conditions, we continue to execute on investing in the future, delivering market share gains, and staying nimble on our costs. To all of our shareholders, we appreciate the support and look forward to building value and executing our farmer-first strategy. Have a great day. Thank you for joining the AGCO earnings call. The call has concluded. Have a nice day.