Greetings, and welcome to Terex first quarter 2022 results con ference call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to turn the call to your host, Randy Wilson, Director of Investor Relations. Good morning, and welcome to the Terex first quarter 2022 earnings conference call. A copy of the press release and presentation slides are posted on our investor relations website at investors.terex.com. In addition, the replay and slide presentation will be available on our website. I'm joined by John Garrison, Chairman and Chief Executive Officer, and Julie Beck, Senior Vice President and Chief Financial Officer. Their prepared remarks will be followed by Q&A. Please turn to slide two of the presentation, which reflects our safe harbor statement. Today's conference call contains forward-looking statements, which are subject to risks that could cause actual results to be materially different from those expressed or implied. In addition, we will be discussing non-GAAP information that we believe is useful in evaluating the company's operating performance. Reconciliations for these non-GAAP measures can be found in the conference call materials. Please turn to slide three, and I'll turn it over to John Garrison. Thank you, Randy, and good morning. I'd like to welcome everyone to our earnings call and appreciate your interest in Terex. I would like to begin by thanking all Terex team members for their efforts in this challenging global operating environment with production disruptions and COVID impacts. Team members are working diligently to improve our performance for customers and shareholders. We are seeing strong global customer demand in our business. Bookings of $1.8 billion increased 19% year-over-year. Record backlog of $3.5 billion increased 17% sequentially and 73% compared to prior year. The global operating environment has become increasingly difficult and unpredictable. With that said, our supply chain team members are working hard to minimize production disruption and to deliver for our customers. Next, let me take a moment to address the war and its impact on Terex. First, our thoughts are with the Ukrainian people. During the first quarter, we stopped accepting new orders from Russia and Belarus. We have no manufacturing and limited historical sales into Russia, Belarus, and Ukraine. However, the recent increases in commodity prices, energy costs, and logistics resulting from the war are adversely impacting the company. Despite these challenges, Terex team members have worked together to drive our strategic priorities, execution, purposeful innovation, and growth. Turning to slide three. We are proud of all Terex team members who are keeping themselves and others safe. I would like to thank our team members around the world for their continued commitment to our Zero Harm safety culture and Terex Way values. Safety remains the top priority of the company, driven by Think Safe, Work Safe, Home Safe. Our strong commitment to Zero Harm is driving improvement of safety metrics, such as total recordable incident rate, which has significantly improved over the past six years. This is a testament to the hard work and dedication of our team members. Please turn to slide four. Our strong environmental, social, and governance programs deliver stakeholder value. We continue to progress on our ESG journey with leadership from our board of directors and executive leadership team. During each quarterly investor call, we will feature one of our pillars of our ESG strategy, and we will report progress. This quarter, we are highlighting social responsibility, which includes diversity, equity, and inclusion, or DEI, employee engagement, and community support. I am proud that many of our team members are actively participating in our affinity groups, which includes veterans, women, working parents, pride, and non-majority team members. For example, a working parents group is very active in supporting each other during this demanding time for working families. In addition, 3,000 team members participated in our March International Women's Day events throughout the world. Our goal is to capture the full potential of Terex by making sure every voice is heard and team members feel valued and welcome. Affinity groups give team members an opportunity to support one another, grow their networks, and provide education. Each of our executive leadership team members is sponsoring one of our eight global affinity groups. One of our objectives is to drive action around social responsibility, including increasing female and non-majority representation throughout the company. Our executive team's compensation is aligned with these goals. I want to recognize our team members' impact on their communities, which clearly demonstrates the Terex Way values of citizenship and servant leadership. Our materials processing team members in India are partnering with local non-governmental organizations to fund children's rights and education. Our Norfolk team members will participate this quarter in a Habitat for Humanity project and environmental cleanup. Also, team members in the company have donated to the Ukrainian relief efforts. We are pleased with our progress on our ESG goals. Please turn to slide five to review our financial highlights. The team delivered solid financial results for the quarter. Sales of $1 billion were driven by continued strong global customer demand. We continued prudent cost management. Operating margin of 7.4% improved year-over-year. Earnings per share of $0.74 increased 32% compared to prior year. Overall, first quarter financial performance demonstrated continued strong execution by our team members in a dynamic and ever-challenging operating environment. Please turn to slide six. Our MP segment is a diversified, high-performing portfolio of businesses. MP's brands have leading market positions with excellent end market, product, and geographic diversification. MP's global demand remains strong, demonstrated by a 24% increase in bookings and a record backlog of $1.2 billion, up 66% year-over-year. Our Powerscreen and Finlay brands are benefiting from strong global aggregate demand. We have leading market positions with our mobile crushing and screening products. Growth of environmental and waste recycling solutions is driving demand for our Ecotec and CBI products. The MP team has taken existing product designs and modified them to service the fast-growing environmental and waste recycling markets. The strength of residential construction is driving demand for our concrete products as U.S. housing inventory is being replaced. Our advanced mixer business has launched new products and features. Our Fuchs material handlers are benefiting from high scrap steel prices. In addition, Fuchs machines' operating hours are higher, which drives parts revenue. The strength of commodity prices is driving demand for Franna pick-and-carry cranes in Australia. This product is being redesigned for the growing India market, which is the largest pick-and-carry crane market in the world. MP's end market diversification is a strength. All these markets are growing and provide strong demand for our leading MP brands. AWP's end markets are also strong, demonstrated by a 16% increase in bookings and a record backlog of $2.3 billion, up 77% year-over-year. Construction, infrastructure, and industrial applications are driving demand for Genie solutions. Applications for Genie products include data centers, warehouses, and manufacturing facilities. The replacement cycle in North America and Europe is positive as fleets age and customers have strong utilization rates. Globally, increased adoption continues to improve labor efficiency and job site safety. Except for China, demand remains strong for Genie products in all regions. Our utilities business will benefit from the electric grid expansion as well as anticipated infrastructure bill-related spending in 2023. Further, the business will participate in the demand for 5G telecom across the United States. The business has robust demand as customers look to reserve multi-year production slots. Our new state-of-the-art Watertown, South Dakota facility has the capacity to support this growth. Turning to slide seven. Our execute, innovate, and growth strategy will continue to strengthen our operations in 2022 and allow the company to capitalize on strong demand in our end markets. First, the team continues expansion into new markets and geographies which has high growth potential, including recycling, material handling, and electrification. MP continues to build out ProStack, bulk handling product offerings, and distribution channels. This is an excellent adjacency to our existing material handling solutions. In AWP, the Genie Substation Utility Boom demonstrates partnership between our Genie and utilities businesses to deliver a new insulated boom for electric substations where an operator cannot use a bucket truck. Our parts and service teams are investing in digital offerings for dealers and customers, including myTerex and LiftConnect. Enhanced features include improved service analytics, allowing customers to maintain their equipment and reduce downtime. Timely information such as utilization rates and fuel consumption improves customer operating performance, online product information, and intuitive parts and service order functionality. More than 60,000 machines are fitted with this technology and more enhancements are under development. We are also expanding our utilities customer service footprint with a new Atlanta facility. In addition to technology and customer experience, we continue to invest for growth, both organically and inorganically. In February, we made an investment in Viatec with their plug-and-play electronic power takeoff system. This demonstrates our commitment to support the electrification of utility fleets that allows trucks to operate without engine idling. This solution supports our customers' ESG needs by eliminating noise and carbon emissions. It also lowers operating costs and extends the life of utility equipment by reducing engine operating hours. This week, we announced the acquisition of a heavy fabrications manufacturer based in Northern Ireland. This purchase supports MP's growth strategy by increasing fabrication capabilities and capacity. These actions and investments demonstrate our commitment to executing on attractive growth priorities that support our strategy. Turning to slide eight. An important part of Terex organic growth is our new Monterrey, Mexico facility. I recently visited the temporary facility where our highly engaged and talented Genie team members are currently producing telehandlers. The team is building a strong operational foundation based on the Zero Harm safety culture and Terex Way values. I also visited the site of the permanent facility, which is early in the construction phase and progressing well. Local supply chain development is also underway. The Monterrey team came together over the past year from multiple industries, and they are doing an incredible job. It has been great to see the excellent teamwork among our local Monterrey, broader Genie, and corporate teams working together to create a world-class manufacturing facility. Please turn to slide nine. Geopolitical issues and local COVID policies are causing increased disruptions and significant cost increases in materials, logistics, freight, energy, and labor. These headwinds have constrained our growth. However, we are aggressively managing these challenges. In the quarter, COVID cases continued to increase. At Terex, we had more cases in Q1 2022 than we had during the full year of 2021. This adversely impacted production and efficiencies at our facilities as well as our suppliers. Toward the end of Q1, China COVID policies started causing significant disruption to our Changzhou and Jiaxing facilities. This is also impacting many of our China-based suppliers, further increasing disruption in our global supply chain and logistics. The team is battling headwinds every day by mitigating cost pressures and minimizing production disruption by staying close to suppliers and expanding our supply base, redesigning components that maximize availability of critical inputs to improve production, providing transparent communications of delivery and cost headwinds to our customers, and implementing price increases in response to inflationary cost pressures. In this dynamic environment, our operations, sales, and customer service team members are demonstrating resilience and flexibility to increase production deliveries for our customers to overcome these global challenges. With that, I'll turn it over to Julie. Thanks, John, and good morning, everyone. Let's take a look at our first quarter financial performance found on slide 10. We reported sales of $1 billion, up 16% year-over-year, primarily due to increased volume and price. Foreign currency translation negatively impacts sales by $32 million or approximately 3.5% in the quarter as the euro weakened against the dollar. Gross margins declined by 180 basis points in the quarter as pricing actions partially offset cost increases. Our AWP business recognized $3 million of benefits related to prior periods from the reinstatement of tariff exclusions and a business tax refund. Recall that we were not able to ship all 2021 priced orders in 2021 due to component availability. Input costs for steel, hydraulics, engines, brakes, and logistics have increased on a year-over-year basis, on a sequential basis, and since our last earnings call. Despite the highly inflationary environment, SG&A expense was $3 million lower than the prior year. SG&A percentage of sales of 11.1% improved by 210 basis points from the prior year as strict expense management control continued. Operating margin of 7.4% was up 30 basis points compared to the prior year and up 40 basis points sequentially through disciplined cost control. First quarter operating profit was $75 million compared to $62 million in the prior year. Current quarter operating profit included $5 million of charges in corporate and other associated with restructuring, severance, and litigation charges related to former product lines. Interest and other expense was approximately $4 million lower than Q1 of 2021, primarily due to reduced interest expense on debt levels that were lower by $239 million. The first quarter 2022 global effective tax rate was approximately 18.5% as we recorded favorable discrete items in the quarter. Our global effective tax rate estimate for the year remains at 20.5%, consistent with our previous outlook. First quarter earnings per share of $0.74 increased 32%, representing an $0.18 improvement over last year. The financial call-outs had a $0.02 per share negative impact in the quarter. Incremental margins of 9% for the quarter were below our target of 25%. As we discussed in February, in the first half of the year, our incremental margin framework of 25% is challenged as inflation continues to escalate. Our return on invested capital remains strong at 19.2%. Free cash flow for the quarter was $-72 million, which was consistent with past historical patterns for the first quarter. We have not yet received an approved $39 million IRS refund. I will discuss free cash flow in more detail later in my prepared remarks. Let's look at our segment results, starting with our materials processing segment found on slide 11. Pictured here on the slide are excellent examples of our growth investments in MP, our Ecotec recycling product lines and Terex Washing Systems. MP had another strong quarter with sales of $453 million, up 20% compared to the first quarter of 2021. The business ended the quarter with a backlog of $1.2 billion, up 66% from a year ago. Booking activity was particularly strong in our aggregate and environmental businesses. In these challenging markets, MP increased their operating profit by 31% in the quarter and reported operating margins of 14.2%, up from last year by 120 basis points and sequentially by 40 basis points. MP has been able to show consistent performance even in this inflationary environment. The team continues their excellent operational execution. On slide 12, see our aerial work platform segment financial results. AWP sales of $552 million increased by 16% compared to prior year. AWP first quarter bookings of $1.1 billion were up 16% year-over-year, with particularly strong booking activity in the utilities business. Backlog at quarter end was $2.3 billion, up 77% from the prior year. Both Genie and Utilities have taken multiple price actions over the course of 2021 and 2022 to address inflationary cost pressures. AWP delivered operating margins of 5.9% in the quarter, up from last year by 30 basis points and sequentially by 110 basis points, driven by strict expense management. Excluding the financial call-out benefits in the quarter, operating margins were consistent with the prior year. The Genie and Utility teams are working diligently to deliver every day. I am proud to work with them as we continue to drive operational improvement. Please see slide 13 for an overview of our disciplined capital allocation. To provide you some color on our free cash flow performance, historically, the business is in a negative free cash flow position in the first quarter. In the first quarter of 2021, our free cash flow was positively impacted by $15 million of tax refunds and $7 million of net benefits from the sale of our TFS portfolio. Q1 2022 has improved when compared to our historical performance in the first quarters of 2019 and 2020. Free cash flow in the quarter of -$72 million was adversely impacted by increased inventories of $108 million. The higher inventory levels were a result of a $42 million increase in hostage inventory, awaiting installation of final components, and a $44 million increase in raw materials to support our backlog. Now let me detail some uses of our cash in the quarter. We continue to reinvest in our business with capital expenditures and technology investments of $23 million. A large portion of our capital expenditures is related to our Monterrey, Mexico facility. Returning cash to our shareholders is an important element of our disciplined capital allocation strategy. The company increased its quarterly dividend per share in February to $0.13, an 8.3% increase. In addition, we completed $18 million of share repurchases in the quarter as we believe that Terex shares are an attractive investment. We had $122 million remaining on our share repurchase program. Finally, the company has significantly delevered over the past four years and strengthened its balance sheet. Outstanding gross debt has been reduced by $738 million since the first quarter of 2019, a 50% decrease, and $239 million since the first quarter of 2021, or a 24% decrease. We have no near-term maturities until 2024, and 81% of our debt is at a fixed rate until the end of the decade. Our net leverage remains low at 1.35x, which is well below our 2.5x target through the cycle. We have ample liquidity of $753 million. The company is in an excellent position to run and grow the business. Now turning to slide 14. We are reaffirming our full year company and segment 2022 outlook that we shared with you in February. Supply chain challenges continue, but inflation pressures, geopolitical uncertainty, and highly restrictive China COVID policies have gotten worse since we last spoke to you. It is important to recognize this unprecedented environment could change this outlook positively or negatively. Our performance in the first quarter was better than expected. As for commercial demand, we continued to see strong bookings activity in the first quarter. We ended the quarter with backlog of $3.5 billion. However, our sales outlook reflects the latest dialogue with our suppliers. Sales are not a function of demand, but rather the ability of the supply chain to deliver components. We have the internal capacity to produce more and have demonstrated such in the past. Operating margins are expected to steadily increase throughout the year as price cost dynamics improve. MP's margins of 14%-14.5% will be relatively balanced throughout the year. AWP's operating margins of 7.8%-8.5% reflect price realization improving throughout the remainder of the year. In the second quarter, we expect AWP's operating margins in the mid-single digits. Operating margins are expected to improve in the third and fourth quarters as pricing actions take effect. With that said, incremental margins in the first half of the year are anticipated to be negative, but improve in the second half and be above our 25% target. MP had an outstanding second quarter in 2021, with operating margins of 16.4%. The business has a difficult year-over-year comp for the second quarter of 2022. In addition, MP's incremental margins are negatively impacted by investments in new products and manufacturing capacity. AWP also had a strong second quarter in 2021, delivering 11% operating margins as sales recovered and there were minimal inflationary pressures. Therefore, unfavorable price cost dynamics in the first half of 2022 will result in incremental margins below our target, but increasing to above our target in the second half of the year. Turning to free cash flow, we expect improved free cash flow in the next three quarters, and we reaffirm our $175 million-$225 million outlook. Finally, I would like to reaffirm our earnings per share outlook of $3.55-$4.05. With that, I will turn it back to you, John. Thanks, Julie. Turning to slide 15 to conclude my prepared remarks. Terex is well-positioned to deliver increased shareholder value because we have strong businesses, strong brands, and strong market positions combined with record backlog upon which we can grow. We will continue to invest in new products and manufacturing capacity along with strategic inorganic growth. We will continue to execute our disciplined capital allocation strategy, and we have demonstrated resiliency and adaptability in an increasingly challenging environment. I am confident this will result in Terex being an even stronger company. With that, let me turn it back to Randy. Thanks, John. As a reminder, during the question- and- answer session, we ask you to limit your questions to one and a follow-up to ensure we answer as many questions as possible this morning. With that, I'd like to open up for questions. Operator? At this time, I would like to remind everyone, to ask a question, press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press star one. Your first question comes from the line of Nicole DeBlase with Deutsche Bank. Your line is open. Yeah, thanks. Good morning, guys. Good morning, Nicole. Morning. The 1Q margins were definitely, I think, better than expected, but incrementally inflation has stepped up versus when you guys provided your original outlook. Maybe you could talk a little bit about, you know, how the price cost equation is looking for the full year relative to how you were originally thinking about it. Thanks, Nicole. The objective of our pricing strategy really across our global businesses is to offset material and logistics cost increases. We took pricing actions in late 2021 as inflation began to accelerate, but unfortunately it was not enough. We had to take additional actions across the company in 2022. You know, we are being transparent with our customers and our distribution partners regarding the level of inflation that we're seeing and why we need to take the additional pricing actions. I'll also comment that our supply chain teams are pushing back hard on our suppliers, but nonetheless, we are seeing inflationary impact. In the AWP business, again took pricing actions late 2021. It was not enough. We implemented further price actions in April to mitigate the inflationary pressures that we're seeing. Our outlook is that price realization will improve throughout the year. For AWP, and this was consistent, Nicole, we do anticipate being price cost negative in the first half of the year and price cost neutral for the full year as that price realization improves. If we look at our MP business, you know, MP's done a really good job offsetting most of the material and logistics inflations that we've seen around the globe. They've been dynamic in updating their pricing, and we expect that they will continue to be dynamic as we go forward. Even though their pricing has been more dynamic, as we know, we've seen greater inflationary pressures here this year as a result of the war in Ukraine, which impacts our MP business given their production capacities in Europe. We're looking for them to also have to take further price actions as we progress. We're expecting MP for the full year to remain price cost neutral. That's our pricing actions. We're being transparent with customers, being clear of what we need and why we need to take these pricing actions. They're difficult conversations, but absolutely necessary given the unprecedented level of inflation we're seeing. Pricing is dynamic, and it's ongoing to offset these inflationary pressures that we're facing. Got it. Thanks, John. Just as a follow-up, I mean, one of your biggest competitors talked about actually taking surcharges this week, which is a total change in how the industry typically prices and even, you know, adding those surcharges to equipment that's already in backlog. What is Terex's approach to taking the incremental price increases that you just spoke about? Our approach is price actions. You can call them surcharges. They're price increases. We did take the pricing actions for anything that had not been delivered. Anything delivered after mid-April in the Genie business will carry the higher price. Thanks, John. Thanks, Nicole. Appreciate it. Operator, next question. Operator, next question please. Your next question comes from the line of Stephen Volkmann with Jefferies. Your line is open. Great. Good morning, folks. Thanks for taking my question. Morning, Steve. Maybe semi-related, but I just wanna sort of understand the moving parts here. Last quarter, you know, you said you expected AWP margins to be sort of low single digits in the first quarter. Obviously, they came in better than that, even sort of subtracting your good guy that you described, Julie. I'm just curious, what was better than you expected? Was it price cost, or just throughput, you know, supplier availability? Just what actually was better? Yeah. Steve, thanks for the question. We had a slightly higher volume and we had a bit of a favorable product mix. We had strong, you know, some strong execution in price cost, and really, the team did an excellent job on strong expense management. You know, both operating and SG&A costs were very favorable. We have a very strong cost control environment and they've done a really great job on managing costs. All of these things were favorable. We did have some unfavorable exchange, though. Want to make sure everybody knows that as the dollar has strengthened, the Genie AWP business in particular is impacted by the strengthening of the dollar against the euro. Okay. That's helpful. Thanks. Then I guess as we think about the second quarter, it sounds like you're kind of thinking margins are flattish sequentially on what I assume is up revenue sequentially, but correct me if I'm wrong there. That seems conservative, or have things sort of deteriorated at the margin that's a sort of a more realistic outlook? So- Go ahead, Julie. I'll take the first part. Steve, on the volume side, and we can talk a little bit more on the supply chain, but with the changes in China and the COVID policies there, we have a large production facility that produces for China, but also exports out of China to the rest of the world other than the United States. We're seeing some softness in production as a result of those COVID. We're looking at probably, you know, flattish revenue year-over-year in the AWP segment. Julie, you wanna comment on the margin side? Yeah. The margins will be up slightly, you know, just due to, you know, a little bit, you know, more pricing actions coming through in the second quarter. Okay. Thank you. Thanks, Steve. Your next question is from the line of Tami Zakaria with J.P. Morgan. Your line is open. Hi. Good morning. Thanks for taking my question. Good morning, Tami. Morning. How are you? I'm good. Given you've taken multiple price increases year to date, can you remind us what's the volume and price mix embedded for the full year sales growth? Also, if you could remind us what the mix was in the first quarter's 16% growth you saw. Yes. Thank you, and thanks, very much for the question, Tami. You know, we in the first quarter, we had more price than we had volume. And it was offset by FX of 3.5%. About 2/3 of our increase was related to price, 1/3 of it was related to volume. As we look at our full year, we'll see more pricing. You know, we have higher costs offsetting that. We have unfavorable foreign exchange in the year and volume up a little bit more than what we gave you last time, about 6%. Got it. Thank you. Can you talk about the recent Northern Ireland steel fabricator acquisition? Anything you can share on what kind of sales and margin accretion you expect over time and how this fits into the overall portfolio? Thanks, Tami. Yes, the recent acquisition we made, really it's a vertical integration play. We needed to take control. They're a heavy fabricator manufacturer. We've been doing business with them for quite some time, and we needed to ensure our growth in our MP business there in Northern Ireland with our crushing and screening products, we needed to control the fabrications. There was gonna be a change of control in the business, and we felt it was appropriate for us to control that fabricator to ensure that we have the growth that we need going forward. It really is a vertical integration play, Tami, to control our supply chain. Great. Thank you so much. Thanks, Tami. Your next question comes from the line of David Raso with Evercore ISI. Your line is open. Hi. Good morning. It appears all the math, and I know corporate expense goes down sequentially because of the one-off item in 1Q. You know, it seems like puts and takes, you know, 2 Qs maybe around, you know, $0.85 or so. What I'm trying to understand is then the back half of the year, you would need roughly about $2.20 to get to the midpoint of the guide. That just feels like a tug-of-war between price cost improvement and then the negative, in particular, the China lockdowns and Russia-Ukraine fallout, you know, especially on your cost structure in Europe. Can you help us a little bit quantify how you're thinking about the guide in that back half when it comes to, and I know it's hard to predict, but I mean, is there some workaround a little bit around the China lockdown to some degree or some assumption of handling the lockdowns in a different way or just assuming there's some opening? The Russia-Ukraine fallout, I guess, particularly that would you know hurt the MP profitability. Just trying to think about the second half earnings being above the first half with those tug-of-wars. Price-cost the positive versus those two obvious negatives of the lockdown and the Russia-Ukraine situation. Yeah. Thanks, David, you're right. Price cost, given the pricing actions, we need to see improvement in the back half of the year clearly, on the price cost side. I think, David, really the way we're looking at it is it's really, you know, this is not a demand issue, it's a supply issue. What we're doing is we're looking at what's the demonstrated capacity of our suppliers, and we've built our outlook around that demonstrated capacity. They've demonstrated a $1.1 billion type of level of capacity to meet our needs. We've built our outlook around that. In terms of the supply chain performance, we didn't see an improvement in the supply chain in the first quarter. As a matter of fact, we saw some deterioration in performance. We're anticipating in other parts of the world we do see a slight improvement, but not substantial improvement in the supply chain to meet our forecasted needs. A bit of a challenge right now is COVID in China. It has impacted our facility. The good news is we haven't been shut down completely, but we have had rolling shutdowns based on the ability to have material in the plant so our team member can work. Our suppliers are experiencing similar phenomenon. Based on the best information available, that's how we've laid out our outlook for the second half of the year, and it's really in that $1.1 billion kind of range, and that's the demonstrated capacity that suppliers have exhibited, frankly, for the last couple of quarters. We're not anticipating a significant improvement. Now, if we do get a significant improvement, clearly the demand is there, and we'll be able to produce and deliver more. Right now, the constraint is the supply chain, and the new variable here in the last, you know, 60 days, 30 days, is really the China COVID policy and what impact that has on the global supply chains. That's obviously what we're managing, and we believe our outlook comprehends the best available information available. Yeah. I'm just trying to think of mathematically, if it's sort of like $0.85 2Q has to go up roughly, you know, call it $0.20, $0.15 sequentially to get to that sort of $1.10 run rate in the back half. Every 100 basis points of price cost improvement is about $0.10, right? So it seems like there's a couple hundred basis points of improvement in price cost and then just, you know, hopefully a little improvement in the lockdown situation. Is that the, you know, rough math on how to think about the swing from the first half negative price cost to second half positive price cost? It's at least a couple hundred basis points and that kinda gets you the incremental EPS. David, you know, you're correct. You know, what we'll see, you know, for AWP is, you know, the operating margins of 7.8%-8.5%. It improves sequentially over time as price realization improves throughout the remainder of the year. For the MP business, operating margins remain, you know, relatively flat in that 14%-14.5% for the year. They just continue to do an outstanding job, you know, each quarter. Okay. The AWP price cost swing is the major driver for the back half, and then, you know, MP will obviously see what happens with the Russia-Ukraine situation. That's sort of the delta, right? If you can get some lockdown help, that obviously helps AWP volume on top of the price cost, and then the Russia fallout, you know, obviously on the cost side for MP, you've already taken the margins sort of down to a lower than previously expected, right? Just the idea of sort of flattish the rest of the year, roughly speaking. That's fair. Okay. Thank you very much. Yep. Thank you, David. All right. Appreciate it. Thank you. Your next question is from the line of Jamie Cook with Credit Suisse. Your line is open. Hi, good morning, and nice quarter. Thanks, Jamie. My question's on the backlog on AWP. Obviously, I think you're at $2.3 billion, which suggests you're starting to take orders for 2023. Can you just sort of help us understand how contractually A one whether you are and how you're contractually you know making sure we don't have price protection yourself right. We don't have price clause headwinds in 2023, whether you have any surcharges in there or contract relief for 2023. Then since you announced the April price increase, have you seen any change in order patterns as a result of that? Thank you. Thanks, Jamie. I'll answer the questions in reverse order there. I can say this broadly across the globe. We haven't seen any significant order cancellations as a result of the price actions that we've been taking. Of course, there are pockets at times. We saw some in our utilities business based on municipal contracts, but in those cases, actually it went to rebid, and we were able to win the bid. In terms of the Genie or the Aerials business, you know, the good news is we are seeing quite strong demand. You know, our rental companies are in really good position. They're seeing record levels of utilization. Their business is strong. We're entering into the replacement cycle, and I think the replacement cycle is gonna continue, and I think it's probably gonna continue to be pushed a little bit to the right because of the industry's ability to meet the demand from a capacity standpoint. We are having discussions with customers. We do have orders that are flowing into 2023. The way in which we have handled it is we have provided indicative pricing that is provisional and that will be reviewed at the end of the year as we get closer to the time of actual production in the beginning of delivery. We are not locking in pricing for 2023 at this time. We've provided provisional indicative pricing for all customers that are interested. They are taking some production slots, but we have the ability to go back at the end of the year and adjust prices based on what the material conditions are at that point in time of the year, and into 2023, I might add. John, just as a follow-up, in terms of who's coming in for 2023, is it the nationals or is it pretty broad-based across your customer base? Then I'll get back in queue. Thanks. Jamie, it's really broad-based. It's across all customer segments and, you know, North America, European-based, principally right now in North America, but we're seeing strong demand, you know, all over the world right now in Genie with the exception of China. It's broad-based across the customer segment. Thank you very much. Thank you, Jamie. Your next question is from the line of Stanley Elliott with Stifel. Your line is open. Good morning, everyone. Thank you guys for taking the question. Quick question on the Franna business. It's been a great product, great margins for you guys, taking it into China. What sort of investments will be required from you all there? Can you build it within some of your existing facilities? Just curious how, you know, how that will eventually ramp. Yeah. You're right. Franna is a great business, down in Australia, and we're seeing some real strength. Again, there's, you know, positives and negatives. Great high commodity prices around the world for mining lead to strong business for us with Franna. It's actually going to India. What the team has done is, and we're the clear market leader in pick and carry in Australia, but it's a much smaller market. The team has taken the fundamentals of the Franna design, and we're moving it to our facility in Hosur, localizing it. Done a great job localizing it and building it there. We had expanded one of our manufacturing facilities in Hosur. Right now they're going into the existing facility. We will need, if we're as successful as we think we will be, to add to the capacity that we have there, Stan, in Hosur. It will be modest levels of investment. Again, excited to see that, you know, that's a great example of growth, product line extension, regional growth that the MP team's really good at. We're excited to see what happens. The reception thus far has been quite positive. Again, it's the world's largest pick and carry market. We're excited to see if we can drive some incremental growth and profitability in India with our Franna product line. Switching gears, maybe a little bit about what's happening on the M&A environment. Curious if, you know, the transaction from the other week, is that really more opportunistic in terms of moving more into fabrication? You know, would you still like to be more expansive within the product categories that you're operating more on the MP side? Just curious if that marked a sea change or if it was kind of more opportunistic. We obviously, you know, we have a bias towards growth now with capital deployment. If you look at the, you know, the investments we're making or for organic growth are fairly substantial in our systems and our technology for organic growth. We also have done several smaller acquisitions over the course of the last year. We are building an active M&A pipeline. Our principal focuses are in and around the MP businesses and the verticals that we compete in MP. With the market structure, we think there's going to be opportunity. We have an active M&A pipeline that we're active on. In this particular case, it really tied to, yes, to some extent it was opportunistic, but to a broader extent, we wanted to make sure we controlled our ability to grow a critical part of our business. Key heavy fabricators are very important to our growth for our MP business. It was opportunistic. Key area for us, and we felt the vertical integration there in Northern Ireland was important to have that ability to grow going forward. That's why we made the acquisition, Stan. Perfect. Thanks so much for the time, and congratulations. Best of luck. Thank you. Thanks. Stan. Your next question comes from the line of Steven Fisher with UBS. Your line is open. Thanks. Good morning. Wonder if you could just give us a little more color from the front lines of the supply chain situation. Is this still a seven-day-a-week frenzy kind of dynamic, or has any of it normalized a bit? I guess related to this, on China, how much of the concern here is just concern that it might have a more global impact versus just within China? Or are you already seeing it have a global impact on the supply chain? The supply chain environment still is incredibly dynamic. When you look at supplier on-time delivery performance, we have not seen. Good news is it hasn't deteriorated significantly, but it hasn't improved. On any given day, we literally have hundreds of parts that are late or not where they need to be in our facilities, you know, around the world. The teams are doing a heck of a job adapting to that environment. We have not seen a significant improvement in the supply chain. We did see a build in what we call hostage inventory, you know, almost a $40 million increase. And that represents inventory that's substantially complete, awaiting one or two components that we can complete and ship. The team's still dealing with that phenomenon. We would have never spoke about hostage inventory prior to this experience, but that's the environment that the team's dealing with. It really is resilient adaptability, staying close to suppliers, getting the best information available as soon as possible, and then adjusting your production schedules to maximize their production and limit the disruption to you know to a certain extent, but it's disruptive every single day. The COVID situation in China, it has clearly impacted our plant. The good news is we're not in a region where our plant has been shut down for a month. It's been able to operate, but we are seeing, and we have situations where suppliers are giving us a heads-up that their second or third tier suppliers are struggling right now, and that's gonna impact their deliveries to us. It's just another variable that the teams have to manage. You know, the good news though in China is when our team members can work, we have 99% plus attendance, and they want to work all the hours that are required to make it up. Once there gets some freedom of movement in China, it will recover quite quickly. You gotta deal with the logistics and all that sort of thing, but that's the good news in this, you know, challenging scenario, is once the policies change, China will recover quickly. The question is how long are we in this zero, you know, zero tolerance, zero COVID, and what impact does that have? It really is city by city, plant by plant. That's why it remains dynamic. Again, our team's doing a heck of a job managing through that, not just in China, but on a global basis. Okay. Just can you remind us what your position is on steel costs for the second half of the year versus the first half? You know, our original outlook, we had talked about a $1,800 in the first half for hot rolled coil in the U.S. and going down to $1,200 in the second half. That assumption is now $1,800 in the first half down to up to $1,400 in the second half. Perfect. Thanks a lot. Thanks, Steve. Thank you. Thank you, Steve. Your next question comes from the line of Steve Barger with KeyBanc Capital Markets. Your line is open. Hey, thanks. Good morning. Morning, Steve. Your comments on challenged incremental margin, especially in the first half, are totally understandable. My question is, if you come in at high teens this year, for argument's sake, does that rebound above the target range next year? Meaning that as you get a handle on price and supply chain, you would expect to run, you know, further into the 30+% range to kind of get to a two-year average on that target. I'll take the first part, Steve. I'll let Julie jump in. Honestly, our target, you know, as a manufacturer is 25% incremental. As we said, clearly challenged in the first half of the year, above that target in the second half of the year. We'll see as we move into 2023. You know, clearly in the AWP segment, we need to be looking at, you know, something north of 25%, to get to the margins levels that we think that business should operate in. On the MP side, you know, their consistent level of operating margin, you know, sometimes they fall a little short of that 25% target, but as Julie said, that's because of some of the investments we're making. The 25% target is our target, and we'll see as we move into 2023, but clearly in the AWP segment, we're gonna have to do better than that to get back to the margin levels that we think the business should enjoy. Understood. Thanks. You know, you talked about the Fuchs operating hours being up and driving the parts business. How does Fuchs compare to, say, screening in terms of driving aftermarket parts? Can higher operating hours across the installed base really drive a material benefit to earnings or is that just more of a modest tailwind? The highest parts usages are obviously the heavy screens. and crushers, just given the nature of ground engaging. The operating hours of our Fuchs machines in terms of hours run, you know, on the engines and movement is actually the highest. They do generate a nice parts revenue stream. A lot of the strategies that we'll put in place are driving incremental revenue in our parts business. Margins. You know, again, we have to take the same pricing actions there. It's a modest tailwind for us as we go forward, but we do think there's ability to continue to grow our parts and service business across the globe. Thanks, Steve. Got it. Thanks. Your next question is from the line of Seth Weber with Wells Fargo. Your line is open. Hey, good morning, guys. Wanted to ask a question about Europe, specifically, just the demand environment in Europe and your ability to get pricing. Are you getting pricing at the same levels that you're getting in North America? Thank you. Thanks. In terms of the pricing actions, the pricing actions are regional based on the specific cost needs in the regional markets. For both the AWP and MP business, they are taking pricing actions around the globe specific to the respective products in the region. The pricing actions do vary, and we are seeking price increases in Europe, both in the AWP business and the MP business as we go forward. How would you characterize the demand levels in Europe relative to North America or any sort of impact that you're seeing on a demand perspective with respect to the war? In the first quarter, we saw strong demand in Europe. We'll see as we move forward, but right now, we've seen strong demand across both MP and AWP in Europe. Okay. Thank you. Just a clarification, John, you talked about utilities bookings being particularly strong. Were access bookings up in the quarter as well, or is that just all driven by utility? Both of the business had increased bookings in the quarter. Thanks, Seth. Both of the parts of- Of AWP. Yeah. Yeah. Both the Genie and Utilities had increased bookings in the quarter. Okay. Thank you. No problem. Your final question comes from the line of Jerry Revich with Goldman Sachs. Your line is open. Yes. Hi, good morning. Morning. Hi, John, can you talk about your handling of the current supply chain headwinds in China, given you know, the experience that the organization has gained over the past three years dealing with these rolling shutdowns globally? You know, how much more global is your supply base today as you drill down and look at core underlying components, you know, third-tier suppliers? Can you just talk about that dynamic? It feels like you're in a better position today than over the past couple of years, given the work the organization has done. Maybe you could quantify the supply base and provide some more color on that. Yes. I mean, the team has done over the last several years a tremendous work on the strategic sourcing initiative, and it really is a globalized supply base. Now, with that came manufacturers, suppliers in China, and especially around castings, hydraulic components and some electronic components. China's a world leader in those categories. So those are categories where we have seen some disruption associated with COVID and again, that's what we'll be watching quite closely. The work the team has done consolidating suppliers, identifying primary suppliers and growth suppliers, we've been able to move, and again, this tight supply environment has been challenged. But where we've needed to move some supply or increase capacity, we have had some success there. Most importantly, I would say is the, you know, just the level of importance that we are to the supply base has enabled senior level dialogue. Because I'm spending a lot of time on the supply base side in the strategic sourcing initiative that we underwent, allowed me to have those relationships that I think are critical in this time period to ensure that our suppliers understand the impact that they're having on our business and to making sure that the suppliers are utilizing all resources available to help break the constraints that have been applied. We've seen, you know, we've seen some amazing work done by the teams from an engineering redesign standpoint and done things safely and properly tested in time frames that we wouldn't have thought possible prior to this pandemic. I would say that strategic sourcing enabled us to have those relationships that we needed through the organizations were more important to these suppliers and it's clearly helped. Now, with the level of disruption they're experiencing, their on-time delivery performance is not anywhere near where we would like, but that's one of the things we discuss with, you know, when we have our senior level meetings. Again, I think we've made progress. We are localizing some in Mexico, as I mentioned in my opening comments. We think Mexico will be a good supply base for us to support not only our Mexico operations, but also our U.S.-based operations. You will see us moving some from Asia into Mexico as we go through the coming years because we think that's a quite attractive place for us to be going forward. That's, you know, Jerry, kind of a around the world on a supply chain, if you will. I appreciate it. You know, I'm wondering, John, now that you have all of the telematics data in place, can you just talk about how in Europe utilization has evolved, year to date, you know, the disturbance in energy prices and obviously the war? Can you just talk about what the utilization has looked like in AWP in Europe in the quarter versus normal seasonality through April, if you can share it? Right. Just looking at the graph as we speak, we saw good utilization increase in general in actually January, February. We did see it decline slightly in March, and a little bit more in April. Now again, we're not seeing in North America, especially we're not seeing the normal seasonality impact because the demand is so strong. We did see a little bit of come down in operating hours in April in Europe based on our telematics data. Thanks. Thanks, Jerry. I will now turn the call back over to Mr. John Garrison for some closing remarks. Thank you, operator. If you have any additional questions, please follow up with Julie and Randy. Please stay safe and healthy, and thank you for your interest in Terex. Operator, please disconnect the call. Ladies and gentlemen, this concludes today's conference call. You may now disconnect.