"Today we are affirming our previously announced guidance for 2025 financial targets," said Timothy Kraus, senior vice president and chief financial officer. "Sales are expected to be lower for the year, mainly driven by lower demand for off-highway equipment and translation of foreign currency. The impact of our cost-savings actions, totaling $175 million in 2025, along with efficiency improvements will drive higher margins. Improved working capital efficiency and reduced capital expenditures will increase free cash flow."

2025 Financial Targets

• Sales of $9.525 to $10.025 billion;
• Adjusted EBITDA of $925 to $1,025 million, an implied adjusted EBITDA margin of approximately 10.0 percent at the midpoint of the range;
• Operating cash flow of approximately $500 to $600 million;
• Free cash flow of $175 to $275 million; and
• Diluted Adjusted EPS of $1.40 to $1.90.