“31 Table of Contents Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued) LATAM Three Months Ended March 31, Change 2026 2025 $ Net sales $ 211.7 $ 256.0 $ (44.3) Income (loss) from operations (40.9) 6.5 (47.4) Net sales decreased in LATAM in the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily due to sales volume declines, most significantly in tractors and combines, and negative pricing impacts, partially offset by favorable foreign currency translation.”
“Some facilities are impacted by seasonal production demand, and we manufacture a mix of heating, cooling and refrigeration products in those facilities to balance production and maintain a relatively stable labor force.”
“Additionally, the increase in income from operations during 2025 was the result of decreases in restructuring and business optimization expenses and selling, general and administrative expenses (“SG&A expenses”) primarily related to lower compensation costs and transaction costs, partially offset by lower sales and production volumes reflecting weak industry conditions.”