A：The third quarter results included a one-time benefit related to tariff refunds, resulting in net earnings of $15.8 million or $1.53 per diluted share, compared to $19.5 million or $1.78 per diluted share in the prior year. The year-over-year decrease was attributed to lower operating income, partially offset by an increase in other income and a lower effective tax rate.

A：Irrigation segment revenues for the third quarter were $133 million, a decrease of 16% compared to $174 million in the prior year. The operating income for the quarter was $20.3 million, compared to $27.2 million in the prior year, and the operating margin was 15.3% of sales versus 18.9% of sales last year. The decrease in operating income was due to lower unit sales volume, higher input costs, and the impact of fixed cost deleverage.

A：North America irrigation revenues decreased to $61.3 million, a decline of 11% from $69.1 million in the prior year, primarily resulting from lower unit sales volume. This was partially offset by higher average selling prices. International irrigation revenues fell to $71.7 million, a decrease of 4% from $74.7 million in the prior year, due to lower sales volume in Brazil, which was partially offset by growth in other international markets.

A：In the infrastructure segment, revenue for the quarter increased by 8% to $27.7 million compared to the prior year. The operating income was $5.4 million, which was comparable to the prior year's figure, and the operating margin was 19.5% of sales compared to 21.6% of sales in the prior year. The decrease in operating margin was attributed to less favorable mix, particularly due to lower road segment revenues.

A：The outlook for the Middle East project is positive, with public proclamations from leaders indicating a continued interest in investing in domestic agricultural production for food security. The total market opportunity remains unchanged, and there is still a substantial amount of business available. The timing of water and electrical infrastructure development could affect project cadence, but from a macro level, more growth is anticipated. The company is in the early stages of what it views as a substantial opportunity.

A：A $80 million project was mentioned, with $70 million expected to be recognized in fiscal 2026 and the remaining $10 million spilling into fiscal 2027. There may be minor timing changes, but the majority of the revenue is expected to be recognized in the early part of fiscal 2027.

A：The galvanizing facility is set to be operational in fiscal 2027. Once it goes live, it will mark the final phase of the company's strategic investments, leading to a return to normalized capital levels. After the facility becomes operational, the company should see a decrease in capital expenditures, as it will be comprised mainly of maintenance capital and investments in organic growth with strong business cases.

A：The company is excited about the potential of AI in improving the profitability of customers, particularly through enhanced irrigation scheduling and water management. Fieldnet Advisor uses AI models to schedule irrigation and has proven to be effective. On the technology side, the smart pivot platform is under development, incorporating machine learning to pre-diagnose failures in mechanical parts, such as center drives and gearboxes, improving maintenance and preventing downtime. The company sees AI as being in the early stages of application to equipment but anticipates significant opportunities to change how customers operate their irrigation systems.

A：The release of the program in Brazil is viewed as good news and has led to market expectations of a 12.5% to 11.5% reduction in script script. Some projects are expected to start working through the system early in the first quarter of fiscal year 27, although the total program volume is lower by 38% compared to the past. Consequently, there is a hope that some of the projects previously on hold will now progress through the funding mechanism and be approved for rollout.

A：Historically, the fourth quarter is the lowest volume quarter with the lowest fixed overhead absorption. This year, the outlook is not optimistic due to generally a very light storm season with minimal activity even in the Midwest. The projected volume in the fourth quarter is expected to be lower compared to prior periods.

A：Forecasting gross margin is complicated by various factors including steel price movements, other commodity prices, project timing, and seasonality. In the fourth quarter, there may be less absorption due to seasonality. The company is prepared to face cost escalations and is monitoring inflation from a raw material perspective but cannot predict it specifically. With many variables at play, it is challenging to be precise about expectations.

A：The company is seeing substantial year-over-year growth at a national level, but there's a concern about the impact of severe drought on the ability of customers to finish crops due to insufficient water. While drought is generally good for business, the extreme drought category negatively impacts business by affecting crop yields and water availability. The company is closely watching these areas and if the conditions persist, it may lead to decreased supply and potential pricing support. Additionally, the company is focusing on restructuring actions, with plans to be more efficient and leverage technology like AI, while continuing to invest in long-term growth priorities.

A：In the current market conditions where volume for the entire industry is dropping off, competition is increasing. The company's approach remains consistent: to protect customer relationships and dealer profitability in key regions. The company aims to allow dealers to compete effectively and retain their share of the business without engaging in irrational pricing behavior.

A：The combination of a competitive pricing environment with cost increases can put pressure on margins, which the company is observing but working to manage by controlling what they can and protecting key relationships.

A：If the competitive environment remains stable and sales volume continues to drop, it is likely that the pricing environment will also become more competitive.

A：The savings of about $4 million in unallocated corporate expenses are a result of teams managing discretionary spending and the timing of expenses wisely, as well as restructuring actions that will yield savings in fiscal 2027.

A：The most recent product introductions have generated significant market interest and were discussed at trade shows. The company is working on late stages of approvals for some products but can't comment on that. The final release of these products has contributed to the growth trend in the safety segment.