Margin transformation through operational execution
Adj. operating income margin*
200-400 bps
Access | +30-120 bps •
~12-14%
Resilience through cost management • Innovation driving margin expansion Vocational | +30-110 bps • Capacity expansion and operational initiatives to accelerate backlog delivery • Disciplined price-cost Transport | +140-150 bps • NGDV production ramp • Updated pricing mechanisms on programs
~10%
2025 (1)
Scale benefits
Cost reduction
Price/ cost
NPD investments
2028 (target)
* Non-GAAP estimates. See appendix for reconciliation to GAAP results. Note: All estimates exclude future M&A activities. (1) 2025 figures reflects guidance provided on 1/30/25, unless otherwise stated, which was before impact of tariff announcements.
Margin expansion across segments transforms returns
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