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Ahmed Moghal

Thanks, Lorenzo. I'll begin on slide 8 with an overview of our consolidated results and then speak to segment performance before providing details of our exposure to evolving trade policy and tariffs. I'll also provide a quick summary of our outlook before handing it back to Lorenzo for final comments.
As Lorenzo mentioned, orders got off to a solid start to the year, booking $6.5 billion for the total company and included $3.2 billion in IET.
Adjusted EBITDA increased by 10% year over year to $1.04 billion driven by strong IET revenue growth and continued margin expansion across both segments. GAAP diluted earnings per share were $0.40. Excluding adjusting items, earnings per share were $0.51, an increase of 19% when compared to the same quarter last year.
We generated free cash flow of $454 million for the quarter. For the full year, we continued to target free cash flow conversion of 45% to 50% with the normal weighting towards the second half of the year.
Turning to capital allocation on slide 9. Our balance sheet remains in a very strong position, ending the first quarter with cash of $3.3 billion, a net debt to EBITDA ratio of 0.6 times and liquidity of $6.3 billion.
Our next debt maturity is not until December 2026, and S&P recently upgraded our long-term credit rating to A. We returned $417 million to shareholders in the first quarter. This included $229 million of dividends and $188 million of share repurchases. We remain committed to returning 60% to 80% of free cash flow to shareholders.
I will now highlight the results for both segments starting with IET on slide 10. During the quarter, we booked solid IET orders of $3.2 billion. This included $510 billion for LNG equipment, $104 million for data centers, and record gas tech service upgrades of $272 million.
Book-to-bill was 1.1 times, resulting in IET RPO of $30.4 billion that reached a new record. This RPO level and a structural growing installed base provides significant revenue visibility for IET over the coming years.
IET revenue increased by 11% year over year to $2.9 billion led by a 20% increase in gas tech equipment and 114% growth in climate tech solutions partially offset by GasTech Services. IET growth significantly outpaced segment revenue, increasing 30% year over year as margins expanded by 240 basis points to 17.1% despite mixed headwinds. This performance was driven by a strong margin expansion in gas tech equipment supported by productivity from project closeouts.
IET continues to benefit from the lean strategies being adopted across operations that are driving structural margin improvement. Turning to OFSC on slide 11, OFSC revenue in the quarter was $3.5 billion down 10% sequentially as we experience enhanced seasonal weakness across many international markets. Economic and tariff uncertainty to start the year resulted in customers delaying discretionary spending, primarily impacting direct equipment sales.
In international markets, revenue declined 11% sequentially, driven by a significant slowdown in activity in Mexico. Rig activity in Mexico declined sequentially by 52%, now down 72% from 2023's peak levels. Excluding Mexico and SSPS, international revenue was down 7% sequentially, more aligned with typical seasonal declines.
In North America, revenue declined 5% sequentially, driven by seasonal weakness in offshore. North America land was down 3% as strength in drilling services and drill booths were offset by lower revenue across most other businesses. OFSE EBITDA margin rate was 17.8%, improving 80 basis points year over year, even with segment revenue declining by 8%. This is a testament to the team's hard work to structurally change the way we operate.
Due to the previously mentioned Mexico weakness and delays in discretionary customer spending, segment IET of $623 million was between the low and mid-point of our guidance range.
Turning to slide 12, I want to walk through our outlook and how the current environment could impact performance. I'll begin by outlining the potential tariff impacts to Baker Hughes, then walk through our full year framework and conclude with detailed guidance for the second quarter.
While the situation remains fluid, we have been conducting comprehensive scenario planning exercises and continue to develop and implement mitigation strategies to manage through this period of volatility. In our OFSE segment, our strong international presence provides us a degree of protection against tariff impacts, since approximately 80% of segment revenue is derived from markets outside the US.
Domestically, we benefit from a broad US manufacturing footprint and a resilient local supply chain. However, we do expect some cost headwinds tied to imports from China, Germany, and the UK. We also source some oil fuel components and chemicals from Canada and Mexico, a portion of which qualify under USMCA provisions.
To reduce reliance on these imports for OFSE, we have been working with US supply chain partners to increase domestic sourcing.
Additionally, we have engaged with customers on cost recovery initiatives which have led to encouraging outcomes to date. Within IET, we have identified three areas of tariff exposure. First, a portion of industrial tech US volumes exported to China may be impacted by new trade policies. Second, we supply critical equipment to US projects from our facilities in Italy, although this backlog has limited exposure due to existing contractual terms.
Third, we anticipate modest impact from steel and aluminum tariffs, as well as US-China trade activity. Similar to OFSC, we're deploying several mitigation strategies within IET, including exploring domestic procurement alternatives to reduce input costs and optimizing our global manufacturing footprint.
We expect these actions combined with continued productivity gains will largely offset the tariff-related impacts. After accounting for these offsets across both segments, we estimate a net EBITDA impact in the range of $100 million to $200 million.
This assumes current tariff rates applied during the 90-day pause period continue for the remainder of 2025. Beyond direct impacts, we are also monitoring secondary effects such as more cautious customer behavior and the potential for broader economic weakness, factors that remain difficult to quantify.
A further slowing of customer spending could affect our more economically sensitive areas, such as direct sales and transactional services in OFSE and industrial tech in IET.
Turning to our 2025 outlook, we use this tariff outline to help shape our framework for the full year. As visibility on trade policy and the broader market dynamics improve, we will provide further updates as we progress through the year.
In IET, we believe our diversified portfolio, substantial IET backlog, and sizable aftermarket services business provide earnings and cash flow stability during this period of uncertainty. In the current environment, IET's lean mindset and process-driven culture should continue to deliver structural margin improvement even in the face of higher input costs.
As we balance our current view, we believe the IET EBITDA guidance range communicated in January remains achievable. In OFSE, visibility beyond the second quarter remains limited. If oil prices and tariffs hold at current levels, we expect global upstream spending to decline in the high single digit range for 2025.
Under this scenario, we believe OFSE margins will still improve year over year, driven by cost efficiency and continued execution of transformation initiatives. As this framework illustrates, our 2025 outlook reflects pressure from market sensitive elements of OFSE while IET is expected to deliver strong growth compared to last year.
Turning to the second quarter, we expect total revenue of $6.3 billion to $7 billion and total EBITDA of approximately $1.04 billion to $1.2 billion. This guidance assumes we can partially offset tariff impacts through abatement opportunities, contractual pass throughs, and other mitigation strategies.
It also assumes tariff levels remain consistent when compared to the current 90-day pause scenario. For IET we forecast EBITDA of $520 million to $580 million on revenue of $3.0 billion to $3.3 billion led by growth in gas tech services.
The major factors driving this range will be the pace of backlog conversion in GTE, the impact of any error derivative supply chain tightness, and volume levels in industrial tech. For OFSE, we forecast EBITDA of $600 million to $700 million on revenue of $3.3 billion to $3.7 billion implying further margin improvement on flat sequential revenue.
We expect results to reflect a less pronounced seasonal recovery in both international and US markets due to ongoing macro uncertainty and recent oil price weakness. Factors driving the range include execution of our SSPS backlog, the impact of near-term activity levels in North America and international markets, and the pace of activity in Mexico.
In summary, we're pleased with the company's operational performance during the first quarter. OFSE margins remained resilient despite upstream market softness, while IET margins continued progressing towards 20%.
Although our outlook is tempered by macro and trade policy uncertainty, we remain focused on elements we can control, continuing to streamline operations and drive efficiencies that will benefit us well beyond the cycle. With that, I'll turn the call back over to Lorenzo.

Lorenzo Simonelli

Thank you, Ahmed. Our strong first quarter results demonstrate the progress we've made in transforming our operations and streamlining the organization. This has created a solid foundation to further optimize margins and enhance returns even in a challenging environment.
Looking beyond near-term macro uncertainty, we continue to believe in the structural growth of global energy demand. An outlook that underpins our strategy and anchors Baker Hughes' long term value creation.
The world needs more energy with fewer emissions, and we see natural gas playing a fundamental role in achieving this dual objective. To conclude, thank you to the entire Baker Hughes team for yet again delivering outstanding results. As we continue our journey to take Baker Hughes and energy forward, we remain committed to our customers, shareholders, and employees. With that, I will turn the call back over to Chase.

Chase Mulvehill

Operator, we can now open up for questions.

Question and Answer Session

Operator

(Operator Instructions) Arun Jeyaram, JP Morgan.

Arun Jeyaram

Yeah, good morning. My question is regarding guidance. We appreciate the fact there's a lot of uncertainty associated with tariffs and OPEC plus policy. It makes sense to us, Lorenzo, you shifted to a hybrid called pragmatic approach to the guide, with the explicit guide for two.
I guess, my question is you've highlighted $1 million to $200 million of tariff impacts this year. I know that you had on the fourth quarter call had a guidance range of $4.7 billion at the low end, $4.95 billion at the midpoint. I was wondering if you could highlight any confidence you have, Lorenzo, mid around caught the low end of the guide if we factor in some of the tariff impacts and the fact that IET looks largely intact.

Lorenzo Simonelli

Yeah, hi, Arun, and thanks. I appreciate the question. An important topic, and we'll break it down into really. I'll start off and then let Ahmed maybe walk you through the framework and then also specifically respond to the question and I'll come back at the end because I think it's important that everybody's clear on what we're saying here. As I noted in my prepared remarks, the global economy has experienced a cautious start driven by the ongoing geopolitical tensions, some of the trade policy and tariff uncertainty, slow growth in China, and persistent inflationary pressures.
So far in the second quarter and also what you saw with our good results in the first quarter, we've not experienced the material impact of volumes or activity levels. We do recognize though there's growing uncertainties around the trade policy and tariffs that's creating, some uncertainties for our customers as well as for Baker Hughes. So as a result, we've got less visibility into the second half of the year across our more economically sensitive businesses such as drilling and completion service lines, US land, short cycle oil field services and international, and the GDP-like industrial tech businesses.
So given the wide range of potential outcomes on the trade policy and tariff outcomes and their impact, we thought it was important to provide a framework that allows you to look at 2025, and once there's greater clarity in the external environment, we intend again to provide formal full year guidance ranges for the company, and I'll pass it to Ahmed to give a little bit more detail on the aspects of the framework.

Ahmed Moghal

Yeah, Arun, let me just start by, talking through the framework itself. So I'll start with the key points around tariffs. Under the current set of trade policies, we understand the direct implications for our business and have been implementing, as you heard several mitigation actions. So after accounting for those potential offsets across both segments, we estimate a net EBITDA impact in the range of what we mentioned of $100 million to $200 million which includes both direct costs as well as revenue-related impacts, and I'd say just over half is attributed to IET.
And the primary factor behind that range is actually the timing and effectiveness of our mitigation actions. So the estimate assumes the current tariff levels are in effect during the 90-day pause period and remain in place through year end. And as a result, our estimate doesn't really include the secondary effects from tariffs like lower oil prices, broad economic weakness, which could ultimately have a larger impact on our results than just the direct inflationary cost pressures.
But of course, the trade policy and the tariff environment worsens, then we'll need to reassess and likely adjust the estimated impact accordingly. So how this translates to the segments, so I'll start with IET. IET is reasonably well positioned to manage through this environment. While tariff-related costs, inflation, we expect it to impact the segment of force, the effect is largely concentrated in the industrial tech side of the segment. And at this stage, we assume that continued productivity gains that you've seen in gas tech are expected to offset much of that inflationary pressure within the industrial tech side of the house.
And also in industrial tech, which accounts for just as a reminder, about 25% of IET revenues, we could face potential headwinds from slowing GDP growth. In addition to the inflationary pressures that we've talked about, but taking all of that into account, we continue to view our 2025 total year IET, EBITDA guidance range of $2.2 billion to $2.4 billion as achievable. So then you go on to OFSC and ultimately OFSC, as Lorenzo mentioned, faces a broader range of outcomes, which limits the visibility beyond the current quarter, so second quarter.
Now we expect North American upstream spending to decline in the low-double digit range and international spending to decline by mid-to-high single digits. But despite that deterioration in the overall market, we remain focused on optimizing cost structure, limiting duplication to protect margins, and you've seen us do that even as market conditions soften.
Now as to your last question about holding the $4.7 billion EBITDA level for the year, we believe that we could approach that EBITDA level if the tariff-related impacts lend towards the lower end of that $100 million to $200 million dollar range, and oil prices stabilize and tariffs hold at the current 90-day pause rates.

Lorenzo Simonelli

So Arun, maybe just to conclude, because I think this is a very fluid situation and everybody is approaching this differently. I just wanted to maybe add a couple of quick points here and the hybrid model that we've laid out is really to provide a lot of transparency. And if you look at the conclusion on the IET side, we said our guidance ranges are still achievable. On the OFSE side, it's more of a framework given some of the higher level of uncertainty. Ultimately, we believe there's still a path for our full year results to approach the low end of our guidance range, and we'll continue providing updates, being transparent, and also clearly managing the fluid environment that we're in. So appreciate the question.

Operator

Thank you. Stephen Gengaro with Stifel.

Stephen Gengaro

Thanks. Good morning, everybody. So after what, three years, very strong years of IET orders, you're off to a good start in 2025 and you had those significant data center orders as well.
Can you talk about the opportunity for Baker on the data center side, and maybe also share thoughts on how you think the macro could impact the IET order flow this year?

Lorenzo Simonelli

Definitely, Stephen, and thanks. IET did have a solid start to the year for orders booking $3.2 billion in the first quarter, as you mentioned.
And without LNG equipment, IET orders still totaled $2.7 billion which continues to demonstrate the depth and versatility of the IET portfolio for the full year. We're sticking to the guidance that we laid out at the beginning of the year to be in the range of $12.5 billion and 14.5 billion. We continue to feel good about the LNG outlook and the data center opportunities which are gaining momentum. I think as you look at highlight during the first quarter record levels of also gas tech services upgrades, a trend that looks like it will continue, and we're really not seeing customers pull back from LNG gas infrastructure or the data center projects, and we're staying very close to them.
And monitoring things just to highlight on the LNG momentum during the quarter, we booked an order for liquefaction equipment in North America. Also booked a gas infrastructure order for feed gas compression from a major US LNG operator. And we expanded our relationship with next decade to cover five more trains at Rio Grande and signed an agreement with Argent LNG to support their proposed 24 MTPA facility. So over the past two quarters, we secured $1.7 billion in LNG orders, and that speaks to our leading position in LNG and reinforces the positive outlook for the year and the growing confidence we have in LNG orders, that's supported by long term equipment supply agreements with strategic operators including Venture Global in the next decade.
So as you look at overall, we've got a growing number of LNG customers and we have supply agreements in place for over 120 MTPA of LNG and we've seen a good increase in off-take agreements and equity investments by LNG players which further strengthens our confidence on the outlook for this year and beyond. So as you look at 2025 and also 2026, again, we feel good about the 100 MTPA of FIDs that make us reach the 800 MTPA by 2030, and we also think we'll surpass that 800 MTPA as we go beyond 2030. So LNG continues to be good. On data centers, I think a great example of what we've discussed before, really showcasing IET's expanding reach in industrial areas and the diversity of the portfolio.
And looking at external factors, we continue to see strong pickup in demand as you look at McKinsey, they see US data center energy demand by 2030 that's increasing at 23% CAGA rate. And we're continuing to see strong interest in the capability that we have across the Baker Hughes portfolio given OFSC and IET to provide decarbonisation solutions and power generation, and the great example is frontier infrastructure that we announced which again provides the development of large scale CCS and power solutions for data centers.
And it's their first development end to end solution turbines, CO2 storage, well designed construction. So we feel good that, that's going to continue and the enterprise-wide solutions we can provide are a key differentiator. As you look at Nova LTs, the industrial gas turbines that we have booked over 350 megawatts across multiple customers during the quarter. And we have multiple use cases for data centers, not just base load, but also bridge to back up, temporary power, and for gas power generation, our focus is on the 150 megawatt range or below, and that really suits well the Nova gas turbines as well as being able to provide our subsurface, the surface geothermal solutions in the 5 megawatt to 80 megawatt range.
So we're continuing to increase the capacity of the Nova LT and we're seeing good traction with our customers and over the next three years, we expect to book at least $1.5 billion of orders in data center equipment. And long term we think data centers could be a meaningful growth driver for IET as well as overall for the enterprise solutions we have and also reoccurring aftermarket services over the rest of the life of the equipment. So data centers is a key area of focus. Thanks, Stephen.

Operator

Thank you. Scott Gruber, Citigroup.

Scott Gruber

Good morning and I appreciate all the tariff color. Can you just provide some more color on the mitigation initiatives that you're undertaking? I imagine some levers, can be pulled, fairly quickly. Some are probably longer dated, especially if you're shifting manufacturing locations. And how much mitigation is embedded in the $100 million to $200 million impact and is there an ability to squeeze that figure lower over time, assuming a status quo environment for the tariffs? Thanks.

Ahmed Moghal

Yeah, hi, Scott. So look, I'll start with one thing to keep in mind is just reinforcing that we have a strong international mix in the company and it's not just from a customer perspective but also from our global supply chain footprint and that naturally limits our exposure to direct US tariffs. But for context, we purchased roughly $14 billion in direct and indirect materials annually. Of that, we imported less than 5% into the US and under 2% comes from China.
So -- and if you last remember, this global footprint served us well during the last round of tariffs implemented in 2018. So as we mentioned in the prepared remarks, we've taken proactive steps to develop mitigation strategies, and that's what's helping reduce the net impact down of direct tariffs to the $100 million to $200 million range.
So as an example, we've established a centralized co-ordination hub with leaders from many different functions, the supply chain, legal, commercial, government relations tax, just to name a few where we're monitoring develops and acting quickly to implement things and also adjust as things evolve. And so, when you really double click into the actual mitigation, there are really two aspects that we're working through. First, there's the direct sourcing costs tied to imports into the US, most of which come from places like I mentioned, Germany, UK, China, Canada, and Mexico.
So in that, we're taking, I would say three specific actions that reduce that gross exposure. First, we're leveraging the global supply chain manufacturing footprint to better align with end markets. So we make sure we have the right things in the right places, obviously. Second, we're utilizing free trade agreements and expanding duty drawback programs where they're available. And third, I'd say is, understanding and utilizing our contract mechanisms, where pricing increases and surcharges offset some of that where possible.
So that's around the direct sourcing cost. This, the second piece we're working through is assessing the actual potential revenue exposure and that will mainly relate to US exports to China. So think about our IET industrial tech business. So at the moment, we're not assuming any mitigation success here, but we do see opportunity over time to backfill China imports with locally sourced volumes. Now, as for Italy, exposure, there is limited due to our contractual terms where customers typically take ownership of the products in Italy.
So everything I've said is focused on the direct tariff impact, but then the potential secondary effects are difficult to quantify, as we said at this point, but we're monitoring them quite closely and they would show up in the more transactional side of the business. So OFSE in parts of industrial tech.
But in summary, as I step back and look at this with our diversified portfolio, the global supply chain footprint I've talked about, the IET backlog, the aftermarket business, it really provides us a strong foundation for us to navigate in this type of environment and still deliver the earnings and cash flow, in this environment.

Operator

Thank you. Saurabh Pant with Bank of America.

Saurabh Pant

Hi, good morning, Lorenzo, Ahmed.

Lorenzo Simonelli

Hi sir, good morning.

Saurabh Pant

Lorenzo, Ahmed, maybe I want to pivot a little bit and talk about OFSC. I know revenues were down 10%. You talked about enhanced seasonal weakness, delayed discretionary spending rate, but if you can just walk us through the key moving pieces, key geo markets and how they are moving and how should we think about them going forward through the rest of the year and ultimately what does that mean for your 20% margin target for this year? If you can step us through that would be perfect.

Lorenzo Simonelli

Sure, sir, and I'll kick it off with sort of as we see the marketplace and as I mentioned earlier, we started to see some revenue softness in Q1, and that was mainly due to deferral of discretionary spending, particularly on the international side.
Separately, Pemex put a pause on contracting activity in Mexico. And just to give you a sense of that scale, rig activity there was down 52% sequentially. That's now a 72% drop from peak levels in 2023. Outside of Mexico, we saw sharper seasonal declines in places like sub-Saharan Africa, Asia Pacific, Argentina, and Brazil. Saudi remained relatively flat quarter over quarter. We continue though to see a shift in focus from oil to gas activity.
In North America, we saw revenue come down 5% sequentially, mostly tied to offshore seasonality. Land was down slightly and largely in line with our expectations. So looking ahead, we've revised our outlook given the recent trade policy uncertainty and all price volatility. And when we first gave our view on global upstream spending, Brent was sitting in the mid $70 range, but now down to the mid-60s.
So based on where we see things stand, we expect global upstream spending to be down high single digits this year and breaking that down, international upstream spending expected to decline mid-to-high single digits. North America expecting a low-double digit decline. And all of this assumes oil prices stabilize around current levels and that the tariffs hold at the current levels under the 90-day pause.
Obviously, if that changes on the pricing of the tariffs, then there'll be some potential further downside we have to anticipate and that's the market outlook that we see, and I'll pass it over to Ahmed on the 20%.

Ahmed Moghal

Yeah. So on the margin question, look, I'd like to step back and just remind everyone of the margin progress OFSE has made over the past few years. So when we introduced this 20% target back in September of 2022, OFSE margins were below 15%. And in the second half of last year, margins averaged about 19.5%. So there's clear progress that reflects the work the team's been doing on structural improvements, and we remain focused on what we control, and we're still committed to the 20% margin milestone. But, however, we didn't envisage an environment where upstream spending would be down nearly 10% after a year of flattish levels.
So for the second quarter, we still expect margins to improve sequentially by 80 basis points, reaching around 18.6%, and we're starting to see, and we saw some of that come through already of a portion of the benefits from the restructuring actions we announced in the fourth quarter of last year. So most of the benefits will show up in the second half and should provide some of that insulation and further margin uplift.
And driving that measured margin expansion in the real in this environment is a real testament to the transformation that work that we've been doing. But that said, the ultimate pace of improvement will depend on, as Lorenzo said, how tariffs play out and how the broader upstream environment evolves.

Lorenzo Simonelli

I think, sir, you can just look at it from a standpoint of we're focused on the elements we control, that margin accretion that we've seen also in the first quarter for OFSC, that 20% is what we're continuously aiming for, and we're going to execute what's in our control and continue to drive the transformation as we've laid out and continue that progression.

Operator

Thank you. David Anderson, Barclays.

David Anderson

Thanks. Good morning, Lorenzo and Ahmed. A similar vein on the IET side is interested in margin progression here and some of the variables you're thinking about as you look at your target. So better pricing and improved efficiency seem to be really showing up in the first quarter results. So what drives expansion from here? Is it just more efficiency gains from faster backlog conversion? And do you still hope to -- do you still expect to hit 18% margins this year and 20% next year in light of the headwinds with tariffs and potentially maybe even services slowing down a little bit in this environment?
Thank you.

Ahmed Moghal

Yeah, hey Dave, how are you? So look, I'd say, looking ahead we do expect, second quarter margins to increase again. The sequential increase though will be more modest compared to revenue for a few reasons. First, we had some project closeouts in first quarter that helped margins, so that's part of the natural flow of RPO and as we execute through that.
Second is, when you look at the industrial tech business and what we mentioned about tariffs, you find that there'll be some modest margin pressure on that side as we go through. So and then lastly, from a sequential standpoint, the risk on China and US trade volume that we highlighted within industrial tech and that business carries high gross margins. So any reduced volume there could impact overall IET margins. So we've tried to capture our best estimate for how those reduced high margin IET volumes and higher tariff costs will impact second quarter.
So that is in the second quarter guide. And then when you look out actually into the second half of the year, we still anticipate year-over-year margin progression. But we anticipate that pace of improvement will be a little bit more measured as you compare it to the first half. So second half of this year, the second half of 2024, of course. So if you look at our January IET guidance ranges, our EBITDA margin midpoint was 18%. So this is a level we still think it's achievable. It reflects the net tariff impacts that we have laid out today, which will be mostly offset as I mentioned by execution of two things really, higher margin gas tech equipment backlog as well as the productivity across the portfolio that the teams have been driving and you've seen go through.
So then stepping back and looking at overall for 2025, we feel good about how the business is executing and still believe the full year EBITDA guidance range is achievable based on what we're seeing today. And then when you actually look at 2026, obviously a lot can happen between now and then, but based on everything we're seeing what we know, the visibility we have and focusing on what we can control, the path to reaching 20% EBITDA margin is still there.

Lorenzo Simonelli

And Dave, remember, I mean, we've laid this out as a journey and we've showed how the installed base is increasing year over year and as you look at the progression and also what we've said from maintaining the IET guidance for the year and also that 20% margin rate for 2026 still being achievable at this stage.

Operator

Thank you. That was our last question. I will hand you back to Mr. Lorenzo Simonelli, Chairman and Chief Executive Officer, to conclude the call.

Lorenzo Simonelli

Thank you to everyone for taking the time to join our earnings call today, and I look forward to speaking with you all again soon. Operator, you may now close out the call.

Operator

Ladies and gentlemen, thank you for participating in today's conference. This concludes the program. You may all disconnect. Everyone have a great day.