All the companies in the sector we rate are carrying a stable outlook. This compares with 83.5% for rated EMEA capital goods companies (8.9% carry a positive outlook and the remaining 7.6% a negative one). At the same time, Nordic companies such as Epiroc, Metso, Husqvarna, Assa Abloy, and Dometic have seen rating headroom decrease owing to increased debt, given past acquisitions in a less supportive market. For 2025, we anticipate muted growth overall, owing to relatively high interest rates affecting investment decisions and still subdued consumer spending. We also expect lower restructuring costs, resulting in our expectation of a slight improvement in S&P Global Ratings-adjusted EBITDA margins to 20.0%-21.0% on average from 19.0%-20.0% expected for 2024.