CNH Industrial NV (NYSE: CNH) reported fourth-quarter 2025 financial results on Tuesday that exceeded Wall Street expectations, driven by strong performance in its construction and financial services segments. However, the company issued a cautious outlook for 2026, characterizing it as an “industry trough year” before an expected recovery in 2027.
Fourth Quarter Financial Highlights
CNH Industrial saw consolidated revenues rise 6% year-over-year to $5.16 billion, surpassing analyst estimates. Net sales from Industrial Activities grew 8% to $4.45 billion.
Profitability metrics for the quarter included:
- Adjusted Diluted EPS: Reached $0.19, beating the consensus of $0.15.
- Net Income: Reported at $89 million ($0.07 per diluted share), down from $176 million a year ago, impacted by non-cash impairment charges.
- Industrial Free Cash Flow: The company generated $817 million, supported by a $200 million reduction in agricultural dealer inventory.
Full-Year 2025 Performance
The company’s full-year results reflected a broader cyclical downturn in the agricultural sector.
- Annual Revenue: $18.10 billion, a 9% decline from 2024.
- Adjusted Net Income: $703 million, with an adjusted diluted EPS of $0.55.
- Operational Savings: CNH achieved $230 million in cost savings through quality and operational excellence initiatives, keeping it on track for its $550 million target by 2030.
Segment Performance
Agriculture: Net sales rose 5% in Q4 to $3.6 billion, though full-year sales fell 12%. While North American demand for large tractors plummeted 31%, the segment benefited from favorable pricing and lower dealer inventory, which was reduced by $800 million over the full year.
Construction: This segment was a bright spot in Q4, with net sales jumping 19% to $853 million, fueled by strong volume in North America. However, adjusted EBIT margins for the segment tightened to 0.6% due to higher product costs.
Financial Services: Net income rose 18% to $109 million in the quarter, supported by higher interest margins and a managed portfolio of $28.6 billion.
2026 Guidance: Navigating the Trough
Management warned that 2026 will be a “trough” for the industry, forecasting a further 5% decline in global agricultural retail demand.
“Our teams executed with discipline, focusing on what we can control while supporting our customers through dynamic economic conditions,” said CEO Gerrit Marx. “In this industry trough year… CNH is moving fast in its transformation.”
Key 2026 Targets:
- Adjusted Diluted EPS: $0.35 to $0.45, reflecting continued market pressure.
- Industrial Net Sales: Expected to be flat to down 4%.
- Adjusted EBIT Margin: Forecasted between 2.5% and 3.5%.
CNH remains focused on its “Iron + Tech” strategy, planning 12 new precision technology releases and further dealer consolidation to improve efficiency ahead of a projected market rebound in 2027.