CNH Industrial N.V.
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.54%.
Did CNH Beat Earnings? Q2 2025 Results
CNH Industrial delivered a better-than-expected second quarter despite a market environment defined by weak equipment demand, posting earnings of $0.17 per diluted share against a consensus estimate of $0.14, a beat of 20.57%, while revenue of $4.71 billion topped the $4.50 billion estimate by 4.58%. The headline improvement masked a sharp 14.2% year-over-year revenue decline, driven by a deliberate strategy to produce below retail demand levels in order to work off bloated dealer inventories, with production hours falling 12% and channel inventory dropping $300.00 million in the first half alone. Agriculture net sales slid 17% to $3.25 billion and adjusted EBIT margin compressed 470 basis points to 8.1%, while a $451.00 million industrial free cash flow result, improving $311.00 million year-over-year, highlighted the benefits of tighter working capital management. Financing originations also dipped amid tariff uncertainty and low commodity prices. CNH reaffirmed its full-year 2025 adjusted diluted EPS guidance of $0.50 to $0.70, though it cautioned that evolving U.S. trade policy remains a meaningful variable in the outlook.
- Lower shipment volumes due to decreased industry demand and continued dealer destocking
- Favorable net price realization in both Agriculture and Construction segments
- Lower production, warranty, and SG&A expenses partially offsetting volume declines
- Industrial free cash flow improvement of $311M YoY driven by lower net change in working capital
- Production hours reduced 12% YoY to decrease dealer inventory
“While we continued to face challenging market conditions this quarter, the CNH team's resilience and dedication allowed us to navigate through them effectively and in line with our targets. We are focused on the strategic priorities that we outlined at our recent investor day to advance our operational improvements and the investments that deliver exceptional products and technology for our farmers and builders. We appreciate the support from our suppliers as we navigate uncertain trade waters, and from our dealer network that strives for unmatched customer service as we position CNH for long-term success. I am excited for the future of CNH and sharing the journey ahead with you.”
CNH Industrial CEO, on the earnings call
Forward Guidance & Outlook
CNH reaffirmed its full-year 2025 guidance: Agriculture segment net sales down 12%-20% YoY (including -1% currency translation), Agriculture adjusted EBIT margin 7%-9%, Construction segment net sales down 4%-15% YoY (including -1% currency translation), Construction adjusted EBIT margin 2%-4%, Industrial Activities free cash flow of $100M-$500M, and adjusted diluted EPS of $0.50-$0.70. The company continues to forecast lower global industry retail sales in both agriculture and construction markets versus 2024, and plans to produce below retail demand to reduce excess channel inventory. The company highlighted significant uncertainty from the changing global trade environment and evolving U.S. tariff policies that may affect its forecast.
CNH YoY Financials
CNH Revenue by Segment
CNH Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.