CNH Industrial N.V.
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.47%.
Did CNH Beat Earnings? Q3 2025 Results
CNH Industrial delivered a mixed but broadly disappointing third quarter, with adjusted diluted EPS of $0.08 falling short of the $0.14 consensus estimate by 41.48%, even as revenues of $4.40 billion edged 4.34% above expectations despite sliding 5.5% year-over-year. The deepest damage came from the Agriculture segment, where net sales dropped 10% to $2.96 billion as North American demand weakness and persistent channel destocking compressed adjusted EBIT margin by 560 basis points to just 4.6%, with the pain compounded by a $49.00 million non-cash impairment charge tied to in-process R&D assets. Net income collapsed 78% to $67.00 million, reflecting the combined weight of lower volumes, unfavorable geographic mix, and incremental tariff headwinds the company expects to carry a net cost of $110.00 to $150.00 million for the full year. Looking ahead, CNH trimmed its adjusted diluted EPS guidance to $0.44 to $0.50, down from the prior $0.50 to $0.70 range, signaling that navigating this cyclical trough will extend well into the coming quarters.
- Lower shipment volumes on decreased industry demand in North America
- Channel inventory destocking reducing dealer inventory by $0.6B YTD
- Tariff costs from August 2025 expansion of U.S. steel and aluminum tariffs
- Unfavorable geographic mix shift from North America to EMEA in Agriculture
- Favorable net price realization partially offsetting volume declines
- Reduced production and warranty costs in Agriculture
- Higher construction shipment volumes in North America and EMEA
- Increased delinquencies in Brazil impacting Financial Services risk costs
“While the current trade environment remains challenging for our farmers and builders, CNH continues to take decisive actions to navigate near-term headwinds. We are maintaining disciplined production levels, reducing channel inventories, investing in technology, and driving operational excellence. Our commitment to quality and innovation is unwavering, as demonstrated by recent product launches and industry recognition. Looking ahead, we remain focused on achieving our long-term strategic targets. I am confident that the steps we are taking will position CNH for renewed growth and success as market conditions improve.”
CNH Industrial CEO, on the earnings call
Forward Guidance & Outlook
CNH updated its 2025 outlook to reflect incremental tariff headwinds and unfavorable geographic sales mix. Agriculture segment net sales are expected down 11%–13% YoY with adjusted EBIT margin of 5.7%–6.2%. Construction segment net sales are expected down 3%–5% YoY with adjusted EBIT margin of 1.7%–2.2%. Industrial Activities free cash flow is guided at $200–$500 million. Adjusted diluted EPS guidance was lowered to $0.44–$0.50 from the prior range of $0.50–$0.70. The company expects tariff costs of $225–$205 million in 2025, partially offset by $75–$95 million in pricing actions, for a net impact of $150–$110 million. Long-term, management expects to fully offset tariff impacts through strategic sourcing, manufacturing footprint optimization, and pricing. The 2025 global agriculture industry is forecast at approximately 85% of mid-cycle levels, with CNH sales at approximately 80% of mid-cycle due to underproduction.
CNH YoY Financials
CNH Revenue by Segment
CNH Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.