Company Reports

CNH Industrial has a somewhat complicated history dating back to 2013 when the legacy Case New Holland business was combined with the nonautomotive activities of Italy’s Fiat Group to form CNH Industrial. After the pandemic, CNH’s management decided to further separate the company’s off-road and on-road assets. This resulted in the 2022 demerger of Iveco Group, which represented the remaining “on-road” commercial vehicle and powertrain assets. Remaining CNH Industrial is now focused on its agriculture business (most of its industrial sales), construction, and the captive finance subsidiary. Management is also exploring construction options, which are subscale and weigh on group returns.

CNH Industrial has a somewhat complicated history dating back to 2013 when the legacy Case New Holland business was combined with the nonautomotive activities of Italy’s Fiat Group to form CNH Industrial. After the pandemic, CNH’s management decided to further separate the company’s off-road and on-road assets. This resulted in the 2022 demerger of Iveco Group, which represented the remaining “on-road” commercial vehicle and powertrain assets. Remaining CNH Industrial is now focused on its agriculture business (most of its industrial sales), construction, and the captive finance subsidiary. Management is also exploring construction options, which are subscale and weigh on group returns.

CNH Industrial reported 3% growth in industrial activities to $4.1 billion and a 35% decline in EPS to $0.11 from $0.17 in the second quarter. Sales were more resilient than expected, and margins were affected by mix and tariffs.

CNH Industrial reported flat sales of $3.2 billion in its industrial activities and an operating loss of $45 million (negative 1.4% margin). Although the results looked weak, management shared additional details that supported their 2026 guidance.

CNH Industrial has a somewhat complicated history dating back to 2013 when the legacy Case New Holland business was combined with the nonautomotive activities of Italy’s Fiat Group to form CNH Industrial. After the pandemic, CNH’s management decided to further separate the company’s off-road and on-road assets. This resulted in the 2022 demerger of Iveco Group, which represented the remaining “on-road” commercial vehicle and powertrain assets. Remaining CNH Industrial is now focused on its agriculture business (most of its industrial sales), construction, and the captive finance subsidiary. Management is also exploring construction options, which are subscale and weigh on group returns.

CNH Industrial has a somewhat complicated history dating back to 2013 when the legacy Case New Holland business was combined with the nonautomotive activities of Italy’s Fiat Group to form CNH Industrial. After the pandemic, CNH’s management decided to further separate the company’s off-road and on-road assets. This resulted in the 2022 demerger of Iveco Group, which represented the remaining “on-road” commercial vehicle and powertrain assets. Remaining CNH Industrial is now focused on its agriculture business (most of industrial sales) with construction, and the captive finance subsidiary. Management is also exploring options for construction, which is sub-scale and weighs on group returns.

CNH Industrial has a somewhat complicated history dating back to 2013 when the legacy Case New Holland business was combined with the nonautomotive activities of Italy’s Fiat Group to form CNH Industrial. After the pandemic, CNH’s management decided to further separate the company’s off-road and on-road assets. This resulted in the 2022 demerger of Iveco Group, which represented the remaining “on-road” commercial vehicle and powertrain assets. Remaining CNH Industrial is now focused on its agriculture business (most of industrial sales) with construction, and the captive finance subsidiary.

CNH Industrial reported 2025 results with the agriculture segment revenue of $12.4 billion, down 12%, and construction revenue of $2.9 billion, down 3%. Adjusted EPS of $0.55 was down 48% as the company digested cyclical weakness and tariff pressures.

CNH Industrial has a somewhat complicated history dating back to 2013 when the legacy Case New Holland business was combined with the nonautomotive activities of Italy’s Fiat Group to form CNH Industrial. After the pandemic, CNH’s management decided to further separate the company’s off-road and on-road assets. This resulted in the 2022 demerger of Iveco Group, which represented the remaining “on-road” commercial vehicle and powertrain assets. Remaining CNH Industrial is now focused on its agriculture business (74% of sales) with construction (16%) and the captive finance subsidiary (10%).

CNH reported a 7% decline in industrial net sales and a 64% decline in adjusted net income as agriculture volumes continue to be weak and weighed down by tariffs. 2025 EPS guidance was reduced by 15% at the midpoint.

CNH Industrial has a somewhat complicated history dating back to 2013 when the legacy Case New Holland business was combined with the nonautomotive activities of Italy’s Fiat Group to form CNH Industrial. After the pandemic, CNH’s management decided to further separate the company’s off-road and on-road assets. This resulted in the 2022 demerger of Iveco Group, which represented the remaining “on-road” commercial vehicle and powertrain assets. Remaining CNH Industrial is now focused on its agriculture business (74% of sales) with construction (16%) and the captive finance subsidiary (10%).

CNH Industrial's second-quarter revenue fell 16% year over year and EBIT fell 55% due to ongoing weakness in its agriculture and construction end markets. Guidance for 2025 was maintained on strong cost controls and modest pricing despite ongoing tariff uncertainty.

CNH Industrial reported first-quarter results with sales declining 21% to $3.8 billion, industrial EBIT declining 73% to $101 million, and adjusted EPS of $0.10. These results were well telegraphed by management given the ongoing weakness in agriculture markets. Management continues to slash current production to clear inventory out of the channel, highlighting a $100 million decline when the business would otherwise be growing inventories in a normalized environment.

After taking a fresh look at a major global player in agricultural machinery and construction equipment, CNH Industrial, we’ve raised our fair value estimate to $21 per share from $14.70 to reflect our more constructive view on the company’s ”fast follower” strategy behind market leader, Deere. We’re maintaining our narrow economic moat rating and Standard Capital Allocation Rating.

CNH Industrial has a somewhat complicated history dating back to 2013 when the legacy Case New Holland business was combined with the nonautomotive activities of Italy’s Fiat Group to form CNH Industrial. After the pandemic, CNH’s management decided to further separate the company’s off-road and on-road assets. This resulted in the 2022 demerger of Iveco Group, which represented the remaining “on-road” commercial vehicle and powertrain assets. Remaining CNH Industrial is now focused on its agriculture business (74% of sales) with construction (16%) and the captive finance subsidiary (10%).

CNH continues to navigate a challenging operating environment, as demand for its agriculture and construction equipment remains tepid. Fourth-quarter revenue declined 28% year over year to $4.9 billion while adjusted EPS fell 62% to $0.15. Management expects revenue to decline again in 2025.

Sales from industrial activities (excluding financial services) plunged 25% year over year to $4 billion, with adjusted EBIT margin narrowing 340 basis points to 8.4%. CNH management now sees full-year sales down 22%-23% (versus a 15%-20% decline previously) with adjusted EPS roughly 20% lower.

Narrow-moat-rated CNH Industrial reported second-quarter revenue and earnings per share that were modestly above FactSet consensus estimates. But management's downward-revised guidance for full-year revenue, adjusted EPS, and free cash flow fell below our prior projections. After updating our forecast for weaker near-term results, we've lowered our fair value estimate about 4% to $14.70 per share.

CNH Industrial provides customers with an extensive portfolio of off-highway products. We believe it will continue to be a top-two player in the agriculture industry. For generations, the company’s agriculture equipment has garnered intense brand loyalty among farmers. Customers value CNH’s high-quality and strong-performing products, in addition to its robust dealer network. In developed markets, CNH helps customers reduce the total cost of ownership through improved fuel efficiency, limited machine downtime, and consistent parts availability.

CNH Industrial provides customers with an extensive portfolio of off-highway products. We believe it will continue to be a top-two player in the agriculture industry. For generations, the company’s agriculture equipment has garnered intense brand loyalty among farmers. Customers value CNH’s high-quality and strong-performing products, in addition to its robust dealer network. In developed markets, CNH helps customers reduce the total cost of ownership through improved fuel efficiency, limited machine downtime, and consistent parts availability.