CNH Industrial N.V. Reports First Quarter 2026 Results
relleaseid Jumat, 01 Mei 2026 10:42 WIB
Consolidated revenues for the first quarter of 2026 were $3.8 billion, flat year-over-year including favorable currency impacts
Reported net income of $10 million and adjusted net income(1) of $21 million
First quarter diluted earnings per share at $0.01
Full-year guidance reaffirmed
Basildon, UK - April 30, 2026 - CNH Industrial N.V. (NYSE: CNH) reported Net income for the three months ended March 31, 2026, of $10 million, with diluted earnings per share of $0.01, compared with Net income of $132 million and basic earnings per share and diluted earnings per share of $0.10 in Q1 2025. Adjusted net income(1) for the first quarter of 2026 was $21 million compared to $132 million for the first quarter of 2025.
Consolidated revenues for the first quarter ended March 31, 2026, were $3.83 billion and Net Sales of Industrial Activities were $3.17 billion, both flat with Q1 2025.
Net cash provided by operating activities was $35 million, and Free cash flow absorption of Industrial Activities was $589 million in Q1 2026.
Income tax expense was $4 million ($47 million in Q1 2025) with an effective tax rate ("ETR") of 30.8% (29.0% in Q1 2025). The adjusted ETR(1) was 20.0% for the first quarter (29.0% in Q1 2025).
"While the first quarter reflected historically low North American agricultural equipment demand, a complex trade environment, and ongoing challenges in Brazil, our performance was consistent with expectations," said Gerrit Marx, Chief Executive Officer of CNH. "The team stayed disciplined by managing production carefully, holding channel inventories steady, and delivering positive price and product cost performance through operational efficiency and quality improvements. We believe the industry is moving through the lowest period of the current agriculture cycle, assuming global trade routes are open. Our focus remains on positioning CNH for the market recovery ahead, supporting our customers with strong products and technology, and creating durable, long-term value."
In North America, first quarter industry sales volume was down 7% year-over-year for tractors under 140 HP and fell 27% for tractors over 140 HP; combines were down 6%. In Europe, Middle East and Africa ("EMEA"), tractor demand increased 2%, while combine demand decreased 5%. South America saw tractor demand down 8% and combines down 33%. In Asia Pacific, tractor demand increased 21%, while combine demand decreased 16%.
Agriculture net sales were flat year-over-year in the quarter at $2.6 billion, a result of positive foreign exchange impacts and favorable price realization, offset by lower volumes in all regions except EMEA.
Adjusted EBIT(1) decreased to $27 million from $139 million in Q1 2025, primarily due to lower volumes in North America and South America, the impact of tariffs, higher Selling, general and administrative expenses ("SG&A") and Research and development expenses ("R&D") and lower joint venture results. SG&A expenses were impacted by higher variable compensation and labor inflation. R&D expenses represented 7.9% of sales in Q1 2026 (6.3% in Q1 2025).
Construction
Global industry sales volume for construction equipment increased 7% year-over-year in the first quarter for Heavy equipment and 5% for Light equipment. Aggregated demand increased 4% in North America, 6% in EMEA, 7% in Asia Pacific, and was flat in South America.
Construction net sales decreased 3% in the quarter to $574 million, driven by lower volumes in South America and North America.
Adjusted EBIT(1) decreased to $(28) million from $14 million in Q1 2025, primarily due to the impact of tariffs, higher SG&A expenses and lower volumes, only partially offset by pricing. SG&A expenses were impacted by trade show marketing costs, higher variable compensation, and labor inflation.
Financial Services
Financial Services revenues decreased 1% in the quarter, driven by lower volumes across all regions except APAC, reduced equipment sales due to fewer operating lease maturities, and lower yields in EMEA, partially offset by favorable currency translation and higher yields in South America and North America.
Net income was $74 million in the quarter, a decrease of $16 million versus Q1 2025, driven by higher risk costs in Brazil and lower volumes across all regions except APAC. Results were partially offset by interest margin improvements in all regions except EMEA.
The managed portfolio (including unconsolidated joint ventures) was $28.0 billion as of March 31, 2026 (of which retail was 71% and wholesale was 29%), flat compared to March 31, 2025 (down $1.0 billion on a constant currency basis(2)).
At March 31, 2026, the receivable balance greater than 30 days past due as a percentage of receivables was 3.5% (2.3% as of March 31, 2025), due to economic and environmental factors impacting farmers, specifically in South America.
2026 Outlook
Farmers continue to face challenging market dynamics, including low commodity prices, high input costs, and an uncertain trade environment. CNH's Agriculture segment has and will continue to respond to these market dynamics by maintaining low production levels, working with its dealer network to lower channel inventory, pursuing cost efficiencies, and managing rapid changes in trade policies. CNH's Construction segment will continue to focus on quality, manufacturing efficiencies, and tariff cost offset opportunities.
While rapid changes in tariff and transportation costs create headwinds for CNH, the Company is confident that its sales execution, cost discipline, and manufacturing performance will allow it to deliver the forecast previously communicated.
Consequently, the Company is reaffirming its 2026 outlook:
* Agriculture segment net sales down 5% to flat year-over-year, including +2% currency translation effects
* Agriculture segment adjusted EBIT margin between 4.5% and 5.5%
* Construction segment net sales about flat year-over-year, including +1% currency translation effects
* Construction segment adjusted EBIT margin between 1.0% and 2.0%
* Free Cash Flow of Industrial Activities(3) between $150 million and $350 million
* Adjusted diluted EPS(3) between $0.35 to $0.45
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