CNH Industrial reported a challenging first quarter with net income and EPS significantly down year-over-year, primarily due to lower volumes in North America and South America, and the impact of tariffs. Despite these headwinds, the company reaffirmed its full-year guidance, highlighting disciplined production management, stable channel inventories, and positive price and cost performance.
Full-year guidance reaffirmed for Agriculture and Construction segments, and Free Cash Flow.
positiveAgriculture net sales were flat year-over-year, supported by positive foreign exchange impacts and favorable price realization.
neutralFinancial Services revenues decreased only 1% year-over-year, with net income down 18%.
neutralPositive price and product cost performance achieved through operational efficiency and quality improvements.
positiveNet income attributable to CNH Industrial N.V. decreased 95% to $7 million in Q1 2026 from $131 million in Q1 2025.
negativeDiluted EPS decreased to $0.01 in Q1 2026 from $0.10 in Q1 2025, a 90% decline.
negativeCash flow provided by operating activities decreased 127% to $35 million in Q1 2026 from $162 million in Q1 2025.
negativeAdjusted EBIT of Industrial Activities decreased 145% to $(45) million from $101 million in Q1 2025.
negativeAdjusted EBIT margin for Industrial Activities compressed significantly to (1.4)% from 3.2% in Q1 2025.
negativeInventories, net increased by $583 million to $5,234 million in Q1 2026 compared to December 31, 2025.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total | CC |
|---|---|---|---|---|---|
Agriculture | N/A | — | — | — | +4.0% |
Construction | N/A | — | — | — | -6.0% |
Financial Services | N/A | — | — | — | -5.0% |
| Total Revenue | $0.00M | — | — | 100.0% | — |
Segment performance shows business unit health and growth drivers. Constant currency (CC) removes FX impact for like-for-like comparison.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
| Metric | Value | Period | Specificity | vs Prior |
|---|---|---|---|---|
| dealer_inventory_reduction | $500 million | this year | point | New |
| price_and_product_cost_impact | positive | full year | directional | New |
| tariff_cost_impact_construction_margins | 600 basis points | full year | point | New |
| net_sales | flat to down 5% | FY2026 | wide_range | New |
| ebit_margin | 4.5 to 5.5% | FY2026 | tight_range | New |
| net_sales | flat | FY2026 | directional | New |
| ebit_margin | 1% to 2% | FY2026 | tight_range | New |
| industrial_net_sales | flat to down 4% | FY2026 | wide_range | New |
| industrial_ebit_margin | 2.5% to 3.5% | FY2026 | tight_range | New |
| industrial_free_cash_flow | $150-350 million | FY2026 | tight_range | New |
| adjusted_eps | $0.35-0.45 | FY2026 | tight_range | New |
| agriculture_net_sales | about flat | Q2 2026 | directional | New |
| construction_net_sales | higher in the mid-teens | Q2 2026 | directional | New |
| financial_services_net_income | lower year over year by $20 to $25 million | Q2 2026 | tight_range | New |
| dealer_inventory_reduction | lean by year end | end of year | directional | New |
| replacement_demand_support | some support | 2027 | directional | New |
| earnings | better year | 2027 | directional | New |
| revenue_and_profits | natural tailwind | next year | directional | New |
| price_cost | positive | full year | directional | New |
| dealer_inventory_reduction | $500 million further reduction | full year | point | New |
| construction_net_pricing | net negative | full year | directional | New |
| construction_ebit | above break even | Q2 | directional | New |
| price_cost_ag | positive | each quarter for the rest of the year | directional | New |
| transportation_cost_pass_through_confidence | high degree of confidence | rest of the year | directional | New |
| transportation_cost_pass_through_confidence | medium level confidence | rest of the year | directional | New |
$500 million · this year
$26 billion · During the first three months of 2026
full year · funded by free cash flow generation and proceeds from our ongoing portfolio management actions · Net Debt to Adjusted EBITDA: 1x to 1.5x
The first quarter reflected historically low North American agricultural equipment demand, a complex trade environment, and ongoing challenges in Brazil.
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.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.