CNH Industrial Reports Q1 2026 Net Income of $10 Million as Agricultural Equipment Demand Hits Cyclical Low; Reaffirms Full-Year Outlook

Key Takeaways

• CNH Industrial N.V. (NYSE: CNH) reported Q1 2026 net income of $10 million ($0.01 diluted EPS), down from $132 million ($0.10) in Q1 2025; consolidated revenues were $3.83 billion and Net Sales of Industrial Activities were $3.17 billion, both flat year-over-year and down 4% at constant currency, reflecting historically low North American agricultural equipment demand and tariff headwinds.
• The Agriculture segment recorded Adjusted EBIT of $27 million (1.0% margin), an 81% decline from $139 million (5.4% margin) in Q1 2025, driven by lower volumes in North America and South America, tariff costs, higher SG&A and R&D expenses (R&D rose to 7.9% of sales from 6.3%), and weaker joint venture results.
• North American agricultural equipment industry volumes fell sharply in Q1 2026: tractors under 140 HP declined 7%, tractors over 140 HP fell 27%, and combines were down 6%; South America saw tractor demand drop 8% and combines fall 33%; EMEA tractor demand increased 2%.
• The Construction segment swung to an Adjusted EBIT loss of $(28) million from a profit of $14 million in Q1 2025, while Financial Services net income declined 18% to $74 million, with receivables more than 30 days past due rising to 3.5% from 2.3%, largely attributable to farm-level stress in Brazil.
• CNH reaffirmed its full-year 2026 outlook, including Adjusted diluted EPS of $0.35–$0.45, Agriculture Adjusted EBIT margin of 4.5%–5.5%, and Free Cash Flow of Industrial Activities of $150–$350 million, expressing confidence that the industry is moving through the lowest point of the current agricultural cycle.

CNH Industrial Posts Flat Revenue in Q1 2026 as Tariffs and Low Ag Demand Compress Margins

CNH Industrial N.V. (NYSE: CNH) reported Q1 2026 consolidated revenues of $3.83 billion, essentially flat with $3.83 billion in Q1 2025 and down 4% at constant currency. Net Sales of Industrial Activities were $3.17 billion, also flat year-over-year (-4% CER). Net income fell 92% to $10 million ($0.01 diluted EPS) from $132 million ($0.10) in Q1 2025. Adjusted net income was $21 million compared to $132 million in Q1 2025. Adjusted EBIT of Industrial Activities swung to a loss of $(45) million from a profit of $101 million in Q1 2025, with Adjusted EBIT margin declining 460 basis points to -1.4%. Operating cash flow was $35 million (vs. $162 million in Q1 2025), and free cash flow absorption of Industrial Activities was $(589) million.

“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. “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.”

Agriculture Adjusted EBIT Falls 81%; Construction Swings to Loss on Tariff Impact

The Agriculture segment reported Q1 2026 net sales of $2.60 billion (+1%, -4% CER), with Adjusted EBIT declining 81% to $27 million (1.0% margin) from $139 million (5.4% margin) in Q1 2025. Lower volumes in North America and South America were the primary drivers, compounded by tariff costs, higher SG&A and R&D expenditures, and reduced joint venture contributions. R&D spending rose to 7.9% of sales from 6.3% in Q1 2025. Industry demand in North America for large tractors (over 140 HP) fell 27% year-over-year, while combines declined 6%. EMEA was the only region with positive tractor demand growth (+2%), though combines fell 5%. In South America, combines fell 33% and tractors declined 8%; Asia Pacific saw tractor demand rise 21% while combines fell 16%.

The Construction segment reported Q1 2026 net sales of $574 million (-3%, -6% CER), with Adjusted EBIT swinging to a loss of $(28) million from a profit of $14 million in Q1 2025, a 730 basis point Adjusted EBIT margin deterioration to -4.9%. Tariff impacts, higher SG&A, and lower volumes in South America and North America drove the decline, only partially offset by pricing. Global heavy construction equipment demand increased 7% and light equipment increased 5% industry-wide, but CNH’s own volumes trailed broader demand trends.

Financial Services and 2026 Outlook: Guidance Reaffirmed at $0.35–$0.45 Adjusted EPS

Financial Services revenues were $646 million in Q1 2026, down 1% (-5% CER), with net income declining 18% to $74 million from $90 million in Q1 2025. Higher risk costs in Brazil and lower volumes across most regions drove the decline. The managed portfolio (including unconsolidated joint ventures) stood at $28.0 billion as of March 31, 2026, with 71% retail and 29% wholesale. The share of receivables more than 30 days past due rose to 3.5% from 2.3% as of March 31, 2025, reflecting economic and environmental pressures on farmers, particularly in South America.

CNH reaffirmed its full-year 2026 guidance across all key metrics, citing confidence in its sales execution, cost discipline, and manufacturing performance despite ongoing tariff and trade headwinds. The company expects Agriculture net sales to range from down 5% to flat year-over-year (+2% currency translation), with an Adjusted EBIT margin of 4.5%–5.5%. Construction net sales are expected to be approximately flat (+1% FX), with an Adjusted EBIT margin of 1.0%–2.0%. Full-year Free Cash Flow of Industrial Activities is guided at $150–$350 million, and Adjusted diluted EPS is projected at $0.35–$0.45.

CNH Industrial Q1 2026 Financial Summary