Key Takeaways
- CNH Industrial’s Q1 2025 consolidated revenues declined 21% year-on-year to $3.83 billion, driven by lower shipments and industry demand.
- Net income fell to $132 million, with diluted EPS of $0.10, down from $0.29 in Q1 2024.
- Agriculture and Construction segments saw double-digit sales declines due to reduced global demand and dealer destocking.
- Cash flow from operations improved, but Industrial free cash flow remained negative at -$567 million.
- 2025 full-year outlook lowered for Agriculture and Construction segments amid ongoing macroeconomic uncertainties and trade risks.
CNH Industrial Q1 2025 Overview
CNH Industrial N.V. (Profile) reported its Q1 2025 financial results, highlighting the effects of reduced global demand across Agriculture and Construction equipment markets, combined with efforts to manage dealer inventory levels. The company recorded net income of $132 million, a significant decline compared to $369 million in Q1 2024.
“Despite the challenging market conditions, CNH remains committed to operational excellence and advancing technologies,” said Gerrit Marx, Chief Executive Officer. “We are confident in our strategy and look forward to sharing more during our upcoming Investor Day.”
CNH Industrial Q1 2025 Financial Summary
| Metric | Q1 2025 | Q1 2024 | Change |
|---|---|---|---|
| Consolidated Revenues | $3.83 billion | $4.82 billion | -21% |
| Net Sales of Industrial Activities | $3.17 billion | $4.13 billion | -23% |
| Net Income | $132 million | $369 million | -64% |
| Diluted EPS | $0.10 | $0.29 | -$0.19 |
| Adjusted EBIT (Industrial Activities) | $101 million | $372 million | -73% |
| Free Cash Flow (Industrial Activities) | -$567 million | -$1.2 billion | +$642 million |
Segment Performance
Agriculture
| Metric | Q1 2025 | Q1 2024 | Change |
|---|---|---|---|
| Net Sales | $2.58 billion | $3.37 billion | -23% |
| Adjusted EBIT | $139 million | $388 million | -64% |
| Adjusted EBIT Margin | 5.4% | 11.5% | -610 bps |
Agriculture sales were impacted by lower shipments and soft market conditions, particularly in North America and EMEA. South America saw positive demand trends, but overall volumes remained low. The decrease in EBIT reflects these headwinds, partially offset by cost controls.
Construction
| Metric | Q1 2025 | Q1 2024 | Change |
|---|---|---|---|
| Net Sales | $591 million | $758 million | -22% |
| Adjusted EBIT | $14 million | $51 million | -73% |
| Adjusted EBIT Margin | 2.4% | 6.7% | -430 bps |
Construction also faced lower global demand, with notable declines in North America and EMEA. The segment reported reduced profitability as lower volumes and pricing pressures affected results.
Financial Services
| Metric | Q1 2025 | Q1 2024 | Change |
|---|---|---|---|
| Revenues | $651 million | $685 million | -5% |
| Net Income | $90 million | $118 million | -24% |
Financial Services performance was affected by currency impacts, higher risk costs, and lower used equipment sales, particularly in South America.
2025 Outlook For CNH Industrial
Amid continued uncertainty, CNH updated its full-year 2025 guidance:
| Segment | Previous Outlook | Updated Outlook |
|---|---|---|
| Agriculture Net Sales | -13% to -18% | -12% to -20% |
| Agriculture EBIT Margin | 8.5% to 9.5% | 7% to 9% |
| Construction Net Sales | -5% to -10% | -4% to -15% |
| Construction EBIT Margin | 4% to 5% | 2% to 4% |
| Free Cash Flow (Industrial Activities) | $200M to $500M | $100M to $500M |
| Adjusted EPS | $0.65 to $0.75 | $0.50 to $0.70 |
The company cited soft industry retail sales, ongoing dealer destocking, and potential global trade risks as reasons for the revised guidance. CNH plans to mitigate some of the margin pressures through cost reductions and disciplined operational management.
