Key Takeaways:
- CNH Industrial posted Q2 net income of $217 million with EPS of $0.17 on 14% lower consolidated revenue
- Net sales of Industrial Activities declined 16% year-over-year to $4.02 billion
- Adjusted net income fell to $216 million (adjusted EPS of $0.17), down from $451 million in Q2 2024
- Free cash flow improved to $451 million, up $311 million year-over-year
- Full-year guidance reaffirmed; nearly $300 million returned to shareholders via dividends
CNH Industrial Reports Lower Revenue as Demand Softens
CNH Industrial N.V. (NYSE: CNHI)released its results for the three months ended June 30, 2025. Consolidated revenue declined 14% year-over-year to $4.71 billion, while net sales of Industrial Activities, covering agriculture and construction equipment, fell 16% to $4.02 billion.
Net income for the quarter stood at $217 million, equal to a diluted EPS of $0.17, compared to $404 million and $0.32 per share in Q2 2024. Adjusted net income also dropped to $216 million, or $0.17 per share—a notable decrease from $451 million and $0.35 in Q2 2024.
CNH Profits Sustained by Cost-Control Measures Amid Weak Demand
Cost-reduction initiatives helped offset the revenue decline. Adjusted EBIT for Industrial activities was $224 million with a margin of 5.6%, down from 10.5% a year prior. CNH continued to manage dealer inventory through production cuts, a strategy echoed by other major OEMs.
Improved Cash Flow and Shareholder Returns
CNH generated $772 million in operating cash flow in the quarter, nearly double the prior-year amount, while free cash flow rose to $451 million, an improvement of $311 million year-over-year. The company also returned approximately $300 million to shareholders via dividends.
Market Conditions and Industry Volume Trends
Demand for farm and construction equipment continued to weaken in most regions. In North America, tractor volumes under 140 HP fell 7%, while high-horsepower tractors declined 37% and combine sales dropped 23%. In EMEA, tractor demand slid 7% while combine demand increased 8%. South America saw a 4% rise in tractor sales but declined combine demand, and Asia-Pacific showed mixed results.
Guidance Maintained Despite Risk Factors
CNH reaffirmed its full-year 2025 adjusted EPS guidance of $0.50–$0.70, emphasizing ongoing focus on cost control and operational efficiency amid macroeconomic uncertainty. CEO Gerrit Marx highlighted continued efforts to advance key priorities including dealer inventory reduction and innovation initiatives such as partnerships with autonomous and connectivity platforms.
Summary Table Of CNH Industrial Q2 2025
| Metric | Q2 2025 | Q2 2024 |
|---|---|---|
| Consolidated revenue | $4.71 billion | $5.49 billion (‑14%) |
| Industrial Activities sales | $4.02 billion | $4.80 billion (‑16%) |
| Adjusted EBIT margin | 5.6% | 10.5% |
| Adjusted diluted EPS | $0.17 | $0.35 |
| Free cash flow | $451 million | $140 million |
Read the complete results here.
