Key Takeaways:
- CNH Industrial posted net income of $67 million for Q3 2025, compared with $310 million in the same quarter of 2024.
- Consolidated revenues totaled $4.40 billion, down 5% year-over-year, with Industrial Activities net sales of $3.70 billion, down 7%.
- Adjusted net income was $109 million, and adjusted diluted earnings per share were $0.08.
- Agriculture segment sales declined 10%, while Construction segment sales rose 8%.
- The company updated its full-year 2025 outlook, citing lower industry demand and ongoing tariff impacts.
Overview of CNH Industrial’s Third Quarter Performance
CNH Industrial N.V. (NYSE: CNH) reported third quarter 2025 results showing net income of $67 million and diluted earnings per share of $0.06, compared to $310 million and $0.24, respectively, in the prior-year quarter. Consolidated revenues fell 5% to $4.40 billion, while Industrial Activities net sales declined 7% to $3.70 billion.
Adjusted net income was $109 million, down from $304 million in Q3 2024, and adjusted diluted earnings per share were $0.08. The company’s adjusted EBIT of Industrial Activities was $104 million, representing a margin of 2.8%, compared with 8.4% a year earlier.
Cash flow from operating activities totaled $659 million, with Industrial free cash flow absorption of $188 million, consistent with seasonal trends.
CEO Commentary
Chief Executive Officer Gerrit Marx stated that while the current trade environment remains challenging, CNH Industrial continues to focus on operational discipline, inventory management, and long-term growth. “We are maintaining disciplined production levels, reducing channel inventories, investing in technology, and driving operational excellence,” said Marx. “Our commitment to quality and innovation is unwavering… I am confident that the steps we are taking will position CNH for renewed growth and success as market conditions improve.”
Segment Results
Agriculture
The Agriculture segment reported net sales of $2.96 billion, down 10% year-over-year, mainly due to lower shipment volumes and reduced industry demand in North America. Adjusted EBIT declined to $137 million from $336 million, with a margin of 4.6%.
Regionally, tractor and combine demand declined across most major markets, though the Europe, Middle East, and Africa region showed modest gains in combine sales. CNH Industrial cited increased R&D spending—8.6% of sales this quarter—reflecting a non-cash impairment related to methane-capture technologies acquired through Bennamann in 2023.
Construction
Construction segment net sales rose 8% to $739 million, driven by stronger volumes in North America and EMEA and favorable pricing. Adjusted EBIT declined to $14 million from $40 million in the prior-year period, with a margin of 1.9%. Higher tariff costs, geographic mix, and SG&A expenses contributed to lower profitability.
Financial Services
Financial Services revenue increased 4% to $684 million, supported by higher yields and favorable currency effects. Net income was $47 million, compared to $78 million in Q3 2024. The managed portfolio stood at $28.5 billion as of September 30, 2025.
Updated 2025 Outlook
CNH Industrial revised its full-year 2025 outlook due to weaker demand and industry headwinds:
- Agriculture segment net sales are expected to decline 11–13% year-over-year.
- Agriculture adjusted EBIT margin is projected between 5.7% and 6.2%.
- Construction segment net sales are expected to fall 3–5% year-over-year.
- Construction adjusted EBIT margin is projected between 1.7% and 2.2%.
- Free cash flow of Industrial Activities is estimated between $200 million and $500 million.
- Adjusted diluted earnings per share are forecast between $0.44 and $0.50.
Strategic Priorities and Market Context
CNH Industrial emphasized that lower production levels, channel inventory reductions, and an unfavorable regional mix—particularly a shift from North America to EMEA—have pressured margins. The company continues to implement cost-saving initiatives through lean manufacturing and strategic sourcing.
The firm also noted ongoing challenges from expanded U.S. steel and aluminum tariffs introduced in August 2025, which have increased material costs. Mitigation efforts include alternative sourcing, inventory adjustments, and pricing actions designed to offset tariff impacts over time.
Read the complete results here.
