Second quarter consolidated revenues were $4.7 billion on lower industry demand
Second quarter diluted EPS at $0.17
Results reflect continued execution of cost saving initiatives partially offsetting market headwinds
Returned $0.3 billion to shareholders through dividends
Full-year guidance reaffirmed
Basildon, UK - August 1, 2025 - CNH Industrial N.V. (NYSE: CNH) today reported results for the three months ended June 30, 2025, with net income of $217 million and diluted earnings per share of $0.17 compared with net income of $404 million and diluted earnings per share of $0.32 for the three months ended June 30, 2024(1). Consolidated revenues were $4.71 billion (down 14% compared to Q2 2024), and net sales of Industrial Activities were $4.02 billion (down 16% compared to Q2 2024). Net cash provided by operating activities was $772 million, and Industrial free cash flow was $451 million in Q2 2025.
“While we continued to face challenging market conditions this quarter, the CNH team's resilience and dedication allowed us to navigate through them effectively and in line with our targets. We are focused on the strategic priorities that we outlined at our recent investor day to advance our operational improvements and the investments that deliver exceptional products and technology for our farmers and builders. We appreciate the support from our suppliers as we navigate uncertain trade waters, and from our dealer network that strives for unmatched customer service as we position CNH for long-term success. I am excited for the future of CNH and sharing the journey ahead with you.”
Gerrit Marx, Chief Executive Officer
2025 Second Quarter Results
(all amounts $ million, comparison vs Q2 2024 - unless otherwise stated)
Please note that in this and in the following tables and commentary, prior periods have been revised to reflect an immaterial correction to the financial statements. See note 1 for further details.
| US-GAAP | ||||||||
| Q2 2025 | Q2 2024(1) | Change | Change at c.c.(2) | |||||
| Consolidated revenues | 4,711 | 5,488 | (14)% | (14)% | ||||
| of which Net sales of Industrial Activities | 4,021 | 4,803 | (16)% | (16)% | ||||
| Net income | 217 | 404 | (46)% | |||||
| Diluted EPS $ | 0.17 | 0.32 | (0.15) | |||||
| Cash flow provided (used) by operating activities | 772 | 379 | +393 | |||||
| Cash and cash equivalents(3) | 2,512 | 3,191 | (679) | |||||
| Gross profit margin of Industrial Activities | 20.6% | 22.9% | (230) bps | |||||
| NON-GAAP(3) | ||||||||
| Q2 2025 | Q2 2024(1) | Change | ||||||
| Adjusted EBIT of Industrial Activities | 224 | 502 | (55)% | |||||
| Adjusted EBIT margin of Industrial Activities | 5.6% | 10.5% | (490) bps | |||||
| Adjusted net income | 216 | 451 | (52)% | |||||
| Adjusted diluted EPS $ | 0.17 | 0.35 | (0.18) | |||||
| Free cash flow of Industrial Activities | 451 | 140 | +311 | |||||
The decline in net sales of Industrial Activities was mainly due to lower shipments on decreased industry demand and continued dealer destocking.
Adjusted net income was $216 million with adjusted diluted earnings per share of $0.17. In comparison, in Q2 2024, adjusted net income was $451 million with adjusted diluted earnings per share of $0.35.
Income tax expense was $76 million ($95 million in Q2 2024), and the effective tax rate (ETR) was 27.6% (20.9% in Q2 2024) with an adjusted ETR(4) of 27.7% for the second quarter (21.0% in Q2 2024).
Cash flow provided by operating activities in the quarter was $772 million ($379 million provided in Q2 2024). Free cash flow of Industrial Activities was $451 million, a year-over-year improvement of $311 million due to lower net change in working capital.
| Agriculture | ||||||||
| Q2 2025 | Q2 2024(1) | Change | Change at c.c.(2) | |||||
| Net sales | 3,248 | 3,913 | (17)% | (17)% | ||||
| Gross profit margin | 21.8% | 24.4% | (260) bps | |||||
| Adjusted EBIT | 263 | 502 | (48)% | |||||
| Adjusted EBIT margin | 8.1% | 12.8% | (470) bps | |||||
In North America, industry volume was down 7% year-over-year in the second quarter for tractors under 140 HP and was down 37% for tractors over 140 HP; combines were down 23%. In Europe, Middle East and Africa (EMEA), tractor demand was down 7%, while combine demand was up 8%. South America tractor demand was up 4%, while combine demand was down 6%. Asia Pacific tractor demand was up 3%, but combine demand was down 42%.
Agriculture net sales decreased in the quarter by 17% to $3.25 billion versus the same period of 2024, primarily due to lower shipment volumes on decreased industry demand and dealer destocking.
Adjusted EBIT decreased to $263 million ($502 million in Q2 2024) driven by lower shipment volumes, partially offset by favorable net price realization and lower production, warranty and SG&A expenses. R&D investments accounted for 6.0% of sales (5.5% in Q2 2024). Adjusted EBIT margin was 8.1% (12.8% in Q2 2024).
| Construction | ||||||||
| Q2 2025 | Q2 2024 | Change | Change at c.c.(2) | |||||
| Net sales | 773 | 890 | (13)% | (12)% | ||||
| Gross profit margin | 15.7% | 16.5% | (80) bps | |||||
| Adjusted EBIT | 35 | 60 | (42)% | |||||
| Adjusted EBIT margin | 4.5% | 6.7% | (220) bps | |||||
Global industry volume for construction equipment increased 3% year-over-year in the second quarter for Heavy construction equipment; Light construction equipment was down 2%. Aggregated demand decreased 4% in North America and South America, but increased 1% in EMEA and 3% in Asia Pacific.
Construction net sales decreased in the quarter by 13% to $773 million, due to lower shipment volumes driven by the market decline in North America.
Adjusted EBIT decreased to $35 million ($60 million in Q2 2024) as a result of lower shipment volumes, partially offset by favorable net price realization. Adjusted EBIT margin was 4.5% (6.7% in Q2 2024).
| Financial Services | ||||||||
| Q2 2025 | Q2 2024 | Change | Change at c.c.(2) | |||||
| Revenues | 685 | 687 | —% | +2% | ||||
| Net income | 87 | 91 | (4)% | |||||
| Equity at quarter-end | 2,907 | 2,843 | +64 | |||||
| Retail loan originations | 2,740 | 2,864 | (124) | |||||
Revenues of Financial Services decreased by 0.3% as a result of the negative impact from currency translation and lower yields primarily in Brazil; partially offset by higher remarketing sales and favorable volumes in most regions.
Net income was $87 million in the second quarter, a decrease of $4 million versus the same period of 2024, primarily due to increased risk costs in Brazil, and a higher effective tax rate due to a prior year Argentina inflation adjustment. This was partially offset by interest margin improvements and favorable volumes in most regions.
The managed portfolio (including unconsolidated joint ventures) was $28.7 billion as of June 30, 2025 (of which retail was 69% and wholesale was 31%), up $0.2 billion compared to June 30, 2024 (down $0.3 billion on a constant currency basis).
At June 30, 2025, the receivable balance greater than 30 days past due as a percentage of receivables was 3.9%, (2.5% as of June 30, 2024), mainly from higher delinquencies in Brazil.
2025 Outlook
The Company continues to forecast that 2025 global industry retail sales will be lower in both the agriculture and construction equipment markets when compared to 2024. CNH is still focused on driving down excess channel inventory primarily by producing fewer units than the retail demand level, which will result in 2025 net sales being lower than in 2024.
The lower production and sales levels will negatively impact our segment margin results. However, the Company’s ongoing efforts to reduce its operating costs will partially mitigate the margin erosion. CNH is continuing its focus on product cost reductions through lean manufacturing principles and strategic sourcing. The Company is also carefully managing its SG&A and R&D expenses.
In addition to the lower cyclical industry sales, the Company is navigating a changing global trade environment. The uncertainty of the U.S. trade policy, the reactions of trading partners, and the impact to our end customers may affect our forecast for the year.
The Company is reaffirming its previous 2025 outlook:
Conference Call and Webcast
Today, at 9:00 a.m. EDT, management will hold a conference call to present second quarter 2025 results to financial analysts and investors. The call can be followed live online or as a recording later at bit.ly/CNH_Q2_2025.
Ti view full press release, please visit: https://www.globenewswire.com/news-release/2025/08/01/3125688/0/en/CNH-Industrial-N-V-Reports-Second-Quarter-2025-Results.html