CNH Industrial (CNH) Q1 2026 earnings summary

Executive summary

• Q1 2026 results were in line with expectations, with consolidated revenues of $3.8 billion, reflecting seasonally low demand and ongoing macroeconomic headwinds, especially in North and South America.

• Net income attributable to shareholders was $10 million, down sharply year-over-year, with adjusted net income at $21 million and diluted EPS at $0.01.

• Management maintained disciplined production and inventory management, with dealer inventories flat and a focus on pre-sold or fast-moving stock.

• Strategic initiatives advanced, including AI-driven dealer support tools, a new partnership with Abilene Machine, and over 300 new manufacturing efficiency projects.

• Full-year 2026 guidance was reaffirmed despite challenging market conditions.

Financial highlights

• Consolidated revenues were $3.8 billion, flat year-over-year, with a 4% positive currency impact.

• Net income was $10 million (down 92% YoY); adjusted net income was $21 million; adjusted EPS at $0.01.

• Industrial Activities net sales were $3.17 billion, with adjusted EBIT of $(45) million and EBIT margin at (1.4)%.

• Free cash flow from Industrial Activities was a $589 million outflow, consistent with seasonal patterns.

• Financial Services net income was $74 million, with managed portfolio at $28 billion and delinquencies at 3.5%.

Outlook and guidance

• 2026 industrial net sales forecasted flat to down 4% year-over-year, with EBIT margin guidance of 2.5%-3.5%.

• Agriculture EBIT margin guidance reaffirmed at 4.5%-5.5%; construction EBIT margin at 1%-2%.

• Adjusted EPS guidance reaffirmed at $0.35-$0.45.

• Industrial free cash flow expected between $150 million and $350 million.

• Q2 agriculture net sales expected flat year-over-year; construction net sales to rise in the mid-teens; margins expected to improve sequentially in the second half of 2026.