CNH Industrial (CNH) Q4 2024 earnings summary

Executive summary

• 2024 was marked by weak industry demand, especially in agriculture, leading to significant revenue and profit declines, dealer destocking, and aggressive cost-saving initiatives totaling $600 million in annual run-rate savings.

• Full year consolidated revenues fell 20% to $19.8B, with net income down 45% to $1.3B; Q4 revenues dropped 28% and net income fell 70%.

• Dealer inventory was reduced by over $700M, and operational improvements included production cuts and restructuring.

• The company completed a comprehensive review of field issues and launched new customer service support plans.

• Focus remained on quality improvements, innovation, and preparing for a future industry upcycle.

Financial highlights

• FY 2024 consolidated revenues declined 20% year-over-year to $19.8B; industrial net sales fell 23% to $17.1B.

• Q4 industrial net sales dropped 31% year-over-year to $4.1B; Q4 adjusted net income was $196M (down 63%), and adjusted EBIT for Industrial Activities was $194M (down 71%).

• Full year adjusted net income was $1.3B (down 40%), with adjusted diluted EPS at $1.05 (down from $1.63).

• Q4 free cash flow from industrial activities was $848M; full year cash flow was an outflow of $401M.

• Q4 gross margin for Industrial Activities was 19.5%–20.6%; full year gross margin was 21.7%–22.9%, down 200–260 bps from 2023.

Outlook and guidance

• 2025 net sales for Industrial Activities expected to decline 12–17% year-over-year; adjusted EBIT margin targeted at 6.0–7.0%.

• Agriculture segment net sales forecasted to be 13–18% lower in 2025, with adjusted EBIT margin of 8.5–9.5%.

• Construction segment net sales expected to be 5–10% lower, with adjusted EBIT margin of 4.0–5.0%.

• Free cash flow guidance for 2025 is $200–$500 million; adjusted diluted EPS guidance is $0.65–$0.75.

• Production levels to remain low through H1 2025, with continued focus on quality, customer service, and technology investments.