CNH Industrial (CNH) Q4 2025 earnings summary

Executive summary

• Q4 2025 consolidated revenues rose 6% year-over-year to $5.2 billion, with Industrial Activities net sales at $4.5 billion, and net income of $89 million; adjusted net income was $246 million, up 26% year-over-year.

• Full-year 2025 revenues declined 9% to $18.1 billion, with net income at $505 million (down 60% year-over-year) and adjusted net income at $703 million (down 47%).

• Significant cost savings initiatives in agriculture delivered $230 million in 2025, supporting a $550 million cumulative target by 2030.

• Dealer inventory reductions totaled $800 million for the year, just shy of the $1 billion target, with further $0.2 billion reduced in Q4.

• Management highlighted progress in operational excellence, product innovation, and sustainability leadership, with top industry rankings in S&P Global and CDP scores.

Financial highlights

• Q4 adjusted EBIT for Industrial Activities was $234 million, up 21% year-over-year, with a margin of 5.3% (up 60 bps); adjusted net income was $246 million.

• Q4 adjusted diluted EPS was $0.19, up $0.04 year-over-year; full-year adjusted diluted EPS was $0.55, down from $1.05.

• Q4 industrial free cash flow was $817 million; full-year free cash flow was $513 million, a $914 million improvement from 2024.

• For the full year, $432 million was returned to shareholders via $332 million in dividends and $100 million in share repurchases.

• Full-year adjusted EBIT margin for Industrial Activities was 4.3%, down from 8.2% in 2024.

Outlook and guidance

• 2026 Industrial Activities net sales expected to be flat to down 4% year-over-year; adjusted EBIT margin guidance is 2.5%–3.5%.

• Agriculture net sales expected to be $12.4 billion (down 5% to flat year-over-year), with adjusted EBIT margin of 4.5%–5.5%.

• Construction net sales expected to be flat at $3.0 billion, with adjusted EBIT margin of 1.0%–2.0%.

• Adjusted diluted EPS for 2026 projected at $0.35–$0.45; industrial free cash flow forecasted at $150–$350 million.

• CapEx planned at $600–$650 million in 2026, mainly for manufacturing upgrades and strategic sourcing.