CNH Industrial N.V. Reports Second Quarter 2026 Results

Consolidated revenues for the second quarter of 2026 were $4.8 billion, up 2% year-over-year 

Reported Net income of $141 million and adjusted Net income⁽¹⁾ of $161 million

Second quarter diluted earnings per share at $0.11

Returned $0.2 billion to shareholders through dividends and share repurchases

Full-year guidance narrowed to the higher end of the previous ranges

Basildon, UK - August 3, 2026 - CNH Industrial N.V. (NYSE: CNH) reported Net income for the three months ended June 30, 2026, of $141 million, with basic earnings per share and diluted earnings per share of $0.11, compared with Net income of $217 million and basic earnings per share and diluted earnings per share of $0.17 in Q2 2025. Adjusted Net income⁽¹⁾ for the second quarter of 2026 was $161 million compared to $216 million for the second quarter of 2025.

Consolidated revenues for the second quarter ended June 30, 2026, were $4.80 billion, and Net Sales of Industrial Activities were $4.14 billion, both up compared to Q2 2025.

Net cash provided by operating activities was $145 million, and Free cash flow of Industrial Activities was $150 million in Q2 2026.

Income tax expense was $43 million ($76 million in Q2 2025) with an effective tax rate (ETR) of 25.0% (27.6% in Q2 2025). The adjusted ETR⁽¹⁾ was 25.1% for the second quarter (27.7% in Q2 2025).

Our second quarter results reflect disciplined execution by the CNH team in a market that remains at the trough of the agriculture cycle, said Gerrit Marx, Chief Executive Officer of CNH. Despite the industry conditions, we delivered year-over-year revenue growth and continued progress on our strategic priorities, including quality, sourcing, operational efficiency, and dealer network consolidation. While farmer economics remain pressured, we are seeing constructive equipment-cycle indicators, including dealer inventory normalization, aging fleets, and a more balanced relationship between new and used equipment pricing. We remain focused on supporting our dealers and customers today while investing in the iron and technology capabilities that will strengthen CNH through the next cycle.

2026 Second Quarter Results

In North America, second quarter industry sales volume was down 16% year-over-year for tractors under 140 HP and down 17% for tractors over 140 HP; combines were down 7%. In Europe, Middle East and Africa ("EMEA"), tractor and combine demand down 11% and 1%, respectively. South America saw tractor and combine demand decline 8% and 29%, respectively. In Asia Pacific, tractor demand increased 15%, while combine demand decreased 48%.

Agriculture Net sales were flat year-over-year in the quarter at $3.3 billion, a result of favorable price realization, offset by lower volumes in South America.

Adjusted EBIT decreased to $170 million from $263 million in Q2 2025, primarily due to lower volumes in South America, unfavorable mix in North America and EMEA, the impact of tariffs, higher Selling, general and administrative expenses (SG&A) and Research and development expenses (R&D) and lower joint venture results. SG&A expenses were mainly impacted by higher labor costs. R&D expenses represented 6.1% of sales in Q2 2026 (6.0% in Q2 2025).

Global industry sales volume for construction equipment increased 17% year-over-year in the second quarter for Heavy equipment and 6% for Light equipment. Aggregated demand increased 5% in North America, 9% in EMEA, 12% in South America, and 16% in Asia Pacific.

Construction Net sales increased 12% in the quarter to $866 million, driven by higher volumes in North America and included shipments that were initially delayed during the first quarter of 2026.

Adjusted EBIT decreased to $15 million from $35 million in Q2 2025, primarily due to the impact of tariffs and higher R&D expenses, partially offset by higher volumes and lower SG&A expenses. SG&A benefited from the absence of prior year non-recurring costs, partially offset by higher labor costs.

Financial Services revenues decreased 4% in the quarter, largely driven by unfavorable volumes in South America and North America, reduced used equipment sales due to fewer operating lease maturities, and lower yields in all regions except South America, partially offset by favorable currency translation.

Net income was $71 million in the quarter, a decrease of $16 million versus Q2 2025, largely driven by margin compression in all regions except North America, lower volumes in South America and North America, higher risk costs in Brazil, and increased labor costs, partially offset by a lower effective tax rate.

The managed portfolio (including unconsolidated joint ventures) was $28.0 billion as of June 30, 2026 (of which retail was 70% and wholesale was 30%), down $0.7 billion compared to June 30, 2025 (down $0.7 billion on a constant currency basis⁽²⁾).

As of June 30, 2026, the receivable balance greater than 30 days past due, as a percentage of receivables, was 4.4% (3.9% as of June 30, 2025), due to economic factors impacting farmers, specifically in South America.

Results for the Six Months Ended June 30, 2026

2026 Outlook

Farmers continue to face challenging market dynamics, including low commodity prices, high input costs, and an uncertain trade environment. CNHs Agriculture segment has and will continue to respond to these market dynamics by maintaining low production levels, working with its dealer network to lower channel inventory, pursuing cost efficiencies, and managing rapid changes in trade policies. CNHs Construction segment will continue to focus on quality, manufacturing efficiencies, and tariff cost offset opportunities.

CNH is benefitting from recent changes in tariff levels yet also incurring higher transportation costs and managing challenging market conditions in South America. In this trough year of the agriculture industry cycle, CNH is focusing on its sales execution, cost discipline, and manufacturing performance. We forecast that we will deliver results at the higher end of the forecast ranges previously communicated.

Consequently, we are updating our 2026 outlook as follows:

• Agriculture segment net sales about flat year-over-year, including +2% currency translation effects
• Agriculture segment adjusted EBIT margin between 5.0% and 5.5%
• Construction segment net sales up between 5% to 10% year-over-year, including +2% currency translation effects 
• Construction segment adjusted EBIT margin between 1.8% and 2.3%
• Free Cash Flow of Industrial Activities⁽³⁾ between $200 million and $400 million
• Adjusted diluted EPS⁽³⁾ between $0.41 to $0.46

CNH reports quarterly and annual consolidated financial results under U.S. GAAP and annual consolidated financial results under EU-IFRS. The tables and discussion related to the financial results of the Company and its segments shown in this press release are prepared in accordance with U.S. GAAP.

The following applies to the information throughout this release:

• See tables later in this release for the reconciliations of the non-GAAP financial measures to the most comparable financial measures calculated in accordance with U.S. generally accepted accounting principles (GAAP).
• The consolidated financial statements within this release should be read in conjunction with the Companys Audited Consolidated Financial Statements and Notes for the year ended December 31, 2025, included in the Annual Report on Form 10-K. These Consolidated Statements of Operations represent the consolidation of all CNH Industrial N.V. subsidiaries.
• Industrial Activities represents the enterprise without Financial Services. Industrial Activities include the Company's Agriculture, Construction, and other corporate assets, liabilities, revenues and expenses not reflected within Financial Services.
• Certain financial information in this report has been presented by geographic area. Our geographical regions are: (a) North America; (b) EMEA; (c) South America and (d) Asia Pacific. The geographic designations have the following meanings:
  • North America: United States, Canada, and Mexico;
  • EMEA: member countries of the European Union, European Free Trade Association, the United Kingdom, Ukraine and Balkans, Türkiye, Uzbekistan, Pakistan, the African continent, and the Middle East;
  • South America: Central and South America, and the Caribbean Islands; and
  • Asia Pacific: Continental Asia (including the India subcontinent), Indonesia, Japan and Oceania.

Non-GAAP Financial Information

CNH monitors its operations through the use of several non-GAAP financial measures. CNHs management believes that these non-GAAP financial measures provide useful and relevant information regarding its operating results and enhance the readers ability to assess CNHs financial performance and financial position. Management uses these non-GAAP measures to identify operational trends, as well as make decisions regarding future spending, resource allocations and other operational decisions as they provide additional transparency with respect to our core operations. These non-GAAP financial measures have no standardized meaning under U.S. GAAP and are unlikely to be comparable to other similarly titled measures used by other companies and are not intended to be substitutes for measures of financial performance and financial position as prepared in accordance with U.S. GAAP.

CNHs non-GAAP financial measures are defined as follows:

• Adjusted EBIT of Industrial Activities under U.S. GAAP: is defined as net income (loss) before the following items: Income taxes, Financial Services results, Industrial Activities interest expenses, net, foreign exchange gains/losses, finance and non-service component of pension and other post-employment benefit costs, restructuring and other transformation expenses, and certain non-recurring items. In particular, non-recurring items are specifically disclosed items that management considers rare or discrete events that are infrequent in nature and not reflective of on-going operational activities.
• Adjusted EBIT Margin of Industrial Activities: is computed by dividing Adjusted EBIT of Industrial Activities by Net Sales of Industrial Activities.
• Adjusted Net Income (Loss): is defined as net income (loss), less restructuring and other transformation charges and non-recurring items, after tax.
• Adjusted Diluted EPS: is computed by dividing Adjusted Net Income (loss) attributable to CNH Industrial N.V. by a weighted-average number of common shares outstanding during the period that takes into consideration potential common shares outstanding deriving from the CNH share-based payment awards, when inclusion is not anti-dilutive. When we provide guidance for adjusted diluted EPS, we do not provide guidance on an earnings per share basis because the GAAP measure will include potentially significant items that have not yet occurred and are difficult to predict with reasonable certainty prior to year-end.
• Adjusted Income Tax (Expense) Benefit: is defined as income taxes less the tax effect of restructuring and other transformation expenses and non-recurring items, and non-recurring tax charges or benefits.
• Adjusted Effective Tax Rate ("Adjusted ETR"): is computed by dividing a) adjusted income taxes by b) income (loss) before income taxes and equity income from unconsolidated affiliates, less restructuring and other transformation expenses and non-recurring items.
• Net Cash (Debt) and Net Cash (Debt) of Industrial Activities: Net Cash (Debt) is defined as total debt less intersegment notes receivable, cash and cash equivalents, restricted cash, other current financial assets (primarily current securities, short-term deposits and investments towards high-credit rating counterparties) and derivative hedging debt. CNH provides the reconciliation of Net Cash (Debt) to Total (Debt), which is the most directly comparable measure included in the consolidated balance sheets. Due to different sources of cash flows used for the repayment of the debt between Industrial Activities and Financial Services (by cash from operations for Industrial Activities and by collection of financing receivables for Financial Services), management separately evaluates the cash flow performance of Industrial Activities using Net Cash (Debt) of Industrial Activities.
• Free Cash Flow of Industrial Activities ("Industrial Free Cash Flow"): refers to Industrial Activities only, and is computed as consolidated cash flow from operating activities less: cash flow from operating activities of Financial Services; investments of Industrial Activities in assets sold under operating leases, property, plant and equipment and intangible assets; change in derivatives hedging debt of Industrial Activities; as well as other changes and intersegment eliminations.
• Change excl. FX or Constant Currency: CNH discusses the fluctuations in revenues on a constant currency basis by applying the prior year average exchange rates to current periods revenues expressed in local currency in order to eliminate the impact of foreign exchange rate fluctuations.
  
  

Forward-looking Statements

All statements other than statements of historical fact contained in this filing including competitive strengths, business strategy, future financial position or operating results, budgets, projections with respect to revenue, income, earnings (or loss) per share, capital expenditures, dividends, liquidity, capital structure or other financial items, costs, and plans and objectives of management regarding operations and products, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act, and Section 21E of the Exchange Act. Forward-looking statements also include, but are not limited to, statements regarding the plans, objectives, strategies, financial performance and outlook, trends, and future performance of CNH and its subsidiaries on a standalone basis. These statements may include terminology such as "may", "will", "expect", "could", "should", "intend", "estimate", "anticipate", "believe", "outlook", "continue", "remain", "on track", "design", "target", "objective", "goal", "forecast", "projection", "prospects", "plan", or similar terminology. Forward-looking statements are not guarantees of future performance. Rather, they are based on current views, expectations, estimates, and assumptions, including, in some cases, estimates and data received from third parties, and involve known and unknown risks, uncertainties and other factors, many of which are outside our control and are difficult to predict. If any of these risks and uncertainties materialize (or they occur with a degree of severity that the Company is unable to predict) or if any other assumptions underlying any of the forward-looking statements prove to be incorrect, actual results or developments may differ materially from any future results or developments expressed or implied by the forward-looking statements.

Factors, risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements include, among others: economic conditions in each of our markets, including the significant uncertainty caused by geopolitical events; production and supply chain disruptions, including industry capacity constraints, material availability, and global logistics delays and constraints; the many interrelated factors that affect consumer confidence and worldwide demand for capital goods and capital goods related products; changes in government policies regarding banking, monetary and fiscal policy; legislation, particularly pertaining to capital goods-related issues such as agriculture, the environment, debt relief and subsidy program policies, trade and commerce and infrastructure development; government policies on international trade and investment, including sanctions, import quotas, capital controls and tariffs; volatility in international trade caused by the imposition of tariffs, sanctions, embargoes, and trade wars; actions of competitors in the various industries in which we compete; development and use of new technologies and technological difficulties; the interpretation of, or adoption of new, compliance requirements wit