CNH Q3 Earnings Miss Expectations, Revenues Decline Y/Y

CNH Industrial CNH reported third-quarter 2025 adjusted earnings per share (EPS) of 8 cents, which declined from 24 cents in the prior-year quarter. The figure also missed the Zacks Consensus Estimate of 13 cents.

In the third quarter, consolidated revenues declined nearly 5% from the year-ago level to $4.4 billion but topped the Zacks Consensus Estimate of $4.3 billion. The company’s net sales from industrial activities came in at $3.7 billion, down 7% due to lower industry demand and channel destocking.

CNH Industrial N.V. Price, Consensus and EPS Surprise

CNH Industrial N.V. price-consensus-eps-surprise-chart | CNH Industrial N.V. Quote

Segmental Performance

In the third quarter, net sales in the Agriculture segment fell 10% year over year to $2.96 billion due to lower shipment volume as a result of demand shrinkage and dealer destocking. The metric, however, marginally beat our estimate of $2.93 billion. The segment’s adjusted EBIT came in at $137 million, down 59% year over year due to lower volumes, tariff costs, unfavorable geographic mix and high SG&A expenses. The figure also missed our estimate of $195.2 million. The adjusted EBIT margin decreased to 4.6% from 10.2%.

The Construction segment’s sales rose 8% year over year to $739 million as a result of higher volume in North America and EMEA and favorable net price realization. The metric also topped our estimate of $653.2 million. Adjusted EBIT came in at $14 million, down 65% year over year due to tariff costs, unfavorable geographic mix and high SG&A expense. The figure also missed our estimate of $18.4 million. The adjusted EBIT margin decreased to 1.9% from 5.8%.

The Financial Services segment’s revenues rose 4% to $684 million due to higher yields and the favorable impact of currency translation. The metric also surpassed our estimate of $644.2 million. Net income from the segment was down from $78 million reported in the year-ago quarter to $47 million in the third quarter.

Financial Details

CNH Industrial had cash and cash equivalents of $2.3 billion as of Sept. 30, 2025, down from $3.19 billion as of Dec. 31, 2024.

The company’s debt totaled $27.13 billion as of Sept. 30, 2025, up from $26.88 billion as of Dec. 31, 2024.

The company’s net cash provided by operating activities was $659 million compared with $791 million reported in the year-ago period.

CNH reported a free cash outflow from industrial activities of $188 million in the quarter compared with a free cash outflow of $180 million in the third quarter of 2024.

Updated Guidance for 2025

In 2025, Agriculture sales are expected to decrease 11-13% year over year compared with the prior estimate of a decline of 12-20% year over year. Adjusted EBIT margin for the Agriculture segment is expected in the band of 5.7-6.2% compared with the previous estimate of 7-9%. For the Construction segment, sales are expected to decrease 3-5% year over year compared with the previous estimate of a decline of 4-15% year over year. Adjusted EBIT margin for the construction segment is expected in the band of 1.7% and 2.2% compared with the previous estimate of 2-4%.

The company now expects free cash flow from industrial activities in the band of $200-$500 million compared with the previous estimate of $100-$500 million. Adjusted EPS is expected between 44 cents and 50 cents compared with the previous estimate of 50-70 cents.

Zacks Rank & Key Picks

CNH carries a Zacks Rank #4 (Sell) at present.

Some better-ranked stocks in the industrial product space are EnerSys ENS, Helios Technologies, Inc. HLIO and Proto Labs, Inc. PRLB, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for ENS’s fiscal 2026 sales indicates year-over-year growth of 2.1%. EPS estimates for fiscal 2026 have improved 33 cents and 10 cents over the past seven days.

The Zacks Consensus Estimate for HLIO’s 2025 sales and earnings implies year-over-year growth of 2.3% and 17.1%, respectively. EPS estimates for 2025 and 2026 have improved 5 cents and 10 cents, respectively, over the past seven days.

The Zacks Consensus Estimate for PRLB’s 2025 sales indicates year-over-year growth of 5%. EPS estimates for 2025 have improved 5 cents in the past seven days.

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This article originally published on Zacks Investment Research (zacks.com).

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