Core Insights - CNH introduces the FLEETPRO aftermarket line-up at Agritechnica 2025, focusing on enhancing customer support for agricultural equipment [1][13] Group 1: FLEETPRO Product Offerings - The FLEETPRO line includes certified spare parts and consumables aimed at post-warranty and legacy agricultural machinery, providing dependable performance and tailored dealer support at competitive prices [2] - FLEETPRO will also feature Precision Farming kits, available initially in the EMEA region, in partnership with CHC Navigation, offering guidance kits compatible with all brands and models [3] - The product portfolio includes advanced scalability options through CNH's Raven portfolio, which integrates seamlessly with the FieldOps™ digital platform for optimized machine performance [4] Group 2: Company Overview - CNH Industrial is a global leader in equipment, technology, and services, focusing on innovation, sustainability, and productivity across its brands, including Case IH, New Holland, and STEYR [5] - The company has a rich history of over two centuries in pioneering its sectors, with a workforce of over 35,000 employees dedicated to empowering customers [6]

Core Insights - CNH Industrial reported a revenue of $4.4 billion for the quarter ended September 2025, reflecting a decline of 5.5% year-over-year, with EPS at $0.08 compared to $0.24 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $4.3 billion by 2.21%, while the EPS fell short of the consensus estimate of $0.13 by 38.46% [1] Revenue Performance - Agriculture Sales in North America were $1 billion, below the estimated $1.12 billion, marking a year-over-year decline of 28.7% [4] - Agriculture Sales in Europe, the Middle East, and Africa reached $1.05 billion, surpassing the average estimate of $908.39 million, with a year-over-year increase of 16% [4] - Agriculture Sales in South America totaled $513 million, below the average estimate of $553.48 million, representing an 11.9% decline year-over-year [4] - Construction Sales in Asia Pacific were $42 million, slightly above the estimated $40.74 million, with no change year-over-year [4] - Construction Sales in North America reached $400 million, exceeding the average estimate of $329.41 million, reflecting an 11.7% year-over-year increase [4] - Construction Sales in Europe, the Middle East, and Africa were $191 million, above the average estimate of $150.4 million, with a year-over-year increase of 26.5% [4] Overall Financial Metrics - Net Sales amounted to $3.7 billion, slightly above the estimated $3.65 billion, but down 7.4% year-over-year [4] - Finance, interest, and other income were reported at $697 million, exceeding the estimate of $660.15 million, with a year-over-year increase of 6.1% [4] - Total Industrial Activities in Construction generated $739 million, surpassing the average estimate of $654.61 million, reflecting a year-over-year increase of 7.6% [4] - Total Industrial Activities in Agriculture reported $2.96 billion, slightly below the average estimate of $2.97 billion, with a year-over-year decline of 10.5% [4] - Total Industrial Activities revenue was $3.74 billion, exceeding the estimate of $3.65 billion, but down 7.1% year-over-year [4] - Financial Services revenue reached $684 million, above the estimate of $659.22 million, with a year-over-year increase of 3.8% [4] Stock Performance - CNH shares have returned -2.2% over the past month, compared to a -0.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Financial Performance - Total revenues for Q3 2025 were $4,399 million, a decrease of 5.5% compared to $4,654 million in Q3 2024[11] - Net sales for the nine months ended September 30, 2025, were $10,895 million, down 15.8% from $12,931 million in the same period of 2024[11] - Net income attributable to CNH Industrial N.V. for Q3 2025 was $80 million, a decline of 73.6% from $306 million in Q3 2024[11] - Net income for Q3 2025 was $67 million, a significant decrease from $310 million in Q3 2024[55][56] - Net income for the nine months ended September 30, 2025, was $416 million, compared to $1,083 million for the same period in 2024, representing a decrease of approximately 61.6%[17] Cash and Liquidity - Cash and cash equivalents at the end of Q3 2025 were $2,303 million, down from $3,191 million at the end of 2024[9] - The total cash, cash equivalents, and restricted cash at the end of the period was $2,956 million in 2025, compared to $2,450 million in 2024, an increase of 20.7%[17] - The company reported a net cash provided by operating activities of $1,593 million for the nine months ended September 30, 2025, compared to $276 million in the same period of 2024[17] - The company reported a net cash used in investing activities of $1,088 million in 2025, a decrease from $1,777 million in 2024, showing improved capital management[17] Assets and Liabilities - Total assets increased to $43,258 million as of September 30, 2025, compared to $42,933 million at the end of 2024[9] - Total liabilities rose to $35,421 million as of September 30, 2025, compared to $35,165 million at the end of 2024[9] - The carrying amount of financing receivables was $23,001 million as of September 30, 2025, slightly up from $22,976 million as of December 31, 2024, reflecting a marginal increase of 0.1%[135] Equity and Dividends - The company’s total equity as of September 30, 2025, was $7,777 million, slightly down from $7,713 million at the end of 2024[9] - Cash dividends declared per common share for the nine months ended September 30, 2025, were $0.250, down from $0.470 in the same period of 2024[11] - Dividends paid decreased to $322 million in 2025 from $600 million in 2024, reflecting a 46.3% reduction in shareholder returns[17] Segment Performance - Agriculture segment net sales for Q3 2025 were $2,963 million, a decrease of 10.5% compared to $3,310 million in Q3 2024[55][56] - Construction segment net sales for Q3 2025 were $739 million, a decrease of 7% compared to $687 million in Q3 2024[55][56] - Total revenues for the Agriculture and Construction segments combined were $3,702 million in Q3 2025, down from $3,997 million in Q3 2024, reflecting a decline of 7.4%[55][56] Research and Development - Research and development expenses for Q3 2025 were $281 million, an increase of 27.2% from $221 million in Q3 2024[11] - Research and development expenses for the Agriculture segment in Q3 2025 were $205 million, compared to $199 million in Q3 2024[55][56] Tax and Compliance - The effective tax rate for the three months ended September 30, 2025, was 2.0%, a significant decrease from 20.8% in 2024[43] - The company is evaluating the impact of new accounting standards on its consolidated financial statements, including ASU 2025-06 and ASU 2025-05[28][29] - The company anticipates adopting new income tax disclosure requirements effective for fiscal years beginning after December 15, 2024[32] Inventory and Receivables - Total inventory as of September 30, 2025, was $5,353 million, an increase from $4,776 million as of December 31, 2024[63] - Trade and financing receivables related to sales, net, rose to $948 million in 2025, up from $482 million in 2024, reflecting a growth of 96.7%[17] Derivatives and Financial Instruments - The total notional amount of CNH's foreign exchange derivatives was $4.3 billion as of September 30, 2025, compared to $4.2 billion at December 31, 2024[122] - The fair value of CNH's derivative assets was $134 million as of September 30, 2025, down from $147 million at December 31, 2024[132] Legal and Regulatory Matters - The company concluded its cooperation with the SEC's inquiry regarding revenue recognition and sales practices, with no enforcement action recommended[111] - The Italian criminal investigation related to FPT Industrial was dismissed in 2023, and all German investigations were concluded in December 2023[110]

Financial Data and Key Metrics Changes - Consolidated revenues for Q3 2025 were down 5% at $4.4 billion, with global ag segment sales down 11% and North America down 29% [9][10] - Industrial adjusted EBIT was $104 million, down 69% year over year, reflecting lower industry demands and tariffs [10][16] - Adjusted net income decreased to $109 million, with adjusted EPS for the quarter at $0.08, down from $0.24 [10][16] Business Line Data and Key Metrics Changes - Agriculture Q3 net sales were just under $3 billion, down 10% year over year, primarily due to a 29% decrease in North America [17] - Construction third quarter net sales were $739 million, up 8% year over year, driven by higher sales in North America and EMEA [20] - Adjusted gross margin for agriculture was 20.6%, down from 22.7% in Q3 2024, affected by lower volumes and tariff costs [17][18] Market Data and Key Metrics Changes - North America experienced a 29% decline in agriculture sales, while EMEA saw a 16% increase, particularly in tractors [9][17] - Conditions in South America remain challenging, with geopolitical and market circumstances impacting farmers [5][6] - The overall industry retail demand is expected to be down around 10% from 2024, with construction volumes expected to decline about 5% [27][28] Company Strategy and Development Direction - The company is focused on five strategic pillars: expanding product leadership, advancing iron and tech integration, driving commercial excellence, operational excellence, and quality as a mindset [10][18] - The company is transforming its global supply chain and dealer network to mitigate risks from market volatility [4][6] - Upcoming product launches at Agritechnica are aimed at filling market gaps and gaining ground in EMEA [9][11] Management's Comments on Operating Environment and Future Outlook - Management noted that market fundamentals remain uncertain and challenging for farmers, particularly in North America and South America [5][6] - The company expects to navigate near-term challenges while investing in business improvements and preparing for future product launches [6][7] - The outlook for 2026 anticipates flat to slightly down global industry retail demand compared to 2025 [31][32] Other Important Information - The company has reduced quality costs by over $60 million year to date, reflecting improvements in operational efficiency [15] - The company repurchased $50 million worth of stock at an average price of $11.25 per share during Q3 [24] - The company is maintaining a focus on margin improvement initiatives despite the current trade environment [33] Q&A Session Summary Question: Can you elaborate on the decremental margin on the volume mix? - The decremental margin was primarily driven by the 29% decline in North America, with EMEA up 16% [35] Question: What is the impact of SG&A on the margin? - SG&A increased due to higher variable compensation accruals, contributing to the margin decline [36] Question: Can you unpack the product cost changes? - Product costs were favorable by $33 million year over year, despite $44 million in tariff costs [38] Question: How much of the tariff cost is tied to different tariff categories? - About 20% of the tariff costs are from Section 232, with no reliance on potential relief from the Supreme Court [43] Question: What gives confidence in achieving desired dealer levels in three to four months? - The company expects to achieve a $1 billion inventory reduction by year-end, allowing for increased production in 2026 [41]

Financial Performance - Consolidated revenues decreased by 5% year-over-year to $4.4 billion[11] - Industrial Activities net sales decreased by 7% year-over-year to $3.7 billion[11] - Industrial Activities adjusted EBIT decreased by 69% year-over-year to $104 million[11] - Net income decreased by 78% year-over-year to $67 million[11] - Adjusted diluted EPS decreased by $0.16 to $0.08[11] Segment Results - Agriculture net sales decreased by 10% year-over-year to $2.963 billion[28] - Agriculture adjusted EBIT decreased by $200 million to $136 million[28] - Construction net sales increased by 8% year-over-year to $739 million[30] - Construction adjusted EBIT decreased by $26 million to $14 million[31] - Financial Services Q3 retail originations decreased by $0.2 billion year-over-year to $2.7 billion[34] - Financial Services managed portfolio decreased by $0.5 billion year-over-year to $28.5 billion[34] Outlook - Agriculture industry retail demand forecast is expected to decrease by 13%-11% year-over-year[39] - Agriculture net sales are expected to be $14.0 billion[39] - Construction industry retail demand forecast is expected to decrease by 5%-3% year-over-year[41] - Construction net sales are expected to be $3.1 billion[41]

分组1 - CNH Industrial reported quarterly earnings of $0.08 per share, missing the Zacks Consensus Estimate of $0.13 per share, and down from $0.24 per share a year ago, representing an earnings surprise of -38.46% [1] - The company posted revenues of $4.4 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.21%, but down from $4.65 billion year-over-year [2] - Over the last four quarters, CNH has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] 分组2 - The stock has underperformed the market, losing about 9.4% since the beginning of the year compared to the S&P 500's gain of 14.3% [3] - The current consensus EPS estimate for the coming quarter is $0.16 on revenues of $4.78 billion, and for the current fiscal year, it is $0.57 on revenues of $17.62 billion [7] - The Zacks Industry Rank for Manufacturing - Farm Equipment is currently in the bottom 12% of over 250 Zacks industries, indicating potential challenges for the sector [8]

Core Insights - CNH Industrial reported third quarter consolidated revenues of $4.4 billion, a decrease of 5% compared to Q3 2024, driven by decreased industry demand and ongoing channel destocking [1][4] - The company’s net income for the quarter was $67 million, down 78% from $310 million in the same period last year, with diluted earnings per share (EPS) falling to $0.06 from $0.24 [1][4] - Despite the challenging market conditions, CNH is focused on cost management and operational excellence, while also increasing net sales guidance but lowering profit guidance due to tariff headwinds and an unfavorable geographic sales mix [1][2] Financial Performance - Consolidated revenues for Q3 2025 were $4.4 billion, down from $4.65 billion in Q3 2024 [4] - Net sales from Industrial Activities were $3.7 billion, a decrease of 7% year-over-year [4] - Adjusted EBIT for Industrial Activities fell to $104 million, down 69% from $336 million in Q3 2024, with an adjusted EBIT margin of 2.8% compared to 8.4% in the previous year [4][5] - The gross profit margin for Industrial Activities decreased to 19.1%, down 260 basis points from 21.7% in Q3 2024 [4] Segment Performance Agriculture - Agriculture net sales decreased by 10% to $2.96 billion, primarily due to lower shipment volumes and decreased industry demand in North America [7][8] - Adjusted EBIT for the Agriculture segment dropped to $137 million, down 59% from $336 million in Q3 2024, with an adjusted EBIT margin of 4.6% [9] Construction - Construction net sales increased by 8% to $739 million, reflecting higher shipment volumes in North America and EMEA [10][11] - Adjusted EBIT for the Construction segment decreased to $14 million, down 65% from $40 million in Q3 2024, with an adjusted EBIT margin of 1.9% [11] Financial Services - Financial Services revenues increased by 4% to $684 million, driven by higher yields in Brazil [12] - Net income for Financial Services was $47 million, a decrease of 40% compared to Q3 2024, primarily due to increased risk costs and lower volumes [13] Outlook - The company updated its 2025 outlook, projecting Agriculture segment net sales to decline between 11% and 13% year-over-year, and Construction segment net sales to decrease between 3% and 5% [17] - Adjusted diluted EPS is expected to be between $0.44 and $0.50 [18] - CNH is focusing on reducing operating costs and managing SG&A and R&D expenses to mitigate margin erosion [15][16]

Group 1 - CNH Industrial is considered one of the best high volume stocks to buy according to Wall Street analysts, with Truist lowering the price target to $14 from $17 while maintaining a Buy rating [1] - Truist's research note indicates that Q3 2025 results in Machinery, Infrastructure Services, and Multi-Industry Industrial Technology are expected to be mixed, with Machinery facing margin risks in H2 due to tariff headwinds [2] - Margin pressure from tariffs is anticipated to be contained to 2025, with a potential offset in 2026 [2] Group 2 - Robert W. Baird analyst Mircea Dobre maintained a Hold rating on CNH Industrial with a price target of $11, while Tami Zakaria of JPMorgan also kept a Hold rating with a $12 price target [3] - CNH Industrial operates in the equipment and services sector, focusing on agricultural and construction equipment across various global regions, with three main segments: Agriculture, Construction, and Financial Services [4]

Core Viewpoint - The launch of new tractor models by Case New Holland comes amid a declining domestic tractor market, indicating a strategic move to capture opportunities in specific segments despite overall market challenges [1][2]. Group 1: Market Trends - The Chinese agricultural machinery market has entered an adjustment period since 2023, with production and sales showing a downward trend, as evidenced by a projected 11.26% year-on-year decline in tractor production for 2024 [1]. - In contrast to the overall market decline, large tractors are experiencing growth, with their market share increasing, while small and medium tractors are seeing significant production decreases of 15.1% and 16% respectively [1][2]. Group 2: Factors Influencing Market Changes - The shift towards larger tractors is attributed to factors such as land consolidation, increased quality demands for agricultural machinery, and a reduction in available rural labor [1][2]. - The trend of land consolidation is particularly pronounced in central China, where small plots are being aggregated into larger ones, leading to a heightened demand for large agricultural machinery [2]. Group 3: Future Outlook and Strategy - The company expresses confidence in the Chinese agricultural market, citing the large population and arable land as a solid foundation for growth, especially in light of global food security concerns [2]. - To enhance competitiveness and stabilize supply chains, the company is focusing on increasing the localization of its product lines, particularly tractors, to leverage China's supply chain advantages for both domestic and international markets [3].

Core Insights - The Chinese agricultural machinery market is undergoing a deep adjustment, with overall sales performance remaining sluggish in recent years [2][3] - CNH Industrial, a global agricultural machinery manufacturing giant, is facing challenges and has proposed several strategies to adapt to the current market conditions [2][3] Market Performance - The sales growth of agricultural machinery in China has entered a mature phase, with high mechanization rates for major crops: corn at 90.6%, wheat at 97.6%, rice at 86.9%, and soybeans at 87.9% [3][5] - Overall market performance is expected to remain poor, with tractor sales projected to decline by about 10% in 2025, and combine harvester sales expected to drop by 10% after an 8% increase in 2024 [3][4] Strategic Focus - CNH Industrial aims to focus on niche markets and capitalize on equipment replacement opportunities, particularly in the high-horsepower tractor segment and larger capacity combine harvesters [3][5] - The company is also emphasizing localization of its supply chain to enhance competitiveness and meet domestic demand [5][6] Technological Advancements - The company is committed to enhancing the intelligence of its products, with the launch of the CR8.90 combine harvester, which is one of the most advanced in terms of automation [6][7] - The introduction of the "CNH Industrial Agricultural Cloud" aims to create a smart ecosystem for users, integrating IoT and digital technologies for improved farm management [6][7] Future Opportunities - The transition from high mechanization rates to high-quality, efficient, and intelligent equipment presents significant market opportunities for CNH Industrial [5][6] - The annual value of agricultural machinery updates in China is estimated at 300 billion yuan, with government subsidies supporting machinery replacements [5][6] Financial Overview - In 2024, CNH Industrial's total revenue is projected to be $19.8 billion, with 71% derived from agricultural machinery, 15% from construction machinery, and 14% from financial services [7]