Connectivity and Digital Solutions - CNH provides connectivity included for the lifetime of the modem on new machines, with options like Starlink™ satellites to boost coverage in remote areas[10] - FieldOps™ Digital Farm Management is available on smartphone, computer, and iPad, facilitating machine and fieldwork management[9] - AI Tech Assistant and fully connected machines enable dealers to use predictive systems for faster issue resolution[11] Field Preparation and Tillage - Case IH Quadtrac® system minimizes soil compaction with a ground pressure of 0.55 kg/cm2 (7.85 psi)[16] - Autonomous Tillage development can lead to approximately €75/hectare (~US$36/acre) savings, 17% less fuel consumption, and a 4% yield improvement[19] - Autonomous Tillage development can cover 9.5% more hectares[19] Seeding and Planting - Active Implement Guidance keeps every pass within 0-5 cm of the intended pass over 95% of the time[27] Growing and Protection - Selective spraying of green weeds on brown pre-emerged fields can save up to 60% of herbicide use[33] - Variable rate applications can save up to 20% of inputs[33] - Farmers can save up to approximately 120,000 liters (~32,000 gallons) of product applied per season or ~€23,000 ($28,000) in annual savings using Green-on-Brown and Variable Rate applications[33] Harvesting - Combine Automation can earn farmers approximately €70 (~$82) more per hectare and harvests 7.4% more tonnes per hour in wheat operations[38] Specialty Operations - CNH holds over 50% market share in grapes and over 90% in olives in 2024[46] - Specialty solutions can lead to up to 80% labor reduction and 100% CO₂ reduction when using the R4 Electric Power Robot, along with 20% lower Total Cost of Ownership[54]

Core Insights - CNH is showcasing its commitment to innovation in agriculture through its 2025 Tech Day, emphasizing customer-centric farming technologies powered by AI, autonomy, robotics, and automation [1][2] - The company aims to create a connected ecosystem that enhances productivity and sustainability for farmers, addressing the challenges of feeding a growing population with limited resources [3][4] Technology Portfolio - CNH's current and future Ag Tech solutions span the entire crop cycle, including Prescription Tillage, Autonomous Tillage, and advanced planter automation, which optimize seed placement and improve yields [4] - The Sense and Act Spraying Portfolio utilizes AI for targeted weed detection, achieving up to 60% herbicide savings, while the upcoming Green-on-Green Spraying technology aims for an 80% reduction in herbicide use [4] - Combine Automation technology has been recognized for its innovation, delivering €70 more per hectare in net revenue and increasing harvesting efficiency by 7.4% [4] Strategic Vision - The CEO of CNH highlights the strategic necessity of innovation in agriculture, with a focus on nearly doubling Precision Tech sales as a percentage of Agriculture Net Sales by 2030 [3] - The company is committed to enhancing soil health and productivity, recognizing the importance of sustainable practices in agriculture [7] Digital Integration - CNH's technologies are integrated through the FieldOps™ Digital Farm Management Platform, which provides real-time data and fleet management, enhancing operational efficiency for farmers [5] - The company is ensuring connectivity in rural areas through partnerships, such as with Starlink™, to support uninterrupted access to its digital solutions [6] Commitment to Sustainability - CNH emphasizes the importance of soil health and sustainable practices, addressing the degradation of soils and the need for efficient resource management in agriculture [7][10] - The company's technologies are designed to conserve water, optimize nutrient placement, and reduce chemical use, contributing to environmental sustainability [10]

Core Viewpoint - Titan Machinery Inc. is divesting its dealership operations in Germany to optimize its dealership network and enhance returns on invested capital, aligning with CNH Industrial's dual-brand strategy [1][2]. Group 1: Planned Transactions - The divestiture involves two separate asset sale transactions to existing New Holland dealers in Germany [1]. - These transactions are expected to close within the next 120 days, pending customary closing conditions and regulatory approvals [2]. - The company anticipates a pre-tax loss on sale of approximately $3 million to $4 million from these transactions [2]. Group 2: Operational Challenges - Titan Machinery's German operations have faced challenges that negatively impacted returns within its European operating segment [2]. - The company is focusing resources on markets where it can leverage its operational expertise and service network to improve returns for shareholders [2]. Group 3: Company Overview - Titan Machinery Inc. operates a network of full-service agricultural and construction equipment dealer locations across North America, Europe, and Australia [3]. - The company's network includes locations in various U.S. states and international stores in Bulgaria, Germany, Romania, and Ukraine, as well as Australia [3].

Core Insights - New Holland's T4.120F Auto Command has won the 'Best Specialized' award at the 2026 Tractor of the Year awards, highlighting the brand's commitment to excellence in agricultural machinery [1][2]. Group 1: Award Recognition - The T4.120F Auto Command received top honors in the Specialized category at the prestigious 2026 Tractor of the Year awards held at Agritechnica in Hanover, Germany [1][2]. - The TOTY jury consists of leading farm machinery journalists from across Europe, emphasizing the award's credibility and significance in the industry [2]. Group 2: Product Features - The T4.120F model features the Auto Command™ Continuously Variable Transmission (CVT) with a 50-kph ECO mode, marking a first in the specialty tractor segment [3]. - The design of the T4.120F focuses on operator comfort and ease of use, making it particularly suitable for narrow tractors operating in vineyards and fruit farms [3]. Group 3: Company Overview - CNH Industrial is a global leader in equipment, technology, and services, with a focus on innovation, sustainability, and productivity [4]. - The company operates various brands, including Case IH and New Holland, providing comprehensive agricultural applications and construction products [4].

Core Insights - New Holland's T4.120F Auto Command has won the 'Best Specialized' award at the 2026 Tractor of the Year awards, highlighting the brand's commitment to excellence in agricultural machinery [1][2] Company Overview - CNH Industrial is a leading global equipment, technology, and services company focused on innovation, sustainability, and productivity, with a diverse portfolio including brands like Case IH and New Holland [4][5] - The company employs over 35,000 individuals worldwide, emphasizing a diverse and inclusive workplace aimed at empowering customers [5] Product Highlights - The T4.120F model features Auto Command™ Continuously Variable Transmission (CVT) with a 50-kph ECO mode, marking a significant advancement in the specialty tractor segment [3] - This model is designed for narrow tractors used in vineyards and fruit farms, prioritizing operator comfort and ease of use [3] Event Details - The award ceremony took place at Agritechnica in Hanover, Germany, which is recognized as the world's leading agricultural trade fair [2] - CNH will showcase future innovations during its Tech Day event on November 11, 2025 [3][6]

Core Insights - CNH introduces the FLEETPRO aftermarket line-up at Agritechnica 2025, focusing on certified spare parts and consumables for agricultural equipment, particularly for post-warranty and legacy machinery [1][2] Group 1: FLEETPRO Line-up - The FLEETPRO line-up provides dependable performance and tailored dealer support at competitive prices, available across Europe, the Middle East, and Africa (EMEA) [2] - It includes Precision Farming kits in partnership with CHC Navigation, featuring guidance kits with 10-inch and 12-inch displays, compatible with all brands and models [3] Group 2: Advanced Technology and Integration - Customers can utilize CNH's Raven portfolio for advanced scalability, offering fully integrated guidance systems that connect to the FieldOps™ digital platform for optimized machine performance [4] - The FLEETPRO aftermarket parts will be accessible at all Case IH, New Holland, and STEYR authorized dealerships in the EMEA region [4] Group 3: Company Overview - CNH Industrial is a leader in equipment, technology, and services, focusing on innovation, sustainability, and productivity across its global and regional brands [5] - The company has a 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 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]