CNH uses automation to boost productivity and sustainability at parts depot Basildon, March 4, 2025 On World Engineering Day CNH releases the first installment in its latest ‘A Sustainable Year' series. The article "Engineers mastermind automation at a depot with many moving parts" looks at the impact of the AutoStore™ automation initiative at one of our North American parts depots in Lebanon, Indiana, USA. This 19-acre depot operates close to 24 hours a day, seven days a week, serving our global dealer n ...

Leadership Transition - CNH announces Francesco Tutino as the new Chief Human Resources Officer (CHRO) effective May 1, 2025, succeeding Kelly Manley who served for 20 years [1][2] - Tutino has over 10 years of experience with CNH and Iveco Group, and was most recently Group Chief HR & Organization Officer at Prysmian [3] Contributions and Achievements - Kelly Manley contributed to establishing a strong company culture, advancing sustainability commitments, and achieving operational targets during her tenure [4] - The company expresses gratitude for Manley's leadership, which began in diversity and inclusion before transitioning to CHRO [4] Company Overview - CNH Industrial is a global leader in equipment, technology, and services, focusing on innovation, sustainability, and productivity [5] - The company offers a wide range of agricultural and construction products through its brands, including Case IH, New Holland, and others [5] - CNH has a diverse workforce of over 40,000 employees, committed to empowering customers and driving efficiency [6]

Financial Performance - Consolidated revenues for 2024 were $19,836 million, a decrease of 20% compared to $24,687 million in 2023[31]. - Net sales of industrial activities fell by 23% from $22,080 million in 2023 to $17,060 million in 2024[32]. - Net income for 2024 was $1,259 million, down 45% from $2,287 million in 2023[31]. - Diluted earnings per share decreased from $1.69 in 2023 to $0.99 in 2024, a decline of $0.70[32]. - As of December 31, 2024, the company reported a consolidated gross indebtedness of $26,882 million, with $23,173 million related to Financial Services activities[177]. - The funded status for the company's defined benefit pension plans showed a deficit of $356 million as of December 31, 2024[175]. - Rising interest rates could negatively impact customer demand for products and services, as well as customers' ability to service financing provided by the Financial Services segment[170]. - Negative economic conditions could lead to increased delinquencies and defaults, adversely affecting the performance of Financial Services and overall earnings[174]. Market Dynamics - The agriculture machinery industry is influenced by factors such as net farm income, government subsidies, and weather conditions[33]. - The construction equipment market is segmented into heavy and light construction equipment, with the former weighing more than 12 metric tons[40]. - In developed markets, customers prefer sophisticated machines with advanced technology, while in developing markets, cost-effective and durable equipment is favored[41]. - The demand for heavy construction equipment is closely linked to government spending and economic growth, with a significant portion tied to infrastructure projects[45]. - The light construction equipment market is influenced by residential and commercial construction levels, which are affected by interest rates and financing availability[47]. - The agricultural equipment market is cyclical and influenced by factors such as farm income, commodity prices, and weather conditions, which can adversely affect demand for agricultural equipment[115]. - Climate change and unfavorable weather conditions could significantly affect agricultural equipment purchasing decisions, impacting demand for the company's products[133]. Strategic Initiatives - The company acquired Augmenta in 2023, enhancing its capabilities in automating and optimizing farming operations[21]. - CNH began production of full-electric compact construction equipment in 2023, including electric mini excavators and compact wheel loaders[29]. - A multi-year supply chain transformation program was initiated in 2023 to enhance supplier relationships and foster co-development initiatives[70]. - The company plans to invest significantly in research and development to enhance precision technology solutions, including automation and electrification, to remain competitive in the market[126]. - A new Global Leadership Team has been established to focus on profitable long-term growth, particularly in the Agriculture segment, but the implementation may involve complexities and risks[130]. Financial Services - Financial Services segment provides wholesale financing to dealers and distributors, primarily for inventory financing[30]. - Financial Services offers a range of financing products, including retail notes and dealer floorplan financing, to support equipment sales and customer loyalty[71]. - Financial Services funds operations through term receivable securitizations, secured and unsecured facilities, and retained earnings[85]. - Dealer financing includes a fixed period of "interest-free" financing, with costs recognized as a reduction in net sales[81]. - Financial Services' minimum down payment guidelines for equipment range from 5% to 30% based on various factors[80]. Operational Challenges - The company faces risks from global economic conditions, including changes in interest rates and inflation, which could negatively impact demand for its products[114]. - Competitive activity in the agricultural and construction equipment markets has intensified, with competitors potentially offering products at lower prices, affecting the company's market position[123]. - The company is exposed to political and economic risks due to its global operations, which may impact manufacturing and sales capabilities[116]. - Changes in government policies, such as subsidies and trade agreements, can significantly influence the company's revenue and operational strategies[125]. - The company relies on suppliers for raw materials, and disruptions in the supply chain could adversely affect manufacturing capabilities and costs[141]. - Fluctuations in the availability and price of raw materials, such as steel and aluminum, could lead to increased production costs, adversely affecting financial performance[143]. - Dealer inventory management decisions could negatively impact sales if dealers do not maintain sufficient inventory to meet customer demand[146]. Compliance and Regulatory Risks - The company is subject to increased regulatory scrutiny and reporting requirements, which may raise compliance costs and risks of investigations[148]. - The company faces significant cybersecurity risks, including threats from malware and phishing attacks, which could compromise confidential information and negatively impact operations[150]. - A material weakness in internal control over financial reporting has been identified, specifically related to IT general controls and inventory management, which could affect the accuracy of financial reporting[164]. - Compliance with increasingly stringent environmental regulations is expected to incur substantial costs, impacting the company's ability to sell products in certain jurisdictions[156]. - The company is subject to extensive laws and regulations, including anti-corruption and antitrust laws, which could lead to investigations and penalties, adversely affecting business operations[159]. - Difficulty in obtaining financing or refinancing existing debt could negatively impact financial performance, especially in unfavorable market conditions[165]. Shareholder Information - The company’s common stock was listed on the NYSE under the symbol "CNH" as of May 20, 2024, transitioning from "CNHI" and previously listed on Euronext Milan[205]. - As of January 31, 2025, there were 407 registered holders of the company's common stock, excluding those holding shares through brokers and other nominees[206]. - The cumulative total shareholder return for the company was $130 for the five-year period ending December 31, 2024, compared to $164 for the S&P Midcap 400 Index[208]. - The company maintains a dividend policy allowing for annual dividends of 25-35% of consolidated net income, with future payments dependent on earnings and financial condition[209]. - In February 2024, the company authorized a $500 million share buyback program effective March 1, 2024, allowing for repurchase of common shares based on market conditions[211]. Employee and Diversity Initiatives - Employee count as of December 31, 2024, is 35,850, including 10,342 in the U.S. and Canada[89]. - CNH's commitment to diversity and inclusion was formalized in a policy adopted in 2023[91]. - The company aims for a zero-accident and zero-injury rate in its occupational health and safety initiatives[94]. - Employee compensation includes base salary, benefits, and performance-based incentives, aligned with market benchmarks[95]. - The ability to attract and retain qualified personnel is critical for executing business strategy and expansion, with potential impacts from higher employee turnover rates[155].

Core Insights - CNH has been recognized by S&P Global as ranking in the top 5% of its industry in the 2025 Sustainability Yearbook, achieving the second highest performance in its industry group [1][2] - The company scored 79 out of 100 in the Machinery and Electrical Equipment Industry category and has also been included in S&P Global's Dow Jones Sustainability World and North America Indices [2] Sustainability Efforts - CNH emphasizes its commitment to sustainability by focusing on technologies that enhance efficiency and reduce environmental impact, including automation and sensor technologies in its products [4] - The company has made significant strides in cutting carbon emissions, increasing renewable energy use, and expanding remanufacturing efforts [4] - Recent product innovations include the launch of the industry's first electric backhoe loader, which offers zero noise and zero emissions solutions [4] Recognition and Awards - CDP has awarded CNH A- scores for Climate and Water in its 2024 results, highlighting the company's environmental performance [5] - The company has a long history of innovation and customer efficiency, with over 40,000 employees contributing to its diverse and inclusive workplace [6] Company Overview - CNH Industrial is a global leader in equipment, technology, and services, focusing on innovation, sustainability, and productivity [5] - The company operates various brands, including Case IH, New Holland, CASE, and New Holland Construction Equipment, providing a comprehensive range of agricultural and construction products [5]

Company Overview - CNH Industrial is the second-largest farming equipment manufacturer globally, indicating a strong position in the agricultural sector [1]. Industry Insights - The agricultural equipment business exhibits significant cyclicality, presenting potential investment opportunities during different phases of the cycle [1]. Investment Strategy - The focus is on long-term growth and dividend growth investing, emphasizing the importance of profitability over low valuation [1]. - Key metrics for evaluation include margins, free cash flow stability and growth, and returns on invested capital [1].

Core Insights - CNH Industrial reported a significant decline in fourth-quarter 2024 adjusted earnings per share (EPS) of 15 cents, down from 42 cents in the prior-year quarter, and missed the Zacks Consensus Estimate of 19 cents [1] - Consolidated revenues for the fourth quarter fell nearly 28% year over year to $4.88 billion, also missing the consensus mark of $4.89 billion [1] Segmental Performance - The Agriculture segment experienced a 31% year-over-year decline in net sales to $3.41 billion, missing the estimate of $3.43 billion, with adjusted EBIT down 62% to $244 million [3] - The Construction segment's sales dropped 33% year over year to $718 million, missing the estimate of $756 million, with adjusted EBIT down 71% to $18 million [4] - The Financial Services segment's revenues fell 3% to $743 million but surpassed the estimate of $648.8 million, with net income decreasing to $92 million from $113 million in the prior year [5] Financial Details - As of December 31, 2024, CNH Industrial had cash and cash equivalents of $3.19 billion, down from $4.32 billion a year earlier, while total debt decreased to $26.88 billion from $27.33 billion [6] - The company reported net cash provided by operating activities of $1.69 billion, an increase from $1.51 billion in the previous year [6] - Free cash flow from industrial activities was $848 million in the fourth quarter, down from $1.63 billion in the same quarter of 2023 [7] Guidance for 2025 - For 2025, Agriculture sales are expected to decrease by 13-18%, compared to a 23% decline in 2024, with adjusted EBIT margin projected between 8.5-9.5% [8] - Construction segment sales are anticipated to decline by 5-10% year over year, compared to a 22% decline in 2024 [8] - The company expects free cash flow from industrial activities to range between $200-$500 million, contrasting with a free cash outflow of $401 million in 2024, and adjusted EPS is projected between 65 cents and 75 cents, down from 99 cents in 2024 [9]

Q4 2024 RESULTS REVIEW February 4, 2025 SAFE HARBOR STATEMENT AND DISCLOSURES All statements other than statements of historical fact contained in this presentation 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 prod ...

Core Insights - CNH Industrial reported a revenue of $4.88 billion for the quarter ended December 2024, reflecting a decline of 28.2% year-over-year and a slight miss of 0.28% against the Zacks Consensus Estimate of $4.89 billion [1] - The earnings per share (EPS) for the quarter was $0.15, down from $0.42 in the same quarter last year, resulting in an EPS surprise of -21.05% compared to the consensus estimate of $0.19 [1] Revenue Breakdown - Total Industrial Activities in Agriculture generated $3.41 billion, exceeding the average estimate of $3.38 billion but down 31.1% year-over-year [4] - Total Industrial Activities in Construction reported revenues of $718 million, below the average estimate of $733.34 million, marking a 33% decline from the previous year [4] - Net Sales amounted to $4.13 billion, slightly below the average estimate of $4.16 billion, representing a 31.4% decrease year-over-year [4] - Finance, interest, and other income reached $747 million, surpassing the average estimate of $732.63 million, but down 3.5% year-over-year [4] - Financial Services revenues were $743 million, closely matching the average estimate of $743.95 million, with a year-over-year decline of 3.3% [4] - Total Industrial Activities revenue was $4.16 billion, in line with the average estimate, but down 31.5% compared to the year-ago quarter [4] - Eliminations reported a loss of $28 million, significantly worse than the average estimate of $2.45 million, reflecting a 40.4% decline year-over-year [4] Adjusted EBIT Performance - Adjusted EBIT for Industrial Activities in Agriculture was $244 million, below the average estimate of $283.61 million [4] - Adjusted EBIT for Industrial Activities in Construction was $18 million, exceeding the average estimate of $15.69 million [4] - Adjusted EBIT for Unallocated items, eliminations, and other activities was -$68 million, worse than the average estimate of -$54.82 million [4] - Total Adjusted EBIT for Industrial Activities was $194 million, falling short of the average estimate of $250.97 million [4] Stock Performance - CNH shares have returned +10.6% over the past month, outperforming the Zacks S&P 500 composite, which saw a +1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

CNH Industrial (CNH) Q4 2024 Earnings Call February 04, 2025 09:00 AM ET Company Participants Jason Omerza - VP of Investor RelationsGerrit Marx - CEO & Head of AgricultureOddone Incisa - CFOTami Zakaria - Executive DirectorAngel Castillo - Executive DirectorDavid Raso - Senior Managing Director & PartnerJamie Cook - Managing Director - Equity ResearchDaniela Costa - Managing DirectorAvi Jaroslawicz - Equity Research Associate Conference Call Participants Mircea Dobre - Associate Director of Research & Seni ...

Group 1: Earnings Performance - CNH Industrial reported quarterly earnings of $0.15 per share, missing the Zacks Consensus Estimate of $0.19 per share, and down from $0.42 per share a year ago, representing an earnings surprise of -21.05% [1] - The company posted revenues of $4.88 billion for the quarter ended December 2024, missing the Zacks Consensus Estimate by 0.28%, and down from $6.79 billion year-over-year [2] - Over the last four quarters, CNH has surpassed consensus EPS estimates just once and topped consensus revenue estimates only once [2] Group 2: Stock Performance and Outlook - CNH shares have increased approximately 10.9% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] - The company's earnings outlook, including current consensus earnings expectations for upcoming quarters, will be crucial for investors [4] - The current consensus EPS estimate for the coming quarter is $0.15 on revenues of $3.97 billion, and for the current fiscal year, it is $0.90 on revenues of $17.73 billion [7] Group 3: Industry Context - The Manufacturing - Farm Equipment industry, to which CNH belongs, is currently in the bottom 26% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of CNH's stock may be influenced by the overall outlook for the industry [8] - Another competitor in the same industry, Deere, is expected to report a significant decline in earnings, with a projected EPS of $3.14, down 49.6% year-over-year [9]