Core Insights - CNH Industrial reported $3.83 billion in revenue for Q1 2025, a year-over-year decline of 20.6%, with an EPS of $0.10 compared to $0.33 a year ago, indicating a significant drop in profitability [1] - The revenue exceeded the Zacks Consensus Estimate of $3.79 billion by 1.14%, while the EPS surpassed the consensus estimate of $0.09 by 11.11% [1] Revenue Breakdown - Total Industrial Activities in Agriculture generated $2.58 billion, exceeding the five-analyst average estimate of $2.48 billion, but reflecting a year-over-year decline of 23.5% [4] - Total Industrial Activities in Construction reported $591 million, below the average estimate of $624.37 million, marking a 22% year-over-year decrease [4] - Net Sales amounted to $3.17 billion, surpassing the five-analyst average estimate of $3.12 billion, with a year-over-year decline of 23.2% [4] - Finance, interest, and other income reached $656 million, slightly below the estimated $660.13 million, representing a 4.5% year-over-year decline [4] - Financial Services generated $651 million, exceeding the average estimate of $635.15 million, but showing a 5% decrease compared to the previous year [4] - Total Industrial Activities reported $3.20 billion, above the average estimate of $3.15 billion, with a year-over-year decline of 23.3% [4] - Eliminations resulted in a loss of $25 million, significantly worse than the average estimate of $1.49 million, reflecting a 37.5% year-over-year decline [4] Adjusted EBIT Performance - Adjusted EBIT for Industrial Activities in Agriculture was $139 million, slightly below the average estimate of $143.03 million [4] - Adjusted EBIT for Industrial Activities in Construction was $14 million, below the average estimate of $21.91 million [4] - Adjusted EBIT for Unallocated items, eliminations, and other was -$52 million, compared to the average estimate of -$54.20 million [4] - Total Industrial Activities adjusted EBIT was $101 million, exceeding the average estimate of $83.73 million [4] Stock Performance - CNH shares have returned -6.2% over the past month, contrasting with the Zacks S&P 500 composite's -0.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - Consolidated revenues for Q1 2025 were down 21% at $3.8 billion, with industrial adjusted EBIT at $101 million, down 73% year-over-year, and EPS for the quarter at $0.10 [12][19] - Free cash flow for industrial activities was an outflow of $567 million, which is significantly better compared to Q1 2024 due to more contained growth of finished goods and component inventories [19] - Gross margin for agriculture was 20%, down 380 basis points year-over-year, primarily due to lower production volumes and unfavorable mix, partially offset by operational cost reductions [19] Business Line Data and Key Metrics Changes - In agriculture, net sales decreased 23% in Q1 2025, driven by lower shipments across all regions due to weak industry demand and network destocking [19] - Construction net sales for Q1 were $591 million, down 22% year-over-year, with a gross margin of 14.9%, down 250 basis points compared to Q1 2024 [21] - Financial Services segment reported net income of $90 million, with a year-over-year decrease mainly due to higher expected risk costs and taxes [22] Market Data and Key Metrics Changes - Retail demand was slow in Q1, with production hours down 26% compared to Q1 2024, agriculture down 27%, and construction down 19% [13] - The Turkish market showed continued softness, impacting joint venture results in the Other category [21] - Delinquencies increased, particularly in South America and growing in North America, aligning with expectations during a downturn [22] Company Strategy and Development Direction - The company is focused on operational excellence, advancing technologies, and executing cost-saving initiatives while preparing for a new model year lineup [11][14] - The company aims to balance production levels with market demand, keeping production low to manage inventory effectively [12][14] - Strategic discussions are ongoing regarding potential partnerships in the construction business, but decisions are paused until market uncertainty settles [41] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the soft industry demand and the need for a cautious approach to production and inventory management [12][16] - The company expects the second half of the year to show improved profitability, returning to double-digit margins [67] - Management is actively monitoring tariff discussions and their potential impacts on operations and pricing strategies [15][28] Other Important Information - The company announced leadership changes, including the appointment of Jim Nicholas as the new CFO [6][10] - The company is committed to maintaining a strong presence in North America while adapting to global trade changes [31][35] - The company is preparing for an Investor Day to provide more insights into its product roadmap and strategic initiatives [44] Q&A Session Summary Question: Can you quantify the EPS impact from tariffs? - Management indicated that all changes in guidance are due to tariff scenarios, with a midpoint estimate reflecting potential impacts [50][51] Question: What is the outlook for production costs related to quality? - Management expects quality-related costs to improve in the coming quarters as product quality has been enhanced [55][56] Question: Can you elaborate on price adjustments and procurement efforts? - Price adjustments are moderate and aligned with cost movements, and the company is actively working with suppliers to share tariff-related costs [61][63] Question: How should we think about ag segment margins as the year progresses? - The first quarter is typically low, with expectations for improved margins in the second half of the year [66][67] Question: What is the current state of dealer inventories? - The company aims for a significant inventory reduction, having achieved a $100 million reduction in Q1, and will continue to monitor production levels closely [81][82]

Financial Data and Key Metrics Changes - Consolidated revenues for Q1 2025 were down 21% at $3.8 billion, with industrial adjusted EBIT down 73% to $101 million, and EPS for the quarter was $0.10 [12][20][23] - Free cash flow for industrial activities was a $567 million outflow, which is an improvement compared to Q1 2024 due to better management of finished goods and component inventories [20][23] - Gross margin for agriculture was 20%, down 380 basis points year over year, primarily due to lower production volumes and unfavorable mix [20][21] Business Line Data and Key Metrics Changes - Agriculture net sales decreased 23% in Q1 2025, driven by lower shipments across all regions due to weak industry demand and dealer destocking [20][22] - Construction net sales for Q1 were $591 million, down 22% year over year, primarily due to lower shipment volumes in North America [22] - Financial Services segment reported net income of $90 million, with a year-over-year decrease mainly due to higher expected risk costs and taxes [23][24] Market Data and Key Metrics Changes - Retail demand was slow, with production hours down 26% compared to Q1 2024, with agriculture down 27% and construction down 19% [13] - The Turkish market showed continued softness, impacting joint venture results in the Other category [22] - Delinquencies increased, particularly in South America and North America, aligning with expectations during a downturn [25] Company Strategy and Development Direction - The company is focused on operational excellence, advancing technologies, and executing cost-saving initiatives while preparing for a new model year lineup [11][12] - A modest price adjustment was implemented in North America for new orders, with the aim to share tariff cost impacts with suppliers [15][63] - The company is committed to maintaining a balanced global exposure and is actively engaged in scenario planning regarding tariffs and trade impacts [30][31] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the current market headwinds and the necessity of keeping production low to navigate the downturn effectively [12][17] - The company expects a gradual recovery in the second half of the year, with a return to double-digit profitability in agriculture [68] - There is cautious optimism regarding the potential for a rebound in demand, particularly in Brazil, contingent on global trade developments [88] Other Important Information - The CFO announced his departure effective May 6, with Jim Nicholas set to succeed him [5][6] - The company is preparing for an Investor Day to provide more insights into its product roadmap and strategic initiatives [11][45] Q&A Session Summary Question: Can you quantify the EPS headwind from tariffs? - Management indicated that all changes in guidance are due to tariff scenarios, with a midpoint estimate provided for potential impacts [51][53] Question: What is the outlook for production costs in the Ag business? - Management confirmed that production costs were down, with expectations for improved quality and reduced warranty spend in the coming quarters [55][57] Question: Can you elaborate on price adjustments and procurement efforts? - Price adjustments were implemented to balance cost increases, and discussions with suppliers are ongoing to share tariff-related costs [63][65] Question: How should we think about Ag segment margins as the year progresses? - The first quarter is typically low, with expectations for improved margins in the second half of the year [68] Question: What is the current state of dealer inventories? - The company reported a $100 million reduction in dealer inventories, with plans to continue monitoring and adjusting production levels [85][86]

分组1 - CNH Industrial reported quarterly earnings of $0.10 per share, exceeding the Zacks Consensus Estimate of $0.09 per share, but down from $0.33 per share a year ago, representing an earnings surprise of 11.11% [1] - The company posted revenues of $3.83 billion for the quarter, surpassing the Zacks Consensus Estimate by 1.14%, but down from $4.82 billion year-over-year [2] - Over the last four quarters, CNH has only surpassed consensus EPS estimates once and has topped consensus revenue estimates just once [2] 分组2 - The stock has increased approximately 2.1% since the beginning of the year, while the S&P 500 has declined by 5.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.17 on revenues of $4.47 billion, and for the current fiscal year, it is $0.64 on revenues of $17.06 billion [7] - The Manufacturing - Farm Equipment industry, to which CNH belongs, is currently ranked in the bottom 32% of over 250 Zacks industries, indicating potential challenges ahead [8]

Q1 2025 RESULTS REVIEW May 1, 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 products, ...

[First Quarter 2025 Financial and Operational Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20and%20Operational%20Highlights) CNH Industrial reported a significant decline in Q1 2025 results, with consolidated revenues falling 21% to $3.8 billion and diluted EPS dropping to $0.10, driven by lower demand and dealer destocking [Q1 2025 Performance Summary](index=1&type=section&id=Q1%202025%20Performance%20Summary) CNH Industrial reported a significant decline in Q1 2025 results, with consolidated revenues falling 21% to $3.8 billion and diluted EPS dropping to $0.10, driven by lower demand and dealer destocking | Metric | Q1 2025 | Q1 2024 | Change | Change at constant currency | | :--- | :--- | :--- | :--- | :--- | | **Consolidated revenues** | $3,828 Million | $4,818 Million | (21)% | (17)% | | **Net sales of Industrial Activities** | $3,172 Million | $4,131 Million | (23)% | (21)% | | **Net income** | $132 Million | $369 Million | (64)% | - | | **Diluted EPS** | $0.10 | $0.29 | ($0.19) | - | | **Adjusted net income** | $132 Million | $388 Million | (66)% | - | | **Adjusted diluted EPS** | $0.10 | $0.30 | ($0.20) | - | | **Cash flow from operating activities** | $162 Million | ($894) Million | +$1,056 Million | - | | **Free cash flow of Industrial Activities** | ($567) Million | ($1,209) Million | +$642 Million | - | - The decline in Net sales of Industrial Activities was mainly attributed to lower shipments resulting from decreased industry demand and dealer destocking[4](index=4&type=chunk) - Management emphasized a focus on reducing dealer inventories and managing costs to navigate current macroeconomic uncertainties, expressing confidence in strategic initiatives ahead of the upcoming Investor Day[1](index=1&type=chunk) [Segment Performance](index=3&type=section&id=Segment%20Performance) This section details the performance of Agriculture, Construction, and Financial Services segments, all experiencing revenue declines and margin contractions [Agriculture](index=3&type=section&id=Agriculture) The Agriculture segment saw a 23% decline in net sales to $2.58 billion and a 64% drop in Adjusted EBIT to $139 million due to lower demand and shipments | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **Net sales** | $2,581 Million | $3,373 Million | (23)% | | **Gross profit margin** | 20.0% | 23.8% | (380) bps | | **Adjusted EBIT** | $139 Million | $388 Million | (64)% | | **Adjusted EBIT margin** | 5.4% | 11.5% | (610) bps | - Industry demand for tractors and combines fell sharply in North America (down **12-51%**) and EMEA (down **23-34%**), while South America saw a rebound with tractor and combine demand up **10%** and **1%** respectively[7](index=7&type=chunk) - The decrease in Adjusted EBIT was primarily caused by lower shipment volumes, partially offset by improved purchasing and manufacturing costs and reduced SG&A expenses[9](index=9&type=chunk) [Construction](index=3&type=section&id=Construction) The Construction segment's net sales decreased by 22% to $591 million, with Adjusted EBIT falling 73% to $14 million due to lower volumes and unfavorable pricing | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **Net sales** | $591 Million | $758 Million | (22)% | | **Gross profit margin** | 14.9% | 17.4% | (250) bps | | **Adjusted EBIT** | $14 Million | $51 Million | (73)% | | **Adjusted EBIT margin** | 2.4% | 6.7% | (430) bps | - Global industry volume for Heavy construction equipment increased by **2%**, while Light construction equipment decreased by **6%**, with aggregated demand falling in North America (**-11%**), EMEA (**-9%**), and South America (**-1%**), but growing in Asia Pacific (**+7%**)[10](index=10&type=chunk) [Financial Services](index=3&type=section&id=Financial%20Services) Financial Services revenues declined 5% to $651 million, with net income decreasing 24% to $90 million due to currency impacts and increased risk costs | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **Revenues** | $651 Million | $685 Million | (5)% | | **Net income** | $90 Million | $118 Million | (24)% | - The managed portfolio stood at **$28.0 billion** as of March 31, 2025, a slight decrease from the prior year[14](index=14&type=chunk) - The balance of receivables more than 30 days past due as a percentage of the receivable portfolio increased to **2.3%** from **1.7%** as of March 31, 2024[14](index=14&type=chunk) [2025 Outlook](index=4&type=section&id=2025%20Outlook) CNH updated its 2025 full-year guidance, lowering and widening ranges for net sales, EBIT margins, and EPS due to macroeconomic uncertainty and inventory reduction strategy [Updated 2025 Full-Year Guidance](index=4&type=section&id=Updated%202025%20Full-Year%20Guidance) CNH updated its 2025 outlook, lowering and widening guidance ranges for net sales, EBIT margins, and EPS due to macroeconomic uncertainty and inventory reduction strategy - The company anticipates lower global industry retail sales in 2025 for both agriculture and construction equipment markets compared to 2024[15](index=15&type=chunk) - CNH is focused on reducing excess channel inventory by producing fewer units than the retail demand level, which will negatively impact 2025 net sales[15](index=15&type=chunk) | Metric | Updated 2025 Outlook | Previous 2025 Outlook | | :--- | :--- | :--- | | **Agriculture Net Sales (YoY)** | Down 12% to 20% | Down 13% to 18% | | **Agriculture Adj. EBIT Margin** | 7% to 9% | 8.5% to 9.5% | | **Construction Net Sales (YoY)** | Down 4% to 15% | Down 5% to 10% | | **Construction Adj. EBIT Margin** | 2% to 4% | 4% to 5% | | **Free Cash Flow of Industrial Activities** | $100 Million to $500 Million | $200 Million to $500 Million | | **Adjusted Diluted EPS** | $0.50 to $0.70 | $0.65 to $0.75 | [Financial Statements](index=8&type=section&id=Financial%20Statements) This section presents the Consolidated Statements of Operations, Balance Sheets, and Cash Flows, detailing the company's financial performance and position [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) This statement details the company's revenues, costs, and profits, showing a decline in total revenues from **$4.8 billion** to **$3.8 billion** and net income from **$369 million** to **$132 million** | ($ million, except per share data) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Total Revenues** | $3,828 | $4,818 | | Cost of goods sold | $2,569 | $3,195 | | Total Costs and Expenses | $3,666 | $4,416 | | Income before Income Taxes | $162 | $402 | | **Net Income** | $132 | $369 | | Net Income attributable to CNH | $131 | $368 | | **Diluted EPS** | $0.10 | $0.29 | [Consolidated Balance Sheets](index=9&type=section&id=Consolidated%20Balance%20Sheets) This statement shows the company's financial position, highlighting a decrease in cash from **$3.2 billion** to **$1.7 billion** and total debt from **$26.9 billion** to **$26.0 billion** | ($ million) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $1,695 | $3,191 | | Inventories, net | $5,156 | $4,776 | | **Total Assets** | **$42,057** | **$42,933** | | **Liabilities and Equity** | | | | Debt | $26,010 | $26,882 | | **Total Liabilities** | **$34,098** | **$35,165** | | **Total Equity** | **$7,902** | **$7,713** | [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This statement details cash flows from operating, investing, and financing activities, showing a significant improvement in net cash from operating activities to **$162 million** from a **($894 million)** use | ($ million) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Net cash provided (used) by operating activities** | **$162** | **($894)** | | Net cash provided (used) by investing activities | ($280) | ($419) | | Net cash provided (used) by financing activities | ($1,422) | $319 | | Net increase (decrease) in cash, cash equivalents and restricted cash | ($1,468) | ($1,086) | [Supplemental Financial Information and Non-GAAP Reconciliations](index=5&type=section&id=Supplemental%20Financial%20Information%20and%20Non-GAAP%20Reconciliations) This section provides reconciliations for key non-GAAP financial metrics and details an immaterial correction to prior period financial statements [Non-GAAP Reconciliations](index=18&type=section&id=Non-GAAP%20Reconciliations) This section provides reconciliations for key non-GAAP metrics, including Adjusted EBIT by segment, Net Cash (Debt), Free Cash Flow of Industrial Activities, and Adjusted Diluted EPS Adjusted EBIT of Industrial Activities by Segment | ($ million) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Agriculture | $139 | $388 | | Construction | $14 | $51 | | Unallocated items, eliminations and other | ($52) | ($67) | | **Total Adjusted EBIT of Industrial Activities** | **$101** | **$372** | Reconciliation to Free Cash Flow of Industrial Activities | ($ million) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided (used) by Operating Activities | $162 | ($894) | | Less: Cash flows from Operating Activities of Financial Services | (638) | (198) | | Less: Investments in PP&E and intangibles of Industrial Activities | (103) | (96) | | Other adjustments | 12 | (21) | | **Free cash flow of Industrial Activities** | **($567)** | **($1,209)** | [Revision of Prior Period Financial Statements](index=22&type=section&id=Revision%20of%20Prior%20Period%20Financial%20Statements) The company disclosed an immaterial correction to prior period financial statements due to accounting treatment for an unconsolidated affiliate in Türkiye under highly inflationary conditions - An immaterial correction was made to prior periods' results for the accounting treatment related to the highly inflationary economy in Türkiye and its impact on an unconsolidated affiliate[58](index=58&type=chunk) - The correction fixed an overstatement of CNH's 'Equity in income of unconsolidated subsidiaries and affiliates' by **$96 million** in 2023 and **$67 million** in the first half of 2024[58](index=58&type=chunk) Impact of Revision on Q1 2024 Results | ($ million, except EPS) | Previously Reported | Revision Impacts | As Revised | | :--- | :--- | :--- | :--- | | Equity in income of unconsolidated subsidiaries | $77 | ($33) | $44 | | Net income | $402 | ($33) | $369 | | Diluted EPS | $0.31 | ($0.02) | $0.29 |

Financial Performance - CNH Industrial reported consolidated revenues of $3.83 billion for Q1 2025, a decrease of 21% compared to Q1 2024 [1][5] - Net income for the quarter was $132 million, down 64% from $369 million in the same period last year [1][6] - Diluted earnings per share (EPS) were $0.10, compared to $0.29 in Q1 2024, reflecting a decline of $0.19 [1][5] Segment Performance - Net sales of Industrial Activities were $3.17 billion, down 23% year-over-year, primarily due to lower shipments and dealer destocking [1][5][10] - In the Agriculture segment, net sales decreased by 23% to $2.58 billion, with a gross profit margin of 20.0%, down from 23.8% [8][10][11] - The Construction segment saw net sales decline by 22% to $591 million, with an adjusted EBIT margin of 2.4%, down from 6.7% [12][13] Cash Flow and Financial Health - Cash flow provided by operating activities was $162 million, a significant improvement from a cash outflow of $894 million in Q1 2024 [1][7] - Industrial free cash flow absorption was $567 million, showing a year-over-year improvement of $642 million [1][7] - Cash and cash equivalents decreased to $1.70 billion from $3.19 billion at the end of Q1 2024 [5][37] Market Outlook - The company anticipates lower global industry retail sales in both agriculture and construction equipment markets for 2025 compared to 2024 [17][18] - CNH is focused on reducing excess channel inventory by producing fewer units than retail demand levels, which will lead to lower net sales in 2025 [17][18] - The ongoing macroeconomic uncertainties and potential global trade scenarios, including tariffs, may impact the company's forecasts for the year [19][20]

Core Points - CNH will release its financial results for the First Quarter of 2025 on May 1, 2025, with a live webcast starting at 9:00 a.m. ET [1] - A replay of the financial results conference call will be available for 12 months on the corporate website [1] Company Overview - CNH Industrial (NYSE:CNH) is a global leader in equipment, technology, and services, focusing on innovation, sustainability, and productivity [3] - The company provides strategic direction, R&D capabilities, and investments to support its global and regional brands [3] - CNH's brands include Case IH and New Holland for agriculture, and CASE and New Holland Construction Equipment for construction products [3] - Regionally focused brands include STEYR for agricultural tractors, Raven for digital agriculture, Hemisphere for satellite-based positioning, Flexi-Coil for tillage systems, Miller for application equipment, and Eurocomach for mini and midi excavators [3] Company History and Workforce - CNH has a history of over two centuries as a pioneer in its sectors, continuously innovating to enhance customer efficiency and success [4] - The company employs over 35,000 individuals in a diverse and inclusive workplace, dedicated to empowering customers [4]

Core Viewpoint - CNH announces the transition of its Chief Financial Officer from Oddone Incisa to Jim Nickolas, effective May 6, 2025, with a focus on ensuring a seamless transition and continued financial leadership [1][3][4]. Group 1: Leadership Transition - Oddone Incisa will step down after a 28-year career with CNH and the former Fiat Group, having held various senior roles in Finance and Commercial Lending [3]. - Jim Nickolas, with over 30 years of experience in corporate finance and M&A, will take over as CFO, bringing expertise from his previous roles at Martin Marietta and Caterpillar [2][4]. Group 2: Company Overview - CNH Industrial is a global leader in equipment, technology, and services, focusing on innovation, sustainability, and productivity [4][5]. - The company operates under various brands, including Case IH, New Holland, and CASE, providing a wide range of agricultural and construction products [4][5]. Group 3: Future Plans - Jim Nickolas will present the financial portion of the Company's Strategic Business Plan at the Investor Day scheduled for May 8, 2025, indicating a forward-looking approach to growth [1][4].

CNH is leveraging cutting-edge technology to innovate training Basildon, April 3, 2025 CNH continues to break new ground in its use of cutting-edge technology to train its people, customers and partners. Using simulators, the metaverse, and augmented reality, we are investing in cutting-edge technologies to upskill our workforce in Latin America. This helps our employees, customers and partners to fully harness the potential of our brands' iconic machines. Among the resources used by CNH for training are c ...