CNH Industrial (CNH) Q1 2025 Earnings Call May 01, 2025 09:00 AM ET Speaker0 Good morning, and welcome to the CNH twenty twenty five First Quarter Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. Thank you. I will now turn the call over to Jason Amersa, Vice President of Investor Relations. Please go ahead. Speaker1 Thank you, John, and good morning, everyone. We would like to welcome you to ...

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, ...

Financial Performance - First quarter consolidated revenues were $3.83 billion, down 21% compared to Q1 2024[1] - Net income for Q1 2025 was $132 million, a decrease of 64% from $369 million in Q1 2024[1] - Diluted earnings per share (EPS) for Q1 2025 was $0.10, down from $0.29 in Q1 2024[1] - Total revenues for Q1 2025 were $3,828 million, a decrease of 20.5% compared to $4,818 million in Q1 2024[34] - Net income attributable to CNH Industrial N.V. for Q1 2025 was $131 million, down 64.4% from $368 million in Q1 2024[34] - Adjusted diluted EPS for Q1 2025 was $0.10, compared to $0.29 in Q1 2024, reflecting a decline of 65.5%[34] - The company reported a net income of $132 million for Q1 2025, compared to $369 million in Q1 2024, reflecting a decline of 64%[40] - Adjusted net income for Q1 2025 was $132 million, down from $369 million in Q1 2024, with adjusted diluted EPS decreasing to $0.10 from $0.30[57] Segment Performance - Net sales of Industrial Activities were $3.17 billion, down 23% year-over-year[4] - Agriculture segment net sales decreased by 23% to $2.58 billion, primarily due to lower shipment volumes[8] - Construction segment net sales decreased by 22% to $591 million, driven by lower shipment volumes[11] - Adjusted EBIT of Industrial Activities decreased to $101 million, a 73% decline from $372 million in Q1 2024[4] - The Agriculture segment reported an EBIT of $139 million in Q1 2025, compared to $388 million in Q1 2024, reflecting a decline of 64%[51] Cash Flow and Liquidity - Cash and cash equivalents decreased to $1,695 million as of March 31, 2025, from $3,191 million at the end of 2024[36] - Net cash provided by operating activities for Q1 2025 was $162 million, a significant improvement from a net cash used of $894 million in Q1 2024[38] - The company reported a net decrease in cash, cash equivalents, and restricted cash of $1,468 million for Q1 2025[38] - Total cash and cash equivalents at the end of Q1 2025 were $2,398 million, down from $3,959 million at the end of Q1 2024, a decrease of 39%[47] - Free cash flow for Industrial Activities in Q1 2025 was $(567) million, an improvement from $(1,209) million in Q1 2024[56] Assets and Liabilities - Total assets as of March 31, 2025, were $42,057 million, down from $42,933 million at the end of 2024[36] - Total liabilities decreased to $34,098 million as of March 31, 2025, compared to $35,165 million at the end of 2024[36] - The company’s debt stood at $26,010 million as of March 31, 2025, down from $26,882 million at the end of 2024, a reduction of 3%[44] - The company reported a net cash (debt) position of $(23,526) million as of March 31, 2025, compared to $(22,947) million as of December 31, 2024[54] Forecast and Guidance - The company forecasts lower global industry retail sales in both agriculture and construction equipment markets for 2025[15] - Adjusted diluted EPS guidance for 2025 is between $0.50 to $0.70, revised from $0.65 to $0.75 previously[20] Restructuring and Expenses - The company reported a restructuring expense of $6 million in Q1 2025, significantly lower than the $31 million reported in Q1 2024[40] - Research and development expenses decreased to $184 million in Q1 2025 from $228 million in Q1 2024, a reduction of approximately 19%[40] - Restructuring expenses amounted to $6 million in Q1 2025, down from $30 million in Q1 2024, indicating a reduction in restructuring costs[52] Financial Services - Financial Services revenues decreased by 5% to $651 million, with net income down 24% to $90 million[12] - The company’s financial services segment reported a net income of $90 million in Q1 2025, down from $118 million in Q1 2024, a decrease of 24%[52]

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 Viewpoint - CNH announces the transition of its Chief Financial Officer from Oddone Incisa to Jim Nickolas, effective May 6, 2025, as part of its strategic business planning and growth ambitions [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 and will present the financial portion of the Company's Strategic Business Plan at the Investor Day on May 8, 2025 [1][2] Group 2: Company Background - CNH Industrial is a global leader in equipment, technology, and services, focusing on innovation, sustainability, and productivity [4] - The company operates under various brands, including Case IH, New Holland, and Raven, providing a wide range of agricultural and construction products [4][5] - CNH has a workforce of over 35,000 employees, emphasizing a diverse and inclusive workplace aimed at empowering customers [5]

Company Overview - CNH Industrial is a global equipment, technology, and services company focused on innovation, sustainability, and productivity [4] - The company operates under various brands, including Case IH, New Holland, CASE, STEYR, Raven, Hemisphere, Flexi-Coil, Miller, and Eurocomach, providing a wide range of agricultural and construction products [4] Annual General Meeting (AGM) Details - The 2025 AGM is scheduled for May 12, 2025, in Amsterdam, Netherlands, with a live webcast available on the company's website [1] - AGM materials, including audited financial statements, are accessible online, and shareholders can request hard copies free of charge [2] Dividend Declaration - The Board of Directors has proposed a cash dividend of USD $0.25 per share, pending shareholder approval [3] - If approved, the record date for the dividend will be May 21, 2025, and payment is expected on May 30, 2025 [3] Company Mission and Workforce - CNH Industrial emphasizes its commitment to customer empowerment and innovation, with over 35,000 employees in a diverse and inclusive workplace [5]

Group 1 - CNH brands, including Case IH and New Holland, are leading advancements in precision agriculture to address water scarcity in Uzbekistan and Turkmenistan through the Drops of the Future initiative [5][6] - The initiative aims to empower young professionals by fostering innovation and collaboration, marking the first partnership between OSCE and private companies on water and agri-food production [6][8] - The pilot project in Uzbekistan, developed in collaboration with xFarm, demonstrates how precision technology can enhance productivity and conserve water resources for farmers [5][6] Group 2 - The Tashkent Youth Workshop, which began in September 2024, brought together experts, policymakers, and industry leaders to discuss the ongoing impact of the initiative [8] - CNH Industrial is committed to innovation, sustainability, and productivity, providing strategic direction and R&D capabilities to support its global brands [8][9] - The company employs over 35,000 individuals globally, focusing on creating a diverse and inclusive workplace that empowers customers to achieve growth and success [9]

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 previously 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 recognizes Manley's leadership in diversity, inclusion, and transformation initiatives [4] Company Overview - CNH Industrial is a global leader in equipment, technology, and services, focusing on innovation, sustainability, and productivity [5] - The company operates brands such as Case IH, New Holland, CASE, and others, providing a wide range of agricultural and construction products [5] - CNH has a workforce of over 40,000 employees, emphasizing a diverse and inclusive workplace [6]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36085 CNH INDUSTRIAL N.V. (Exact name of registrant as specified in its charter) Netherlands 98-1125413 (State or other jurisdiction of incorpo ...

S&P Global yearbook emblem S&P Global Yearbook emblem for top 5% companies CNH ranks in top 5% of S&P Global’s 2025 Sustainability Yearbook The Company was recognized by S&P Global as the second highest performer in its industry group. Basildon, February 13, 2025 CNH (NYSE: CNH) has once again ranked in the top 5% in S&P Global’s 2025 Sustainability Yearbook. This year’s S&P Global Corporate Sustainability Assessment reviewed submissions from over 7,600 companies across 62 industries. This latest resu ...