Group 1 - CNH Industrial N.V. announced the pricing of Cdn$500 million in aggregate principal amount of 3.75% notes due June 5, 2029, with an issue price of 100.00% [1] - The offering is expected to close on June 5, 2025, subject to customary closing conditions [1] - The net proceeds from the offering will be used for working capital and other general corporate purposes, including the purchase of receivables and repayment of indebtedness [2] Group 2 - The notes are senior unsecured obligations and will pay interest semi-annually starting December 5, 2025 [3] - The notes will be guaranteed by CNH Industrial Capital LLC, CNH Industrial Capital America LLC, and New Holland Credit Company, LLC, all of which are indirect wholly owned subsidiaries of CNH Industrial N.V. [3] - The securities offered in the private placement have not been qualified for sale to the public under applicable securities laws in Canada [4] Group 3 - The securities have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States without an effective registration statement or applicable exemption [5] - This press release does not constitute an offer to sell or a solicitation of an offer to buy any of these securities [6] - CNH Industrial Capital LLC primarily underwrites and manages financing products for customers and dealers of CNH Industrial North America [7]

Core Insights - CNH has signed an agreement with SpaceX's Starlink to provide satellite connectivity solutions for farmers, enhancing the capabilities of its brands, including Case IH and New Holland [1][5][6] - The collaboration aims to deliver robust and affordable high-speed internet, enabling a fully connected fleet in remote rural areas [1][2][5] Connectivity Solutions - Starlink's advanced satellite network offers reliable, low-latency internet, which enhances the communication and coordination of CNH's intelligent machines, thereby improving productivity and yield [3][4] - The integration with CNH's FieldOps digital platform allows customers to monitor their machines and access data from anywhere, enhancing farm management capabilities [3][4] Precision Technology Applications - The partnership facilitates prescription spraying, allowing for quicker application of crop protection products, which can lead to improved crop yields [4] - CNH's FieldXplorer platform utilizes AI to create field maps from drone images, and with Starlink, data can be exported rapidly to generate prescription spraying maps [4] Company Overview - CNH Industrial is a global leader in equipment, technology, and services, focusing on innovation, sustainability, and productivity [6][7] - The company operates various brands, including Case IH, New Holland, and STEYR, providing a comprehensive range of agricultural and construction products [6][7]

Core Points - CNH Industrial held its 2025 Annual General Meeting (AGM) where shareholders appointed and re-appointed key executive and non-executive directors [1] - The AGM approved the 2024 financial statements under IFRS and declared a dividend of $0.25 per common share, totaling approximately $312 million [2] - The dividend will be distributed on May 30, 2025, to shareholders of record on May 21, 2025, with payments in Euro for shares deposited in Monte Titoli [3] - Concurrently, CNH published its 2024 Sustainability Report outlining sustainability priorities, strategic targets, and achievements for the year [4] 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 others, providing a comprehensive range of agricultural and construction products [5] - With over 35,000 employees, CNH emphasizes a diverse and inclusive workplace aimed at empowering customers and driving efficiency [6]

Core Insights - CNH presented its Strategic Business Plan (SBP) at the Investor Day 2025, outlining a clear path for growth and cost efficiency [2][3] - The company aims to consolidate its position as a leading player in agriculture and construction markets while targeting significant margin improvements [4][12] Group 1: Strategic Goals - CNH aims to be the 1 or 2 player in all major markets during the plan period [4][12] - The company targets a 16-17% mid-cycle adjusted EBIT margin in Agriculture by 2030 [10][12] - For the Construction segment, CNH is targeting a 7-8% mid-cycle adjusted EBIT margin by 2030 [14] Group 2: Product Development and Technology - CNH will enhance product leadership through new launches and updates across its agricultural equipment lineup, including a full refresh of tractors and advanced combine harvesters [5][6] - The integration of Precision Tech, including AI capabilities and agronomic sensors, will be a key focus, with expectations that Precision Tech sales will nearly double as a percentage of total Agriculture Net Sales by 2030 [7][12] Group 3: Market Strategy - A new go-to-market strategy will focus on an integrated dealer network and brand strategy to improve customer engagement and service [8][9] - The company plans to invest approximately 100 basis points of annual margin over the next five years in growth-oriented dealers [9] Group 4: Operational Efficiency - CNH is committed to delivering over $550 million in operational and quality cost improvements by 2030 to support margin expansion [13][12] - The company will focus on operational efficiencies through strategic sourcing, plant efficiencies, and enhanced product reliability [13] Group 5: Shareholder Returns - CNH plans to increase through-cycle Industrial cash generation by 25% and return substantially all Industrial Free Cash Flow to shareholders through dividends and share buybacks [18][17]

Summary of CNH Industrial 2025 Capital Markets Day Company Overview - **Company**: CNH Industrial (CNH) - **Industry**: Agricultural and Construction Equipment - **History**: Over 180 years of innovation and engineering excellence, with a significant presence in North America, generating 40% of agricultural net sales [1][2][8] Key Financials - **Annual Revenues**: Ranged between $15 billion and $25 billion over the past five years [2] - **Employee Count**: Over 36,000 employees globally [2] - **Cost Savings**: Achieved run rate savings of more than $550 million from cost of goods sold by the end of 2024 [12] Strategic Focus and Innovations - **Technological Enhancements**: Acquisition of Raven in 2021 enhanced technological capabilities and innovation efforts [6] - **Product Portfolio**: Comprehensive agricultural machinery distribution network, offering a full line of products from tractors to crop protection equipment [21][25] - **Precision Technology**: Doubling precision tech contribution to agricultural net sales to 10% by 2030, with significant advancements in AI and automation [27][90] Strategic Pillars 1. **Product Leadership**: Commitment to expanding product offerings and integrating precision technology [23] 2. **Margin Improvement**: Targeting a mid-cycle adjusted EBIT margin of 16% to 17% in agriculture by 2030 [39][43] 3. **Shareholder Value**: Focused on returning substantial industrial free cash flow to shareholders while exploring M&A opportunities [24] Market Dynamics - **Cyclical Nature**: The agriculture market is influenced by commodity prices, weather patterns, and government policies, with expectations of a market bottoming at 85% to 90% of the ten-year average [34][36] - **Historical Margin Performance**: Improved mid-cycle margins from 10% in 2021 to a target of 16% to 17% by 2030 [41] Operational Changes - **Organizational Restructuring**: Delayered organization to enhance responsiveness to market conditions and improve P&L ownership at the regional level [18] - **Quality Commitment**: A holistic approach to quality across product development, manufacturing, and supply chain, aiming to reduce costs of non-quality by 200 to 250 basis points by 2030 [32] Product Innovations - **New Product Launches**: Plans for over 15 new tractor launches, 10 combine launches, and 19 crop production launches by 2027 [63] - **Smart Technology**: Introduction of smart spraying solutions that can reduce herbicide use by up to 80% [90] Dealer Network Strategy - **Strengthening Partnerships**: Investing in dealer capabilities and enhancing service offerings to ensure customer satisfaction and loyalty [98][100] - **Regional Tailoring**: Adapting the dealer network strategy to meet unique market demands, balancing single and multi-brand models [104] Conclusion - **Future Outlook**: CNH Industrial is committed to innovation, operational excellence, and strategic growth, positioning itself as a leader in the agricultural and construction equipment industry [44][45]

Core Insights - CNH Industrial is hosting its Investor Day 2025 at the New York Stock Exchange, focusing on strategic direction, innovation, sustainability, and productivity [1][3][7] - The event features presentations from key executives covering various aspects of the company, including agriculture products, precision technology, and financial performance [1][7] Company Overview - CNH Industrial is a global leader in equipment, technology, and services, with a mission centered on innovation and sustainability [3][4] - The company operates under several brands, including Case IH, New Holland, CASE, and others, providing a comprehensive range of agricultural and construction products [3][4] Event Details - The Investor Day presentations will begin at 9:00 am ET, with a full agenda including opening remarks, product overviews, and a Q&A session [1][7] - A recording of the event will be available shortly after its conclusion [2]

Financial Performance - Total revenues for the three months ended March 31, 2025, were $3,828 million, a decrease of 20.5% compared to $4,818 million in the same period of 2024[12]. - Net income attributable to CNH Industrial N.V. for Q1 2025 was $131 million, down 64.4% from $368 million in Q1 2024[12]. - The company incurred a net loss of $132 million for Q1 2025, compared to a net income of $369 million in Q1 2024, representing a decline of 135.7%[12]. - Comprehensive income attributable to CNH Industrial N.V. was $188 million for Q1 2025, down 41.0% from $319 million in Q1 2024[15]. - The company reported a basic earnings per share of $0.10 for Q1 2025, down from $0.29 in Q1 2024, a decrease of 65.5%[12]. Cash Flow and Liquidity - Cash and cash equivalents decreased to $1,695 million as of March 31, 2025, from $3,191 million at December 31, 2024, representing a decline of 46.9%[10]. - The company reported a net cash used by operating activities of $162 million for Q1 2025, compared to a net cash used of $894 million in Q1 2024[18]. - 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 decrease of 3.2%[10]. Assets and Liabilities - Total assets decreased to $42,057 million as of March 31, 2025, from $42,933 million at December 31, 2024, a reduction of 2.0%[10]. - Total liabilities decreased to $34,098 million as of March 31, 2025, down from $35,165 million at December 31, 2024, a decrease of 3.0%[10]. - The company’s total equity increased to $7,902 million as of March 31, 2025, from $7,713 million at December 31, 2024, an increase of 2.5%[10]. Revenue Breakdown by Segment - Agriculture segment revenues decreased to $2,581 million in Q1 2025 from $3,373 million in Q1 2024, representing a decline of 23.5%[30]. - Construction segment revenues fell to $591 million in Q1 2025, down 22.0% from $758 million in Q1 2024[30]. - Financial Services revenues decreased to $651 million in Q1 2025 from $685 million in Q1 2024, a decline of 5.0%[30]. Research and Development - Research and development expenses for Q1 2025 were $184 million, a decrease of 19.3% compared to $228 million in Q1 2024[12]. - Research and development expenses for the Agriculture segment were $163 million in Q1 2025, while the Construction segment incurred $21 million[51]. Inventory and Receivables - Total inventory rose to $5,156 million as of March 31, 2025, up from $4,776 million at the end of 2024, suggesting increased stock levels[58]. - Financing receivables decreased from $10,831 million on December 31, 2024, to $10,207 million on March 31, 2025[35]. - The total past due receivables in North America for 2025 were $1,182 million, showing a significant decrease from $3,815 million in 2024[70]. Tax and Regulatory Impact - The effective tax rate increased from 19.2% in Q1 2024 to 29.0% in Q1 2025, attributed to the company's income mix and reduced rate relief from Argentina's economy[39]. - The company does not expect the OECD's proposed global minimum tax of 15% to have a material impact on its financial results during 2025[40]. Derivatives and Financial Instruments - The total notional amount of CNH's foreign exchange derivatives was $4.7 billion as of March 31, 2025, compared to $4.2 billion at December 31, 2024[113]. - CNH's interest rate derivatives totaled approximately $9.0 billion as of March 31, 2025, down from $9.1 billion at December 31, 2024[117]. - The fair value of CNH's derivative assets was $124 million on March 31, 2025, compared to $147 million on December 31, 2024[120]. Related Party Transactions - Net revenues from transactions with Iveco Group for Q1 2025 were $27 million, down from $38 million in Q1 2024[136]. - Purchases from Iveco Group in Q1 2025 totaled $147 million, compared to $211 million in Q1 2024[136]. - Related party net sales for Q1 2025 were $76 million, a decrease from $158 million in Q1 2024[138].

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]

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]