CNH Industrial(CNHI) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter consolidated revenues decreased by 28% to $4.88 billion, and full year consolidated revenues declined by 20% to $19.84 billion[1][3][16] - Fourth quarter net income was $176 million, a 70% decrease from $583 million in Q4 2023; full year net income was $1,259 million, down 45% from $2,287 million in 2023[1][3][16] - Full year diluted EPS was $0.99, compared to $1.69 in 2023; adjusted diluted EPS was $1.05, down from $1.63 in the previous year[1][3][16] - Net income attributable to CNH Industrial N.V. for Q4 2024 was $173 million, a significant decrease from $582 million in Q4 2023, representing a decline of 70.3%[33] - Net income for the year ended December 31, 2024, was $1,259 million, a decrease of 44.8% compared to $2,287 million in 2023[42] - Total revenues for the year ended December 31, 2024, were $19,836 million, down 19.5% from $24,687 million in 2023[42] - Adjusted net income for the year ended December 31, 2024, was $1,339 million, compared to $2,217 million in 2023, reflecting a decline of approximately 39.5%[55] Segment Performance - Agriculture segment net sales fell by 31% to $3.41 billion in Q4 2024, with adjusted EBIT decreasing to $244 million from $635 million in Q4 2023[6][7][16] - Construction segment net sales decreased by 33% to $718 million in Q4 2024, with adjusted EBIT down to $18 million from $62 million in Q4 2023[8][9][16] - The Agriculture segment generated an adjusted EBIT of $1,470 million in 2024, down from $2,636 million in 2023, reflecting a decline of 44.0%[50] - The Construction segment's adjusted EBIT for 2024 was $169 million, a decrease of 29.0% from $238 million in 2023[50] Cash Flow and Liquidity - Cash and cash equivalents decreased to $3,191 million as of December 31, 2024, compared to $4,322 million at the end of 2023, a decline of 26.1%[35] - Cash flows from operating activities increased to $1,968 million in 2024, compared to $907 million in 2023, reflecting a significant improvement[37] - Free cash flow of Industrial Activities for the year ended December 31, 2024, was $1,216 million, a decrease from $1,630 million in 2023[53] - The company reported a net cash used in investing activities of $2,772 million in 2024, an improvement from $3,699 million in 2023[37] Assets and Liabilities - Total assets decreased to $42,933 million in 2024 from $46,267 million in 2023, reflecting a reduction of 7.9%[35] - Total liabilities also decreased to $35,165 million in 2024 from $38,117 million in 2023, a decline of 7.7%[35] - The company’s debt as of December 31, 2024, was $26,882 million, slightly down from $27,326 million in 2023[45] Restructuring and Expenses - The company incurred restructuring expenses of $24 million in Q4 2024, compared to $59 million in Q4 2023[33] - The company reported restructuring expenses of $118 million for the year ended December 31, 2024[55] - Research and development expenses for the year ended December 31, 2024, were $924 million, a decrease of 11.3% compared to $1,041 million in 2023[42] Future Outlook - The company forecasts a decline in global industry retail sales for both agriculture and construction equipment markets in 2025, with net sales expected to be lower than in 2024[17][18] - Agriculture segment net sales are projected to decrease between 13% and 18% year-over-year in 2025, while construction segment net sales are expected to decline between 5% and 10%[19] - Free Cash Flow of Industrial Activities is anticipated to be between $200 million and $500 million in 2025, with adjusted diluted EPS projected between $0.65 and $0.75[19] Revision and Adjustments - The company revised prior period results, resulting in a $96 million overstatement of equity in income of unconsolidated subsidiaries for 2023[56] - Net income attributable to CNH Industrial N.V. for the three months ended December 31, 2023, was revised to $582 million from $616 million, a decrease of $34 million[58] - Total assets as of December 31, 2023, were revised to $46,267 million, down from $46,351 million, reflecting a reduction of $84 million[58] - The company experienced a revision impact on net income totaling $96 million for FY 2023[61]