CNH Industrial N.V.(CNH) - 2025 Q1 - Quarterly Report

Financial Performance - Total revenues for the three months ended March 31, 2025, were $3,828 million, a decrease of 20.5$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$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$319 million in Q1 2024[15] - Basic earnings per share (EPS) attributable to common shareholders decreased from $0.29 in Q1 2024 to$0.10 in Q1 2025, with net income attributable to CNH Industrial N.V. dropping from $368 million to$131 million[37] 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] - Cash flows from operating activities improved to $162 million in Q1 2025, compared to a cash outflow of$894 million in Q1 2024[18] 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, from$35,165 million at December 31, 2024, a decline of 3.0%[10] - The company’s total liabilities for consolidated VIEs decreased from $10,577 million on December 31, 2024, to$9,967 million on March 31, 2025[35] 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$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, down 19.3$228 million in Q1 2024[12] - Research and development expenses for the Agriculture segment were $163 million in Q1 2025[51] Inventory and Receivables - Total inventory increased from$4,776 million as of December 31, 2024, to $5,156 million as of March 31, 2025, indicating growth in stock levels[58] - Financing receivables decreased from$10,831 million on December 31, 2024, to $10,207 million on March 31, 2025[35] - Total past due receivables in North America for 2025 were$1,182 million, with no charge-offs reported[70] Tax and Accounting - 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 is evaluating the impact of new accounting standards on its financial disclosures, with changes expected to be adopted in future reporting periods[27][28][29] Derivatives and Other Comprehensive Income - 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] - The company's other comprehensive income for the three months ended March 31, 2025, was $60 million, compared to a loss of$49 million for the same period in 2024, reflecting a significant improvement[126] Related Party Transactions - Net revenues from transactions with Iveco Group for Q1 2025 were $27 million, down from$38 million in Q1 2024, indicating a decline in sales[136] - Related party transactions showed net sales of $76 million in Q1 2025, a decrease from$158 million in Q1 2024, highlighting a significant drop in sales to related parties[138]