CNH Industrial(CNHI) - 2025 Q2 - Quarterly Report

Financial Performance - Total revenues for Q2 2025 were $4,711 million, a decrease of 14.1% compared to $5,488 million in Q2 2024[12] - Net income for Q2 2025 was $217 million, down 46.3% from $404 million in Q2 2024[12] - Earnings per share for Q2 2025 were $0.17, down from $0.32 in Q2 2024[12] - Comprehensive income attributable to CNH Industrial N.V. for Q2 2025 was $181 million, compared to $258 million in Q2 2024[15] - The company reported a total comprehensive income of $189 million for Q2 2025, down from $263 million in Q2 2024[15] - Net income for the six months ended June 30, 2025, was $349 million, down from $773 million in the same period of 2024, representing a decline of 55%[15] - The company reported total revenues of $8,676 million for the first half of 2025, compared to $10,306 million for the same period in 2024, a decrease of 16%[61] Cash and Cash Equivalents - Cash and cash equivalents decreased to $2,512 million as of June 30, 2025, from $3,191 million at the end of 2024[10] - The company’s total cash, cash equivalents, and restricted cash at the end of Q2 2025 was $3,147 million, compared to $2,647 million at the end of Q2 2024[18] Assets and Liabilities - Total assets increased to $43,687 million as of June 30, 2025, compared to $42,933 million at the end of 2024[10] - Total liabilities rose to $35,853 million as of June 30, 2025, compared to $35.165 billion as of December 31, 2024[10] - The carrying amount of financing receivables was $23,387 million as of June 30, 2025, slightly up from $23,264 million as of December 31, 2024[134] Segment Performance - Agriculture segment net sales for Q2 2025 were $3,248 million, a decrease of 17% from $3,913 million in Q2 2024[59] - Construction segment net sales for Q2 2025 were $773 million, down 13% from $890 million in Q2 2024[59] - Financial Services reported income before income taxes of $112 million in Q2 2025, consistent with $114 million in Q2 2024[59] Research and Development - Research and development expenses for Q2 2025 were $218 million, a decrease of 8.0% from $237 million in Q2 2024[12] - Research and development expenses for Agriculture in Q2 2025 were $194 million, compared to $214 million in Q2 2024, a decrease of 9.3%[59] Dividends and Shareholder Returns - The company declared cash dividends of $0.250 per common share for Q2 2025, unchanged from Q2 2024[12] - The company paid dividends totaling $591 million during the second quarter of 2024, compared to $1 million in the previous quarter[25] Debt and Financing - Debt rose to $27,408 million as of June 30, 2025, up from $26,882 million at the end of 2024[10] - The allowance for credit losses at the end of Q2 2025 was $540 million, up from $424 million at the end of 2024, indicating a 27.4% increase[68] Operational Efficiency - The company incurred restructuring expenses of $5 million in Q2 2025, compared to $51 million in Q2 2024[59] - Total expenditures for long-lived assets decreased to $90 million in Q2 2025 from $110 million in Q2 2024, a decline of 18.2%[65] Taxation - The effective tax rate for the three months ended June 30, 2025, was 27.6%, an increase from 20.9% in 2024[45] - The company does not expect the global minimum tax of 15% proposed by the OECD to have a material impact on its financial results during 2025[47] Other Comprehensive Income - For the six months ended June 30, 2025, the total other comprehensive income (loss) was $(28) million, compared to $(141) million for the same period in 2024[138] Regulatory and Compliance - CNH has been cooperating with the SEC's inquiry and was notified that the SEC concluded its inquiry without recommending enforcement action[111] - The company is evaluating the financial implications of the One Big Beautiful Bill Act signed into law on July 4, 2025, which includes significant tax provisions[48]