CNH Industrial N.V.(US:CNH)2025-11-07 17:32Financial Performance - Total revenues for Q3 2025 were $4,399 million, a decrease of 5.5% compared to $4,654 million in Q3 2024[11] - Net sales for the nine months ended September 30, 2025, were $10,895 million, down 15.8% from $12,931 million in the same period of 2024[11] - Net income attributable to CNH Industrial N.V. for Q3 2025 was $80 million, a decline of 73.6% from $306 million in Q3 2024[11] - Net income for Q3 2025 was $67 million, a significant decrease from $310 million in Q3 2024[55][56] - Net income for the nine months ended September 30, 2025, was $416 million, compared to $1,083 million for the same period in 2024, representing a decrease of approximately 61.6%[17] Cash and Liquidity - Cash and cash equivalents at the end of Q3 2025 were $2,303 million, down from $3,191 million at the end of 2024[9] - The total cash, cash equivalents, and restricted cash at the end of the period was $2,956 million in 2025, compared to $2,450 million in 2024, an increase of 20.7%[17] - The company reported a net cash provided by operating activities of $1,593 million for the nine months ended September 30, 2025, compared to $276 million in the same period of 2024[17] - The company reported a net cash used in investing activities of $1,088 million in 2025, a decrease from $1,777 million in 2024, showing improved capital management[17] Assets and Liabilities - Total assets increased to $43,258 million as of September 30, 2025, compared to $42,933 million at the end of 2024[9] - Total liabilities rose to $35,421 million as of September 30, 2025, compared to $35,165 million at the end of 2024[9] - The carrying amount of financing receivables was $23,001 million as of September 30, 2025, slightly up from $22,976 million as of December 31, 2024, reflecting a marginal increase of 0.1%[135] Equity and Dividends - The company’s total equity as of September 30, 2025, was $7,777 million, slightly down from $7,713 million at the end of 2024[9] - Cash dividends declared per common share for the nine months ended September 30, 2025, were $0.250, down from $0.470 in the same period of 2024[11] - Dividends paid decreased to $322 million in 2025 from $600 million in 2024, reflecting a 46.3% reduction in shareholder returns[17] Segment Performance - Agriculture segment net sales for Q3 2025 were $2,963 million, a decrease of 10.5% compared to $3,310 million in Q3 2024[55][56] - Construction segment net sales for Q3 2025 were $739 million, a decrease of 7% compared to $687 million in Q3 2024[55][56] - Total revenues for the Agriculture and Construction segments combined were $3,702 million in Q3 2025, down from $3,997 million in Q3 2024, reflecting a decline of 7.4%[55][56] Research and Development - Research and development expenses for Q3 2025 were $281 million, an increase of 27.2% from $221 million in Q3 2024[11] - Research and development expenses for the Agriculture segment in Q3 2025 were $205 million, compared to $199 million in Q3 2024[55][56] Tax and Compliance - The effective tax rate for the three months ended September 30, 2025, was 2.0%, a significant decrease from 20.8% in 2024[43] - The company is evaluating the impact of new accounting standards on its consolidated financial statements, including ASU 2025-06 and ASU 2025-05[28][29] - The company anticipates adopting new income tax disclosure requirements effective for fiscal years beginning after December 15, 2024[32] Inventory and Receivables - Total inventory as of September 30, 2025, was $5,353 million, an increase from $4,776 million as of December 31, 2024[63] - Trade and financing receivables related to sales, net, rose to $948 million in 2025, up from $482 million in 2024, reflecting a growth of 96.7%[17] Derivatives and Financial Instruments - The total notional amount of CNH's foreign exchange derivatives was $4.3 billion as of September 30, 2025, compared to $4.2 billion at December 31, 2024[122] - The fair value of CNH's derivative assets was $134 million as of September 30, 2025, down from $147 million at December 31, 2024[132] Legal and Regulatory Matters - The company concluded its cooperation with the SEC's inquiry regarding revenue recognition and sales practices, with no enforcement action recommended[111] - The Italian criminal investigation related to FPT Industrial was dismissed in 2023, and all German investigations were concluded in December 2023[110]