CNH Industrial Q4 Earnings Miss Expectations, Revenues Fall Y/Y

Core Insights - CNH Industrial reported a significant decline in fourth-quarter 2024 adjusted earnings per share (EPS) of 15 cents, down from 42 cents in the prior-year quarter, and missed the Zacks Consensus Estimate of 19 cents [1] - Consolidated revenues for the fourth quarter fell nearly 28% year over year to $4.88 billion, also missing the consensus mark of $4.89 billion [1] Segmental Performance - The Agriculture segment experienced a 31% year-over-year decline in net sales to $3.41 billion, missing the estimate of $3.43 billion, with adjusted EBIT down 62% to $244 million [3] - The Construction segment's sales dropped 33% year over year to $718 million, missing the estimate of $756 million, with adjusted EBIT down 71% to $18 million [4] - The Financial Services segment's revenues fell 3% to $743 million but surpassed the estimate of $648.8 million, with net income decreasing to $92 million from $113 million in the prior year [5] Financial Details - As of December 31, 2024, CNH Industrial had cash and cash equivalents of $3.19 billion, down from $4.32 billion a year earlier, while total debt decreased to $26.88 billion from $27.33 billion [6] - The company reported net cash provided by operating activities of $1.69 billion, an increase from $1.51 billion in the previous year [6] - Free cash flow from industrial activities was $848 million in the fourth quarter, down from $1.63 billion in the same quarter of 2023 [7] Guidance for 2025 - For 2025, Agriculture sales are expected to decrease by 13-18%, compared to a 23% decline in 2024, with adjusted EBIT margin projected between 8.5-9.5% [8] - Construction segment sales are anticipated to decline by 5-10% year over year, compared to a 22% decline in 2024 [8] - The company expects free cash flow from industrial activities to range between $200-$500 million, contrasting with a free cash outflow of $401 million in 2024, and adjusted EPS is projected between 65 cents and 75 cents, down from 99 cents in 2024 [9]