Globenewswireยท2025-08-01 10:30Core Insights - CNH Industrial reported second quarter consolidated revenues of $4.71 billion, a decrease of 14% compared to Q2 2024, primarily due to lower industry demand and dealer destocking [1][5][10] - Net income for the quarter was $217 million, down 46% from $404 million in the same period last year, with diluted earnings per share (EPS) at $0.17, down from $0.32 [1][5][6] - The company reaffirmed its full-year guidance, expecting continued challenges in the agriculture and construction equipment markets [1][16][18] Financial Performance - Consolidated revenues decreased to $4,711 million from $5,488 million in Q2 2024, with net sales of Industrial Activities at $4,021 million, down 16% [5][21] - Adjusted EBIT for Industrial Activities fell to $224 million, a 55% decline from $502 million in Q2 2024, with an adjusted EBIT margin of 5.6% compared to 10.5% [5][10][21] - Free cash flow for Industrial Activities improved to $451 million, up $311 million year-over-year, attributed to lower net change in working capital [7][21] Segment Performance - Agriculture segment net sales decreased by 17% to $3.25 billion, with an adjusted EBIT of $263 million, down 48% from $502 million in Q2 2024 [8][10] - Construction segment net sales fell by 13% to $773 million, with adjusted EBIT decreasing to $35 million from $60 million in the previous year [11][12] - Financial Services revenues were relatively stable at $685 million, with net income of $87 million, a slight decrease from $91 million in Q2 2024 [13][14] Market Conditions - The company faced challenging market conditions, with North America experiencing a 7% decline in industry volume for tractors under 140 HP and a 37% decline for tractors over 140 HP [9][10] - In Europe, Middle East, and Africa (EMEA), tractor demand was down 7%, while combine demand increased by 8% [9] - The company is navigating a changing global trade environment, which may impact its forecasts for the year [16][18] Outlook - CNH Industrial expects global industry retail sales to decline in both agriculture and construction equipment markets compared to 2024, with agriculture segment net sales projected to decrease between 12% and 20% year-over-year [16][18] - The company aims to reduce excess channel inventory by producing fewer units than retail demand, which will result in lower net sales for 2025 [16][18] - Adjusted EBIT margin for the agriculture segment is expected to be between 7% and 9%, while for the construction segment, it is projected to be between 2% and 4% [18]