CNH Q3 Earnings Miss Expectations, Revenues Decline Y/Y

Core Insights - CNH Industrial reported third-quarter 2025 adjusted earnings per share (EPS) of 8 cents, down from 24 cents in the prior-year quarter, and missed the Zacks Consensus Estimate of 13 cents [1][9] - Consolidated revenues declined nearly 5% year over year to $4.4 billion but exceeded the Zacks Consensus Estimate of $4.3 billion [2][9] Segment Performance - Agriculture segment net sales fell 10% year over year to $2.96 billion, slightly beating the estimate of $2.93 billion, with adjusted EBIT down 59% to $137 million, missing the estimate of $195.2 million [3] - Construction segment sales rose 8% year over year to $739 million, surpassing the estimate of $653.2 million, but adjusted EBIT decreased 65% to $14 million, missing the estimate of $18.4 million [4] - Financial Services segment revenues increased 4% to $684 million, exceeding the estimate of $644.2 million, but net income fell from $78 million to $47 million [5] Financial Details - As of September 30, 2025, cash and cash equivalents were $2.3 billion, down from $3.19 billion at the end of 2024, while total debt increased to $27.13 billion from $26.88 billion [6] - Net cash provided by operating activities was $659 million, compared to $791 million in the prior year [6] - Free cash outflow from industrial activities was $188 million, slightly higher than the $180 million outflow in the third quarter of 2024 [7] Updated Guidance for 2025 - Agriculture sales are now expected to decrease 11-13% year over year, an improvement from the previous estimate of a decline of 12-20% [8] - Adjusted EBIT margin for the Agriculture segment is now expected to be between 5.7% and 6.2%, down from the previous estimate of 7-9% [8] - Construction segment sales are expected to decrease 3-5% year over year, better than the previous estimate of a decline of 4-15% [8] - Free cash flow from industrial activities is now expected to be between $200 million and $500 million, up from the previous estimate of $100 million to $500 million [10]