Q4 2025 FINANCIAL RESULTS February 17, 2026 SAFE HARBOR STATEMENT AND DISCLOSURES All statements other than statements of historical fact contained in this presentation including competitive strengths; business strategy; future financial position or operating results; budgets; projections with respect to revenue, income, earnings (or loss) per share, capital expenditures, dividends, liquidity, capital structure or other financial items; costs; and plans and objectives of management regarding operations and ...

分组1 - CNH Industrial reported quarterly earnings of $0.19 per share, exceeding the Zacks Consensus Estimate of $0.11 per share, and showing an increase from $0.15 per share a year ago, resulting in an earnings surprise of +74.47% [1] - The company achieved revenues of $5.16 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.74%, and up from $4.88 billion year-over-year [2] - CNH has outperformed the S&P 500, with shares increasing by approximately 38.3% since the beginning of the year, while the S&P 500 has declined by 0.1% [3] 分组2 - The earnings outlook for CNH is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The trend of estimate revisions for CNH was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] - The current consensus EPS estimate for the upcoming quarter is $0.06 on revenues of $3.86 billion, and for the current fiscal year, it is $0.48 on revenues of $18.02 billion [7] 分组3 - The Manufacturing - Farm Equipment industry, to which CNH belongs, is currently ranked in the bottom 36% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Alamo Group, another company in the same industry, is expected to report quarterly earnings of $2.06 per share, reflecting a year-over-year decline of -13.8%, with revenues projected at $399.6 million, up 3.7% from the previous year [9]

Core Insights - The company reported a 6% increase in consolidated revenues for Q4 2025, but a 9% decline in full-year revenues due to lower demand in the agricultural equipment sector [1][2] - Net income for Q4 2025 was $89 million, down from $176 million in Q4 2024, with full-year net income at $505 million compared to $1,259 million in 2024 [1][2] - The company anticipates lower demand levels in 2026, with a projected recovery in 2027 for the agricultural equipment market [1][23] Financial Performance - Q4 2025 consolidated revenues were $5.16 billion, up from $4.88 billion in Q4 2024, while net sales of Industrial Activities increased to $4.45 billion, an 8% rise [1][4] - Full-year 2025 consolidated revenues totaled $18.10 billion, a 9% decrease from $19.84 billion in 2024, with net sales of Industrial Activities at $15.35 billion, down 10% [2][18] - Full-year diluted EPS was $0.41, down from $0.99 in 2024, while adjusted diluted EPS was $0.55 compared to $1.05 in 2024 [2][19] Segment Performance - The Agriculture segment saw Q4 2025 net sales increase by 5% to $3.6 billion, but adjusted EBIT decreased to $233 million from $244 million in Q4 2024 [10][20] - In the Construction segment, Q4 2025 net sales rose 19% to $853 million, driven by higher shipment volumes, although adjusted EBIT fell to $5 million from $18 million in Q4 2024 [11][13] - Financial Services revenues decreased by 6% in Q4 2025 due to lower yields and reduced average portfolio balances, while net income increased by 18% to $109 million [14][16] Market Outlook - The company expects a further 5% decline in global industry retail demand for agricultural equipment in 2026, maintaining low production levels and managing dealer inventories [23][24] - The construction equipment market is projected to remain flat in 2026, with varying demand across different construction sectors [24]

Core Insights - CNH Industrial (CNH) is expected to report quarterly earnings of $0.11 per share, reflecting a decline of 26.7% year-over-year, while revenues are forecasted to reach $5.02 billion, an increase of 2.9% compared to the previous year [1] Revenue Estimates - Analysts estimate 'Revenues- Net Sales' at $4.28 billion, indicating a year-over-year change of +3.8% [4] - 'Revenues- Total Industrial Activities- Agriculture' is projected to be $3.51 billion, reflecting a change of +2.8% from the year-ago quarter [4] - 'Revenues- Total Industrial Activities- Construction' is expected to reach $805.81 million, with a year-over-year change of +12.2% [5] - 'Revenues- Finance, interest and other income' is forecasted at $730.03 million, indicating a decline of -2.3% year-over-year [5] Agriculture Sales Projections - 'Agriculture Sales- North America' is estimated at $1.31 billion, showing a change of +4.4% from the prior-year quarter [6] - 'Agriculture Sales- Europe, Middle East and Africa' is projected to reach $1.19 billion, reflecting a year-over-year change of +13.1% [6] - 'Agriculture Sales- South America' is expected to be $603.70 million, indicating a decline of -8.1% year-over-year [6] Construction Sales Projections - 'Construction Sales- Asia Pacific' is estimated at $60.39 million, reflecting a change of +4.1% from the prior-year quarter [7] - 'Construction Sales- North America' is projected to be $405.02 million, indicating a year-over-year change of +21.6% [7] - 'Construction Sales- Europe, Middle East and Africa' is expected to reach $195.24 million, reflecting a change of +7.9% year-over-year [7] - 'Construction Sales- South America' is forecasted at $134.15 million, indicating a decline of -8.1% year-over-year [8] Market Performance - CNH shares have increased by +18.6% over the past month, contrasting with the Zacks S&P 500 composite's decline of -0.3% [8] - CNH holds a Zacks Rank 4 (Sell), suggesting it is expected to underperform the overall market in the near term [8]

Company Closures and Layoffs - CNH Industrial America is closing its Burlington, Iowa plant, resulting in 209 layoffs by May 2026 due to lower backhoe demand [1] - Continental Tire of America will close its Barnesville, Georgia manufacturing plant, laying off 235 employees by the end of 2026, citing long-standing cost-competitiveness issues [2] - Alton Steel Inc. will cease operations in Alton, Illinois, impacting approximately 253 employees, due to structural challenges in the domestic steel industry [3] - Macy's Inc. will close its Owasso, Oklahoma fulfillment center by the end of March, resulting in 993 layoffs as part of a supply chain modernization effort [4] - King Delivery LLC is closing operations in Brooklyn, New York, leading to 153 layoffs [6] - Fresenius USA Manufacturing will lay off 165 employees across three distribution centers due to the divestiture of parts of its logistics operation [7][8] - Kuehne+Nagel Inc. plans to close its Locust Grove, Georgia logistics operation, resulting in 153 layoffs [9] - Legacy Supply Chain is laying off 129 employees across five California locations [10] - American Eagle Outfitters is shutting down its La Palma fulfillment center, eliminating 108 jobs [11][12] - FTI Buyer LLC will close its Cincinnati facility, laying off 104 employees [13] - First Brands Group is closing its Arlington facility, affecting 88 employees [14] - Goodyear Tire & Rubber Co. plans to close its Tall Timbers Mold facility in Findlay, Ohio, resulting in 85 layoffs [15] - Lighteum Medical is laying off 83 employees at its San Diego facility [16] - Plug Power Inc. filed a WARN notice for a mass layoff at its Houston facility, affecting 74 employees [17] - Great Lakes Coca-Cola Distribution will lay off 62 employees in Lansing, Michigan [18] - Waddington North America is closing a facility in Bremen, Georgia, eliminating 49 jobs [19] - Turf Care Supply Corp. will close its blending department, eliminating 46 jobs [20] - Automated Harvesting LLC is closing its Yuma operations, laying off 46 workers [21] - H4 Logistics LLC is closing its Kenosha facility, resulting in 41 layoffs [22] - Tekni-Plex plans to close its Milwaukee facility, impacting 39 employees [23] - GXO Logistics will close its Romeoville facility, laying off 32 workers [25] Industry Trends - Weak consumer demand, excess capacity, contract losses, and network consolidation are leading shippers and logistics providers to shrink operations [5] - Manufacturers tied to industrial freight are cutting output amid slower order volumes and tighter capital conditions, reflecting a freight market struggling to regain momentum [5]

Core Insights - CASE Construction Equipment is showcasing over 40 innovative machines and technologies at CONEXPO-CON/AGG 2026, emphasizing efficiency and safety for various jobsite challenges [1][23] - The company is committed to practical innovations that enhance operator experience and productivity, integrating advanced technologies into their equipment lineup [2][6] Equipment Highlights - The lineup includes new D Series 3-ton mini excavators, a new midi excavator, and upgraded models in the E Series full-sized excavator lineup, featuring advanced controls and connectivity [2][11] - The all-new TL100EV electric mini track loader will be introduced, designed for low-noise and zero-emission operations, compatible with over 40 attachments [12] - New G Series compact wheel loaders will be presented, featuring operator-friendly cab improvements and enhanced performance capabilities [3][14] - The upcoming N Series dozers will be previewed, showcasing significant upgrades in performance management and operator experience [3][13] Technology and Support - CASE is introducing a cohesive technology stack, including the myCASEConstruction app for real-time fleet data and new machine control solutions to enhance operational efficiency [8][6] - The company emphasizes a partnership-focused approach, providing industry-leading support and digital solutions to optimize total cost of ownership [5][6] Attachments and Versatility - A comprehensive lineup of attachments will be showcased, enhancing jobsite flexibility and operational capabilities across various machines [19] - The new attachment offerings include heavy-duty buckets, specialized tools, and advanced equipment designed to meet diverse job requirements [19]

Investment Rating - The report gives a premium rating for high-quality stocks expected in 2026, particularly those that faced profit margin pressure due to tariff pass-through effects in 2025, with anticipated growth of 9.5%, significantly above the industry average [7][8]. Core Insights - Approximately 65% of indicators at the company level in the European capital goods sector show a quarter-on-quarter acceleration trend, primarily driven by the electrical equipment and related markets, as well as certain commodity-related sectors [1][2]. - The capital expenditure tracker indicates a strong outlook for the next three years (2025-2028), with a Kiger tracking data of about 7.8, approaching levels seen during expansion peaks in 2011 and 2004-2007, driven mainly by large-scale enterprises [1][4]. - There is increasing investor concern regarding the concentration of business in the electrical equipment sector, with current sector P/E ratios at a nearly 50% premium to the Stoxx 600 index, far exceeding long-term averages [1][5]. - Key focus is on high-quality stocks with expected earnings guidance for 2026, such as cable manufacturers involved in the grid transmission and distribution sector, which have backlogs extending to the end of this year and are expected to achieve double-digit growth [1][6]. Summary by Sections Capital Expenditure Outlook - The capital expenditure tracker shows a robust outlook for both short-term and medium-term, with demand growth primarily driven by large-scale enterprises, which now account for one-third of the tracking data [4]. - The overall Kiger data has increased by approximately 1.7 percentage points globally, indicating a strong demand environment [4]. Industry Performance and Key Companies - Companies like Prisma, Rexel, Vol, Vopak, and Brabant Zeven are highlighted as examples of strong performance in the electrical equipment and maritime sectors [2]. - The report emphasizes the importance of proving the sustainability of profit growth and the potential for upward revisions in earnings expectations for the electrical equipment sector [5]. Specific Company Insights - Hewlett Packard Enterprise (HPE) is viewed positively, with 15% of its revenue coming from the data center vertical, and an expected organic growth rate of 17% CAGR for its photonics business by 2030 [3][10]. - Trellisburg, valued at approximately €7 billion, focuses on engineering rubber products and is expected to benefit from cyclical recovery in key end markets such as automotive and construction [12]. - Rational Group, the largest commercial kitchen oven manufacturer, is expected to return to high single-digit or at least double-digit growth by the end of this decade, driven by market expansion in China and new product lines in the U.S. [13].

Core Insights - The U.S. farm economy is under significant financial pressure, with farmers facing low prices and high production costs, leading to calls for clearer long-term biofuel policies and trade strategies to enhance exports [1][4][7] Group 1: Financial Strain on Farmers - U.S. farmers are experiencing a prolonged period of low crop prices and high production costs, with crop prices for corn and soybeans estimated at $4.10 and $10.20 per bushel respectively, both down from 2023 levels [9] - The USDA forecasts a 3% increase in total production costs for corn and a 3.1% increase for soybeans in 2026, indicating ongoing financial challenges for farmers [8] - Bankruptcy filings under Chapter 12 have surged, with 293 farmers filing in the first nine months of 2025, a 36% increase compared to the total for 2024, highlighting the financial distress in the sector [12][13] Group 2: Impact on Agricultural Equipment Industry - Sales of agricultural equipment have declined significantly, with tractor sales down nearly 10% and combine sales plunging over 35% from the previous year, reflecting reduced investment by farmers [14] - Major equipment manufacturers like Deere & Co. have laid off over 2,000 employees since 2023, and other companies like AGCO and CNH Industrial have also reduced their workforce due to weak demand and high material costs [15][16] Group 3: Broader Economic Implications - The financial strain on farmers is expected to have ripple effects on rural economies, potentially leading to job losses in local schools, hospitals, and government agencies that support rural families [17] - The tightening of credit access is making it increasingly difficult for farmers to secure necessary short-term loans, compounding the financial challenges they face [8][11]

Core Insights - The American Society of Agricultural and Biological Engineers (ASABE) has awarded three Ag Tech innovations from CNH for its annual AE50 Awards, recognizing the most innovative products and systems in the agricultural sector for the year [2][10] - CNH's CEO, Gerrit Marx, emphasized the company's commitment to supporting farmers through advanced technologies that enhance efficiency and resource optimization [3] Group 1: Awarded Technologies - The three winning technologies from CNH are integrated into the Case IH brand portfolio and the Case IH FieldOps Digital Farm Management Platform, which offers real-time data and fleet management [4][10] - Seedbed Sense Speed Control is a new feature for the Case IH Tiger-Mate™ 255 field cultivator that monitors seedbed conditions and adjusts tractor speed for consistent planting, improving crop yield [5] - The Draft Tube Free Toolbar System is a lightweight, front-fold planter that enhances planting efficiency and reduces soil compaction, allowing for high-speed planting at 10 miles-per-hour [6] - Case IH SenseApply™ technology is an automated crop-sensing system that uses AI for precise spot spraying, optimizing input use and improving operational efficiency at speeds of up to 25 miles-per-hour [7] Group 2: Company Overview - CNH Industrial is a global leader in equipment, technology, and services, focusing on innovation, sustainability, and productivity across its brands [9][12] - The company has a diverse portfolio that includes agricultural and construction equipment, with a commitment to advancing Ag Tech innovation and protecting soil health [8][11]

Group 1 - The global cotton industry is crucial for the economy and poverty alleviation, providing livelihoods for millions of cotton farmers, with major producers being China, India, the USA, Brazil, and Pakistan, while China, India, and Pakistan are the main consumers [2] - Cotton is primarily used in the textile industry and is an important export product for many countries, significantly impacting global fiber supply [2] - The cotton harvesting rate in developed countries, particularly China and the USA, is high and fully automated, while developing countries like India and Pakistan rely on manual harvesting due to smallholder economies [2] Group 2 - The core development needs of the international cotton market include promoting economic growth, ensuring supply chain security, and enhancing sustainability, with a focus on boosting consumer confidence and adapting to high-quality and diversified cotton product demands [5] - The cotton sector supports approximately 32 million farmers' livelihoods, benefiting over 100 million families across about 80 countries [5] Group 3 - The global cotton trade is expected to continue expanding over the next decade, driven by the implementation of World Trade Organization commitments, although growth will face challenges from various uncertainties [6] - Demand for cotton is derived from the global textile demand, with competition from synthetic fibers affecting industry performance [6][7] Group 4 - The future of the global cotton market is uncertain due to factors such as slowing economic growth, weak consumer demand, geopolitical conflicts, and changes in trade policies, which impact supply-demand dynamics and price trends [8] - The International Monetary Fund (IMF) predicts global economic growth rates of 3.0% and 3.1% for 2025 and 2026, respectively, with inflation rates expected to decline but remain above target levels in the USA [8] Group 5 - The market for cotton picker cleaning agents in China is projected to reach 51.82 million yuan in 2024, with an expected growth to 56.03 million yuan by 2031, reflecting a compound annual growth rate (CAGR) of 1.37% from 2025 to 2031 [12] - The demand for cotton picker cleaning agents is closely related to the number of cotton pickers and the level of agricultural mechanization, with most demand concentrated in Xinjiang [15] Group 6 - The cotton picker cleaning agent industry is transitioning from traditional chemical cleaning to green and intelligent cleaning solutions, with a shift towards water-based and environmentally friendly products to meet new standards [18] - The cotton industry is significant for basic livelihood security and modernization, impacting rural revitalization, farmer income, social stability, and national unity [18]