CNH Industrial N.V. has reported its fourth-quarter and full-year 2024 results, revealing a decline in consolidated revenues of 28% and 20% respectively. The net income for the fourth quarter was $176 million, significantly lower than the $583 million in the same period in 2023. Full-year net income also suffered a decline, dropping to $1,259 million from $2,287 million in 2023. Adjusted diluted earnings per share (EPS) for the full year were reported at $1.05, a decrease from $1.63 in 2023.
The company's net sales of industrial activities for the fourth quarter were $4.13 billion, down 31% from the same period in 2023. Additionally, the adjusted net income for the same period was $196 million, a notable decrease from $523 million in 2023. The gross profit margin of industrial activities also experienced a decline of 230 basis points, falling to 19.5% from 21.8% in the fourth quarter of 2023.
In the agriculture segment, net sales decreased by 31% to $3.4 billion in the fourth quarter, mainly due to lower shipment volumes and decreased industry demand across all regions. The adjusted earnings before interest and taxes (EBIT) for the agriculture segment dropped to $244 million, down from $635 million in the same period in 2023. The construction segment also faced a similar fate, with net sales declining by 33% to $718 million and adjusted EBIT decreasing to $18 million from $62 million in the fourth quarter of 2023.
The financial services division reported a decrease in revenues by 3%, primarily due to lower equipment sales related to decreased operating lease maturities. The net income for the division in the fourth quarter of 2024 was $92 million, a decrease of $21 million compared to the same period in 2023.
For the full year 2024, CNH Industrial N.V. experienced a 20% decrease in consolidated revenues and a 23% decrease in net sales of industrial activities. The company's adjusted net income for the full year was $1,339 million, down from $2,217 million in 2023. The agriculture segment reported a 23% decrease in net sales to $14.007 billion and a gross profit margin decline of 260 basis points. The construction segment also faced a 22% decrease in net sales to $3.053 billion, with a gross profit margin increase of 70 basis points.
Looking ahead, CNH expects 2025 global industry retail sales to be lower in both the agriculture and construction equipment markets compared to 2024. The company anticipates a reduction in segment net sales and adjusted EBIT margins for the agriculture and construction segments in 2025. Additionally, CNH is projecting a free cash flow of industrial activities between $200 million and $500 million and an adjusted diluted EPS between $0.65 and $0.75. The market has reacted to these announcements by moving the company's shares 2.0% to a price of $12.81. Check out the company's full 8-K submission here.
