CNH Industrial Q2 2025 – Revenues Down 14%

By Tamara Parker • Friday, August 01 10:31 • Permanent Link

CNH Industrial N.V. has reported its second-quarter 2025 results, revealing a decline in consolidated revenues to $4.7 billion, down 14% from the same period in 2024. The net income for the quarter was $217 million, a significant drop compared to $404 million in the second quarter of 2024, while diluted earnings per share fell to $0.17 from $0.32 in the same period.

The company's cash flow provided by operating activities saw a substantial increase, reaching $772 million in the second quarter of 2025 compared to $379 million in the second quarter of 2024. Additionally, the industrial free cash flow amounted to $451 million, marking an improvement of $311 million year-over-year.

In terms of segment performance, the agriculture net sales decreased by 17% to $3.25 billion in the second quarter of 2025, primarily due to lower shipment volumes resulting from decreased industry demand and dealer destocking. The adjusted EBIT for agriculture decreased to $263 million from $502 million in the second quarter of 2024, driven by lower shipment volumes, partially offset by favorable net price realization and lower production, warranty, and SG&A expenses.

Similarly, the construction segment experienced a 13% decline in net sales to $773 million in the second quarter of 2025, attributed to lower shipment volumes driven by the market decline in North America. The adjusted EBIT for construction decreased to $35 million from $60 million in the second quarter of 2024 due to lower shipment volumes, partially offset by favorable net price realization.

Furthermore, the financial services segment reported a 0.3% decrease in revenues, primarily impacted by currency translation and lower yields, resulting in a net income of $87 million, down $4 million compared to the second quarter of 2024.

Looking ahead, CNH reaffirmed its full-year 2025 guidance, projecting lower global industry retail sales in both the agriculture and construction equipment markets compared to 2024. The company remains focused on reducing excess channel inventory and managing operating costs to partially mitigate the margin erosion.

The market has reacted to these announcements by moving the company's shares 2.61% to a price of $12.96. For more information, read the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.