CNH Industrial (CNH) Q3 2025 earnings summary

Executive summary

• Q3 2025 consolidated revenues were $4.4 billion, down 5–5.5% year-over-year, driven by lower industry demand, channel destocking, and global trade shifts.

• Net income for Q3 2025 was $67 million, a 78% decline from Q3 2024, impacted by a $49 million impairment charge and higher SG&A expenses.

• Adjusted net income was $109 million, with adjusted diluted EPS of $0.08, both significantly lower year-over-year.

• Management emphasized cost discipline, operational excellence, and continued investment in technology and innovation, including progress on Iron + Tech and product launches.

• Inventory reduction efforts continued, with new ag dealer inventory down over $200 million sequentially and used inventory also declining.

Financial highlights

• Net sales of Industrial Activities fell 7% to $3.7 billion in Q3 2025, mainly due to lower ag shipment volumes and dealer destocking.

• Adjusted EBIT for Industrial Activities was $104 million (2.8% margin), down 69% year-over-year.

• Gross profit margin for Industrial Activities declined to 19.1–19.4% from 21.7% year-over-year.

• Free cash flow of Industrial Activities was negative $188 million, consistent with seasonal patterns.

• For the nine months ended September 30, 2025, consolidated revenue was $12.9 billion, down 13.5–14% year-over-year.

Outlook and guidance

• Agriculture segment net sales expected to decline 11–13% year-over-year; adjusted EBIT margin forecasted at 5.7–6.2%.

• Construction segment net sales projected to decrease 3–5% year-over-year; adjusted EBIT margin between 1.7–2.2%.

• Adjusted diluted EPS guidance for 2025 revised to $0.44–$0.50.

• Free cash flow of Industrial Activities expected between $200 million and $500 million.

• Management expects continued macroeconomic headwinds, including lower industry demand and ongoing channel destocking, to persist through 2025.