CNH Industrial (CNH) CMD 2025 summary

Strategic vision and future plans

• Aims to be the #1 or #2 player in all major ag markets by 2030, leveraging a full-line, dual-branded portfolio and vertically integrated precision tech products.

• Focused exclusively on agriculture and construction after spinning off Iveco Group and delisting from Euronext Milan, with a single NYSE listing and $1B share repurchase completed.

• Strategy is built on three pillars: product and tech leadership, margin expansion, and shareholder value creation.

• M&A is not included in the current plan, but tuck-in and venture investments remain an option for future growth.

• Streamlined governance with direct regional P&L accountability and CEO as Head of Ag; construction now operates as a standalone business.

Financial guidance and margin expansion

• Targets 16%-17% mid-cycle adjusted EBIT margin in agriculture and 7%-8% in construction by 2030, with $550M+ in additional operational and quality cost improvements expected.

• Achieved 250 basis points of through-cycle EBIT margin expansion in ag from 2021 to 2024, reaching 12.5% mid-cycle margin.

• Construction segment Adj. EBIT margin improved from 2.9% in 2021 to 5.5% in 2024, targeting 7.0-8.0% by 2030.

• Expects industrial activities to generate over 25% more cash and maintain free cash flow conversion above 70% through the cycle.

• Capital allocation prioritizes organic growth, margin expansion, disciplined M&A, and substantial shareholder returns.

Business developments and operational initiatives

• Precision tech is expected to double its contribution to ag net sales to 10% by 2030, with 80% of tech now built in-house and a target of 90% by 2030.

• Over 15 new tractor launches, 10 combine launches, 19 crop production launches, and 30+ precision tech releases planned by 2027.

• Dealer network transformation includes investments in AI-driven tools, predictive maintenance, and a regionally tailored approach to boost dealer returns and customer loyalty.

• Quality initiatives aim for 200-250 basis points of margin improvement by 2030, with a 25% improvement in new product launch quality.

• Construction segment focuses on new product launches, digital integration, and aftermarket growth, with continued investments in R&D and manufacturing optimization.