CNH Industrial (CNH) Q4 2024 earnings summary

Executive summary

• 2024 was marked by significant declines in revenue and profitability, with full year consolidated revenues down 20% to $19.8B and net income dropping 45% to $1.3B, driven by weak industry demand and dealer destocking.

• Q4 2024 saw consolidated revenues fall 28% year-over-year and net income down 70% compared to Q4 2023.

• Structural cost reductions and operational efficiencies delivered ~$600M in annual run-rate savings by year-end.

• Dealer inventory was reduced by over $700M, and production hours were cut by 34% in Q4.

• The company completed a comprehensive review of field issues and launched new customer service support plans.

Financial highlights

• Full year net sales for Industrial Activities were $17.1B, down 23% year-over-year; Q4 net sales were $4.1B, down 31%.

• Q4 adjusted net income was $196M (down 63%); full year adjusted net income was $1.3B (down 40%).

• Q4 free cash flow from Industrial Activities was $848M; full year free cash flow was -$401M.

• Q4 gross margin for Industrial Activities was 19.5%–20.6%; full year gross margin was 21.7%–22.9%, down 200–260 bps from 2023.

• Consolidated debt stood at $27B at year-end.

Outlook and guidance

• 2025 net sales for Industrial Activities expected to decline 12–17% year-over-year; adjusted EBIT margin targeted at 6.0–7.0%.

• Agriculture segment net sales forecasted to be 13–18% lower than 2024, with adjusted EBIT margin of 8.5–9.5%.

• Construction segment net sales expected to decline 5–10%, with adjusted EBIT margin of 4.0–5.0%.

• Free cash flow for Industrial Activities projected positive, between $200M and $500M.

• Adjusted diluted EPS guidance for 2025 is $0.65–$0.75.