CNH Industrial N.V.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 17 February 2026: press release. Guidance figures: 8 new. The quarter’s numbers.

Read the filing

Key takeaways

• Full-year revenue fell 9%: Full-year Net sales of Industrial Activities were $15.35 billion, down 10%. The company attributed the revenue decline to lower industry equipment demand. Source
• Agriculture full-year margin fell to 6.2%: Full-year Agriculture net sales were $12.39 billion, down 12%, and adjusted EBIT was $772 million against $1,470 million. Source
• Past-due receivables reached 3.1%: The share of receivables more than 30 days past due was 3.1%, against 1.9% a year earlier, with management citing pressures on farmers in South America. Source
• Agriculture margin hit by tariffs: Agriculture adjusted EBIT fell on tariffs, lower joint venture results, geographic mix and higher SG&A, partly offset by price realization and lower R&D. Source
• Non-cash impairments excluded from adjusted results: Adjusted results exclude $123 million of non-cash impairment on Raven in-process R&D, along with other items in the quarter. Source
• 2026 segment guidance given: Management gave 2026 segment guidance for net sales, adjusted EBIT margins, industrial free cash flow and adjusted diluted EPS. Source
• Global industry demand down again: Management forecasts global industry retail demand to be another 5% lower in 2026 than in 2025, down to historic trough levels. Source
• Full-year free cash flow turned positive: Full-year Industrial Free Cash Flow was $513 million against negative $401 million, and operating cash flow was $2,538 million against $1,968 million. Source

“Despite a challenging market environment, CNH delivered solid progress toward its long-term goals in 2025 and strengthened its foundation for success,”

Gerrit Marx, CNH Chief Executive Officer

Guidance

Results and growth drivers

• Fourth-quarter revenue rose 6%: At constant currency, consolidated revenues rose 3% and Net sales of Industrial Activities rose 5%. Net sales of Industrial Activities were $4.45 billion for the quarter. Source
• Full-year revenue fell 9%: Full-year Net sales of Industrial Activities were $15.35 billion, down 10%. The company attributed the revenue decline to lower industry equipment demand. Source
• Full-year net income fell 60%: Net income was $505 million against $1,259 million in 2024, with diluted EPS of $0.41 against $0.99. Adjusted diluted EPS was $0.55 against $1.05. Source
• Fourth-quarter net income of $89 million: Adjusted net income was $246 million for the quarter, against $196 million a year earlier, after excluding impairments and restructuring charges. Source

Agriculture and Construction segments

• Agriculture sales rose 5% in quarter: Agriculture adjusted EBIT was $233 million against $244 million, a 6.5% adjusted margin against 7.2% a year earlier. Source
• Agriculture full-year margin fell to 6.2%: Full-year Agriculture net sales were $12.39 billion, down 12%, and adjusted EBIT was $772 million against $1,470 million. Source
• Construction sales rose 19% in quarter: Construction net sales reached $853 million, while adjusted EBIT was $5 million against $18 million, a 0.6% margin against 2.5%. Source
• Construction full-year profit declined: Full-year Construction net sales were $2,956 million, down 3%, and adjusted EBIT was $68 million against $169 million, a 2.3% margin. Source

“We continued reducing dealer inventories, advanced our Quality and Operational Excellence initiatives, and introduced products that directly address the evolving needs of farmers and builders.”

Gerrit Marx, CNH Chief Executive Officer

Financial Services

• Financial Services revenue fell 6%: Revenues fell on lower yields and smaller average portfolios in all regions except Asia Pacific. Segment net income was $109 million, up 18%. Source
• Quarterly net income rose on margins: Net income was $109 million against $92 million, helped by interest margin gains in every region and a lower tax rate, partly offset by Brazil risk costs. Source
• Past-due receivables reached 3.1%: The share of receivables more than 30 days past due was 3.1%, against 1.9% a year earlier, with management citing pressures on farmers in South America. Source

Costs, margins and pricing

• Agriculture margin hit by tariffs: Agriculture adjusted EBIT fell on tariffs, lower joint venture results, geographic mix and higher SG&A, partly offset by price realization and lower R&D. Source
• R&D share of sales fell: Agriculture R&D was 5.4% of net sales against 6.2% a year earlier, and lower R&D spending partly offset the margin decline. Source
• Construction margin squeezed by tariffs: Higher production costs, including tariffs, were partly offset by higher shipment volumes in Construction. Source
• Reported tax rate above adjusted rate: Income tax expense was $60 million, with a 45.5% effective tax rate against 36.9% a year earlier. Source
• Non-cash impairments excluded from adjusted results: Adjusted results exclude $123 million of non-cash impairment on Raven in-process R&D, along with other items in the quarter. Source

“In this industry trough year, while markets are still moving slowly, CNH is moving fast in its transformation and engagement of exceptional colleagues to deliver on our ambitious commitments.”

Gerrit Marx, CNH Chief Executive Officer

Demand and 2026 industry view

• 2026 segment guidance given: Management gave 2026 segment guidance for net sales, adjusted EBIT margins, industrial free cash flow and adjusted diluted EPS. Source
• Global industry demand down again: Management forecasts global industry retail demand to be another 5% lower in 2026 than in 2025, down to historic trough levels. Source
• North American demand to fall further: Management expects North American agricultural equipment demand to fall further, with some stability projected in EMEA. Source
• Production kept low, dealer stock reduced: The Agriculture segment is keeping production low, working with dealers to lower channel inventory and pursuing cost efficiencies. Source
• Construction industry demand flat: Management expects construction equipment industry demand to be flattish in 2026, with strength in some non-residential markets offset by residential construction. Source

Capital, cash and shareholder returns

• Quarterly free cash flow reached $817 million: Net cash from operating activities was $945 million in the quarter, against $1,692 million a year earlier. Source
• Full-year free cash flow turned positive: Full-year Industrial Free Cash Flow was $513 million against negative $401 million, and operating cash flow was $2,538 million against $1,968 million. Source
• Industrial net debt above last year: Industrial Activities net debt was $2.03 billion at December 31, 2025, against $1.73 billion a year earlier and $2.79 billion at September 30, 2025. Source
• Capital spending held steady: Spending on property, plant and equipment and intangible assets, excluding operating leases, was $543 million against $536 million a year earlier. Source
• Dividends paid fell to $333 million: Dividends paid were $333 million against $607 million, and dividends declared were $0.25 per share for the year against $0.47. Source

Strategy, products and people

• Quality and operational excellence push: Management cites advancing its Quality and Operational Excellence initiatives and introducing products for farmers and builders during the year. Source
• Construction focus on tariff offsets: Construction is set to focus on quality, manufacturing efficiencies and tariff cost offsets in 2026. Source
• Transformation and colleague engagement: Management said CNH is moving fast in its transformation while markets are still moving slowly, and it cites engaging colleagues. Source

Coming up, as management said on 17 February 2026

• Agriculture demand to resume growth: Management said agricultural equipment industry demand is expected to resume growth in 2027, after the lower 2026 demand levels it is preparing for. Source

Figures management reported

Risks management discussed

• Demand: Management cited low commodity prices, high input costs and an uncertain trade environment as pressures on farmers. Source
• Regulatory: Management said the company is managing rapid changes in trade policies while responding to market dynamics. Source
• Financial: Receivables more than 30 days past due rose, and management tied the increase to economic and environmental conditions affecting farmers. Source
• Financial: A $62 million non-cash impairment was recorded on the Monarch Tractor investment and other minority holdings in the quarter. Source

Earlier plans management reported on

• Not stated: Management said it remains committed to these priorities as it moves into 2026. Source
• Not stated: Management said the company delivered solid progress toward its long-term goals in 2025. Source
• Not stated: Management said it is preparing for lower demand levels in 2026 ahead of an expected industry recovery in 2027. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.