CNH Industrial Posts Weak Q3, Lowers 2025 Profit Outlook

Overview

• For Q3 2025, CNH reported net income of $67 million with diluted EPS of $0.06 on consolidated revenues of $4.40 billion, and net sales of Industrial Activities declined 7% to $3.70 billion as operating cash flow totaled $659 million.
• Adjusted EBIT of Industrial Activities fell 69% to $104 million with a 2.8% margin, reflecting lower shipments tied to industry softness, ongoing channel inventory reductions, tariff headwinds, and regional mix pressure.
• Agriculture net sales decreased 10% to $2.96 billion and adjusted EBIT dropped to $137 million, while Construction net sales rose 8% to $739 million but adjusted EBIT slipped to $14 million; R&D expense included a $49 million non‑cash impairment related to Bennamann IPR&D.
• Updated 2025 guidance calls for Agriculture net sales down 11%–13% and Construction down 3%–5%, with free cash flow of Industrial Activities projected at $200 million–$500 million and adjusted diluted EPS of $0.44–$0.50.
• The company said expanded U.S. steel and aluminum tariffs increased input costs and that mitigation efforts—alternative sourcing, inventory consumption, and pricing—partially offset the impact as some near‑term costs are shared with customers.