CNH Industrial's Profit Plummets 60% Amid Revenue Decline

TL;DR

**CNH Industrial's Q3 results are a red flag, with profits tanking and revenue shrinking – time to re-evaluate your position.**

AI Summary

CNH Industrial N.V. reported a significant decline in net income attributable to CNH Industrial N.V. for the nine months ended September 30, 2025, falling to $424 million from $1,073 million in the prior year, a decrease of 60.5%. Total revenues also decreased by 13.5% to $12,938 million from $14,960 million in the same period. This revenue decline was primarily driven by a 15.8% drop in Industrial Activities revenue, from $12,931 million to $10,895 million, with Agriculture segment revenues decreasing by 17.1% to $8,792 million. Net sales for the three months ended September 30, 2025, were $3,702 million, down from $3,997 million in the prior year. Selling, general and administrative expenses increased to $1,413 million for the nine months ended September 30, 2025, up from $1,298 million in 2024. Cash and cash equivalents decreased to $2,303 million at September 30, 2025, from $3,191 million at December 31, 2024. The company also saw a substantial reduction in cash dividends declared per common share, from $0.470 in 2024 to $0.250 in 2025 for the nine-month period. Inventories, net, increased to $5,353 million from $4,776 million, indicating potential slowing sales or increased production.

Why It Matters

This significant drop in CNH Industrial's net income and revenue signals a challenging period for the company, impacting investor confidence and potentially future dividend payouts. The decline in the Agriculture segment, a core business, suggests broader headwinds in the agricultural equipment market, which could affect competitors like Deere & Company. For employees, this could lead to cost-cutting measures or hiring freezes. Customers might see less investment in new product development if financial performance continues to weaken. The increased inventory levels could also indicate a slowdown in demand, potentially leading to future pricing pressures and impacting the broader industrial and agricultural equipment market.

Risk Assessment

Risk Level: high — The net income attributable to CNH Industrial N.V. plummeted by 60.5% to $424 million for the nine months ended September 30, 2025, from $1,073 million in the prior year. Total revenues also decreased by 13.5% to $12,938 million from $14,960 million. This substantial decline in profitability and revenue, coupled with an increase in inventories to $5,353 million from $4,776 million, indicates significant operational and market challenges.

Analyst Insight

Investors should consider a cautious approach, potentially reducing exposure to CNH Industrial N.V. given the sharp decline in net income and revenue. Monitor upcoming earnings reports closely for any signs of stabilization or further deterioration in the agricultural and construction equipment markets.

Financial Highlights

debt To Equity

3.49

revenue

$12,938M

operating Margin

3.77%

total Assets

$43,258M

total Debt

$27,128M

net Income

$424M

eps

$0.27

gross Margin

21.05%

cash Position

$2,303M

revenue Growth

-13.5%

Revenue Breakdown

Key Numbers

• $424M — Net income attributable to CNH Industrial N.V. (Decreased from $1,073 million in 2024 for the nine months ended September 30, 2025, a 60.5% decline.)
• $12,938M — Total Revenues (Decreased from $14,960 million in 2024 for the nine months ended September 30, 2025, a 13.5% decline.)
• $10,895M — Total Industrial Activities Revenue (Decreased from $12,931 million in 2024 for the nine months ended September 30, 2025, a 15.8% decline.)
• $8,792M — Agriculture Segment Revenue (Decreased from $10,596 million in 2024 for the nine months ended September 30, 2025, a 17.1% decline.)
• $2,303M — Cash and cash equivalents (Decreased from $3,191 million at December 31, 2024, to September 30, 2025.)
• $5,353M — Inventories, net (Increased from $4,776 million at December 31, 2024, to September 30, 2025.)
• $0.250 — Cash dividends declared per common share (Decreased from $0.470 in 2024 for the nine months ended September 30, 2025.)
• $1,413M — Selling, general and administrative expenses (Increased from $1,298 million in 2024 for the nine months ended September 30, 2025.)

Key Players & Entities

• CNH Industrial N.V. (company) — registrant
• Iveco Group N.V. (company) — related entity
• FASB (regulator) — Financial Accounting Standards Board
• SEC (regulator) — Securities and Exchange Commission
• New York Stock Exchange (regulator) — exchange where CNH is registered
• United States (person) — geographic region
• Canada (person) — geographic region
• Mexico (person) — geographic region
• Europe (person) — geographic region
• Middle East (person) — geographic region

FAQ

Risk Factors

• Persistent Inflation and Trade Restrictions [high — market]: The company faces significant uncertainties due to persistent inflation and increased tariffs and other trade restrictions. These factors may materially impact the company's business and actual results, affecting future cash flows and the valuation of assets like goodwill and intangibles.
• Fluctuations in Financing Receivables [medium — financial]: Financing receivables, net, remained relatively stable at $23,001 million as of September 30, 2025, down slightly from $23,085 million at December 31, 2024. However, any significant adverse changes in the creditworthiness of customers or economic conditions could impact the value and collectability of these receivables.
• Inventory Management [medium — operational]: Inventories, net, increased to $5,353 million from $4,776 million at year-end 2024. This increase, coupled with declining revenues, suggests potential challenges in sales absorption or increased production, which could lead to higher carrying costs and potential write-downs.
• Reduced Cash Position [medium — financial]: Cash and cash equivalents decreased to $2,303 million from $3,191 million at December 31, 2024. This reduction, alongside increased SG&A expenses and declining revenues, could constrain the company's financial flexibility for investments or unexpected operational needs.
• Geopolitical Events [medium — financial]: Geopolitical events are cited as a significant uncertainty that may impact the company's business. Such events can disrupt supply chains, affect demand for equipment, and introduce currency volatility, all of which could negatively affect financial performance.

Industry Context

CNH Industrial operates in the capital goods sector, primarily focused on agricultural and construction equipment. The industry is cyclical and sensitive to global economic conditions, commodity prices, and interest rates. Competitors include major players like Deere & Company, AGCO Corporation, and Caterpillar Inc. Recent trends indicate a slowdown in demand, potentially exacerbated by inflationary pressures and supply chain disruptions, impacting sales volumes and profitability across the sector.

Regulatory Implications

CNH Industrial is subject to various regulations globally, including environmental standards, safety regulations, and trade policies. Changes in trade tariffs or the imposition of new restrictions can directly impact the cost of goods sold and market access. Compliance with evolving environmental regulations may also necessitate increased R&D spending or capital expenditures.

What Investors Should Do

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Key Dates

• 2025-09-30: End of Nine Months Reporting Period — CNH Industrial reported a significant decline in net income and revenues for the period, with increased SG&A expenses and a reduced cash position.
• 2025-09-30: Consolidated Balance Sheet Date — Reflects a decrease in cash and cash equivalents and an increase in inventories compared to year-end 2024.
• 2024-12-31: Year-End Reporting Period — Prior period figures for comparison, showing higher net income, revenues, and cash balances.

Glossary

Net income attributable to CNH Industrial N.V.

The portion of the company's net income that belongs to the shareholders of CNH Industrial N.V. after accounting for noncontrolling interests. (Key indicator of profitability for CNH shareholders, which has seen a significant decline.)

Industrial Activities Revenue

Revenue generated from the core business of designing, producing, and selling agricultural and construction equipment. (Represents the primary revenue stream, which has experienced a substantial decrease.)

Inventories, net

The cost of raw materials, work-in-progress, and finished goods held by the company, net of any allowances for obsolescence or valuation adjustments. (An increase here, alongside falling sales, can signal potential issues with inventory turnover and carrying costs.)

Selling, general and administrative expenses (SG&A)

Costs incurred in the normal course of business related to selling products, managing the company, and general overhead. (An increase in SG&A expenses, especially during a revenue downturn, can put pressure on profitability.)

Cash and cash equivalents

Highly liquid investments with maturities of three months or less at the time of purchase, including currency on hand, bank deposits, and money market funds. (Indicates the company's immediate liquidity and ability to meet short-term obligations.)

Financing receivables, net

Amounts owed to the company from customers for financing provided for the purchase or lease of equipment. (A significant asset class for CNH's Financial Services segment; stability is key, but economic downturns can impact collectability.)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, CNH Industrial has experienced a significant downturn. Total revenues have fallen by 13.5% to $12,938 million, driven by a 15.8% decrease in Industrial Activities revenue, particularly within the Agriculture segment (-17.1%). This revenue contraction has led to a sharp 60.5% decline in net income attributable to CNH Industrial N.V., which dropped to $424 million. Concurrently, Selling, General, and Administrative expenses have increased by 8.9%, and the company's cash position has weakened, decreasing by $888 million. Inventories have also risen, suggesting potential sales headwinds.

Filing Documents

• cnhi-20250930.htm (10-Q) — 2754KB
• q32025exhibit311.htm (EX-31.1) — 10KB
• q32025exhibit312.htm (EX-31.2) — 10KB
• q32025exhibit321.htm (EX-32.1) — 6KB
• cnhi-20250930_g1.jpg (GRAPHIC) — 77KB
• 0001567094-25-000011.txt ( ) — 13071KB
• cnhi-20250930.xsd (EX-101.SCH) — 56KB
• cnhi-20250930_cal.xml (EX-101.CAL) — 103KB
• cnhi-20250930_def.xml (EX-101.DEF) — 325KB
• cnhi-20250930_lab.xml (EX-101.LAB) — 733KB
• cnhi-20250930_pre.xml (EX-101.PRE) — 542KB
• cnhi-20250930_htm.xml (XML) — 2742KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Item 1

Financial statements and notes to consolidated financial statements

Financial statements and notes to consolidated financial statements 1 Item 2

Management's discussion and analysis of financial condition and results of operations

Management's discussion and analysis of financial condition and results of operations 35 Item 3

Quantitative and qualitative disclosures about market risk

Quantitative and qualitative disclosures about market risk 57 Item 4

Controls and procedures

Controls and procedures 57

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1

Legal proceedings

Legal proceedings 59 Item 1A

Risk factors

Risk factors 59 Item 2 Unregistered sales of equity securities and use of proceeds 59 Item 3 Default upon senior securities 59 Item 4 Mine safety disclosures 59

Other information

Item 5 Other information 59

Exhibits

Item 6 Exhibits 60

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION CNH INDUSTRIAL N.V. CONSOLIDATED BALANCE SHEETS As of September 30, 2025 and December 31, 2024 (Unaudited) (in millions of dollars) September 30, 2025 December 31, 2024 Assets Cash and cash equivalents $ 2,303 $ 3,191 Restricted cash 653 675 Trade receivables, net 196 125 Financing receivables, net 23,001 23,085 Financial receivables from Iveco Group N.V. 262 168 Inventories, net 5,353 4,776 Property, plant and equipment, net 2,183 1,936 Investments in unconsolidated subsidiaries and affiliates 508 490 Equipment under operating leases 1,549 1,466 Goodwill 3,613 3,584 Other intangible assets, net 1,187 1,221 Deferred tax assets 1,018 927 Derivative assets 155 196 Other assets 1,277 1,093 Total Assets $ 43,258 $ 42,933 Liabilities and Equity Debt $ 27,128 $ 26,882 Financial payables to Iveco Group N.V. 38 62 Trade payables 2,277 2,292 Deferred tax liabilities 33 28 Pension, postretirement and other postemployment benefits 412 392 Derivative liabilities 93 146 Other liabilities 5,440 5,363 Total Liabilities 35,421 35,165 Redeemable noncontrolling interest 60 55 Common shares, 0.01 , par value; outstanding 1,246,404,668 common shares and 370,457,350 loyalty program special voting shares at 09/30/2025; and outstanding 1,248,023,791 common shares and 370,994,305 loyalty program special voting shares at 12/31/2024 25 25 Treasury stock, at cost; 117,995,528 shares at 09/30/2025 and 116,376,405 at 12/31/2024 ( 1,392 ) ( 1,386 ) Additional paid-in capital 1,388 1,415 Retained earnings 10,420 10,309 Accumulated other comprehensive income (loss) ( 2,709 ) ( 2,712 ) Noncontrolling interests 45 62 Total Equity 7,777 7,713 Total Liabilities and Equity $ 43,258 $ 42,933 See accompanying notes to the consolidated financial statements 1 CNH INDUSTRIAL N.V. CONSOLIDATED STATEMENTS OF OPERATIONS For the Three and Nine Months Ended September 30, 2025 and 2024 (Unaudited) Three Months Ended September 30,

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. BASIS OF PRESENTATION CNH Industrial N.V. ("CNH" or the "Company") is incorporated in, and under the laws of, the Netherlands. CNH is a leading company in the capital goods sector that designs, produces and sells agricultural and construction equipment. In addition, CNH's Financial Services segment offers an array of financial products and services. In addition, CNH's Financial Services segment offers a range of financial products and services, including retail financing for the purchase or lease of new and used equipment from CNH and other manufacturers. The segment also offers additional retail financing programs and wholesale financing options to support its dealer network. CNH has prepared the accompanying consolidated financial statements in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The consolidated financial statements include CNH Industrial N.V. and its consolidated subsidiaries. The consolidated financial statements are expressed in U.S. dollars and unless otherwise indicated, all financial data set forth in these consolidated financial statements are expressed in U.S. dollars. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted as permitted by such rules and regulations. All adjustments, consisting only of normal recurring adjustments, have been reflected in these consolidated financial statements. Management believes that the disclosures are adequate to present fairly the financial position, results of operations, and cash flows at the dates and for the periods presented. These interim financial statements should be read in conjunction with the financial statements and the notes thereto appearing in the Company's annual report on Form 10-K for the year ended December 31, 2024. Results for interim periods are not necessarily