CNH Q4 Earnings Beat Expectations, Revenues Increase Y/Y

CNH Industrial CNH reported fourth-quarter 2025 adjusted earnings per share (EPS) of 19 cents, up from 15 cents in the prior-year quarter. The figure also beat the Zacks Consensus Estimate of 11 cents.

Consolidated revenues rose 5.8% from the year-ago level to $5.16 billion and topped the Zacks Consensus Estimate of $5.02 billion. The company’s net sales from industrial activities were $4.45 billion, up 8% year over year.

CNH Industrial N.V. Price, Consensus and EPS Surprise

CNH Industrial N.V. price-consensus-eps-surprise-chart | CNH Industrial N.V. Quote

Segmental Performance

In the fourth quarter, net sales in the Agriculture segment rose 5% year over year to $3.6 billion due to favorable price realization and positive foreign exchange impacts. The metric beat our estimate of $3.41 billion. The segment’s adjusted EBIT was $233 million, down 5% year over year due to lower volumes, tariff costs, unfavorable geographic mix and high SG&A expenses. The figure beat our estimate of $172.6 million. The adjusted EBIT margin decreased to 6.5% from 7.2%.

The Construction segment’s sales rose 19% year over year to $853 million as a result of higher volume and favorable price realization in North America. The metric also topped our estimate of $810.3 million. Adjusted EBIT was $5 million, down 72% year over year due to higher production costs including tariff, offset by higher shipment volumes. The adjusted EBIT margin decreased to 0.6% from 2.5%.

The Financial Services segment’s revenues fell 6% to $700 million due to lower yields and lower equipment sales, partly offset by favorable currency translation. The metric missed our estimate of $770.4 million. Net income from the segment was up from $92 million reported in the year-ago quarter to $109 million.

Financial Details

CNH Industrial had cash and cash equivalents of $2.58 billion as of Dec. 31, 2025, down from $3.19 billion as of Dec. 31, 2024.

The company’s debt totaled $26.76 billion as of Dec. 31, 2025, down from $26.88 billion as of Dec. 31, 2024.

Net cash provided by operating activities was $945 million compared with $1.69 billion reported in the year-ago period.

CNH reported a free cash outflow from industrial activities of $817 million compared with $848 million in the fourth quarter of 2024.

CNH Provides 2026 Guidance

In 2026, Agriculture sales are expected to decrease and remain flat 5% year over year. Adjusted EBIT margin for the Agriculture segment is expected in the band of 4.5-5.5%. For the Construction segment, sales are expected to remain flat year over year. Adjusted EBIT margin for the construction segment is expected in the band of 1-2%.

The company now expects free cash flow from industrial activities in the band of $150-$350 million. Adjusted EPS is expected between 35 cents and 45 cents compared with 55 cents in 2025.

Zacks Rank & Key Picks

CNH carries a Zacks Rank #4 (Sell) at present.

Some better-ranked stocks in the industrial product space are Kawasaki Heavy Industries KWHIY, Kennametal KMT and Proto Labs, Inc. PRLB, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for KWHIY’s fiscal 2026 sales and earnings indicates year-over-year growth of 6.3% and 10.1%, respectively. EPS estimates for fiscal 2026 and 2027 have improved 12 cents and 27 cents, respectively, in the past 60 days.

The Zacks Consensus Estimate for KMT’s fiscal 2026 sales and earnings implies year-over-year growth of 11.8% and 66.4%, respectively. EPS estimates for 2026 and 2027 have improved 63 cents and 62 cents in the past 30 days.

The Zacks Consensus Estimate for PRLB’s 2026 sales and earnings indicates year-over-year growth of 6% and 8.4%, respectively. EPS estimates for 2026 have improved 21 cents in the past 30 days.

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This article originally published on Zacks Investment Research (zacks.com).

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