10-Q · April 30, 2026
CNH Industrial reported Q1 2026 revenues of $3.83 billion, slightly below the $3.84 billion consensus estimate, with EPS matching estimates at $0.01. Despite flat revenues year-over-year, the company faced significant…
Earnings analysis · 10-Q
CNH earnings analysis
Filed August 3, 2026 · Our reading of the company's report
The latest report
CNH delivered Q2 revenue of $4.803 billion, up 2.0% year over year, driven by 12.0% Construction growth, but profitability deteriorated materially: net income fell to $141 million from $217 million and Agriculture…
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CNH delivered Q2 revenue of $4.803 billion, up 2.0% year over year, driven by 12.0% Construction growth, but profitability deteriorated materially: net income fell to $141 million from $217 million and Agriculture adjusted EBIT margin fell 290 basis points to 5.2%. Gross margin declined to 18.0% from 20.6% as tariffs and lower production volumes raised cost of goods sold to 82.0% of net sales. Cash generation also weakened, with first-half operating cash flow of $180 million versus $934 million a year earlier, largely due to a $436 million inventory-related cash use.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.11
- Gross margin
- 18.0%
What stood out
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Revenue returned to modest growth
Q2 total revenue increased 2.0% year over year to $4.803 billion, while net sales rose 3.0% to $4.143 billion. Construction was the principal growth driver.
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Construction shipment growth accelerated
Construction net sales rose 12.0% to $866 million, led by a 23.5% increase in North America to $468 million; management cited higher shipments, including volumes delayed from Q1.
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Agriculture pricing supported sales
Agriculture sales held broadly flat, rising 0.9% to $3.277 billion, as favorable pricing partly offset lower volumes. North America sales increased 9.9% to $1.229 billion and Asia-Pacific increased 11.3% to $346 million.
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Potential tariff-recovery tailwind
CNH recognized a $5 million tariff recovery as a reduction in cost of sales during the first half and expects to recover approximately $150 million of IEEPA tariffs in future periods, subject to cash receipt and recognition criteria.
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Liquidity and covenant headroom remain solid
Available liquidity remained substantial at $8.897 billion at June 30, including $6.273 billion of undrawn medium-term unsecured committed facilities. The company was in compliance with all covenants on its €3.25 billion revolving credit facility.
What to watch
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Margin pressure drove sharp earnings decline
Net income declined 35.0% year over year to $141 million from $217 million. Cost of goods sold increased to 82.0% of net sales from 79.4%, reflecting tariff costs and lower production volumes.
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Agriculture profitability and South America weakened
Agriculture adjusted EBIT fell $93 million to $170 million and margin contracted to 5.2% from 8.1%. South America agriculture sales declined 27.0% to $346 million amid lower volumes and unfavorable mix.
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Construction growth has low profitability
Construction adjusted EBIT declined to $15 million from $35 million despite 12.0% sales growth, reducing adjusted EBIT margin to 1.7% from 4.5%; management cited tariffs and higher R&D expense.
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Working-capital build constrained cash flow
Operating cash flow fell to $180 million for the first six months from $934 million, as inventories consumed $436 million of cash versus $51 million in the prior-year period. Consolidated inventory increased to $5.171 billion from $4.651 billion at year-end.
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South American credit quality deteriorated
Financial Services receivables more than 30 days past due increased to 4.4% from 3.9% a year earlier, primarily reflecting pressure on South American farmers. Financial Services net income fell $16 million to $71 million.
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Liquidity declined and ratings outlook worsened
Total available liquidity decreased $919 million from year-end to $8.897 billion, while S&P lowered CNH's rating to BBB from BBB+ and Fitch revised its BBB outlook to Negative from Stable.
Management's outlook
The 10-Q does not provide explicit quantitative full-year revenue or EPS guidance. Management states it expects to recover approximately $150 million of IEEPA tariffs in future periods when recognition criteria are met, and believes current liquidity facilities and operating cash flow will satisfy debt-service needs for the coming year.
Earlier filings 4
10-K · February 26, 2026
CNH's 2025 10-K emphasizes remediation of a 2024 inventory control material weakness (concluded remediated as of December 31, 2025) and continued focus on cost, sourcing and R&D investments to respond to regulatory and…
10-Q · November 7, 2025
CNH reported Q3 2025 revenues of $4,399 million (down 5.5% YoY from $4,654 million) and consolidated net income of $67 million, a large decline versus $310 million in Q3 2024. Industrial Activities’ Adjusted EBIT fell…
10-Q · August 4, 2025
CNH reported total revenues of $4,711 million for Q2 2025, down 14.2% versus Q2 2024, with net income attributable to CNH of $213 million (net income $217 million). Industrial Activities saw Adjusted EBIT of $224…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.