CNH Industrial (NYSE:CNH) Releases Earnings Results

Key Points

• CNH reported Q1 EPS of $0.01 and revenue of $3.83 billion (above estimates) but posted an industrial adjusted EBIT loss of $45M and an industrial free cash flow outflow of $569M, while reaffirming FY‑2026 adjusted EPS guidance of $0.35–$0.45.
• New trade tariffs (Section 232) materially raise headwinds—estimated margin drag of ~210–220 bps in Agriculture and ~600 bps in Construction—and a 28% sales decline in South America (notably Brazil) increases Financial Services and operational risk.
• Management is pursuing operational remedies, targeting a $500 million dealer inventory reduction, rolling out AI Tech Assist to ~70% of dealers, and delivering ~$45M in manufacturing savings to help restore margins and cash flow.

CNH Industrial (NYSE:CNH - Get Free Report) announced its quarterly earnings results on Thursday. The company reported $0.01 EPS for the quarter, Zacks reports. CNH Industrial had a net margin of 2.82% and a return on equity of 8.90%. The company had revenue of $3.83 billion for the quarter, compared to analyst estimates of $3.71 billion. During the same quarter last year, the business earned $0.10 earnings per share. CNH Industrial's revenue was down .1% compared to the same quarter last year. CNH Industrial updated its FY 2026 guidance to 0.35-0.45 EPS.

Here are the key takeaways from CNH Industrial's conference call:

• Q1 results were in line with guidance but weak: consolidated revenues of $3.8 billion (flat YoY), adjusted net income of $21M (EPS $0.01), industrial adjusted EBIT loss of $45M, and an industrial free cash flow outflow of $569M.
• Management reaffirmed 2026 targets: industrial net sales flat to down 4%, industrial EBIT margin of 2.5%–3.5%, industrial free cash flow $150M–$350M, and adjusted EPS $0.35–$0.45.
• Tariff changes materially raise headwinds — Section 232 now applies to total unit/component value, leaving Ag roughly net neutral (~210–220 bps drag) but worsening Construction margin impact to ~600 bps, while Section 301 actions remain an unquantified risk.
• Operational discipline and tech initiatives are progressing: production kept low to target a ~$500 million dealer inventory reduction, AI Tech Assist rolled out to ~70% of dealers, and manufacturing projects delivered ~$45M of savings and quality gains.
• South America (notably Brazil) remains a key risk — tight credit, higher fertilizer and transportation costs, elevated delinquencies and higher Financial Services risk costs drove a 28% sales decline in the region and warrant continued caution into H2/2027.

CNH Industrial Price Performance

Shares of NYSE CNH traded up $0.64 during midday trading on Thursday, reaching $10.72. The company's stock had a trading volume of 29,728,514 shares, compared to its average volume of 14,423,123. CNH Industrial has a one year low of $9.00 and a one year high of $14.27. The company has a market cap of $13.30 billion, a price-to-earnings ratio of 26.81, a price-to-earnings-growth ratio of 1.44 and a beta of 1.26. The company has a 50 day moving average price of $11.05 and a 200 day moving average price of $10.62. The company has a current ratio of 13.34, a quick ratio of 11.36 and a debt-to-equity ratio of 3.44.

CNH Industrial Cuts Dividend

The firm also recently announced an annual dividend, which will be paid on Friday, May 29th. Investors of record on Thursday, May 21st will be issued a $0.10 dividend. This represents a dividend yield of 89.0%. The ex-dividend date is Thursday, May 21st.

More CNH Industrial News

Here are the key news stories impacting CNH Industrial this week:

• Positive Sentiment: Management reaffirmed FY‑2026 adjusted EPS guidance of $0.35–$0.45 and announced a targeted $500M reduction in dealer inventory, a cash/working‑capital focus that should help margins and earnings delivery if executed. CNH reaffirms 2026 adjusted EPS
• Positive Sentiment: Top-line beat: Q1 revenue of $3.83B topped consensus (~$3.71B), suggesting some resilience in parts of the business despite weak agriculture end-market trends. CNH Industrial beats revenue forecasts
• Neutral Sentiment: Q1 results showed EPS of $0.01, roughly in line with estimates (and down from $0.10 a year ago); the company provided slides and an earnings‑call transcript for more color on performance. CNH matches Q1 earnings estimates Earnings call transcript
• Neutral Sentiment: Company reiterated full‑year guidance (0.35–0.45 EPS), which largely tracked analyst expectations — execution on inventory reduction and margins will determine whether guidance is met. First quarter results press release
• Negative Sentiment: Agriculture demand is described as at historic lows, and the Q1 earnings decline underscores the end‑market weakness that could pressure future revenue and margins if it persists. Q1 earnings drop amid weak farm demand
• Negative Sentiment: CNH has contracted police services as a contingency for a potential UAW strike — an operational and reputational risk that could disrupt production and add costs if labor action occurs. CNH contracts for police services

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on CNH. Truist Financial set a $12.00 price objective on shares of CNH Industrial in a research note on Wednesday, January 14th. UBS Group dropped their price target on shares of CNH Industrial from $15.00 to $14.00 and set a "buy" rating on the stock in a research report on Monday, January 5th. DA Davidson upped their price target on shares of CNH Industrial from $10.00 to $12.00 and gave the stock a "neutral" rating in a research note on Thursday, February 19th. iA Financial set a $13.00 price objective on shares of CNH Industrial in a report on Wednesday, January 14th. Finally, Barclays raised their price objective on shares of CNH Industrial from $11.00 to $12.00 and gave the company an "overweight" rating in a research note on Wednesday, April 1st. Six equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, CNH Industrial presently has a consensus rating of "Hold" and a consensus target price of $12.88.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in CNH. Measured Wealth Private Client Group LLC bought a new position in shares of CNH Industrial in the third quarter valued at $29,000. Kestra Advisory Services LLC acquired a new position in shares of CNH Industrial in the 4th quarter worth $34,000. Advisory Services Network LLC acquired a new position in shares of CNH Industrial in the 3rd quarter worth $37,000. Transamerica Financial Advisors LLC raised its position in shares of CNH Industrial by 923.2% during the second quarter. Transamerica Financial Advisors LLC now owns 3,653 shares of the company's stock worth $47,000 after purchasing an additional 3,296 shares during the period. Finally, Caitong International Asset Management Co. Ltd lifted its holdings in shares of CNH Industrial by 403.3% during the third quarter. Caitong International Asset Management Co. Ltd now owns 4,872 shares of the company's stock valued at $53,000 after purchasing an additional 3,904 shares during the last quarter. Institutional investors and hedge funds own 59.88% of the company's stock.

About CNH Industrial

CNH Industrial N.V. is a global capital goods company specializing in the design, production and sale of agricultural and construction equipment, commercial vehicles and powertrain solutions. The firm operates through five core brands—Case IH and New Holland for agricultural machinery, Case and New Holland for construction equipment, Iveco for light, medium and heavy commercial vehicles, and FPT Industrial for engines and drivetrain components. Established in 2013 through the combination of Fiat Industrial and CNH Global, the company draws on a rich heritage of innovation dating back to pioneering landmarks in farm and construction machinery from the 19th century.

The company's product portfolio encompasses tractors, combines, balers, excavators, backhoe loaders, trucks, vans and bespoke engines for marine, automotive and industrial markets.

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