CNH Industrial (CNH) Financials

CNH Industrial’s latest quarter shows a sharp step down in profitability and weaker cash generation versus the prior year, even though the company still remains profitable on a trailing quarterly basis. In Q1 2026, revenue fell to $3.83 billion from $5.16 billion in Q4 2025 and $3.83 billion in Q1 2025, while net income attributable to common shareholders dropped to just $7 million. The quarter also showed only $35 million of operating cash flow, which is a clear deterioration from the stronger cash generation seen late in 2025.

What stands out most is leverage and margin pressure. CNH ended Q1 2026 with $25.9 billion in long-term debt against just $7.8 billion of equity, so the balance sheet remains highly levered. At the same time, interest expense of $365 million nearly wiped out operating income of $378 million, leaving pre-tax income of only $13 million. That means the business is still very sensitive to financing costs and any slowdown in equipment demand.

• CNH remained profitable in Q1 2026, with $7 million in common-share net income and positive diluted EPS of $0.01.
• Operating cash flow was positive at $35 million, so the business is still generating cash from operations.
• The company held $1.6 billion in cash and equivalents at quarter-end, providing some near-term liquidity support.
• Depreciation and other non-cash items continue to add meaningful cash back to reported earnings.
• Inventory remained elevated at $5.23 billion, which is a large use of working capital and worth monitoring.
• Q1 2026 operating margins were thin, with operating income of $378 million on $3.83 billion of revenue.
• The company continued to invest in the business, including $93 million of capital spending in the quarter.
• The balance sheet still reflects a large asset base, including sizable receivables and equipment-related assets.
• Revenue fell about 25% year over year in Q1 2026 versus Q1 2025, a material top-line decline.
• Net income attributable to common shareholders collapsed to $7 million from $86 million in Q4 2025 and $131 million in Q1 2025.
• Operating cash flow weakened sharply to $35 million, down from $945 million in Q4 2025 and $162 million in Q1 2025.
• Long-term debt rose to $25.9 billion, keeping financial risk elevated.
• Interest expense remained extremely heavy relative to operating income, limiting earnings power.
• Cash and equivalents fell to $1.6 billion from $2.3 billion in Q3 2025 and $2.5 billion in Q2 2025.

Looking at the last four years, CNH’s trend is mixed but clearly more volatile than ideal. In 2023 and parts of 2024, the company generated much stronger earnings and operating cash flow, with several quarters producing solid profits and free cash flow support. However, 2025 and early 2026 show softer revenue, thinner margins, and less reliable cash conversion. That suggests investors should focus on whether management can stabilize demand, reduce working-capital pressure, and keep debt from constraining future earnings.