CNH · CNH Industrial N.V.

CNH Industrial's first quarter 2026 results reflect the trough of the agricultural cycle, with net income plunging 92% to $10 million on flat revenues of $3.8 billion. The Agriculture segment, which accounts for the bulk of sales, saw adjusted EBIT margin contract to 1.0% from 5.4% a year ago, driven by lower volumes in North America and South America, tariff impacts, and higher SG&A and R&D expenses. The Construction segment swung to an adjusted EBIT loss of $28 million, with margin falling to -4.9% from 2.4%, as tariffs and higher costs outweighed pricing. Financial Services net income declined 18% to $74 million, pressured by higher risk costs in Brazil. Despite the weak quarter, management reaffirmed full-year 2026 guidance, including Agriculture net sales down 5% to flat, adjusted EBIT margin of 4.5%-5.5%, and adjusted diluted EPS of $0.35-$0.45. CEO Gerrit Marx noted the company is managing production carefully and believes the industry is moving through the lowest period of the current agriculture cycle. Free cash flow absorption of Industrial Activities was $589 million, within the full-year guidance range of $150-$350 million positive. The company continues to navigate a complex trade environment, with tariff impacts on margins estimated at 210-220 bps for Agriculture and ~600 bps for Construction for the full year.