CNH Industrial Reports Q2 Earnings Amid Tariff Pressures and Flat Agricultural Sales
CNH Industrial (NYSE: CNH) reported second-quarter results that were largely in line with expectations, despite ongoing challenges. Revenue increased by 2% to $4.8 billion year-over-year, while adjusted earnings per share came in at $0.13. However, industrial free cash flow dropped to $150 million due to weaker EBIT and higher working capital investment. The agriculture segment saw a decline in profitability with an adjusted EBIT margin of 5.2%, down from 8.1% the previous year, driven by unfavorable product mix and tariff costs. Although sales remained stable at around $3.3 billion, regional performance varied significantly, with North America up 10% but South American sales falling 27%. CNH plans to reduce dealer inventories further in response. Tariffs continue to impact the construction segment as well, where EBIT margins fell despite a 12% increase in sales. Management remains cautious about agriculture market conditions for 2027 and is focusing on improving efficiency and investing in AI-enabled technologies.
Topics: agriculture construction ebit free_cash_flow tariffs