CNH Industrial 2025 Q3 Earnings Net Income Plummets 78.4%

CNH Industrial reported Q3 2025 earnings that missed expectations, with a significant decline in net income and revenue. The company revised its 2025 guidance downward, reflecting persistent market challenges, tariff headwinds, and geographic mix pressures.

Revenue

Consolidated revenue fell 5.5% to $4.40 billion in Q3 2025, driven by lower industry demand and ongoing channel destocking. The Agriculture segment reported net sales of $2.47 billion, while the Construction segment recorded $1.23 billion. Industrial Activities net sales declined 7% to $3.70 billion year-over-year.

Earnings/Net Income

CNH’s net income plummeted to $67 million in Q3 2025, a 78.4% drop from $310 million in Q3 2024. Earnings per share (EPS) fell 75% to $0.06, underscoring the impact of reduced demand and elevated tariffs. The sharp decline in profitability highlights the company’s struggle to navigate volatile market conditions.

Price Action

The stock price of CNH Industrial surged 5.92% in a single trading day but declined 7.91% for the week and 9.55% month-to-date. Post-earnings, the stock fell 6.87% in pre-market trading, reflecting investor skepticism over the company’s revised guidance and profitability outlook.

Post-Earnings Price Action Review

The strategy of buying CNH shares after a quarterly revenue increase and holding for 30 days showed favorable performance over the past three years, with an average 3.5% rise post-earnings. However, the three-year average annual return of 3.5% lags behind the S&P 500’s 2.3%, indicating limited outperformance despite short-term momentum.

CEO Commentary

CEO Gerrit Marx emphasized disciplined production, reduced channel inventories, and investments in technology. He acknowledged near-term challenges from tariffs and geographic mix but expressed confidence in long-term growth as market conditions stabilize.

Guidance

CNH revised its 2025 outlook:

• Agriculture: Net sales down 11–13% (adjusted EBIT margin 5.7–6.2%).

• Construction: Net sales down 3–5% (adjusted EBIT margin 1.7–2.2%).

• Free cash flow: $200–500 million for Industrial Activities.

• EPS: Adjusted diluted EPS of $0.44–$0.50.

Additional News

1. Stock Volatility: CNH’s shares dropped 6.87% post-earnings, reflecting investor concerns over revised guidance and profitability challenges.

2. Strategic Adjustments: The company prioritized cost management and operational efficiency, including reducing channel inventories and mitigating tariff impacts.

3. R&D Focus: CNH increased R&D spending to 8.6% of sales in the Agriculture segment, despite a $49 million impairment charge on IPR&D.

Note: This article is for informational purposes only and does not constitute investment advice.