CNH Industrial 2025 Q1 Earnings Misses Targets as Net Income Falls 64%
Friday, May 2, 2025 7:18 am ET
27min read CNH Industrial (CNH) reported its fiscal 2025 Q1 earnings on May 01st, 2025. The company missed analysts' expectations due to a significant decline in net income and EPS, with net income falling 64% to $132 million and EPS dropping 65.5% to $0.10 compared to the previous year. cnh industrial also adjusted its guidance, reflecting the ongoing macroeconomic uncertainty in the global trade environment. The company is focusing on strategic priorities such as cost management and operational excellence to navigate these challenges effectively, with further insights to be provided during the upcoming Investor Day.
Revenue
CNH Industrial's total revenue for Q1 2025 decreased by 20.5% to $3.83 billion, down from $4.82 billion in Q1 2024. The revenue from Industrial Activities amounted to $3.20 billion, while Financial Services contributed $651 million. The company accounted for eliminations of $25 million, leading to consolidated revenues of $3.83 billion.
Earnings/Net Income
CNH Industrial's net income declined by 64.2% to $132 million in Q1 2025, compared to $369 million in Q1 2024. The earnings per share (EPS) fell by 65.5%, indicating a weaker financial performance. The decline in EPS highlights poor earnings results for the quarter.
Post-Earnings Price Action Review
Following cnh Industrial's earnings report, historical backtest results indicate positive stock price performance in the short to medium term. The analysis highlights that the stock price increases about half the time within three days, with a win rate of 52.38%. Over a 10-day period, the likelihood of a price increase improves, with a win rate of 57.14%. The strongest performance is observed in the 30-day post-earnings period, with a win rate of 66.67%, suggesting a favorable medium-term outlook for investors. The average returns following earnings releases show incremental gains, with a 0.82% increase over three days, 2.60% over ten days, and 4.43% over thirty days. The maximum return achieved was 7.86%, occurring 79 days post-earnings. Overall, CNH Industrial's stock tends to perform well in the medium term, offering potential opportunities for investors seeking to capitalize on post-earnings price movements.
CEO Commentary
“Despite the challenging market conditions, CNH remains committed to driving operational excellence and advancing cutting-edge technologies. Our focus on reducing dealer inventories and managing costs has positioned us to weather the current macroeconomic uncertainties. We are confident in our strategic initiatives and the dedication of our team to execute them, and we are excited to review our strategy in more detail with you at our Investor Day next week,” stated Gerrit Marx, Chief Executive Officer.
Guidance
Updated guidance reflects macroeconomic uncertainty stemming from the global trade environment. The company emphasizes its strategic priorities, including cost management and operational excellence, to navigate these challenges effectively. CNH Industrial will provide further insights into its strategy during the upcoming Investor Day.
Additional News
CNH Industrial has been actively driving down excess channel inventory by producing fewer units than retail demand, a strategy aimed at reducing elevated dealer inventories. The company is also planning to host an Investor Day on May 8, 2025, where management will review strategic initiatives and targets. Additionally, CNH Industrial recently announced a dividend payment of $0.65 per share for 2025, demonstrating its commitment to returning value to shareholders amid challenging market conditions. These efforts underscore the company's focus on aligning its business structure with current industry dynamics.
Revenue
CNH Industrial's total revenue for Q1 2025 decreased by 20.5% to $3.83 billion, down from $4.82 billion in Q1 2024. The revenue from Industrial Activities amounted to $3.20 billion, while Financial Services contributed $651 million. The company accounted for eliminations of $25 million, leading to consolidated revenues of $3.83 billion.
Earnings/Net Income
CNH Industrial's net income declined by 64.2% to $132 million in Q1 2025, compared to $369 million in Q1 2024. The earnings per share (EPS) fell by 65.5%, indicating a weaker financial performance. The decline in EPS highlights poor earnings results for the quarter.
Post-Earnings Price Action Review
Following cnh Industrial's earnings report, historical backtest results indicate positive stock price performance in the short to medium term. The analysis highlights that the stock price increases about half the time within three days, with a win rate of 52.38%. Over a 10-day period, the likelihood of a price increase improves, with a win rate of 57.14%. The strongest performance is observed in the 30-day post-earnings period, with a win rate of 66.67%, suggesting a favorable medium-term outlook for investors. The average returns following earnings releases show incremental gains, with a 0.82% increase over three days, 2.60% over ten days, and 4.43% over thirty days. The maximum return achieved was 7.86%, occurring 79 days post-earnings. Overall, CNH Industrial's stock tends to perform well in the medium term, offering potential opportunities for investors seeking to capitalize on post-earnings price movements.
CEO Commentary
“Despite the challenging market conditions, CNH remains committed to driving operational excellence and advancing cutting-edge technologies. Our focus on reducing dealer inventories and managing costs has positioned us to weather the current macroeconomic uncertainties. We are confident in our strategic initiatives and the dedication of our team to execute them, and we are excited to review our strategy in more detail with you at our Investor Day next week,” stated Gerrit Marx, Chief Executive Officer.
Guidance
Updated guidance reflects macroeconomic uncertainty stemming from the global trade environment. The company emphasizes its strategic priorities, including cost management and operational excellence, to navigate these challenges effectively. CNH Industrial will provide further insights into its strategy during the upcoming Investor Day.
Additional News
CNH Industrial has been actively driving down excess channel inventory by producing fewer units than retail demand, a strategy aimed at reducing elevated dealer inventories. The company is also planning to host an Investor Day on May 8, 2025, where management will review strategic initiatives and targets. Additionally, CNH Industrial recently announced a dividend payment of $0.65 per share for 2025, demonstrating its commitment to returning value to shareholders amid challenging market conditions. These efforts underscore the company's focus on aligning its business structure with current industry dynamics.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.
_cbf77e8c1748017079428.jpeg)
