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CNH Industrial Q1 Earnings Surpass Expectations, Guidance Revised

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CNH Industrial (CNH - Free Report) reported first-quarter 2025 adjusted earnings per share (EPS) of 10 cents, which declined from 33 cents in the prior-year quarter. The figure, however, surpassed the Zacks Consensus Estimate of 9 cents.

In the first quarter, consolidated revenues declined nearly 21% from the year-ago level to $3.82 billion but topped the Zacks Consensus Estimate of $3.79 billion. The company’s net sales from industrial activities came in at $3.17 billion, down 23% due to lower shipment volumes.

CNH Industrial N.V. Price, Consensus and EPS Surprise

CNH Industrial N.V. Price, Consensus and EPS Surprise

CNH Industrial N.V. price-consensus-eps-surprise-chart | CNH Industrial N.V. Quote

CNH Industrial’s Segmental Performance

In the first quarter, net sales in the Agriculture segment fell 23% year over year to $2.58 billion due to lower shipment volume. The metric also missed our estimate of $2.62 billion. The segment’s adjusted EBIT came in at $139 million, down 64% year over year due to lower volumes. The figure also missed our estimate of $237.6 million. The adjusted EBIT margin decreased to 5.4% from 11.5%.

The Construction segment’s sales declined 22% year over year to $591 million as a result of lower volume. The metric also missed our estimate of $592.1 million. Adjusted EBIT came in at $14 million, down 73% year over year due to lower volume and unfavorable net price realization. The figure also missed our estimate of $26.1 million. The adjusted EBIT margin decreased to 2.4% from 6.7%.

The Financial Services segment’s revenues fell 5% to $651 million due to lower equipment sales, lower yields in South America and the unfavorable impact of currency translation. However, the metric surpassed our estimate of $536.7 million. Net income from the segment fell to $90 million from $118 million reported in the year-ago quarter.

(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Financial Details of CNH

CNH Industrial had cash and cash equivalents of $1.7 billion as of March 31, 2025, down from $3.19 billion as of Dec. 31, 2024.

The company’s debt totaled $26 billion as of March 31, 2025, down from $26.9 billion as of Dec. 31, 2024.

The company’s net cash provided by operating activities was $162 million compared with net cash used by operating activities of $894 million reported in the year-ago period.

CNH reported a negative free cash flow from industrial activities of $567 million in the quarter compared with a negative free cash flow of $1.21 billion in the first quarter of 2024.

CNH Updates Guidance for 2025

In 2025, Agriculture sales are expected to decrease 12-20% compared with the prior estimate of a decline of 13-18%. Adjusted EBIT margin for the Agriculture segment is expected in the band of 7-9% compared with the previously guided range of 8.5-9.5%. For the Construction segment, sales are expected to decrease 4-15% year over year compared with the previous estimate of a decline of 5-10%. Adjusted EBIT margin for the construction segment is expected in the band of 2-4%, down from the earlier guidance of 4-5%.

The company expects free cash flow from industrial activities in the band of $100-$500 million compared with the previously guided range of $200-$500 million. Adjusted EPS is expected between 50 cents and 70 cents compared with the previous estimate of 65-75 cents.

Zacks Rank & Key Picks

CNH carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the Industrial Products sector are Andritz AG (ADRZY - Free Report) , KONE Oyj (KNYJY - Free Report) and Kaiser Aluminum Corporation (KALU - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for ADRZY’s 2025 earnings suggests year-over-year growth of 7.34%. EPS estimates for 2025 and 2026 have improved 8 cents and 7 cent, respectively, in the past 60 days.

The Zacks Consensus Estimate for KNYJY’s 2025 sales and earnings suggests year-over-year growth of 2.46% and 13%, respectively. EPS estimates for 2025 and 2026 have improved 2 cents and 3 cents, respectively, in the past 30 days.

The Zacks Consensus Estimate for KALU’s 2025 sales and earnings suggests year-over-year growth of 9.08% and 66.14%, respectively. EPS estimates for 2025 and 2026 have improved 69 cents and 14 cents, respectively, in the past seven days.

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