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Why Is CNH (CNH) Down 20.1% Since Last Earnings Report?
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It has been about a month since the last earnings report for CNH Industrial (CNH - Free Report) . Shares have lost about 20.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is CNH due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for CNH Industrial N.V. before we dive into how investors and analysts have reacted as of late.
CNH Industrial reported fourth-quarter 2025 adjusted earnings per share (EPS) of 19 cents, up from 15 cents in the prior-year quarter. The figure also beat the Zacks Consensus Estimate of 11 cents.
Consolidated revenues rose 5.8% from the year-ago level to $5.16 billion and topped the Zacks Consensus Estimate of $5.02 billion. The company’s net sales from industrial activities were $4.45 billion, up 8% year over year.
Segmental Performance
In the fourth quarter, net sales in the Agriculture segment rose 5% year over year to $3.6 billion due to favorable price realization and positive foreign exchange impacts. The metric beat our estimate of $3.41 billion. The segment’s adjusted EBIT was $233 million, down 5% year over year due to lower volumes, tariff costs, unfavorable geographic mix and high SG&A expenses. The figure beat our estimate of $172.6 million. The adjusted EBIT margin decreased to 6.5% from 7.2%.
The Construction segment’s sales rose 19% year over year to $853 million as a result of higher volume and favorable price realization in North America. The metric also topped our estimate of $810.3 million. Adjusted EBIT was $5 million, down 72% year over year due to higher production costs including tariff, offset by higher shipment volumes. The adjusted EBIT margin decreased to 0.6% from 2.5%.
The Financial Services segment’s revenues fell 6% to $700 million due to lower yields and lower equipment sales, partly offset by favorable currency translation. The metric missed our estimate of $770.4 million. Net income from the segment was up from $92 million reported in the year-ago quarter to $109 million.
Financial Details
CNH Industrial had cash and cash equivalents of $2.58 billion as of Dec. 31, 2025, down from $3.19 billion as of Dec. 31, 2024.
The company’s debt totaled $26.76 billion as of Dec. 31, 2025, down from $26.88 billion as of Dec. 31, 2024.
Net cash provided by operating activities was $945 million compared with $1.69 billion reported in the year-ago period.
CNH reported a free cash outflow from industrial activities of $817 million compared with $848 million in the fourth quarter of 2024.
2026 Guidance
In 2026, Agriculture sales are expected to decrease and remain flat 5% year over year. Adjusted EBIT margin for the Agriculture segment is expected in the band of 4.5-5.5%. For the Construction segment, sales are expected to remain flat year over year. Adjusted EBIT margin for the construction segment is expected in the band of 1-2%.
The company now expects free cash flow from industrial activities in the band of $150-$350 million. Adjusted EPS is expected between 35 cents and 45 cents compared with 55 cents in 2025.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -68.75% due to these changes.
VGM Scores
At this time, CNH has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, CNH has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is CNH (CNH) Down 20.1% Since Last Earnings Report?
It has been about a month since the last earnings report for CNH Industrial (CNH - Free Report) . Shares have lost about 20.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is CNH due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for CNH Industrial N.V. before we dive into how investors and analysts have reacted as of late.
CNH Q4 Earnings Beat Expectations, Revenues Increase Y/Y
CNH Industrial reported fourth-quarter 2025 adjusted earnings per share (EPS) of 19 cents, up from 15 cents in the prior-year quarter. The figure also beat the Zacks Consensus Estimate of 11 cents.
Consolidated revenues rose 5.8% from the year-ago level to $5.16 billion and topped the Zacks Consensus Estimate of $5.02 billion. The company’s net sales from industrial activities were $4.45 billion, up 8% year over year.
Segmental Performance
In the fourth quarter, net sales in the Agriculture segment rose 5% year over year to $3.6 billion due to favorable price realization and positive foreign exchange impacts. The metric beat our estimate of $3.41 billion. The segment’s adjusted EBIT was $233 million, down 5% year over year due to lower volumes, tariff costs, unfavorable geographic mix and high SG&A expenses. The figure beat our estimate of $172.6 million. The adjusted EBIT margin decreased to 6.5% from 7.2%.
The Construction segment’s sales rose 19% year over year to $853 million as a result of higher volume and favorable price realization in North America. The metric also topped our estimate of $810.3 million. Adjusted EBIT was $5 million, down 72% year over year due to higher production costs including tariff, offset by higher shipment volumes. The adjusted EBIT margin decreased to 0.6% from 2.5%.
The Financial Services segment’s revenues fell 6% to $700 million due to lower yields and lower equipment sales, partly offset by favorable currency translation. The metric missed our estimate of $770.4 million. Net income from the segment was up from $92 million reported in the year-ago quarter to $109 million.
Financial Details
CNH Industrial had cash and cash equivalents of $2.58 billion as of Dec. 31, 2025, down from $3.19 billion as of Dec. 31, 2024.
The company’s debt totaled $26.76 billion as of Dec. 31, 2025, down from $26.88 billion as of Dec. 31, 2024.
Net cash provided by operating activities was $945 million compared with $1.69 billion reported in the year-ago period.
CNH reported a free cash outflow from industrial activities of $817 million compared with $848 million in the fourth quarter of 2024.
2026 Guidance
In 2026, Agriculture sales are expected to decrease and remain flat 5% year over year. Adjusted EBIT margin for the Agriculture segment is expected in the band of 4.5-5.5%. For the Construction segment, sales are expected to remain flat year over year. Adjusted EBIT margin for the construction segment is expected in the band of 1-2%.
The company now expects free cash flow from industrial activities in the band of $150-$350 million. Adjusted EPS is expected between 35 cents and 45 cents compared with 55 cents in 2025.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -68.75% due to these changes.
VGM Scores
At this time, CNH has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, CNH has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.