CNH Industrial N.V.

What they do

CNH develops, manufactures and sells agricultural equipment (tractors, combines, harvesters) and construction equipment, supported by a Financial Services segment that provides retail financing to end customers and wholesale financing to dealers. The company was formed in 2013 from the combination of Fiat Industrial S.p.A. and CNH Global N.V., is incorporated in the Netherlands, and has its principal office in Basildon, UK. It operates through three segments — Agriculture, Construction, and Financial Services — with Agriculture and Construction together called Industrial Activities. Its manufacturing, commercial and financial subsidiaries are located in 32 countries.

Revenue drivers

• Agriculture — The largest segment, with Q2 2026 net sales of $3,277 million versus $3,248 million a year earlier; makes money selling tractors, combines and harvesters with adjusted EBIT of $170 million (5.2% margin) in Q2 2026.
• Construction — Much smaller than Agriculture at Q2 2026 net sales of $866 million (up 12% year-over-year, +10% at constant currency) with adjusted EBIT of $15 million and a 1.7% margin.
• Financial Services — Provides retail financing for end customers buying or leasing new and used CNH equipment and other manufacturers' products, plus wholesale financing to dealers; CNH describes the segment as contributing alongside the industrial businesses, and liquidity commentary notes reduced Financial Services debt and portfolio receivables.
• Geographic mix — Sales are reported across four regions — North America; EMEA; South America; and Asia Pacific — with Q2 2026 demand declines in North America, EMEA and South America tractors and combines, partly offset by a 15% increase in Asia Pacific tractor demand.

Recent performance

Q2 2026 consolidated revenues were $4,803 million, up 2% year-over-year, with net sales of Industrial Activities of $4,143 million, up 3%. Net income fell to $141 million ($0.11 diluted EPS) from $217 million ($0.17) in Q2 2025, and adjusted net income was $161 million versus $216 million. Adjusted EBIT of Industrial Activities was $167 million (4.0% margin) versus $224 million (5.6%), and free cash flow of Industrial Activities was $150 million versus $451 million. Agriculture adjusted EBIT declined to $170 million from $263 million on lower South America volumes, unfavorable North America and EMEA mix, tariffs, and higher SG&A and R&D, while Construction net sales rose 12% but adjusted EBIT fell 57% to $15 million. For the first half of 2026, operating cash flow was $180 million versus $934 million a year earlier, and total available liquidity at June 30, 2026 was $8,897 million, down $919 million from December 31, 2025.

Strategy

CNH frames its direction around an "Iron + Tech" strategy that combines core industrial capabilities with precision agriculture, automation, connectivity and autonomy. Stated priorities include expanding full-line offerings across harvesters, tractors, crop protection and production equipment, internalizing foundational technologies, launching new precision solutions, and using artificial intelligence tools. The company says it will launch new generation combines, refresh the tractor lineup, and equip all large product lines with factory-fit foundational Precision Technology. Commercial expansion efforts include targeted sales initiatives, dealer network rationalization and customer engagement programs, and management in Q2 2026 highlighted quality, sourcing, operational efficiency and dealer network consolidation. The 10-K describes these pillars as aimed at sustainable organic growth rather than a shift into unrelated businesses.

Risks

• Agriculture cycle at trough — Management said the market "remains at the trough of the agriculture cycle," with Q2 2026 industry tractor volumes down 16% (under 140 HP) and 17% (over 140 HP) in North America and combine demand down in EMEA, South America and Asia Pacific.
• Margin compression — Adjusted EBIT margin of Industrial Activities fell to 4.0% in Q2 2026 from 5.6%, and Agriculture margin fell to 5.2% from 8.1%, on lower volumes, unfavorable mix, tariffs and higher SG&A and R&D.
• Credit rating pressure — S&P lowered CNH's long-term issuer credit rating to 'BBB' from 'BBB+' on April 9, 2026, and on May 13, 2026 Fitch revised its Outlook to Negative from Stable while affirming 'BBB.'
• Broad legal and regulatory exposure — The 10-Q lists legal risks including product liability (including asbestos-related liability), product performance, emissions and fuel economy, retail and wholesale credit, competition and antitrust, intellectual property, environmental, tax and employment matters.

Outlook

The Q2 2026 earnings release states full-year guidance was narrowed to the higher end of the previous ranges. CEO Gerrit Marx said the company delivered year-over-year revenue growth despite industry conditions and pointed to constructive equipment-cycle indicators including dealer inventory normalization, aging fleets, and a more balanced relationship between new and used equipment pricing, while noting farmer economics remain pressured. Management said it remains focused on supporting dealers and customers today while investing in iron and technology capabilities for the next cycle. On liquidity, CNH said it believes available facilities, asset-backed securitization programs, debt issuances and operating cash flow will allow it to satisfy debt service requirements for the coming year.