CNH Industrial CNH reported second-quarter 2025 adjusted earnings per share (EPS) of 17 cents, which declined from 38 cents in the prior-year quarter. The figure, however, surpassed the Zacks Consensus Estimate of 16 cents.

In the second quarter, consolidated revenues declined nearly 14% from the year-ago level to $4.71 billion but topped the Zacks Consensus Estimate of $4.53 billion. The company’s net sales from industrial activities came in at $4.02 billion, down 16% due to lower industry demand.

CNH Industrial N.V. Price, Consensus and EPS SurpriseCNH 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 second quarter, net sales in the Agriculture segment fell 17% year over year to $3.25 billion due to lower shipment volume as a result of demand shrinkage and dealer destocking. The metric, however, beat our estimate of $3 billion. The segment’s adjusted EBIT came in at $263 million, down 48% year over year due to lower volumes. The figure, however, topped our estimate of $235.9 million. The adjusted EBIT margin decreased to 8.1% from 12.8%.

The Construction segment’s sales declined 13% year over year to $773 million as a result of lower volume due to the market decline in North America. The metric also missed our estimate of $803.5 million. Adjusted EBIT came in at $35 million, down 42% year over year due to lower volume. The figure, however, beat our estimate of $23.2 million. The adjusted EBIT margin decreased to 4.5% from 6.7%.

The Financial Services segment’s revenues fell 0.3% to $685 million due to lower yields and the unfavorable impact of currency translation. However, the metric surpassed our estimate of $657.7 million. Net income from the segment was down from $91 million reported in the year-ago quarter to $87 million in the second quarter.

Financial Details of CNH

CNH Industrial had cash and cash equivalents of $2.51 billion as of June 30, 2025, down from $3.19 billion as of Dec. 31, 2024.

The company’s debt totaled $27.41 billion as of June 30, 2025, up from $26.9 billion as of Dec. 31, 2024.

The company’s net cash provided by operating activities was $934 million compared with net cash used by operating activities of $515 million reported in the year-ago period.

CNH reported a free cash flow from industrial activities of $451 million in the quarter compared with a free cash flow of $140 million in the second quarter of 2024.

CNH Reaffirms Guidance for 2025

In 2025, Agriculture sales are expected to decrease 12-20% year over year. Adjusted EBIT margin for the Agriculture segment is expected in the band of 7-9%. For the Construction segment, sales are expected to decrease 4-15% year over year. Adjusted EBIT margin for the construction segment is expected in the band of 2-4%.

Story Continues

The company expects free cash flow from industrial activities in the band of $100-$500 million. Adjusted EPS is expected between 50 cents and 70 cents.

Zacks Rank & Key Picks

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

Some better-ranked stocks in the industrial product space are ADT Inc. ADT, Global Industrial Company GIC and Ashtead Group ASHTY. While ADT and GIC sport a Zacks Rank #1 (Strong Buy) each at present, ASHTY carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for ADT’s 2025 sales and earnings indicates year-over-year growth of 4.5% and 14.67%, respectively. EPS estimates for 2025 and 2026 have improved 4 cents and 3 cents, respectively, over the past 30 days.

The Zacks Consensus Estimate for GIC’s 2025 sales and earnings implies year-over-year growth of 4.02% and 24.84%, respectively. EPS estimates for 2025 and 2026 have improved 27 cents and 25 cents, respectively, in the past 30 days.

The Zacks Consensus Estimate for ASHTY’s fiscal 2026 sales and earnings indicates year-over-year growth of 21.38% and 28.75%, respectively. EPS estimates for fiscal 2026 and 2027 have improved $2.12 and $2.89, respectively, in the past 30 days.

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