Cnh Industrial N.v. · NYSE:CNH
Cnh Industrial — Q2 2025 Earnings Presentation
35 slides from Cnh Industrial's earnings presentation, Aug 1, 2025
Slide 1: Q2 2025 Financial Results
Q2 2025 FINANCIAL RESULTS AUGUST 1, 2025
Slide 2: Safe Harbor Statement and Disclosures
SAFE HARBOR STATEMENT AND DISCLOSURES All statements other than statements of historical fact contained in this presentation including competitive strengths; business strategy; future financial position or operating results; budgets; projections with respect to revenue, income, earnings (or loss) pe
Slide 3: Q2 2025 Main Highlights
Q2 2025 | MAIN HIGHLIGHTS Persistent market demand weakness in an uncertain macro environment Lower production hours (-12% YoY) to reduce dealer inventory Cost improvements partially offset lower volume impact Announced collaboration with Starlink Detailed new strategic business plan at Investor Day
Slide 4: Q2 2025 Results
Q2 2025 | RESULTS Consolidated Adj. EBIT1 Net Income Diluted EPS Revenues Industrial Activities $4.7B $224M $217M $0.17 (14)% (55)% (46)% $(0.15) Net Sales Adj. EBIT%1 Adj. Net Income1 Adj. Diluted EPS1 Industrial Activities Industrial Activities $4.0B 5.6% $216M $0.17 (16)% (490) bps (52)% $(0.18)
Slide 5: Path to 2030
PATH TO 2030 Breaking new ground on Iron + Tech Expanding mid-cycle margins Expanding Advancing Driving Operational Quality as a Product Iron + Tech commercial excellence mindset Leadership integration excellence 5 Q2 2025 results | August 1, 2025
Slide 6: Expanding Connectivity with Starlink
E X P A N D I N G C O N N E C T I V I T Y W I T H S TA R L I N K Robust and affordable high-speed connectivity for CNH customers Enables efficient communication and coordination, enhancing productivity and yield Seamlessly integrates with FieldOps Keeps farm management devices consistently connected
Slide 7: Q2 2025 Financial Highlights
Q2 2025 | FINANCIAL HIGHLIGHTS ($M) (16)% (52)% $(0.18) +311 4,803 $0.35 451 451 4,021 216 $0.17 140 Q2 2024 Q2 2025 Q2 2024 Q2 2025 Q2 2024 Q2 2025 Q2 2024 Q2 2025 Net Sales Adjusted Adjusted Free Cash Flow1 Industrial Activities Net Income1 Diluted EPS1 Industrial Activities Δ YoY (1) Non-GAAP mea
Slide 8: Q2 2025 Agriculture
Q2 2025 | AGRICULTURE Net Sales ($M) Gross Margin1 Production hours Δ YoY (17)% YoY (260) bps YoY • Q2: (12)% 3,913 3,248 24.4% 21.8% • H1: (20)% Dealer inventory2 Q2 2024 Q2 2025 Q2 2024 Q2 2025 sequential reductions • Q2: $(0.2)B Adjusted EBIT ($M) • H1: $(0.3)B 12.8% 502 17 21 8.1% 263 Production
Slide 9: Q2 2025 Construction
Q2 2025 | CONSTRUCTION Net Sales ($M) Gross Margin1 Production hours Δ YoY (13)% YoY (80) bps YoY • Q2: (15)% 890 773 16.5% 15.7% • H1: (17)% Q2 2024 Q2 2025 Q2 2024 Q2 2025 Dealer inventory2 YoY • Q2: (12)% Adjusted EBIT ($M) 6.7% 60 Production slots filled ● 5 2 2 4.5% 35 60 (1) (4) • Q3: (29) 35
Slide 10: Q2 2025 Financial Services
Q2 2025 | FINANCIAL SERVICES Net Income ($M) Profitability Ratios 4.0% 3.6% 3.1% 3.1% Q2 2024 91 3.0% 1.9% 2.0% 1.6% 1.6% Q2 2025 87 1.0% Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Gross Margin / Avg. Assets on Book Return on Assets1 Managed Portfolio2 & Retail Originations2 Delinquencies
Slide 11: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES ORGANIC GROWTH & MARGIN EXPANSION Support organic growth through investment in commercial actions, operational efficiencies, and quality improvements BALANCE SHEET STRENGTH & STRONG CREDIT RATING Preserve investment grade credit rating as foundational commitment INORGAN
Slide 12: Updated FX & Tariff Assumptions
UPDATED FX & TARIFF ASSUMPTIONS 2025 Factors Prior Guidance Current Guidance Risk Level1 FX translation on Net Sales -3% -1% Steel & aluminum tariffs 25% 50% EU tariffs 10-20% 15% Non-USMCA Mexico tariffs 25% 25% = 30% Non-USMCA Canada tariffs 25% 25% = 35% China tariffs 145% 30% Japan tariffs 10-24
Slide 13: 2025 Outlook – Agriculture
2025 OUTLOOK – AGRICULTURE Industry Retail Demand Forecast1 (Units) CNH Agriculture – Main Assumptions Net Sales: $B & Δ% YoY 14.0 (20)%-(12)% (20)%-(12)% Tractors Combines Δ YoY Δ YoY North (15)% - (35)% - (30)% - (20)% America (5)% (25)% LHP HHP EMEA (15)% - (10)% flat - 5% 2024A 2025E prior 2025E
Slide 14: 2025 Outlook – Construction
2025 OUTLOOK – CONSTRUCTION Industry Retail Demand Forecast1 (Units) CNH Construction – Main Assumptions Net Sales: $B & Δ% YoY Light Heavy (15)%-(4)% (15)%-(4)% 3.1 Δ YoY Δ YoY North (10)% - flat (15)% - (5)% America EMEA (5)% - flat flat - 5% 2024A 2025E prior 2025E current (reaffirmed) South Adj.
Slide 15: 2025 Outlook – Financial Targets
2025 OUTLOOK – FINANCIAL TARGETS Industrial Activities 2024 Prior Guidance Current Guidance Net Sales $17.1B (19)% - (11)% YoY reaffirmed Adj. EBIT margin1 8.2% 4.5% - 6.5% reaffirmed Free Cash Flow1 $(0.4)B $0.1B - $0.5B reaffirmed Company Adj. Diluted EPS1 $1.05 $0.50 - $0.70 reaffirmed Significan
Slide 16: 2025 Priorities & Outlook
2025 PRIORITIES & OUTLOOK Carefully monitoring global trade environment & supply chain Maintaining low production levels to further reduce dealer inventory Diligent focus on quality and customer service Continuous delivery of operational efficiencies Sustained investment in iron + tech 16 16 Q2 2025
Slide 17: Appendix
APPENDIX 17
Slide 18: Upcoming Events
UPCOMING EVENTS Investor Booth Tour @ Farm Progress (Decatur, Illinois): Tuesday, August 26, 1:30PM CT Q3 2025 earnings call: Friday, November 7, 9:00AM ET Investor Tech Day @ Agritechnica (Hanover, Germany): Tuesday, November 11, 2:00PM CET 18 Q2 2025 results | August 1, 2025
Slide 19: Q2 2025 Unit Performance vs. Q2 2024
Q2 2025 | UNIT PERFORMANCE VS. Q2 2024 NORTH SOUTH EMEA1 APAC1 AMERICA1 AMERICA1 0-140 HP – Small Tractors (7)% Total Industry (7)% 4% 3% 140+ HP – Large Tractors (37)% Combines (23)% 8% (6)% (42)% Light (2)% (3)% 2% (4)% Heavy (10)% 6% (8)% 9% Tractors Combines Light Heavy Company Q2'24 Q3'24 Q4'24
Slide 20: Q2 2025 Industrial Activities Net Sales
Q2 2025 | INDUSTRIAL ACTIVITIES NET SALES Agriculture Construction Industrial Activities $3,248M $773M $4,021M Q2 2024 (17)% YoY (17)% @CC1 (13)% YoY (12)% @CC1 (16)% YoY (16)% @CC1 Q2 2025 By Region By Region By Region as reported as reported as reported NA EMEA SA APAC NA EMEA SA APAC NA EMEA SA A
Slide 21: H1 2025 Industrial Activities Net Sales
H1 2025 | INDUSTRIAL ACTIVITIES NET SALES Agriculture Construction Industrial Activities $5,829M $1,364M $7,193M H1 2024 (20)% YoY (19)% @CC1 (17)% YoY (16)% @CC1 (19)% YoY (18)% @CC1 H1 2025 By Region By Region By Region as reported as reported as reported NA EMEA SA APAC NA EMEA SA APAC NA EMEA SA
Slide 22: Q2 / H1 2025 Financials by Segment
Q2 / H1 2025 | FINANCIALS BY SEGMENT Revenues & Adj. EBIT ($M) Gross Profit Gross Margin Adj. EBIT1 Net Sales Margin1 Q2 25 Q2 24 Q2 25 Q2 24 Q2 25 Q2 24 Q2 25 Q2 24 Q2 25 Q2 24 Agriculture 3,248 3,913 708 954 21.8% 24.4% 263 502 8.1% 12.8% Construction 773 890 121 147 15.7% 16.5% 35 60 4.5% 6.7% El
Slide 23: Q2 / H1 2025 Industrial Activities R&D and CapEx
Q2 / H1 2025 | INDUSTRIAL ACTIVITIES R&D AND CAPEX ($M) Q2 2025 Q2 2024 H1 2025 H1 2024 Agriculture R&D 194 214 357 418 CapEx 73 96 165 179 Total 267 309 522 597 of which Precision Tech 26% 28% 27% 28% Construction R&D 24 23 45 47 CapEx 15 14 26 26 Total 39 38 71 73 Industrial Activities R&D 218 237
Slide 24: Debt Maturity Schedule | Breakdown
DEBT MATURITY SCHEDULE | BREAKDOWN ($B) Outstanding June 30, 2025 2025 2026 2027 2028 2029 Beyond 3.8 Bank Debt 1.2 1.2 0.2 0.3 0.2 0.6 12.1 Capital Market 1.5 2.6 2.8 1.8 2.2 0.1 0.1 Other Debt 0.1 - - - - - 15.9 Cash Portion of Debt Maturities 2.7 3.9 3.1 2.1 2.4 1.7 of which Industrial Activities
Slide 25: Agriculture: Mid-Cycle Margin Profile
AGRICULTURE: MID-CYCLE MARGIN PROFILE 2025 margin profile 2030 margin profile 20% 16-17% ▪ 2025 global industry 18% @ mid-cycle retail demand forecast to CNH Agriculture Adj. EBIT margin 2030E high 16% 2030E low trough at 85-90% of mid-cycle 14% ▪ 2025 underproduction to 12% industry retail demand p
Slide 26: Construction: Mid-Cycle Margin Profile
CONSTRUCTION: MID-CYCLE MARGIN PROFILE 2025 margin profile 2030 margin profile 9% 7-8% @ mid-cycle ▪ 2025 global industry 8% 2030E high CNH Construction Adj. EBIT margin retail demand forecast at 7% 2030E low 90-95% of mid-cycle 6% ▪ 2025 margins impacted 5% by tariff cost impacts 4% 2025E high 3% 2
Slide 27: Reconciliations
RECONCILIATIONS 27
Slide 28: Reconciliation of Net Income to Adj. EBIT of Ind. Activities
RECONCILIATION OF NET INCOME TO ADJ. EBIT OF IND. ACTIVITIES ($M) Q2 2025 Q2 2024 H1 2025 H1 2024 Net Income 217 404 349 773 Less: Consolidated income tax expense (76) (95) (123) (172) Consolidated income before taxes 293 499 472 945 Less: Financial Services Financial Services Net Income 87 91 177 2
Slide 29: Reconciliation of Net Cash from Operating Activities to Free Cash Flow
RECONCILIATION OF NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES TO FREE CASH FLOW OF IND. ACTIVITIES UNDER U.S. GAAP ($M) Q2 2025 Q2 2024 H1 2025 H1 2024 Net cash provided by (used in) Operating Activities 772 379 934 (515) Cash flows from Operating Activities of Financial Services net of elim
Slide 30: Reconciliation of Adj. Net Income and Adj. Income Tax
RECONCILIATION OF ADJ. NET INCOME AND ADJ. INCOME TAX (EXPENSE) BENEFIT TO NET INCOME (LOSS) AND INCOME TAX (EXPENSE) BENEFIT AN D CALCULATION OF ADJ. DILUTED EPS AND ADJ. ETR UNDER U.S. GAAP ($M) Q2 2025 Q2 2024 H1 2025 H1 2024 Net income (loss) 217 404 349 773 Adjustments impacting Income (loss) b
Slide 31: Geographic Information
GEOGRAPHIC INFORMATION The composition of our regions part of the geographic information is as follows: ▪ North America: United States, Canada, and Mexico ▪ Europe, Middle East, and Africa (EMEA): member countries of the European Union, European Free Trade Association, the United Kingdom, Ukraine, B
Slide 32: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES CNH monitors its operations through the use of several non-GAAP financial measures. CNH’s management believes that these non-GAAP financial measures provide useful and relevant information regarding its operating results and enhance the readers’ ability to assess CNH’s fi
Slide 33: Accounting Revision by Quarter
ACCOUNTING REVISION BY QUARTER ($M) Q1’24 Q2’24 H1'24 Q1’24 Q2’24 H1'24 Equity in income of unconsolidated subsidiaries and affiliates Adjusted EBIT of Industrial Activities(1) As reported 77 79 156 As reported 405 536 941 Revision (33) (34) (67) Revision (33) (34) (67) As revised 44 45 89 As revise
Slide 34: Accounting Revision Non-GAAP Reconciliations
ACCOUNTING REVISION NON-GAAP RECONCILIATIONS ($M) ADJ. EBIT FOR INDUSTRIAL ADJ. NET INCOME TO NET INCOME & Q1’24 Q2’24 H1’24 Q1’24 Q2’24 H1’24 ACTIVITIES TO NET INCOME ADJ. DILUTED EPS CALCULATION Net Income (loss) - as reported 402 438 840 Net Income (loss) - as reported 402 438 840 Revision impact
Slide 35: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS investors.cnh.com investor.relations@cnh.com +1 (630) 740 8079 Jason Omerza jason.omerza@cnh.com +39 (345) 605 6218 Federico Pavesi federico.pavesi@cnh.com 35