Cnh Industrial N.v. · NYSE:CNH
Cnh Industrial — Q1 2025 Earnings Presentation
36 slides from Cnh Industrial's earnings presentation, May 1, 2025
Slide 1: Q1 2025 Results Review
Q1 2025 RESULTS REVIEW May 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: Q1 2025 Main Achievements
Q1 2025 | MAIN ACHIEVEMENTS Ag dealer inventory down another ~$100M1, in line with expectations Price/cost positive Case IH SenseApply & New Holland IntelliSense sprayer automation launched Leadership team transitions Focus on operational excellence (1) ~$100M down vs Q4 2024; ~$1B down vs Q1 2024;
Slide 4: Q1 2025 Results
Q1 2025 | RESULTS Consolidated Adj. EBIT1 Net Income Diluted EPS Revenues Industrial Activities $3.8B $101M $132M $0.10 (21)% (73)% (64)% $(0.19) Net Sales Adj. EBIT%1 Adjusted Adjusted Industrial Activities Industrial Activities Net Income1 Diluted EPS1 $3.2B 3.2% $132M $0.10 (23)% (580) bps (66)%
Slide 5: Q1 2025 Business Highlights
Q1 2025 | BUSINESS HIGHLIGHTS Continued retail demand softness Production hours down 26% vs Q1 2024 and down 41% vs Q1 2023 Supporting dealers with new & used sales incentives Sound Financial Services result despite market downturn Tariff announcements driving uncertainty across the board 5 Q1 2025
Slide 6: Q1 2025 Financial Highlights
Q1 2025 | FINANCIAL HIGHLIGHTS ($M) (23)% (66)% $(0.20) +642 4,131 388 $0.30 3,172 (567) 132 $0.10 (1,209) Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Net Sales Adjusted Adjusted Free Cash Flow1 Industrial Activities Net Income1 Diluted EPS1 Industrial Activities Δ YoY (1) Non-GA
Slide 7: Q1 2025 Agriculture
Q1 2025 | AGRICULTURE ($M) Net Sales Gross Margin1 (23)% (380) bps 3,373 23.8% 2,581 20.0% Q1 2024 Q1 2025 Δ YoY Q1 2024 Q1 2025 Adjusted EBIT 11.5% 388 388 38 5.4% 39 19 139 (37) (282) (26) 139 Vol. Pricing, Prod. FX & Q1 2024 SG&A R&D Q1 2025 & Mix Net Cost Other (1) Gross Margin calculated as Gro
Slide 8: Q1 2025 Construction
Q1 2025 | CONSTRUCTION ($M) Net Sales Gross Margin1 (22)% (250) bps 758 17.4% 591 14.9% Q1 2024 Q1 2025 Δ YoY Q1 2024 Q1 2025 Adjusted EBIT 6.7% 51 51 4 2 14 2.4% 8 (38) (3) 14 (10) Vol. Pricing, Prod. FX & Q1 2024 SG&A R&D Q1 2025 & Mix Net Cost Other (1) Gross Margin calculated as Gross Profit div
Slide 9: Q1 2025 Financial Services
Q1 2025 | FINANCIAL SERVICES Net Income Profitability Ratios ($M) 4.0% 3.0% 3.2% 3.1% Q1 2024 118 3.0% 1.8% 1.9% 1.7% 2.0% Q1 2025 90 1.0% Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Gross Margin / Avg. Assets on Book Return on Assets1 Managed Portfolio2 & Retail Originations2 Delinquencie
Slide 10: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES ORGANIC GROWTH & MARGIN EXPANSION Support sales & margin growth through investments in commercial actions, operational efficiencies, and quality improvements BALANCE SHEET STRENGTH & STRONG CREDIT RATING Sustain healthy liquidity levels and maintain investment grade cre
Slide 11: CNH Sourcing for Finished Goods Sold in the U.S.
CNH SOURCING FOR FINISHED GOODS SOLD IN THE U.S. Based on 2024 Industrial Activities actual results, dollar basis ~2/3 produced in U.S. plants ~1/3 imported HHP Tractors Racine, WI Component part sourcing Europe (excl. Turkey & U.K.), 13% for U.S. plants ◼ small & medium tractors, harvesters, constr
Slide 12: 2025 Tariff Considerations on Agriculture
2025 TARIFF CONSIDERATIONS ON AGRICULTURE CNH Impact Farmer Impact Ag Industry Impact • Finished goods imports from • Demand for U.S. commodity • U.S. cash crop market was Canada are USMCA compliant exports may decrease already expected to hit trough levels in 2025 • Steel used by U.S. plants is • F
Slide 13: Managing Through Uncertainty – Scenario Planning
MANAGING THROUGH UNCERTAINTY – SCENARIO PLANNING Original Updated Guidance – Updated Guidance – Macro Impact Assumptions Lower End Upper End 25% steel 25% steel not 145% China 145% China Announced tariff levels – Q2 meaningful 25% Mex/Can (non-USMCA) 25% Mex/Can (non-USMCA) 10% all other countries 1
Slide 14: 2025 Outlook – Agriculture
2025 OUTLOOK – AGRICULTURE Total Industry Retail Demand Unit Forecast1 North South EMEA APAC America America LHP Tractors (15)% – (5)% (10)% – (5)% ~flat (5)% – flat HHP Tractors (35)% – (25)% Combines (30)% – (20)% ~flat ~flat (10)% – (5)% Total Industry Volume % change FY 2025 vs. FY 2024 reflecti
Slide 15: 2025 Outlook – Construction
2025 OUTLOOK – CONSTRUCTION Total Industry Retail Demand Unit Forecast1 North South EMEA APAC America America Light (15)% – (5)% (10)% – (5)% flat – 5% (10)% – (5)% Heavy (15)% – (5)% (5)% – flat ~flat (5)% – flat Total Industry Volume % change FY 2025 vs. FY 2024 reflecting the aggregate for key ma
Slide 16: 2025 Outlook – Financial Targets
2025 OUTLOOK – FINANCIAL TARGETS Industrial Activities Previous Current Net Sales1 (17)% - (12)% (19)% - (11)% Adj. EBIT margin2 6.0% - 7.0% 4.5% - 6.5% Free Cash Flow2 $0.2B - $0.5B $0.1B - $0.5B Company Adj. Diluted EPS2 $0.65 - $0.75 $0.50 - $0.70 Significant uncertainties related to global trade
Slide 17: 2025 Priorities & Outlook
2025 PRIORITIES & OUTLOOK Carefully monitoring tariff and trade negotiations Low production levels will continue at least through Q2 Diligent focus on quality and customer service Continued investment in integrated iron + tech products Sustained efforts on manufacturing and sourcing efficiencies 17
Slide 18: Investor Day, May 8, 2025, New York Stock Exchange
May 8, 2025 9:00 a.m. to noon ET New York Stock Exchange Speaker Title Topic Suzanne Heywood Chair Welcome Gerrit Marx Chief Executive Officer CNH Overview Scott Harris President, North America Ag Product Jay Schroeder Chief Technical Officer Ag Precision Stefano Pampalone Chief Commercial Officer A
Slide 19: Appendix
APPENDIX a a
Slide 20: Upcoming Events
UPCOMING EVENTS Investor Day 2025: Thursday, May 8, 9AM ET Annual General Meeting of Shareholders: Monday, May 12, 3PM CEST (9AM ET) Q2 2025 earnings call: Friday, August 1, 9AM ET 20 Q1 2025 results review | May 1, 2025
Slide 21: Unit Performance vs. Q1 2024
Q1 2025 | UNIT PERFORMANCE VS. Q1 2024 NORTH SOUTH EMEA1 APAC1 AMERICA1 AMERICA1 0-140 HP – Small Tractors (12)% (23)% 10% 12% 140+ HP – Large Tractors (24)% Total Industry Combines (51)% (34)% 1% (12)% Light (10)% (10)% 5% 1% Heavy (12)% (8)% (6)% 14% Tractors Combines Light Heavy Company Q1'24 Q2'
Slide 22: Q1 2025 Financial Summary
Q1 2025 | FINANCIAL SUMMARY ($M) Q1 2025 Q1 2024 Δ YoY U.S. GAAP Revenues 3,828 4,818 (21)% Net Sales | Industrial Activities 3,172 4,131 (23)% Net Income 132 369 (64)% Diluted EPS $0.10 $0.29 $(0.19) Non-GAAP1 Net Sales | Industrial Activities at constant currency 3,283 4,131 (21)% Adjusted EBIT |
Slide 23: Q1 2025 Industrial Activities Net Sales
Q1 2025 | INDUSTRIAL ACTIVITIES NET SALES Agriculture Construction Industrial Activities1 $2,581M $591M $3,172M Q1 2024 (23)% YoY (21)% @CC2 (22)% YoY (20)% @CC2 (23)% YoY (21)% @CC2 Q1 2025 By Region By Region By Region as reported as reported as reported NA EMEA SA APAC NA EMEA SA APAC NA EMEA SA
Slide 24: Q1 2025 Financials by Segment
Q1 2025 | FINANCIALS BY SEGMENT ($M) Revenues & Adj. EBIT Gross Profit Gross Margin Adj. EBIT1 Net Sales Margin1 Q1 25 Q1 24 Q1 25 Q1 24 Q1 25 Q1 24 Q1 25 Q1 24 Q1 25 Q1 24 Agriculture 2,581 3,373 515 804 20.0% 23.8% 139 388 5.4% 11.5% Construction 591 758 88 132 14.9% 17.4% 14 51 2.4% 6.7% Eliminat
Slide 25: Q1 2025 Industrial Activities CapEx and R&D
Q1 2025 | INDUSTRIAL ACTIVITIES CAPEX AND R&D ($M) Q1 2025 Q1 2024 Investments in property, plant and equipment, and intangible assets 103 96 Breakdown by Category New Product & Technology 51% 46% Maintenance & Other 46% 50% Industrial Capacity Expansion & LT Investments 3% 4% Breakdown by Segment A
Slide 26: Debt Maturity Schedule | Breakdown
DEBT MATURITY SCHEDULE | BREAKDOWN ($B) Outstanding Mar. 31, 2025 2025 2026 2027 2028 2029 Beyond 3.1 Bank Debt 1.4 0.4 0.2 0.2 0.3 0.6 11.8 Capital Market 2.4 2.6 2.6 1.6 1.7 0.9 0.1 Other Debt 0.1 - - - - - 15.0 Cash Portion of Debt Maturities 3.9 2.9 2.8 1.8 2.0 1.5 of which Industrial Activities
Slide 27: Reconciliations
RECONCILIATIONS a a
Slide 28: Reconciliation of Net Income to Adj. EBIT of Industrial Activities
RECONCILIATION OF NET INCOME TO ADJ. EBIT OF INDUSTRIAL ACTIVITI ES ($M) Q1 2025 Q1 2024 Net Income 132 369 Less: Consolidated income tax expense (47) (77) Consolidated income before taxes 179 446 Less: Financial Services Financial Services Net Income 90 118 Financial Services Income Taxes 28 19 Add
Slide 29: Reconciliation of Net Cash from Operating Activities to Free Cash Flow
RECONCILIATION OF NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES TO FREE CASH FLOW OF IND. ACTIVITIES UNDER U.S. GAAP ($M) Q1 2025 Q1 2024 Net cash provided by (used in) Operating Activities 162 (894) Cash flows from Operating Activities of Financial Services net of eliminations (638) (198) Cha
Slide 30: Reconciliation of Adj. Net Income and Adj. Income Tax to Net Income
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 ($M) Q1 2025 Q1 2024 Net income (loss) 132 369 Adjustments impacting Income (loss) before income tax (expens
Slide 31: Geographic Information
GEOGRAPHIC INFORMATION The composition of our regions part of the geographic information is as follows: ▪ North America: United States, Canada, and Mexico ▪ Europe, Middle East, and Africa (EMEA): member countries of the European Union, European Free Trade Association, the United Kingdom, Ukraine, B
Slide 32: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES CNH monitors its operations through the use of several non-GAAP financial measures. CNH’s management believes that these non-GAAP financial measures provide useful and relevant information regarding its operating results and enhance the readers’ ability to assess CNH’s fi
Slide 33: Accounting Revision
ACCOUNTING REVISION a a
Slide 34: Accounting Revision by Quarter
ACCOUNTING REVISION BY QUARTER Q1’24 Q2’24 H1'24 Q1’24 Q2’24 H1'24 ($M) 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 35: 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 36: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS investor.relations@cnh.com Jason Omerza +1 (630) 740 8079 | jason.omerza@cnh.com Federico Pavesi +39 (345) 605 6218 | federico.pavesi@cnh.com investors.cnh.com