Basildon, United Kingdom - CNH Industrial N.V., an agricultural and construction machinery manufacturer, has released its financial results for the first quarter of 2025, reporting a significant decline in net income, which reached $132 million, down from $369 million in Q1 2024. Consolidated revenues for the period were $3.83 billion, marking a 21% drop compared to the same quarter last year, while Industrial Activities net sales fell by 23%, totaling $3.17 billion.
Mr. Gerrit Marx, CEO of CNH, said, "Our focus on reducing dealer inventories and managing costs has positioned us to weather the current macroeconomic uncertainties. With our balanced global exposure, we continue to deliver excellent products and services to our customers."
CNH's net sales fell due to weaker demand and dealer destocking. Adjusted net income dropped to $132 million from $388 million in Q1 2024. Operating cash flow improved to $162 million, while free cash flow for Industrial Activities was negative $567 million, a $642 million year-over-year improvement.
In North America, the first quarter saw a 12% drop in tractor sales under 140 HP and a 24% decrease for tractors over 140 HP. Combine sales were down by 51%. Europe, Middle East, and Africa (EMEA) also witnessed a decline, with tractor and combine demand falling by 23% and 34%, respectively. However, South America saw a positive shift, with tractor demand up 10% and combine sales rising by 1%. In Asia Pacific, tractor sales grew by 12%, while combine sales dropped by 12%.
Agriculture net sales dropped by 23%, totaling $2.58 billion for the quarter, as a result of lower shipment volumes and dealer destocking across all regions. Adjusted EBIT for Agriculture decreased to $139 million, compared to $388 million in Q1 2024, reflecting the impact of lower shipment volumes, although cost management measures partially offset these declines.
In Q1 2025, CNH's Construction segment saw a 22% drop in net sales to $591 million. Despite a 2% rise in heavy equipment demand, light equipment demand fell 6%. North America declined 11%, while Asia Pacific grew 7%. Adjusted EBIT dropped to $14 million from $51 million due to lower shipments and weak pricing.
CNH's Financial Services revenue dropped 5%, impacted by currency translation, lower yields in South America, and fewer used equipment sales. Net income decreased by $28 million to $90 million, mainly due to higher risk costs in the Americas and a higher effective tax rate.
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