Consolidated Revenue Stability
Consolidated revenues of $3.8 billion were flat year-over-year, including ~4% positive currency translation, in line with company guidance.
CNH Industrial
· CNH
April 30th, 2026
Summary
- Earnings Call Date:
- 2026-04-30
- Change Since:
- -2.83%
- Next Earnings Date:
- 2026-07-24
Earnings Call Sentiment
NeutralThe call presented a mixed picture: management executed disciplined operational moves (inventory control, production discipline, manufacturing cost projects, tech rollouts) and reaffirmed guidance, with solid order coverage and regional product momentum (notably EMEA). However, significant headwinds — including tariff changes (materially increasing construction margin pressure), steep weakness in South America (-28% sales), compressed agricultural margins (ag EBIT margin down to 1%), an industrial EBIT loss of $45M, a large Q1 industrial cash outflow ($569M), and Financial Services credit strain in Brazil — materially offset many positives. Given the comparable weight of constructive operational progress and persistent, material macro and tariff-driven challenges, the overall tone is balanced but cautious.
Company Guidance
Management reaffirmed 2026 guidance: industrial net sales flat to down 4% y/y, industrial EBIT margin 2.5–3.5%, industrial free cash flow $150–$350M and adjusted EPS $0.35–$0.45 (assuming ~1.25B average shares). Agriculture: net sales roughly flat to down 5% (currency +2%, pricing +1.5–2%), EBIT margin 4.5–5.5% and a tariff headwind of ~210–220 bps; Construction: net sales ~flat (currency +1%, pricing +2%), EBIT margin 1–2% with a tariff impact now ~600 bps. Near-term color: Q2 ag sales ~flat y/y, Q2 construction sales up mid-teens (Q2 CE expected above breakeven), Financial Services Q2 net income down $20–25M y/y. Company targets dealer destocking of ~$500M this year; reminded investors of Q1 metrics (consolidated revenues $3.8B, ag Q1 sales ~$2.6B, Q1 adjusted EPS $0.01, industrial FCF outflow $569M).
Agriculture Sales and Regional Strength
Agriculture Q1 net sales ~ $2.6 billion, up 1% YoY (including +4% currency). Strong EMEA performance (+20% YoY) and modest North America resilience (down 3% YoY).
Disciplined Inventory and Production Management
Production was intentionally kept low to manage channel inventories; dealer inventories were flat in Q1 by design with a plan to reduce dealer inventories by approximately $500 million during the year.
Operational Improvements and Cost Savings
About 1,400 manufacturing projects executed last year produced $45 million of savings; example automation (fiber laser) delivered a 52% throughput improvement and quality benefits at a Fargo plant.
Digital/Tech Deployment at Dealers
AI-powered 'tech assist' rolled out at ~70% of dealer locations to accelerate diagnostics and parts identification, advancing the iron-tech integration strategy.
Order Book and Near-Term Demand Visibility
Q2 is fully booked and the company reports healthy Q3 coverage while remaining disciplined on production loading; agriculture net sales expected to be ~flat in Q2 year-over-year.
Reaffirmed Full-Year Guidance
Reaffirmed 2026 industrial net sales guidance of flat to down 4% and industrial EBIT margin guidance of 2.5%–3.5%; industrial free cash flow target $150M–$350M and adjusted EPS guidance $0.35–$0.45.
Share Repurchase Activity
Management announced repurchases during the first 3 months of 2026 (stated in the call as $26 billion repurchased at an average price of ~$10.70 per share).
Operator
Good morning, and welcome to the CNH 2026 First Quarter Results Conference Call. [Operator Instructions] I will now hand the call over to Jason Omerza, Vice President of Investor Relations. Please go ahead.
Jason Omerza
Thank you, Warren, and good morning, everyone. We would like to welcome you to CNH's first quarter earnings call for the period ending March 31, 2026. This slide webcast is copyrighted by CNH and any recording, transmission or other use of any portion of it without the written consent of CNH is strictly prohibited. Hosting today's call are CNH CEO, Gerrit Marx; and CFO, Jim Nickolas. They will reference the material available for download from our website. Please note that any forward-looking statements that we make during today's call are subject to the risks and uncertainties mentioned in the safe harbor statement included in the presentation material. Additional information pertaining to factors that could cause actual results to differ materially is contained in the company's most recent annual report on Form 10-K as well as other periodic reports and filings with the U.S. Securities and Exchange Commission.
Our presentation includes certain non-GAAP financial measures. Additional information, including reconciliations to the most directly comparable U.S. GAAP financial measures is included in the presentation material. I will now turn the call over to Gerrit.
Gerrit Marx
Thank you, Jason, and welcome to everyone joining the meeting. We are calling from Sioux Falls, South Dakota, where we just hosted our Board meeting. Sioux Falls is one of our CNH tech hubs, which we acquired th...
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