CNH Industrial Reports Significant Revenue Decline in Q2 and First Half of 2025

CNH Industrial N.V. reported a significant decline in its financial performance for the second quarter and first half of 2025, as detailed in its latest 10-Q filing. For the three months ended June 30, 2025, the company generated total revenues of $4.711 billion, a decrease of 14.2% from $5.488 billion in the same period of 2024. Net sales fell to $4.021 billion, down 16.3% year-over-year, primarily due to lower shipment volumes driven by decreased industry demand and ongoing dealer destocking. The company's net income for the quarter was $217 million, a decline from $404 million in the prior year, reflecting the challenging market conditions.

In the first half of 2025, CNH Industrial's total revenues were $8.539 billion, down 17.1% from $10.306 billion in the first half of 2024. Net sales for this period decreased by 19.5% to $7.193 billion. The decline in revenues was attributed to similar factors affecting the second quarter, including reduced shipment volumes and a challenging economic environment. The company reported a net income of $349 million for the first half, compared to $773 million in the previous year.

Operationally, CNH Industrial's Agriculture segment saw net sales drop to $3.248 billion in the second quarter, down 17.0% from $3.913 billion in 2024, while the Construction segment's sales fell to $773 million, a decrease of 13.1%. The Financial Services segment reported revenues of $685 million, a slight decline of 0.3%. The company also noted an increase in selling, general, and administrative expenses, which rose to $478 million in the second quarter, reflecting higher credit risk provisions in the Financial Services segment.

In terms of strategic developments, CNH Industrial continues to focus on optimizing its operations amid challenging market conditions. The company has engaged consulting professionals to improve its inventory management processes and is planning full-physical inventory counts to enhance its internal controls. As of June 30, 2025, CNH Industrial's total assets stood at $43.687 billion, with total liabilities of $35.853 billion, resulting in total equity of $7.779 billion. The company maintains a strong liquidity position, with cash and cash equivalents totaling $2.512 billion.

Looking ahead, CNH Industrial anticipates continued challenges due to geopolitical events, fluctuating commodity prices, and changing market demands. The company is closely monitoring these factors and is committed to implementing strategic initiatives to navigate the evolving landscape. The outlook remains cautious, with expectations of ongoing volatility in the global economy impacting future performance.