CNH Industrial Reports 20.5% Revenue Decline in Q1 2025

CNH Industrial N.V. reported a significant decline in financial performance for the first quarter of 2025, with total revenues of $3.828 billion, down 20.5% from $4.818 billion in the same period last year. The company's net sales also fell by 23.2% to $3.172 billion, primarily due to decreased shipment volumes driven by lower industry demand and dealer destocking. The company's net income for the quarter was $132 million, a decrease from $369 million in the prior year, reflecting a net income attributable to CNH Industrial N.V. of $131 million compared to $368 million in 2024.

The company's cost of goods sold decreased to $2.569 billion from $3.195 billion, but as a percentage of net sales, it increased to 81.0% from 77.3%, indicating pressure on margins due to lower production volumes. Selling, general, and administrative expenses were reduced to $386 million from $411 million, attributed to lower labor costs and a restructuring program. Research and development expenses also decreased to $184 million from $228 million. Restructuring expenses were significantly lower at $6 million compared to $31 million in the previous year.

In terms of operational metrics, CNH's Agriculture segment reported net sales of $2.581 billion, down 23.5% year-over-year, while the Construction segment saw a 22.0% decline in net sales to $591 million. The Financial Services segment's revenues decreased by 5.0% to $651 million, primarily due to lower yields and used equipment sales. The company’s Adjusted EBIT for Industrial Activities was $101 million, down from $372 million, reflecting the impact of reduced shipment volumes and unfavorable product mix.

Geographically, the Agriculture segment experienced declines across all regions, with North America down 27.2% and Europe, Middle East, and Africa down 26.7%. The Construction segment also faced declines, particularly in North America, where sales fell by 26.7%. The company reported a total debt of $26.010 billion as of March 31, 2025, a decrease from $26.882 billion at the end of 2024, with cash and cash equivalents at $1.695 billion, down from $3.191 billion.

Looking ahead, CNH Industrial anticipates continued challenges due to global economic conditions, including geopolitical events and fluctuating commodity prices. The company is focused on cash preservation and leveraging its access to funding to maintain financial strength. Management is also taking steps to address a material weakness in internal controls related to inventory management, which they believe could impact financial reporting if not remediated effectively.