CNH Industrial N.V. Reports Third Quarter 2026 Results

Consolidated revenues for the third quarter of 2026 were $4.4 billion, approximately flat year over year

Reported Net income was $35 million, including a $156 million non-cash charge to establish a valuation allowance against deferred tax assets; Adjusted Net income(1) was $205 million, compared with $109 million in the prior-year quarter

Third quarter diluted EPS of $0.02 and adjusted diluted EPS(1) of $0.16

Full year guidance updated with expected IEEPA tariff refund impacts net of one-off uses

Announced earlier today an agreement with Kobelco regarding CNH Construction business

Basildon, UK - November 9, 2026 - CNH Industrial N.V. (NYSE: CNH) reported Net income for the three months ended September 30, 2026, of $35 million, or $0.02 per basic and diluted share, compared with Net income of $67 million, or $0.06 per basic and diluted share, for the three months ended September 30, 2025. Adjusted Net income(1)for the third quarter of 2026 was $205 million, compared with $109 million in the third quarter of 2025. The 2026 results include $109 million in pre-tax IEEPA tariff refunds recognized during the quarter.

Consolidated revenues for the third quarter of 2026 were $4.35 billion, and Net Sales of Industrial Activities were $3.68 billion, both essentially in line with the third quarter of 2025.

Net cash provided by operating activities was $686 million, and Free cash flow used in Industrial Activities was $10 million in Q3 2026.

Income tax expense was $204 million ($1 million in Q3 2025) with an effective tax rate (“ETR”) of 89.9% (2.0% in Q3 2025). The adjusted ETR(1) was 20.6% for the third quarter of 2026 (14.0% in Q3 2025). Results for the third quarter of 2026 included a $156 million non-cash valuation allowance charge against Financial Services’ deferred tax assets in Brazil, which adversely impacted reported Net income and the ETR for the quarter.

“The combination of our third quarter results and our agreement with Kobelco regarding our Construction Equipment business reflect clear progress in the execution of our strategy,” said Gerrit Marx, Chief Executive Officer of CNH. “Stronger quality performance, supply chain focus, and operational efficiencies reflect disciplined execution in a challenging market environment, reinforcing our underlying business as we track our 2030 long-term value creation targets. We reinvested approximately 35% of tariff refunds received in the quarter in selective time-limited one-time efforts to clear aged inventory and accelerate our transformation. Our Agriculture segment used almost half of its refunds received in Q3 and will have reinvested over 90% by year end in discrete time-limited priorities. Although current conditions in EMEA and Brazil remain volatile, improving cycle indicators in North America reinforce our confidence in the path ahead.”

Marx continued, “We continue our rigorous execution, prudent production planning, and building a stronger, more competitive CNH for the cycle dynamics ahead. CNH’s agreement with Kobelco follows a deliberate process to strengthen our construction business and sharpen our focus on our agriculture business. The transaction positions CNH as the largest pure-play agriculture machinery OEM, with the ability to invest organically and inorganically as the agriculture industry moves toward recovery.”

In North America, third quarter industry sales volume was down 12% year-over-year for tractors under 140 HP and down 5% for tractors over 140 HP; combines were down 13%. In Europe, Middle East and Africa ("EMEA"), tractor and combine demand were down 4% and 3%, respectively. South America saw tractor and combine demand decline 22% and 19%, respectively. In Asia Pacific, tractor demand decreased 4%, while combine demand increased 76%.

Agriculture net sales decreased 2% to $2.9 billion in the quarter, driven by lower volumes in South America and EMEA, partially offset by growth in Asia Pacific and by favorable price realization.

Agriculture adjusted EBIT increased to $173 million from $137 million in Q3 2025, and adjusted margin increased 140 basis points to 6.0%. The improvement primarily reflects IEEPA tariff refunds recognized during the quarter and better quality-related costs, partially offset by lower volumes in South America and EMEA.

Global industry sales volume for construction equipment increased 13% year-over-year in the third quarter for Heavy equipment and 6% for Light equipment. Aggregated demand increased 10% in North America, 5% in EMEA, 14% in South America, and 10% in Asia Pacific.

Construction net sales increased 5% to $777 million in the quarter, driven by higher volumes in North America, partially offset by lower volumes in South America.

Construction adjusted EBIT increased to $65 million from $14 million in Q3 2025, primarily reflecting the benefit of IEEPA tariff refunds recognized during the quarter and lower SG&A expenses, partially offset by lower volumes in South America.

Financial Services revenues decreased 3% in the quarter, mainly due to lower volumes in South America and North America and lower yields in most regions. The decrease was partially offset by favorable currency translation and higher used equipment sales driven by increased operating lease maturities and early payoffs.

Financial Services recorded a net loss of $77 million, compared with net income of $47 million in Q3 2025. The current quarter results primarily reflected a $156 million non-cash valuation allowance charge against deferred tax assets in Brazil, unfavorable currency translation impacts, and lower volumes in South America and North America, partially offset by lower risk costs in South America. Adjusted Net income, which excludes the valuation allowance charge, increased to $79 million from $46 million in Q3 2025.

The managed portfolio (including unconsolidated joint ventures) was $27.8 billion as of September 30, 2026 (of which retail was 70% and wholesale was 30%), down $0.7 billion compared to September 30, 2025 (down $0.7 billion on a constant currency basis(2)).

As of September 30, 2026, the receivable balance greater than 30 days past due, as a percentage of receivables, was 4.1% (3.5% as of September 30, 2025), due to economic factors impacting farmers, specifically in South America. 

2026 Outlook

CNH is in the process of applying for and receiving refunds of IEEPA tariffs previously paid. The refunds are being recognized as received, and CNH will reinvest nearly all of them into selective and time-limited priorities to accelerate our transformation. CNH forecasts a full year net refund benefit of only $5 million in Agriculture ($32 million in Q3 2026) after reinvesting in some discretionary programs:

• ~$70 million gross refunds ($62 million in Q3 2026)
• ~$50 million reinvested in one-off efforts to clear aged and discontinued equipment inventories ($25 million in Q3 2026)
• ~$15 million acceleration in precision technology R&D capacity increase ($5 million in Q3 2026)
  
   

We forecast a full year $30 million net refund benefit in Construction ($39 million in Q3 2026): 

• ~$50 million gross refunds ($47 million in Q3 2026)
• ~$20 million reinvested in discretionary programs to promote connected equipment and to clear aged inventories ($8 million in Q3 2026)
  
   

In addition to reinvesting tariff refunds, CNH continues to execute a disciplined operating strategy in response to challenging market conditions and an uncertain 2027 outlook. We remain focused on maintaining appropriate production levels, reducing channel inventory in partnership with dealers, improving cost efficiency, and responding proactively to changes in global trade policies. As the agriculture industry approaches the end of this cyclical trough, we are positioning the business for the eventual recovery through supply chain and manufacturing preparedness. Overall, we expect the combined effect of tariff refunds, associated reinvestments, and prevailing market conditions to have only a modest net impact on our previously communicated guidance ranges.

Consequently, we are updating our 2026 outlook as follows: 

• Agriculture segment net sales about flat year-over-year, including +2% currency translation effects (unchanged)
• Agriculture segment adjusted EBIT margin between 5.1% and 5.4% (previously between 5.0% and 5.5%)
• Construction segment net sales up between 8% to 10% year-over-year, including +1% currency translation effects (previously between 5% and 10% with 2% currency translation)
• Construction segment adjusted EBIT margin between 2.0% and 2.3% (previously between 1.8% and 2.3%)
• Free Cash Flow of Industrial Activities(3) between $300 million and $450 million (previously between $200 million and $400 million)
• Adjusted diluted EPS(3) between $0.44 and $0.48 (previously between $0.41 and $0.46)
   

In a separate press release today, CNH announced an agreement with Kobelco Construction Machinery Co., Ltd., a wholly owned subsidiary of Kobe Steel, Ltd., to establish CNH’s Construction Equipment business as a joint venture with Kobelco Construction Machinery (“Kobelco”) under Kobelco’s majority ownership. More information about the transaction is available at investors.cnh.com.

Notes

CNH reports quarterly and annual consolidated financial results under U.S. GAAP and annual consolidated financial results under EU-IFRS. The tables and discussion related to the financial results of the Company and its segments shown in this press release are prepared in accordance with U.S. GAAP.

The following applies to the information throughout this release:

• See tables later in this release for the reconciliations of the non-GAAP financial measures to the most comparable financial measures calculated in accordance with U.S. generally accepted accounting principles (“GAAP”).
• The consolidated financial statements within this release should be read in conjunction with the Company’s Audited Consolidated Financial Statements and Notes for the year ended December 31, 2025, included in the Annual Report on Form 10-K. These Consolidated Statements of Operations represent the consolidation of all CNH Industrial N.V. subsidiaries.
• Industrial Activities represents the enterprise without Financial Services. Industrial Activities include the Company's Agriculture, Construction, and other corporate assets, liabilities, revenues and expenses not reflected within Financial Services.
• Certain financial information in this report has been presented by geographic area. Our geographical regions are: (a) North America; (b) EMEA; (c) South America and (d) Asia Pacific. The geographic designations have the following meanings:
  • North America: United States, Canada, and Mexico;
  • EMEA: member countries of the European Union, European Free Trade Association, the United Kingdom, Ukraine and Balkans, Türkiye, Uzbekistan, Pakistan, the African continent, and the Middle East;
  • South America: Central and South America, and the Caribbean Islands; and
  • Asia Pacific: Continental Asia (including the India subcontinent), Indonesia, Japan and Oceania.
    
     

Non-GAAP Financial Information

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 financial performance and financial position. Management uses these non-GAAP measures to identify operational trends, as well as make decisions regarding future spending, resource allocations and other operational decisions as they provide additional transparency with respect to our core operations. These non-GAAP financial measures have no standardized meaning under U.S. GAAP and are unlikely to be comparable to other similarly titled measures used by other companies and are not intended to be substitutes for measures of financial performance and financial position as prepared in accordance with U.S. GAAP.

CNH’s non-GAAP financial measures are defined as follows:

• Adjusted EBIT of Industrial Activities: is defined as Net income (loss) before the following items: Income tax benefit (expense), Financial Services’ results, Industrial Activities’ Interest income (expense), net of interest income and eliminations, Foreign exchange (gains) losses, net, Finance and non-service component of Pension and other postemployment benefit costs, Restructuring and other transformation expenses, and discrete items. In particular, discrete items are specifically disclosed items that management considers rare or non-recurring events that are infrequent in nature and not reflective of on-going operational activities.
• Adjusted EBIT Margin of Industrial Activities: is computed by dividing Adjusted EBIT of Industrial Activities by Net Sales of Industrial Activities.
• Adjusted Net income (Loss): is defined as Net income (loss), less Restructuring and other transformation charges and discrete items, after tax.
• Adjusted diluted EPS: is computed by dividing Adjusted Net Income (loss) attributable to CNH Industrial N.V. by a weighted-average number of common shares outstanding during the period that takes into consideration potential common shares outstanding deriving from the CNH share-based payment awards, when inclusion is not anti-dilutive. When we provide guidance for adjusted diluted EPS, we do not provide guidance on an earnings per share basis because the GAAP measure will include potentially significant items that have not yet occurred and are difficult to predict with reasonable certainty prior to year-end.
• Adjusted Income tax benefit (expense): is defined as Income tax benefit (expense) less the tax effect of Restructuring and other transformation expenses and discrete items, and discrete tax charges or benefits.
• Adjusted effective tax rate ("Adjusted ETR"): is computed by dividing a) Adjusted income tax benefit (expense) by b) Income (loss) before income taxes and equity income (loss) from unconsolidated affiliates, less Restructuring and other transformation expenses and discrete items.
• Net Cash (Debt) and Net Cash (Debt) of Industrial Activities: Net Cash (Debt) is defined as Total debt less Cash and cash equivalents, Restricted cash, Intersegment notes receivable, Other current financial assets (primarily current securities, short-term deposits and investments towards high-credit rating counterparties) and Derivatives. CNH provides the reconciliation of Net Cash (Debt) to Total (Debt), which is the most directly comparable measure included in the consolidated balance sheets. Due to different sources of cash flows used for the repayment of the debt between Industrial Activities and Financial Services (by cash from operations for Industrial Activities and by collection of financing receivables for Financial Services), management separately evaluates the cash flow performance of Industrial Activities using Net Cash (Debt) of Industrial Activities.
• Free cash flow of Industrial Activities ("Industrial Free Cash Flow"): refers to Industrial Activities only, and is computed as Net Cash flows provided by (used in) operating activities less: Net cash flow from operating activities of Financial Services, net of eliminations; Changes in derivatives of Industrial Activities and other, Investments of Industrial Activities in assets sold under operating leases, Investments in property, plant and equipment and intangible assets of Industrial Activities, and Other changes.
• Change at C.C.: CNH discusses the fluctuations in revenues on a constant currency basis by applying the prior year average exchange rates to current period’s revenues expressed in local currency in order to eliminate the impact of foreign exchange rate fluctuations.