CNH Industrial’s latest Q3 2025 results triggered a sharp sell-off on the New York Stock Exchange, with shares tumbling more than 11% in premarket trading. The agricultural and construction equipment giant reported a 64% drop in adjusted earnings per share to $0.08 – below analyst expectations of $0.13. Revenues fell 5% year-on-year to $4.4 billion, though this modestly beat forecasts of $4.22 billion.
The company also revised its full-year adjusted earnings guidance downward to a range of $0.44–$0.50 per share, missing both its previous outlook and the analyst consensus of $0.59.
OEMs feel the strain as farmers delay purchases
The results reflect broader headwinds facing the global OEM sector. Weak farm income, high interest rates, and elevated input costs have led many farmers to postpone equipment purchases, forcing manufacturers like CNH and John Deere to cut production and aggressively reduce dealer inventories.
CNH’s Industrial Activities segment saw net sales fall 7% in Q3, driven by soft demand and inventory management efforts. The company also flagged ongoing trade tensions and tariff risks, particularly the August 2025 expansion of U.S. steel and aluminium tariffs, which have added pressure to margins.
While CNH has taken steps to mitigate these impacts – such as sourcing alternatives, consuming existing inventories, and adjusting pricing – its near-term profitability continues to be affected as it shares tariff costs with customers.
2025: A potential market trough?
Despite the challenging environment, some market participants believe 2025 may represent a cyclical bottom for the OEM sector. Analysts point to emerging technologies, policy support, and long-term structural demand as reasons for cautious optimism.
CNH CEO Gerrit Marx echoed this sentiment, stating: “While the current trade environment remains challenging for our farmers and builders, CNH continues to take decisive actions to navigate near-term headwinds.
“We are maintaining disciplined production levels, reducing channel inventories, investing in technology, and driving operational excellence.
He added that CNH remains committed to innovation and long-term strategic goals, citing recent product launches and industry recognition as signs of resilience. He said: “I am confident that the steps we are taking will position CNH for renewed growth and success as market conditions improve.”
For CNH and its peers, 2025 may be a year of transition: painful in the short term, but potentially foundational for future growth.
