Original equipment manufacturer (OEM) CNH Industrial is preparing for a “trough year” of sluggish machinery sales by reducing dealer inventories, as the company eyes a rebound in 2027, as the company shared in its fiscal results for its 2025 fourth quarter (Q4) and full year (FY), ending Dec. 31.
CNH experienced softness across its agriculture business in the fourth quarter across most of its geographies. The OEM’s North American business registered a 31% year-over-year volume decline in tractors over 140 horsepower (HP), a 14% drop for its tractors under 140 HP, and a 16% decline in combines.
Additionally, tractor demand dropped 8% in Europe, the Middle East, and Africa, but combines rose 40% in the region. In South America, volumes for tractors and combines declined 8% and 39%, respectively. CNH increased tractor and combine volumes in Asia Pacific by 19% and 10%, respectively.
Per its 2026 guidance, CNH estimates that its agriculture business net sales will be down 5% and flat year-over-year, including a positive 2% currency effect, and an adjusted EBIT margin of 4.5-5.5%. Trouble in the ag economy, including tariffs, is dragging demand for machinery down, but the OEM expects agricultural equipment sales growth to resume in 2027.
“We continued reducing dealer inventories, advanced our Quality and Operational Excellence initiatives, and introduced products that directly address the evolving needs of farmers and builders. Our teams executed with discipline, focusing on what we can control while supporting our customers through dynamic economic conditions,” Gerrit Marx, CEO at CNH, shared in the financial release.
He added, “As we move into 2026, we remain committed to prudent production planning, purposeful innovation, and delivering superior iron and technology integration. In this industry trough year, while markets are still moving slowly, CNH is moving fast in its transformation and engagement of exceptional colleagues to deliver on our ambitious commitments.”
CNH’s FY 2025, Q4 by the numbers
CNH registered $18.10 billion in revenue, with net sales of industrial activities totaling 15.35 billion, down 9% and 10% year-over-year, respectively, for FY 2025. Net income dropped from $1.259 billion in 2024 to $505 million in 2025.
CNH Q4 net income came in at $89 million, compared to adjusted net income of $246 million. Adjustments for the quarter included a $123 million non-cash pretax impairment charge associated with acquiring in-process R&D from the OEM’s acquisition of precision agriculture company Raven in 2021 and a $62 million investment in Monarch Tractor and other minority holdings, the company stated.
CNH stock rose slightly on the Wall Street beat, closing the day at $13.09, up roughly 2.67% for the day. OEM competitor John Deere is set to release its first quarter 2026 results two days after CNH’s results on Feb. 19.
