CNH Industrial N.V. (CNH)
SIC breadcrumb: Manufacturing > Industrial And Commercial Machinery And Computer Equipment > SIC 3531 Construction Machinery & Equip
SEC company page: https://www.sec.gov/edgar/browse/?CIK=1567094. Latest filing source: 0001567094-26-000006.
Informational only - descriptive public-record data, not investment advice.
Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
|---|---|---|---|---|
| Revenue | 18,095,000,000 | USD | 2025 | 2026-02-26 |
| Net income | 510,000,000 | USD | 2025 | 2026-02-26 |
| Assets | 42,747,000,000 | USD | 2025 | 2026-02-26 |
Financials
Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-26. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001567094.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.
| Metric | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|
| Revenue | 14,779,000,000 | 19,496,000,000 | 23,551,000,000 | 24,687,000,000 | 19,836,000,000 | 18,095,000,000 | |
| Net income | -493,000,000 | 1,723,000,000 | 2,029,000,000 | 2,275,000,000 | 1,246,000,000 | 510,000,000 | |
| Diluted EPS | -0.36 | 1.27 | 1.49 | 1.69 | 0.99 | 0.41 | |
| Operating cash flow | 5,529,000,000 | 4,082,000,000 | 557,000,000 | 907,000,000 | 1,968,000,000 | 2,538,000,000 | |
| Dividends paid | 8,000,000 | 188,000,000 | 423,000,000 | 538,000,000 | 607,000,000 | 333,000,000 | |
| Assets | 49,416,000,000 | 39,381,000,000 | 46,267,000,000 | 42,933,000,000 | 42,747,000,000 | ||
| Liabilities | 42,563,000,000 | 32,405,000,000 | 38,117,000,000 | 35,165,000,000 | 34,922,000,000 | ||
| Stockholders' equity | 6,121,000,000 | 4,989,000,000 | 6,808,000,000 | 6,927,000,000 | 8,096,000,000 | 7,713,000,000 | 7,772,000,000 |
| Cash and cash equivalents | 5,044,000,000 | 4,376,000,000 | 4,322,000,000 | 3,191,000,000 | 2,578,000,000 |
Ratios
| Metric | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|
| Net margin | -3.34% | 8.84% | 8.62% | 9.22% | 6.28% | 2.82% | |
| Return on equity | -9.88% | 25.31% | 29.29% | 28.10% | 16.15% | 6.56% | |
| Return on assets | 3.49% | 5.15% | 4.92% | 2.90% | 1.19% | ||
| Liabilities / equity | 6.25 | 4.68 | 4.71 | 4.56 | 4.49 |
Financial Charts
Quarterly
Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-04-30. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001567094.json.
| Quarter | End Date | Revenue | Net Income | Diluted EPS | Method |
|---|---|---|---|---|---|
| 2022-Q3 | 2022-09-30 | 0.41 | reported discrete quarter | ||
| 2023-Q1 | 2023-03-31 | 0.35 | reported discrete quarter | ||
| 2023-Q2 | 2023-06-30 | 6,567,000,000 | 706,000,000 | 0.52 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 5,986,000,000 | 567,000,000 | 0.42 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 6,792,000,000 | 616,000,000 | derived Q4 = FY annual - nine-month YTD | |
| 2024-Q1 | 2024-03-31 | 4,818,000,000 | 401,000,000 | 0.31 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 5,488,000,000 | 433,000,000 | 0.34 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 4,654,000,000 | 306,000,000 | 0.24 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 4,876,000,000 | 173,000,000 | derived Q4 = FY annual - nine-month YTD | |
| 2025-Q1 | 2025-03-31 | 3,828,000,000 | 131,000,000 | 0.10 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 4,711,000,000 | 213,000,000 | 0.17 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 4,399,000,000 | 80,000,000 | 0.06 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 5,157,000,000 | 86,000,000 | derived Q4 = FY annual - nine-month YTD | |
| 2026-Q1 | 2026-03-31 | 3,826,000,000 | 7,000,000 | 0.01 | reported discrete quarter |
Quarterly Charts
Macro Cross-References
- CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
- UNRATE - Unemployment Rate
- FEDFUNDS - Federal Funds Effective Rate
- CES0500000003 - Average Hourly Earnings of All Employees, Total Private
- DFEDTARU - Federal Funds Target Range - Upper Limit
- DFEDTARL - Federal Funds Target Range - Lower Limit
- DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
- DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
- DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
- T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
- CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
- CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
- CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
- CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
- PCEPI - Personal Consumption Expenditures: Chain-type Price Index
- PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
- PPIACO - Producer Price Index by Commodity: All Commodities
- T10YIE - 10-Year Breakeven Inflation Rate
- U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
- PAYEMS - All Employees, Total Nonfarm
- CIVPART - Labor Force Participation Rate
- EMRATIO - Employment-Population Ratio
- UNEMPLOY - Unemployed
- CE16OV - Employment Level
- ICSA - Initial Claims
- JTSJOL - Job Openings: Total Nonfarm
- JTSQUR - Quits: Total Nonfarm
- GDPC1 - Real Gross Domestic Product
- A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
- INDPRO - Industrial Production: Total Index
- TCU - Capacity Utilization: Total Index
- HOUST - New Privately-Owned Housing Units Started: Total Units
- PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
- RSAFS - Advance Retail Sales: Retail Trade
- PCE - Personal Consumption Expenditures
- DSPIC96 - Real Disposable Personal Income
- PSAVERT - Personal Saving Rate
- M2SL - M2
- BOPGSTB - U.S. International Trade in Goods and Services: Balance
- MSPUS - Median Sales Price of Houses Sold for the United States
- HSN1F - New One Family Houses Sold: United States
- RHORUSQ156N - Homeownership Rate in the United States
- TTLCONS - Total Construction Spending: Total Construction in the United States
- RRVRUSQ156N - Rental Vacancy Rate in the United States
- TOTALSL - Total Consumer Credit Owned and Securitized
- REVOLSL - Revolving Consumer Credit Owned and Securitized
- DRCCLACBS - Delinquency Rate on Credit Card Loans, All Commercial Banks
- GDP - Gross Domestic Product
- GPDI - Gross Private Domestic Investment
- GCE - Government Consumption Expenditures and Gross Investment
- PCEC - Personal Consumption Expenditures
- NETEXP - Net Exports of Goods and Services
- GFDEBTN - Federal Debt: Total Public Debt
- GFDEGDQ188S - Federal Debt: Total Public Debt as Percent of Gross Domestic Product
- FYFSD - Federal Surplus or Deficit
- FGRECPT - Federal Government Current Receipts
- FGEXPND - Federal Government: Current Expenditures
- MANEMP - All Employees, Manufacturing
- USCONS - All Employees, Construction
- USTRADE - All Employees, Retail Trade
- USFIRE - All Employees, Financial Activities
- USGOVT - All Employees, Government
- AWHAETP - Average Weekly Hours of All Employees, Total Private
- DGORDER - Manufacturers' New Orders: Durable Goods
- NEWORDER - Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
- BUSINV - Total Business Inventories
- EXPGS - Exports of Goods and Services
- IMPGS - Imports of Goods and Services
- IR - Import Price Index (End Use): All Commodities
- PPIFIS - Producer Price Index by Commodity: Final Demand
Latest quarter (10-Q)
Latest 10-Q source: 0001567094-26-000011.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
GENERAL
The following Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") should be read in conjunction with our unaudited Consolidated Financial Statements and the notes to our unaudited Consolidated Financial Statements in this report, as well as our annual report on Form 10-K for the year ended December 31, 2025 ("2025 Annual Report") filed with the U.S. Securities and Exchange Commission ("SEC"). Results for the interim periods presented are not necessarily indicative of the results expected for the full fiscal year due to seasonal and other factors.
This discussion includes forward-looking statements, which, although based on assumptions that we consider reasonable, are subject to risks and uncertainties which could cause actual events or conditions to differ materially from those expressed or implied by the forward-looking statements. This MD&A should be read in conjunction with our discussion of cautionary statements and significant risks to the Company's business under "Item 1A. Risk Factors" of our 2025 Annual Report.
Global Business Conditions
Industry conditions in early 2026 continue to reflect the ongoing cyclical downturn, with historically low agriculture equipment demand—particularly in North America—as ongoing tariff and input‑cost pressures weigh on farmer sentiment. Management continues to view these trends as cyclical rather than structural. During the first quarter, the Company remained focused on price discipline, production and inventory management, cost‑reduction initiatives, and continued investment in Precision Technology and quality.
For a discussion of the Company's risks and uncertainties, see Part 1, Item 1A: Risk Factors in the Company's Form 10-K for the year ended December 31, 2025 and Part II, Item 1A: Risk Factors within this Form 10-Q.
Operating Results
The operations, key financial measures and financial analysis differ significantly for manufacturing and distribution businesses ("Industrial Activities") and financial businesses ("Financial Services"). Accordingly, management believes that certain supplemental disclosures are important to understanding our consolidated operations and financial results. For further information, see "Supplemental Information" within this section for supplemental consolidating data presented separately for Industrial Activities and Financial Services. Transactions between Industrial Activities and Financial Services have been eliminated to arrive at the consolidated data.
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Three Months Ended March 31, 2026 compared to Three Months Ended March 31, 2025
Consolidated Results of Operations
| Three Months Ended March 31, | ||||||
|---|---|---|---|---|---|---|
| (in millions of dollars) | 2026 | 2025 | ||||
| Revenues | ||||||
| Net sales | $ | 3,170 | $ | 3,172 | ||
| Finance, interest and other income | 656 | 656 | ||||
| Total Revenues | 3,826 | 3,828 | ||||
| Costs and Expenses | ||||||
| Cost of goods sold | 2,605 | 2,569 | ||||
| Selling, general and administrative expenses | 465 | 386 | ||||
| Research and development expenses | 232 | 184 | ||||
| Restructuring expenses | 4 | 6 | ||||
| Interest expense | 365 | 362 | ||||
| Other, net | 142 | 159 | ||||
| Total Costs and Expenses | 3,813 | 3,666 | ||||
| Consolidated income before income taxes | 13 | 162 | ||||
| Income tax expense | (4) | (47) | ||||
| Equity in income of unconsolidated affiliates | 1 | 17 | ||||
| Net income | 10 | 132 | ||||
| Net income attributable to noncontrolling interests | 3 | 1 | ||||
| Net income attributable to CNH Industrial N.V. | $ | 7 | $ | 131 |
Revenues
We recorded revenues of $3,826 million for the three months ended March 31, 2026, flat compared to the three months ended March 31, 2025.
Cost of Goods Sold
Cost of goods sold was $2,605 million for the three months ended March 31, 2026, compared with $2,569 million for the three months ended March 31, 2025. As a percentage of net sales, cost of goods sold was 82.2% in the three months ended March 31, 2026 (81.0% for the three months ended March 31, 2025), impacted by tariff costs and lower production volumes.
Selling, General and Administrative Expenses
Selling, general and administrative expenses ("SG&A") were $465 million for the three months ended March 31, 2026 (12.2% of total revenues), up $79 million compared to the three months ended March 31, 2025 (10.1% of total revenues). Total expenses were higher primarily due to higher credit risk provisions in the Financial Services segment and higher labor costs.
Research and Development Expenses
Research and development expenses ("R&D") were $232 million and $184 million for the three months ended March 31, 2026 and 2025, respectively. The increase was driven by higher variable compensation, new‑product investment and timing of project spending.
Restructuring Expenses
Restructuring expenses were $4 million and $6 million for the three months ended March 31, 2026 and 2025, respectively.
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Interest Expense
Interest expense was $365 million for the three months ended March 31, 2026, compared to $362 million for the three months ended March 31, 2025. The interest expense attributable to Industrial Activities for the three months ended March 31, 2026, net of interest income and eliminations, was $23 million, compared to $25 million for the three months ended March 31, 2025.
Other, net
Other, net expenses were $142 million for the three months ended March 31, 2026 and $159 million for the three months ended March 31, 2025. Other, net expenses primarily include the cost of disposing equipment on operating leases after lease termination and the amortization of leased assets, incurred primarily through our Financial Services segment.
Income Taxes
| Three Months Ended March 31, | ||||||
|---|---|---|---|---|---|---|
| (in millions of dollars, except percentages) | 2026 | 2025 | ||||
| Consolidated income before income taxes | $ | 13 | $ | 162 | ||
| Income tax expense | $ | (4) | $ | (47) | ||
| Effective tax rate | 30.8 | % | 29.0 | % |
Income tax expense for the three months ended March 31, 2026 was $4 million compared to $47 million for the three months ended March 31, 2025. The effective tax rate for the three months ended March 31, 2026 and 2025 was 30.8% and 29.0%, respectively. The increase in the 2026 effective tax rate was largely attributable to discrete items on a relatively small profit base in Q1 2026.
Equity in Income of Unconsolidated Affiliates
Equity in income of unconsolidated affiliates was $1 million and $17 million for the three months ended March 31, 2026 and 2025, respectively. The decline was primarily due to lower sales in our joint venture TürkTraktör ve Ziraat Makineleri A.S.
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Business Segment Performance
The following table includes total revenues by segment (in millions of dollars, except percentages):
| Three Months Ended March 31, | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | 2025 | % Change | ||||||||
| Revenues: | ||||||||||
| Agriculture | $ | 2,596 | $ | 2,581 | 0.6 | % | ||||
| Construction | 574 | 591 | (2.9) | % | ||||||
| Total Net sales of Industrial Activities | 3,170 | 3,172 | (0.1) | % | ||||||
| Financial Services | 646 | 651 | (0.8) | % | ||||||
| Eliminations and other | 10 | 5 | ||||||||
| Total Revenues | $ | 3,826 | $ | 3,828 | (0.1) | % |
The following table includes Adjusted EBIT by segment (in millions of dollars, except percentages):
| Three Months Ended March 31, | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | 2025 | $ Change | 2026 Adj EBIT Margin | 2025 Adj EBIT Margin | |||||||||||||
| Adjusted EBIT by segment:(1) | |||||||||||||||||
| Agriculture | $ | 27 | $ | 139 | $ | (112) | 1.0 | % | 5.4 | % | |||||||
| Construction | (28) | 14 | (42) | (4.9) | % | 2.4 | % | ||||||||||
| Eliminations and other | (44) | (52) | 8 | ||||||||||||||
| Adjusted EBIT of Industrial Activities | $ | (45) | $ | 101 | $ | (146) | (1.4) | % | 3.2 | % |
(1)A reconciliation from the most closely related U.S. GAAP measure to this non-GAAP measure is included on page 38.
Agriculture
Net Sales
Agriculture's net sales totaled $2,596 million in the three months ended March 31, 2026, an increase of 0.6% compared to the three months ended March 31, 2025. This increase is mainly due to positive foreign exchange impacts and favorable price realization, offset by lower volumes in all regions except EMEA.
The following table shows Agriculture net sales by geographic region for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 (in millions of dollars, except percentages):
Agriculture Sales—by geographic region
| Three Months Ended March 31, | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | 2025 | % Change | ||||||||
| North America | $ | 1,015 | $ | 1,050 | (3.3) | % | ||||
| EMEA | 981 | 819 | 19.8 | % | ||||||
| South America | 298 | 413 | (27.8) | % | ||||||
| Asia Pacific | 302 | 299 | 1.0 | % | ||||||
| Total | $ | 2,596 | $ | 2,581 | 0.6 | % |
Adjusted EBIT
Adjusted EBIT was $27 million in the three months ended March 31, 2026, compared to $139 million in the three months ended March 31, 2025. The decline was primarily due to lower shipment volumes in South America and North America, the impact of tariffs, higher SG&A and R&D expenses and lower joint venture results. SG&A expenses were impacted by higher variable compensation and labor inflation. R&D expenses accounted for 7.9% of sales (6.3% in the three months ended March 31, 2025). Adjusted EBIT margin was 1.0% (5.4% in the three months ended March 31, 2025).
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Construction
Net Sales
Construction's net sales totaled $574 million in the three months ended March 31, 2026, a decline of 2.9% compared to the three months ended March 31, 2025, reflecting lower shipment volumes in South America and North America.
The following table shows Construction net sales by geographic region for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 (in millions of dollars, except percentages):
Construction Sales—by geographic region
| Three Months Ended March 31, | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | 2025 | % Change | ||||||||
| North America | $ | 302 | $ | 322 | (6.2) | % | ||||
| EMEA | 166 | 148 | 12.2 | % | ||||||
| South America | 62 | 78 | (20.5) | % | ||||||
| Asia Pacific | 44 | 43 | 2.3 | % | ||||||
| Total | $ | 574 | $ | 591 | (2.9) | % |
Adjusted EBIT
Adjusted EBIT was $(28) million in the three months ended March 31, 2026, compared to $14 million in the three months ended March 31, 2025. The decline was primarily due to the impact of tariffs, higher SG&A expenses and lower shipment volumes, partially offset by pricing. SG&A expenses were impacted by trade show marketing costs, higher variable compensation, and labor inflation. Adjusted EBIT margin was (4.9)% (2.4% in the three months ended March 31, 2025).
Financial Services
Finance, Interest and Other Income
Financial Services recorded revenues of $646 million in the three months ended March 31, 2026, down 0.8% compared to the three months ended March 31, 2025, as a result of lower volumes across all regions except Asia Pacific, reduced equipment sales due to fewer operating lease maturities, and lower yields in EMEA, partially offset by favorable currency translation and higher yields in South America and North America.
Net Income
Net income for Financial Services was $74 million in the three months ended March 31, 2026, a decrease of $16 million compared to the three months ended March 31, 2025, primarily driven by higher risk costs in Brazil and lower volumes across all regions except for Asia Pacific. Results were partially offset by interest margin i
[Excerpt truncated for page length; source filing is linked above.]
Latest 10-K MD&A
Management's Discussion and Analysis
The following Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is intended to promote understanding of the Company's financial condition and results of operations. The MD&A is provided as a supplement to, and should be read in conjunction with, the Consolidated Financial Statements and the accompanying Notes to the Consolidated Financial Statements.
This discussion includes forward-looking statements, which, although based on assumptions that we consider reasonable, are subject to risks and uncertainties which could cause actual events or conditions to differ materially from those expressed or implied by the forward-looking statements. This MD&A should be read in conjunction with our discussion of cautionary statements and significant risks to the Company's business under "Item 1A. Risk Factors" of this Annual Report on Form 10-K.
Global Business Conditions
In 2025, we operated in a challenging environment characterized by lower industry demand in large agriculture, particularly in the Americas, elevated tariff and input‑cost pressures, and cautious farmer sentiment. We view 2025 as part of a cyclical downturn in agricultural equipment rather than a structural change in our end markets. Throughout the year, we prioritized price discipline, production and inventory management, cost‑reduction initiatives, and continued investment in Precision Technology and quality, with the aim of positioning CNH for improved performance as conditions normalize, particularly into 2026 and beyond.
For a discussion of the Company's risks and uncertainties, see Part 1, Item 1A: "Risk Factors".
Operating Results
The operations, key financial measures, and financial analysis, differ significantly for manufacturing and distribution businesses ("Industrial Activities") and financial businesses ("Financial Services"); therefore, management believes that certain supplemental disclosures are important in understanding our consolidated operations and financial results. For further information, see "Supplemental Information" within this section, where we present supplemental consolidating data split by Industrial Activities and Financial Services. Transactions between Industrial Activities and Financial Services have been eliminated to arrive at the consolidated data.
2025 Compared to 2024
Consolidated Results of Operations
| Years Ended December 31, | ||||||
|---|---|---|---|---|---|---|
| (in millions of dollars) | 2025 | 2024 | ||||
| Revenues | ||||||
| Net sales | $ | 15,346 | $ | 17,060 | ||
| Finance, interest and other income | 2,749 | 2,776 | ||||
| Total Revenues | 18,095 | 19,836 | ||||
| Costs and Expenses | ||||||
| Cost of goods sold | 12,389 | 13,350 | ||||
| Selling, general and administrative expenses | 1,876 | 1,712 | ||||
| Research and development expenses | 1,025 | 924 | ||||
| Restructuring expenses | 22 | 118 | ||||
| Interest expense | 1,482 | 1,611 | ||||
| Other, net | 681 | 664 | ||||
| Total Costs and Expenses | 17,475 | 18,379 | ||||
| Consolidated income before income taxes | 620 | 1,457 | ||||
| Income tax expense | (184) | (336) | ||||
| Equity in income of unconsolidated affiliates | 69 | 138 | ||||
| Net income | 505 | 1,259 | ||||
| Net income (loss) attributable to noncontrolling interests | (5) | 13 | ||||
| Net income attributable to CNH Industrial N.V. | $ | 510 | $ | 1,246 |
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Revenues
We recorded revenues of $18,095 million in 2025, a decline of 8.8% compared to 2024. This decline was mainly due to lower shipments on decreased industry demand. See "Business Segment Performance."
Cost of Goods Sold
Cost of goods sold were $12,389 million in 2025 compared to $13,350 million in 2024, a decrease of 7.2% year-over- year. As a percentage of net sales, cost of goods sold was 80.7% in 2025 (78.3% in 2024), the increase in the percentage from 2024 was due to lower production volumes and tariff costs.
Selling, General and Administrative Expenses
Selling, general and administrative expenses ("SG&A") increased to $1,876 million in 2025 (10.4% of revenues) from $1,712 million in 2024 (8.6% of revenues). The year-over-year increase is primarily due to higher credit risk provisions in the Financial Services segment and higher labor costs.
Research and Development
In 2025, R&D expenses were $1,025 million compared to $924 million in 2024. R&D expenses were higher in 2025 primarily due to a $172 million non-cash impairment charge related to in-process research & development ("IPR&D") acquired as part of the Raven and Bennamann acquisitions.
Restructuring Expenses
The Company incurred restructuring costs of $22 million and $118 million in 2025 and 2024, respectively. These costs primarily relate to the restructuring program announced in November 2023 targeting labor and non-labor SG&A expenses. This program was substantially complete in 2024, with total costs of $131 million.
Interest Expense
Interest expense decreased to $1,482 million in 2025 from $1,611 million in 2024 primarily due to lower external borrowings. The interest expense attributable to Industrial Activities, net of interest income and eliminations, was $114 million in 2025 compared to $152 million in 2024.
Other, net
Other, net expenses were $681 million in 2025 and included a pre-tax gain of $21 million ($16 million after-tax) as a result of the amortization over 4 years of the $101 million positive impact from the 2021 U.S. healthcare plan modification, and a $62 million impairment of investments in unconsolidated affiliates.
Other, net expenses were $664 million in 2024 and included a pre-tax gain of $24 million ($18 million after-tax) as a result of the amortization over 4 years of the $101 million positive impact from the 2021 U.S. healthcare plan modification and a gain of $14 million for investment fair value adjustments, partially offset by a loss of $17 million on the sale of certain non-core product lines.
Income Taxes
| Years Ended December 31, | ||||||
|---|---|---|---|---|---|---|
| (in millions of dollars, except percentages) | 2025 | 2024 | ||||
| Consolidated income before income taxes | $ | 620 | $ | 1,457 | ||
| Income tax expense | $ | 184 | $ | 336 | ||
| Effective tax rate | 29.7 | % | 23.1 | % |
In 2025, income taxes were an expense of $184 million, compared to a tax expense of $336 million in 2024. The effective tax rates for 2025 and 2024 were 29.7% and 23.1%, respectively. The tax expense in 2025 was reduced as compared to 2024 due to lower profit-before-tax. However, the 2025 effective tax rate increased due to the year-over year tax impact of Argentina's highly inflationary economy and the non-recognized tax benefits associated with the non-cash impairment charges related to Monarch Tractors and IPR&D acquired as part of the Raven acquisition. In 2025, we also recorded a valuation allowance against deferred tax assets generated by Bennamann.
On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was signed into U.S. law. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provision of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027.The
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impacts of the OBBBA legislation did not have a material impact on the Company's financial results during 2025; further, the Company estimates the OBBBA legislation will not have a material impact on the Company’s financial results during 2026.
Equity in Income of Unconsolidated Affiliates
Equity in income of unconsolidated affiliates was $69 million in 2025 compared to $138 million in 2024 primarily due to lower sales in our joint venture TürkTraktör ve Ziraat Makineleri A.S.
Business Segment Performance
The following table includes total revenues by segment (in millions of dollars, except percentages):
| Years Ended December 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | % Change | |||||||||
| Revenues: | |||||||||||
| Agriculture | $ | 12,390 | $ | 14,007 | (11.5) | % | |||||
| Construction | 2,956 | 3,053 | (3.2) | % | |||||||
| Total Net sales of Industrial Activities | 15,346 | 17,060 | (10.0) | % | |||||||
| Financial Services | 2,720 | 2,774 | (1.9) | % | |||||||
| Eliminations and other | 29 | 2 | |||||||||
| Total Revenues | $ | 18,095 | $ | 19,836 | (8.8) | % |
The following table includes Adjusted EBIT of Industrial Activities by segment (in millions of dollars, except percentages):
| Years Ended December 31, | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | $ Change | 2025 Adj EBIT Margin | 2024 Adj EBIT Margin | ||||||||||||||
| Adjusted EBIT:(1) | ||||||||||||||||||
| Agriculture | $ | 772 | $ | 1,470 | $ | (698) | 6.2 | % | 10.5 | % | ||||||||
| Construction | 68 | 169 | (101) | 2.3 | % | 5.5 | % | |||||||||||
| Eliminations and other | (177) | (235) | 58 | |||||||||||||||
| Adjusted EBIT of Industrial Activities | $ | 663 | $ | 1,404 | $ | (741) | 4.3 | % | 8.2 | % |
(1)A reconciliation from the most closely related U.S. GAAP measure to this non-GAAP measure is included on page 56.
Agriculture
Net Sales
Net sales for Agriculture were $12,390 million in 2025, an 11.5% decline compared to 2024. This decline is mainly due to lower shipment volumes on decreased industry demand.
In North America, industry volume was down 33% year over year in 2025 for tractors over 140 hp and was down 7% for tractors under 140 hp; combines were down 26%. In EMEA, tractor and combine demand was down 13% and 3%, respectively. South America tractor demand was down 1% and combine demand was down 16%. Asia Pacific tractor demand was up 12% and combine demand was down 26%.
The following table includes Agriculture net sales by geographic region in 2025 compared to 2024 (in millions of dollars, except percentages):
| Years Ended December 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | % Change | |||||||||
| North America | $ | 4,296 | $ | 5,839 | (26.4) | % | |||||
| Europe, Middle East and Africa | 4,614 | 4,267 | 8.1 | % | |||||||
| South America | 2,016 | 2,280 | (11.6) | % | |||||||
| Asia Pacific | 1,464 | 1,621 | (9.7) | % | |||||||
| Total | $ | 12,390 | $ | 14,007 | (11.5) | % |
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Adjusted EBIT
Adjusted EBIT was $772 million in 2025, compared to $1,470 million in 2024. The decline, driven by lower shipment volumes and the impact from tariffs, was partially offset by lower quality costs. R&D expenses accounted for 7.5% of sales (5.9% in 2024), including a $172 million non-cash impairment charge related to IPR&D acquired as part of the Raven and Bennamann acquisitions. Adjusted EBIT margin was 6.2% in 2025.
Construction
Net Sales
Net sales for Construction were $2,956 million in 2025, a decline of 3.2% compared to 2024, due to lower shipment volumes in North America and continued channel destocking.
Global industry volume for construction equipment increased 7% year over year in 2025 for Heavy construction equipment; Light construction equipment was up 1%. Aggregated demand increased 1% in North America and 4% in EMEA, respectively, and increased 5% in South America and 5% for Asia Pacific, particularly in China.
The following table includes Construction net sales by geographic region in 2025 compared to 2024 (in millions of dollars, except percentages):
| Years Ended December 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | % Change | |||||||||
| North America | $ | 1,500 | $ | 1,633 | (8.1) | % | |||||
| Europe, Middle East and Africa | 717 | 660 | 8.6 | % | |||||||
| South America | 552 | 540 | 2.2 | % | |||||||
| Asia Pacific | 187 | 220 | (15.0) | % | |||||||
| Total | $ | 2,956 | $ | 3,053 | (3.2) | % |
Adjusted EBIT
Adjusted EBIT was $68 million in 2025, compared to $169 million in 2024. The decline was primarily due to lower volumes and higher manufacturing costs primarily as a result of higher tariff costs. Adjusted EBIT margin was 2.3% in 2025.
Financial Services
Finance, Interest and Other Income
Financial Services reported revenues of $2,720 million in 2025, down 1.9% compared to 2024 due to the negative impact from currency translation, unfavorable volumes in EMEA and lower yields in South America and EMEA, partially offset by favorable volumes in all regions except EMEA and higher yields in North America and APAC.
Net Income
Net income for Financial Services was $333 million in 2025, a $46 million decrease compared to 2024, primarily due to higher risk costs from increased specific reserves and delinquencies in South America, higher losses and collective rates in North America and increased labor costs; partially offset by margin improvement in all regions and favorable income taxes due to a non-recurring prior year valuation allowance adjustment in Argentina.
In 2025, retail originations (including unconsolidated joint ventures) were $10.6 billion, down $0.8 billion compared to 2024. The managed portfolio (including unconsolidated joint ventures) was $28.6 billion as of December 31, 2025 (of which retail was 70% and wholesale 30%), up $0.7 billion compared to December 31, 2024.
At December 31, 2025, the receivable balance past due greater than 30 days as a percentage of receivables was 3.1% (1.9% as of December 31, 2024) due to economic and environmental factors impacting farmers, specifically in South America.
2024 Compared to 2023
Please refer to the "Management's Discussion and Analysis" section of our 2024 Form 10-K.
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