CNH Industrial (CNH) investor relations material

Executive summary

• Q2 2026 consolidated revenues were $4.8 billion, up 2% year-over-year, with net income of $141 million and adjusted net income of $161 million; diluted EPS was $0.11, down from $0.17, and adjusted diluted EPS was $0.13.

• Operational improvements in quality, sourcing, and manufacturing efficiency supported performance, with precision technology adoption and dealer network consolidation advancing.

• Market recovery indicators are mixed: inventory normalization and equipment aging are progressing, but farm profitability and commodity prices remain weak, leading to a cautious outlook and an L-shaped recovery expectation for 2027.

• Returned $0.2 billion to shareholders via dividends and share repurchases in Q2 2026.

• Full-year guidance was narrowed to the higher end of previous ranges.

Financial highlights

• Net sales of Industrial Activities rose 3% year-over-year to $4.14 billion in Q2 2026; consolidated Q2 revenues reached $4.8 billion.

• Adjusted EBIT of Industrial Activities was $167 million (4.0% margin), down from $224 million (5.6%) in Q2 2025.

• Adjusted net income was $161 million and adjusted EPS was $0.13, both down 25% year-over-year.

• Free cash flow from Industrial Activities was $150 million, down from $451 million in Q2 2025.

• For the first six months, consolidated revenue was $8.63 billion (+1% year-over-year), with net income of $151 million.

Outlook and guidance

• 2026 Industrial Activities net sales expected flat to up 2% year-over-year, with adjusted EBIT margin between 3.2% and 3.8%.

• Adjusted diluted EPS guidance narrowed to $0.41–$0.46.

• Industrial free cash flow expected between $200 million and $400 million.

• Agriculture segment net sales expected to be flat year-over-year, with adjusted EBIT margin between 5.0% and 5.5%.

• Construction segment net sales projected to rise 5–10% year-over-year, with adjusted EBIT margin between 1.8% and 2.3%.