CNH Industrial N.V. Q4 FY2025 earnings call

Gerrit Marx mentioned bright spots despite market challenges, successful Tech Day, new tractor lineup, dealer network consolidation, $230 million cost reduction in Agriculture in 2025, sustainability efforts, and progress on strategic pillars like innovation, commercial excellence, operational excellence.

Agriculture Q4 net sales were about $3.6 billion, up 5% year-over-year. Adjusted gross margin was 20%, adjusted EBIT margin was 6.5%. Construction Q4 net sales were up 19% year-over-year to $853 million. Q4 gross margin was 11.5%, adjusted EBIT margin was 0.6%. Industrial Q4 net sales were up 8% year-over-year to nearly $4.5 billion. Adjusted net income increased to $246 million with adjusted diluted earnings per share at $0.19. Financial Services segment net income in the quarter was $109 million, up 18% year-over-year.

2026 agriculture net sales flat to down 5%, ag EBIT margin 4.5%-5.5%; construction net sales flat, EBIT margin 1%-2%; industrial net sales flat to down 4%, adjusted EBIT margin 2.5%-3.5%; Q1 expected to be weak, second half better.

Risks include low commodity prices, uncertain trade environment, tariff impacts, adverse regional and product mix.

Q: Just wanted to clarify the inventory situation...

A: Gerrit Marx and James A. Nickolas answered...

Q: Really appreciate all of the incremental color on the guidance...

A: James A. Nickolas answered...