CNH Industrial N.V. Q1 FY2026 earnings call

Gerrit Marx mentioned Sioux Falls as a CNH tech hub, Q1 results were as expected, team responded to challenges during the quarter and is passing through the lowest period of the ag industry cycle. Highlighted operational excellence and manufacturing plant efficiencies, like the fiber laser installed at Fargo, ND plant. Jim Nickolas went through agriculture and construction financials, tariff impacts, and discussed guidance

Consolidated revenues were $3.8 billion, flat year-over-year, including about 4% positive currency impacts. Ag segment sales were up 1% to $2.6 billion (constituting approximately 68.4% of total consolidated revenues). Industrial adjusted EBIT was a loss of $45 million. Agriculture Q1 net sales were about $2.6 billion, up 1% year-over-year including 4% positive currency translation. Construction net sales in the quarter were lower 3% year-over-year to $574 million. Financial Services segment net income in the quarter was $74 million, down versus 2025 mainly due to higher risk costs in Brazil

Reaffirmed net sales guidance for agriculture as flat to down 5% with EBIT margin guidance 4.5% to 5.5%. Construction net sales forecasted flat y-o-y including 1% favorable currency translation and 2% pricing, EBIT margin between 1% and 2%. Industrial net sales forecasted flat to down 4% year-over-year, industrial EBIT margin between 2.5% and 3.5%, industrial free cash flow between $150 million and $350 million, adjusted EPS reaffirmed at between $0.35 and $0.45

Tariff changes, Middle East conflict, South America financial challenges, tighter credit in South America, ongoing Section 301 investigations for products from China, EU, India and Mexico

Includes questions from Tim Thein regarding ag production slots and regional orders, Esther regarding tariffs impact, Kristen Owen on back half scenarios, Jamie Cook on 2027 setup and company initiatives, Kyle Menges on industry competition and tariffs, David Raso on construction strategy and production below retail, Evan on credit dynamic, Tami Zakaria on South America market outlook, Daniela Costa on construction equipment pricing, Judah Arnovitz on ag price cost and transportation costs with corresponding answers from Gerrit Marx and Jim Nickolas