CNH Industrial tops Q3 estimates, raises 2026 profit forecast

CNH Industrial (CNH) posted adjusted diluted earnings of 16 cents a share, and revenue of $4.35 billion beat the $4.2 billion estimate.

Shares were little changed premarket at 7:36 a.m. ET.

Here's how the company did:

• Adjusted EPS: 16 cents vs. 8 cents a year earlier, 10 cents expected
• Revenue: $4.35 billion vs. $4.40 billion a year earlier
• Net income: $35 million, or 2 cents a share, vs. $67 million, or 6 cents, a year earlier

Reported net income fell after a $156 million non-cash charge to establish a valuation allowance against deferred tax assets in Brazil. Adjusted net income, which excludes the charge, was $205 million, up from $109 million a year earlier.

The results include $109 million in pre-tax IEEPA tariff refunds recognized during the quarter.

Tariff refunds and reinvestment

CNH reinvested about 35% of the tariff refunds received in the quarter in selective, time-limited efforts to clear aged inventory and accelerate its transformation.

CEO Gerrit Marx said conditions in EMEA and Brazil "remain volatile."

Segment results

Here's how the company's segments did during the quarter:

• Agriculture: net sales of $2.91 billion, down 2% from a year earlier; adjusted EBIT of $173 million vs. $137 million
• Construction: net sales of $777 million, up 5% from a year earlier; adjusted EBIT of $65 million vs. $14 million
• Financial Services: net loss of $77 million vs. net income of $47 million a year earlier

Agriculture's gain reflected IEEPA tariff refunds and better quality-related costs, partly offset by lower volumes in South America and EMEA.

2026 guidance

CNH raised its full-year adjusted diluted EPS forecast to 44 cents to 48 cents, from 41 cents to 46 cents.

It now expects free cash flow of Industrial Activities of $300 million to $450 million, up from $200 million to $400 million.

For Agriculture, the adjusted EBIT margin is now forecast at 5.1% to 5.4%, compared with 5.0% to 5.5% before. Agriculture net sales are expected to be about flat.

For Construction, net sales are now forecast to rise 8% to 10%, up from 5% to 10%, and the adjusted EBIT margin is now 2.0% to 2.3%, from 1.8% to 2.3%.

Construction equipment joint venture

CNH agreed to sell 70% of its Construction Equipment business to Kobelco Construction Machinery Co., Ltd., a wholly owned subsidiary of Kobe Steel, Ltd. The deal creates a joint venture called CE JV, with Kobelco owning 70% and CNH keeping 30%.

The transaction values the business at an enterprise value of $1 billion. CNH expects $700 million in cash for its 70% stake, subject to adjustments for net debt, working capital and other customary items.

CNH intends to use the cash proceeds, net of tax, to reduce debt. The deal is expected to close by the end of 2027, subject to regulatory approvals and other customary conditions.