The Q1 results confirm a deep cyclical trough in North American agriculture, with no sign of near-term recovery. The reaffirmed guidance implies a back-half-weighted year that requires a sharp operational rebound — monitor monthly industry sales data and dealer inventory reports for signs of stabilization. The rising 30+ day past-due ratio in the finance portfolio (3.5%) warrants close watch as it could signal mounting credit losses in South America.
Price Chart
Executive Summary
CNH Industrial reported a severe earnings collapse in Q1 2026, with net income plunging 92% YoY to $10 million and diluted EPS falling from $0.10 to $0.01. The Agriculture segment's adjusted EBIT margin collapsed to 1.0% from 5.4%, and the Construction segment posted a negative margin of -4.9%. While full-year guidance was reaffirmed, the underlying operating deterioration — driven by historically low North American ag demand, tariffs, and rising costs — signals a deeply challenged cycle.
Key Financial Metrics
Key Facts
- Net income fell 92% YoY to $10 million (Q1 2025: $132 million)
- Diluted EPS dropped from $0.10 to $0.01
- Agriculture adjusted EBIT margin collapsed to 1.0% (Q1 2025: 5.4%)
- Construction adjusted EBIT margin turned negative at -4.9% (Q1 2025: +2.4%)
- Industrial Activities free cash flow was negative $589 million (Q1 2025: -$567 million)
- Consolidated revenues flat at $3.83 billion, but down 4% on a constant currency basis
- Full-year 2026 guidance reaffirmed: Agriculture net sales down 5% to flat, Agriculture EBIT margin 4.5%-5.5%, Construction EBIT margin 1.0%-2.0%
- Receivable balance >30 days past due rose to 3.5% (Q1 2025: 2.3%), driven by South America farmer stress
Financial Impact
Net income declined by $122 million YoY; Industrial Activities free cash flow burn of $589 million in a single quarter
Risk Factors
- Further deterioration in North American ag equipment demand if trade/tariff uncertainty persists
- Credit losses in the Financial Services portfolio, especially in Brazil, could accelerate
- Guidance may prove unachievable if current demand trends continue into Q2
- Free cash flow burn of $589M in Q1 leaves little margin for error in the remaining quarters
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3284631 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jul 20, 2026 14w ago | Press Release | — | awaiting T+20 | — | — |
May 8, 2026 24w ago | Press Release | — | awaiting T+20 | — | — |
Apr 30, 2026 25w ago | Press Release | — | awaiting T+20 | — | — |
Apr 16, 2026 27w ago | Press Release | — | awaiting T+20 | — | — |
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