CNH Industrial N.V. (NYSE:CNH) shares tumbled 6.91% in pre-market trading on Thursday following the release of its first-quarter 2025 earnings report. Despite beating revenue expectations, the company's significant year-over-year decline in earnings appears to have spooked investors.

The agricultural and construction equipment manufacturer reported Q1 adjusted earnings per share of $0.10, meeting analyst consensus estimates but marking a sharp 66.67% decrease from $0.30 per share in the same period last year. Revenue came in at $3.83 billion, surpassing the analyst estimate of $3.51 billion by 9.09%. However, this still represented a 20.55% decrease compared to the $4.82 billion reported in Q1 2024.

CNH Industrial's net income for the quarter stood at $132 million. Looking ahead, the company provided its 2025 outlook, projecting adjusted diluted EPS between $0.50 to $0.70 for the full year. The substantial pre-market drop suggests that investors may be concerned about the company's profitability and growth prospects, despite the revenue beat. The market's negative reaction could be attributed to the significant year-over-year declines in both earnings and revenue, potentially indicating challenges in the company's core markets or operational efficiency.