CNH Industrial N.V. (NYSE:CNH) shares climbed premarket on Friday after the company reported third-quarter fiscal 2025 results.

CNH Industrial’s main brands include Case IH and New Holland Agriculture for the global agriculture market, and CASE Construction Equipment and New Holland Construction for the global construction market.

Details

The company reported adjusted earnings of 8 cents per share, missing the consensus of 13 cents per share.

CNH Industrial reported revenue of $4.40 billion, beating analyst estimates of $3.91 billion.

Total revenue was down 5% year over year (Y/Y) in the quarter due to weak industry demand and continued channel destocking.

Due to weaker industry demand and channel inventory reductions, the company produced fewer units in 2025, which pressured segment margins.

The company reported $659 million in net cash from operations and $188 million in industrial free cash flow absorption in the quarter.

Segment Performance

Agriculture net sales fell 10% Y/Y to $2.96 billion, due to lower North American shipments and channel inventory reductions.

Meanwhile, Construction net sales rose 8% Y/Y to $739 million, led by higher shipment volumes in North America and EMEA and improved net pricing.

Financial Services revenue grew 4% Y/Y to $684 million, driven by higher yields in Brazil and positive currency effects.

Management Commentary

「While the current trade environment remains challenging for our farmers and builders, CNH continues to take decisive actions to navigate near-term headwinds. We are maintaining disciplined production levels, reducing channel inventories, investing in technology, and driving operational excellence,」 CEO Gerrit Marx said in the earnings release.

Outlook

CNH Industrial lowered fiscal 2025 adjusted EPS guidance to 44 cents–50 cents from 50 cents–70 cents, compared with a 59 cents analyst estimate.

CNH faces added cost pressure from expanded U.S. steel and aluminum tariffs in 2025. Mitigation efforts have only partly offset the impact, and sharing net tariff costs with customers is weighing on margins.

The guidance cut reflects incremental tariff headwinds and an unfavorable geographic sales mix.

The company sees free cash flow of Industrial Activities of $200 million-$500 million for the year.

Net sales in the Construction segment are expected to be down 3%-5% and the Agriculture segment net sales are expected to decline 11% and 13%.

Price Action: CNH shares were trading lower by 12.18% to $9.010 premarket at last check Friday.

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