CNH Industrial Q4 Revenues Up 6% With Ag EBIT Margin Sliding to 6.5%
CNH Industrial’s Q4 consolidated revenues rose 6% to $5.2 billion, with agriculture net sales of $3.6 billion (+5%) and construction sales of $853 million (+19%). Ag EBIT margin fell to 6.5% from 7.2% after $110 million of tariffs, while 2026 guidance calls for flat to 4% lower sales and a 2.5–3.5% adjusted EBIT margin.
1. Q4 Financial Performance
CNH Industrial reported Q4 consolidated revenues of $5.2 billion, up 6% year-over-year. Agriculture segment net sales reached $3.6 billion (+5%), and construction sales rose 19% to $853 million, driving adjusted net income of $246 million and EPS of $0.19, up from $0.15 a year earlier.
2. Segment Margins and Tariff Impact
Agriculture adjusted EBIT margin declined to 6.5% from 7.2% in Q4 2024, reflecting $110 million of gross tariff costs and unfavorable product and geographic mix. Construction adjusted EBIT margin was 0.6% after $35 million of tariff headwinds eroded gross margin by 340 basis points.
3. Cost Savings and Inventory Reduction
In 2025, CNH removed $230 million of costs from its agriculture segment toward a $550 million savings target by 2030 and reduced dealer inventories by $800 million, slightly below its $1 billion goal due to stronger late-year shipments. The company is consolidating its dealer network to cut first-level Ag dealers by one third by 2030.
4. 2026 Outlook
CFO guidance calls 2026 the cycle trough, forecasting global retail demand at 80% of mid-cycle and agriculture net sales flat to down 5% (including 2% currency and 1.5–2% pricing). Agriculture EBIT margin is expected at 4.5–5.5%; industrial adjusted EBIT margin at 2.5–3.5%; EPS at $0.35–0.45; and free cash flow of $150–350 million, with Q1 Ag EBIT around break-even.