CNH raises annual profit forecast on improving construction segment demand

• The New Holland and Case IH tractor manufacturer expects 2026 adjusted profit per share in the range of 41 cents to 46 cents, up from its earlier forecast of 35 cents to 45 cents.
• Analysts expect an annual adjusted profit of 41 cents per share, according to data compiled by LSEG.
• CNH expects net sales in its construction equipment segment to grow between 5% and 10% this year, compared with an earlier forecast of flat sales.
• CNH also expects flat annual net sales in its core agriculture segment, compared with an earlier forecast of between a 5% drop and flat sales. Tractors and other farm equipment account for two thirds of CNH's overall revenue.
• "We are seeing constructive equipment-cycle indicators, including dealer inventory normalization, aging fleets, and a more balanced relationship between new and used equipment pricing," CEO Gerrit Marx said.
• For the second quarter, CNH posted an adjusted profit of 13 cents per share, down from 17 cents a year earlier, but above analysts' estimates of 10 cents per share.
• Quarterly revenue of $4.8 billion also topped estimates of $4.38 billion.

Aug. 3 (Reuters) - CNH Industrial raised its annual profit target on Monday, with the farm equipment manufacturer betting on improved construction segment demand, leaner tractor production and plans to pursue cost efficiencies.

The upgraded outlook comes even as the U.S.-Israel conflict with Iran has resulted in rising raw material costs for farmers worldwide, while U.S. farm incomes remain wobbly.

Shares of the company were up 7.4% in pre-market trading.