Q1 2026 CNH Industrial NV Earnings Call Transcript
Key Points
- CNH Industrial NV (CNH) maintained disciplined production levels to manage and contain channel inventory, aligning with their plan to reduce dealer inventories by about $500 million this year.
- The company reported positive net pricing and cost savings in agriculture, contributing to operational efficiencies and quality improvements.
- CNH Industrial NV (CNH) is making solid progress in dealer and service network optimization, with 70% of dealer locations now equipped with their AI tech assist tool.
- The company has engaged in productive discussions with the US administration to support farmers, with optimism around developments like increased renewable fuel standards.
- CNH Industrial NV (CNH) reaffirmed its guidance for 2026, expecting industrial net sales to be flat to down 4% year-over-year, and industrial EBIT margin to be between 2.5% and 3.5%.
- The company faced historically low industry demand in North America and financial challenges for farmers in Brazil, impacting overall performance.
- Industrial adjusted EBIT was a loss of $45 million, primarily due to tariffs and high SG&A and R&D expenses.
- Free cash flow from Industrial Activities was a $569 million outflow, consistent with the working capital seasonality of the first quarter.
- The construction segment experienced a 3% year-over-year decline in net sales, with a negative EBIT margin of 4.9%, largely due to tariff impacts.
- Financial Services segment net income was down, mainly due to higher risk costs in Brazil, with sequential delinquency rates increasing slightly to 3.5%.
Good morning, and welcome to the CNH 2026 first quarter results conference call. (Operator Instructions)
I will now hand the call over to Jason Omerza, Vice President of Investor Relations. Please go ahead.
Thank you, Warren, and good morning, everyone. We would like to welcome you to CNH's first quarter earnings call for the period ending March 31, 2026. This live webcast is copyrighted by CNH and any recording, transmission or other use of any portion of it without the written consent of CNH is strictly prohibited. Hosting today's call are CNH CEO, Gerrit Marx; and CFO, Jim Nickolas. They will reference the material available for download from our website.
Please note that any forward-looking statements that we make during today's call are subject to the risks and uncertainties mentioned in the safe harbor statement included in the presentation material. Additional information pertaining to factors that could cause actual results to differ materially is contained in the
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