Q2 2026 CNH Industrial NV Earnings Call Transcript
Key Points
- CNH Industrial NV (CNH) raised its full-year 2026 guidance for agricultural net sales to approximately flat year-over-year, reflecting improved pricing and operational performance.
- The company reported positive price/cost dynamics in the agriculture segment for the second quarter and expects this trend to continue for the full year.
- CNH Industrial NV (CNH) is making significant progress in its strategic sourcing program, targeting 100-150 basis points of margin improvement by 2030, with the first wave already delivering results.
- The construction segment showed strong performance, with net sales up 12% year-over-year in Q2, driven by robust North American demand and the company raised its full-year construction sales guidance to 5%-10% growth.
- CNH Industrial NV (CNH) is seeing encouraging signs of market recovery, including normalization of dealer inventories, aging equipment fleets, and converging new/used equipment price gaps, which could support future demand.
- CNH Industrial NV (CNH) continues to face significant headwinds from tariffs, which negatively impacted margins in both agriculture and construction segments during the quarter.
- The agriculture industry remains in a downturn, with farm profitability pressured by commodity prices at or below breakeven levels and elevated input costs, leading to cautious farmer spending.
- South America, particularly Brazil, experienced a sharp decline in demand, with agriculture sales down 27% year-over-year in Q2, and the region remains a key risk area for the company.
- The company's financial services segment saw a decline in net income due to margin compression and higher risk costs, especially in Brazil, with delinquency rates rising year-over-year.
- CNH Industrial NV (CNH) expects an L-shaped recovery with 2027 retail demand remaining broadly flat, indicating a prolonged period of subdued market conditions.
Good morning, and welcome to the CNH 2026 second quarter results conference call.
(Operator Instructions)
I will now turn the call over to Jason Omerza, Vice President of Investor Relations.
Thank you, Paige, and good morning, everyone. We would like to welcome you to CNH's second quarter earnings call for the period ending June 30, 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 company's most recent
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
