CNH Industrial Reports Flat Q1 Revenues Amid Agricultural Downturn
Event summary
- Q1 2026 revenues flat at $3.8 billion YoY, with net income dropping to $10 million from $132 million in Q1 2025.
- Agriculture segment sales up 1% but EBIT margin collapsed to 1.0% from 5.4% due to low North American demand and tariffs.
- Construction segment sales down 3%, with EBIT margin turning negative at -4.9% from 2.4%.
- Free cash flow absorption of $589 million in Q1 2026, compared to $567 million in Q1 2025.
- Full-year guidance reaffirmed despite challenging market conditions.
The big picture
CNH Industrial's Q1 results reflect broader challenges in the agricultural equipment sector, including low commodity prices and trade uncertainties. The company is navigating a cyclical downturn while managing structural headwinds like tariffs and input cost inflation. Its ability to maintain margins and free cash flow will be critical as it positions for an eventual market recovery.
What we're watching
- Market Recovery Timing
- The pace at which agricultural equipment demand rebounds in North America and Brazil will determine CNH's ability to meet full-year guidance.
- Cost Management
- Whether CNH can sustain operational efficiency gains amid tariff pressures and higher SG&A expenses.
- Construction Segment Turnaround
- How quickly the construction segment can offset volume declines with pricing and manufacturing efficiencies.
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