CNH Industrial forecasts lower FY profits on declining agriculture, construction equipment sales

Reuters – CNH Industrial CNH.N on Tuesday forecast 2025 profit below Wall Street’s estimates, as it expects sales to be lower year-over-year in both its agriculture and construction equipment markets in 2025, sending its shares down 3.7 per cent before the bell.

The Basildon, UK-based company expects 2025 adjusted earnings to be in the range of 65 cents to 75 cents per share, missing analysts’ estimates of 85 cents per share, according to data compiled by LSEG.

The company said it continues to produce fewer units than the retail demand to reduce elevated inventory levels at its dealers. CNH exited its third quarter with $1 billion to $1.5 billion in excess dealer inventories, it said in its previous earnings call.

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It expects sales in its agriculture segment to be down between 13 and 18 per cent year-over-year, while sales in the construction segment is expected to fall between 5 and 10 per cent.

The forecast comes days after peers Deere DE.N and AGCO AGCO.N released their full-year forecasts, which also failed to impress Wall Street.

Farm equipment demand remains subdued due to falling farm incomes globally, forcing farmers to rethink their big-ticket purchases, leading to higher inventories at dealerships and moderation in restocking efforts.

CNH, famous for its Case IH and New Holland brand of tractors, reported quarterly net sales of $4.88 billion, down 28% from the same period last year, but beats analysts’ estimates of $4.51 billion.

The company, formed through the merger of Fiat Industrial and CNH Global in 2013, reported quarterly adjusted profit of 15 cents per share, missing estimates of 18 cents per share.