NYSE:CNH
CNH Industrial N.V.
A diversified global powerhouse manufacturing agricultural and construction machinery with a strong focus on electrification and autonomous technology.
Key Metrics
Investment Thesis
Bull Case
Investors may view CNH as an attractive value play given its low revenue multiple relative to peers and the potential for margin expansion if the company successfully executes its electrification strategy. The company's strong cash generation capabilities historically support robust dividends, which could provide a steady income stream once market conditions stabilize.
Bear Case
The sharp contraction in revenue over the last two years combined with a significant drop in net income highlights the company's vulnerability to economic slowdowns and demand softness in key markets. High debt levels and negative changes in working capital suggest liquidity constraints that could limit the company's ability to invest in R&D or weather future downturns.
About CNH Industrial N.V.
CNH Industrial N.V. is a global leader in agricultural, construction, and industrial machinery, serving markets across North America, Europe, Asia, and emerging economies. The company manufactures and distributes high-performance equipment for farming, earthmoving, power generation, and specialized industrial applications. Its portfolio includes well-known brands such as Case IH, New Holland, JCB, and Universal Robots, catering to diverse sectors requiring durable machinery.
Analysis
Management Discussion
Despite a revenue decline from $24.69B in 2023 to $18.09B in 2025, the company maintained profitability with net income dropping to $505M, reflecting challenging market conditions and significant cost pressures. The substantial decrease in cash flow from operations compared to historical norms suggests a need for rigorous capital discipline or restructuring efforts during this downturn.
Industry Overview
The global agricultural and construction equipment industry is currently navigating a post-pandemic recovery phase characterized by inflationary pressures and shifting demand patterns. Companies in this sector are increasingly focusing on sustainability, digitalization, and electrification to maintain competitive relevance amidst regulatory changes.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $23.55B | $24.69B | $19.84B | $18.09B |
| Cost of Revenue | $16.80B | $16.84B | $13.35B | $12.39B |
| Gross Profit | $6.75B | $7.85B | $6.49B | $5.71B |
| Operating Expenses | $4.07B | $5.15B | $5.03B | $5.09B |
| Operating Income | $2.68B | $2.70B | $1.46B | $620.0M |
| R&D | $866.0M | $1.04B | $924.0M | $1.02B |
| G&A | $1.75B | $1.86B | $1.71B | $1.88B |
| Stock-Based Comp | $87.0M | $99.0M | $71.0M | $45.0M |
| Depreciation | $198.0M | $213.0M | $235.0M | $267.0M |
| Amortization | $130.0M | $164.0M | $182.0M | $165.0M |
| Other OpEx | $1.45B | $2.24B | $2.39B | $2.19B |
| Non-Operating Income | $0 | $0 | $0 | $0 |
| Interest Expense | $734.0M | $1.34B | — | — |
| Pre-Tax Income | $2.68B | $2.70B | $1.46B | $620.0M |
| Income Tax | $747.0M | $594.0M | $336.0M | $184.0M |
| Continuing Ops | $2.04B | $2.38B | $1.12B | $436.0M |
| Discontinued Ops | $0 | $0 | $138.0M | $69.0M |
| Net Income | $2.04B | $2.38B | $1.26B | $505.0M |
| Minority Interest | $10.0M | $12.0M | $13.0M | $-5.0M |
| Net to Common | $2.03B | $2.37B | $1.25B | $510.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Cash & Equivalents | $4.38B | $4.32B | $3.19B | $2.58B |
| Inventory | $4.81B | $5.54B | $4.78B | $4.65B |
| PP&E (Net) | $1.53B | $1.91B | $1.94B | $2.18B |
| Intangibles | $1.13B | $1.29B | $1.22B | $1.09B |
| Goodwill | $3.32B | $3.61B | $3.58B | $3.62B |
| Operating Leases | $225.0M | $297.0M | $275.0M | $264.0M |
| Total Assets | $39.38B | $46.35B | $42.93B | $42.75B |
| Total Liabilities | $32.41B | $38.12B | $35.16B | $34.92B |
| Shareholders' Equity | $6.98B | $8.23B | $7.77B | $7.83B |
| Retained Earnings | $7.91B | $9.75B | $10.31B | $10.51B |
| AOCI | $-2.28B | $-2.37B | $-2.71B | $-2.77B |
| Treasury Stock | $230.0M | $865.0M | $1.39B | $1.42B |
| Total L&E | $39.38B | $46.35B | $42.93B | $42.75B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $2.04B | $2.38B | $1.26B | $505.0M |
| Non-Cash Adjustments | $-4.02B | $-4.08B | $-1.72B | $3.62B |
| Working Capital Changes | $2.54B | $2.61B | $2.42B | $-1.59B |
| Cash from Operations | $557.0M | $907.0M | $1.97B | $2.54B |
| Cash from Investing | $-3.01B | $-3.70B | $-2.77B | $-1.38B |
| Debt Issuances | $11.18B | $9.94B | $15.11B | $12.98B |
| Debt Repayments | $9.22B | $8.22B | $13.45B | $13.01B |
| Dividends Paid | $423.0M | $538.0M | $607.0M | $333.0M |
| Cash from Financing | $1.96B | $2.60B | $-67.0M | $-2.02B |
| FX Effect | $-228.0M | $110.0M | $-308.0M | $225.0M |
| Net Change in Cash | $-716.0M | $-84.0M | $-1.18B | $-637.0M |
| Beginning Cash | $5.84B | $5.13B | $5.04B | $3.87B |
| Ending Cash | $5.13B | $5.04B | $3.87B | $3.23B |
Frequently Asked Questions
How does CNH Industrial N.V. make money?
The company's revenue is driven by four primary segments: Agricultural Machinery (tractors, harvesters, and tractors), Construction Equipment (excavators, loaders, and cranes), Industrial Engines and Power Generation (diesel and gas engines for stationary power), and Specialized Solutions (including forestry equipment and autonomous robotics).
What are the main risks for CNH?
Fluctuations in raw material costs like steel and electronics impacting margins, intense price competition from rivals like Caterpillar and Deere, exposure to global supply chain disruptions affecting inventory levels, and foreign exchange volatility affecting international earnings.
What is CNH's competitive advantage?
CNH leverages a vast global dealer network providing comprehensive service and parts support, possesses deep engineering expertise in electrification to meet emission regulations, and maintains a diversified product portfolio that reduces reliance on any single market cycle.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.