CNH Industrial reported net income for the three months ended June 30, 2026, of USD 141 million, compared with Net income of USD 217 in Q2 2025. Adjusted net income for the second quarter of 2026 was USD 161 million compared to USD 216 million for the second quarter of 2025.
Consolidated revenues for the second quarter ended June 30, 2026, were USD 4.80 billion, and net sales of industrial activities were USD 4.14 billion, both up compared to Q2 2025. Net cash provided by operating activities was USD 145 million, and free cash flow of industrial activities was USD 150 million in Q2 2026.
“Our second quarter results reflect disciplined execution by the CNH team in a market that remains at the trough of the agriculture cycle,” said Gerrit Marx, Chief Executive Officer of CNH. “Despite the industry conditions, we delivered year-over-year revenue growth and continued progress on our strategic priorities, including quality, sourcing, operational efficiency, and dealer network consolidation. While farmer economics remain pressured, we are seeing constructive equipment-cycle indicators, including dealer inventory normalization, aging fleets, and a more balanced relationship between new and used equipment pricing. We remain focused on supporting our dealers and customers today while investing in the iron and technology capabilities that will strengthen CNH through the next cycle.”
Regional differences
In North America, second quarter industry sales volume was down 16% year-over-year for tractors under 140 HP and down 17% for tractors over 140 HP; combines were down 7%. In Europe, Middle East and Africa (“EMEA”), tractor and combine demand down 11% and 1%, respectively. South America saw tractor and combine demand decline 8% and 29%, respectively. In Asia Pacific, tractor demand increased 15%, while combine demand decreased 48%.
Agriculture net sales were flat year-over-year in the quarter at USD 3.3 billion, a result of favorable price realization, offset by lower volumes in South America.
Adjusted EBIT decreased to USD 170 million from USD 263 million in Q2 2025, primarily due to lower volumes in South America, unfavorable mix in North America and EMEA, the impact of tariffs, higher selling, general and administrative expenses (“SG&A”) and research and development expenses (“R&D”) and lower joint venture results. SG&A expenses were mainly impacted by higher labor costs. R&D expenses represented 6.1% of sales in Q2 2026 (6.0% in Q2 2025).
Positive trend in construction
Global industry sales volume for construction equipment increased 17% year-over-year in the second quarter for heavy equipment and 6% for light equipment. Aggregated demand increased 5% in North America, 9% in EMEA, 12% in South America, and 16% in Asia Pacific. Construction net sales increased 12% in the quarter to USD 866 million, driven by higher volumes in North America and included shipments that were initially delayed during the first quarter of 2026.
Adjusted EBIT decreased to USD 15 million from USD 35 million in Q2 2025, primarily due to the impact of tariffs and higher R&D expenses, partially offset by higher volumes and lower SG&A expenses. SG&A benefited from the absence of prior year non-recurring costs, partially offset by higher labor costs.
Decrease in financing
Financial Services revenues decreased 4% in the quarter, largely driven by unfavorable volumes in South America and North America, reduced used equipment sales due to fewer operating lease maturities, and lower yields in all regions except South America, partially offset by favorable currency translation.
Net income was USD 71 million in the quarter, a decrease of USD 16 million versus Q2 2025, largely driven by margin compression in all regions except North America, lower volumes in South America and North America, higher risk costs in Brazil, and increased labor costs, partially offset by a lower effective tax rate.
The managed portfolio (including unconsolidated joint ventures) was USD 28.0 billion as of June 30, 2026 (of which retail was 70% and wholesale was 30%), down USD 0.7 billion compared to June 30, 2025 (down USD 0.7 billion on a constant currency basis).
