CNH Industrial posted weaker third‑quarter results on November 7, with consolidated revenues of $4.4 billion, down 5 percent year‑over‑year, and net sales for Industrial Activities of $3.7 billion, down 7 percent. A combination of dealer inventory reductions and softer end‑market demand drove the decline, leaving adjusted EBIT for Industrial Activities at $104 million, a 69 percent plunge that pushed the adjusted EBIT margin down to 2.8 percent, a 560‑basis‑point deterioration from the year‑ago quarter. Net income fell to $67 million, a 78 percent decline.

Management highlighted that dealers are independent businesses that control their own inventory decisions, and many have reduced on‑hand stock in this quarter. That pullback translated into lower shipments even as CNH continues to monitor supply‑chain dynamics and regional demand drivers. Agriculture net sales, the largest component of industrial activities, were $2,963 million, down 10 percent year‑over‑year (12 percent on a constant‑currency basis). Construction equipment net sales rose to $739 million, up 8 percent (6 percent on a constant‑currency basis), reflecting some resilience in infrastructure and nonfarm investment segments.

The magnitude of the margin compression and earnings decline reflects both volume weakness and lingering cost pressure. CNH said it is pursuing ongoing cost‑savings programs to offset headwinds while keeping order books open for model‑year 2026 equipment shipments. The firm also reiterated a continued commitment to what it calls “Iron + Tech” investments — spending aimed at core equipment performance and digitalization/automation — signaling a strategic tilt toward modernizing its product portfolio even during a cyclical lull.

For investors and markets, the quarter sharpens two competing narratives. On the near term, falling margins and reduced profitability raise questions about free cash flow and potential pressure on valuation multiples in a capital‑intensive industry. Prolonged dealer destocking could compress revenues further into early 2026. On the longer horizon, CNH’s stated investment in technology and cost programs is consistent with industry trends toward electrification, telematics and precision agriculture, which could support differentiation and pricing power when the cycle recovers.

Macroeconomic factors that have weighed on demand include tighter financing conditions and cyclical farm incomes, which historically drive tractor and combine purchases. The company’s geographic performance varied by region, and management said it is actively monitoring those disparities while scheduling a Tech Day at Agritechnica on November 11 to showcase product and digital strategy, streamed at 2:00pm CET (8:00am ET) via bit.ly/CNHtechday2025.

Taken together, the quarter underlines the volatility inherent in agricultural and construction equipment markets: earnings can swing sharply with dealer inventory moves and end‑market cash flows, but targeted technology investments and cost discipline remain the levers CNH is using to navigate this cycle and position for recovery.