Net sales were down across the board in CNH Industrial’s first-quarter earnings report, and continued declines are forecast for the rest of the year.
Consolidated net sales for the Case and New Holland parent in the quarter came in at $3.8 billion, down 21% from $4.8 billion in last year’s first quarter. Net income was down 64% year-over-year to $132 million.
Total construction net sales in the quarter came in at $591 million, down 22% year-over-year from $758 million. Additionally, CNH Industrial’s gross profit margin in the segment dropped from 17.4% to 14.9%.
Adjusted earnings before interest and taxes (EBIT) in CNH’s construction business totaled $14 million in the first quarter, a 73% year-over-year decline. CNH attributed this to several factors, including a $38 million decline in shipment volumes, but also acknowledged it was partially offset by improved purchasing and manufacturing costs and management of general expenses.
During the earnings call, CEO Gerrit Marx said a big focus in the quarter was reducing dealer inventories. “We are working very closely with our dealer network and supporting them with marketing actions and to reciprocate exchange of information to achieve lower, healthier inventory levels while preparing for a great fresh model-year 2026 lineup to come very soon.”
For 2025, CNH forecasts construction net sales will be down 4% to 15% compared to 2024. This includes its forecast of continued declining retail sales for construction equipment and its plans to continue reducing excess equipment inventory by less production.
Production hours on manufacturing construction equipment was down 19% year-over-year in the first quarter.
The wide range given for the decline in 2025 construction net sales comes from CNH Industrial’s evaluation of the ongoing global tariff situation, which factors in possible reactions from U.S. trade partners and future tariff increases.
