CNH Industrial, parent company of Case and New Holland, reported another tough quarter for its construction equipment business as it continues to slash production hours to aid dealer destocking.
Construction net sales came in at $773 million, down 13% from $890 million, driven mostly by lower shipment volumes in the declining North American market. CNH Industrial’s construction sales volume in the quarter was down $29 million year-over-year.
For the first six months of the year, CNH Industrial’s construction net sales were down 17% to $1.4 billion.
Gross profit from CNH Industrial’s construction business came in at $121 million in the second quarter, an 18% year-over-year decline. For the first six months of the year, gross profit was $209 million, down 25% from the first half of 2024.
CNH Industrial’s construction equipment production hours were down 15% year-over-year in the second quarter and down 17% for the first six months of the year. Construction dealer inventory fell 12% in the second quarter.
CNH Industrial is forecasting its full year 2025 construction net sales to be down 4% to 15%. However, the changing global environment, including uncertain U.S. trade policies, could impact the company’s forecasts.
Consolidated revenue in the second quarter came in at $4.7 billion, down 14% from $5.5 billion the second quarter of 2024. CNH attributed this mainly to lower shipments on decreased industry demand and dealer destocking.
Consolidated revenue for the first six months of the year was down 17% year-over-year to $8.5 billion.
Total net income fell 47% year-over-year to $217 million and was down 55% in the first six months of the year to $349 million.
