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CNH Industrial (NYSE: CNH) Q2 profit falls as 2026 outlook is raised

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

CNH Industrial reported Q2 2026 consolidated revenues of $4.803 billion, up 2% year over year, while net income fell to $141 million and diluted EPS to $0.11, with adjusted net income of $161 million. Net sales of Industrial Activities were $4.143 billion, up 3%, but adjusted EBIT for Industrial Activities declined 25% to $167 million and margin to 4.0%.

Agriculture net sales were roughly flat at $3.3 billion, but adjusted EBIT dropped to $170 million and margin to 5.2% as weaker South American volumes, unfavorable mix, tariffs and higher labor, SG&A and R&D costs pressured profitability. Construction net sales rose 12% to $866 million, yet adjusted EBIT fell to $15 million and margin to 1.7% due to tariffs and higher R&D. Financial Services revenues declined 4% to $656 million and net income to $71 million, with receivables over 30 days past due rising to 4.4% of receivables.

Operating cash flow in Q2 was $145 million versus $772 million a year earlier, and Industrial Activities free cash flow was $150 million. The company returned $0.2 billion to shareholders via dividends and buybacks. Management describes 2026 as a trough year for the agriculture cycle but narrowed full‑year 2026 guidance to the higher end of prior ranges, now targeting Industrial Activities net sales flat to up 2%, adjusted EBIT margin of 3.2–3.8%, free cash flow of $200–$400 million and adjusted diluted EPS of $0.41–$0.46.

Positive

  • Full‑year 2026 guidance was narrowed toward the higher end of prior ranges, with adjusted diluted EPS now expected between $0.41 and $0.46 and Industrial Activities free cash flow between $200–$400 million.
  • Despite an agriculture cycle trough, Q2 2026 consolidated revenues grew 2% to $4.803 billion and Industrial Activities net sales rose 3%, indicating some resilience in top‑line demand.

Negative

  • Q2 2026 net income declined 35% year over year to $141 million, and Industrial Activities adjusted EBIT margin compressed to 4.0% from 5.6%.
  • For the first six months of 2026, net income fell to $151 million from $349 million and operating cash flow dropped to $180 million from $934 million, reflecting much weaker profitability and cash generation.
  • Agriculture and Construction segment profitability deteriorated, with Q2 2026 Agriculture adjusted EBIT margin falling to 5.2% and Construction to 1.7%, both down several hundred basis points year over year.
  • Financial Services credit quality weakened as the receivable balance more than 30 days past due rose to 4.4% of receivables at June 30, 2026, versus 3.9% a year earlier.

Filing Explained

As of June 30, CNH reported $25,966 million of debt against $1,868 million of cash.

This Form 8-K records completed second-quarter results and an updated 2026 outlook furnished on August 3; its listed items are results disclosure and investor presentation, not an ownership transaction.

The additional structural information is liquidity: at June 30, CNH reported $1,868 million of cash and $25,966 million of debt, with total liabilities of $34,319 million.

CNH defines Industrial Activities free cash flow as operating cash flow after Financial Services cash flow and specified industrial investments; on that basis, the first half reported free cash flow used, rather than generated.

The next named checkpoint is the Q3 2026 earnings call scheduled for November 9, 2026, while management also identifies MY27 order intake as an indicator to watch.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01 Regulation FD Disclosure Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Q2 2026 Consolidated revenues $4,803 million Consolidated revenues in Q2 2026, up 2% versus Q2 2025
Q2 2026 Net income $141 million Net income for the three months ended June 30, 2026, versus $217 million in Q2 2025
Q2 2026 Adjusted net income $161 million Adjusted net income in Q2 2026 compared to $216 million in Q2 2025
Q2 2026 Adjusted EBIT of Industrial Activities $167 million Adjusted EBIT of Industrial Activities in Q2 2026, down 25% from $224 million
Q2 2026 Free cash flow of Industrial Activities $150 million Industrial Activities free cash flow in Q2 2026 versus $451 million in Q2 2025
Capital returned to shareholders Q2 2026 $0.2 billion Returned to shareholders in Q2 2026 through dividends and share repurchases
Managed portfolio Financial Services $28.0 billion Managed portfolio, including unconsolidated joint ventures, as of June 30, 2026
2026 Adjusted diluted EPS guidance $0.41–$0.46 Company’s updated 2026 adjusted diluted EPS outlook range
Adjusted EBIT financial
"Adjusted EBIT of Industrial Activities was 167 in Q2 2026"
Adjusted EBIT is a company’s operating profit before interest and taxes, but cleaned up by removing one-time or unusual items that can obscure ongoing performance. Investors use it like a tidied-up report card — it aims to show the underlying profitability of the business by excluding irregular gains, losses, or costs so comparisons across periods or companies are clearer and more meaningful for valuing operational strength.
Free cash flow of Industrial Activities financial
"Free cash flow of Industrial Activities was 150 million in Q2 2026"
Free cash flow of industrial activities is the cash a company’s factories and production operations actually generate after paying everyday operating bills and replacing or maintaining equipment. For investors it shows the real, usable cash coming from the core manufacturing business—think of it as the money left in your wallet after buying groceries and fixing your car—which indicates the company’s ability to fund growth, pay down debt, or return cash to shareholders.
Adjusted diluted EPS financial
"Adjusted diluted EPS was $0.13 in Q2 2026 and $0.27 year to date"
Adjusted diluted EPS is a company’s profit per share after adding back or removing one-time items (like restructuring costs or gains) and dividing by the number of shares including potential shares from options and convertible securities. Investors use it as a cleaner view of ongoing earnings—like looking at a car’s regular fuel efficiency rather than a trip boosted by downhill coasting—to judge underlying performance and compare companies without temporary distortions.
Managed portfolio financial
"The managed portfolio was $28.0 billion as of June 30, 2026"
A managed portfolio is a collection of investments that a professional manager or automated service actively oversees and adjusts to meet specific goals like growth, income, or risk control. It matters to investors because the manager makes choices about what to buy, sell and how to spread risk—like hiring a gardener to tend a mixed flower bed—so investors trade hands-on time and pay fees for the expertise and convenience of tailored, ongoing care.
Adjusted Effective Tax Rate financial
"The adjusted ETR was 25.1% for the second quarter of 2026"
The adjusted effective tax rate is the percentage of a company’s pre-tax income that it would normally pay in taxes after removing one-time or unusual items, giving a clearer view of its ongoing tax burden. Like clearing away exceptional expenses to see your regular monthly bill, this adjusted rate helps investors compare companies, forecast future profits and cash flow, and value a business without one-off swings distorting the picture.
Consolidated revenues $4,803 million +2% vs Q2 2025
Net sales of Industrial Activities $4,143 million +3% vs Q2 2025
Net income $141 million (35)% vs Q2 2025
Adjusted net income $161 million (25)% vs Q2 2025
Diluted EPS $0.11 $(0.06) vs Q2 2025
Adjusted diluted EPS $0.13 $(0.04) vs Q2 2025
Adjusted EBIT of Industrial Activities $167 million (25)% vs Q2 2025
Adjusted EBIT margin of Industrial Activities 4.0% (160) bps vs Q2 2025
Operating cash flow $145 million $(627) million vs Q2 2025
Free cash flow of Industrial Activities $150 million $(301) million vs Q2 2025
Guidance

For 2026, Agriculture segment net sales are expected to be about flat year over year with adjusted EBIT margin between 5.0% and 5.5%. Construction segment net sales are forecast up 5–10% year over year with adjusted EBIT margin between 1.8% and 2.3%. Industrial Activities net sales are expected to be flat to up 2% with adjusted EBIT margin of 3.2–3.8%. Industrial Activities free cash flow is guided to $200–$400 million, and adjusted diluted EPS to a range of $0.41–$0.46.

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FAQ

How did CNH (CNH) perform financially in Q2 2026?
CNH reported Q2 2026 revenues of $4.803 billion, up 2% year over year, and net income of $141 million, down 35%. Adjusted net income was $161 million and diluted EPS was $0.11, with adjusted diluted EPS of $0.13.

How did CNH (CNH) business segments perform in Q2 2026?
Agriculture net sales were about $3.3 billion with 5.2% adjusted EBIT margin, while Construction net sales reached $866 million with 1.7% margin. Financial Services generated $656 million in revenues and $71 million in net income in Q2 2026.

What was CNH (CNH) cash flow and leverage situation in mid‑2026?
For Q2 2026, CNH generated $145 million of operating cash flow and $150 million of Industrial Activities free cash flow. Year‑to‑date, cash from operations was $180 million. Consolidated net debt stood at $23,350 million at June 30, 2026.

What 2026 outlook did CNH (CNH) provide for revenue and margins?
CNH now expects Industrial Activities net sales to be flat to up 2% in 2026 with adjusted EBIT margin of 3.2–3.8%. Agriculture net sales are forecast about flat with 5.0–5.5% margin, and Construction net sales up 5–10% with 1.8–2.3% margin.

What earnings and free cash flow guidance did CNH (CNH) give for 2026?
CNH guided to 2026 adjusted diluted EPS between $0.41 and $0.46 and Industrial Activities free cash flow between $200 million and $400 million. This narrows guidance toward the higher end of previously communicated forecast ranges.

How is the agriculture cycle impacting CNH (CNH) in 2026?
Management describes 2026 as a trough year for the agriculture industry. Farmer economics are pressured by low commodity prices and high input costs, while CNH keeps agriculture production low and works with dealers to reduce channel inventory and pursue cost efficiencies.
0001567094false00015670942026-08-032026-08-030001567094us-gaap:CommonStockMember2026-08-032026-08-030001567094cnhi:A3850NotesDue2027Member2026-08-032026-08-03

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
CNH Corporate Logo.jpg
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d)
of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 3, 2026
CNH INDUSTRIAL N.V.
(Exact name of registrant as specified in its charter)
Netherlands001-3608598-1125413
(State or other jurisdiction of incorporation)(Commission File Number)(I.R.S. Employer Identification No.)
Cranes Farm Road, Basildon, Essex, SS14 3AD, United Kingdom
N/A
(Address of principal executive offices)(Zip Code)
+44 2079 251964
Registrant’s telephone number including area code

N/A
(Former name, former address and former fiscal year, if changed since last report):
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))     

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Shares, par value €0.01CNH
New York Stock Exchange
3.850% Notes due 2027CNH27New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Exchange Act of 1934(§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02.    Results of Operations and Financial Condition.

On August 3, 2026, CNH Industrial N.V. issued a press release announcing its results of operations for the second quarter of 2026. A copy of the press release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.

Item 7.01.    Regulation FD Disclosure.

On August 3, 2026, CNH Industrial N.V. made available a presentation providing a review and highlights of its second quarter of 2026 results of operations and related information, which is being made available in connection with a August 3, 2026 investor conference call. A copy of that slide presentation is furnished herewith as Exhibit 99.2 and is incorporated herein by reference.

Item 9.01.     Financial Statements and Exhibits.

(d) Exhibits.
Exhibit 99.1
CNH Industrial’s press release dated August 3, 2026, announcing its results of operations for the second quarter of 2026
Exhibit 99.2
CNH Industrial N.V. second quarter 2026 results review presentation
Exhibit 104Cover Page Interactive Data File (embedded within the Inline XBRL document)

















































SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

CNH INDUSTRIAL N.V.
By:/s/ Britton Worthen
Name:Britton Worthen
Title:Chief Legal and Compliance Officer
Date: August 3, 2026

cnhcorporatelogoa.jpgimagea.jpg      Exhibit 99.1    
CNH Industrial N.V. Reports Second Quarter 2026 Results
Consolidated revenues for the second quarter of 2026 were $4.8 billion, up 2% year-over-year
Reported Net income of $141 million and adjusted Net income(1) of $161 million
Second quarter diluted earnings per share at $0.11
Returned $0.2 billion to shareholders through dividends and share repurchases
Full-year guidance narrowed to the higher end of the previous ranges

Basildon, UK - August 3, 2026 - CNH Industrial N.V. (NYSE: CNH) reported Net income for the three months ended June 30, 2026, of $141 million, with basic earnings per share and diluted earnings per share of $0.11, compared with Net income of $217 million and basic earnings per share and diluted earnings per share of $0.17 in Q2 2025. Adjusted Net income(1) for the second quarter of 2026 was $161 million compared to $216 million for the second quarter of 2025.
Consolidated revenues for the second quarter ended June 30, 2026, were $4.80 billion, and Net Sales of Industrial Activities were $4.14 billion, both up compared to Q2 2025.
Net cash provided by operating activities was $145 million, and Free cash flow of Industrial Activities was $150 million in Q2 2026.
Income tax expense was $43 million ($76 million in Q2 2025) with an effective tax rate (“ETR”) of 25.0% (27.6% in Q2 2025). The adjusted ETR(1) was 25.1% for the second quarter (27.7% in Q2 2025).
“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.”

2026 Second Quarter Results

US-GAAP
($ millions, except per share data)Q2 2026Q2 2025Change
Change at c.c.(2)
Consolidated revenues4,8034,711+2%—%
of which Net sales of Industrial Activities4,1434,021+3%1%
Net income141217(35)%
Diluted EPS0.110.17(0.06)
Cash flow provided by operating activities145772(627)
NON-GAAP(1)
($ millions, except per share data)Q2 2026Q2 2025Change
Adjusted EBIT of Industrial Activities167224(25)%
Adjusted EBIT margin of Industrial Activities4.0%5.6%(160) bps
Adjusted Net income161216(25)%
Adjusted diluted EPS $0.130.17(0.04)
Free cash flow of Industrial Activities150451(301)
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Agriculture
($ millions)Q2 2026Q2 2025Change
Change at c.c.(2)
Net sales 3,2773,248+1%(1)%
Adjusted EBIT170263(35)%
Adjusted EBIT margin(1)
5.2%8.1%(290) bps
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 $3.3 billion, a result of favorable price realization, offset by lower volumes in South America.
Adjusted EBIT decreased to $170 million from $263 million in Q2 2025, primarily due to lower volumes in South America, unfavorable mix in North America and EMEA, the impact of tariffs, higher Selling, general and administrative expenses (“SG&A”) and Research and development expenses (“R&D”) and lower joint venture results. SG&A expenses were mainly impacted by higher labor costs. R&D expenses represented 6.1% of sales in Q2 2026 (6.0% in Q2 2025).
Construction
($ millions)Q2 2026Q2 2025Change
Change at c.c.(2)
Net sales866773+12%+10%
Adjusted EBIT1535(57)%
Adjusted EBIT margin(1)
1.7%4.5%(280) bps
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 $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 $15 million from $35 million in Q2 2025, primarily due to the impact of tariffs and higher R&D expenses, partially offset by higher volumes and lower SG&A expenses. SG&A benefited from the absence of prior year non-recurring costs, partially offset by higher labor costs.
Financial Services
($ millions)Q2 2026Q2 2025Change
Change at c.c.(2)
Revenues656685(4)%(7)%
Net income7187(18)%
Equity at quarter-end2,9232,907+16
Retail loan originations2,5312,740(209)
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 $71 million in the quarter, a decrease of $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 $28.0 billion as of June 30, 2026 (of which retail was 70% and wholesale was 30%), down $0.7 billion compared to June 30, 2025 (down $0.7 billion on a constant currency basis(2)).
As of June 30, 2026, the receivable balance greater than 30 days past due, as a percentage of receivables, was 4.4% (3.9% as of June 30, 2025), due to economic factors impacting farmers, specifically in South America.

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Results for the Six Months Ended June 30, 2026

US-GAAP
($ millions)YTD Q2 2026YTD Q2 2025Change
Change at c.c.(2)
Consolidated revenue8,6298,539+1%(2)%
of which Net sales of Industrial Activities7,3137,193+2%(1)%
Net income151349(57)%
Diluted EPS $0.120.27(0.15)
Cash flow provided by operating activities180934(754)
NON-GAAP(1)
($ millions)YTD Q2 2026YTD Q2 2025Change
Adjusted EBIT of Industrial Activities122325(62)%
Adjusted EBIT margin of Industrial Activities1.7%4.5%(280) bps
Adjusted Net income182348(48)%
Adjusted diluted EPS $0.140.27(0.13)
Free cash flow used in Industrial Activities(439)(116)(323)
Agriculture
($ millions)YTD Q2 2026YTD Q2 2025Change
Change at c.c.(2)
Net sales5,8735,829+1%(2)%
Adjusted EBIT197402(51)%
Adjusted EBIT margin(1)
3.4%6.9%(350) bps
Construction
($ millions)YTD Q2 2026YTD Q2 2025Change
Change at c.c.(2)
Net sales1,4401,364+6%+3%
Adjusted EBIT(13)49(127)%
Adjusted EBIT margin(1)
(0.9)%3.6%(450) bps
Financial Services
($ millions)YTD Q2 2026YTD Q2 2025Change
Change at c.c.(2)
Revenues1,3021,336(3)%(6)%
Net income145177(18)%


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2026 Outlook
Farmers continue to face challenging market dynamics, including low commodity prices, high input costs, and an uncertain trade environment. CNH’s Agriculture segment has and will continue to respond to these market dynamics by maintaining low production levels, working with its dealer network to lower channel inventory, pursuing cost efficiencies, and managing rapid changes in trade policies. CNH’s Construction segment will continue to focus on quality, manufacturing efficiencies, and tariff cost offset opportunities.
CNH is benefitting from recent changes in tariff levels yet also incurring higher transportation costs and managing challenging market conditions in South America. In this trough year of the agriculture industry cycle, CNH is focusing on its sales execution, cost discipline, and manufacturing performance. We forecast that we will deliver results at the higher end of the forecast ranges previously communicated.
Consequently, we are updating our 2026 outlook as follows:
•Agriculture segment net sales about flat year-over-year, including +2% currency translation effects
•Agriculture segment adjusted EBIT margin between 5.0% and 5.5%
•Construction segment net sales up between 5% to 10% year-over-year, including +2% currency translation effects
•Construction segment adjusted EBIT margin between 1.8% and 2.3%
•Free Cash Flow of Industrial Activities(3) between $200 million and $400 million
•Adjusted diluted EPS(3) between $0.41 to $0.46
Notes
CNH reports quarterly and annual consolidated financial results under U.S. GAAP and annual consolidated financial results under EU-IFRS. The tables and discussion related to the financial results of the Company and its segments shown in this press release are prepared in accordance with U.S. GAAP.
(1)These items are non-GAAP financial measures. Refer to the “Non-GAAP Financial Information” section of this press release for information regarding non-GAAP financial measures. Refer to the “Other Supplemental Financial Information” section for the reconciliation between the non-GAAP financial measure and the most comparable GAAP financial measure.
(2)c.c. means at constant currency.
(3)The Company is unable to provide this reconciliation without unreasonable effort due to the uncertainty and inherent difficulty of predicting the occurrence, the financial impact, and the periods in which the adjustments may be recognized. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could be material to future results.
The following applies to the information throughout this release:
•See tables later in this release for the reconciliations of the non-GAAP financial measures to the most comparable financial measures calculated in accordance with U.S. generally accepted accounting principles (“GAAP”).
•The consolidated financial statements within this release should be read in conjunction with the Company’s Audited Consolidated Financial Statements and Notes for the year ended December 31, 2025, included in the Annual Report on Form 10-K. These Consolidated Statements of Operations represent the consolidation of all CNH Industrial N.V. subsidiaries.
•Industrial Activities represents the enterprise without Financial Services. Industrial Activities include the Company's Agriculture, Construction, and other corporate assets, liabilities, revenues and expenses not reflected within Financial Services.
•Certain financial information in this report has been presented by geographic area. Our geographical regions are: (a) North America; (b) EMEA; (c) South America and (d) Asia Pacific. The geographic designations have the following meanings:
•North America: United States, Canada, and Mexico;
•EMEA: member countries of the European Union, European Free Trade Association, the United Kingdom, Ukraine and Balkans, Türkiye, Uzbekistan, Pakistan, the African continent, and the Middle East;
•South America: Central and South America, and the Caribbean Islands; and
•Asia Pacific: Continental Asia (including the India subcontinent), Indonesia, Japan and Oceania.
Non-GAAP Financial Information
CNH monitors its operations through the use of several non-GAAP financial measures. CNH’s management believes that these non-GAAP financial measures provide useful and relevant information regarding its operating results and enhance the readers’ ability to assess CNH’s financial performance and financial position. Management uses these non-GAAP measures to identify operational trends, as well as make decisions regarding future spending, resource allocations and other operational decisions as they provide additional transparency with respect to our core operations. These non-GAAP financial measures have no standardized meaning under U.S.
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GAAP and are unlikely to be comparable to other similarly titled measures used by other companies and are not intended to be substitutes for measures of financial performance and financial position as prepared in accordance with U.S. GAAP.
CNH’s non-GAAP financial measures are defined as follows:
•Adjusted EBIT of Industrial Activities under U.S. GAAP: is defined as net income (loss) before the following items: Income taxes, Financial Services’ results, Industrial Activities’ interest expenses, net, foreign exchange gains/losses, finance and non-service component of pension and other post-employment benefit costs, restructuring and other transformation expenses, and certain non-recurring items. In particular, non-recurring items are specifically disclosed items that management considers rare or discrete events that are infrequent in nature and not reflective of on-going operational activities.
•Adjusted EBIT Margin of Industrial Activities: is computed by dividing Adjusted EBIT of Industrial Activities by Net Sales of Industrial Activities.
•Adjusted Net Income (Loss): is defined as net income (loss), less restructuring and other transformation charges and non-recurring items, after tax.
•Adjusted Diluted EPS: is computed by dividing Adjusted Net Income (loss) attributable to CNH Industrial N.V. by a weighted-average number of common shares outstanding during the period that takes into consideration potential common shares outstanding deriving from the CNH share-based payment awards, when inclusion is not anti-dilutive. When we provide guidance for adjusted diluted EPS, we do not provide guidance on an earnings per share basis because the GAAP measure will include potentially significant items that have not yet occurred and are difficult to predict with reasonable certainty prior to year-end.
•Adjusted Income Tax (Expense) Benefit: is defined as income taxes less the tax effect of restructuring and other transformation expenses and non-recurring items, and non-recurring tax charges or benefits.
•Adjusted Effective Tax Rate ("Adjusted ETR"): is computed by dividing a) adjusted income taxes by b) income (loss) before income taxes and equity income from unconsolidated affiliates, less restructuring and other transformation expenses and non-recurring items.
•Net Cash (Debt) and Net Cash (Debt) of Industrial Activities: Net Cash (Debt) is defined as total debt less intersegment notes receivable, cash and cash equivalents, restricted cash, other current financial assets (primarily current securities, short-term deposits and investments towards high-credit rating counterparties) and derivative hedging debt. CNH provides the reconciliation of Net Cash (Debt) to Total (Debt), which is the most directly comparable measure included in the consolidated balance sheets. Due to different sources of cash flows used for the repayment of the debt between Industrial Activities and Financial Services (by cash from operations for Industrial Activities and by collection of financing receivables for Financial Services), management separately evaluates the cash flow performance of Industrial Activities using Net Cash (Debt) of Industrial Activities.
•Free Cash Flow of Industrial Activities ("Industrial Free Cash Flow"): refers to Industrial Activities only, and is computed as consolidated cash flow from operating activities less: cash flow from operating activities of Financial Services; investments of Industrial Activities in assets sold under operating leases, property, plant and equipment and intangible assets; change in derivatives hedging debt of Industrial Activities; as well as other changes and intersegment eliminations.
•Change excl. FX or Constant Currency: CNH discusses the fluctuations in revenues on a constant currency basis by applying the prior year average exchange rates to current period’s revenues expressed in local currency in order to eliminate the impact of foreign exchange rate fluctuations.
Forward-looking Statements
All statements other than statements of historical fact contained in this filing including competitive strengths, business strategy, future financial position or operating results, budgets, projections with respect to revenue, income, earnings (or loss) per share, capital expenditures, dividends, liquidity, capital structure or other financial items, costs, and plans and objectives of management regarding operations and products, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act, and Section 21E of the Exchange Act. Forward-looking statements also include, but are not limited to, statements regarding the plans, objectives, strategies, financial performance and outlook, trends, and future performance of CNH and its subsidiaries on a standalone basis. These statements may include terminology such as "may", "will", "expect", "could", "should", "intend", "estimate", "anticipate", "believe", "outlook", "continue", "remain", "on track", "design", "target", "objective", "goal", "forecast", "projection", "prospects", "plan", or similar terminology. Forward-looking statements are not guarantees of future performance. Rather, they are based on current views, expectations, estimates, and assumptions, including, in some cases, estimates and data received from third parties, and involve known and unknown risks, uncertainties and other factors, many of which are outside our control and are difficult to predict. If any of these risks and uncertainties materialize (or they occur with a degree of severity that the Company is unable to predict) or if any other assumptions underlying any of the forward-looking statements prove to be incorrect, actual results or developments may differ materially from any future results or developments expressed or implied by the forward-looking statements.
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Factors, risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements include, among others: economic conditions in each of our markets, including the significant uncertainty caused by geopolitical events; production and supply chain disruptions, including industry capacity constraints, material availability, and global logistics delays and constraints; the many interrelated factors that affect consumer confidence and worldwide demand for capital goods and capital goods related products; changes in government policies regarding banking, monetary and fiscal policy; legislation, particularly pertaining to capital goods-related issues such as agriculture, the environment, debt relief and subsidy program policies, trade and commerce and infrastructure development; government policies on international trade and investment, including sanctions, import quotas, capital controls and tariffs; volatility in international trade caused by the imposition of tariffs, sanctions, embargoes, and trade wars; actions of competitors in the various industries in which we compete; development and use of new technologies and technological difficulties; the interpretation of, or adoption of new, compliance requirements with respect to engine emissions, safety, or other aspects of our products; labor relations; interest rates and currency exchange rates; inflation and deflation; energy prices; prices for agricultural commodities and material price increases; housing starts and other construction activity; weather conditions, particularly to the extent it impacts the agricultural industry; our ability to obtain financing or to refinance existing debt; price pressure on new and used equipment; the resolution of pending litigation and investigations on a wide range of topics, including dealer and supplier litigation, intellectual property rights disputes, product warranty and defective product claims, and emissions and/or fuel economy regulatory and contractual issues; security breaches, cybersecurity attacks, technology failures, and other disruptions to the information technology infrastructure of CNH and its suppliers and dealers; security breaches with respect to our products; our pension plans and other postemployment obligations; political and civil unrest; volatility and deterioration of capital and financial markets, including pandemics (such as the COVID-19 pandemic), terrorist attacks in Europe and elsewhere; the remediation of a material weakness; our ability to realize the anticipated benefits from our business initiatives as part of our strategic plan; including targeted restructuring actions to optimize our cost structure and improve the efficiency of our operations; our failure to realize, or a delay in realizing, all of the anticipated benefits of our acquisitions, joint ventures, strategic alliances or divestitures and other similar risks and uncertainties, and our success in managing the risks involved in the foregoing.
The foregoing list of factors is not exhaustive. CNH expressly disclaims any intention or obligation to provide, update or revise any forward-looking statements in this document to reflect any change in expectations or any change in events, conditions or circumstances on which these forward-looking statements are based. Further information concerning CNH including factors that potentially could materially affect CNH's financial results, is included in CNH's reports and filings with the U.S. SEC.
All future written and oral forward-looking statements by CNH or persons acting on the behalf of CNH are expressly qualified in their entirety by the cautionary statements contained herein or referred to above.
Additional factors could cause actual results to differ from those expressed or implied by the forward-looking statements included in the Company’s filings with the SEC (including, but not limited to, the factors discussed in our 2025 Annual Report on Form 10-K and subsequent quarterly reports on Form 10-Q).
Conference Call and Webcast
Today, at 9:00 a.m. EDT, management will hold a conference call to present second quarter 2026 results to financial analysts and institutional investors. The call can be followed live online and a recording will be available later on the Company’s website www.cnh.com. A presentation will be made available on the CNH website prior to the conference call.
CONTACTS
Media Inquiries – Laura Overall +44 207 925 1964 or Sara Granack +1 847 393 3604
(Email mediarelations@cnh.com)

Investor Relations – Jason Omerza +1 630 740 8079 or Joe Recendez + 1 708 932 5916
(Email investor.relations@cnh.com)


6
        
        
CNH INDUSTRIAL N.V.
Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2026 and 2025
(Unaudited)

Three Months Ended June 30,Six Months Ended June 30,
($ and shares in millions, except per share data)2026202520262025
Revenues
Net sales $4,143 $4,021 $7,313 $7,193 
Finance, interest and other income660 690 1,316 1,346 
Total Revenues4,803 4,711 8,629 8,539 
Costs and Expenditures
Cost of goods sold3,396 3,192 6,001 5,761 
Selling, general and administrative expenses494 478 959 864 
Research and development expenses230 218 462 402 
Restructuring and other transformation expenses27 5 31 11 
Interest expense372 360 737 722 
Other, net112 183 254 342 
Total Costs and Expenditures4,631 4,436 8,444 8,102 
Consolidated income before income taxes172 275 185 437 
Income tax expense(43)(76)(47)(123)
Equity income from unconsolidated affiliates12 18 13 35 
Net income141 217 151 349 
Net income attributable to noncontrolling interests3 4 6 5 
Net income attributable to CNH Industrial N.V.$138 $213 $145 $344 
Earnings per share attributable to CNH Industrial N.V.
Basic earnings per share$0.11 $0.17 $0.12 $0.28 
Diluted earnings per share$0.11 $0.17 $0.12 $0.27 
Weighted-average shares outstanding
Basic1,238 1,250 1,240 1,249 
Diluted1,241 1,253 1,242 1,253 
Cash dividends declared per common share$0.10 $0.25 $0.10 $0.25 








7
        
        
CNH INDUSTRIAL N.V.
Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025
(Unaudited)

($ millions)June 30, 2026December 31, 2025
Assets
Cash and cash equivalents$1,868 $2,578 
Restricted cash596 651 
Financing receivables, net22,520 23,105 
Financial receivables from Iveco Group N.V.238 195 
Inventories, net5,171 4,651 
Property, plant and equipment, net and Equipment under operating leases, net3,798 3,772 
Other intangible assets, net4,667 4,703 
Other receivables and assets3,314 3,092 
Total Assets$42,172 $42,747 
Liabilities and Equity
Debt$25,966 $26,762 
Financial payables to Iveco Group N.V.78 91 
Other payables and liabilities8,275 8,069 
Total Liabilities34,319 34,922 
Redeemable noncontrolling interest59 53 
Equity7,794 7,772 
Total Liabilities and Equity$42,172 $42,747 




















8
        
        
CNH INDUSTRIAL N.V.
Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2026 and 2025
(Unaudited)

Six Months Ended June 30,
($ millions)20262025
Cash Flows from Operating Activities
Net income$151 $349 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense, excluding assets under operating leases233 208 
Depreciation and amortization expense of assets under operating leases99 98 
Undistributed income (loss) from unconsolidated affiliates(9)11 
Other non-cash items212 183 
Changes in operating assets and liabilities:
Provisions(83)(153)
Deferred income taxes(72)(30)
Trade and financing receivables, net(10)443 
Inventories, net(436)(51)
Trade payables177 (8)
Other assets and liabilities(82)(116)
Net cash provided by operating activities180 934 
Cash Flows from Investing Activities
Additions to retail receivables(3,290)(3,701)
Collections of retail receivables3,893 3,810 
Expenditures for property, plant and equipment and intangible assets(210)(196)
Expenditures for assets under operating leases, net(281)(320)
Other, net(39)(215)
Net cash provided (used) by investing activities73 (622)
Cash Flows from Financing Activities
Net decrease in debt(835)(935)
Dividends paid(127)(321)
Purchase of treasury shares(62)(5)
Net cash used in financing activities(1,024)(1,261)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash6 230 
Net decrease in cash, cash equivalents and restricted cash(765)(719)
Cash, cash equivalents and restricted cash, beginning of period
3,229 3,866 
Cash, cash equivalents and restricted cash, end of period$2,464 $3,147 













9
        
        
CNH INDUSTRIAL N.V.
Supplemental Statements of Operations for the Three and Six Months Ended June 30, 2026 and 2025
(Unaudited)

Three Months Ended June 30, 2026Three Months Ended June 30, 2025
($ millions)Industrial ActivitiesFinancial ServicesEliminationsConsolidatedIndustrial ActivitiesFinancial ServicesEliminationsConsolidated
Revenues
Net sales $4,143 $— $— $4,143 $4,021 $— $— $4,021 
Finance, interest and other income24 656 (20)(4)660 39 685 (34)(4)690 
Total Revenues4,167 656 (20)4,803 4,060 685 (34)4,711 
Costs and Expenditures
Cost of goods sold3,396 — — 3,396 3,192 — — 3,192 
Selling, general and administrative expenses365 129 — 494 364 114 — 478 
Research and development expenses230 — — 230 218 — — 218 
Restructuring and other transformation expenses27 — — 27 5 — — 5 
Interest expense65 327 (20)(5)372 65 329 (34)(5)360 
Other, net(6)118 — 112 49 134 — 183 
Total Costs and Expenditures4,077 574 (20)4,631 3,893 577 (34)4,436 
Consolidated income before income taxes90 82 — 172 167 108 — 275 
Income tax expense(26)(17)— (43)(51)(25)— (76)
Equity income from unconsolidated affiliates6 6 — 12 14 4 — 18 
Net income$70 $71 $— $141 $130 $87 $— $217 

Six Months Ended June 30, 2026Six Months Ended June 30, 2025
($ millions)Industrial ActivitiesFinancial ServicesEliminationsConsolidatedIndustrial ActivitiesFinancial ServicesEliminationsConsolidated
Revenues
Net sales $7,313 $— $— $7,313 $7,193 $— $— $7,193 
Finance, interest and other income56 1,302 (42)(4)1,316 69 1,336 (59)(4)1,346 
Total Revenues7,369 1,302 (42)8,629 7,262 1,336 (59)8,539 
Costs and Expenditures
Cost of goods sold6,001 — — 6,001 5,761 — — 5,761 
Selling, general and administrative expenses722 237 — 959 669 195 — 864 
Research and development expenses462 — — 462 402 — — 402 
Restructuring and other transformation expenses31 — — 31 11 — — 11 
Interest expense120 659 (42)(5)737 120 661 (59)(5)722 
Other, net27 227 — 254 83 259 — 342 
Total Costs and Expenditures7,363 1,123 (42)8,444 7,046 1,115 (59)8,102 
Consolidated income (loss) before income taxes6 179 — 185 216 221 — 437 
Income tax expense(4)(43)— (47)(70)(53)— (123)
Equity income from unconsolidated affiliates4 9 — 13 26 9 — 35 
Net income$6 $145 $— $151 $172 $177 $— $349 
(4)Elimination of Financial Services’ interest income earned from Industrial Activities.
(5)Elimination of Industrial Activities’ interest expense to Financial Services.
10
        
        

CNH INDUSTRIAL N.V.
Supplemental Balance Sheets as of June 30, 2026 and December 31, 2025
(Unaudited)

June 30, 2026December 31, 2025
($ millions)Industrial ActivitiesFinancial ServicesEliminationsConsolidatedIndustrial ActivitiesFinancial ServicesEliminationsConsolidated
Assets
Cash and cash equivalents$1,294 $574 $— $1,868 $1,932 $646 $— $2,578 
Restricted cash114 482 — 596 109 542 — 651 
Financing receivables, net180 22,559 (219)(6)22,520 141 23,363 (399)(6)23,105 
Financial receivables from Iveco Group N.V.149 89 — 238 142 53 — 195 
Inventories, net5,081 90 — 5,171 4,564 87 — 4,651 
Property, plant and equipment, net and Equipment under operating leases, net2,198 1,600 — 3,798 2,199 1,573 — 3,772 
Other intangible assets, net4,497 170 — 4,667 4,533 170 — 4,703 
Other receivables and assets2,856 654 (196)(7)3,314 2,707 580 (195)(7)3,092 
Total Assets$16,369 $26,218 $(415)$42,172 $16,327 $27,014 $(594)$42,747 
Liabilities and Equity
Debt$4,302 $21,979 $(315)(6)$25,966 $4,385 $22,861 $(484)(6)$26,762 
Financial payables to Iveco Group N.V.2 76 — 78 3 88 — 91 
Other payables and liabilities7,135 1,240 (100)(7)8,275 7,012 1,167 (110)(7)8,069 
Total Liabilities11,439 23,295 (415)34,319 11,400 24,116 (594)34,922 
Redeemable noncontrolling interest59 — — 59 53 — — 53 
Equity4,871 2,923 — 7,794 4,874 2,898 — 7,772 
Total Liabilities and Equity$16,369 $26,218 $(415)$42,172 $16,327 $27,014 $(594)$42,747 
(6)Elimination of financial receivables/payables between Industrial Activities and Financial Services.
(7)Primarily represents the reclassification of deferred tax assets/liabilities in the same taxing jurisdiction and elimination of intercompany activity between Industrial Activities and Financial Services.




























11
        
        
CNH INDUSTRIAL N.V.
Supplemental Statements of Cash Flows for the Six Months Ended June 30, 2026 and 2025
(Unaudited)

Six Months Ended June 30, 2026Six Months Ended June 30, 2025
($ millions)
Industrial Activities
Financial ServicesEliminationsConsolidated
Industrial Activities
Financial ServicesEliminationsConsolidated
Cash Flows from Operating Activities
Net income$6 $145 $— $151 $172 $177 $— $349 
Adjustments to reconcile net income to net cash provided (used) by operating activities
Depreciation and amortization expense, excluding assets under operating leases230 3 — 233 206 2 — 208 
Depreciation and amortization expense of assets under operating leases1 98 — 99 3 95 — 98 
Undistributed loss (income) from unconsolidated affiliates120 (9)(120)(8)(9)140 (9)(120)(8)11 
Other non-cash items, net25 187 — 212 33 150 — 183 
Changes in operating assets and liabilities:
Provisions(85)2 — (83)(153)— — (153)
Deferred income taxes(22)(50)— (72)(11)(19)— (30)
Trade and financing receivables, net(3)(6)(1)(9)(10)(63)504 2 (9)443 
Inventories, net(570)134 — (436)(219)168 — (51)
Trade payables205 (29)1 (9)177 16 (21)(3)(9)(8)
Other assets and liabilities(147)65 — (82)(14)(103)1 (116)
Net cash provided (used) by operating activities(240)540 (120)180 110 944 (120)934 
Cash Flows from Investing Activities
Additions to retail receivables— (3,290)— (3,290)— (3,701)— (3,701)
Collections of retail receivables— 3,893 — 3,893 — 3,810 — 3,810 
Expenditures for property, plant and equipment and intangible assets(206)(4)— (210)(191)(5)— (196)
Expenditures for assets under operating leases, net— (281)— (281)— (320)— (320)
Other, net(228)189 — (39)(448)233 — (215)
Net cash provided (used) by investing activities(434)507 — 73 (639)17 — (622)
Cash Flows from Financing Activities
Net increase (decrease) in debt235 (1,070)— (835)450 (1,385)— (935)
Dividends paid(127)(120)120 (8)(127)(321)(120)120 (8)(321)
Purchase of treasury shares(62)— — (62)(5)— — (5)
Net cash provided (used) by financing activities46 (1,190)120 (1,024)124 (1,505)120 (1,261)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash(5)11 — 6 185 45 — 230 
Net decrease cash, cash equivalents and restricted cash(633)(132)— (765)(220)(499)— (719)
Cash, cash equivalents and restricted cash, beginning of period
2,041 1,188 — 3,229 2,421 1,445 — 3,866 
Cash, cash equivalents and restricted cash, end of period$1,408 $1,056 $— $2,464 $2,201 $946 $— $3,147 
(8)Elimination of dividends from Financial Services to Industrial Activities, which are included in Industrial Activities net cash provided (used) by operating activities.
(9)Elimination of certain minor activities between Industrial Activities and Financial Services.

12
        
        
CNH Industrial N.V.
Other Supplemental Financial Information
(Unaudited)

Adjusted EBIT of Industrial Activities by Segment
Three Months Ended June 30,Six Months Ended June 30,
($ millions)2026202520262025
Industrial Activities segments
Agriculture$170 $263 $197 $402 
Construction15 35 (13)49 
Unallocated items, eliminations and other(18)(74)(62)(126)
Total Adjusted EBIT of Industrial Activities$167 $224 $122 $325 

Reconciliation of Consolidated Net Income under U.S. GAAP to Adjusted EBIT of Industrial Activities
Three Months Ended June 30,Six Months Ended June 30,
($ millions)2026202520262025
Net income$141 $217 $151 $349 
Less: Income tax expense(43)(76)(47)(123)
Consolidated income before income taxes184 293 198 472 
Less: Financial Services
Financial Services Net income71 87 145 177 
Financial Services Income Taxes17 25 43 53 
Add back of the following Industrial Activities items:
Interest expense of Industrial Activities, net of Interest income and eliminations41 26 64 51 
Foreign exchange losses of Industrial Activities, net1 9 3 14 
Finance and non-service component of Pension and other postemployment benefit costs of Industrial Activities
2 3 6 7 
Adjustments for the following Industrial Activities items:
Restructuring and other transformation expenses27 5 31 11 
Other discrete items (10)
— — 8 — 
Total Adjusted EBIT of Industrial Activities$167 $224 $122 $325 
(10)For the six months ended June 30, 2026, this item included an $8 million non-cash impairment on a minority investment.
13
        
        
CNH Industrial N.V.
Other Supplemental Financial Information
(Unaudited)

Reconciliation of Total Debt to Net Debt under U.S. GAAP
Industrial ActivitiesFinancial ServicesConsolidated
($ millions)
June 30, 2026		December 31, 2025
June 30, 2026		December 31, 2025
June 30, 2026		December 31, 2025
Third party debt$(4,229)$(4,104)$(21,737)$(22,658)$(22,658)$(25,966)$(26,762)
Intersegment notes payable(73)(281)(242)(203)— — 
Financial payables to Iveco Group N.V.(2)(3)(76)(88)(78)(91)
Total Debt(4,304)(4,388)(22,055)(22,949)(26,044)(26,853)
Cash and cash equivalents 1,294 1,932 574 646 1,868 2,578 
Restricted cash 114 109 482 542 596 651 
Intersegment notes receivable242 203 73 281 — — 
Financial receivables from Iveco Group N.V.149 142 89 53 238 195 
Derivatives(15)(23)7 25 (8)2 
Net Debt$(2,520)$(2,025)$(20,830)$(21,402)$(23,350)$(23,427)

Reconciliation of Net Cash Provided (Used) by Operating Activities to Free Cash Flow of Industrial Activities under U.S. GAAP
Six Months Ended June 30,Three Months Ended June 30,
20262025($ millions)20262025
$180 $934 Net cash provided by Operating Activities$145 $772 
Less:
(420)(824)Net Cash provided (used) by Operating Activities of Financial Services, net of eliminations114 (186)
8 9 Change in derivatives hedging debt of Industrial Activities and other6 — 
(206)(191)Investments in property, plant and equipment, and intangible assets of Industrial Activities(114)(88)
(1)(44)
Other changes
(1)(47)
$(439)$(116)Free cash flow (used in) Industrial Activities$150 $451 














14
        
        
CNH Industrial N.V.
Other Supplemental Financial Information
(Unaudited)

Reconciliation of Adjusted Net Income and Adjusted Income Tax Expense to Net Income and Income Tax Expense and Calculation of Adjusted Diluted EPS and Adjusted ETR under U.S. GAAP
Six Months Ended June 30,Three Months Ended June 30,
20262025($ and shares of millions, except per share data)20262025
$151 $349 Net income$141 $217 
39 (1)Adjustments impacting Net income before Income tax expense and equity income from unconsolidated affiliates (a)27 (1)
(8)— Adjustments impacting Income tax expense (b)(7)— 
$182 $348 Adjusted Net income$161 $216 
$176 $343 Adjusted Net income attributable to CNH Industrial N.V.$158 $212 
1,242 1,253 Weighted-average shares outstanding – diluted1,241 1,253 
$0.14 $0.27 Adjusted diluted EPS$0.13 $0.17 
$185 $437 Consolidated income before income taxes$172 $275 
39 (1)Adjustments impacting Consolidated income before income taxes and equity income from unconsolidated affiliates (a)27 (1)
$224 $436 Adjusted consolidated income before income taxes and equity income from unconsolidated affiliates (A)$199 $274 
$(47)$(123)Income tax expense$(43)$(76)
(8)— Adjustments impacting Income tax expense (b)(7)— 
$(55)$(123)Adjusted income tax expense (B)$(50)$(76)
24.6 %28.2 %Adjusted effective tax rate (Adjusted ETR) (C=B/A)25.1 %27.7 %
(a) Adjustments impacting consolidated income before income taxes and equity income from unconsolidated affiliates
$31 $11 Restructuring and other transformation expenses$27 $5 
— (12)Pre-tax gain related to the 2021 U.S. healthcare plan modification— (6)
8 — Impairment of a minority investment— — 
$39 $(1)Total $27 $(1)
(b) Adjustments impacting Income tax expense
$(8)$— Tax effect of adjustments impacting consolidated income before income taxes and equity income from unconsolidated affiliates$(7)$— 
$(8)$— Total$(7)$— 


15
Q2 2026 FINANCIAL RESULTS August 3, 2026

 

Q2 2026 results | August 3, 20262 SAFE HARBOR STATEMENT AND DISCLOSURES All statements other than statements of historical fact contained in this presentation, including competitive strengths, business strategy, future financial position or operating results, budgets, projections with respect to revenue, income, earnings (or loss) per share, capital expenditures, dividends, liquidity, capital structure or other financial items, costs, and plans and objectives of management regarding operations and products, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act, and Section 21E of the Exchange Act. Forward-looking statements also include, but are not limited to, statements regarding the plans, objectives, strategies, financial performance and outlook, trends, and future performance of CNH and its subsidiaries on a standalone basis. These statements may include terminology such as “may”, “will”, “expect”, “could”, “should”, “intend”, “estimate”, “anticipate”, “believe”, “outlook”, “continue”, “remain”, “on track”, “design”, “target”, “objective”, “goal”, “forecast”, “projection”, “prospects”, “plan”, or similar terminology. Forward-looking statements are not guarantees of future performance. Rather, they are based on current views, expectations, estimates, and assumptions, including, in some cases, estimates and data received from third parties, and involve known and unknown risks, uncertainties, and other factors, many of which are outside our control and are difficult to predict. If any of these risks and uncertainties materialize (or they occur with a degree of severity that the Company is unable to predict) or if any other assumptions underlying any of the forward-looking statements prove to be incorrect, actual results or developments may differ materially from any future results or developments expressed or implied by the forward-looking statements. Factors, risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements include, among others: economic conditions in each of our markets, including the significant uncertainty caused by geopolitical events; production and supply chain disruptions, including industry capacity constraints, material availability, and global logistics delays and constraints; the many interrelated factors that affect consumer confidence and worldwide demand for capital goods and capital goods-related products; changes in government policies regarding banking, monetary and fiscal policy; legislation, particularly pertaining to capital goods-related issues such as agriculture, the environment, debt relief and subsidy program policies, trade and commerce and infrastructure development; government policies on international trade and investment, including sanctions, import quotas, capital controls and tariffs; volatility in international trade caused by the imposition of tariffs, sanctions, embargoes, and trade wars; actions of competitors in the various industries in which we compete; development and use of new technologies and technological difficulties; the interpretation of, or adoption of new, compliance requirements with respect to engine emissions, safety or other aspects of our products; labor relations; interest rates and currency exchange rates; inflation and deflation; energy prices; prices for agricultural commodities and material price increases; housing starts and other construction activity; weather conditions, particularly to the extent it impacts the agricultural industry; our ability to obtain financing or to refinance existing debt; price pressure on new and used equipment; the resolution of pending litigation and investigations on a wide range of topics, including dealer and supplier litigation, intellectual property rights disputes, product warranty and defective product claims, and emissions and/or fuel economy regulatory and contractual issues; security breaches, cybersecurity attacks, technology failures, and other disruptions to the information technology infrastructure of CNH and its suppliers and dealers; security breaches with respect to our products; our pension plans and other post-employment obligations; political and civil unrest; volatility and deterioration of capital and financial markets, including pandemics (such as the COVID-19 pandemic), terrorist attacks in Europe and elsewhere; the remediation of a material weakness; our ability to realize the anticipated benefits from our business initiatives as part of our strategic plan, including targeted restructuring actions to optimize our cost structure and improve the efficiency of our operations; our failure to realize, or a delay in realizing, all of the anticipated benefits of our acquisitions, joint ventures, strategic alliances or divestitures and other similar risks and uncertainties, and our success in managing the risks involved in the foregoing. The foregoing list of factors is not exhaustive. CNH expressly disclaims any intention or obligation to provide, update or revise any forward-looking statements in this presentation to reflect any change in expectations or any change in events, conditions or circumstances on which these forward-looking statements are based. Further information concerning CNH, including factors that potentially could materially affect CNH’s financial results, is included in CNH’s reports and filings with the U.S. Securities and Exchange Commission (“SEC”). All future written and oral forward-looking statements by CNH or persons acting on the behalf of CNH are expressly qualified in their entirety by the cautionary statements contained herein or referred to above. Reconciliations of non-GAAP measures to the most directly comparable GAAP measure are included in this presentation, which is available on our website at investors.cnh.com.

 

3 Q2 2026 results | August 3, 2026 Q2 2026 | MAIN HIGHLIGHTS Results in line with expectations amidst ag cycle trough Operational discipline driving quality, sourcing, and efficiency gains Advancing precision technology adoption across installed base Cycle indicators improving with inventories normalizing and fleets aging Farmer economics remain pressured by low commodity prices Conditions increasingly constructive, though recovery not yet underway 3

 

Q2 2026 results | August 3, 20264 Q2 2026 | RESULTS (1) Non-GAAP measures (definition and reconciliation in the appendix) YoY vs Q2 2025 Consolidated Revenues $4.8B +2% Net Sales Industrial Activities $4.1B +3% Adjusted EBIT1 Industrial Activities $167M (25)% (160) bps Adjusted Industrial EBIT Margin1 4.0% Net Income $141M (35)% (25)% Adjusted Net Income1 $161M Diluted EPS $0.11 $(0.06) $(0.04) Adjusted Diluted EPS1 $0.13 Operating Cash Flow $145M $(627)M $(301)M Free Cash Flow1 Industrial Activities $150M

 

Q2 2026 results | August 3, 20265 Breaking new ground on Iron + Tech Expanding mid-cycle margins PATH TO 2030 Quality as a mindset Driving commercial excellence Operational excellence Expanding product leadership Advancing Iron + Tech integration

 

Q2 2026 results | August 3, 20266 DRIVING COMMERCIAL EXCELLENCE Further progress on dealer consolidation • Splintered Oak Equipment (Texas): Acquisition of 4 other New Holland dealers to drive market scale • Gruett’s (Wisconsin): Strong heritage New Holland dealer added Case IH at Potter, WI location • ATV Sachsen (Germany): Dual brand expansion through Case IH dealer acquisition • Cocari (Brazil): Dual dealer expansion in Brazil with the acquisition of 8 Case IH locations

 

Q2 2026 results | August 3, 20267 STRATEGIC SOURCING PROGRAM (1) RFP = request for proposal, RFI = request for information, RFQ = request for quote Program Goals • Transform the supply chain • Achieve best total value • Negotiate strategic agreements • Establish long-term relationships • Maintain supply chain resilience Conduct global supplier research Develop category RFP/RFI/RFQ1 Hold supplier convention Analyze category RFPs Conduct supplier site visits Conduct supplier negotiations Make supplier selection Implementation Program Process Wave 1 launched 2022 Wave 2 launched 2024 Wave 3 launching 2026 AG Segment margin improvement 100-150 bps by 2030

 

Q2 2026 results | August 3, 20268 (102) 53 (33) (8) (5) 2 Q2 2026 | AGRICULTURE Note: numbers may not add due to rounding (1) Adj. Gross Margin calculated as Adj. Gross Profit divided by Net Sales, as shown in the appendix (2) As independent businesses, dealers control their own inventory Production hours Δ YoY • Q2: -5% • H1: ~flat Dealer inventory2 sequential reductions • Q2: ~flat • H1: ~flat Production slots filled • Q3: • Q4: ● ◑ Q2 2025 Volume & Mix Pricing, Net Product Cost SG&A R&D FX & Other Q2 2026 170 3,248 3,277 Q2 2025 Q2 2026 Net Sales ($ million) Adj. Gross Margin1 Adjusted EBIT ($ million) 5.2% 8.1% +1% YoY (210) bps YoY 21.8% 19.7% Q2 2025 Q2 2026 263

 

Q2 2026 results | August 3, 20269 Q2 2026 | CONSTRUCTION Note: numbers may not add due to rounding (1) Adj. Gross Margin calculated as Adj. Gross Profit divided by Net Sales, as shown in the appendix (2) As independent businesses, dealers control their own inventory Production hours Δ YoY • Q2: +15% • H1: +14% Dealer inventory2 YoY • Q2: +1% Production slots filled • Q3: • Q4: ● ◑ Q2 2025 Volume & Mix Pricing, Net Product Cost SG&A R&D FX & Other Q2 2026 24 (2) (46) 4 (4) 3 773 866 Q2 2025 Q2 2026 Net Sales ($ million) Adj. Gross Margin1 Adjusted EBIT ($ million) 1.7% 4.5% +12% YoY (380) bps YoY 15.7% 11.9% Q2 2025 Q2 2026 15 35

 

Q2 2026 results | August 3, 202610 2.5% 3.9% 4.4% 0% 1% 2% 3% 4% 5% Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 3.1% 3.6% 3.4% 1.6% 1.6% 1.3% 0% 1% 2% 3% 4% Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Q2 2026 | FINANCIAL SERVICES (1) Including unconsolidated JVs; (2) At constant currency; (3) Return on Assets defined as: EBIT / average managed assets annualized Net Income ($ million) Delinquencies on Book (>30 Days)Profitability Ratios Gross Margin / Avg. Assets on Book Return on Assets3 Main Highlights 87 71 Q2 2025 Q2 2026 Q2 retail originations1 $2.5B, -$0.2B YoY Managed portfolio1 $28.0B, -$0.7B YoY (-$0.7B @CC2) Delinquencies at 4.4%, primarily driven by South America Net income down, mainly driven by margin compression

 

Q2 2026 results | August 3, 202611 CAPITAL ALLOCATION PRIORITIES ORGANIC GROWTH & MARGIN EXPANSION Support organic growth through investment in commercial actions, operational efficiencies, and quality improvements BALANCE SHEET STRENGTH & STRONG CREDIT RATING Preserve investment grade credit rating as foundational commitment INORGANIC GROWTH Maintain option for strategic, disciplined, and margin accretive M&A SHAREHOLDER RETURNS After debt repayment and M&A, return substantially all Industrial FCF to shareholders through dividends and share buybacks

 

Q2 2026 results | August 3, 202612 TARIFF IMPACT ON MARGINS Full year 2026 cost impact & 2027 run rate Agriculture Construction Previous 2026 guidance (210)-(220) bps ~(600) bps Section 232 rate reduction ▼ ▼ Section 301 & USMCA impacts TBD TBD Revised 2026 guidance ~(170) bps ~(470) bps 2027 run rate ~(150) bps ~(450) bps Numbers do not include Phase 2 or 3 IEEPA refunds, potential impacts from pending Section 301 investigations, or implications of USMCA not being renewed

 

Q2 2026 results | August 3, 202613 2026 OUTLOOK – AGRICULTURE (1) Regional split definition in the appendix Industry Retail Demand Forecast1 (Units) CNH Agriculture – Main Assumptions Tractors Combines North America ~(5)% LHP ~(15)% HHP ~(5)% EMEA ~(5)% ~Flat South America (5)% - Flat ~(20)% APAC ~(5)% (10)% - (5)% Total Industry Volume % change FY 2026 vs. FY 2025 reflecting the aggregate for key markets where the Company competes. 6.2% 2025A 2026E prior 2026E current $12,390M 2025A 2026E prior 2026E current ~flat Δ YoY Net Sales Adj. EBIT Margin 5.0% - 5.5% (5)% - flat Δ YoY 4.5% - 5.5%

 

Q2 2026 results | August 3, 202614 2.3% 2025A 2026E prior 2026E current $2,956M 2025A 2026E prior 2026E current 2026 OUTLOOK – CONSTRUCTION (1) Regional split definition in the appendix Industry Retail Demand Forecast1 (Units) CNH Construction – Main Assumptions 5-10% YoY Net Sales Adj. EBIT Margin 1.8% - 2.3% Light Heavy North America Flat – 5% Flat - 5% EMEA Flat - 5% ~10% South America (10)% - (5)% 5% - 10% APAC 5% – 10% 10% - 15% Total Industry Volume % change FY 2026 vs. FY 2025 reflecting the aggregate for key markets where the Company competes. ~flat YoY 1.0% - 2.0%

 

Q2 2026 results | August 3, 202615 2026 OUTLOOK – FINANCIAL TARGETS (1) Non-GAAP measure (definition in the appendix) Industrial Activities 2025A 2026E prior 2026E current Net Sales $15.3B (4)% - flat YoY flat to +2% YoY Adj. EBIT margin1 4.3% 2.5% - 3.5% 3.2% - 3.8% Free Cash Flow1 $513M $150M - $350M $200M - $400M Company Adj. Diluted EPS1 $0.55 $0.35 - $0.45 $0.41 - $0.46

 

16 Q2 2026 results | August 3, 2026 Q3 2026 – KEY CONSIDERATIONS Agriculture net sales and EBIT margin ~flat YoY Construction net sales and EBIT margin up YoY Financial Services carefully monitoring market conditions South American market dynamics a factor for all segments

 

17 Q2 2026 results | August 3, 2026 2026 PRIORITIES & OUTLOOK Watching MY27 order intake for ag cycle indicators Tracking macroeconomic factors impacting ag industry cycle Continued production discipline and channel inventory reductions Margin improvements from quality, sourcing, and operational efficiency Sustained iron and tech investments Ongoing multi-brand dealership consolidation in all geographies MY27 = Model Year 2027

 

18 APPENDIX

 

Q2 2026 results | August 3, 202619 UPCOMING EVENTS Q3 2026 earnings call: Monday, November 9, 9:00am ET Investor Booth Tour @ Farm Progress (Boone, Iowa): Tuesday, September 1, 1:30pm CT Note: dates and times are subject to change

 

Q2 2026 results | August 3, 202620 Q2 2026 | YOY UNIT PERFORMANCE (1) Total Industry Volume % YoY change reflecting the aggregate for key markets where the Company competes. NOTE: Total Industry Volume % change 2026 vs. 2025 reflecting aggregate for key markets where Company competes. APAC CE when excluding China 1% in Light & 9% in Heavy T o ta l I n d u s tr y NORTH AMERICA1 EMEA1 SOUTH AMERICA1 APAC1 0-140 HP – Small Tractors (16)% (11)% (8)% 15% 140+ HP – Large Tractors (17)% Combines (7)% (1)% (29)% (48)% Light 2% 7% (2)% 12% Heavy 12% 11% 25% 20% Company Inventory Dealer Inventory Retail Production C o m p a n y Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Tractors Light HeavyCombines

 

Q2 2026 results | August 3, 202621 Q2 2026 | INDUSTRIAL ACTIVITIES NET SALES Note: numbers may not add due to rounding (1) Δ YoY @CC means at constant currency Agriculture Construction Industrial Activities $3,277M $866M $4,143M +1% YoY (1)% @CC1 12% YoY 10% @CC1 3% YoY 1% @CC1 By Region as reported By Region as reported By Region as reported 38% 41% 11% 11% 54% 23% 18% 5% 41% 38% 12% 9% 34% 41% 15% 10% 49% 25% 20% 6% 37% 38% 16% 9% By Product as reported By Product as reported By Segment as reported 60% 23% 18% 36% 63% 2% 79% 21% 58% 21% 21% 37% 61% 2% 81% 19% Q2 2025 Q2 2026 Agriculture Construction NA EMEA SA APAC Tractors Combines Others Heavy Light Others NA EMEA SA APAC NA EMEA SA APAC Q2 2026 mix Q2 2025 mix Q2 2026 mix Q2 2025 mix

 

Q2 2026 results | August 3, 202622 H1 2026 | INDUSTRIAL ACTIVITIES NET SALES Note: numbers may not add due to rounding (1) Δ YoY @CC means at constant currency Agriculture Construction Industrial Activities $5,873M $1,440M $7,313M +1% YoY (2)% @CC1 6% YoY 3% @CC1 2% YoY (1)% @CC1 By Region as reported By Region as reported By Region as reported 38% 40% 11% 11% 53% 25% 15% 6% 41% 37% 12% 10% 37% 37% 15% 10% 51% 25% 17% 7% 40% 35% 16% 10% By Product as reported By Product as reported By Segment as reported 61% 20% 19% 38% 60% 2% 80% 20% 59% 19% 22% 36% 62% 2% 82% 18% H1 2025 H1 2026 Agriculture Construction NA EMEA SA APAC Tractors Combines Others Heavy Light Others NA EMEA SA APAC NA EMEA SA APAC H1 2026 mix H1 2025 mix H1 2026 mix H1 2025 mix

 

Q2 2026 results | August 3, 202623 Q2 / H1 2026 | FINANCIALS BY SEGMENT Note: numbers may not add due to rounding (1) Non-GAAP measure: definition in the slide “Non-GAAP Financial Measures”; reconciliation in “Reconciliations” section QTD Revenues & Net Sales Gross Profit Gross Margin Adj. EBIT1 Adj. EBIT Margin1 Q2 26 Q2 25 Q2 26 Q2 25 Q2 26 Q2 25 Q2 26 Q2 25 Q2 26 Q2 25 Agriculture 3,277 3,248 644 708 19.7% 21.8% 170 263 5.2% 8.1% Construction 866 773 103 121 11.9% 15.7% 15 35 1.7% 4.5% Elimination & Other - - - - - - (18) (74) - - Industrial Activities 4,143 4,021 747 829 18.0% 20.6% 167 224 4.0% 5.6% Financial Services 656 685 Elimination & Other 4 5 CNH 4,803 4,711 YTD Revenues & Net Sales Gross Profit Gross Margin Adj. EBIT1 Adj. EBIT Margin1 H1 26 H1 25 H1 26 H1 25 H1 26 H1 25 H1 26 H1 25 H1 26 H1 25 Agriculture 5,873 5,829 1,141 1,223 19.4% 21.0% 197 402 3.4% 6.9% Construction 1,440 1,364 171 209 11.9% 15.3% (13) 49 (0.9%) 3.6% Elimination & Other - - - - - - (62) (126) - - Industrial Activities 7,313 7,193 1,312 1,432 17.9% 19.9% 122 325 1.7% 4.5% Financial Services 1,302 1,336 Elimination & Other 14 10 CNH 8,629 8,539

 

Q2 2026 results | August 3, 202624 DEBT MATURITY SCHEDULE Breakdown as of June 30, 2026, $ billion Note: Numbers may not add due to rounding Outstanding Jun. 30, 2026 2026 2027 2028 2029 2030 Beyond 2.7 Bank Debt 0.7 0.5 0.4 0.2 0.2 0.7 13.2 Capital Market 1.8 3.0 1.9 2.3 0.8 3.3 0.1 Other Debt 0.1 0.0 0.0 0.0 0.0 0.0 15.9 Cash Portion of Debt Maturities 2.5 3.5 2.3 2.6 1.1 4.0 of which Industrial Activities 0.2 1.3 0.1 0.6 0.0 2.1 of which Financial Services 2.3 2.1 2.3 2.0 1.1 1.9 2.5 Cash & Cash Equivalents and Restricted Cash 0.6 of which restricted cash 0.2 Net Receivables / (Payables) with Iveco Group 6.3 Undrawn Committed credit lines 8.9 Total Available Liquidity

 

25 RECONCILIATIONS

 

Q2 2026 results | August 3, 202626 ($M) Q2 2026 Q2 2025 H1 2026 H1 2025 Net income (loss) 141 217 151 349 Less: consolidated income tax expense (43) (76) (47) (123) Consolidated income before taxes 184 293 198 472 Less: Financial Services Financial Services net income 71 87 145 177 Financial Services income taxes 17 25 43 53 Add back of the following Industrial Activities items: Interest expense of Industrial Activities, net of Interest income and elim. 41 26 64 51 Foreign exchange (gains) losses, net of Industrial Activities 1 9 3 14 Finance and non-service component of pension and other post-employment benefit costs of Industrial Activities 2 3 6 7 Adjustments for the following Industrial Activities items: Restructuring expenses 27 5 31 11 Other discrete items - - 8 - Total adjusted EBIT of Industrial Activities 167 224 122 325 ADJUSTED EBIT RECONCILIATION Reconciliation of Consolidated Net Income to Adjusted EBIT of Industrial Activities

 

Q2 2026 results | August 3, 202627 ($M) Q2 2026 Q2 2025 H1 2026 H1 2025 Net income (loss) 141 217 151 349 Adjustments impacting Income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates 27 (1) 39 (1) Restructuring expenses 27 5 31 11 Pre-tax gain related to the 2021 modification of a healthcare plan in the U.S. - (6) - (12) Impairment of minority investment - - 8 - Tax effect of adjustments impacting Income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates (7) - (8) - Adjusted net income (loss) 161 216 182 348 Adjusted net income (loss) attributable to CNH Industrial N.V. 158 212 176 343 Weighted average shares outstanding – diluted (million) 1,241 1,253 1,242 1,253 Adjusted diluted EPS $0.13 $0.17 $0.14 $0.27 ADJUSTED NET INCOME RECONCILIATION Reconciliation of Adjusted Net Income to Net Income (Loss) & Calculation of Adjusted Diluted EPS

 

Q2 2026 results | August 3, 202628 ($M) Q2 2026 Q2 2025 H1 2026 H1 2025 Net cash provided by (used in) Operating Activities 145 772 180 934 Cash flows from Operating Activities of Financial Services net of eliminations 114 (186) (420) (824) Change in derivatives hedging debt of Industrial Activities and other 6 - 8 9 Investments in property, plant & equipment, and intangible assets of Industrial Activities (114) (88) (206) (191) Other changes (1) (47) (1) (44) Free cash flow of Industrial Activities 150 451 (439) (116) FREE CASH FLOW RECONCILIATION Reconciliation of Net Cash Provided (Used) by Operating Activities to Free Cash Flow of Industrial Activities

 

Q2 2026 results | August 3, 202629 The composition of our regions part of the geographic information is as follows: • North America: United States, Canada, and Mexico • Europe, Middle East, and Africa (EMEA): member countries of the European Union, European Free Trade Association, the United Kingdom, Ukraine, Balkans, Türkiye, Uzbekistan, Pakistan, the African continent, and the Middle East • South America: Central and South America, and the Caribbean Islands • Asia Pacific (APAC): Continental Asia (including the Indian subcontinent), Indonesia, Japan, and Oceania Industry Data • In this presentation, industry information is generally based on retail unit sales data in North America, on registrations of equipment in most of Europe, Brazil, and various Rest of the World markets, and on retail and shipment unit data collected by a central information bureau appointed by equipment manufacturers associations, including the Association of Equipment Manufacturers’ in North America, the Committee for European Construction Equipment in Europe, the ANFAVEA in Brazil, the Japan Construction Equipment Manufacturers Association, and the Korea Construction Equipment Manufacturers Association, as well as on other shipment data collected by an independent service bureau. • Not all Agricultural or Construction equipment is registered, and registration data may thus underestimate, perhaps substantially, actual retail industry unit sales demand, particularly for local manufacturers in China, Southeast Asia, Eastern Europe, Russia, Türkiye, Brazil, and any country where local shipments are not reported. • In addition, there may be a period of time between the shipment, delivery, sale and/or registration of a unit, which must be estimated and may require adjustments when determining our estimates of retail unit data in any period. GEOGRAPHIC INFORMATION

 

Q2 2026 results | August 3, 202630 CNH monitors its operations through the use of several non-GAAP financial measures. CNH’s management believes that these non-GAAP financial measures provide useful and relevant information regarding its operating results and enhance the readers’ ability to assess CNH’s financial performance and financial position. Management uses these non-GAAP measures to identify operational trends, as well as make decisions regarding future spending, resource allocations and other operational decisions as they provide additional transparency with respect to our core operations. These non-GAAP financial measures have no standardized meaning under U.S. GAAP and are unlikely to be comparable to other similarly titled measures used by other companies and are not intended to be substitutes for measures of financial performance and financial position as prepared in accordance with U.S. GAAP. CNH’s non-GAAP financial measures used in this presentation are defined as follows: Change excluding FX or Constant Currency refers to the fluctuations in revenues on a constant currency basis by applying the prior year average exchange rates to current year’s revenues expressed in local currency in order to eliminate the impact of foreign exchange rate fluctuations. Adjusted Gross Profit Margin of Industrial Activities: is computed by dividing Net Sales less Costs of good sold, as adjusted by non-recurring items, by Net Sales. Adjusted EBIT of Industrial Activities is defined as net income (loss) before income taxes, Financial Services’ results, Industrial Activities’ interest expenses, net, foreign exchange gains/losses, finance and non-service component of pension and other post-employment benefit costs, restructuring expenses, and certain non- recurring items. In particular, non-recurring items are specifically disclosed items that management considers rare or discrete events that are infrequent in nature and not reflective of on-going operational activities. Adjusted EBIT Margin of Industrial Activities is computed by dividing Adjusted EBIT of Industrial Activities by Net Sales of Industrial Activities. Adjusted Income Tax (Expense) Benefit is defined as income taxes less the tax effect of restructuring expenses and non-recurring items, and non-recurring tax charges or benefits. Adjusted Effective Tax Rate (Adjusted ETR) is computed by dividing a) adjusted income taxes by b) income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates, less restructuring expenses and non-recurring items. Adjusted Net Income is defined as net income, less restructuring charges and non-recurring items, after tax. Adjusted Diluted EPS is computed by dividing Adjusted Net Income (loss) attributable to CNH Industrial N.V. by a weighted-average number of common shares outstanding during the period that takes into consideration potential common shares outstanding deriving from the CNH share-based payment awards, when inclusion is not anti-dilutive. When we provide guidance for adjusted diluted EPS, we do not provide guidance on an earnings per share basis because the GAAP measure will include potentially significant items that have not yet occurred and are difficult to predict with reasonable certainty prior to year-end. Free Cash Flow of Industrial Activities (or Industrial Free Cash Flow) refers to Industrial Activities only and is computed as consolidated cash flow from operating activities less: cash flow from operating activities of Financial Services; investments of Industrial Activities in assets sold under operating leases, property, plant and equipment and intangible assets; change in derivatives hedging debt of Industrial Activities; as well as other changes and intersegment eliminations. For forecasted information, the Company is unable to provide a reconciliation of this measure without unreasonable effort due to the uncertainty and inherent difficulty of predicting the occurrence, the financial impact, and the periods in which the adjustments may be recognized. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could be material to future results. NON-GAAP FINANCIAL MEASURES

 

31 INVESTOR RELATIONS CONTACTS investors.cnh.com investor.relations@cnh.com Jason Omerza +1 (630) 740 8079 jason.omerza@cnh.com Joe Recendez +1 (708) 932 5916 joseph.recendez@cnh.com

 

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