CNH Industrial N.V.

How CNH makes money

CNH Industrial makes agriculture and construction equipment and provides financing through CNH Capital. Its farm-equipment businesses include Case IH, New Holland and STEYR, alongside precision technology. Its construction businesses include CASE Construction, Eurocomach and New Holland Construction.

Latest quarterly results

The quarter included $109 million in gross tariff refunds and related one-off spending. Net refund benefits were $32 million for agriculture and $39 million for construction. Reported net income also included a $156 million noncash charge against deferred tax assets in Brazil.

Financial outlook and funding

On November 9, CNH raised its 2026 adjusted diluted earnings-per-share range to $0.44 to $0.48, from $0.41 to $0.46. It raised the industrial free-cash-flow forecast to $300 million to $450 million, from $200 million to $400 million.

Industrial free cash flow was negative $449 million through September. Reaching the annual range therefore requires $749 million to $899 million in the fourth quarter. Industrial net debt was $2.54 billion at September 30, compared with $2.03 billion at the end of 2025. These industrial measures exclude the customer-financing arm.

For the full year, CNH expects agriculture's adjusted EBIT margin at 5.1% to 5.4% and construction's at 2.0% to 2.3%. Adjusted EBIT removes interest, taxes, restructuring and selected other items but retains tariff refunds.

The proposed construction transaction

On November 9, 2026, CNH agreed to sell 70% of its construction-equipment business to Kobelco Construction Machinery. The transaction assigns the business a $1 billion enterprise value. CNH expects about $700 million in cash before closing adjustments, intends to use net proceeds to reduce debt and would keep a 30% stake.

The deal is expected to close by the end of 2027, subject to approvals and other conditions. Both partners would have a three-year lockup. CNH Capital would remain with CNH and continue supporting construction customers and dealers.

Our analysis of the construction deal and tariff refunds compares the quarter's profit margins with the net refund benefits.