CNH Industrial N.V. operates as a multinational producer of heavy-duty industrial machinery, specializing in a diverse portfolio that includes both agricultural and ...
CNH Industrial N.V. (NYSE: CNH) is an industrial equipment manufacturer whose core business is the design, production, and sale of agricultural machinery and construction equipment. The company serves customers ranging from professional farmers and commercial contractors to dealers that support end customers across multiple regions. Its product offering typically spans ...CNH Industrial N.V. (NYSE: CNH) is an industrial equipment manufacturer whose core business is the design, production, and sale of agricultural machinery and construction equipment. The company serves customers ranging from professional farmers and commercial contractors to dealers that support end customers across multiple regions. Its product offering typically spans tractors, combine harvesters and other agricultural machines, as well as construction equipment used in earthmoving and related work.
A distinctive aspect of CNH’s business model is the breadth of its global brand and dealership ecosystem. The company’s brands—most notably Case IH and New Holland—are positioned as long-standing, mainstream solutions for agriculture and jobsite productivity. To reach customers, CNH relies on a wide distribution network (the supplied data references over 3,600 dealer and distribution outlets), which helps maintain aftermarket parts and service availability—an important cost and revenue driver in machinery businesses because many customers spend recurrently on maintenance, repairs, and upgrades.
CNH also operates financial services that complement equipment sales. The supplied description notes a dedicated financial services division offering retail financing to end customers and wholesale funding for dealers. This can support demand by improving affordability and liquidity for buyers and by smoothing working-capital needs across the dealer base.
From a financial and cost perspective, the company’s results are influenced by commodity and agricultural cycles, interest-rate conditions (which affect equipment financing costs), supply-chain efficiency, and the ability to manage capital expenditure and manufacturing throughput. Machinery manufacturers generally carry substantial fixed costs related to manufacturing plants and R&D; therefore, margin outcomes can be sensitive to volume and mix.
Leadership-wise, CNH is led by CEO Gerrit Andreas Marx, who oversees a large global workforce (the provided data indicates roughly 34,000+ employees) and the company’s manufacturing and technology footprint, including extensive R&D and global production capacity. In terms of “key people,” CEO leadership is explicitly provided, while other executive officers are not detailed in the provided sources.
Overall, CNH’s strategy centers on advancing equipment performance and sustainability for agriculture and construction while maintaining a strong aftermarket and services position through its dealer network and financing capabilities—mechanisms that can improve customer retention and diversify revenue beyond new equipment sales. The market valuation and operating leverage metrics commonly used by investors for CNH-like industrials reflect these cyclicality and scale factors, particularly regarding cash generation, free cash flow, and return on invested capital.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$18.1B
-8.8%
+25.5%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$510.0M
-59.1%
+1871.4%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+31.5%
-3.6%
-8.2%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+15.4%
-20.8%
-0.3%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+2.8%
-55.1%
+1470.4%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$2.0B
+155.1%
-120.7%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+11.0%
+179.7%
-75.8%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
349.7%
-1.5%
+0.4%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
2.23x
+2.9%
-0.4%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good morning, and welcome to the CNH 2026 Second Quarter Results Conference Call. [Operator Instructions] I will now turn the call over to Jason Omerza, Vice President of Investor Relations.
Jason Omerza: Thank you, Paige, and good morning, everyone. We would like to welcome you to CNH's second quarter earnings call for the period ending June 30, 2026. This live webcast is copyrighted by CNH and any recording, transmission or other use of any portion of it without the written consent of CNH is strictly prohibited. Hosting today's call are CNH CEO, Gerrit Marx; and CFO, Jim Nickolas. They will reference the material available for download from our website. Please note that any forward-looking statements that we make during today's call are subject to the risks and uncertainties mentioned in the safe harbor statement included in the presentation material. Additional information pertaining to factors that could cause actual results to differ materially is contained in the company's most recent annual report on Form 10-K as well as other periodic reports and filings with the U.S. Securities and Exchange Commission. Our presentation includes certain non-GAAP financial measures. Additional information, including reconciliations to the most directly comparable U.S. GAAP financial measures is included in the presentation material. I will now turn the call over to Gerrit.
Gerrit Marx: Thank you, Jason, and welcome to everyone joining the call. Second quarter results were generally in line with our expectations as we continued managing through a difficult point in the agricultural equipment cycle. Operationally, we are making good use of this period to drive improvements in quality, sourcing and manufacturing efficiency. These actions are supporting performance today while strengthening our foundation for the future. We also continue advancing our precision technology capabilities with increasing adoption of connected and AI-enabled solutions across our installed base and dealer network. While overall market conditions remain challenging, particularly given pressured farmer profitability, we are seeing encouraging developments in several but not yet all equipment cycle indicators. As we think about the eventual recovery in our end markets, we find it helpful to focus on a handful of indicators that have historically provided a good signal for both the timing and strength of the next up cycle. First, channel inventories of new machines need to normalize in line with the near-term 3 to 5 forward months of sales demand depending on the machine type and support a steady production environment. Second, used equipment inventories need to return to healthy levels, creating the financial and physical capacity for dealers to manage new equipment flow through. Third, the spread between new and used equipment values needs to normalize, allowing farmers to trade equipment economically, supporting replacement demand. Fourth, commodity prices need to move …
