Fourth quarter consolidated revenues declined 28%; full year consolidated revenues declined 20% on lower industry demand for Agriculture and Construction equipment

Fourth quarter net income of $176 million; full year net income of $1,259 million

Full year diluted EPS at $0.99; adjusted diluted EPS at $1.05

Results reflect channel destocking and continued execution of cost savings initiatives

Basildon, UK - February 4, 2025 - CNH Industrial N.V. (NYSE: CNH) today reported results for the three months and twelve months ended December 31, 2024, with Q4 2024 net income of $176 million and diluted earnings per share of $0.14, compared with net income of $583 million and diluted earnings per share of $0.44 in Q4 2023(1). Consolidated revenues were $4.88 billion in the quarter (down 28% compared to Q4 2023) and Net sales of Industrial Activities were $4.13 billion (down 31% compared to Q4 2023). Net cash provided by operating activities was $1,692 million, and Industrial Free Cash Flow was $848 million in Q4 2024.

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Full year 2024 consolidated revenues were $19.84 billion, down 20% year-over-year, with Net sales of Industrial Activities at $17.06 billion, down 23%. Full year net income was $1,259 million compared to 2023(1) net income of $2,287 million. Full year diluted earnings per share was $0.99 compared to $1.69 in 2023(1). Adjusted net income was $1,339 million compared to $2,217 million in 2023, with adjusted diluted earnings per share of $1.05 compared to $1.63 in 2023(1). Full year net cash provided by operating activities was $1,968 million and Industrial Free Cash Flow absorption was $401 million.

"I applaud the CNH team's dedication to achieve the tasks we gave ourselves to close 2024. As intended, Agriculture dealer inventory went down in Q4 by over $700 million due to focused retail sales support and 34% fewer production hours. Our proactive and ongoing efforts to align our business structure with the current industry environment have allowed us to deliver our products with reasonable margin erosion. The challenging market conditions will continue at least through the first half of 2025, and we will keep production levels fairly low by design to drive channel inventory down further. I am confident that our continuing efforts to simplify, streamline, and raise the quality of our operations prepare us well for the regional cycle dynamics ahead.”

Gerrit Marx, Chief Executive Officer

 
2024 Fourth Quarter Results

(all amounts $ million, comparison vs Q4 2023 - unless otherwise stated)

Please note that in this and in the following tables and commentary, prior periods have been revised to reflect an immaterial correction to the financial statements. See note 1 for further details.

US-GAAP
    Q4 2024   Q4 2023(1)   Change   Change at c.c.(2)
Consolidated revenues   4,876   6,792   (28)%   (26)%
of which Net sales of Industrial Activities   4,129   6,018   (31)%   (30)%
Net income   176   583   (70)%    
Diluted EPS $   0.14   0.44   (0.30)    
Cash flow provided (used) by operating activities   1,692   1,515   +177    
Cash and cash equivalents(3)   3,191   4,322   (1,131)    
Gross profit margin of Industrial Activities   19.5%   21.8%   (230) bps    
 

NON-GAAP(4)
    Q4 2024   Q4 2023(1)   Change  
Adjusted EBIT of Industrial Activities   194   662   (71)%  
Adjusted EBIT margin of Industrial Activities   4.7%   11.0%   (630) bps  
Adjusted net income   196   523   (63)%  
Adjusted diluted EPS $   0.15   0.39   (0.24)  
Free cash flow of Industrial Activities   848   1,630   (782)  
The decline in net sales of Industrial Activities was mainly due to lower shipment volumes on decreased industry demand and dealer destocking.

In Q4 2024, adjusted net income was $196 million with adjusted diluted earnings per share of $0.15. In comparison, in Q4 2023, CNH reported adjusted net income of $523 million and adjusted diluted earnings per share of $0.39.

Reported income tax expense was $89 million for the fourth quarter of 2024 ($58 million in Q4 2023), including the combined impact from the derecognition of deferred tax assets in Argentina and the recognition of deferred tax assets in China, with an effective tax rate (ETR) of 36.9% (10.1% in Q4 2023). The adjusted ETR(4) was 34.1% (27.1% in Q4 2023).

Cash flow provided by operating activities in the quarter was $1,692 million ($1,515 million in Q4 2023). Free cash flow of Industrial Activities was $848 million. Consolidated debt was $27 billion as of December 31, 2024 ($27 billion at December 31, 2023).

Agriculture
    Q4 2024   Q4 2023(1)   Change   Change at c.c.(2)
Net sales ($ million)   3,411   4,947   (31)%   (30)%
Gross profit margin   20.6%   23.3%   (270) bps    
Adjusted EBIT ($ million)   244   635   (62)%    
Adjusted EBIT margin   7.2%   12.8%   (560) bps    
In North America, industry volume was down 34% year-over-year in Q4 2024 for tractors over 140 HP and was down 10% for tractors under 140 HP; combines were down 33%. In Europe, Middle East and Africa (EMEA), tractor and combine demand was down 6% and 31%, respectively, of which Europe tractor and combine demand was down 8% and 11%, respectively. South America tractor demand was down 5% and combine demand was down 21%. Asia Pacific tractor demand was up 10%, and combine demand was down 1%.

Agriculture net sales decreased for the quarter by 31% to $3.4 billion primarily due to lower shipment volumes on decreased industry demand across all regions and dealer destocking.

Adjusted EBIT decreased to $244 million ($635 million in Q4 2023), primarily due to lower shipment volumes, partially offset by a continued reduction in SG&A expenses. R&D investments accounted for 6.2% of net sales (5.0% in Q4 2023). Adjusted EBIT margin was 7.2% (12.8% in Q4 2023).

Construction
    Q4 2024   Q4 2023   Change   Change at c.c.(2)
Net sales ($ million)   718   1,071   (33)%   (31)%
Gross profit margin   14.8%   14.8%   - bps    
Adjusted EBIT ($ million)   18   62   (71)%    
Adjusted EBIT margin   2.5%   5.8%   (330) bps    
Global industry volume for construction equipment increased 9% year-over-year in Q4 2024 for Heavy construction equipment; Light construction equipment was down 4%. Aggregated demand was flat in North America, decreased 11% in EMEA, and increased 14% in South America and 8% in Asia Pacific.

Construction net sales decreased for the quarter by 33% to $718 million, due to lower shipment volumes and mix driven by the market decline and dealer destocking, mainly in North America.

Adjusted EBIT decreased to $18 million ($62 million in Q4 2023), as a result of lower shipment volumes and product mix, unfavorable price realization mainly in North America and South America, partially offset by lower production costs and SG&A expenses. Adjusted EBIT margin was 2.5% (5.8% in Q4 2023).

Financial Services
    Q4 2024   Q4 2023   Change   Change at c.c.(2)
Revenues ($ million)   743   768   (3)%   +1%
Net income ($ million)   92   113   (19)%    
Equity at quarter-end ($ million)   2,745   2,789   (44)    
Retail loan originations ($ million)   3,216   3,412   (196)    
Financial Services revenues decreased by 3% as a result of lower equipment sales related to decreased operating lease maturities, and the negative impact from currency translation, partially offset by higher average portfolio balances in all regions (except EMEA) and higher base rates in South America.

Net income was $92 million in the fourth quarter of 2024, a decrease of $21 million compared to the same quarter of 2023, primarily due to increased risk costs in North America and South America, lower recoveries on used equipment sales, partially offset by favorable volumes in all regions except EMEA. In addition, the net income for the quarter is affected by the derecognition of certain tax assets in Argentina ($35 million).

The managed portfolio (including unconsolidated joint ventures) was $27.8 billion as of December 31, 2024 (of which retail was 68% and wholesale 32%), down $1.1 billion compared to December 31, 2023 (up $1.0 billion on a constant currency basis).

At December 31, 2024, the receivable balance greater than 30 days past due as a percentage of receivables was down sequentially to 1.9%, however it was elevated from prior year (1.4% as of December 31, 2023), due to economic and environmental factors impacting farmers, specifically in South America.

Results for the Full Year 2024

(all amounts $ million, comparison vs FY 2023 - unless otherwise stated)

US-GAAP
    FY 2024   FY 2023(1)   Change   Change at c.c.(2)
Consolidated revenues   19,836   24,687   (20)%   (19)%
of which Net sales of Industrial Activities   17,060   22,080   (23)%   (22)%
Net income   1,259   2,287   (45)%    
Diluted EPS $   0.99   1.69   (0.70)    
Cash flow provided (used) by operating activities   1,968   907   +1,061    
Cash and cash equivalents(3)   3,191   4,322   (1,131)    
Gross profit margin of Industrial Activities   21.7%   23.7%   (200) bps    

NON-GAAP(4)
    FY 2024   FY 2023(1)   Change  
Adjusted EBIT of Industrial Activities   1,404   2,634   (47)%  
Adjusted EBIT margin of Industrial Activities   8.2%   11.9%   (370) bps  
Adjusted net income   1,339   2,217   (40)%  
Adjusted diluted EPS $   1.05   1.63   (0.58)  
Free cash flow of Industrial Activities   (401)   1,216   (1,617)  

Agriculture
    FY 2024   FY 2023(1)   Change   Change at c.c.(2)
Net sales   14,007   18,148   (23)%   (22)%
Gross profit margin   22.9%   25.5%   (260) bps    
Adjusted EBIT   1,470   2,636   (44)%    
Adjusted EBIT margin   10.5%   14.5%   (400) bps    

Construction
    FY 2024   FY 2023   Change   Change at c.c.(2)
Net sales   3,053   3,932   (22)%   (21)%
Gross profit margin   16.3%   15.6%   +70 bps    
Adjusted EBIT   169   238   (29)%    
Adjusted EBIT margin   5.5%   6.1%   (60) bps    

Financial Services
    FY 2024   FY 2023   Change   Change at c.c.(2)
Revenues   2,774   2,573   +8%   +10%
Net income   379   371   +2%    
2025 Outlook

The Company forecasts that 2025 global industry retail sales will be lower in both the agriculture and construction equipment markets when compared to 2024. In addition, CNH is focused on driving down excess channel inventory primarily by producing fewer units than the retail demand level. Therefore,