CNH Industrial CNH reported fourth-quarter 2024 adjusted earnings per share (EPS) of 15 cents, which declined from 42 cents in the prior-year quarter. The figure also missed the Zacks Consensus Estimate of 19 cents.

In the fourth quarter, consolidated revenues declined nearly 28% from the year-ago level to $4.88 billion and missed the consensus mark of $4.89 billion. The company’s net sales from industrial activities came in at $4.13 billion, down 31% due to lower shipment volumes.

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CNH Industrial N.V. Price, Consensus and EPS Surprise

CNH Industrial N.V. price-consensus-eps-surprise-chart | CNH Industrial N.V. Quote

Segmental Performance

In the fourth quarter, net sales in the Agriculture segment fell 31% year over year to $3.41 billion due to lower shipment volume. The metric also missed our estimate of $3.43 billion. The segment’s adjusted EBIT came in at $244 million, down 62% year over year due to lower volumes. The figure also missed our estimate of $307.2 million. The adjusted EBIT margin decreased to 7.2% from 12.8%.

The Construction segment’s sales declined 33% year over year to $718 million as a result of lower volume across all regions. The metric also missed our estimate of $756 million. Adjusted EBIT came in at $18 million, down 71% year over year due to lower volume and unfavorable net price realization. The figure marginally missed our estimate of $18.3 million. The adjusted EBIT margin decreased to 2.5% from 5.8%.

The Financial Services segment’s revenues fell 3% to $743 million due to lower equipment sales and the unfavorable impact of currency translation. However, the metric surpassed our estimate of $648.8 million. Net income from the segment fell to $92 million from $113 million reported in the year-ago quarter.

Financial Details

CNH Industrial had cash and cash equivalents of $3.19 billion as of Dec. 31, 2024, down from $4.32 billion as of Dec. 31, 2023.

The company’s debt totaled $26.88 billion as of Dec. 31, 2024, down from $27.33 billion as of Dec. 31, 2023.

The company’s net cash provided by operating activities was $1.69 billion compared with $1.51 billion reported in the year-ago period.

CNH reported a free cash flow from industrial activities of $848 million in the quarter compared with a free cash flow of $1.63 billion in the fourth quarter of 2023.

CNH Provides Guidance for 2025

In 2025, Agriculture sales are expected to decrease 13-18% compared with a 23% decline in 2024. Adjusted EBIT margin for the Agriculture segment is expected in the band of 8.5-9.5% compared with 10.5% in 2024. For the Construction segment, sales are expected to decrease 5-10% year over year compared with a decline of 22% in 2024. 

The company expects free cash flow from industrial activities in the range of $200-$500 million against the free cash outflow of $401 million in 2024. Adjusted EPS is expected between 65 cents and 75 cents compared with 99 cents in 2024.

Zacks Rank & Key Picks

CNH carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the Industrial Products sector are RBC Bearings Incorporated RBC, Mueller Water Products, Inc. MWA and EnerSys ENS, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for RBC’s 2025 sales and earnings suggests year-over-year growth of 5.05% and 13.23%, respectively. EPS estimates for 2025 have improved 6 cents in the past seven days.

The Zacks Consensus Estimate for MWA’s 2025 sales and earnings suggests year-over-year growth of 3.46% and 21.88, respectively. EPS estimates for 2025 have improved 9 cents in the past 90 days.

The Zacks Consensus Estimate for ENS’ 2025 sales and earnings suggests year-over-year growth of 3.25% and 17.13, respectively. EPS estimates for 2025 and 2026 have improved 45 cents and 15 cents, respectively, in the past 30 days.

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