Case, New Holland Parent CNH Reports Q1 Construction Sales Drop 22%

CNH Industrial reported a decrease in net sales for the first quarter, with expectations of further declines throughout the year. The company’s consolidated net sales were $3.8 billion, down 21% from the previous year. Net income also dropped by 64% to $132 million.

In the construction segment, net sales were $591 million, a 22% decrease from the previous year. The gross profit margin in this sector fell from 17.4% to 14.9%. Adjusted earnings before interest and taxes (EBIT) for the construction business were $14 million, down by 73% year-over-year, mainly due to lower shipment volumes.

CEO Gerrit Marx highlighted the focus on reducing dealer inventories during the earnings call, emphasizing support for dealers and preparations for a new lineup in 2026. CNH forecasts a 4% to 15% decline in construction net sales for 2025, with plans to address excess equipment inventory and declining retail sales.

Production hours for manufacturing construction equipment were down by 19% in the first quarter. CNH’s forecast for 2025 considers factors such as global tariffs and potential reactions from trade partners.