Adjusted EPS of $0.13 met expectations, but industrial free cash flow fell to $150 million on weaker EBIT and higher working capital.
CNH Industrial posted second-quarter revenue of $4.8 billion, up 2% year-over-year, while adjusted earnings per share reached $0.13. Industrial free cash flow declined to $150 million, pressured by lower EBIT and increased working capital.
Agriculture profitability weakened, with adjusted EBIT margin dropping to 5.2% from 8.1% due to unfavorable product mix and tariff costs. Construction sales grew 12%, but its EBIT margin fell to 1.7% as tariffs weighed on results. The company plans to reduce dealer inventories by $400 million to $500 million.
Management maintained a cautious outlook for 2027, citing weak farm profitability and subdued demand for large equipment. Tariffs remain a key headwind, though lower Section 232 rates are expected to provide some relief.