CNH Industrial Capital saw originations slide and delinquencies rise in the first quarter amid ongoing agriculture industry woes.
The financing arm of CNH Industrial is grappling with growing distress and heightened risk in the South American market, driven by “tighter credit and delays in government-backed financing in Brazil,” Chief Financial Officer Jim Nicholas said during today’s Q1 earnings call.
As farm equipment demand remains muted in the United States and South America, the OEM “diligently continued the disciplined management of all levers in our control,” Chief Executive Gerrit Marx said during the call.
“Despite the challenging quarter, we have many things to proudly share here,” he said. “We kept production levels low in order to manage and contain channel inventory. Ag dealer inventory levels remained unchanged since the beginning of the year by design.”
BY THE NUMBERS: CNH reported these Q1 results for its financial services segment:
- Revenue dipped 0.8% year over year to $646 million;
- Retail loan originations declined 10.1% YoY to $2.2 billion;
- Net income dropped 17.8% YoY to $74 million;
- Its managed portfolio was $28.0 billion, unchanged from Q1 2025; and
- Thirty-plus days delinquencies rose 1.2 percentage points YoY to 3.5%.
Other Q1 results include:
- Global agriculture sales rose 0.6% YoY to $2.6 billion;
- Global construction sales fell 2.9% YoY to $574 million; and
- Total revenue ticked down 0.1% YoY to $3.8 billion.
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