CNH Industrial Capital originations dip 4.3%

CNH Industrial Capital’s originations dropped in the second quarter as its parent company’s equipment sales plunged amid tariff uncertainty, low commodity prices and ongoing production cuts. 

Farm and construction equipment manufacturer CNH Industrial lowered production hours by 12% in Q2 to help reduce dealer inventories, Chief Executive Gerrit Marx said during today’s earnings call. 

“Our ag dealers continue to make progress in reducing their inventory with another $200 million plus reduction in the quarter,” he said. “We are encouraged by the reductions we have seen in used inventories, not only at our own ag dealers, but across the industry. We are focused on clearing the yards to create space for the model year 2026 machines to come.” 

The company is also focused on advancing new technologies and executing cost-saving initiatives, Marx said. The cost-saving efforts may be discontinued in Q3, depending on the impact of tariffs, he said.  

BY THE NUMBERS: The financing arm of CNH reported in Q2: 

• Originations fell 4.3% year over year to $2.7 billion; 
• Revenue totaled $685 million, down 0.3% YoY; 
• A managed portfolio of $28.7 billion, up 0.7% YoY; 
• Net income declined 4.4% YoY to $87 million; and 
• Delinquencies of 30 days or more rose 1.4 percentage points YoY to 3.9%. 

Meanwhile, CNH Industrial reported these sales figures in Q2: 

• Global industrial sales dropped 16.3% YoY to $4 billion;  
• Global agriculture sales fell 17% YoY to $3.2 billion; and 
• Global construction sales declined 13.1% YoY to $773 million. 

STATE OF PLAY: Decreased agriculture equipment sales reflect ongoing challenges facing farmers, including low commodity prices and tariff uncertainty, Marx said. Tight cash flow among farmers has contributed to a prolonged sales slump for both agriculture equipment dealers and OEMs. 

In light of new tariffs, navigating uncertainty will remain a focal point for the company in the second half of 2025, Chief Financial Officer Jim Nickolas said during the call. 

“As of July 31, we are monitoring countries such as India and Brazil that have a risk based on recent comments by the U.S. administration,” he said. “We are still calculating the 2025 impact on our business from tariffs imposed on U.S. imports of copper and potentially on semiconductor chips. This will depend on the current inventory levels at our suppliers, and we will work closely with them to mitigate as much of the impact as possible.” 

MARKET REACTION: Shares of CNH Industrial [NYSE: CNH] were down 4% from market open to $12.46 as of market close today. It has a market capitalization of $15.6 billion.

Check out our exclusive industry data here.