CNH Financial Services originations drop 12.3% YoY

CNH Industrial reported mixed fourth-quarter results and sharply lower full-year earnings as agricultural equipment demand remained soft, while CNH Financial Services increased quarterly profit despite lower originations.

For the fourth quarter ended Dec. 31, CNH reported consolidated revenues of $5.2 billion, up 6% year over year, while net income fell 49.4% YoY to $89 million, according to today’s earnings release. CNH’s full-year revenues were $18.1 billion, down 8.8% YoY, while net income declined 59.9% YoY to $505 million.

Other metrics include:

• Financial services revenues landed at $700 million, down 5.8% YoY;

• Financial services net income was $109 million, up 18.5% YoY;

• Retail loan originations totaled $2.8 billion, down 12.3% YoY;

• Financial services managed portfolio at year-end was $28.6 billion, up 2.5% YoY;

• Receivables 30+ days past due finished at 3.1%, up 120 basis points YoY;

• Full-year financial services revenues landed at $2.7 billion, down 1.9% YoY;

• Full-year net income was $333 million, down 12.1% YoY;

• Q4 agriculture net sales totaled $3.6 billion, up 5% YoY;

• Full-year agriculture net sales were $12.4 billion, down 11.6% YoY;

• Q4 construction net sales landed at $853 million, up 18.8% YoY; and
• Full-year construction net sales finished at $3 billion, down 3.2% YoY.

Meanwhile, North American tractor demand continues to decline, as:

• Tractors with greater than 140 horsepower were down 31%

• Tractors with less than 140 horsepower were down 14%; and

• Combines were down 16.0%

The company expects continued pressure in agricultural equipment markets in 2026, ahead of a projected industry recovery in 2027, according to the release

MARKET REACTION: Shares of CNH Industrial [NYSE: CNH] were up 2.7% or 34 cents from market open to $13.09 as of market close today. It has a market capitalization of $15.9 billion.  

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