Net margins have plummeted to a precarious 0.2% in 2026Q1, reflecting a sharp decline from the 9.1% levels observed in 2023Q4.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 |
|---|
| Sales/Revenue | 18.09B | 18.1B | 19.84B | 24.69B | 23.55B | 19.49B | 14.78B | 28.08B | 29.71B | 27.7B | 25.09B | 25.91B | 32.55B | 33.84B | 32.8B | 19.18B | 15.61B | 13.76B | 18.48B | 15.96B | 13B | 12.57B | 12.18B |
| Revenue Growth % | -4.01% | -8.76% | -19.65% | 4.82% | 20.82% | 31.9% | -47.37% | -5.5% | 7.29% | 10.36% | -3.15% | -20.41% | -3.79% | 3.16% | 70.97% | 22.92% | 13.43% | -25.52% | 15.74% | 22.82% | 3.36% | 3.25% | - |
| Cost of Goods Sold | 12.41B | 12.41B | 13.35B | 16.84B | 16.58B | 14.1B | 11.15B | 21.76B | 23.23B | 21.83B | 19.78B | 20.36B | 26.81B | 26.55B | 25.57B | 14.74B | 12.01B | 10.86B | 14.05B | 12.15B | 9.93B | 9.93B | 9.78B |
| COGS % of Revenue | - | 68.56% | 67.3% | 68.21% | 70.39% | 72.32% | 75.46% | 77.5% | 78.18% | 78.82% | 78.8% | 78.56% | 82.35% | 78.47% | 77.95% | 76.83% | 76.95% | 78.94% | 76.07% | 76.13% | 76.42% | 79% | 80.32% |
| Gross Profit | 5.68B | 5.69B | 6.49B | 7.85B | 6.97B | 5.4B | 3.63B | 6.32B | 6.48B | 5.87B | 5.04B | 5.55B | 5.75B | 7.29B | 7.23B | 4.45B | 3.6B | 2.9B | 4.42B | 3.81B | 3.06B | 2.64B | 2.4B |
| Gross Margin % | 31.38% | 31.44% | 32.7% | 31.79% | 29.61% | 27.68% | 24.54% | 22.5% | 21.82% | 21.18% | 20.09% | 21.44% | 17.65% | 21.53% | 22.05% | 23.17% | 23.05% | 21.06% | 23.93% | 23.87% | 23.58% | 21% | 19.68% |
| Gross Profit Growth % | - | -12.26% | -17.37% | 12.55% | 29.24% | 48.77% | -42.58% | -2.58% | 10.55% | 16.35% | -9.25% | -3.32% | -21.13% | 0.73% | 62.7% | 23.58% | 24.12% | -34.46% | 16.06% | 24.31% | 16.05% | 10.18% | - |
| Operating Expenses | 3.03B | 2.9B | 2.64B | 2.9B | 2.62B | 2.1B | 1.79B | 3B | 3.16B | 2.97B | 3.12B | 3.17B | 4.03B | 4.32B | 4.17B | 2.37B | 2.15B | 1.88B | 2.12B | 1.84B | 1.61B | 1.48B | 1.38B |
| OpEx % of Revenue | - | 16.03% | 13.29% | 11.76% | 11.12% | 10.75% | 12.11% | 10.67% | 10.62% | 10.71% | 12.44% | 12.25% | 12.38% | 12.76% | 12.7% | 12.35% | 13.77% | 13.69% | 11.47% | 11.56% | 12.43% | 11.77% | 11.31% |
| Selling, General & Admin | 1.96B | 1.88B | 1.71B | 1.86B | 1.75B | 1.45B | 1.3B | 2.22B | 2.35B | 2.31B | 2.26B | 2.32B | 2.92B | 3.09B | 3.04B | 1.84B | 1.7B | 1.49B | 1.7B | 1.44B | 1.25B | 1.18B | 1.11B |
| SG&A % of Revenue | - | 10.37% | 8.63% | 7.55% | 7.44% | 7.46% | 8.77% | 7.89% | 7.91% | 8.36% | 9.01% | 8.94% | 8.98% | 9.14% | 9.26% | 9.61% | 10.88% | 10.8% | 9.19% | 9% | 9.6% | 9.42% | 9.11% |
| Research & Development | 1.07B | 1.02B | 924M | 1.04B | 866M | 642M | 493M | 1.03B | 1.06B | 957M | 860M | 856M | 1.11B | 1.22B | 1.13B | 526M | 451M | 398M | 422M | 409M | 367M | 296M | 267M |
| R&D % of Revenue | - | 5.66% | 4.66% | 4.22% | 3.68% | 3.29% | 3.34% | 3.67% | 3.57% | 3.46% | 3.43% | 3.3% | 3.4% | 3.61% | 3.44% | 2.74% | 2.89% | 2.89% | 2.28% | 2.56% | 2.82% | 2.35% | 2.19% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -250M | -256M | -305M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 2.65B | 2.79B | 3.85B | 4.95B | 4.36B | 3.3B | 1.84B | 3.32B | 3.33B | 2.9B | 1.92B | 2.38B | 2.85B | 2.86B | 3.07B | 2.08B | 1.45B | 1.01B | 2.3B | 1.97B | 1.45B | 1.16B | 1.02B |
| Operating Margin % | 14.65% | 15.42% | 19.41% | 20.03% | 18.5% | 16.93% | 12.44% | 11.83% | 11.2% | 10.46% | 7.65% | 9.19% | 8.74% | 8.45% | 9.35% | 10.82% | 9.28% | 7.37% | 12.46% | 12.31% | 11.16% | 9.23% | 8.38% |
| Operating Income Growth % | - | -27.53% | -22.14% | 13.52% | 32% | 79.54% | -44.66% | -0.21% | 14.84% | 51.02% | -19.44% | -16.3% | -0.42% | -6.81% | 47.74% | 43.37% | 42.8% | -55.95% | 17.15% | 35.52% | 24.89% | 13.82% | - |
| EBITDA | 3.29B | 3.42B | 4.46B | 5.51B | 4.89B | 3.84B | 2.38B | 4.54B | 4.67B | 4.25B | 3.18B | 3.53B | 3.99B | 3.96B | 4.11B | 2.5B | 1.86B | 1.41B | 2.68B | 2.34B | 1.77B | 1.47B | 1.34B |
| EBITDA Margin % | 18.21% | 18.89% | 22.46% | 22.32% | 20.77% | 19.68% | 16.08% | 16.15% | 15.7% | 15.34% | 12.68% | 13.62% | 12.24% | 11.71% | 12.52% | 13.04% | 11.94% | 10.21% | 14.48% | 14.64% | 13.59% | 11.69% | 11.04% |
| EBITDA Growth % | -21.02% | -23.25% | -19.13% | 12.64% | 27.5% | 61.45% | -47.62% | -2.77% | 9.82% | 33.54% | -9.84% | -11.49% | 0.63% | -3.53% | 64.11% | 34.3% | 32.6% | -47.5% | 14.51% | 32.33% | 20.14% | 9.29% | - |
| D&A (Non-Cash Add-back) | 645M | 629M | 605M | 564M | 535M | 536M | 538M | 1.22B | 1.34B | 1.35B | 1.26B | 1.15B | 1.14B | 1.1B | 1.04B | 426M | 415M | 391M | 374M | 372M | 316M | 309M | 325M |
| EBIT | 2.65B | 2.79B | 3.07B | 4.05B | 3.34B | 2.44B | 481M | 3.32B | 3.33B | 2.9B | 1.01B | 2.38B | 2.85B | 2.86B | 3.07B | 2.08B | 1.45B | 1.01B | 2.3B | 1.97B | 1.45B | 1.16B | 651M |
| Net Interest Income | -1.51B | -1.55B | -1.61B | -1.34B | -734M | -549M | -660M | -798M | -812M | -884M | -1.03B | -1.1B | -1.31B | -1.21B | -1.21B | -786M | -830M | -671M | -765M | -701M | -578M | -551M | -492M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 1.51B | 1.55B | 1.61B | 1.34B | 734M | 549M | 660M | 798M | 812M | 884M | 1.02B | 1.1B | 1.31B | 1.21B | 1.21B | 786M | 830M | 671M | 765M | 701M | 578M | 551M | 492M |
| Other Income/Expense | -2.13B | -2.1B | -2.25B | -2.06B | -1.57B | -1.27B | -1.95B | -2.14B | -1.81B | -2.15B | 0 | -1.77B | -1.67B | -1.36B | -1.63B | -809M | -933M | -1.14B | -1.09B | -1.04B | -977M | -856M | -861M |
| Pretax Income | 524M | 689M | 1.59B | 2.88B | 2.79B | 2.03B | -113M | 1.18B | 1.52B | 747M | 49M | 608M | 1.18B | 1.5B | 1.44B | 1.27B | 515M | -130M | 1.21B | 928M | 473M | 305M | 159M |
| Pretax Margin % | 2.9% | 3.81% | 8.04% | 11.67% | 11.83% | 10.41% | -0.76% | 4.21% | 5.1% | 2.7% | 0.2% | 2.35% | 3.61% | 4.43% | 4.39% | 6.6% | 3.3% | -0.94% | 6.54% | 5.81% | 3.64% | 2.43% | 1.31% |
| Income Tax | 141M | 184M | 336M | 594M | 747M | 229M | 85M | -271M | 417M | 457M | 298M | 360M | 467M | 671M | 564M | 343M | 77M | 92M | 385M | 354M | 165M | 116M | 39M |
| Effective Tax Rate % | 26.91% | 26.71% | 21.07% | 20.62% | 26.81% | 11.28% | -75.22% | -22.91% | 27.51% | 61.18% | 608.16% | 59.21% | 39.74% | 44.76% | 39.17% | 27.07% | 14.95% | -70.77% | 31.84% | 38.15% | 34.88% | 38.03% | 24.53% |
| Net Income | 386M | 510M | 1.25B | 2.27B | 2.03B | 1.72B | -493M | 1.42B | 1.07B | 272M | -252M | 253M | 710M | 677M | 756M | 939M | 452M | -190M | 825M | 559M | 292M | 163M | 125M |
| Net Margin % | 2.13% | 2.82% | 6.28% | 9.22% | 8.62% | 8.84% | -3.34% | 5.06% | 3.59% | 0.98% | -1% | 0.98% | 2.18% | 2% | 2.3% | 4.89% | 2.9% | -1.38% | 4.47% | 3.5% | 2.25% | 1.3% | 1.03% |
| Net Income Growth % | -61.74% | -59.07% | -45.23% | 12.12% | 17.76% | 449.49% | -134.67% | 33.15% | 292.65% | 207.94% | -199.6% | -64.37% | 4.87% | -10.45% | -19.49% | 107.74% | 337.89% | -123.03% | 47.59% | 91.44% | 79.14% | 30.4% | - |
| Net Income (Continuing) | 383M | 505M | 1.26B | 2.29B | 2.04B | 1.8B | -198M | 1.45B | 1.1B | 290M | -249M | 248M | 708M | 828M | 876M | 924M | 438M | -222M | 824M | 574M | 308M | 189M | 120M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | -132M | -240M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 56M | 95M | 117M | 120M | 49M | 75M | 122M | 75M | 55M | 33M | 28M | 59M | 55M | 66M | 908M | 63M | 75M | 92M | 121M | 117M | 109M | 91M | 106M |
| EPS (Diluted) | 0.31 | 0.41 | 0.99 | 1.69 | 1.49 | 1.27 | -0.36 | 1.05 | 0.78 | 0.20 | -0.19 | 0.19 | 0.52 | 0.54 | 0.16 | 1.02 | 0.49 | -0.21 | 0.91 | 0.62 | 0.32 | 0.18 | 0.00 |
| EPS Growth % | -62.39% | -58.59% | -41.42% | 13.42% | 17.32% | 452.78% | -134.29% | 34.62% | 290% | 205.26% | -200% | -63.46% | -3.7% | 237.5% | -84.31% | 108.16% | 333.33% | -123.08% | 46.77% | 93.75% | 77.78% | - | - |
| EPS (Basic) | - | 0.41 | 0.99 | 1.71 | 1.50 | 1.27 | -0.36 | 1.05 | 0.79 | 0.20 | -0.19 | 0.19 | 0.52 | 0.54 | 0.16 | 0.45 | 0.50 | -0.21 | 0.91 | 0.62 | 0.36 | 0.32 | 0.00 |
| Diluted Shares Outstanding | 1.24B | 1.25B | 1.26B | 1.35B | 1.36B | 1.36B | 1.37B | 1.35B | 1.36B | 1.37B | 1.36B | 1.36B | 1.35B | 1.26B | 4.68B | 920.25M | 913.36M | 908.77M | 908.38M | 906.47M | 907.24M | 895.75M | 0 |
| Basic Shares Outstanding | 1.24B | 1.25B | 1.25B | 1.33B | 1.35B | 1.35B | 1.37B | 1.35B | 1.36B | 1.36B | 1.36B | 1.36B | 1.37B | 1.26B | 4.68B | 1.22B | 910.3M | 908.77M | 908.38M | 906.47M | 815.36M | 512.95M | 0 |
| Dividend Payout Ratio | - | 65.29% | 48.72% | 23.65% | 20.85% | 10.91% | - | 19.9% | 22.75% | 61.76% | - | 117.39% | 53.8% | 54.36% | 81.48% | 1.17% | - | - | 14.3% | 10.55% | 20.21% | 20.86% | 26.4% |
Cyclical demand and margin erosion
As evidenced by the most recent quarterly data, CNH's revenue growth has remained in negative territory for several consecutive periods, with the latest figures showing a -0.1% year-over-year decline, signaling that the company is struggling to find a floor in a challenging global agricultural machinery market.
The consistent negative revenue growth trend suggests that the company is facing significant headwinds from reduced farmer capital expenditure budgets. Investors should monitor whether the current stabilization at -0.1% represents a genuine bottoming of the cycle or merely a temporary pause before further deterioration.
According to the provided financial statements, CNH's net margin has plummeted to a precarious 0.2% in 2026Q1, a stark contrast to the 9.1% levels observed in late 2023, indicating that the company's profitability is highly sensitive to current volume declines and rising operational costs.
The sharp contraction in net margins suggests that the company's high fixed-cost base is failing to absorb the impact of lower production volumes. This trend warrants further investigation into whether the current pricing power is sufficient to offset inflationary pressures or if the company is resorting to margin-dilutive discounting to clear inventory.
Based on reported figures, operating margins have compressed from a peak of 20.4% in 2024Q1 to 13.7% in 2026Q1, demonstrating that the company's historical operating leverage is now working against it as revenue declines outpace the ability to rationalize the underlying cost structure.
The inability to maintain operating margins during this downturn suggests that the company's manufacturing footprint may be oversized for current demand levels. This appears to indicate that management's efforts to control SG&A have not been aggressive enough to mitigate the impact of the cyclical revenue drop.
As reported in the income statement, the disparity between operating income of $524 million and net income of only $7 million in 2026Q1 suggests that significant non-operating charges or interest expenses are severely eroding the core earnings power of the industrial business.
The collapse in EPS to $0.01 indicates that the company's bottom line is highly vulnerable to non-operating volatility. Investors should monitor the interest burden associated with the captive finance arm, as it appears to be a primary driver of the disconnect between operating performance and shareholder earnings.
While management may point to potential recovery in the agricultural cycle, the persistent decline in net margins and the accumulation of dealer inventory suggest that the company remains highly vulnerable to further price competition from better-capitalized peers like John Deere in the current down-cycle.
Short-sellers would likely focus on the potential for further margin compression if the company is forced to increase retail incentives to move aging equipment. The current trajectory suggests that the company's competitive position may be weakening as it struggles to balance market share with profitability.
Quick answers to the most common questions about buying CNH stock.
For fiscal year 2025, CNH Industrial N.V. (CNH) reported total revenue of $18.10B. This represents a 48.6% increase compared to $12.18B in 2004.
CNH Industrial N.V. (CNH) is profitable, generating $510.0M in net income for the fiscal year ending 2025 with a net profit margin of 2.8%.
CNH Industrial N.V. (CNH) reported an operating income of $2.79B, resulting in an operating profit margin of 15.4%. This margin reflects the operational efficiency of the business before interest and taxes.
CNH Industrial N.V. (CNH) generated $5.69B in gross profit for the year, representing a gross profit margin of 31.4%. This demonstrates the company's core pricing power and production efficiency.