CNH has reported lower second-quarter profits despite higher revenues, as the agricultural machinery manufacturer continues to navigate weak farm markets, high input costs and global trade uncertainty.
The group, whose brands include Case IH, New Holland, Steyr and Flexi-Coil, reported net income of $141 million for the three months to June 30, down from $217 million a year earlier.
Consolidated revenue increased by 2% to $4.8 billion, while net sales from industrial activities rose 3% to $4.14 billion.
Chief executive and chairman Gerrit Marx said the business had continued to perform well despite the agricultural sector remaining at a low point in the market cycle.
“Our second-quarter results reflect disciplined execution by the CNH team in a market that remains at the trough of the agriculture cycle.”
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He said the company had achieved year-on-year revenue growth while continuing to improve quality, sourcing, manufacturing efficiency and dealer network consolidation.
“While farmer economics remain pressured, we are seeing constructive equipment-cycle indicators, including dealer inventory normalization, aging fleets, and a more balanced relationship between new and used equipment pricing.”
Agriculture sales remained broadly unchanged at $3.28 billion, although adjusted operating profit fell 35% to $170 million.
CNH attributed the decline to lower sales volumes in South America, weaker product mix in North America and Europe, tariff impacts, and increased spending on research, development and administration.
Across major machinery markets, demand remained subdued. Tractor sales fell by 16% for machines below 140hp and 17% for larger models in North America during the quarter. In Europe, the Middle East and Africa, tractor demand declined by 11%, while South American demand also weakened.
Construction equipment sales performed more strongly, rising 12% to $866 million, driven by higher North American shipments. However, profitability in the division also declined as tariffs and research costs offset higher volumes.
CNH’s financial services division also reported weaker performance, with revenues falling 4% to $656 million and net income declining 18% to $71 million. The company said more customers were falling behind with repayments, particularly in Brazil, where difficult trading conditions continue to affect farm businesses.
Looking ahead, CNH said farmers continued to face significant challenges from low commodity prices, elevated production costs and an uncertain global trading environment.
The company said it would continue keeping agricultural production levels low, working with dealers to reduce machinery inventories and pursuing further cost efficiencies.
Marx said the business remained focused on supporting customers while preparing for the next upturn.
“We remain focused on supporting our dealers and customers today while investing in the iron and technology capabilities that will strengthen CNH through the next cycle.”
Despite the difficult conditions, CNH said recent tariff changes had been beneficial and it expected to finish the year at the upper end of its previous financial guidance.
The company now expects agricultural sales to remain broadly flat during 2026, with adjusted earnings margins between 5% and 5.5%, while construction sales are forecast to grow by between 5% and 10%.
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