CNH Industrial cuts FY25 adjusted EPS view to 50c-70c from 65c-75c

FY25 consensus 68c. “The company forecasts that 2025 global industry retail sales will be lower in both the agriculture and construction equipment markets when compared to 2024. In addition, CNH is focused on driving down excess channel inventory primarily by producing fewer units than the retail demand level. Therefore, 2025 net sales will be lower than in 2024. The lower production and sales levels will negatively impact our segment margin results. However, the company’s ongoing efforts to reduce its operating costs will partially mitigate the margin erosion. CNH is continuing to focus on reducing product costs through lean manufacturing principles and strategic sourcing. The company will also carefully manage its SG&A and R&D expenses accordingly. In addition to the lower cyclical industry sales, the company has been evaluating multiple potential global trade scenarios. The uncertainty of those scenarios, including the amount and duration of tariffs levied, the policy reactions of U.S. trading partners, and the impact to our end customers, may affect our forecast for the year. The company has therefore evaluated a wider set of possible outcomes, including tariffs remaining at their current levels through the remainder of the year and, as of July 9, 2025, tariffs increasing to the levels announced by the U.S. government on April 2, 2025.”