CNH Q3 2026 slides: margin gains fuel pure-play agriculture pivot

CNH Industrial plans to sell a 70% stake in its construction equipment business, aiming to focus on agriculture. The move comes amid a construction boom and follows recent strategic shifts. CNH's construction business reported $777M in net sales, up 5% YoY, while agriculture sales declined 2% to $2.9B. The company expects the sale to improve margins and net profit was $35M in the latest quarter.

Truist Securities reduced its price target for CNH Industrial (NYSE:CNH) to $16 from $17, citing concerns over the agricultural cycle, while maintaining a Buy rating. The company plans to sell 70% of its construction business to Kobelco for $700 million, using proceeds to reduce debt. CNH reported mixed Q3 2026 results, beating EPS estimates but missing revenue targets. Analysts have mixed views on the stock's valuation.

Bernstein raised CNH Industrial's (NYSE:CNH) price target to $12.00 from $9.00, maintaining a Market Perform rating. The company reported adjusted EPS of $0.16, 60% above estimates, and guided FY2026 EPS to $0.46. CNH announced a joint venture with Kobelco for $700 million, focusing on its agriculture segment. Despite a 40% YTD gain, CNH trades at a P/E of 52.5, deemed overvalued by InvestingPro. Raymond James raised its target to $15.00, citing strong North American market position.

CNH Industrial NV (CNH) reported Q3 2026 earnings, announcing a joint venture with Kobelco for its construction business. Adjusted EBIT rose 94% to $202M, with margins improving across segments. The company raised its free cash flow and EPS guidance. Agriculture sales declined 2% due to market conditions, while construction sales grew 5%. CNH expects a net investment in Q4 related to tariff refunds, impacting results.

CNH Industrial agreed to sell a 70% stake in its Construction Equipment business to Kobelco Construction Machinery for $700m, forming a joint venture. The deal values the business at $1bn and is expected to close by the end of 2027. CNH will use proceeds to reduce debt and improve its balance sheet. The new entity will operate under brands like CASE Construction and Eurocomach, combining CNH's global network with Kobelco's technology.

CNH Industrial N.V. reported Q3 2026 earnings with industrial adjusted EBIT up 94% despite flat sales. The company plans to pivot to a pure-play agriculture business, forming a joint venture with Kobelco for its construction segment, retaining a 30% stake. Agricultural sales declined 2% due to regional challenges, but profitability was boosted by $71M in tariff refunds.