Q2 FY2026
Filed Aug 3, 2026Consolidated revenues for the second quarter of 2026 were $4.8 billion, up 2% year-over-year; reported Net income was $141 million and adjusted Net income was $161 million.
Second-quarter revenue and Industrial Activities net sales increased year-over-year, but reported net income, adjusted EBIT, adjusted net income, EPS, operating cash flow and free cash flow declined from Q2 2025. Full-year outlook was narrowed to the higher end of previously communicated ranges.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Consolidated revenues, Q2 2026GAAP | $4,803 million | – | +2% |
| Net sales of Industrial Activities, Q2 2026GAAP | $4,143 million | – | +3% |
| Net income, Q2 2026GAAP | $141 million | – | (35)% |
| Diluted EPS, Q2 2026GAAP | $0.11 | – | (0.06) |
| Cash flow provided by operating activities, Q2 2026GAAP | $145 million | – | (627) |
| Income tax expense, Q2 2026GAAP | $43 million | – | – |
| Effective tax rate, Q2 2026GAAP | 25.0% | – | – |
| Adjusted EBIT of Industrial Activities, Q2 2026non-GAAP | $167 million | – | (25)% |
| Adjusted EBIT margin of Industrial Activities, Q2 2026non-GAAP | 4.0% | – | (160) bps |
| Adjusted Net income, Q2 2026non-GAAP | $161 million | – | (25)% |
| Adjusted diluted EPS, Q2 2026non-GAAP | $0.13 | – | (0.04) |
| Free cash flow of Industrial Activities, Q2 2026non-GAAP | $150 million | – | (301) |
| Adjusted effective tax rate, Q2 2026non-GAAP | 25.1% | – | – |
| Agriculture adjusted EBIT, Q2 2026non-GAAP | $170 million | – | (35)% |
| Agriculture adjusted EBIT margin, Q2 2026non-GAAP | 5.2% | – | (290) bps |
| Construction adjusted EBIT, Q2 2026non-GAAP | $15 million | – | (57)% |
| Construction adjusted EBIT margin, Q2 2026non-GAAP | 1.7% | – | (280) bps |
| Financial Services net income, Q2 2026GAAP | $71 million | – | (18)% |
| Retail loan originations, Q2 2026other | $2,531 million | – | (209) |
| Consolidated revenue, six months ended June 30, 2026GAAP | $8,629 million | – | +1% |
| Net sales of Industrial Activities, six months ended June 30, 2026GAAP | $7,313 million | – | +2% |
| Net income, six months ended June 30, 2026GAAP | $151 million | – | (57)% |
| Diluted EPS, six months ended June 30, 2026GAAP | $0.12 | – | (0.15) |
| Cash flow provided by operating activities, six months ended June 30, 2026GAAP | $180 million | – | (754) |
| Adjusted EBIT of Industrial Activities, six months ended June 30, 2026non-GAAP | $122 million | – | (62)% |
| Adjusted EBIT margin of Industrial Activities, six months ended June 30, 2026non-GAAP | 1.7% | – | (280) bps |
| Adjusted Net income, six months ended June 30, 2026non-GAAP | $182 million | – | (48)% |
| Adjusted diluted EPS, six months ended June 30, 2026non-GAAP | $0.14 | – | (0.13) |
| Free cash flow used in Industrial Activities, six months ended June 30, 2026non-GAAP | $(439) million | – | (323) |
| Agriculture adjusted EBIT, six months ended June 30, 2026non-GAAP | $197 million | – | (51)% |
| Agriculture adjusted EBIT margin, six months ended June 30, 2026non-GAAP | 3.4% | – | (350) bps |
| Construction adjusted EBIT, six months ended June 30, 2026non-GAAP | $(13) million | – | (127)% |
| Construction adjusted EBIT margin, six months ended June 30, 2026non-GAAP | (0.9)% | – | (450) bps |
| Financial Services net income, six months ended June 30, 2026GAAP | $145 million | – | (18)% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| AgricultureNet sales were flat year-over-year at $3.3 billion as favorable price realization was offset by lower volumes in South America. | $3,277 million | – | +1% |
| ConstructionNet sales increased 12% driven by higher volumes in North America and included shipments initially delayed during the first quarter of 2026. | $866 million | – | +12% |
| Financial ServicesRevenue declined largely because of unfavorable volumes in South America and North America, reduced used equipment sales from fewer operating lease maturities, and lower yields in all regions except South America, partly offset by favorable currency translation. | $656 million | – | (4)% |
2026 Outlook outlook
- NoteAgriculture segment net sales about flat year-over-year, including +2% currency translation effects
- NoteAgriculture segment adjusted EBIT margin between 5.0% and 5.5%
- NoteConstruction segment net sales up between 5% to 10% year-over-year, including +2% currency translation effects
- NoteConstruction segment adjusted EBIT margin between 1.8% and 2.3%
- NoteFree Cash Flow of Industrial Activities between $200 million and $400 million
- NoteAdjusted diluted EPS between $0.41 to $0.46
Capital returns
- Returned $0.2 billion to shareholders through dividends and share repurchases.
What drove it
- Agriculture price realization was favorable, but South America volumes were lower.
- Agriculture profitability was affected by lower South America volumes, unfavorable North America and EMEA mix, tariffs, higher SG&A and R&D expenses, and lower joint venture results.
- Construction revenue benefited from North American volumes and first-quarter delayed shipments.
- Construction profitability was pressured by tariffs and higher R&D expenses, partly offset by higher volumes and lower SG&A expenses.
- CNH cited dealer inventory normalization, aging fleets, and a more balanced relationship between new and used equipment pricing as constructive equipment-cycle indicators.
- Financial Services results were affected by margin compression in all regions except North America, lower South America and North America volumes, higher risk costs in Brazil, and increased labor costs.
Concerns
- Farmers face low commodity prices, high input costs, and an uncertain trade environment.
- Agriculture adjusted EBIT margin declined to 5.2% from 8.1%.
- Construction adjusted EBIT margin declined to 1.7% from 4.5%.
- Operating cash flow declined to $145 million from $772 million and free cash flow of Industrial Activities declined to $150 million from $451 million.
- Receivables more than 30 days past due increased to 4.4% from 3.9%, due to economic factors affecting farmers, specifically in South America.
- CNH is incurring higher transportation costs and managing challenging market conditions in South America.
What to watch
- Agriculture segment adjusted EBIT margin guidance of between 5.0% and 5.5%.
- Construction segment adjusted EBIT margin guidance of between 1.8% and 2.3%.
- Free Cash Flow of Industrial Activities guidance of between $200 million and $400 million.
- Adjusted diluted EPS guidance of between $0.41 to $0.46.
- Dealer inventory reduction, production levels, tariff cost offsets, and farmer-market conditions.
- Financial Services portfolio quality and the receivable balance greater than 30 days past due.
Balance sheet and cash flow
- Net cash provided by operating activities was $145 million in Q2 2026.
- Free cash flow of Industrial Activities was $150 million in Q2 2026.
- Free cash flow used in Industrial Activities was $(439) million for the six months ended June 30, 2026.
- Financial Services equity at quarter-end was $2,923 million, compared with $2,907 million in Q2 2025.
- The managed portfolio was $28.0 billion as of June 30, 2026, down $0.7 billion compared to June 30, 2025.
- The receivable balance greater than 30 days past due was 4.4% of receivables as of June 30, 2026, compared with 3.9% as of June 30, 2025.
Analysis
CNH delivered modest top-line growth in the second quarter, with consolidated revenues of $4.8 billion, up 2% year-over-year, and Net Sales of Industrial Activities of $4.14 billion, up compared to Q2 2025. The revenue outcome came despite an agriculture market that management characterized as being at the trough of the cycle. Agriculture net sales were flat year-over-year at $3.3 billion as price realization offset lower South America volumes, while Construction net sales increased 12% to $866 million on higher North American volumes and shipments delayed from the first quarter.
Profitability remained under pressure. Reported Net income was $141 million versus $217 million in Q2 2025, while adjusted Net income was $161 million versus $216 million. Adjusted EBIT of Industrial Activities declined to $167 million from $224 million and the adjusted EBIT margin fell to 4.0% from 5.6%. Agriculture adjusted EBIT fell to $170 million from $263 million, reflecting lower South America volumes, unfavorable mix, tariffs, higher SG&A and R&D expenses, and lower joint venture results. Construction adjusted EBIT declined to $15 million from $35 million, with tariffs and higher R&D expenses outweighing the volume improvement.
Cash generation was materially lower year-over-year. Cash flow provided by operating activities was $145 million compared with $772 million, and Free cash flow of Industrial Activities was $150 million compared with $451 million. For the six months ended June 30, 2026, Free cash flow used in Industrial Activities was $(439) million compared with $(116) million. CNH nevertheless returned $0.2 billion to shareholders through dividends and share repurchases. Financial Services also weakened, with revenue down 4%, net income down to $71 million from $87 million, and receivables more than 30 days past due rising to 4.4% from 3.9%.
The outlook signals management expects results at the higher end of its previous ranges, though the prior outlook itself was not provided. CNH now forecasts Agriculture net sales about flat year-over-year and an Agriculture adjusted EBIT margin between 5.0% and 5.5%. Construction net sales are projected to increase between 5% and 10% year-over-year, with an adjusted EBIT margin between 1.8% and 2.3%. The principal issues for the remainder of 2026 are execution on cost and tariff mitigation, channel inventory reduction, South American demand and credit conditions, and delivery of Free Cash Flow of Industrial Activities between $200 million and $400 million.
Management, verbatim
Our second quarter results reflect disciplined execution by the CNH team in a market that remains at the trough of the agriculture cycle.
Gerrit Marx, Chief Executive Officer of CNH
Not in the filing
stated, not guessed- Previous outlook figures were not provided, so no comparison of reported results with prior guidance can be made.
- GAAP gross profit and gross margin were not reported.
- GAAP operating income and operating margin were not reported.
- Cash balance, total debt, and net debt were not reported.
- The amounts of dividends and share repurchases were not separately reported.
- Quarter-over-quarter comparisons were not reported.
- A consolidated revenue guidance figure was not reported.
- Guidance for gross margin, operating expenses, and tax rate was not reported.
- Prior-quarter values for reported metrics were not reported.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.