CNH Industrial N.V.: Comprehensive Corporate Profile

Quick Facts / Company Snapshot

• Company Name: CNH Industrial N.V.
• Trading Symbol: CNH (New York Stock Exchange)
• Headquarters: Basildon, Essex, United Kingdom
• Founded (Current Form): 2013 (via merger of Fiat Industrial S.p.A. and CNH Global N.V.)
• Consolidated Revenues (2024): $19,836 million
• Net Income (2024): $1,259 million
• Total Assets (2024): $42,933 million
• Total Debt (2024): $26,882 million
• Employees (2024): 35,850
• Global Presence: Commercial presence in approximately 167 countries
• Manufacturing Facilities: 40
• Patents Held: Approximately 11,000
• Agriculture Segment Revenue (2024): $14,007 million
• Construction Segment Revenue (2024): $3,053 million
• Financial Services Revenue (2024): $2,774 million
• R&D Investment (2024): $924 million
• Agriculture Dealer Locations: More than 6,000

Company Overview

CNH Industrial N.V. is a leading global equipment company dedicated to the design, production, marketing, and sale of agricultural and construction equipment. The organization operates as a significant player in the capital goods sector, leveraging a robust global network that includes industrial, commercial, and financial services subsidiaries located in 31 countries. The company maintains a commercial presence in approximately 167 countries, allowing it to serve a diverse international customer base.

The company was formed in 2013 through a business combination transaction between Fiat Industrial S.p.A. and its subsidiary CNH Global N.V., although it was incorporated under the laws of the Netherlands on November 23, 2012. CNH Industrial N.V. qualifies as a U.S. domestic issuer effective January 1, 2025, following a determination that it no longer met the definition of a foreign private issuer as of June 30, 2024.

CNH’s operations are distinctly categorized into “Industrial Activities,” which encompass its Agriculture and Construction segments, and “Financial Services.” The company focuses on delivering customer-centric excellence and strategic growth, supported by a portfolio of specialized brands that cater to specific regional and operational needs. The organization emphasizes innovation through investments in integrated solutions, precision technologies, digital platforms, connectivity, and automation.

Business Segments and Revenue Breakup

CNH organizes its operations into three primary reportable segments: Agriculture, Construction, and Financial Services.

Agriculture

The Agriculture segment designs, engineers, manufactures, distributes, and services a comprehensive line of agricultural equipment. This segment is the primary revenue driver for the company.

• Revenue (2024): $14,007 million
• Operational Scope: The product portfolio includes tractors, combine harvesters, hay and forage equipment, seeding and planting equipment, and self-propelled sprayers. This segment also provides precision agriculture solutions, aftermarket support, and automated steering systems. Key strategic priorities involve integrated solutions such as global navigation satellite system (GNSS) positioning and autonomy.

Construction

The Construction segment focuses on the design, manufacture, and distribution of heavy and light construction equipment.

• Revenue (2024): $3,053 million
• Operational Scope: The product line includes excavators, crawler dozers, graders, wheel loaders, backhoe loaders, skid steer loaders, and compact track loaders. The segment differentiates products based on value, technology, design, and productivity to maintain unique brand identities. Construction equipment is also sold through the agriculture dealer network for specific applications.

Financial Services

This segment offers a range of financial products and services to dealers and customers.

• Revenue (2024): $2,774 million
• Operational Scope: Activities include retail financing for the purchase or lease of new and used equipment, wholesale financing to dealers for inventory, and revolving charge account financing. Financial Services also provides trade receivables factoring for CNH subsidiaries. The segment operates under the brand CNH Capital globally and Banco CNH in Brazil.

History and Evolution

CNH Industrial N.V. was initially formed in 2013 resulting from the business combination of Fiat Industrial S.p.A. and CNH Global N.V. The company was incorporated as a public limited liability company under Dutch law on November 23, 2012.

Throughout its evolution, CNH has engaged in strategic acquisitions to bolster its technological capabilities. In 2021, the company acquired Raven Industries, Inc., enhancing its position in precision agriculture. In 2023, CNH acquired Hemisphere GNSS to secure core satellite navigation technology and Augmenta Holding SAS, a machine vision company specializing in real-time farming optimization. The company also completed the acquisition of Sampierana S.p.A. in 2021 to control the technology and manufacturing of mini and midi excavators.

Prior to January 1, 2025, CNH qualified as a Foreign Private Issuer. Starting with its third-quarter 2022 results, the company began voluntarily reporting financial results under U.S. domestic filer forms. Effective January 1, 2025, CNH is considered a U.S. domestic issuer subject to U.S. proxy rules and Regulation FD.

Products and Services

Agricultural Equipment

• Tractors: Two-wheel and four-wheel drive tractors, crawler tractors (including methane-powered models like the New Holland T6 and T7).
• Harvesting: Grain combine harvesters, grape and sugar cane harvesters.
• Crop Production: Hay and forage equipment, planting and seeding equipment, soil preparation and cultivation implements, and self-propelled sprayers.
• Precision Technology: Guidance systems, automated steering, application control products, and autonomous farming solutions.

Construction Equipment

• Heavy Construction: Crawler excavators, large wheel loaders, graders, and dozers used in road building, infrastructure, and mining.
• Light Construction: Backhoe loaders, skid steer loaders, compact track loaders, mini and midi excavators, and compact wheel loaders.
• Electric Equipment: Battery-powered electric mini excavators and small articulated loaders.

Financial Products

• Retail Financing: Retail notes, finance leases, and operating leases for end-use customers.
• Wholesale Financing: Floorplan financing for dealer inventory and working capital.
• Revolving Charge Accounts: Financing for parts, services, and rentals.

Brand Portfolio

CNH operates a multi-brand strategy to serve global and regional markets effectively.

Global Brands

• Case IH: Specializes in powerful machinery and precision farming solutions for large-scale cash crop producers. Products include high-horsepower tractors and harvesters (grain and sugarcane).
• New Holland: Focuses on a broad range of equipment for livestock, dairy, mixed farming, vineyards, and orchards. It is a leader in combine harvesting and methane power solutions.
• CASE Construction Equipment: Offers a full line of construction equipment including heavy excavators, wheel loaders, and dozers designed for productivity and reliability.
• New Holland Construction: Provides light and compact equipment tailored for farming, landscaping, and residential construction applications.

Regional and Technology Brands

• STEYR: A regional brand focused on the European market, specializing in high-quality tractors for agricultural, municipal, and forestry sectors.
• Raven: A global technology brand developing disruptive agricultural technologies, including autonomy and automation solutions.
• Eurocomach: A brand specializing in mini and midi excavators and compact loaders, selling products in over 40 countries.
• Hemisphere: Provides high-performance satellite positioning technology and GNSS solutions.

Geographical Presence and Region-wise Revenue

CNH categorizes its financial information into four main geographic regions.

1. North America

Includes the United States, Canada, and Mexico.

• Agriculture Net Sales (2024): $5,839 million
• Construction Net Sales (2024): $1,633 million
• Key Facilities: Manufacturing plants in Grand Island, Racine, Fargo, and Wichita. R&D centers in Burr Ridge, New Holland, and Scottsdale.

2. Europe, Middle East, and Africa (EMEA)

Includes member countries of the EU, EFTA, UK, Ukraine, Balkans, Russia, Türkiye, Uzbekistan, Pakistan, Africa, and the Middle East.

• Agriculture Net Sales (2024): $4,267 million
• Construction Net Sales (2024): $660 million
• Key Facilities: Manufacturing plants in Basildon (UK), Zedelgem (Belgium), Jesi and Lecce (Italy), and Plock (Poland).

3. South America

Includes Central and South America and the Caribbean Islands.

• Agriculture Net Sales (2024): $2,280 million
• Construction Net Sales (2024): $540 million
• Key Facilities: Manufacturing plants in Sorocaba, Curitiba, Piracicaba, and Contagem (Brazil), and Cordoba (Argentina).

4. Asia Pacific

Includes Continental Asia (including India), Indonesia, and Oceania.

• Agriculture Net Sales (2024): $1,621 million
• Construction Net Sales (2024): $220 million
• Key Facilities: Manufacturing plants in Noida, Pithampur, and Pune (India), and Harbin (China).

Financial Performance Analysis

In 2024, CNH faced challenging market conditions characterized by decreased industry demand and dealer destocking. Consolidated revenues for the fiscal year ended December 31, 2024, were $19,836 million, a decrease of 20% compared to $24,687 million in 2023.

Net income attributable to CNH Industrial N.V. was $1,246 million in 2024, down from $2,275 million in the prior year. Diluted earnings per share decreased by $0.70 to $0.99 per share. The decline in performance was primarily driven by lower shipment volumes across both Agriculture and Construction segments.

Despite these headwinds, the company maintained a focus on pricing realization and cost management. However, the lower production levels led to reduced fixed cost absorption at manufacturing plants.

Profit and Loss Analysis

Revenue

• Consolidated Revenues: $19,836 million (2024) vs. $24,687 million (2023).
• Net Sales of Industrial Activities: $17,060 million (2024) vs. $22,080 million (2023), representing a 23% decline.
• Financial Services Revenue: $2,774 million (2024), an increase of 7.8% from $2,573 million in 2023.

Cost of Goods Sold (COGS)

• Total COGS: $13,350 million in 2024 compared to $16,838 million in 2023.
• COGS as % of Net Sales: 78.3% in 2024 compared to 76.3% in 2023. The increase in percentage reflects lower production volumes and unfavorable mix, partially offset by improved purchasing and manufacturing costs.

Operating Expenses

• Selling, General, and Administrative (SG&A): $1,712 million in 2024 (8.6% of revenues) vs. $1,863 million in 2023 (7.5% of revenues). The absolute decrease was driven by lower labor costs and reduced variable compensation.
• Research and Development (R&D): $924 million in 2024 vs. $1,041 million in 2023. The company continued to invest in new products and digital solutions despite the spending reduction.
• Restructuring Expenses: $118 million in 2024 compared to $67 million in 2023, primarily related to a program targeting labor and non-labor SG&A expenses.

Profitability

• Income Before Income Taxes: $1,457 million in 2024 vs. $2,703 million in 2023.
• Income Tax Expense: $336 million (Effective tax rate of 23.1%).
• Net Income: $1,259 million in 2024 vs. $2,287 million in 2023, a decrease of 45%.

Balance Sheet Analysis

Assets

• Total Assets: $42,933 million as of December 31, 2024, down from $46,267 million in 2023.
• Cash and Cash Equivalents: $3,191 million.
• Financing Receivables (Net): $23,085 million, representing a significant portion of assets related to the Financial Services segment.
• Inventories (Net): $4,776 million, down from $5,545 million in 2023, reflecting destocking efforts.
• Property, Plant, and Equipment (Net): $1,936 million.
• Goodwill: $3,584 million.

Liabilities

• Total Liabilities: $35,165 million.
• Total Debt: $26,882 million, of which $23,173 million relates to Financial Services activities.
• Trade Payables: $2,292 million.
• Other Liabilities: $5,363 million, including warranty and campaign programs ($633 million) and marketing incentives ($2,075 million).

Equity

• Total Equity: $7,713 million, including non-controlling interests.
• Retained Earnings: $10,309 million.
• Treasury Stock: $1,386 million (cost of shares held).

Cash Flow Analysis

Operating Activities

• Net Cash Provided by Operating Activities: $1,968 million in 2024, an increase from $907 million in 2023.
• Drivers: Net income of $1,259 million, depreciation and amortization of $605 million, and a decrease in working capital requirements, specifically inventory reductions.

Investing Activities

• Net Cash Used in Investing Activities: $2,772 million in 2024.
• Key Outflows: Additions to retail receivables ($8,227 million) and expenditures for property, plant, and equipment ($536 million).
• Key Inflows: Collections of retail receivables ($6,459 million).

Financing Activities

• Net Cash Used in Financing Activities: $67 million in 2024.
• Key Items: Proceeds from long-term debt ($15,111 million) offset by payments of long-term debt ($13,453 million), dividends paid ($607 million), and purchase of treasury stock ($702 million).

Free Cash Flow of Industrial Activities

• Result: A use of free cash flow of $401 million in 2024, compared to positive free cash flow of $1,216 million in 2023. This metric excludes Financial Services cash flows.

Management Discussion & Analysis (MD&A)

Management reported that net sales for 2024 were significantly impacted by decreased industry demand and dealer destocking efforts. In the Agriculture segment, global demand softened, with North American industry volume for high-horsepower tractors down 16% and combines down 22%. In EMEA, tractor and combine demand decreased by 13% and 43%, respectively.

The Construction segment also faced headwinds, with sales declining 22.4% due to lower shipment volumes across all regions. While heavy construction equipment demand showed slight resilience globally (up 1%), light equipment demand fell by 7%.

Despite lower volumes, Financial Services revenue grew by 7.8%, driven by favorable volumes in regions outside EMEA and higher yields. However, net income for Financial Services was impacted by increased risk costs due to higher delinquencies in South America and specific reserve needs in North America.

Management anticipates that certain unfavorable market conditions experienced in 2024 will persist into fiscal year 2025. The company remains focused on strategic priorities, including cost reduction initiatives and the integration of precision technology.

Board of Directors and Leadership Team

Executive Officers

• Gerrit Marx: Chief Executive Officer (Effective 2024)
• Oddone Incisa: Chief Financial Officer (Since 2020)
• Humayun Chishti: President, Construction (Effective 2024)
• Douglas MacLeod: President, Financial Services (Effective 2024)
• Stefano Pampalone: Agriculture Chief Commercial Officer (Effective 2024)
• Roberto Russo: Chief Legal and Compliance Officer (Since 2021)
• Jay Schroeder: Chief Technology Officer (Effective 2024)
• Kelly Manley: Chief Human Resources Officer (Effective 2024)

Board of Directors

• Suzanne Heywood: Executive Director and Chair of the Board
• Gerrit Marx: Executive Director and CEO
• Elizabeth Bastoni: Director
• Howard W. Buffett: Director
• Richard J. Kramer: Director
• Karen Linehan: Director
• Alessandro Nasi: Director
• Vagn Sørensen: Director
• Åsa Tamsons: Director

Subsidiaries, Associates, and Joint Ventures

CNH utilizes joint ventures to expand its market presence. Key entities include:

• New Holland HFT Japan Inc. (Japan): 50% ownership. Distributes New Holland agricultural equipment.
• Al Ghazi Tractors Ltd. (Pakistan): 43.2% ownership. Manufactures and distributes New Holland tractors.
• Türk Traktör ve Ziraat Makineleri A.S. (Türkiye): 37.5% ownership. Manufactures and distributes New Holland and Case IH tractors.
• CNH de Mexico S.A. de C.V. (Mexico): 50% ownership. Manufactures and distributes New Holland agricultural equipment.
• CNH Industrial Capital Europe S.a.S. (Europe): 24.95% ownership. Provides retail financing to Agriculture and Construction customers in EMEA.

Physical Properties (Plants and Offices)

As of December 31, 2024, CNH owned or leased 40 manufacturing facilities.

Key Manufacturing Facilities – North America

• Grand Island, NE: Combines, Windrowers, Bale Wagons (128,000 sqm)
• Racine, WI: Tractors, transmissions (105,000 sqm)
• Fargo, ND: Tractors, Wheel Loaders (88,000 sqm)
• Wichita, KS: Skid Steer Loaders (46,000 sqm)
• New Holland, PA: Hay & Forage (104,000 sqm)

Key Manufacturing Facilities – EMEA

• Basildon, UK: Tractors (129,000 sqm)
• Zedelgem, Belgium: Combines, Forage Harvesters, Balers (154,000 sqm)
• Lecce, Italy: Wheel Loaders, Telehandlers, Graders (130,000 sqm)
• Plock, Poland: Combines, Balers (129,000 sqm)
• Jesi, Italy: Tractors (77,000 sqm)

Key Manufacturing Facilities – South America

• Sorocaba, Brazil: Combines and others (188,000 sqm)
• Curitiba, Brazil: Combines and Tractors (117,000 sqm)
• Cordoba, Argentina: Combines, Sprayers, Tractors (35,000 sqm)

Key Manufacturing Facilities – Asia Pacific

• Harbin, China: Combines, Tractors, Balers (121,000 sqm)
• Noida, India: Tractors (95,000 sqm)
• Pune, India: Harvesters, Balers, Tractors (85,000 sqm)

Segment-wise Performance

Agriculture Performance (2024 vs 2023)

• Net Sales: Decreased 22.8% to $14,007 million.
• Adjusted EBIT: $1,470 million, down $1,166 million from the prior year.
• Adjusted EBIT Margin: 10.5% compared to 14.5% in 2023.
• Driver: Lower shipment volumes and unfavorable mix, partially offset by improved purchasing costs.

Construction Performance (2024 vs 2023)

• Net Sales: Decreased 22.4% to $3,053 million.
• Adjusted EBIT: $169 million, down $69 million from the prior year.
• Adjusted EBIT Margin: 5.5% compared to 6.1% in 2023.
• Driver: Lower volumes across all regions driven by lower market demand.

Financial Services Performance (2024 vs 2023)

• Revenues: Increased 7.8% to $2,774 million.
• Net Income: $379 million, an increase of $8 million.
• Managed Portfolio: $27.8 billion as of December 31, 2024.
• Past Due Receivables (>30 days): 1.9%, up from 1.4% in 2023.

Founders

CNH Industrial N.V. was formed in 2013 through the merger of Fiat Industrial S.p.A. and CNH Global N.V. While not founded by individuals in the traditional startup sense, the company traces its lineage to the strategic consolidation of major industrial assets under the Fiat group umbrella before becoming an independent entity.

Shareholding Pattern

• Major Shareholder: EXOR N.V.
• Voting Interest: As of January 31, 2025, EXOR N.V. held approximately 45.3% of CNH’s voting power.
• Loyalty Voting Program: The company maintains a loyalty voting program where eligible long-term shareholders receive two votes for each common share held continuously for three years.
• Shares Outstanding: 1,248,023,791 common shares as of January 31, 2025.

Parent

CNH Industrial N.V. does not have a formal “parent” company in terms of majority ownership (>50%), but EXOR N.V. is the largest shareholder with significant influence over corporate decisions, holding approximately 45.3% of the voting power.

Investments and Capital Expenditure Plans

• Total Capital Expenditures (2024): $536 million.
• Agriculture Capex: $321 million.
• Construction Capex: $62 million.
• Strategic Focus: Investments are directed toward introducing new products, enhancing manufacturing efficiency, increasing capacity, and maintenance.
• R&D Spending: $924 million in 2024, representing 5.9% of Industrial Activities net sales. Priorities include precision technology, automation, autonomy, and electrification.

Future Strategy

CNH has outlined a strategic plan focused on profitable long-term growth.

• Primary Focus: Establish Agriculture as the primary focus while redesigning Construction as a distinct division with operational autonomy.
• Technology: Continue investing in integrated solutions including digital platforms, connectivity, and autonomy. This includes leveraging the acquisitions of Raven and Hemisphere.
• Cost Optimization: Implementation of restructuring programs to optimize the cost structure, having incurred $118 million in restructuring expenses in 2024.
• Sustainability: Developing alternative propulsion solutions, such as methane-powered tractors and electric compact construction equipment.

Competitive Landscape

CNH operates in a highly competitive global market.

Agriculture Competitors

• Deere & Company
• AGCO Corporation
• Claas Group
• Kubota Tractor Corporation
• Argo Tractors S.p.A.
• Same Deutz Fahr Group
• Mahindra

Construction Competitors

• Caterpillar Inc.
• Komatsu Ltd.
• J C Bamford Excavators Ltd. (JCB)
• Hitachi Construction Machinery Co, Ltd.
• Volvo Group
• Liebherr Group
• Develon
• Bobcat
• SANY Heavy Industry Co., Ltd.

Key Strengths

• Global Reach: Commercial presence in 167 countries with a diversified manufacturing footprint.
• Brand Portfolio: Strong global brands (Case IH, New Holland) and specialized regional brands (STEYR).
• Technology Leadership: Ownership of core precision technologies through Raven and Hemisphere, holding approximately 11,000 patents.
• Captive Finance: A robust Financial Services segment supporting sales with a managed portfolio of $27.8 billion.
• Market Position: Leading positions in tractors and combines in various regions, including leadership in methane-powered agricultural solutions.

Key Challenges and Risks

• Cyclicality: The agricultural industry is highly cyclical, influenced by commodity prices, farm income, and weather conditions.
• Economic Conditions: High interest rates and inflation impact customer purchasing power and dealer inventory costs.
• Dealer Inventory: Risks associated with dealer inventory management and destocking, which negatively impacted 2024 sales.
• Supply Chain: Dependence on single-source suppliers for certain components and potential disruptions in raw material availability.
• Regulatory Compliance: Stringent and evolving engine emission standards and environmental regulations globally.
• Cybersecurity: Risks related to information technology systems and the security of connected products.

Conclusion and Strategic Outlook

CNH Industrial N.V. navigated a difficult fiscal year in 2024, characterized by a significant contraction in global demand for agricultural and construction equipment. Despite a 20% decline in consolidated revenues, the company maintained profitability and continued its strategic pivot toward technology-driven growth. With a clear focus on precision agriculture, autonomy, and alternative propulsion, CNH is positioning itself to lead the industry’s transformation.

The company’s robust liquidity position, with available liquidity of $9,465 million as of year-end 2024, provides resilience against ongoing market volatility. Moving forward, CNH intends to leverage its streamlined leadership structure and distinct operational focus for Agriculture and Construction to deliver customer-centric solutions and drive long-term shareholder value.

Official Site: https://www.cnh.com/

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FAQ Section

1. What are the primary business segments of CNH Industrial N.V.? CNH Industrial operates through three main segments: Agriculture (farm machinery), Construction (heavy and light construction equipment), and Financial Services (financing for dealers and customers).

2. What was CNH Industrial’s total revenue in 2024? For the fiscal year ended December 31, 2024, CNH Industrial reported consolidated revenues of $19,836 million.

3. Which brands does CNH Industrial own? CNH’s global brands include Case IH, New Holland, CASE Construction Equipment, and New Holland Construction. Regional and technology brands include STEYR, Raven, Hemisphere, and Eurocomach.

4. Where is CNH Industrial headquartered? The company’s principal executive offices are located in Basildon, Essex, United Kingdom.

5. How many manufacturing facilities does CNH Industrial operate? As of December 31, 2024, CNH Industrial owned or leased 40 manufacturing facilities globally.

6. Who is the CEO of CNH Industrial? Gerrit Marx serves as the Chief Executive Officer of CNH Industrial N.V. as of 2024.

7. What is CNH Industrial’s relationship with Exor N.V.? Exor N.V. is the largest shareholder of CNH Industrial, holding approximately 45.3% of the voting power as of January 31, 2025.

8. Does CNH Industrial produce electric vehicles? Yes, the Construction segment began production and distribution of full-electric compact construction equipment, including electric mini excavators and small articulated loaders, in 2023.

Content is based on publicly available corporate filings, regulatory disclosures, annual reports, 10-K filings, Investor Relations materials, and direct mail communication with the company.