CNH Industrial (CNH) Falls 6.4% After Weak 2025 Outlook Despite Beating Q2 Earnings Expectations

• Earlier this week, CNH Industrial reported second-quarter 2025 earnings that exceeded analyst projections at US$0.17 per share on US$4.71 billion in revenue, even as consolidated revenues dropped 14% and the agriculture segment continued to face significant difficulties.
• The company has forecast lower global retail sales for its agricultural and construction equipment markets in 2025, highlighting growing concerns about industry demand and sector-specific headwinds amid ongoing economic pressures.
• We'll explore how CNH Industrial's outlook for lower equipment sales may reshape its investment narrative and future growth assumptions.

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CNH Industrial Investment Narrative Recap

For those considering CNH Industrial, the case to be a shareholder centers on believing in the firm's ability to transform product offerings through technological advancements and expand outside North America, offsetting cyclical pressures in its core agriculture markets. The latest results highlight a tough operating environment, but even as earnings per share topped forecasts, the biggest near-term catalyst, inventory normalization, remains clouded by weak equipment demand and ongoing destocking. At the same time, a pronounced 14% revenue decline underscores how sector headwinds and market cyclicality remain key risks for the short term.

Of CNH Industrial's recent announcements, the reaffirmation of its full-year 2025 earnings guidance stands out as particularly relevant to this challenging environment. Maintaining its sales and earnings outlook, despite ongoing softness in demand and recent share price pressures, may signal confidence in operational resilience but also puts greater weight on execution and future quarterly performance as a potential catalyst for renewed sentiment.

In contrast, investors should be aware of one key risk lurking beneath recent earnings stability: rising inventories, especially in North America, could...

Read the full narrative on CNH Industrial (it's free!)

CNH Industrial's outlook anticipates $18.7 billion in revenue and $1.6 billion in earnings by 2028. This is based on a 1.2% yearly revenue growth rate and a $777 million increase in earnings from the current $823 million.

Uncover how CNH Industrial's forecasts yield a $14.66 fair value, a 43% upside to its current price.

Exploring Other Perspectives

Fair value estimates from six Simply Wall St Community members range widely from US$4.92 to US$19.54 per share. With weak equipment demand and inventory buildup risking additional pricing pressure, see how your outlook compares.

Explore 6 other fair value estimates on CNH Industrial - why the stock might be worth less than half the current price!

Build Your Own CNH Industrial Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your CNH Industrial research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.
• Our free CNH Industrial research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate CNH Industrial's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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