CNH Industrial N.V. (CNH) Business Profile

What it does

CNH Industrial develops, manufactures and sells agricultural and construction equipment. It also finances equipment purchases and leases for customers and helps dealers finance their inventories. Founded in 2013, the company is headquartered in Amsterdam and has its principal office in Basildon, United Kingdom. Derek Neilson is listed as chief executive.

Its Agriculture business makes tractors, harvesters, planting and seeding equipment, sprayers, and hay and forage machines. Customers include farmers growing cash crops, livestock producers and operators of vineyards and orchards. Case IH and New Holland are its global agricultural brands, while STEYR focuses primarily on European markets and Raven provides agricultural technology.

The Construction business sells machines used to move earth, prepare sites and handle materials. Its products include excavators, wheel loaders, dozers, backhoe loaders and compact track loaders. They are sold primarily under the CASE Construction Equipment and New Holland Construction brands to customers including contractors, rental companies and municipalities.

CNH also sells parts, maintenance and repair services, and precision technology that can be installed on existing machines. Its Financial Services business, known commercially as CNH Capital, provides loans and leases to equipment buyers and wholesale financing to dealers. CNH generally reaches customers through independent dealers, which handle retail sales and after-sales support.

How it makes money

CNH operates through Agriculture, Construction and Financial Services. The equipment businesses develop and manufacture machines and sell most products and parts to dealers and distributors at wholesale prices. Dealers set the final retail price, which can vary with local demand, machine features, financing availability and other market conditions. CNH also offers promotions that may include price incentives or preferential financing.

Agriculture sells machinery for activities from planting through harvesting, as well as precision agriculture products. Guidance, automated steering and application controls can be supplied with equipment or as aftermarket solutions. Construction sells heavy equipment such as excavators and dozers, as well as smaller machines such as skid steer loaders and compact excavators. Some agricultural dealers also sell construction products.

Equipment can generate sales after the initial purchase. CNH supplies replacement parts for current and older products and offers maintenance and repair contracts and warranty extensions. Many machines can have economically productive lives of more than 20 years when properly maintained, giving CNH and its dealers opportunities for parts and service revenue. Connected machines also allow CNH and dealers to use service alerts and predictive maintenance.

Financial Services earns income from financing equipment buyers and dealers. Its retail products include loans, finance leases and operating leases; dealer financing includes funding for equipment inventory, used machines, parts and working capital. The business also finances some third-party equipment and provides factoring services to CNH subsidiaries.

In Q2 2026, consolidated revenues were $4.8 billion. CNH also reported Agriculture net sales of about $3.3 billion, Construction net sales of $866 million and Financial Services net income of $71 million for the quarter.

Customers and how it sells

CNH serves agricultural customers ranging from large cash-crop farms to livestock operations and specialty growers. Construction customers include contractors, residential builders, utilities, municipalities, landscapers and equipment-rental companies. Rental fleet owners can buy machines through dealers, while some dealers also operate their own rental businesses.

CNH predominantly distributes equipment through dealers that are almost all independently owned and operated. The Agriculture network includes more than 2,300 dealer owners operating over 5,000 locations/points of sale. Construction products are sold through approximately 400 full-line dealers and distributors with approximately 1,700 points of sale. Dealers sell to end users and provide after-sales service and support.

The company has subsidiaries in 32 countries and a commercial presence in approximately 166 countries. It generally distributes directly through independent dealers in markets including the United States, Canada, most of Western Europe, Brazil, India and Australia. Elsewhere, independent distributors or importers may sit between CNH and the customer; joint ventures also handle distribution in selected markets.

CNH’s financing arrangements vary by region. It manages retail customer and dealer financing through wholly owned subsidiaries in North America and South America. In Europe, retail financing is primarily provided through a majority-owned banking partner entity, while dealer financing receivables are managed and serviced by companies within Iveco Group’s Financial Services segment.

Suppliers and costs

CNH buys materials, parts, components and services from third-party suppliers. Certain components come from a single supplier and cannot quickly be sourced elsewhere. An unexpected interruption can delay production or increase its cost. CNH uses measures including multiple sourcing, inventory management, long-term supply agreements and alternative logistics to address potential disruptions.

Construction products often share components across brands to obtain economies of scale in manufacturing, purchasing and development. The business differentiates the resulting machines through technology, design, serviceability and other features. CNH also develops some technology internally, including positioning and precision agriculture capabilities.

Costs include purchased materials and components, manufacturing labor, logistics, product development and regulatory compliance. CNH describes its business as labor intensive and had 34,197 employees as of December 31, 2025. Equipment emissions standards require capital and research and development spending.

CNH’s Strategic Sourcing Program evaluates existing and potential suppliers with the aim of improving total supply-chain value. In Q2 2026, CNH said its first procurement wave was delivering and its second was in full swing. It also said tariffs remained a margin drag because it had not passed all their impact to customers, while shipping-lane disruptions had increased transportation costs.

Competitive position

Agricultural and construction equipment markets include global full-line manufacturers, product specialists, regional manufacturers and local low-cost producers. Competition depends on equipment performance, reliability, technology, dealer coverage, service, financing and price.

CNH names Deere & Company, AGCO Corporation, Claas Group, Kubota Tractor Corporation, Argo Tractors S.p.A., Same Deutz Fahr Group and Mahindra among its agricultural equipment competitors. In construction, it names Caterpillar Inc., Komatsu Ltd., J C Bamford Excavators Ltd., Hitachi Construction Machinery Co, Ltd., Volvo Group, Liebherr Group, Develon, Bobcat, Kubota Tractor Corporation, SANY Heavy Industry Co., Ltd and Deere & Company. Its financing business also competes with banks and equipment finance and leasing companies.

CNH said in Q2 2026 that it had gained agricultural market share across tractors and combines, with results varying by region. It is also working with dealers to expand their territories and carry both agricultural brands.

Our reading: CNH’s dealer network is a meaningful competitive asset because it provides sales coverage, financing access and service, but independent ownership means CNH depends on dealers to deliver much of the customer experience. Our reading: Precision technology and proprietary parts can support customer relationships over a machine’s life, although rivals also compete on technology, service and price. Our reading: Financing supports equipment sales and dealer inventories, but its advantage is constrained by competition from banks and other lenders.

Growth opportunities

CNH’s growth plans combine new equipment with technology and broader commercial coverage. Its “Iron + Tech” strategy includes expanding its range of harvesters, tractors, crop-protection and production equipment; developing foundational technologies internally; and fitting precision technology to large product lines. Its portfolio includes positioning, connectivity, displays, automation and autonomy.

The company also sells precision products as retrofits through dealers, and Raven products and services to other equipment manufacturers. In construction, CNH produces electric compact machines and plans further battery-powered products for enclosed and municipal job sites where customers require reduced or no tailpipe emissions.

CNH is seeking to expand and consolidate its dealer network. It identified dealers in the United States, Germany and Brazil that were expanding territories or adding a second agricultural brand. It also restarted discussions with potential construction partners about collaboration, with the goal of improving scale, geographic reach and the range of machines supplied to agricultural dealers.

For 2026, CNH forecasts Industrial net sales to be flat to up 2% year-over-year. It expects Agriculture sales to be about flat and Construction sales to rise 5% to 10% year-over-year. CNH’s baseline expectation is for an L-shaped recovery, with 2027 agricultural retail demand broadly flat and replacement demand continuing to carry much of the market.

CNH said dealer inventories were normalizing and equipment fleets were aging, but farm profitability remained under pressure. It expects to increase production as inventories normalize and to align production more closely with retail demand.

Structural risks

• Farm equipment cycles: Farm income, commodity prices, borrowing costs, weather and government subsidies influence equipment demand. CNH said commodity prices remained at or below breakeven for many growers in Q2 2026, while fuel, fertilizer and transportation costs were elevated.
• Construction demand: Sales depend on activity such as infrastructure spending, residential and commercial construction, and rental-fleet purchases. Economic weakness or restricted financing can reduce demand for new equipment.
• Tariffs and trade: CNH faces changing tariffs and trade restrictions. It said Construction was more exposed than Agriculture because it imports more finished equipment and has a higher concentration of sales in North America. It had not passed all tariff impacts to customers.
• Credit exposure: Financial Services lends to equipment buyers and dealers. CNH reported higher delinquency rates in Q2 2026, driven primarily by persistent economic difficulties in South America, and identified Brazil as an ongoing risk area.
• Supply and operations: Some parts are available from only one supplier, and interruptions can delay production or raise costs. CNH shipped machines in Q2 2026 that had been delayed by a supplier quality issue.
• Technology and regulation: Cybersecurity breaches or system disruptions could impair operations and compromise data. CNH also faces evolving emissions, safety, privacy and other regulations that can raise development and compliance costs.

Bottom line

Our reading

Our reading: CNH combines cyclical equipment sales with parts, service and financing that extend its relationship with customers beyond the initial machine purchase. Its dealer network and technology portfolio support that model, but the business remains exposed to farm economics, construction spending and competition. Tariffs, supplier interruptions and credit difficulties can affect results even when equipment volumes improve.