Shares of the company were down more than four per cent in premarket trading.

The Basildon, U.K.-based company said it expects retail demand in 2026 to fall about five per cent from 2025 levels and plans to keep production subdued as it works with dealers to bring down excess inventory across its network.

Farm equipment makers have scaled back factory output amid persistently weak demand for new machinery, as softer crop prices and rising costs prompt farmers to delay large purchases. That slowdown has left dealers carrying elevated stock, resulting in a more cautious approach to restocking.

CNH expects full-year adjusted profit to be between $0.35 and $0.45 per share (C$0.48 to C$0.61) , below analysts’ estimates of $0.54 per share, according to data compiled by LSEG.

Farmers in the U.S. are facing another season of low prices, high costs and difficult decisions about how, or whether, to keep operating, as abundant grain supplies weigh on markets.

The U.S. Department of Agriculture earlier this month forecast net farm income, a broad measure of profitability in the agricultural economy, to fall 0.7 per cent to $153.4 billion (C$209.5 billion) in 2026 from a year ago.

“Agricultural equipment industry demand is expected to resume growth in 2027,” CNH said.

The company, which makes Case IH and New Holland tractors, reported fourth-quarter revenue of $5.16 billion (C$7.05 billion), beating analysts’ estimates of $4.61 billion.

On an adjusted basis, it reported a profit of 19 cents per share for the quarter ended December 31, compared with estimates of 10 cents per share.

— Reporting by Abhinav Parmar in Bengaluru

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The Basildon, UK-based company has been producing tractors and combines below retail demand to reduce excess dealer inventories, as it manages through a cyclical period of lower sales – a strategy also adopted by peers Deere, AGCO and Caterpillar.

CNH expects 2025 sales to drop below last year’s levels and warns that, combined with reduced production, this will likely put further pressure on its margins. However, its efforts to reduce costs will partially mitigate the erosion.

Demand for new equipment has taken a hit from a prolonged weakness in farmer income and weak commodity prices, prompting manufacturers to scale back production as farmers postpone or reassess major purchase decisions.

Shares of the company, famous for its Case IH and New Holland brands, rose 1.6 per cent in pre-market trading. They have risen more than 14 per cent since the start of the year.

CNH reported an adjusted profit of 17 cents per share for the quarter ended June 30, above analysts’ expectations of 14 cents per share, according to data complied by LSEG.

Its total costs and expenses in the reported quarter dropped to $4.43 billion (C$6.10 billion), from $5.03 billion last year.

Quarterly revenue fell 14 per cent to $4.71 billion (C$6.49 billion), but was above analysts’ estimates of $4.17 billion.

The company reaffirmed its full-year outlook, but cautioned that ongoing uncertainty surrounding U.S. trade policy, potential responses from global trading partners, and their broader impacts could influence its projections.

— Reporting by Abhinav Parmar in Bengaluru

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Farm equipment demand has been subdued as falling farm incomes globally forced farmers to rethink their big-ticket purchases.

Trump’s trade policies last month further stressed the supply chain, with demand also under more pressure due to fears of a global recession.

The company said that it forecasts 2025 global industry retail sales to fall year-over-year in both the agriculture and construction equipment markets. It also sees a negative impact on segment margins, resulting from lower production and sales during the year.

CNH Industrial now expects its 2025 adjusted profit to be in the range of 50 cents to 70 cents per share, compared with its earlier forecast range of 65 cents to 75 cents per share.

Analysts, on average, expect the company to report an annual profit of 68 cents per share, according to data compiled by LSEG.

Falling agriculture demand across South America and Europe also contributed to the profit and revenue fall in the quarter.

On an adjusted basis, profit fell 66.7 per cent to 10 cents per share, for the quarter ended March 31, in line with analysts’ estimates.

The company, which is famous for its Chase IH and New Holland brand of tractors, reported a 20.6 per cent slump in quarterly net sales of $3.83 billion (C$5.29 billion), compared with analysts’ estimates of $3.51 billion (C$4.85 billion).

The results come days after the tractor maker named James Nickolas as its new finance chief.

— Reporting by Anandita Mehrotra and Aatreyee Dasgupta in Bengaluru

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The company trimmed its annual adjusted profit view to the range of $1.05 to $1.15 per share (C$1.46 to $1.60) from $1.30 to $1.40 (C$1.81 to $1.95) expected earlier, lowering the forecast for the third consecutive quarter.

CNH expects annual sales at its agriculture segment to be down between 22 per cent and 23 per cent from a year earlier, compared with a prior view of down 15 per cent to 20 per cent.

A record crop harvest has kept grain inventories elevated and pressured crop prices, which, coupled with higher input costs, has prompted farmers to delay their equipment purchasing decisions.

This delay, in turn, has forced dealers to moderate their product restocking, causing equipment makers such as CNH Industrial to reduce production.

However, the Basildon, UK-based company’s quarterly revenue, though down 22.3 per cent at $4.65 billion (C$6.46 billion) from a year ago, beat analysts’ average estimate of $4.58 billion (C$6.37 billion), according to data compiled by LSEG.

Persisting weakness in farm incomes around the world has dented the demand for new equipment in most global markets.

Sales for CNH’s tractors declined 12 per cent in South America during the third quarter, while falling 20 per cent in Europe, Middle East and Africa. Its combine sales fell 32 per cent and 50 per cent in the two regions, respectively.

CNH, which is known for its New Holland brand of farm equipment, posted an adjusted third-quarter profit of 24 cents per share that fell short of the estimates of 27 cents.

Peer AGCO on Tuesday also provided its full-year profit and revenue forecasts below estimates, hurt by weak demand across regions as lower farm income persists for crop producers.

— Reporting by Abhinav Parmar in Bengaluru

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A sharp drop in crop prices coupled with rising production costs have lowered farm incomes around the world, forcing farmers to rethink purchasing heavy equipment, thus setting a gloomy demand environment for agriculture equipment makers.

CNH now expects its full-year adjusted profit to be in a range of $1.30 to $1.40 per share, compared with $1.45 to $1.55 per share previously.

The Basildon, UK-based company now expects its agriculture segment net sales to be down between 15 per cent and 20 per cent year-over-year, compared with a fall of 11 per cent to 15 per cent expected previously.

“Our view is that the current down-cycle is likely to extend into 2025 given the current commodities backdrop and the impact on farmer economics globally,” Oppenheimer analyst Kristen Owen said.

U.S. farmer income, a broad measure for farm profitability, is expected to fall about 25 per cent to $116 billion, from $156 billion in 2023.

Still, robust pricing and job cut initiatives undertaken by the company have helped it top revenue estimates in the quarter even as demand remains subdued in an industry-wide downturn.

The company reported a 16 per cent fall in second-quarter revenue to $5.49 billion, but beat analysts’ estimates of $5.32 billion, according to LSEG data.

Shares of the company were up 2.1 per cent in morning trade.

On an adjusted basis, the company earned 38 cents per share, slightly above analysts’ estimates of 37 cents.

“We will continue to manage the business prudently through 2024 while positioning ourselves for 2025,” CEO Gerrit Marx, who took over CNH’s helm on July 1, said in a statement.

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The Italian-American group, whose shares are currently traded both on the NYSE and in Milan, earlier this year announced a plan to abandon its Italian listing.

CNH said in a statement on Tuesday that the Milan Stock Exchange had approved an application it filed to delist its ordinary shares from Milan bourse and had set the Jan. 2 date for when a NYSE single listing will be effective.

Its shares will be tradable in Milan until Dec. 29.

CNH also on Tuesday lowered its 2023 revenue forecast, citing a softening for its farm machinery, predominantly in South America, sending its shares plummeting.

As part of its New York single-listing plan, CNH announced a new share buyback program worth up to US$1 billion.

“The program is intended to optimize the capital structure of the company and to assist with offsetting any potential volatility arising from the delisting of its shares on Euronext Milan,” CNH said in a statement.

Since it spun off its truck and bus unit in January 2022, now separately listed as Iveco Group, the majority of CNH stock trading has progressively shifted to NYSE, the company said.

“Concentrating trading in one market should allow for increased liquidity and investor focus, while further simplifying the company profile and compliance requirements,” it said.

The new buyback program will run between Nov. 8 and March 1 and will be funded through the company’s liquidity.

It will consist of two components: the repurchase of shares worth up to 400 million euros (C$588 million) on Euronext Milan and on multilateral trading facilities between Nov. 8 and Dec. 29 and the repurchase of shares for the remaining amount to be executed on NYSE between Nov. 8 and Match 1.

Goldman Sachs is acting as financial advisor to CNH, while BNP Paribas is acting as co-advisor and buyback agent for the group in Europe.

— Reporting for Reuters by Giulio Piovaccari.

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CNH’s New Holland Agriculture arm said Monday its T4 Electric Power model, “the first all-electric utility tractor with autonomous features,” will be launched this week at the Farm Progress Show, and commercially available in North America with “select dealers” early in 2024.

The Decatur, Illinois farm show will also host the unveiling of the Farmall 75C Electric, a utility model that CNH’s Case IH arm billed in a separate release Monday as its “smartest” electric tractor.

New Holland said the T4 “opens a new class in the market, the Utility Electric,” and will be an “ideal solution for lower-horsepower field operations” such as mixed farms, hay and forage, dairy and other livestock and greenhouse, vegetable and orchard crops.

The T4 Electric Power battery system and fully electric drivetrain provide a 110-kilowatt-hour maximum energy storage capacity in a 400-volt circuit, for 74 horsepower (55 kilowatts) rated power and 65 hp (48 kW) PTO power, CNH said.

Given the usual light-, medium- and heavy-duty applications of a utility tractor, New Holland estimates the T4 can provide four hours’ average runtime, or up to eight working hours in strictly “low-energy demand” applications.

The T4 unit also includes four-wheel drive, a 12×12 transmission, clutch-less electronic power shuttle reverser and “all the regular power outputs of a traditional diesel utility,” CNH said, such as rear electro-hydraulic PTO, drawbar, multiple rear remotes, mid-mount valves and a New Holland 725LU mechanical self-leveling front loader with third function and 84-inch bucket.

The electrified drivetrain allows for high torque and fast response, which with the electronic power shuttle transmission, means “even an inexperienced operator can run the implements during the applications without the need for precise gear selection and throttle control,” CNH said. Experienced operators will have “infinite” speed adjustments by controlling motor rpm.

The T4 can be recharged in either alternate current (AC) or direct current (DC), and would take one hour to charge to 100 per cent power using a “commercially available” DC fast-charging system, CNH said.

The T4’s “Smart Roof” houses the cameras and sensors supporting its “driver-assisted” features such as Follow Me Mode, the Invisible Bucket and 360 Degree Awareness, along with “fully digital and connected” functions such as Over the Air Updates, Live View and Map Maker — all of which New Holland said will make this tractor “the first of its kind in the world.”

Case IH, meanwhile, said it will mark the Farmall brand’s “100th year” with a sneak peek at the Farmall 75C Electric at the Farm Progress Show.

The 75C’s exact specs weren’t available in Monday’s release, in which Case IH said the unit will be available for “limited orders” in the first quarter of 2024 and released “in specific markets” during the year.

Like the T4, the Farmall 75C offers “diesel-like performance with an average four-hour run time and fast recharging, plus lower operating costs,” Case IH said, allowing “maximum ” versatility” for jobs such as maintaining vineyards or managing a small herd. — Glacier FarmMedia Network

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Case IH and New Holland’s parent firm CNH and Honey Bee Manufacturing say they’ve set up a partnership agreement for compatibility between those two windrower lines and Honey Bee’s WSC Swather series draper heads.

The draper’s components and wide swathing widths, along with the “speed and precision” of the Speedrower Plus, make for “a fast and efficient harvesting solution,” New Holland and Honey Bee said Tuesday in a release.

The combination of a WSC30 Swather draper head with the Speedrower 260 Plus was first put on display at an Ag PhD Field Day event at Baltic, S.D. on July 25, while the Honey Bee draper heads for Case IH windrowers were launched the previous week at Ag in Motion at Langham, Sask.

“Operations that swath grains have been asking for a draper head solution to work with our Speedrower Plus series self-propelled windrowers and we listened,” Josh Harkenrider, commercial hay and forage product marketing manager for New Holland Agriculture in North America, said in Tuesday’s release.

“We’re confident this partnership will provide a robust solution for customers as it combines the experience from Honey Bee with the productivity, precision and performance of our windrowers.”

New Holland and Honey Bee said the combination will be available in two draper head models, the 30-foot WSC30 and the 36-foot WSC36. Both will include the SCH Easy Cut cutting system with spring steel guards including cutting edges on the top and bottom, plus alternating, bolted, heat-treated sections, which the companies said will “eliminate” the need for hold-downs.

“When you combine the wide cutting widths and the array of proven components, along with the hydraulic capacity, advanced SensiDrive drive-by-wire controls and easy-to-use precision solutions on our Speedrower Plus Series, customers can expect a faster and more efficient harvest for seasons to come,” Harkenrider said.

The WSC30 and WSC36 are also the models compatible with Case IH’s WD5 units. Case IH said the Honey Bee draper heads with adjustable castering gauge wheels will “eliminate gouging and crop scuffing.”

The Case IH/Honey Bee collaboration “unlocks the draper potential of the WD5 series windrowers for small grain and canola producers,” Brian Spencer, Case IH marketing manager for hay and forage products, said in a separate release last month.

“Every minute a machine sits idle cuts into producers’ bottom lines,” he said. “The Honey Bee draper heads include heavy-duty rollers for a longer service life. They can also quickly replace reel fingers with only pliers and a wrench to get the equipment back in the field faster.”

Case IH said the draper heads’ integrated transport function will also allow operators to save time moving from field to field with “quick and convenient field-to-road conversion.”

Jamie Pegg, general manager for Honey Bee, said in Tuesday’s release that the partnership agreement “puts our proven platform into the hands of more farmers through CNH Industrial’s robust dealer network.”

Honey Bee was founded in 1979 by brothers Greg and Glenn Honey and their wives at Bracken, Sask., about 155 km south of Swift Current. The company expanded into harvest headers in the 1980s and set up shop at nearby Frontier in 1987.

The company today operates on over 100,000 square feet of production and warehousing space, selling into both the domestic and export markets. Its other product lines include the AirFlex, Grain Belt and Rice Belt header systems and the Rod Master rod weeder. — Glacier FarmMedia Network

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The company increased its revenue outlook for industrial activities to between eight and 11 per cent this year, versus a previous forecast of between six and 10 per cent.

Farmers’ solid income cushioned profits even as commodity prices came down from their peaks a year ago. Growers were able to cash in on still-elevated wheat and soybean prices, which fueled purchases for new and used machinery, CNH CEO Scott Wine said.

CNH’s farm equipment brands include Case IH, New Holland, Steyr and Flexi-Coil.

“The high-horsepower and cash crop markets continue to be very strong,” Wine said in an interview, adding that the company is planning to accelerate production of large ag equipment to catch up on volume output that was reduced during an eight-month long United Auto Workers strike.

Like competitors Deere and Caterpillar, CNH’s profit margins were propped up by price increases across its machinery businesses to offset inflated input costs and a choppy supply chain.

Analysts believe the manufacturer’s double-digit price hikes that contributed to a 16 per cent increase in net sales on the year for its agriculture division will sustain the company’s margin growth in the coming quarters, said Eric Greaser, vice-president at Moody’s.

Industrial activity revenues increased 21 per cent in 2022.

CNH’s first-quarter adjusted earnings before interest and tax (EBIT) for industrial activities rose 29 per cent to US$555 million, just ahead of analysts’ consensus forecast in a Reuters poll. Revenue was in line with expectations at US$4.78 billion.

Company executives said they were confident the company would complete its delisting from the Milan bourse by the end of the year and keep its shares trading only in New York.

— Reporting for Reuters by Giulio Piovaccari in Milan and Bianca Flowers in Chicago.

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The bill, which requires manufacturers such as Deere and Co. to provide manuals for diagnostic software and other aids, garnered bipartisan support as farmers grew increasingly frustrated with costly repairs and inflated input prices denting their profits.

With a Case IH red tractor displayed outside the state Capitol in Denver, Governor Jared Polis, a Democrat, signed the Consumer Right to Repair Agriculture Equipment Act.

“I am proud to sign this important bipartisan legislation that saves hardworking farmers and ranchers time and money on repairs, and supports Colorado’s thriving agriculture industry,” he said in an emailed statement. “This is a common-sense bipartisan bill to help people avoid unnecessary delays from equipment repairs.”

The legislation passed on a 46-14 vote in Colorado’s Senate earlier this month.

Once the law goes into effect on Jan. 1, farm machinery manufacturers such as Deere and rival CNH Industrial, which owns the Case IH and New Holland brands, will have to provide farmers with diagnostic tools, software and documents. Independent technicians will also be able to access similar resources.

Deere has said it believes the legislation is unnecessary and will carry unintended consequences. CNH did not respond to request for comment.

Right-to-repair legislation is gaining momentum across the country as lawmakers in 16 states have introduced bills, according to a report by the Public Interest Research Group, an advocacy organization.

Colorado farmer Daniel Waldvogle, who was present for the bill’s signing, hopes that right to repair will be a key issue for the next U.S. Farm Bill under discussion in Washington.

“Creating more fair market access through right to repair is one of the items that we hope will be included,” he said.

— Reporting for Reuters by Bianca Flowers in Chicago and Kevin Mohatt in Denver.

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