From The Motley Fool · Motley Fool Transcribing · · 2m
CNH Industrial Q3 2026 Earnings Report
CNH Industrial sells 70% of construction business for $700 million to focus on agriculture.
In brief
CNH Industrial sells 70% of construction business for $700 million to focus on agriculture. CNH Industrial reported a 1% revenue decline in Q3 2026 but raised full-year EPS guidance after selling 70% of construction business for $700 million. Originally reported by The Motley Fool.
Q3 2026 Results
Consolidated revenue fell 1% to $4.4 billion, with agriculture sales down 2%.
Agriculture Segment
Agriculture sales dropped 2% due to lower volumes in South America and EMEA, offset by growth in Asia Pacific and North America.
Construction Segment
Construction sales rose 5% driven by higher North American volumes and favorable pricing.
Tariff Refunds
Company received $71 million in IEEPA tariff refunds, partially offset by reinvestments.
Construction JV
CNH will sell 70% of construction business to Kobelco for $700 million, valuing it at $1 billion enterprise value.
JV Structure
CNH retains 30% equity in construction joint venture for at least three years with a put-call mechanism for full ownership transfer.
Financial Impact
Construction segment EBIT margin improved to 8.4% from 1.9% due to tariff refunds and cost reductions.
Agriculture Margin
Agriculture adjusted EBIT margin rose to 6.0% from 4.6% with tariff refunds and operational improvements.
Share Repurchases
Company repurchased $24 million worth of shares at $10.53 per share in Q3.
2026 Guidance
Full-year adjusted diluted EPS guidance raised to $0.44 to $0.48 from $0.41 to $0.46.
Tariff Impact
Full-year agriculture tariff margin impact estimated at 185 basis points, construction at 470 basis points.
Model Year 2027
North American model year 2027 pricing increases expected at 3% to 3.5% list price.
Dealer Inventory
Agriculture dealer inventory decreased by $100 million sequentially as part of inventory discipline strategy.
Financial Services
Financial services reported a net loss of $77 million due to deferred tax assets in Brazil.
2027 Outlook
2026 likely represents cycle trough for North American agriculture market with model year 2027 order intake meeting expectations.
JV Closure
Construction joint venture transaction expected to close by end of 2027 and be accretive to margins.
The short version
CNH Industrial reported a 1% revenue decline in Q3 2026 but raised full-year EPS guidance after selling 70% of construction business for $700 million.
