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FINWIRES

Research Alert: Cnh Industrial Q1 Profit Slumps 92% Y/y; Reaffirms 2026 Guidance

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

CNH Industrial's Q1 2026 results reflect agricultural equipment downcycle severity, with revenue flat at $3.83B but net income plunging 92% Y/Y to $10M and diluted EPS falling to $0.01 from $0.10. The Agriculture segment remained under pressure, with adjusted EBIT margin compressing 440 bps to 1.0% despite net sales rising 1% Y/Y to $2.6B, reflecting weak North American demand and higher R&D expenses. Construction performance deteriorated, turning loss-making with a negative 4.9% margin, suggesting company-specific challenges. Management reaffirmed 2026 guidance, expecting Agriculture sales down 5% to flat Y/Y with 4.5%-5.5% margins and Construction sales about flat with 1.0%-2.0% margins. We observe cash flow pressures with free cash flow absorption increasing to $589M, while Financial Services provided relative stability. In our view, the significant operating deleverage highlights the challenging environment, though we believe management's guidance reaffirmation suggests confidence in stabilization efforts.

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