CNH reported mixed third-quarter 2026 results, with consolidated revenues declining 1% year-on-year to $4.35 billion and Agriculture net sales falling 2% to $2.91 billion. Despite weaker sales, the Agriculture segment increased adjusted EBIT by 26% to $173 million, lifting its operating margin from 4.6% to 6.0%. At group level, adjusted net income reached $205 million, compared with $109 million a year earlier, while adjusted earnings per share doubled to $0.16. The figures indicate an improvement in quarterly profitability against a challenging agricultural equipment market.
However, the broader financial picture remains more complex. Agriculture adjusted EBIT for the first nine months reached $370 million, with a 4.2% margin compared with 6.1% in the corresponding period of 2025. Third-quarter results also benefited from $109 million in pre-tax IEEPA tariff refunds, partly offset by additional spending initiatives, making the sustainability of the profitability improvement an important consideration. Meanwhile, agricultural equipment demand remained weak across several major markets, particularly North and South America, with uneven conditions in Europe.
Looking ahead, CNH expects full-year 2026 Agriculture sales to remain approximately flat, with an adjusted EBIT margin of 5.1–5.4%. The company has also raised its adjusted earnings-per-share outlook to $0.44–0.48 and improved its industrial free cash flow expectations. Combined with the recently announced agreement to transfer a majority interest in its Construction Equipment operations to Kobelco, these results highlight a group moving towards greater agricultural specialization while working to strengthen operational efficiency, financial flexibility and long-term competitiveness.
Bottom Line
CNH’s third-quarter performance provides encouraging evidence of improving profitability despite subdued agricultural machinery demand. However, the gap between quarterly and nine-month margins, together with the contribution of tariff-related refunds, suggests that a sustained recovery has yet to be demonstrated. As CNH concentrates its industrial portfolio around agriculture, the durability of margin improvements and the timing of a broader market recovery will become increasingly important indicators of its future performance.
