CNH Industrial Q2 2026: Revenue Beats, But Margin Pressure and Brazil Credit Risks Weigh

summarizeSummary

CNH Industrial's Q2 2026 10-Q shows a revenue beat and raised guidance, but net income dropped 35% YoY amid tariff impacts, rising Brazil credit losses, and restructuring charges.

check_boxKey Events · Earnings and Guidance · CNH

• Q2 Revenue Beat, Raised Guidance

  Revenue of $4.8 billion exceeded the $4.38 billion consensus. Full-year adjusted EPS guidance was raised at the lower end, now targeting the higher end of the prior range.

• Net Income Down 35% YoY

  Net income attributable to CNH fell to $138 million from $213 million a year ago, driven by tariff costs, higher SG&A, and restructuring expenses.

• Brazil Credit Losses Surge

  Allowance for credit losses in Brazil increased by $104 million year-over-year to $611 million, reflecting crop price pressures and adverse weather. Delinquencies over 30 days rose to 4.4% of receivables.

• Cash Burn and Liquidity

  Operating cash flow dropped to $180 million from $934 million a year ago. Total available liquidity fell $919 million to $8.9 billion, partly due to lower portfolio receivables.

auto_awesomeAnalysis · CNH · Technology

CNH Industrial posted Q2 revenue of $4.8 billion, beating consensus, and raised the lower end of its full-year EPS guidance. However, net income fell 35% year-over-year as tariffs, higher credit provisions in Brazil, and restructuring costs compressed margins. The 10-Q reveals a $104 million increase in Brazilian retail credit reserves and a 4.4% delinquency rate, signaling growing stress in a key market. While the raised guidance is a positive, the underlying earnings quality is deteriorating, and the balance sheet shows a $710 million cash burn in the first half.