CNH Industrial N.V.

Previous wording

•Europe, Middle East and Africa: member countries of the European Union, European Free Trade Association, the United Kingdom, Ukraine and Balkans, Russia, Turkey, Uzbekistan, Pakistan, the African continent, and the Middle East;

Current wording

•Europe, Middle East and Africa: member countries of the European Union, European Free Trade Association, the United Kingdom, Ukraine and Balkans, Russia, Türkiye, Uzbekistan, Pakistan, the African continent, and the Middle East;

Previous wording

CNH monitors its operations through the use of non-GAAP financial measures. CNH’s management believes that these non-GAAP financial measures provide useful and relevant information regarding its operating results and enhance the readers’ ability to assess CNH’s financial performance and financial position. Management uses these non-GAAP measures to identify operational trends, as well as to make decisions regarding future spending, resource allocations and other operational decisions as they provide additional transparency with respect to our core operations. These non-GAAP financial measures have no standardized meaning under U.S. GAAP and are unlikely to be comparable to other similarly titled measures used by other companies and are not intended to be substitutes for measures of financial performance and financial position as prepared in accordance with U.S. GAAP.

Current wording

CNH monitors its operations through the use of several non-GAAP financial measures. CNH’s management believes that these non-GAAP financial measures provide useful and relevant information regarding its operating results and enhance the readers’ ability to assess CNH’s financial performance and financial position. Management uses these non-GAAP measures to identify operational trends, as well as to make decisions regarding future spending, resource allocations and other operational decisions as they provide additional transparency with respect to our core operations. These non-GAAP financial measures have no standardized meaning under U.S. GAAP and are unlikely to be comparable to other similarly titled measures used by other companies and are not intended to be substitutes for measures of financial performance and financial position as prepared in accordance with U.S. GAAP.

Previous wording

We discuss the fluctuations in revenues on a constant currency basis by applying the prior-year average exchange rates to current year’s revenue expressed in local currency in order to eliminate the impact of foreign exchange (“FX”) rate fluctuations.

Current wording

CNH discusses the fluctuations in revenues on a constant currency basis by applying the prior year average exchange rates to current year’s revenues expressed in local currency in order to eliminate the impact of foreign exchange rate fluctuations from year to year.

Previous wording

The operations and key financial measures and financial analysis differ significantly for manufacturing and distribution businesses and financial services businesses; therefore, management believes that certain supplemental disclosures are important in understanding our consolidated operations and financial results. For further information, see “Supplemental Information” within this section, where we present supplemental consolidating data split by Industrial Activities and Financial Services. Transactions between Industrial Activities and Financial Services have been eliminated to arrive at the consolidated data.

Current wording

The operations, key financial measures and financial analysis differ significantly for manufacturing and distribution businesses (Industrial Activities) and financial businesses (Financial Services); therefore, management believes that certain supplemental disclosures are important in understanding our consolidated operations and financial results. For further information, see “Supplemental Information” within this section, where we present supplemental consolidating data split by Industrial Activities and Financial Services. Transactions between Industrial Activities and Financial Services have been eliminated to arrive at the consolidated data.

Previous wording

We recorded revenues of $4,654 million for the three months ended September 30, 2024, a decline of 22.3% (down 20.9% on a constant currency basis) compared to the three months ended September 30, 2023. Net sales were $3,997 million in the three months ended September 30, 2024, a decrease of 25.0% (down 24.0% on a constant currency basis) compared to the three months ended September 30, 2023. This decline was primarily due to lower shipment volumes on decreased industry demand and reduced dealer inventory requirements.

Current wording

We recorded revenues of $3,828 million for the three months ended March 31, 2025, a decline of 20.5% (down 17.4% on a constant currency basis) compared to the three months ended March 31, 2024. Net sales were $3,172 million in the three months ended March 31, 2025, a decrease of 23.2% (down 20.5% on a constant currency basis) compared to the three months ended March 31, 2024. This decline was mainly due to lower shipment volumes on decreased industry demand and dealer destocking.

Previous wording

Cost of goods sold was $3,130 million for the three months ended September 30, 2024 compared with $4,059 million for the three months ended September 30, 2023. As a percentage of net sales of Industrial Activities, cost of goods sold was 78.3% in the three months ended September 30, 2024 (76.1% for the three months ended September 30, 2023), which was impacted by lower production volume and unfavorable mix, partially offset by improved purchasing and manufacturing costs.

Current wording

Cost of goods sold was $2,569 million for the three months ended March 31, 2025 compared with $3,195 million for the three months ended March 31, 2024. As a percentage of net sales of Industrial Activities, cost of goods sold was 81.0% in the three months ended March 31, 2025 (77.3% for the three months ended March 31, 2024), which was impacted by lower production volumes, partially offset by improved purchasing and manufacturing costs.

Previous wording

Selling, general and administrative expenses were $426 million for the three months ended September 30, 2024 (9.2% of total revenues), down $36 million compared to the three months ended September 30, 2023 (7.7% of total revenues). Total expenses were lower primarily due to a decrease in labor costs, driven by the Company's restructuring program, partially offset by higher credit risk provisions in the Financial Services segment.

Current wording

Selling, general and administrative expenses were $386 million for the three months ended March 31, 2025 (10.1% of total revenues), down $25 million compared to the three months ended March 31, 2024 (8.5% of total revenues). Total expenses were lower primarily due to lower labor costs, driven by the Company's restructuring program and lower variable compensation, partially offset by higher credit risk provisions in the Financial Services segment.

Previous wording

Interest expense was $378 million for the three months ended September 30, 2024 compared to $346 million for the three months ended September 30, 2023. The interest expense attributable to Industrial Activities for the three months ended September 30, 2024, net of interest income and eliminations, was $36 million, compared to $10 million in the three months ended September 30, 2023.

Current wording

Interest expense was $362 million for the three months ended March 31, 2025 compared to $394 million for the three months ended March 31, 2024. The interest expense attributable to Industrial Activities for the three months ended March 31, 2025, net of interest income and eliminations, was $25 million, compared to $32 million in the three months ended March 31, 2024.

Previous wording

Income tax expense for the three months ended September 30, 2024 was $75 million compared to $171 million for the three months ended September 30, 2023. The effective tax rate for the three months ended September 30, 2024 and 2023 was 20.8% and 25.8%, respectively. The reduction in the 2024 effective tax rate was due to the impact of the company's income mix, including the existence of credits and other permanent benefits, as well as by discrete items, including the impact of highly-inflationary accounting and tax-related inflation adjustments in Argentina and the one-time impact of a patent box tax deduction in the UK.

Current wording

Income tax expense for the three months ended March 31, 2025 was $47 million compared to $77 million for the three months ended March 31, 2024. The effective tax rate for the three months ended March 31, 2025 and 2024 was 29.0% and 19.2%, respectively. The increase in the 2025 effective tax rate was due to the impact of the Company's income mix anda smaller rate reduction from the discrete impact on period earnings from Argentina's highly-inflationary economy.

Previous wording

Net income was $310 million for the three months ended September 30, 2024, compared to net income of $540 million for the three months ended September 30, 2023. Net income for the three months ended September 30, 2024 included a gain of $14 million for a fair value adjustment related to an investment in unconsolidated subsidiary and a pre-tax gain of $6 million ($5 million after-tax) as a result of the amortization over 4 years of the $101 million positive impact from the 2021 U.S. healthcare plan modification, partially offset by restructuring expenses of $12 million.

Current wording

Net income was $132 million for the three months ended March 31, 2025, compared to net income of $369 million for the three months ended March 31, 2024. Net income for the three months ended March 31, 2025 included restructuring expenses of $6 million, and a pre-tax gain of $6 million ($5 million after-tax) as a result of the amortization over four years of the $101 million positive impact from the 2021 U.S. healthcare plan modification.

Previous wording

Net income was $1,083 million for the nine months ended September 30, 2024, compared to net income of $1,704 million for the nine months ended September 30, 2023. Net income for the nine months ended September 30, 2024 included restructuring expenses of $94 million and a loss of$15 million on the sale of certain non-core product lines, partially offset by a pre-tax gain of $18 million ($14 million after-tax) as a result of the amortization over four years of the $101 million positive impact from the 2021 U.S. healthcare plan modification and a gain of $14 million for a fair value adjustment related to an investment in unconsolidated subsidiary.

Current wording

Net income for the three months ended March 31, 2024 included restructuring expenses of $31 million, and a pre-tax gain of $6 million ($5 million after-tax) as a result of the amortization over four years of the $101 million positive impact from the 2021 U.S. healthcare plan modification.

Previous wording

The following tables show revenues and Adjusted EBIT by segment. We have also included a discussion of our results by Industrial Activities and each of our business segments:

Current wording

The following tables show revenues and Adjusted EBIT by segment. We have also included a discussion of our results by Industrial Activities and each of our business segments (in millions of dollars, except percentages):

Previous wording

Net sales of Industrial Activities were $3,997 million during the three months ended September 30, 2024, a decrease of 25.0% compared to the three months ended September 30, 2023 (down 24.0% on a constant currency basis). This decline was primarily due to lower shipment volumes on decreased industry demand, reduced dealer inventory unit requirements across all regions and unfavorable net price realization due to enhanced retail actions.

Current wording

Net sales of Industrial Activities were $3,172 million during the three months ended March 31, 2025, a decrease of 23.2% compared to the three months ended March 31, 2024 (down 20.5% on a constant currency basis) primarily due to lower shipment volumes on decreased industry demand and dealer destocking.

Previous wording

The following table shows Agriculture net sales by geographic region for the three months ended September 30, 2024 compared to the three months ended September 30, 2023:

Current wording

The following table shows Agriculture net sales by geographic region for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 (in millions of dollars, except percentages):

Previous wording

In North America, industry volume was down 18% year-over-year in the third quarter for tractors under 140 HP and was down 17% for tractors over 140 HP; combines were down 29%. In Europe, Middle East and Africa (EMEA), tractor and combine demand was down 20% and 50%, respectively. South America tractor and combine demand was down 12% and 32%, respectively, continuing the negative trend of previous quarters. Asia Pacific tractor demand was up 1%, while combine demand was down 33%.

Current wording

In North America, industry volume was down 12% year-over-year in the first quarter for tractors under 140 HP and was down 24% for tractors over 140 HP; combines were down 51%. In Europe, Middle East and Africa (EMEA), tractor and combine demand was down 23% and 34%, respectively. South America tractor and combine demand was up 10% and 1%, respectively, inverting the negative trend of previous quarters. Asia Pacific tractor demand was up 12%, while combine demand was down 12%.

Previous wording

Adjusted EBIT was $336 million in the three months ended September 30, 2024, compared to $642 million in the three months ended September 30, 2023. The decrease was driven by the lower industry volumes; partially offset by improved purchasing and manufacturing costs, and a continued reduction in SG&A expenses. R&D investments accounted for 6.0% of sales (5.5% in the three months ended September 30, 2023). Adjusted EBIT margin was 10.2% (14.6% in the three months ended September 30, 2023).

Current wording

Adjusted EBIT was $139 million in the three months ended March 31, 2025, compared to $388 million in the three months ended March 31, 2024. The decline was mostly driven by lower shipment volumes on decreased industry demand and unfavorable mix, partially offset by improved purchasing and manufacturing costs, and a continued reduction in SG&A expenses. R&D investments accounted for 6.3% of sales (6.0% in thethree months ended March 31, 2024). Adjusted EBIT margin was 5.4% (11.5% in thethree months ended March 31, 2024).

Previous wording

The following table shows Construction net sales by geographic region for the three months ended September 30, 2024 compared to the three months ended September 30, 2023:

Current wording

The following table shows Construction net sales by geographic region for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 (in millions of dollars, except percentages):

Previous wording

Global industry volume for construction equipment increased 1% year-over-year in the third quarter for Heavy construction equipment; Light construction equipment was down 9%. Aggregated demand decreased 16% in EMEA and 7% in North America, but increased 11% in South America and 3% in Asia Pacific.

Current wording

Global industry volume for construction equipment increased 2% year-over-year in the first quarter for Heavy construction equipment; Light construction equipment was down 6%. Aggregated demand decreased 11% in North America, 9% in EMEA, and 1% in South America, but increased 7% in Asia Pacific.

Previous wording

Adjusted EBIT was $40 million in the three months ended September 30, 2024, compared to $60 million in the three months ended September 30, 2023 as a result oflower volumes and unfavorable net price realization; partially offset by improved product costs, better plant efficiencies and lower SG&A expenses. Adjusted EBIT margin was 5.8% (6.3% inthe three months ended September 30, 2023).

Current wording

Adjusted EBIT was $14 million in the three months ended March 31, 2025, compared to $51 million in the three months ended March 31, 2024. The decline was primarily due to lower shipment volumes and unfavorable net price realization; partially offset by improved purchasing and manufacturing costs, and a continued reduction in SG&A expenses. Adjusted EBIT margin was 2.4% (6.7% inthe three months ended March 31, 2024).

Previous wording

Revenues of Financial Services were $2,031 million in the nine months ended September 30, 2024, up 12.5% compared to the nine months ended September 30, 2023 (up 14.1% on a constant currency basis), due to favorable volumes in all regions except EMEA and higher yields in all regions, except South America, partially offset by lower used equipment sales due to decreased operating lease maturities.

Current wording

Revenues of Financial Services were $651 million in the three months ended March 31, 2025, down 5.0% compared to the three months ended March 31, 2024 (up 0.3% on a constant currency basis), as a result of the negative impact from currency translation, lower yields primarily in South America, and lower used equipment sales due to decreased operating lease maturities; partially offset by favorable volumes in all regions except EMEA.

Previous wording

Net income of Financial Services was $78 million in the three months ended September 30, 2024, a decrease of $8 million compared to the three months ended September 30, 2023, primarily due to increased risk costs driven by higher delinquencies in South America, partially offset by higher volumes and interest margin improvements in most regions.

Current wording

Net income of Financial Services was $90 million in the three months ended March 31, 2025, a decrease of $28 million compared to the three months ended March 31, 2024, primarily due to increased risk costs in South America and North America, higher effective tax rate due to prior year Argentina inflation adjustment, and lower recoveries on used equipment sales; partially offset by favorable volumes and interest margin improvements in most regions.

Previous wording

In the three months ended September 30, 2024, retail loan originations, including unconsolidated joint ventures, were $2.8 billion, down $0.2 billion compared to 2023 (down $0.2 billion on a constant currency basis.) The managed portfolio (including unconsolidated joint ventures) was $29.0 billion as of September 30, 2024 (of which retail was 67% and wholesale was 33%), up $2.2 billion compared to September 30, 2023 (up $2.2 billion on a constant currency basis).

Current wording

In the three months ended March 31, 2025, retail loan originations, including unconsolidated joint ventures, were $2.4 billion, down $0.1 billion compared to 2024 (even on a constant currency basis.) The managed portfolio (including unconsolidated joint ventures) was $28.0 billion as of March 31, 2025 (of which retail was 69% and wholesale was 31%), down $0.7 billion compared to March 31, 2024 (up $0.3 billion on a constant currency basis).

Previous wording

At September 30, 2024, the receivables balance greater than 30 days past due as a percentage of receivables was down sequentially to 2.2%, however was elevated from prior year (1.6% as of September 30, 2023) due to economic and environmental factors, specifically in South America.

Current wording

At March 31, 2025, the receivables balance greater than 30 days past due as a percentage of receivable portfolio was 2.3%, (1.7% as of March 31, 2024).

Previous wording

The following table includes the reconciliation of Adjusted EBIT, a non-GAAP financial measure, to net income, the most comparable U.S. GAAP financial measure:

Current wording

The following table includes the reconciliation of Adjusted EBIT, a non-GAAP financial measure, to net income, the most comparable U.S. GAAP financial measure (in millions of dollars):

Previous wording

(2) In the three months ended September 30, 2024 and 2023, this item includes the pre-tax gain of $6 million as a result of the amortization over the 4 years of the $101 million positive impact from the 2021 U.S. healthcare plan modification.

Current wording

(2)For each of the three months ended March 31, 2025 and 2024, this item included the pre-tax gain of $6 million as a result of the amortization over the 4 years of the $101 million positive impact from the 2021 U.S. healthcare plan modification.

Previous wording

(2) Industrial Activities represents the enterprise without Financial Services. Industrial Activities includes the Company's Agriculture and Construction segments, and other corporate assets, liabilities, revenues and expenses not reflected within Financial Services.

Current wording

(1)Industrial Activities represents the enterprise without Financial Services. Industrial Activities includes the Company's Agriculture and Construction segments, and other corporate assets, liabilities, revenues and expenses not reflected within Financial Services.

Previous wording

(3) Eliminations of Financial Services' interest income earned from Industrial Activities.

Current wording

(3)Eliminations of Financial Services' interest income earned from Industrial Activities.

Previous wording

(4) Eliminations of Industrial Activities' interest expense to Financial Services.

Current wording

(4)Eliminations of Industrial Activities' interest expense to Financial Services.

Previous wording

(3) Eliminations of primarily receivables/payables between Industrial Activities and Financial Services.

Current wording

(2)Eliminations of primarily receivables/payables between Industrial Activities and Financial Services.

Previous wording

(4) Eliminations of financing receivables/payables between Industrial Activities and Financial Services.

Current wording

(3)Eliminations of financing receivables/payables between Industrial Activities and Financial Services.

Previous wording

(5) Reclassification of deferred tax assets/liabilities in the same jurisdiction and reclassification needed for appropriate consolidated presentation.

Current wording

(4)Reclassification of deferred tax assets/liabilities in the same jurisdiction and reclassification needed for appropriate consolidated presentation.

Previous wording

(6) Elimination of derivative assets/liabilities between Industrial Activities and Financial Services.

Current wording

(5)Elimination of derivative assets/liabilities between Industrial Activities and Financial Services.

Previous wording

(3) This item includes the elimination of dividends from Financial Services to Industrial Activities, which are included in Industrial Activities net cash used in operating activities.

Current wording

(3)This item includes the elimination of dividends from Financial Services to Industrial Activities, which are included in Industrial Activities net cash used in operating activities.

Previous wording

(4) This item includes the elimination of certain minor activities between Industrial Activities and Financial Services.

Current wording

(4)This item includes the elimination of certain minor activities between Industrial Activities and Financial Services.

Previous wording

At September 30, 2024, Cash and cash equivalents were $1,801 million ($4,322 million at December 31, 2023) and Restricted cash was $649 million ($723 million at December 31, 2023), respectively. Undrawn medium-term unsecured committed facilities were $5,215 million ($5,945 million at December 31, 2023). At September 30, 2024, the aggregate of Cash and cash equivalents, Restricted cash, undrawn medium-term unsecured committed facilities, and net financial receivables from Iveco Group which we consider to constitute our principal liquid assets (or "available liquidity"), totaled $7,891 million ($11,224 million at December 31, 2023). At September 30, 2024, this amount also included $226 million net financial receivables from Iveco Group ($234 million net financial receivables at December 31, 2023) consisting of net financial receivables mainly towards Financial Services of Iveco Group.

Current wording

At March 31, 2025, Cash and cash equivalents were $1,695 million ($3,191 million at December 31, 2024) and Restricted cash was $703 million ($675 million at December 31, 2024), respectively. Undrawn medium-term unsecured committed facilities were $6,156 million ($5,493 million at December 31, 2024). At March 31, 2025, the aggregate of Cash and cash equivalents, Restricted cash, undrawn medium-term unsecured committed facilities, and net financial receivables from Iveco Group which we consider to constitute our principal liquid assets (or "available liquidity"), totaled $8,650 million ($9,465 million at December 31, 2024). At March 31, 2025, this amount also included $96 million net financial receivables from Iveco Group ($106 million net financial receivables at December 31, 2024), consisting of net financial receivables mainly towards Financial Services of Iveco Group.

Previous wording

Cash provided by operating activities in the nine months ended September 30, 2024 totaled $276 million and primarily comprised the following elements:

Current wording

Cash provided by operating activities in the three months ended March 31, 2025 totaled $162 million and primarily comprised the following elements:

Previous wording

▪plus $454 million in non-cash charges for depreciation and amortization ($315 million excluding equipment on operating leases);

Current wording

▪plus $150 million in non-cash charges for depreciation and amortization ($102 million excluding equipment on operating leases);

Previous wording

▪less change in working capital of $1,534 million.

Current wording

▪less change in working capital of $14 million.

Previous wording

In the nine months ended September 30, 2023, net cash used in operating activities was $608 million primarily as a result of $3,121 million change in working capital and $319 million change in deferred income taxes, partially offset by $1,704 million in net income, $618 million change in provisions, $416 million in non-cash charges for depreciation and amortization.

Current wording

In the three months ended March 31, 2024, net cash used in operating activities was $894 million primarily as a result of $148 million in non-cash charges for depreciation and amortization, $39 million change in provisions, $18 million change in deferred income taxes, and $1,367 million change in working capital, partially offset by $369 million in net income.

Previous wording

Net cash used in investing activities was $2,042 million in the nine months ended September 30, 2023 and was primarily due to additions to retail receivables ($1,381 million), expenditures for assets under operating leases ($384 million), expenditures for property, plant and equipment and intangible assets, net of assets under operating lease ($401 million).

Current wording

Net cash used in investing activities was $280 million in the three months ended March 31, 2025 and was primarily due to expenditures for assets under operating leases ($158 million) and expenditures for property, plant and equipment and intangible assets, excluding assets under operating lease ($106 million).