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Mar 31, 2023

CNH Industrial Q1 2023 Earnings Report

CNH Industrial reported record results driven by strong demand for agriculture equipment and improved construction performance.

Key Takeaways

CNH Industrial reported strong Q1 2023 results, with consolidated revenues up 15% to $5,342 million and net income reaching $486 million. The company benefited from robust demand in the agriculture sector and improved performance in construction, particularly in North America. Strategic acquisitions and lean enterprise programs are contributing to a simpler and more effective company.

Consolidated revenues increased by 15% compared to Q1 2022, reaching $5,342 million.

Net income was $486 million, with diluted EPS of $0.35.

Net sales for Industrial Activities increased by 14% compared to Q1 2022, totaling $4,776 million.

Net sales guidance for FY 2023 was updated to an increase of 8-11% vs 2022.

Total Revenue
$5.34B
Previous year: $4.65B
+15.0%
EPS
$0.35
Previous year: $0.28
+25.0%
Gross Profit Margin
24.4%
Previous year: 21.4%
+14.0%
Retail Loan Originations
$2.25B
Gross Profit
$1.73B
Previous year: $1.36B
+27.4%
Cash and Equivalents
$3.21B
Previous year: $3.22B
-0.2%
Free Cash Flow
-$673M
Total Assets
$40.6B
Previous year: $36.5B
+11.2%

CNH Industrial

CNH Industrial

CNH Industrial Revenue by Segment

Forward Guidance

CNH Industrial updated the 2023 outlook for its Industrial Activities.

Positive Outlook

  • Net sales up between 8% and 11% year on year including currency translation effects
  • North American demand for row crop products is strong.
  • Globally, pricing continues to be resilient.
  • Order backlog remains solid and well above 2019 levels.

Challenges Ahead

  • SG&A up, no more than 5% vs 2022
  • The Company is unable to provide this reconciliation without unreasonable effort due to the uncertainty and inherent difficulty of predicting the occurrence, the financial impact, and the periods in which the adjustments may be recognized.
  • For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could be material to future results.

Revenue & Expenses

Visualization of income flow from segment revenue to net income