CNH Industrial N.V.
For the period ended Sep 30, 2026. Filed Nov 9, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 9, 2026
CNH$12.82+10.9%Stored close · as of Nov 9, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-03.
0001567094-26-000018
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-09.
0001567094-26-000022
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 113 previous paragraphs and 112 current paragraphs.
72 unchanged; 25 reworded; 15 added; 16 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 14 previous and 14 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (15)
Current report
During 2026, the Company received cash refunds related to IEEPA tariffs of $117 million, of which $114 million was recorded as a reduction to "Cost of goods sold" and $3 million as a reduction to "Inventories, net" for the nine months ended September 30, 2026. The Company expects to recover approximately $38 million of additional tariff refunds in future periods as of September 30, 2026.
Current report
We recorded revenues of $4,354 million and $12,983 million for the three and nine months ended September 30, 2026, respectively, relatively flat compared to the same periods prior year. In both the quarter and year-to-date periods, growth in Construction and favorable price realization in Agriculture were largely offset by lower Agricultural shipment volumes and lower Financial Services revenues.
Current report
Cost of goods sold was $2,887 million and $8,888 million for the three and nine months ended September 30, 2026, respectively, compared with $2,995 million and $8,756 million in the three and nine months ended September 30, 2025. As a percentage of net sales, cost of goods sold was 78.4% and 80.8%, respectively, compared with 80.9% and 80.4% in the prior-year periods. The quarter benefited from $109 million of tariff refunds recognized during the period, partially offset by lower production volumes. Year-to-date, lower production volumes more than offset the benefit of $114 million of tariff refunds, resulting in a modest increase in cost of goods sold as a percentage of net sales.
Current report
Research and development expenses ("R&D") were $223 million and $685 million for the three and nine months ended September 30, 2026, respectively, compared with $281 million and $683 million in the three and nine months ended September 30, 2025. The third quarter of 2025 included a $49 million impairment charge related to IPR&D assets from the 2023 Bennamann acquisition. Excluding this charge, year-to-date expenses were modestly higher than the prior-year period, reflecting continued investment in product development initiatives.
Current report
Restructuring and other transformation expenses were $16 million and $47 million for the three and nine months ended September 30, 2026, respectively, compared with $3 million and $14 million in the three and nine months ended September 30, 2025. Year-to-date restructuring expenses of $39 million primarily reflected severance costs and dealer network optimization initiatives, including contract termination costs incurred for programs that materially change either the scope of a business undertaken by the Company, or the manner in which that business is conducted. The Company also incurred $8 million of other transformation expenses related to discrete programs intended to improve its operating model.
Current report
Interest expense was $358 million and $1,095 million for the three and nine months ended September 30, 2026, respectively, compared with $378 million and $1,100 million in the three and nine months ended September 30, 2025. The decreases were primarily driven by lower average debt balances, partially offset by higher interest rates.
Current report
The increase in income tax expense and effective tax rates was primarily driven by a $156 million non-cash valuation allowance charge recorded in the third quarter of 2026 against DTAs in CNH’s Financial Services segment in Brazil. As of September 30, 2026, the Company had incurred cumulative losses in Brazil over the preceding 36 months, which represented significant objective negative evidence regarding the realizability of these DTAs and limited management’s ability to place significant reliance on projections of future taxable income. Management's assessment of the realizability of DTAs requires significant judgment regarding the timing and amount of future taxable income and is subject to assumptions and uncertainties related to future operating results, economic and market conditions in Brazil, future delinquencies, and interest rate movements. Based on the cumulative loss position and other available evidence, management concluded that it is more likely than not that these DTAs will not be realized through future taxable income and, accordingly, recorded a valuation allowance. The valuation allowance may be reduced or released in future periods if sufficient positive evidence emerges, including sustained profitability or other sources of taxable income.
Current report
The charge did not impact cash taxes payable but increased income tax expense and effective tax rates for the three- and nine-month periods ended September 30, 2026.
Current report
Agriculture's net sales were $2,907 million and $8,780 million for the three and nine months ended September 30, 2026, respectively, a decrease of 1.9% and 0.1% compared to the three and nine months ended September 30, 2025. In the quarter, the decrease is mainly due to lower shipment volumes in South America and EMEA, partially offset by favorable price realization and growth in Asia Pacific. Year-to-date, net sales were essentially flat, as lower shipment volumes, primarily in South America, were largely offset by favorable price realization.
Current report
Construction's net sales were $777 million and $2,217 million for the three and nine months ended September 30, 2026, respectively, an increase of 5.1% and 5.4% compared with the three and nine months ended September 30, 2025. In the quarter, the increase was primarily driven by higher shipment volumes in North America, partially offset by lower volumes in South America. Year-to-date, the increase was primarily driven by higher shipment volumes in North America and a favorable market mix in EMEA, partially offset by lower volumes in South America.
Current report
Financial Services recorded a net loss of $77 million and net income of $68 million for the three and nine months ended September 30, 2026, respectively, a decrease of $124 million and $156 million compared with the three and nine months ended September 30, 2025. The decreases in both periods were primarily driven by a $156 million non-cash valuation allowance charge against DTAs in Brazil recorded during the third quarter of 2026, unfavorable currency translation impacts, and lower volumes in South America and North America, partially offset by lower risk costs in South America. Year-to-date results were also impacted by higher SG&A expenses, specifically labor costs.
Current report
Deferred Tax Assets and Valuation Allowances
Current report
Management's assessment of the realizability of DTAs requires significant judgment regarding the timing and amount of future taxable income. During the third quarter of 2026, the Company recorded a $156 million non-cash valuation allowance charge against DTAs in its Financial Services segment in Brazil. As of September 30, 2026, the Company had incurred cumulative losses in Brazil over the preceding 36 months, which represented significant objective negative evidence regarding the realizability of these DTAs. This cumulative loss position limited the Company's ability to place significant reliance on projections of future taxable income and other subjective positive evidence. Accordingly, after considering the cumulative losses and other available evidence, the Company concluded that sufficient future taxable income may not be generated to realize these DTAs and recorded the valuation allowance.
Current report
As of December 31, 2025, the Company had approximately $170 million of recognized DTAs in the United Kingdom, primarily related to net operating loss carryforwards and other deferred tax assets and liabilities. Based on available evidence, management believes it is more likely than not that these DTAs will be realized through future taxable income. This assessment requires significant judgment and is subject to various assumptions and uncertainties, including global economic conditions affecting the agricultural and construction equipment markets, economic and legislative developments in the United Kingdom, interest rate movements, and the successful execution of Company initiatives intended to improve profitability. If actual results differ from these assumptions and sufficient taxable income is not generated, the Company may be required to record a valuation allowance against all or a portion of these DTAs, which could result in a material non-cash income tax expense in the period recognized and materially affect the Company's results of operations and financial position.
Current report
On September 2, 2026, Moody's Investors Service affirmed CNH Industrial N.V.'s senior unsecured rating at 'Baa2' and maintained a Stable Outlook.
Removed paragraphs (16)
Previous report
Tariff Impacts and Supply Chain Considerations
Previous report
Changes in U.S. trade policies and certain retaliatory measures adopted by other jurisdictions increased the cost of certain imported products, components and raw materials and continue to create uncertainty across the agriculture and construction equipment industries.
Previous report
CNH operates a global supply chain with regional manufacturing, global sourcing, and significant intercompany product and component flows. As a result, the ultimate financial impact of tariffs is often subject to timing differences, customs reconciliations, duty recovery mechanisms and other subsequent adjustments before the final economic effect can be fully determined.
Previous report
While this complexity can affect the assessment of the tariff impacts, it also provides significant benefits through purchasing scale, manufacturing flexibility, logistics optimization and supply chain resilience, helping to reduce overall product and supply chain costs and support our ability to serve customers across multiple markets.
Previous report
On February 20, 2026, the Supreme Court of the United States issued a decision invalidating certain tariffs imposed pursuant to the International Emergency Economic Powers Act ("IEEPA"). Subsequently, U.S. Customs and Border Protection ("CBP") established a process for eligible refund claims.
Previous report
CNH has submitted claims where appropriate and continues to evaluate recovery opportunities.
Previous report
Consistent with the accounting guidance for gain contingencies, tariff refunds are recognized only when the gain is realized or when it is realizable. The Company considers this threshold to be met upon receipt of cash. Upon recognition, the refund is recorded as a reduction of the related costs. During the six months ended June 30, 2026, CNH recognized a tariff recovery of $5 million as a reduction of cost of sales. The Company expects to recover approximately $150 million of IEEPA tariffs in future periods as the applicable recognition criteria are met.
Previous report
We recorded revenues of $4,803 million and $8,629 million for the three and six months ended June 30, 2026, respectively, reflecting a year-over year increase compared with the same periods prior year. The increase is primarily generated by the Construction segment.
Previous report
Cost of goods sold was $3,396 million and $6,001 million for the three and six months ended June 30, 2026, respectively, compared with $3,192 million and $5,761 million in the three and six months ended June 30, 2025. As a percentage of net sales, cost of goods sold increased to 82.0% and 82.1%, respectively, from 79.4% and 80.1% in the prior-year periods, impacted by tariff costs and lower production volumes.
Previous report
Research and development expenses ("R&D") were $230 million and $462 million for the three and six months ended June 30, 2026, respectively, compared with $218 million and $402 million in the three and six months ended June 30, 2025. The increase was driven by higher variable compensation, new‑product investment and the timing of project spending.
Previous report
Restructuring and other transformation expenses were $27 million and $31 million for the three and six months ended June 30, 2026, respectively, compared with $5 million and $11 million in the three and six months ended June 30, 2025. The increase primarily reflects dealer network optimization initiatives, including contract termination costs, and other actions undertaken to improve operational efficiency.
Previous report
As of December 31, 2025, net deferred tax assets ("DTAs") related to temporary differences totaling $1,666 million, including $209 million of DTAs that were not recognized in the Consolidated Financial Statements. The recognized balance included approximately $170 million related to net operating loss carryforwards and other deferred tax assets and liabilities in the United Kingdom and approximately $130 million related to temporary differences in Brazil, primarily associated with the tax treatment of the allowance for credit losses. Both of these DTA positions may be utilized to offset future taxable income and reduce income taxes payable in future periods, provided the Company generates sufficient taxable income to realize these assets.
Previous report
If the Company is unable to generate sufficient taxable income to utilize these DTAs in the United Kingdom or Brazil, whether as a result of these factors or other developments, the Company may be required to record a valuation allowance against all or a portion of these DTAs. Such an allowance could result in a material increase in income tax expense (a non-cash item) in the period recognized and could materially affect the Company's results of operations and financial position.
Previous report
Agriculture's net sales were $3,277 million and $5,873 million for the three and six months ended June 30, 2026, respectively, an increase of 0.9% and 0.8% compared to the three and six months ended June 30, 2025. The increase is mainly due to favorable price realization, partially offset by lower volumes.
Previous report
Construction's net sales were $866 million and $1,440 million in the three and six months ended June 30, 2026, respectively, an increase of 12.0% and 5.6% compared with the three and six months ended June 30, 2025. The growth was primarily driven by higher shipment volumes in North America, including shipments delayed from the first quarter of 2026. The six-month period also benefitted from increased shipment volumes in EMEA.
Previous report
Net income for Financial Services was $71 million and $145 million in the three and six months ended June 30, 2026, respectively, a decrease of $16 million and $32 million compared with the three and six months ended June 30, 2025. The decreases were primarily due to higher risk costs in Brazil, unfavorable volumes in South America and North America, and increased labor costs. Additionally, margin compression in all regions except North America contributed to the decline in the three-month period. These decreases were partially offset by a lower effective tax rate.
Reworded paragraphs (25)
Previous wording
Global agriculture market conditions remained challenging during the first half of 2026. Farm income and capital spending remained under pressure from elevated input costs, higher financing costs, and continued uncertainty related to trade and agricultural policy, resulting in subdued demand for agricultural equipment. While farmer sentiment remained cautious, commodity markets demonstrated signs of improvement, with pricing strengthening in certain crop markets. The Company continues to view the current environment as a cyclical market downturn and remains focused on disciplined production and inventory management, operational efficiency, strategic cost actions, and investment in Precision Technology and innovation.
Current wording
Global agriculture market conditions remained challenging during the first nine months of 2026. Farm income and capital spending remained under pressure from elevated input costs, higher financing costs, and continued uncertainty related to trade and agricultural policy, resulting in subdued demand for agricultural equipment. While farmer sentiment remained cautious, commodity markets demonstrated signs of improvement, with pricing strengthening in certain crop markets. The Company continues to view the current environment as a cyclical market downturn and remains focused on disciplined production and inventory management, operational efficiency, strategic cost actions, and investment in Precision Technology and innovation.
Previous wording
For a discussion of the Company's risks and uncertainties, see Part 1, Item 1A: Risk Factors in the Company's Form 10-K for the year ended December 31, 2025 and Part II, Item 1A: Risk Factors within this Form 10-Q.
Current wording
For a discussion of the Company's risks and uncertainties, see Part 1, Item 1A: Risk Factors in the Company's 2025 Annual Report and Part II, Item 1A: Risk Factors within this Form 10-Q.
Previous wording
Three and Six Months Ended June 30, 2026 compared to Three and Six Months Ended June 30, 2025
Current wording
Three and Nine Months Ended September 30, 2026 compared to Three and Nine Months Ended September 30, 2025
Previous wording
Selling, general and administrative expenses ("SG&A") were $494 million and $959 million for the three and six months ended June 30, 2026, respectively, compared with $478 million and $864 million in the three and six months ended June 30, 2025. As a percentage of total revenues, SG&A increased to 10.3% and 11.1%, respectively, from 10.1% in both prior-year periods. The increase primarily reflects higher credit risk provisions in the Financial Services segment and higher labor costs, substantially driven by the first quarter of 2026.
Current wording
Selling, general and administrative expenses ("SG&A") were $490 million and $1,449 million for the three and nine months ended September 30, 2026, respectively, compared with $549 million and $1,413 million in the three and nine months ended September 30, 2025. As a percentage of total revenues, SG&A was 11.3% and 11.2%, respectively, compared with 12.5% and 10.9% in the three and nine months ended September 30, 2025. The decrease in the three-month period primarily reflects lower risk costs in the Financial Services segment and the benefit of cost reduction actions. The increase in the nine-month period was primarily driven by increased labor costs.
Previous wording
Interest expense was $372 million and $737 million for the three and six months ended June 30, 2026, respectively, compared with $360 million and $722 million in the three and six months ended June 30, 2025. Interest expense attributable to Industrial Activities, net of interest income and eliminations, for the three and six months ended June 30, 2026 was $41 million and $64 million, respectively, compared with $26 million and $51 million in the three and six months ended June 30, 2025. The higher expense was primarily attributable to increased interest rates, which more than offset the favorable impact of lower average debt balances.
Current wording
Interest expense attributable to Industrial Activities, net of interest income and eliminations, for the three and nine months ended September 30, 2026 was $30 million and $94 million, respectively, compared with $26 million and $77 million in the three and nine months ended September 30, 2025. The increase in net interest expense was primarily driven by lower average cash balances available for investment, resulting in reduced interest income.
Previous wording
Other, net expenses were $112 million and $254 million for the three and six months ended June 30, 2026, respectively, compared with $183 million and $342 million in the three and six months ended June 30, 2025. The decrease was primarily attributable to lower costs associated with the disposition of equipment under operating leases following lease termination and lower amortization of leased assets, mainly within our Financial Services segment.
Current wording
Other, net expenses were $153 million and $407 million for the three and nine months ended September 30, 2026, respectively, compared with $142 million and $484 million in the three and nine months ended September 30, 2025. In the quarter, the increase was primarily attributable to higher costs associated with the disposition of equipment under operating leases following lease termination, mainly within our Financial Services segment. Year-to-date, the decrease was primarily attributable to lower costs associated with the disposition of equipment under operating leases following lease termination and lower amortization of leased assets.
Previous wording
Income tax expense for the three and six months ended June 30, 2026 was $43 million and $47 million, respectively, compared with $76 million and $123 million in the three and six months ended June 30, 2025. The effective tax rate for the three and six months ended June 30, 2026 was 25.0% and 25.4%, respectively, compared with 27.6% and 28.1% in the three and six months ended June 30, 2025. The decrease in the effective tax rate was primarily attributable to the Company's geographic income mix.
Current wording
Income tax expense for the three and nine months ended September 30, 2026 was $204 million and $251 million, respectively, compared with $1 million and $124 million in the three and nine months ended September 30, 2025. The effective tax rates for the three and nine months ended September 30, 2026 were 89.9% and 60.9%, respectively, compared with 2.0% and 25.4% in the three and nine months ended September 30, 2025.
Previous wording
Based on available evidence, management believes it is more likely than not that sufficient future taxable income will be generated to realize these DTAs in the United Kingdom and Brazil. However, this assessment is subject to various assumptions and uncertainties, including changes in global economic conditions affecting the agricultural and construction equipment markets, economic and legislative developments in the United Kingdom and Brazil, portfolio performance and delinquency trends in Brazil, changes in interest rates, and the successful execution of Company initiatives intended to improve profitability and reduce delinquencies.
Current wording
As of December 31, 2025, the Company had approximately $170 million of recognized DTAs in the United Kingdom, primarily related to net operating loss carryforwards and other deferred tax assets and liabilities. Based on available evidence, management believes it is more likely than not that these DTAs will be realized through future taxable income. This assessment requires significant judgment and is subject to various assumptions and uncertainties, including global economic conditions affecting the agricultural and construction equipment markets, economic and legislative developments in the United Kingdom, interest rate movements, and the successful execution of Company initiatives intended to improve profitability. If actual results differ from these assumptions and sufficient taxable income is not generated, the Company may be required to record a valuation allowance against all or a portion of these DTAs, which could result in a material non-cash income tax expense in the period recognized and materially affect the Company's results of operations and financial position.
Previous wording
Equity income from unconsolidated affiliates was $12 million and $13 million for the three and six months ended June 30, 2026, respectively, and $18 million and $35 million in the three and six months ended June 30, 2025. The decline was primarily due to lower sales at our joint venture, TürkTraktör ve Ziraat Makineleri A.S.
Current wording
Equity income from unconsolidated affiliates was $12 million and $25 million for the three and nine months ended September 30, 2026, respectively, and $17 million and $52 million in the three and nine months ended September 30, 2025. The decline was primarily due to lower sales at our joint venture, TürkTraktör ve Ziraat Makineleri A.S.
Previous wording
Adjusted EBIT was $170 million and $197 million in the three and six months ended June 30, 2026, respectively, compared with $263 million and $402 million in the three and six months ended June 30, 2025. The decrease was primarily driven by lower volumes and an unfavorable product mix in South America, the impact of tariffs, higher SG&A and R&D expenses, and lower joint venture results, partially offset by favorable price realization. SG&A expenses were impacted by higher labor costs. R&D expenses accounted for 6.1% of sales and 6.9% for the three and six months ended June 30, 2026, respectively, compared with 6.0% and 6.1%in thethree and six months ended June 30, 2025. Adjusted EBIT margin was 5.2% and 3.4% for the three and six months ended June 30, 2026, respectively, compared with 8.1% and 6.9% in thethree and six months ended June 30, 2025.
Current wording
Adjusted EBIT was $173 million and $370 million in the three and nine months ended September 30, 2026, respectively, compared with $137 million and $539 million in the three and nine months ended September 30, 2025. In the quarter, the increase in Adjusted EBIT was primarily driven by $62 million of IEEPA tariff refunds recognized during the period and better quality-related costs, partially offset by lower volumes in South America and EMEA. Year-to-date, the decrease was primarily driven by lower volumes in all regions except Asia Pacific, higher SG&A and R&D expenses, and lower joint venture results, partially offset by tariff refunds and favorable price realization. SG&A expenses were impacted by higher labor costs. R&D expenses accounted for 6.8% of sales and 6.9% for the three and nine months ended September 30, 2026, respectively, compared with 8.6% and 6.9%in thethree and nine months ended September 30, 2025. R&D expenses for the third quarter of 2025 included a $49 million impairment charge related to the Bennamann IPR&D asset. Adjusted EBIT margin was 6.0% and 4.2% for the three and nine months ended September 30, 2026, respectively, compared with 4.6% and 6.1% in thethree and nine months ended September 30, 2025.
Previous wording
Adjusted EBIT was $15 million and $(13) million in the three and six months ended June 30, 2026, respectively, compared with $35 million and $49 million in the three and six months ended June 30, 2025. The decrease was primarily due to the impact of tariffs and higher R&D expenses, partially offset by higher shipment volumes in both periods. Second-quarter SG&A expenses benefitted from the absence of prior year non-recurring costs, while year-to-date SG&A expenses increased due totrade show marketing costs, higher variable compensation, and labor inflation. Adjusted EBIT margin was 1.7% and (0.9)% for the three and six months ended June 30, 2026, respectively, compared with 4.5% and 3.6% in the three and six months ended June 30, 2025.
Current wording
Adjusted EBIT was $65 million and $52 million in the three and nine months ended September 30, 2026, respectively, compared with $14 million and $63 million in the three and nine months ended September 30, 2025. In the quarter, the increase in Adjusted EBIT was primarily driven by $47 million of IEEPA tariff refunds recognized during the period and lower SG&A expenses, partially offset by lower shipment volumes in South America. Year-to-date, the decrease was primarily driven by higher R&D and SG&A expenses, as well as increased plant-related and non-quality costs, partially offset by higher shipment volumes and improved manufacturing absorption. Third-quarter SG&A expenses benefited from lower advertising, travel and labor costs, while year-to-date SG&A expenses increased due to higher variable compensation and labor inflation. Adjusted EBIT margin was 8.4% and 2.3% for the three and nine months ended September 30, 2026, respectively, compared with 1.9% and 3.0% in the three and nine months ended September 30, 2025.
Previous wording
Financial Services recorded revenues of $656 million and $1,302 million in the three and six months ended June 30, 2026, respectively, down 4.2% and 2.5% compared with the three and six months ended June 30, 2025. The decreases were primarily attributable to lower volumes in South America and North America and reduced used equipment sales due to fewer operating lease maturities. For the three-month period, lower yields in all regions except South America also contributed to the decline. These decreases were partially offset by the positive impact of currency translation.
Current wording
Financial Services' revenues were $665 million and $1,967 million in the three and nine months ended September 30, 2026, respectively, down 2.8% and 2.6% compared with the three and nine months ended September 30, 2025. In the quarter, the decrease was primarily driven by lower volumes in South America and North America and lower yields in most regions, partially offset by favorable currency translation and higher used equipment sales driven by increased operating lease maturities and early payoffs. Year-to-date, the decrease was primarily attributable to lower volumes in South America and North America and reduced used equipment sales due to fewer operating lease maturities, partially offset by favorable currency translation.
Previous wording
In the three and six months ended June 30, 2026, retail loan originations, including unconsolidated joint ventures, were $2.5 billion and $4.7 billion, respectively, a decrease of $0.2 billion and $0.4 billion compared with the three and six months ended June 30, 2025. The managed portfolio, including unconsolidated joint ventures, was $28.0 billion as of June 30, 2026 (comprised of 70% retail and 30% wholesale), a decrease of $0.7 billion compared with June 30, 2025.
Current wording
In the three and nine months ended September 30, 2026, retail loan originations, including unconsolidated joint ventures, were $2.5 billion and $7.2 billion, respectively, a decrease of $0.2 billion and $0.6 billion compared with the three and nine months ended September 30, 2025. The managed portfolio, including unconsolidated joint ventures, was $27.8 billion as of September 30, 2026 (comprised of 70% retail and 30% wholesale), a decrease of $0.7 billion compared with September 30, 2025.
Previous wording
As of June 30, 2026, receivables greater than 30 days past due represented 4.4% of total receivables, compared with 3.9% as of June 30, 2025. The increase primarily reflects economic pressures on farmers in South America.
Current wording
As of September 30, 2026, receivables greater than 30 days past due represented 4.1% of total receivables, compared with 3.5% as of September 30, 2025. The increase primarily reflects economic pressures on farmers in South America.
Previous wording
(1)Elimination of dividends from Financial Services to Industrial Activities, which are included in Industrial Activities net cash provided (used) by operating activities.
Current wording
(1)Elimination of dividends from Financial Services to Industrial Activities, which are included in Industrial Activities Net cash provided by (used in) operating activities.
Previous wording
(1)For the six months ended June 30, 2026, this item included an $8 million non-cash impairment on a minority investment.
Current wording
(1)For the nine months ended September 30, 2026, this item included an $8 million non-cash impairment on a minority investment. For the three and nine months ended September 30, 2025, this item includes a $49 million impairment charge related to Bennamann IPR&D assets and a $10 million inventory write-down for the New Holland T6.180 Methane Power Tractor.
Previous wording
See our critical accounting estimates discussed in "Part II, Item 7. Management's Discussion and Analysis of Financial Condition—Critical Accounting Estimates" of our 2025 Annual Report. There have been no material changes to these estimates.
Current wording
See our critical accounting estimates discussed in "Part II, Item 7. Management's Discussion and Analysis of Financial Condition—Critical Accounting Estimates" of our 2025 Annual Report. Except as discussed below with respect to deferred tax assets and valuation allowances, there have been no material changes to these estimates.
Previous wording
Total available liquidity was $8,897 million as of June 30, 2026, a decrease of $919 million from December 31, 2025. The decrease primarily reflects lower Financial Services debt driven by reduced portfolio receivables and lower net income.
Current wording
Total available liquidity was $8,689 million as of September 30, 2026, a decrease of $1,127 million from December 31, 2025. The decrease primarily reflects lower Financial Services debt driven by reduced portfolio receivables, lower net income, and cash used in Industrial activities during the period.
Previous wording
As of June 30, 2026, available committed unsecured facilities expiring after twelve months totaled approximately $6.3 billion ($6.5 billion as of December 31, 2025). Committed asset-backed facilities expiring after twelve months totaled approximately $3.1 billion as of June 30, 2026 ($3.7 billion as of December 31, 2025), of which $2.5 billion was utilized ($3.5 billion as of December 31, 2025).
Current wording
As of September 30, 2026, available committed unsecured facilities expiring after twelve months totaled approximately $6.3 billion ($6.5 billion as of December 31, 2025). Committed asset-backed facilities expiring after twelve months totaled approximately $3.1 billion as of September 30, 2026 ($3.7 billion as of December 31, 2025), of which $3.0 billion was utilized ($3.5 billion as of December 31, 2025).
Previous wording
Net cash provided by operating activities was $180 million for the six months ended June 30, 2026, compared with $934 million for the six months ended June 30, 2025. The year-over-year decrease primarily reflects lower net income and unfavorable changes in working capital.
Current wording
Net cash provided by operating activities was $866 million for the nine months ended September 30, 2026, compared with $1,593 million for the nine months ended September 30, 2025. The year-over-year decrease primarily reflects lower net income, higher inventory levels, lower receivables generation, partially offset by lower trade payables and provision absorption.
Previous wording
Net Cash provided by/used in Investing Activities
Current wording
Net Cash used in Investing Activities
Previous wording
Net cash provided by investing activities was $73 million for the six months ended June 30, 2026, compared with net cash used in investing activities of $622 million for the six months ended June 30, 2025. The year-over-year improvement reflects lower additions to retail receivables, which totaled $3,290 million in 2026 compared with $3,701 million in 2025, as well as favorable changes in other investing-related assets and liabilities. Expenditures for property, plant and equipment and intangible assets totaled $210 million, while investments in assets under operating leases totaled $281 million, with combined spending slightly below 2025 levels.
Current wording
Net cash used in investing activities was $292 million for the nine months ended September 30, 2026, compared with net cash used in investing activities of $1,088 million for the nine months ended September 30, 2025. The year-over-year improvement reflects lower additions to retail receivables, which totaled $5,020 million in 2026 compared with $5,605 million in 2025, as well as favorable changes in other investing-related assets and liabilities. Expenditures for property, plant and equipment and intangible assets totaled $340 million, while investments in assets under operating leases totaled $430 million, with combined spending slightly below 2025 levels.
Previous wording
Net cash used in financing activities was $1,024 million for the six months ended June 30, 2026, compared with $1,261 million for the six months ended June 30, 2025. The year-over-year change reflects lower net cash outflows from other financial liabilities, which totaled $683 million in 2026 compared with $1,393 million in 2025, driven by lower wholesale facilities and short-term revolving lines. Net cash outflows related to long-term debt were $152 million in 2026, compared with net cash inflows of $458 million in 2025, reflecting fewer retail securitizations, reduced utilization of commercial paper and revolving credit facilities, and lower bond issuances. The improvement also benefitted from lower dividend payments, partially offset by higher treasury share repurchases.
Current wording
Net cash used in financing activities was $1,584 million for the nine months ended September 30, 2026, compared with $1,634 million for the nine months ended September 30, 2025. The year-over-year change reflects lower net cash outflows from other financial liabilities, which totaled $206 million in 2026 compared with $1,990 million in 2025, driven by lower wholesale facilities and short-term revolving lines. This benefit was largely offset by net cash outflows related to long-term debt of $1,162 million in 2026, compared with net cash inflows of $733 million in 2025, reflecting fewer retail securitizations, reduced utilization of commercial paper and revolving credit facilities, and lower bond issuances. The year-over-year change also benefitted from lower dividend payments, partially offset by higher treasury share repurchases.
Previous wording
This Quarterly Report includes all statements other than statements of historical fact contained in this filing, including competitive strengths, business strategy, future financial position or operating results, budgets, projections with respect to revenue, income, earnings (or loss) per share, capital expenditures, dividends, liquidity, capital structure or other financial items, costs, and plans and objectives of management regarding operations and products, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act, and Section 21E of the Exchange Act. Forward-looking statements also include, but are not limited to, statements regarding the plans, objectives, strategies, financial performance and outlook, trends, and future performance of CNH and its subsidiaries on a standalone basis. These statements may include terminology such as "may", "will", "expect", "could", "should", "intend", "estimate", "anticipate", "believe", "outlook", "continue", "remain", "on track", "design", "target", "objective", "goal", "forecast", "projection", "prospects", "plan", or similar terminology. Forward-looking statements are not guarantees of future performance. Rather, they are based on current views, expectations, estimates, and assumptions, including, in some cases, estimates and data received from third parties, and involve known and unknown risks, uncertainties and other factors, many of which are outside our control and are difficult to predict. If any of these risks and uncertainties materialize (or they occur with a degree of severity that the Company is unable to predict) or if any other assumptions underlying any of the forward-looking statements prove to be incorrect, actual results or developments may differ materially from any future results or developments expressed or implied by the forward-looking statements.
Current wording
This Quarterly Report, filed with the U.S. Securities and Exchange commission (the "SEC"), includes all statements other than statements of historical fact contained in this filing, including competitive strengths, business strategy, future financial position or operating results, budgets, projections with respect to revenue, income, earnings (or loss) per share, capital expenditures, dividends, liquidity, capital structure or other financial items, costs, and plans and objectives of management regarding operations and products, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act, and Section 21E of the Exchange Act. Forward-looking statements also include, but are not limited to, statements regarding the plans, objectives, strategies, financial performance and outlook, trends, and future performance of CNH and its subsidiaries on a standalone basis. These statements may include terminology such as "may", "will", "expect", "could", "should", "intend", "estimate", "anticipate", "believe", "outlook", "continue", "remain", "on track", "design", "target", "objective", "goal", "forecast", "projection", "prospects", "plan", or similar terminology. Forward-looking statements are not guarantees of future performance. Rather, they are based on current views, expectations, estimates, and assumptions, including, in some cases, estimates and data received from third parties, and involve known and unknown risks, uncertainties and other factors, many of which are outside our control and are difficult to predict. If any of these risks and uncertainties materialize (or they occur with a degree of severity that the Company is unable to predict) or if any other assumptions underlying any of the forward-looking statements prove to be incorrect, including any assumptions regarding strategic plans, actual results or developments may differ materially from any future results or developments expressed or implied by the forward-looking statements.
Previous wording
Factors, risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements include, among others: economic conditions in each of our markets, including the significant uncertainty caused by geopolitical events; production and supply chain disruptions, including industry capacity constraints, material availability, and global logistics delays and constraints; the many interrelated factors that affect consumer confidence and worldwide demand for capital goods and capital goods related products; changes in government policies regarding banking, monetary and fiscal policy; legislation, particularly pertaining to capital goods-related issues such as agriculture, the environment, debt relief and subsidy program policies, trade and commerce and infrastructure development; government policies on international trade and investment, including sanctions, import quotas, capital controls and tariffs; volatility in international trade caused by the imposition of tariffs, sanctions, embargoes, and trade wars; actions of competitors in the various industries in which we compete; development and use of new technologies and technological difficulties; the interpretation of, or adoption of new, compliance requirements with respect to engine emissions, safety, or other aspects of our products; labor relations; interest rates and currency exchange rates; inflation and deflation; energy prices; prices for agricultural commodities and material price increases; housing starts and other construction activity; weather conditions, particularly to the extent it impacts the agricultural industry; our ability to obtain financing or to refinance existing debt; price pressure on new and used equipment; the resolution of pending litigation and investigations on a wide range of topics, including dealer and supplier litigation, intellectual property rights disputes, product warranty and defective product claims, and emissions and/or fuel economy regulatory and contractual issues; security breaches, cybersecurity attacks, technology failures, and other disruptions to the information technology infrastructure of CNH and its suppliers and dealers; security breaches with respect to our products; our pension plans and other postemployment obligations; political and civil unrest; volatility and deterioration of capital and financial markets, including pandemics (such as the COVID-19 pandemic), terrorist attacks in Europe and elsewhere; the remediation of a material weakness; our ability to realize the anticipated benefits from our business initiatives as part of our strategic plan; including targeted restructuring actions to optimize our cost structure and improve the efficiency of our operations; our failure to realize, or a delay in realizing, all of the anticipated benefits of our acquisitions, joint ventures, strategic alliances or divestitures and other similar risks and uncertainties, and our success in managing …
Excerpt shortened here; the source contains the full paragraph.
Current wording
Factors, risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements include, among others: economic conditions in each of our markets, including the significant uncertainty caused by geopolitical events; production and supply chain disruptions, including industry capacity constraints, material availability, and global logistics delays and constraints; the many interrelated factors that affect consumer confidence and worldwide demand for capital goods and capital goods-related products, particularly as it relates to the agricultural market business cycle; changes in government policies regarding banking, monetary and fiscal policy; legislation, particularly pertaining to capital goods-related issues such as agriculture, the environment, debt relief and subsidy program policies, trade and commerce and infrastructure development; government policies on international trade and investment, including sanctions, import quotas, capital controls and tariffs and other protective measures issued to promote national interest or address foreign competition, which in turn result in, or may result in, retaliatory tariffs or other measures enacted by affected trade partners; volatility in international trade caused by the imposition of tariffs and the related impact on cost and prices, which could consequently affect demand for our products, sanctions, embargoes, and trade wars; actions of competitors in the various industries in which we compete; development and use of new technologies (including artificial intelligence) and technological difficulties; the interpretation of, or adoption of new, compliance requirements with respect to engine emissions, safety, privacy and data security or other aspects of our products; labor relations; interest rates and currency exchange rates; inflation and deflation; energy prices; prices for agricultural commodities and material price increases; housing starts and other construction activity; weather conditions, particularly to the extent it impacts the agricultural industry; our ability to obtain financing or to refinance existing debt; price pressure on new and used equipment; the resolution of pending litigation and investigations on a wide range of topics, including dealer and supplier litigation, intellectual property rights disputes, product warranty and defective product claims, and emissions and/or fuel economy regulatory and contractual issues; security breaches, cybersecurity attacks, technology failures, and other disruptions to the information technology infrastructure of CNH and its suppliers and dealers; security breaches with respect to our products; our pension plans and other postemployment obligations; political and civil unrest; volatility and deterioration of capital and financial markets, including pandemics, terrorist attacks in Europe and elsewhere; the remediation of a material weakness; our ability to realize the anticipated …
Excerpt shortened here; the source contains the full paragraph.