CNH Forecasts Sales Decline in 2025

CNH Industrial is forecasting another tough year for 2025, the agricultural and construction equipment manufacturer reported Tuesday morning.

CNH is projecting agricultural equipment sales will be down between 13% and 18% this year compared to 2024 -- and that follows sharp sales declines in 2024. Net sales of construction equipment are expected to be down 5% to 10% from last year.

CNH expects these challenging market conditions will continue at least through the first half of 2025. And it's not a condition expected only by CNH. The 2024 sales year was dismal for the entire ag manufacturing industry and is expected to be so again this year.

In North America, industry sales of tractors over 140 horsepower (sales from all sources) were down 34% in the fourth quarter of 2024 compared to the fourth quarter of 2023. Sales were down 10% for tractors under 140 horsepower, and combine sales were down 33%. In Europe, the Middle East and Africa (EMEA), tractor and combine demand was off 6% and 31%, respectively, of which Europe tractor and combine demand was down 8% and 11%, respectively. South American tractor demand was down 5%, and combine demand was down 21%. Asia Pacific tractor demand was up 10%, but combine demand was down 1%.

To combat the impact of decreased sales on its balance sheet, CNH is driving down its unsold inventory levels by purposely producing fewer units than retail demand. The manufacturer is reducing product costs by managing employee outlays, giving close attention to its sources for parts and supplies, and keeping a close eye on its research and development expenses.

The value of CNH's agriculture dealer inventory was down in the fourth quarter by over $700 million, CNH notes, due to focused retail sales support and 34% fewer production hours.

Full-year 2024 revenues reported by CNH on Tuesday were $19.84 billion, down 20% year-over-year, with net sales of industrial activities, or sales of manufactured items, at $17.06 billion, down 23% from 2023. Full-year net income was $1.259 billion compared to 2023 net income of $2.287 billion.

For all of 2024, CNH reported net annual sales of agricultural equipment were down 23%, or $4 billion, to $14.007 billion. CNH's fourth-quarter performance was not a helpful contributor to its year-end financials. For the quarter ended Dec. 31, 2024, net sales were down 31%, or about $1.5 billion, due to lower shipment volumes on decreased industry demand across all regions and dealer destocking.

Construction net sales decreased for the fourth quarter by 33% to $718 million, due to lower shipment volumes, market decline and dealer destocking, mainly in North America. For the fiscal year, net sales of CNH construction equipment were down 22%, or about $900 million.

Dan Miller can be reached at dan.miller@dtn.com

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