CNH Industrial releases financial results for 2023 and outlook for 2024

CNH Industrial NV today announced its financial results for the three and twelve months ended December 31, 2023. The company recorded consolidated revenues of US$24,7 billion for the year, an increase of 5% compared to the previous year. Net sales from industrial activities reached US$22,1 billion, with growth of almost 3%. Annual net profit was US$2,383 billion, higher than the US$2,039 billion in 2022.

Scott W. Wine, CEO of CNH Industrial, highlighted the early achievement of margin targets for the agriculture and construction segments, attributing the success to the CNH team's efforts to simplify the company and expand margins throughout the cycle.

For 2024, CNH predicts a reduction in global retail sales in both the agricultural and construction equipment markets, estimating a 10 to 15% drop in sales in the agricultural industry and around 10% in the construction equipment sector. As announced, the company remains focused on improving margins throughout the cycle.

Projections for 2024 include a reduction in net sales in the agriculture and construction segments, with adjusted EBIT margins between 14% and 15% for agriculture and between 5% and 6% for construction. Free cash flow from industrial activities is expected to be between $1,2 billion and $1,4 billion, with adjusted diluted earnings per share between $1,50 and $1,60.

Additionally, CNH announced a new share buyback program worth US$500 million, which will begin after the current US$1 billion program is completed. Repurchases will be carried out in accordance with market conditions and legal requirements, with no minimum purchase required, and may be modified, suspended or discontinued at any time.