CNH releases 2024 results

The agricultural segment was one of the most affected

04.02.2025 | 09:11 (UTC -3)
Cultivar Magazine

CNH Industrial NV ended 2024 with a decline in its financial indicators. The company's annual consolidated revenue was US$ 19,84 billion, a 20% decrease compared to 2023.

The company's net income fell from $2,287 billion in 2023 to $1,259 billion in 2024, while adjusted earnings per share fell from $1,69 to $0,99.

Impacts on the agricultural segment

The agricultural segment was one of the most affected in 2024. Global demand for this equipment declined, with significant drops in the main regions.

In North America, demand for tractors above 140 hp fell by 34%, while models below that level saw a 10% reduction. Demand for harvesters in the region fell by 33%.

In Europe, the Middle East and Africa (EMEA), orders for tractors fell by 6% and for combines by 31%.

In South America, the falls were 5% and 21%, respectively.

The only exception was the Asia-Pacific region, which saw 10% growth in demand for tractors, although demand for combine harvesters fell by 1%.

Net sales in the agricultural segment declined 31% in the last quarter of the year, totaling US$3,4 billion. Adjusted operating income (EBIT) fell sharply from US$635 million in the fourth quarter of 2023 to US$244 million in 2024, reflecting the decline in sales volumes.

Investment in research and development increased to 6,2% of net sales, up from 5% in the previous year.

Prospects for 2025

CNH Industrial CEO Gerrit Marx emphasized that the company will continue to adjust its production to reduce inventories and face continued challenging market conditions.

"We expect the adverse scenario to persist at least until the first half of 2025, and we will maintain production at reduced levels to avoid the accumulation of inventories in the sales channel," he said.

For 2025, the company expects a decline in net sales in the agricultural sector, estimating a reduction of between 13% and 18% compared to 2024, considering exchange rate effects. The segment's adjusted EBIT is expected to vary between 8,5% and 9,5%.

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