CNH is focusing on reducing production and inventory levels to combat what it referred to as the "trough year" of the agricultural machinery market.

CNH Industrial, which is the parent company of Case IH and New Holland, reported adjusted earnings before income and taxes (EBIT) of $167 million in the second quarter (Q2) of 2026, down 25% from €224 million in Q2 2025.

According to the report, net income also fell 35% year-on-year for the quarter, reaching $141 million for the period.

CNH chief executive Gerrit Marx said: 'Farmers continue to face challenging market dynamics, including low commodity prices, high input costs, and an uncertain trade environment."

He stated that the CNH agriculture division is responding to these factors by "maintaining low production levels, working with its dealer network to lower channel inventory, pursuing cost efficiencies, and managing rapid changes in tradepolicies".

Agriculture sales

According to the report, consolidated revenues from its agriculture, construction and financial services divisions for Q2 2026 were $4.8 billion, up 2% year-on-year.

This indicates that while sales of goods grew, overall profitability was down.

Overall, net sales in the agricultural division remained stable, up 1% year-on-year.

However, in Europe, the Middle East and Africa (EMEA), tractor and combine demand was down 11% and 1% respectively.

North American tractor demand shrunk in 2026, with second quarter sales down 16% year-on-year for tractors under 140hp, and down 17% year-on-year for tractors above 140hp.

CNH attributed these reductions to an "unfavourable mix in North America and EMEA", citing tariffs, higher expenses in operations - mainly due to higher labour costs - and research and development, and "lower joint venture results".

Part of these smaller sales figures are due to CNH reducing dealer inventory since last year.

In addition, the company is targeting investment in research and development, such as in the Modena automated logistics and virtual simulation.

CNH has also been looking at how it can diversify its brand, such as supporting the experimental partnership of its brand Steyr with Mehler Protection to develop a light-armoured tractor.

While that partnership was only to produce a concept design, CNH's EMEA president Markus Muller mentioned that the company was evaluating "a potential entry into defence-related activities".

2026 outlook

CNH updated its 2026 forecast in line with a new prediction for the year, as the company believes it will hit the higher end of forecast ranges previously communicated.

The company is expecting to deliver "flat results" in agricultural sales by the end of the year.

Its construction segment is focused on "delivering quality products" while also improving manufacturing efficiency and tariff cost offset opportunities, with net sales of 5-10% expected by year end.

According to Marx: "Our second quarter results reflect disciplined execution by the CNH team in a market that remains at the trough of the agriculture cycle.

"Despite the industry conditions, we delivered year-over-year revenue growth and continued progress on our strategic priorities, including quality, sourcing, operational efficiency, and dealer network consolidation.

"We remain focused on supporting our dealers and customers today while investing in the iron and technology capabilities that will strengthen CNH through the next cycle," Marx said.