A Year In Review: How CNH Industrial See Declined Sales In 2025

Over the past year, there has been a mixed phase in the global market for construction equipment. While some brands have been able to maintain their market share, others are attempting to modify their tactics in response to changes in project types and geographic demand. CNH Industrial, the parent company of popular brands CASE Construction Equipment and New Holland Construction, is one business that is currently reconsidering its approach to construction equipment.

The company recently released its 2025 financial results, and although the last quarter of the year showed some encouraging signs, the overall figures indicate that the construction segment had a difficult year. In the meantime, the business is now candidly talking about potential alliances that might improve its standing in the construction equipment industry in the years to come.

How did Q4 go, in spite of the pressure on profit?

Sales of construction equipment did increase at the end of 2025 for CNH Industrial. Net sales of construction equipment reached roughly $853 million in the fourth quarter alone, a 19% increase. Higher shipment volumes and marginally better prices were the primary causes of the increase, especially in North America, where construction activity was comparatively stable in comparison to some other regions.

Higher heavy machinery sales did not always result in higher profits. Tariffs and growing product costs put a lot of pressure on margins. During the quarter, these extra costs increased by about $43 million, which had a discernible effect on profitability. Consequently, the construction segment’s adjusted earnings before interest and taxes fell precipitously to approximately $5 million, a sharp 72 percent decrease from the prior period.

What caused the real slowdown in sales over the course of the year?

The slowdown is much more evident when considering the full year rather than just one quarter. According to CNH Industrial, its net sales of construction equipment fell by roughly 3% in 2025, resulting in just under $3 billion in total revenue.

Even more sharply, profitability declined. The construction company’s adjusted earnings before interest and taxes ended the year at about $68 million, a 60% decrease from the previous year. These figures imply that even though machines were still being sold, the company found it much more difficult to sustain healthy profit levels due to growing expenses and market pressures.

The heavy equipment industry is seeing an increase in the prevalence of this type of pattern. Manufacturers might still be able to move a respectable number of machines, but the total financial return can be rapidly diminished by supply chain expenses, tariffs, and shifting demand trends.

Why is CNH seeking a partnership once more for its construction industry?

CEO Gerrit Marx made one of the most fascinating remarks during the company’s earnings call. He verified that CNH has resumed talks about its construction equipment business with a number of possible partners.

He claims that although there isn’t any immediate pressure to close a deal, the business wants to look into possibilities that might enable it to expand more quickly in the international construction industry. Through partnerships, CNH may be able to expand its technological capabilities, enhance product development, and reach new markets without having to make all of the investment on its own.

Marx also stated that the business will keep providing a complete range of Case and New Holland construction equipment via networks of agricultural and construction dealers. To put it another way, dealers and consumers shouldn’t expect the brands to vanish. Rather than leaving the company, it seems to be trying to find ways to make it stronger.

CNH has not yet disclosed any particular partners or agreements. If progress is made, the company said, updates may be provided during 2026 or even 2027 earnings talks.

What is the company’s forecast for the construction sector in 2026?

CNH Industrial does not anticipate a significant shift in the demand for construction equipment anytime soon. According to the company’s forecast, the demand for construction equipment worldwide in 2026 will essentially stay unchanged from 2025.

The distinction between residential and commercial construction trends is one factor contributing to this outlook. 

In many markets, nonresidential construction projects like industrial developments and infrastructure are still exhibiting some strength. At the same time, slower housing activity in a number of areas and higher interest rates are weakening residential construction.

CNH anticipates that rather than experiencing significant growth, its construction equipment net sales in 2026 will essentially stay at the same level as in 2025 due to this mixed environment.

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