CNH Industrial Reports Fall in Construction Equipment Sales As Partnership Talks Continue For 2026

The used construction equipment market is under pressure in 2026, and now the numbers from major manufacturers are beginning to confirm what dealers and contractors have been feeling on the ground. CNH Industrial, the parent company of CASE Construction Equipment and New Holland Construction, announced a significant decline in sales and earnings for its construction segment in the first quarter of 2026.

The drop in revenue didn’t come as a complete surprise, considering the current market conditions. But the eye-catcher was something else. CNH’s management is still actively looking for partners for its construction business. That’s a major indicator of where the industry is likely headed in the next year or two.

Construction Equipment Sales Down 3% in Q1 2026

CNH Industrial’s global net sales for the construction equipment segment were $574 million in Q1 2026, a decrease of 3% compared to the same period in the prior year. The company also reported an adjusted operating loss of $28 million for the quarter, a sharp change from prior performance.

A number of factors led to the weaker result. The main drag was lower equipment sales volumes in North and South America. And then, of course, there were rising tariff costs, rising labour costs and increased marketing spend. Higher machine selling prices helped partially offset some of the losses, but not enough to fully absorb the impact of slower demand.

This is becoming a pattern throughout the industry. Manufacturers are holding prices to protect margins, but buyers are taking longer to commit, especially in heavy construction equipment. High financing costs, uncertain project pipelines and the days of rapid equipment turnover from the post-pandemic boom seem a long way off now.

Case & New Holland Are Charting A Different Market

CNH Industrial is a major equipment brand for CNH Industrial with two prominent brands: CASE Construction Equipment and New Holland Construction. The two have strong dealer networks and established customer bases but the market they are selling into today is very different from the one they thrived in a few years ago.

North American contractors are facing tighter operating budgets, higher financing costs and less certainty about project schedules. South American markets are struggling with their own economic headwinds. “It’s getting harder for brands that have good reputations to drive volume in this environment.

CNH Still Seeking Construction Business Partner

The most closely watched part of the earnings discussion for CNH in the first quarter was CEO Gerrit Marx confirming that the company is still in active discussions with potential partners for its construction equipment business.

CNH had raised that possibility earlier in its annual earnings call. Now leadership is saying those talks are ongoing. “The goal is to beef up the construction equipment lineup and also improve the machines sold under the New Holland Construction brand to ag dealers, said Marx.

What struck me was the timeline. Marx said the company might get a better feel for where the construction business is going sometime in the second half of 2026, or maybe early 2027. Nothing will happen overnight, but the signal is clear that CNH is thinking seriously about how to stay competitive in a segment dominated by Caterpillar, Komatsu, Volvo and Deere.

Manufacturers across the board are feeling the pinch of rising costs

The equipment industry is experiencing rising operational costs across the board and CNH’s results more clearly highlight that reality. The company said the quarter’s pressures included higher tariffs, inflation in wages and marketing costs.

These are not CNH-specific issues. The same mix of factors is a challenge for many equipment makers across the globe. Skilled labor is still difficult to find and costly to retain. When sales volume is already under pressure, even small tariffs can quickly eat into margins.

These cost pressures at the manufacturer level tend to trickle down for dealers. When OEMs tighten supply or change their pricing, it impacts what inventory is available, when, and at what price.

Agricultural Equipment Held Up Slightly Better

Construction equipment struggled but CNH Industrial’s agricultural equipment business recorded net sales of $2.6 billion for the quarter, up 1% year-over-year. However, adjusted agriculture segment earnings still plummeted, down 81% to $27 million.

So even where the volume of sales held up, profitability didn’t. The agriculture business faced many of the same headwinds: lower volumes in North and South America, higher tariffs and rising operating costs. Better pricing helped, but only a little.

What this means to contractors and dealers

CNH Industrial’s Q1 results are a clear representation of where the wider used construction equipment market is at right now. Demand has cooled off from its peak. Buyers are more discerning. Manufacturers want to preserve their margins, not chase volume.

The continuing search for partners is just another element of the unknown, or the opportunity, depending on your point of view. If CNH can find the right partner for its construction business, it could drastically alter dealer relationships and product availability. If the process is extended to 2027, the status quo continues.

The practical takeaway for contractors and dealers is simple: The next year or two will be about making smart, selective decisions on purchases, on inventory, and on timing.

If you are looking for quality used Caterpillar, Komatsu, or Volvo construction equipment, MY-Equipment has a regularly updated inventory of machines ready for immediate sale. Browse our current stock or contact our team for availability and pricing.

Don’t forget to subscribe to our YouTube channel for more equipment offers and insights into the industry.