{"id":43515,"date":"2025-06-18T09:43:40","date_gmt":"2025-06-18T04:43:40","guid":{"rendered":"https:\/\/www.my-equipment.com\/blog\/?p=43515"},"modified":"2025-06-23T10:23:14","modified_gmt":"2025-06-23T05:23:14","slug":"cnh-industrial-q1-2025-sales-drop-by-22-in-q1","status":"publish","type":"post","link":"https:\/\/www.my-equipment.com\/blog\/2025\/06\/cnh-industrial-q1-2025-sales-drop-by-22-in-q1\/","title":{"rendered":"CNH Industrial Q1 2025: Sales Drop By 22% In Q1"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The construction equipment market got off to a bumpy start in 2025. In its Q1 earnings report, CNH Industrial said <strong>global construction equipment<\/strong> revenue fell 22% year-over-year to $591 million.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That sharp drop came due to the collapsing demand and an industry \u201cdestocking\u201d cycle. Margins took a hit too: first-quarter gross profit in construction dropped from 17.4% a year earlier to 14.9% and adjusted EBIT plunged 73% (to just $14 million).\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In plain terms, builders and dealers simply aren\u2019t ordering as many new machines, and that is squeezing profits across the board.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.my-equipment.com\/blog\/2025\/06\/cnh-industrial-q1-2025-sales-drop-by-22-in-q1\/#Why_the_drop_Demand_slump_and_dealer_destocking\" >Why the drop? Demand slump and dealer destocking<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.my-equipment.com\/blog\/2025\/06\/cnh-industrial-q1-2025-sales-drop-by-22-in-q1\/#Impact_on_the_used_equipment_market\" >Impact on the used equipment market<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.my-equipment.com\/blog\/2025\/06\/cnh-industrial-q1-2025-sales-drop-by-22-in-q1\/#Is_there_any_impact_on_trade_tariffs_and_global_uncertainty\" >Is there any impact on trade tariffs and global uncertainty<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.my-equipment.com\/blog\/2025\/06\/cnh-industrial-q1-2025-sales-drop-by-22-in-q1\/#Is_relief_coming_in_2025\" >Is relief coming in 2025?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.my-equipment.com\/blog\/2025\/06\/cnh-industrial-q1-2025-sales-drop-by-22-in-q1\/#Key_takeaways_for_dealers_and_contractors\" >Key takeaways for dealers and contractors<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.my-equipment.com\/blog\/2025\/06\/cnh-industrial-q1-2025-sales-drop-by-22-in-q1\/#Inventory_drain\" >Inventory drain<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.my-equipment.com\/blog\/2025\/06\/cnh-industrial-q1-2025-sales-drop-by-22-in-q1\/#Tariff_watch\" >Tariff watch<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.my-equipment.com\/blog\/2025\/06\/cnh-industrial-q1-2025-sales-drop-by-22-in-q1\/#Used_equipment_market\" >Used equipment market<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.my-equipment.com\/blog\/2025\/06\/cnh-industrial-q1-2025-sales-drop-by-22-in-q1\/#Dont_forget_to_subscribe_to_our_YouTube_channel_for_more_equipment_offers_and_insights_into_the_industry\" >Don\u2019t forget to subscribe to our YouTube channel for more equipment offers and insights into the industry.\u00a0<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Why_the_drop_Demand_slump_and_dealer_destocking\"><\/span><b>Why the drop? Demand slump and dealer destocking<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Several factors are converging to cool equipment sales. On the demand side, the data point to weaker construction activity worldwide.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">CNH noted that in <strong>Q1 heavy construction equipment<\/strong> volumes were flat (up 2% globally), while \u201clight\u201d equipment volumes fell 6%. North America, the most important market for many dealers, saw an 11% decline in construction equipment demand.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Europe, the Middle East and Africa were down 9%, South America 1%, though Asia Pacific grew about 7%.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In short, aside from pockets of growth abroad, the near-term outlook is dimmer: CNH now expects construction equipment sales to be lower in 2025 than in 2024, even after factoring in planned cuts to production.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On the supply side, manufacturers and dealers are finally cutting production to clear the logjam of inventory.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">After a post-pandemic boom left lots overstocked, CNH and others have slowed plant output (some cutting shifts or freezing hiring) to let the market absorb excess machines.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Overall, CNH attributed the 22% sales decline to \u201clower shipment volumes driven by the market decline\u201d.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In other words, fewer orders were placed and filled in Q1. This hit spread through the profit chain: weaker pricing and volume meant EBIT margins in construction tumbled from 6.7% to 2.4%.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Impact_on_the_used_equipment_market\"><\/span><b>Impact on the used equipment market<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">For used equipment dealers and contractors, a slump in new sales usually means one of two things, either more gently <\/span><a href=\"https:\/\/www.my-equipment.com\/\"><b>used construction machinery<\/b><\/a><span style=\"font-weight: 400;\"> may come to market as firms delay upgrades, or prices may slide as buyers hold off.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Recent industry reports suggest it\u2019s a bit of both. Sandhills data show used construction-equipment asking and auction prices drifting down in many segments as inventory levels remain elevated.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At the same time, there is still steady demand for high-quality, late-model machines.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In practice, this means buyers are picky, older, high-hour units may sit on the market longer or need price cuts, while relatively new machines (with low hours and attachments) tend to sell faster.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Sellers should price accordingly. Monitor reports advise keeping an eye on economic and policy changes (like tariffs or commodity swings) that could affect demand \u2013 things like these \u201cwere reasonable six months ago, but may no longer be competitive\u201d.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_there_any_impact_on_trade_tariffs_and_global_uncertainty\"><\/span><b>Is there any impact on trade tariffs and global uncertainty<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">One big projection is geopolitical trade uncertainty. In its call, CNH warned that any ramp-up or expansion of tariffs <strong>(for example, those announced by the U.S. on European imports)<\/strong> could change the outlook materially.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The company is modeling scenarios where current tariffs remain all year, or even increase as of mid-2025.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This has dealers on edge in North America, where CNH\u2019s brands are built, because higher costs may arrive without warning.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To mitigate, CNH said it was \u201csharing the tariff cost impact with our supply base\u201d and even adjusting pricing on new orders in North America.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For U.S. dealers and contractors, the takeaway is that equipment already carries premiums from recent tariffs, so any further hikes could squeeze budgets or push them into the used market.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_relief_coming_in_2025\"><\/span><b>Is relief coming in 2025?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Interestingly, not all the signs are gloomy. Some industry analysts say late 2025 could see a rebalancing. The Federal Reserve has started cutting interest rates, which will gradually reduce financing costs.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Federal infrastructure spending (from the 2021 IIJA program) is still ramping up, promising plenty of road and building projects that will need equipment.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, CNH itself is bracing for a down year. The company\u2019s outlook calls for 2025 construction sales to drop an additional 4\u201315% from 2024, depending on how tariffs and end markets evolve.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">They plan to keep production low and continue cost cuts to protect margins. For dealers, that means new-gear availability will be deliberately limited (which could make the ones on hand more valuable).\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It also means CNH is likely to keep working with dealer networks, supporting promotions, handling \u201creciprocated information\u201d and training to sell through older stock.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Key_takeaways_for_dealers_and_contractors\"><\/span><b>Key takeaways for dealers and contractors<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Q1 Results: CNH\u2019s construction segment saw a sharp slowdown, 22% sales drop year-on-year. If you sell or buy CNH equipment, expect fewer new units hitting dealers and more aggressive pricing on existing stock.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Inventory_drain\"><\/span><b>Inventory drain<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Dealers have been reducing their backlogs. CNH CEO Marx emphasized efforts to clear aged stock and tighten inventory. Contractors should still find deals on end-of-line 2024 models as dealers seek to make room.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Tariff_watch\"><\/span><b>Tariff watch<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Ongoing trade tensions could reshape pricing and availability. Both sellers and buyers should stay alert on tariff news, as impacts may show up suddenly in summer 2025.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Used_equipment_market\"><\/span><b>Used equipment market<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The used-equipment market is mixed. Look for price pressure on older used machines and relatively stable values on late-model, low-hour units. Financing terms and warranties are key selling points as buyers compare with new-equipment offers.<\/span><\/p>\n<h3 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"Dont_forget_to_subscribe_to_our_YouTube_channel_for_more_equipment_offers_and_insights_into_the_industry\"><\/span><strong>Don\u2019t forget to subscribe to our YouTube channel for more equipment offers and insights into the industry.\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><center><iframe loading=\"lazy\" title=\"YouTube video player\" src=\"https:\/\/www.youtube.com\/embed\/Nni3IEZSDA8?si=CS9_zGu-m450s0I5\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/center><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The construction equipment market got off to a bumpy start in 2025. In its Q1 &hellip; <a href=\"https:\/\/www.my-equipment.com\/blog\/2025\/06\/cnh-industrial-q1-2025-sales-drop-by-22-in-q1\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;CNH Industrial Q1 2025: Sales Drop By 22% In Q1&#8221;<\/span><\/a><\/p>\n","protected":false},"author":3,"featured_media":43516,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1155],"tags":[1883,1058],"class_list":["post-43515","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-feature","tag-q1-heavy-construction-equipment","tag-used-machines"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>CNH Industrial Q1 2025: Sales Drop By 22% In Q1 - MY-Equipment Blog<\/title>\n<meta name=\"description\" content=\"CNH has just revealed its Q1 sales drop which is significantly reported as 22%. 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