CNH

CNH Industrial is a global agricultural and construction equipment maker (Case IH, New Holland) currently in the trough of a sharp farm-equipment downcycle. The numbers show the pressure plainly: revenue fell 10.0% to $15.3B — down from the FY2023 peak of $22.1B — and net income dropped 59.1% to $510M, cutting diluted EPS to $0.41 and net margin to just 3.3% (ROE 6.6%). Management cut the dividend 45.1% to $333M, a clear signal of cyclical caution. This is what the bottom of an ag-machinery cycle looks like as dealers de-stock and farm incomes soften.

There are real offsets. Operating cash flow actually rose 29.0% to $2.54B, well above reported net income, showing the underlying machine is still generating cash through the downturn. The company kept investing through the cycle (R&D up 10.9% to $1.02B) to defend its precision-agriculture and autonomy roadmap, and the equity base held flat. The reported 4.49x liabilities/equity looks heavy but largely reflects the captive financial-services arm rather than pure industrial leverage.