CNH Industrial flags weak 2026 profit on sluggish farm machinery demand

By Abhinav Parmar

Feb 17 (Reuters) - Global manufacturer of farm and construction equipment CNH Industrial CNH.N on Tuesday forecast full-year profit below Wall Street estimates, as low crop prices, high input costs and shifting trade policies weigh on demand for agricultural machinery.

The Basildon, UK-based company said it expects retail demand in 2026 to fall about 5% from 2025 levels and plans to keep production subdued as it works with dealers to bring down excess inventory across its network.

Farm equipment makers have scaled back factory output amid persistently weak demand for new machinery, as softer crop prices and rising costs prompt farmers to delay large purchases.

CNH expects full-year adjusted profit to be between $0.35 and $0.45 per share, below analysts' estimates of $0.54 per share, according to data compiled by LSEG.

Institutional investors appear more aligned with the company’s 2026 outlook than Wall Street analysts and would likely view any weakness in the stock as a buying opportunity, Oppenheimer analyst Kristen Owen said in a note.

Farmers in the U.S. are facing another season of low prices, high costs and difficult decisions about how, or whether, to keep operating, as abundant grain supplies weigh on markets.

"Commodity prices remain low, and as the single largest contributor to farm income, it is hard for farmers to operate their farms, let alone purchase equipment," CEO Gerrit Marx said on a post-earnings conference call.

The U.S. Department of Agriculture earlier this month forecast net farm income, a broad measure of profitability in the agricultural economy, to fall 0.7% to $153.4 billion in 2026 from a year ago.

"Agricultural equipment industry demand is expected to resume growth in 2027," CNH said in its earnings report.

The company reported fourth-quarter revenue of $5.16 billion, beating analysts' estimates of $4.61 billion.

On an adjusted basis, it reported a profit of 19 cents per share for the quarter ended December 31, compared with estimates of 10 cents per share.