Government borrowing soars to second highest level on record
Official figures show the cost of public services and interest payments on government debt are rising faster than the increases in income tax and national insurance contributions.
It means government borrowing reached the second-highest level last month since records began in 1993, according to the data from the Office for National Statistics.
June's borrowing figures - £20.684bn - were second only to the highs seen in the early days of the COVID-19 pandemic in 2020, when many workers were furloughed.
State borrowing was more than £6bn higher than the same month last year. But despite this latest rise, borrowing this year is in line with the March forecast from the independent forecasters at the Office for Budget Responsibility (OBR).
It's bad news for Chancellor Rachel Reeves, who has vowed to bring down government debt and balance the budget by 2030 as part of her self-imposed fiscal rules.
She's expected to increase taxes to meet the gap between spending and tax revenue.
Ms Reeves's deputy, the chief secretary to the Treasury, Darren Jones, said, "We are committed to tough fiscal rules, so we do not borrow for day-to-day spending and get debt down as a share of our economy."
"This commitment to economic stability means we can get on with investing in Britain's renewal".
This breaking news story is being updated and more details will be published shortly.
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LyondellBasell reports second quarter 2025 earnings
HOUSTON and LONDON, Aug. 01, 2025 (GLOBE NEWSWIRE) -- Net income: $115 million, $202 million excluding identified items1 Diluted earnings per share: $0.34 per share; $0.62 per share excluding identified items EBITDA: $606 million, $715 million excluding identified items Cash from operating activities: $351 million Returned $536 million to shareholders through dividends and share repurchases Continued to execute on strategy while navigating the cycle with operational and financial discipline: Announced the planned sale of select European assets to further optimize the business portfolio Deferring construction of Flex-2 project to preserve capital during the cycle downturn Cash Improvement Plan on track to achieve an increased run-rate of $600 million dollars for 2025 while expanding into 2026 with an incremental target of $500 million LyondellBasell Industries (NYSE: LYB) (the "company") today announced results for the second quarter 2025. Comparisons with the prior quarter and second quarter 2024 are available in the following table: Table 1 - Earnings Summary Three Months Ended Six Months Ended June 30,2025 March 31,2025 June 30,2024 June 30,2025 June 30,2024 Sales and other operating revenues $ 7,658 $ 7,677 $ 8,678 $ 15,335 $ 16,982 Net income 115 177 924 292 1,397 Diluted earnings per share 0.34 0.54 2.82 0.88 4.25 Weighted average diluted share count 322 324 326 323 326 EBITDA1 606 655 1,643 1,261 2,689 Net income excluding identified items $ 202 $ 110 $ 724 $ 312 $ 1,157 Diluted earnings per share excluding identified items 0.62 0.33 2.20 0.95 3.52 Gain on sale of business, pre-tax — — (293 ) — (293 ) Asset write-downs, pre-tax 32 — — 32 — Cash Improvement Plan costs, pre-tax 20 — — 20 — Dutch PO joint venture exit costs, pre-tax — 117 — 117 — European transaction costs, pre-tax 10 — — 10 — Loss (income) from discontinued operations, pre-tax 47 (196 ) 26 (149 ) (26 ) EBITDA excluding identified items 715 576 1,330 1,291 2,293 (1) See 'Information Related to Financial Measures' for a discussion of the company's use of non-GAAP financial measures and Tables 2-5 for reconciliations or calculations of these financial measures. 'Identified items' include adjustments for lower of cost or market ("LCM"), gain on sale of business, asset write-downs in excess of $10 million in aggregate for the period, Cash Improvement Plan costs, Dutch PO joint venture exit costs, European transaction costs and discontinued operations. 'As we advance our three-pillar strategy, LYB continues to grow and upgrade our core businesses through disciplined capital allocation that extends our competitive advantage. We are expanding our Cash Improvement Plan to help navigate a prolonged cyclical downturn. Our Value Enhancement Program and portfolio optimization actions remain on track to reap the benefits from a cycle recovery," said Peter Vanacker, LyondellBasell chief executive officer. "We are encouraged by recent improvements in pricing and demand for polyolefins, and we remain cautiously optimistic regarding policy developments to address excess capacity in China and revitalize the European chemical industry. LYB is well-positioned to capture these market tailwinds and create durable, long-term value for our shareholders through consistent execution of our strategy.' SECOND QUARTER 2025 RESULTSThe company reported net income for the second quarter 2025 of $115 million, or $0.34 per diluted share. During the quarter, the company recognized identified items of $87 million, net of tax. These items, which impacted second quarter earnings by $0.28 per share, related to asset write-downs, transaction costs, the Cash Improvement Plan, and discontinued operations. Second quarter 2025 EBITDA was $606 million, or $715 million excluding identified items. In North America, the successful completion of turnarounds at the company's Channelview complex enabled higher operating rates that supported a sequential improvement in integrated polyethylene volumes and margins. Domestic demand for polyethylene and polypropylene was seasonally stronger, led by solid demand from consumer packaging, healthcare, and building and construction as well as increased demand from infrastructure markets. A June increase in polyethylene contract prices is providing momentum for third quarter profitability. In Europe, lower feedstock costs helped improve integrated polyethylene margins while polyolefins volumes benefited from increased seasonal demand. Intermediate Chemicals profitability improved with stronger styrene margins due to lower benzene costs and price support from second quarter industry outages. Oxyfuels margins fell as lower crude oil prices limited the typical seasonal uplift from the summer driving season. During the second quarter, global markets began to adapt to trade volatility, contributing to a more stable operating environment across several product chains. LyondellBasell generated $351 million in cash from operating activities during the second quarter. The company maintained its balanced approach to capital allocation by investing $539 million in capital expenditures and returning $536 million to shareholders through dividends and share repurchases. At the end of the quarter, LYB held $1.7 billion in cash and cash equivalents and maintained $6.4 billion in available liquidity. STRATEGY HIGHLIGHTSLYB continued to execute on its three-pillar strategy by taking decisive actions to reshape its asset base and enhance long-term value creation. The planned sale of four European assets repositions LYB to better serve global markets from a more cost-advantaged asset base. To better align investment levels with cash generation, LYB will delay construction of the Flex-2 project. The Cash Improvement Plan has been expanded and is targeting at least $1.1 billion in cash improvements over 2025 and 2026 to protect the balance sheet and support shareholder returns. The company remains firmly committed to a balanced approach to capital allocation to ensure safe and reliable operations, disciplined growth and shareholder returns while maintaining an investment-grade balance sheet. OUTLOOKIn the third quarter, the company expects North American integrated polyethylene margins to improve due to the completion of planned maintenance in April and increased prices supported by solid domestic demand and stronger export volumes. In Europe, steady seasonal demand and favorable feedstock costs are expected to continue. Ongoing capacity rationalizations across the region should help to balance regional supply and demand. Oxyfuels margins are expected to remain low for the remainder of the summer season. LYB continues to carefully evaluate potential risks and opportunities associated with evolving tariffs and global trade flows. To align with global demand and the company's planned maintenance, LYB expects third quarter operating rates of 85% for North American olefins and polyolefins (O&P) assets, 75% for European O&P assets and 80% for Intermediates & Derivatives (I&D) assets. CONFERENCE CALLLYB will host a conference call August 1 at 11 a.m. ET. Participants on the call will include Chief Executive Officer Peter Vanacker, Executive Vice President and Chief Financial Officer Agustin Izquierdo, Executive Vice President of Global Olefins and Polyolefins Kim Foley, Executive Vice President of Intermediates and Derivatives Aaron Ledet, Executive Vice President of Advanced Polymer Solutions Torkel Rhenman and Head of Investor Relations David Kinney. For event access, the toll-free dial-in number is 1-877-407-8029, international dial-in number is 201-689-8029 or click the CallMe link. The slides and webcast that accompany the call will be available at A replay of the call will be available from 1 p.m. ET August 1 until September 1, 2025. The replay toll-free dial-in numbers are 1-877-660-6853 and 201-612-7415. The access ID for each is 13746206. ABOUT LYONDELLBASELLWe are LyondellBasell (NYSE: LYB) – a leader in the global chemical industry creating solutions for everyday sustainable living. Through advanced technology and focused investments, we are enabling a circular and low carbon economy. Across all we do, we aim to unlock value for our customers, investors and society. As one of the world's largest producers of polymers and a leader in polyolefin technologies, we develop, manufacture and market high-quality and innovative products for applications ranging from sustainable transportation and food safety to clean water and quality healthcare. For more information, please visit or follow @LyondellBasell on LinkedIn. FORWARD-LOOKING STATEMENTSThe statements in this release relating to matters that are not historical facts are forward-looking statements. These forward-looking statements are based upon assumptions of management of LyondellBasell which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. When used in this release, the words 'estimate,' 'believe,' 'continue,' 'could,' 'intend,' 'may,' 'plan,' 'potential,' 'predict,' 'should,' 'will,' 'expect,' and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Actual results could differ materially based on factors including, but not limited to, market conditions, the business cyclicality of the chemical and polymers industries; the availability, cost and price volatility of raw materials and utilities, particularly the cost of oil, natural gas, and associated natural gas liquids; our ability to successfully implement initiatives identified pursuant to our Value Enhancement Program and generate anticipated earnings; competitive product and pricing pressures; labor conditions; our ability to attract and retain key personnel; operating interruptions (including leaks, explosions, fires, weather-related incidents, mechanical failure, unscheduled downtime, supplier disruptions, labor shortages, strikes, work stoppages or other labor difficulties, transportation interruptions, spills and releases and other environmental risks); the supply/demand balances for our and our joint ventures' products, and the related effects of industry production capacities and operating rates; our ability to manage costs; future financial and operating results; our ability to align our assets and grow and upgrade our core, including completing the proposed sale of certain European assets; our ability to reduce our fixed costs and increase cash flow; legal and environmental proceedings; tax rulings, consequences or proceedings; the impacts of tariffs and trade disruptions; technological developments, and our ability to develop new products and process technologies; our ability to meet our sustainability goals, including the ability to operate safely, increase production of recycled and renewable-based polymers to meet our targets and forecasts, and reduce our emissions and achieve net zero emissions by the time set in our goals; our ability to procure energy from renewable sources; our ability to build a profitable Circular & Low Carbon Solutions business; potential governmental regulatory actions; political unrest and terrorist acts; risks and uncertainties posed by international operations, including foreign currency fluctuations; and our ability to comply with debt covenants and to repay our debt. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the 'Risk Factors' section of our Form 10-K for the year ended December 31, 2024, which can be found at on the Investors page and on the Securities and Exchange Commission's website at There is no assurance that any of the actions, events or results of the forward-looking statements will occur, or if any of them do, what impact they will have on our results of operations or financial condition. Forward-looking statements speak only as of the date they were made and are based on the estimates and opinions of management of LyondellBasell at the time the statements are made. LyondellBasell does not assume any obligation to update forward-looking statements should circumstances or management's estimates or opinions change, except as required by law. This release contains time sensitive information that is accurate only as of the date hereof. Information contained in this release is unaudited and is subject to change. We undertake no obligation to update the information presented herein except as required by law. INFORMATION RELATED TO FINANCIAL MEASURESThis release makes reference to certain non-GAAP financial measures as defined in Regulation G of the U.S. Securities Exchange Act of 1934, as amended. We report our financial results in accordance with U.S. generally accepted accounting principles, but believe that certain non-GAAP financial measures, such as EBITDA, and EBITDA, net income and diluted EPS exclusive of identified items provide useful supplemental information to investors regarding the underlying business trends and performance of the company's ongoing operations and are useful for period-over-period comparisons of such operations. Non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the financial measures prepared in accordance with GAAP. We calculate EBITDA as net income (loss) plus interest expense (net), provision for (benefit from) income taxes, and depreciation and amortization. EBITDA should not be considered an alternative to profit or operating profit for any period as an indicator of our performance, or as an alternative to operating cash flows as a measure of our liquidity. We also present EBITDA, net income and diluted EPS exclusive of identified items. Identified items include adjustments for 'lower of cost or market" ('LCM'), gain on sale of business, asset write-downs in excess of $10 million in aggregate for the period, Cash Improvement Plan costs, Dutch PO joint venture exit costs, European transaction costs and discontinued operations. Asset write-downs include impairments of goodwill, impairments of long-lived assets, a write-down of a related party loan receivable and a fourth quarter 2024 deferred tax valuation allowance for one of our Chinese joint ventures recognized in Income (loss) from equity investments. Our inventories are stated at the lower of cost or market. Cost is determined using the last-in, first-out ('LIFO') inventory valuation methodology, which means that the most recently incurred costs are charged to cost of sales and inventories are valued at the earliest acquisition costs. Fluctuation in the prices of crude oil, natural gas and correlated products from period to period may result in the recognition of charges to adjust the value of inventory to the lower of cost or market in periods of falling prices and the reversal of those charges in subsequent interim periods, within the same fiscal year as the charge, as market prices recover. A gain or loss on sale of a business is calculated as the consideration received from the sale less its carrying value. Property, plant and equipment are recorded at historical costs. If it is determined that an asset or asset group's undiscounted future cash flows will not be sufficient to recover the carrying amount, an impairment charge is recognized to write the asset down to its estimated fair value. Goodwill is tested for impairment annually in the fourth quarter or whenever events or changes in circumstances indicate that the fair value of a reporting unit with goodwill is below its carrying amount. If it is determined that the carrying value of the reporting unit including goodwill exceeds its fair value, an impairment charge is recognized. We assess our equity investments for impairment whenever events or changes in circumstances indicate that the carrying amount of the investment may not be recoverable. If the decline in value is considered to be other than temporary the investment is written down to its estimated fair value. Valuation allowances are provided against deferred tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized. In June 2025, we announced plans to sell select olefins & polyolefins assets and the associated business in Europe, resulting in selling expenses, separation costs and employee-related charges (collectively referred to as "transaction costs"). In April 2025, the Company announced the Cash Improvement Plan, focused on strengthening financial performance, which resulted in employee-related charges across all segments. In March 2025, we announced plans to permanently close our Dutch PO joint venture asset, resulting in the recognition of shutdown-related costs. In February 2025, we ceased business operations at our Houston refinery. Accordingly, our refining business, previously disclosed as the Refining segment, is reported as a discontinued operation. These non-GAAP financial measures as presented herein, may not be comparable to similarly titled measures reported by other companies due to differences in the way the measures are calculated. In addition, we include calculations for certain other financial measures to facilitate understanding. This release contains time sensitive information that is accurate only as of the time hereof. Information contained in this release is unaudited and subject to change. LyondellBasell undertakes no obligation to update the information presented herein except to the extent required by law. Additional operating and financial information may be found on our website at Source: LyondellBasell Industries Investor Contact: David Kinney +1 713-309-7141Media Contact: Nick Facchin +1 713-309-4791 Table 2 - Reconciliations of Net Income to Net Income Excluding Identified Items and to EBITDA Including and Excluding Identified Items Three Months Ended Six Months Ended Millions of U.S. dollars June 30,2025 March 31,2025 June 30,2024 June 30,2025 June 30,2024 Net income $ 115 $ 177 $ 924 $ 292 $ 1,397 Identified items less: Gain on sale of business, pre-tax(a) — — (293 ) — (293 ) add: Asset write-downs, pre-tax(b) 32 — — 32 — add: Cash Improvement Plan costs, pre-tax(c) 20 — — 20 — add: Dutch PO joint venture exit costs, pre-tax(d) — 117 — 117 — add: European transaction costs, pre-tax(e) 10 — — 10 — less: Loss (income) from discontinued operations, pre-tax(f) 47 (196 ) 26 (149 ) (26 ) add: (Benefit from) provision for income taxes related to identified items (22 ) 12 67 (10 ) 79 Net income excluding identified items $ 202 $ 110 $ 724 $ 312 $ 1,157 Net income $ 115 $ 177 $ 924 $ 292 $ 1,397 Provision for income taxes 62 78 249 140 371 Depreciation and amortization 332 323 387 655 752 Interest expense, net 97 77 83 174 169 EBITDA 606 655 1,643 1,261 2,689 Identified items less: Gain on sale of business(a) — — (293 ) — (293 ) add: Asset write-down(b) 32 — — 32 — add: Cash Improvement Plan costs(c) 20 — — 20 — add: Dutch PO joint venture exit costs(d) — 117 . — 117 — add: European transaction costs(e) 10 — — 10 — less: EBITDA from discontinued operations(f) 47 (196 ) (20 ) (149 ) (103 ) EBITDA excluding identified items $ 715 $ 576 $ 1,330 $ 1,291 $ 2,293 (a) In 2024, we sold our U.S. Gulf Coast-based Ethylene Oxide and Derivatives ("EO&D") business, resulting in the recognition of a gain in our Intermediates & Derivatives ("I&D") segment.(b) Includes asset write-downs in excess of $10 million in aggregate for the period. The second quarter of 2025 includes a non-cash impairment of property, plant and equipment of $32 million related to the European assets classified as held for sale within our Olefins & Polyolefins – Europe, Asia & International ("O&P-EAI") segment.(c) In April 2025, the Company announced the Cash Improvement Plan, focused on strengthening financial performance, which resulted in employee-related charges across all segments.(d) In March 2025, we announced plans to permanently close our Dutch PO joint venture asset within the I&D segment, resulting in the recognition of shutdown-related costs.(e) In June 2025, we announced plans to sell select olefins & polyolefins assets and the associated business in Europe, resulting in selling expenses, separation costs and employee-related charges in our O&P-EAI segment.(f) In February 2025, we ceased business operations at our Houston refinery. Accordingly, our refining business, previously disclosed as the Refining segment, is reported as a discontinued operation. The related operating results of our refining business are reported as discontinued operations for all periods presented. Table 3 - Reconciliation of Diluted EPS to Diluted EPS Excluding Identified Items Three Months Ended Six Months Ended June 30,2025 March 31,2025 June 30,2024 June 30,2025 June 30,2024 Diluted earnings per share $ 0.34 $ 0.54 $ 2.82 $ 0.88 $ 4.25 Identified items less: Gain on sale of business — — (0.68 ) — (0.68 ) add: Asset write-downs(a) 0.07 — — 0.07 — add: Cash Improvement Plan costs 0.05 — — 0.05 — add: Dutch PO joint venture exit costs — 0.27 — 0.27 — add: European transaction costs 0.03 — — 0.03 — less: Loss (income) from discontinued operations 0.13 (0.48 ) 0.06 (0.35 ) (0.05 ) Diluted earnings per share excluding identified items $ 0.62 $ 0.33 $ 2.20 $ 0.95 $ 3.52 (a) Includes asset write-downs in excess of $10 million in aggregate for the period. Table 4 - Calculation of Cash and Liquid Investments and Total Liquidity Millions of U.S. dollars June 30, 2025 Cash and cash equivalents and restricted cash $ 1,704 Short-term investments — Cash and liquid investments 1,704 add: Availability under Senior Revolving Credit Facility 3,750 Availability under U.S. Receivables Facility 900 Total liquidity $ 6,354 Table 5 - Calculation of Dividends and Share Repurchases Three Months Ended Millions of U.S. dollars June 30, 2025 Dividends paid - common stock $ 445 Repurchase of Company ordinary shares 91 Dividends and share repurchases $ 536 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16 minutes ago
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CNH Industrial N.V. Reports Second Quarter 2025 Results
Second quarter consolidated revenues were $4.7 billion on lower industry demand Second quarter diluted EPS at $0.17 Results reflect continued execution of cost saving initiatives partially offsetting market headwinds Returned $0.3 billion to shareholders through dividends Full-year guidance reaffirmed Basildon, UK - August 1, 2025 - CNH Industrial N.V. (NYSE: CNH) today reported results for the three months ended June 30, 2025, with net income of $217 million and diluted earnings per share of $0.17 compared with net income of $404 million and diluted earnings per share of $0.32 for the three months ended June 30, 2024(1). Consolidated revenues were $4.71 billion (down 14% compared to Q2 2024), and net sales of Industrial Activities were $4.02 billion (down 16% compared to Q2 2024). Net cash provided by operating activities was $772 million, and Industrial free cash flow was $451 million in Q2 2025. 'While we continued to face challenging market conditions this quarter, the CNH team's resilience and dedication allowed us to navigate through them effectively and in line with our targets. We are focused on the strategic priorities that we outlined at our recent investor day to advance our operational improvements and the investments that deliver exceptional products and technology for our farmers and builders. We appreciate the support from our suppliers as we navigate uncertain trade waters, and from our dealer network that strives for unmatched customer service as we position CNH for long-term success. I am excited for the future of CNH and sharing the journey ahead with you.' Gerrit Marx, Chief Executive Officer 2025 Second Quarter Results (all amounts $ million, comparison vs Q2 2024 - unless otherwise stated) Please note that in this and in the following tables and commentary, prior periods have been revised to reflect an immaterial correction to the financial statements. See note 1 for further details. US-GAAP Q2 2025 Q2 2024(1) Change Change at c.c.(2) Consolidated revenues 4,711 5,488 (14)% (14)% of which Net sales of Industrial Activities 4,021 4,803 (16)% (16)% Net income 217 404 (46)% Diluted EPS $ 0.17 0.32 (0.15) Cash flow provided (used) by operating activities 772 379 +393 Cash and cash equivalents(3) 2,512 3,191 (679) Gross profit margin of Industrial Activities 20.6% 22.9% (230) bps NON-GAAP(3) Q2 2025 Q2 2024(1) Change Adjusted EBIT of Industrial Activities 224 502 (55)% Adjusted EBIT margin of Industrial Activities 5.6% 10.5% (490) bps Adjusted net income 216 451 (52)% Adjusted diluted EPS $ 0.17 0.35 (0.18) Free cash flow of Industrial Activities 451 140 +311 The decline in net sales of Industrial Activities was mainly due to lower shipments on decreased industry demand and continued dealer destocking. Adjusted net income was $216 million with adjusted diluted earnings per share of $0.17. In comparison, in Q2 2024, adjusted net income was $451 million with adjusted diluted earnings per share of $0.35. Income tax expense was $76 million ($95 million in Q2 2024), and the effective tax rate (ETR) was 27.6% (20.9% in Q2 2024) with an adjusted ETR(4) of 27.7% for the second quarter (21.0% in Q2 2024). Cash flow provided by operating activities in the quarter was $772 million ($379 million provided in Q2 2024). Free cash flow of Industrial Activities was $451 million, a year-over-year improvement of $311 million due to lower net change in working capital. Agriculture Q2 2025 Q2 2024(1) Change Change at c.c.(2) Net sales 3,248 3,913 (17)% (17)% Gross profit margin 21.8% 24.4% (260) bps Adjusted EBIT 263 502 (48)% Adjusted EBIT margin 8.1% 12.8% (470) bps In North America, industry volume was down 7% year-over-year in the second quarter for tractors under 140 HP and was down 37% for tractors over 140 HP; combines were down 23%. In Europe, Middle East and Africa (EMEA), tractor demand was down 7%, while combine demand was up 8%. South America tractor demand was up 4%, while combine demand was down 6%. Asia Pacific tractor demand was up 3%, but combine demand was down 42%. Agriculture net sales decreased in the quarter by 17% to $3.25 billion versus the same period of 2024, primarily due to lower shipment volumes on decreased industry demand and dealer destocking. Adjusted EBIT decreased to $263 million ($502 million in Q2 2024) driven by lower shipment volumes, partially offset by favorable net price realization and lower production, warranty and SG&A expenses. R&D investments accounted for 6.0% of sales (5.5% in Q2 2024). Adjusted EBIT margin was 8.1% (12.8% in Q2 2024). Construction Q2 2025 Q2 2024 Change Change at c.c.(2) Net sales 773 890 (13)% (12)% Gross profit margin 15.7% 16.5% (80) bps Adjusted EBIT 35 60 (42)% Adjusted EBIT margin 4.5% 6.7% (220) bps Global industry volume for construction equipment increased 3% year-over-year in the second quarter for Heavy construction equipment; Light construction equipment was down 2%. Aggregated demand decreased 4% in North America and South America, but increased 1% in EMEA and 3% in Asia Pacific. Construction net sales decreased in the quarter by 13% to $773 million, due to lower shipment volumes driven by the market decline in North America. Adjusted EBIT decreased to $35 million ($60 million in Q2 2024) as a result of lower shipment volumes, partially offset by favorable net price realization. Adjusted EBIT margin was 4.5% (6.7% in Q2 2024). Financial Services Q2 2025 Q2 2024 Change Change at c.c.(2) Revenues 685 687 —% +2% Net income 87 91 (4)% Equity at quarter-end 2,907 2,843 +64 Retail loan originations 2,740 2,864 (124) Revenues of Financial Services decreased by 0.3% as a result of the negative impact from currency translation and lower yields primarily in Brazil; partially offset by higher remarketing sales and favorable volumes in most regions. Net income was $87 million in the second quarter, a decrease of $4 million versus the same period of 2024, primarily due to increased risk costs in Brazil, and a higher effective tax rate due to a prior year Argentina inflation adjustment. This was partially offset by interest margin improvements and favorable volumes in most regions. The managed portfolio (including unconsolidated joint ventures) was $28.7 billion as of June 30, 2025 (of which retail was 69% and wholesale was 31%), up $0.2 billion compared to June 30, 2024 (down $0.3 billion on a constant currency basis). At June 30, 2025, the receivable balance greater than 30 days past due as a percentage of receivables was 3.9%, (2.5% as of June 30, 2024), mainly from higher delinquencies in Brazil. 2025 Outlook The Company continues to forecast that 2025 global industry retail sales will be lower in both the agriculture and construction equipment markets when compared to 2024. CNH is still focused on driving down excess channel inventory primarily by producing fewer units than the retail demand level, which will result in 2025 net sales being lower than in 2024. The lower production and sales levels will negatively impact our segment margin results. However, the Company's ongoing efforts to reduce its operating costs will partially mitigate the margin erosion. CNH is continuing its focus on product cost reductions through lean manufacturing principles and strategic sourcing. The Company is also carefully managing its SG&A and R&D expenses. In addition to the lower cyclical industry sales, the Company is navigating a changing global trade environment. The uncertainty of the U.S. trade policy, the reactions of trading partners, and the impact to our end customers may affect our forecast for the year. The Company is reaffirming its previous 2025 outlook: Agriculture segment net sales down between 12% and 20% year-over-year, including -1% of currency translation effects Agriculture segment adjusted EBIT margin between 7% and 9% Construction segment net sales down between 4% and 15% year-over-year, including -1% of currency translation effects Construction segment adjusted EBIT margin between 2% and 4% Free cash flow of Industrial Activities(6) between $100 million and $500 million Adjusted diluted EPS(6) between $0.50 to $0.70 Conference Call and Webcast Today, at 9:00 a.m. EDT, management will hold a conference call to present second quarter 2025 results to financial analysts and investors. The call can be followed live online or as a recording later at Results for the Six Months Ended June 30, 2025 (all amounts $ million, comparison vs YTD Q2 2024 - unless otherwise stated) US-GAAP YTD Q2 2025 YTD Q2 2024(1) Change Change at c.c.(2) Consolidated revenue 8,539 10,306 (17)% (15)% of which Net sales of Industrial Activities 7,193 8,934 (19)% (18)% Net income 349 773 (55)% Diluted EPS $ 0.27 0.61 (0.34) Cash flow provided (used) by operating activities 934 (515) +1,449 Cash and cash equivalents(3) 2,512 3,191 (679) Gross profit margin of Industrial Activities 19.9% 22.8% (290) bps NON-GAAP(3) YTD Q2 2025 YTD Q2 2024(1) Change Adjusted EBIT of Industrial Activities 325 874 (63)% Adjusted EBIT margin of Industrial Activities 4.5% 9.8% (530) bps Adjusted net income 348 839 (59)% Adjusted diluted EPS $ 0.27 0.66 (0.39) Free cash flow of Industrial Activities (116) (1,069) +953 Agriculture YTD Q2 2025 YTD Q2 2024 Change Change at c.c.(2) Net sales 5,829 7,286 (20)% (19)% Gross profit margin 21.0% 24.1% (310) bps Adjusted EBIT 402 890 (55)% Adjusted EBIT margin 6.9% 12.2% (530) bps Construction YTD Q2 2025 YTD Q2 2024 Change Change at c.c.(2) Net sales 1,364 1,648 (17)% (16)% Gross profit margin 15.3% 16.9% (160) bps Adjusted EBIT 49 111 (56)% Adjusted EBIT margin 3.6% 6.7% (310) bps Financial Services YTD Q2 2025 YTD Q2 2024 Change Change at c.c.(2) Revenue 1,336 1,372 (3)% +1% Net income 177 209 (15)% Notes CNH reports quarterly and annual consolidated financial results under U.S. GAAP and annual consolidated financial results under EU-IFRS. The tables and discussion related to the financial results of the Company and its segments shown in this press release are prepared in accordance with U.S. GAAP. In connection with the preparation of our condensed consolidated financial statements for the three months ended September 30, 2024, we had revised prior periods' results to reflect an immaterial correction for the accounting treatment related to highly inflationary accounting for our unconsolidated affiliate in Türkiye. CNH owns 37.5% of TürkTraktör ve Ziraat Makineleri A.S. ( and accounts for its ownership stake under the equity method. The functional currency of Türkiye-based TürkTraktör is the Turkish lira, and the Türkiye economy was deemed highly inflationary in 2022. CNH has determined that its translation criteria from Turkish lira into CNH's functional currency of U.S. dollars resulted in an overstatement of CNH's equity in income of unconsolidated subsidiaries and affiliates by $96 million in 2023 and by $67 million in the first half of 2024. We have revised our GAAP and Non-GAAP results for all prior periods presented herein. See the supplemental financial information section below for a reconciliation of adjustments to prior reported results. c.c. means at constant currency. Comparison vs. December 31, 2024. This item is a non-GAAP financial measure. Refer to the 'Non-GAAP Financial Information' section of this press release for information regarding non-GAAP financial measures. Refer to the specific table in the 'Other Supplemental Financial Information' section of this press release for the reconciliation between the non-GAAP financial measure and the most comparable GAAP financial measure. Certain financial information in this report has been presented by geographic area. Our geographical regions are: (a) North America; (b) Europe, Middle East and Africa ('EMEA'); (c) South America and (d) Asia Pacific. The geographic designations have the following meanings: North America: United States, Canada, and Mexico; Europe, Middle East, and Africa: member countries of the European Union, European Free Trade Association, the United Kingdom, Ukraine and Balkans, Russia, Türkiye, Uzbekistan, Pakistan, the African continent, and the Middle East; South America: Central and South America, and the Caribbean Islands; and Asia Pacific: Continental Asia (including the India subcontinent), Indonesia and Oceania. The Company is unable to provide this reconciliation without unreasonable effort due to the uncertainty and inherent difficulty of predicting the occurrence, the financial impact, and the periods in which the adjustments may be recognized. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could be material to future results. Adjusted EBIT of Industrial Activities under U.S. GAAP is defined as net income (loss) before the following items: Income taxes, Financial Services' results, Industrial Activities' interest expenses, net, foreign exchange gains/losses, finance and non-service component of pension and other post-employment benefit costs, restructuring expenses, and certain non-recurring items. In particular, non-recurring items are specifically disclosed items that management considers rare or discrete events that are infrequent in nature and not reflective of on-going operational activities. Adjusted EBIT Margin of Industrial Activities: is computed by dividing Adjusted EBIT of Industrial Activities by Net Sales of Industrial Activities. Adjusted Net Income (Loss): is defined as net income (loss), less restructuring charges and non-recurring items, after tax. Adjusted Diluted EPS: is computed by dividing Adjusted Net Income (loss) attributable to CNH Industrial N.V. by a weighted average number of common shares outstanding during the period that takes into consideration potential common shares outstanding deriving from the CNH share-based payment awards, when inclusion is not anti-dilutive. When we provide guidance for adjusted diluted EPS, we do not provide guidance on an earnings per share basis because the GAAP measure will include potentially significant items that have not yet occurred and are difficult to predict with reasonable certainty prior to year-end. Adjusted Income Tax (Expense) Benefit: is defined as income taxes less the tax effect of restructuring expenses and non-recurring items, and non-recurring tax charges or benefits. Adjusted Effective Tax Rate (Adjusted ETR): is computed by dividing a) adjusted income taxes by b) income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates, less restructuring expenses and non-recurring items. Net Cash (Debt) and Net Cash (Debt) of Industrial Activities: Net Cash (Debt) is defined as total debt less intersegment notes receivable, cash and cash equivalents, restricted cash, other current financial assets (primarily current securities, short-term deposits and investments towards high-credit rating counterparties) and derivative hedging debt. CNH provides the reconciliation of Net Cash (Debt) to Total (Debt), which is the most directly comparable measure included in the consolidated balance sheets. Due to different sources of cash flows used for the repayment of the debt between Industrial Activities and Financial Services (by cash from operations for Industrial Activities and by collection of financing receivables for Financial Services), management separately evaluates the cash flow performance of Industrial Activities using Net Cash (Debt) of Industrial Activities. Free Cash Flow of Industrial Activities (or Industrial Free Cash Flow): refers to Industrial Activities only, and is computed as consolidated cash flow from operating activities less: cash flow from operating activities of Financial Services; investments of Industrial Activities in assets sold under operating leases, property, plant and equipment and intangible assets; change in derivatives hedging debt of Industrial Activities; as well as other changes and intersegment eliminations. Change excl. FX or Constant Currency: CNH discusses the fluctuations in revenues on a constant currency basis by applying the prior year average exchange rates to current year's revenues expressed in local currency in order to eliminate the impact of foreign exchange rate fluctuations. The tables attached to this press release provide reconciliations of the non-GAAP measures used in this press release to the most directly comparable GAAP measures. Forward-looking Statements All statements other than statements of historical fact contained in this press release including competitive strengths; business strategy; future financial position or operating results; budgets; projections with respect to revenue, income, earnings (or loss) per share, capital expenditures, dividends, liquidity, capital structure or other financial items; costs; and plans and objectives of management regarding operations and products, are forward-looking statements. Forward-looking statements also include statements regarding the future performance of CNH and its subsidiaries on a standalone basis. These statements may include terminology such as "may", "will", "expect", "could", "should", "intend", "estimate", "anticipate", "believe", "outlook", "continue", "remain", "on track", "design", "target", "objective", "goal", "forecast", "projection", "prospects", "plan", or similar terminology. Forward-looking statements are not guarantees of future performance. Rather, they are based on current views and assumptions and involve known and unknown risks, uncertainties and other factors, many of which are outside our control and are difficult to predict. If any of these risks and uncertainties materialize (or they occur with a degree of severity that the Company is unable to predict) or other assumptions underlying any of the forward-looking statements prove to be incorrect, including any assumptions regarding strategic plans, the actual results or developments may differ materially from any future results or developments expressed or implied by the forward-looking statements. Factors, risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements include, among others: economic conditions in each of our markets, including the significant uncertainty caused by geopolitical events; production and supply chain disruptions, including industry capacity constraints, material availability, and global logistics delays and constraints; the many interrelated factors that affect consumer confidence and worldwide demand for capital goods and capital goods related products, changes in government policies regarding banking, monetary and fiscal policy; legislation, particularly pertaining to capital goods related issues such as agriculture, the environment, debt relief and subsidy program policies, trade, commerce and infrastructure development; government policies on international trade and investment, including sanctions, import quotas, capital controls, tariffs and other protective measures issued to promote national interests or address foreign competition, which in turn result or may result in retaliatory tariffs or other measures enacted by affected trade partners; volatility in international trade caused by the imposition of tariffs and the related impact on cost and prices, which could consequently affect demand of our products, sanctions, embargoes, and trade wars; actions of competitors in the various industries in which we compete; development and use of new technologies and technological difficulties; the interpretation of, or adoption of new, compliance requirements with respect to engine emissions, safety or other aspects of our products; labor relations; interest rates and currency exchange rates; inflation and deflation; energy prices; prices for agricultural commodities and material price increases; housing starts and other construction activity; our ability to obtain financing or to refinance existing debt; price pressure on new and used equipment; the resolution of pending litigation and investigations on a wide range of topics, including dealer and supplier litigation, intellectual property rights disputes, product warranty and defective product claims, and emissions and/or fuel economy regulatory and contractual issues; security breaches, cybersecurity attacks, technology failures, and other disruptions to the information technology infrastructure of CNH and its suppliers and dealers; security breaches with respect to our products; our pension plans and other post-employment obligations; political and civil unrest; volatility and deterioration of capital and financial markets, including pandemics (such as the COVID-19 pandemic), terrorist attacks in Europe and elsewhere; the remediation of a material weakness; our ability to realize the anticipated benefits from our business initiatives as part of our strategic plan; including targeted restructuring actions to optimize our cost structure and improve the efficiency of our operations; our failure to realize, or a delay in realizing, all of the anticipated benefits of our acquisitions, joint ventures, strategic alliances or divestitures and other similar risks and uncertainties, and our success in managing the risks involved in the foregoing. Forward-looking statements are based upon assumptions relating to the factors described in this press release, which are sometimes based upon estimates and data received from third parties. Such estimates and data are often revised. Actual results may differ materially from the forward-looking statements as a result of a number of risks and uncertainties, many of which are outside CNH's control. CNH expressly disclaims any intention or obligation to provide, update or revise any forward-looking statements in this announcement to reflect any change in expectations or any change in events, conditions or circumstances on which these forward-looking statements are based. Further information concerning CNH, including factors that potentially could materially affect its financial results, is included in the Company's reports and filings with the U.S. Securities and Exchange Commission ("SEC"). All future written and oral forward-looking statements by CNH or persons acting on behalf of CNH are expressly qualified in their entirety by the cautionary statements contained herein or referred to above. Additional factors could cause actual results to differ from those expressed or implied by the forward-looking statements included in the Company's filings with the SEC (including, but not limited to, the factors discussed in our 2024 Annual Report and subsequent quarterly reports). CONTACTS Media Inquiries – Laura Overall Tel +44 207 925 1964 or Rebecca Fabian Tel +1 312 515 2249 (Email mediarelations@ Investor Relations – Jason Omerza Tel +1 630 740 8079 or Federico Pavesi Tel +39 345 605 6218 (Email CNH INDUSTRIAL Statements of Operations for the Three and Six Months Ended June 30, 2025 and 2024(Unaudited, U.S. GAAP) Three Months Ended June 30, Six Months Ended June 30, ($ million, except per share data) 2025 2024(1) 2025 2024(1) Revenues Net sales $ 4,021 $ 4,803 $ 7,193 $ 8,934 Finance, interest and other income 690 685 1,346 1,372 Total Revenues 4,711 5,488 8,539 10,306 Costs and Expenses Cost of goods sold 3,192 3,702 5,761 6,897 Selling, general and administrative expenses 478 461 864 872 Research and development expenses 218 237 402 465 Restructuring expenses 5 51 11 82 Interest expense 360 418 722 812 Other, net 183 165 342 322 Total Costs and Expenses 4,436 5,034 8,102 9,450 Income (loss) of Consolidated Group before Income Taxes 275 454 437 856 Income tax (expense) benefit (76) (95) (123) (172) Equity in income (loss) of unconsolidated subsidiaries and affiliates 18 45 35 89 Net Income (loss) 217 404 349 773 Net income attributable to noncontrolling interests 4 5 5 6 Net Income (loss) attributable to CNH Industrial N.V. $ 213 $ 399 $ 344 $ 767 Earnings (loss) per share attributable to CNH Industrial N.V. Basic $ 0.17 $ 0.32 $ 0.28 $ 0.61 Diluted $ 0.17 $ 0.32 $ 0.27 $ 0.61 Weighted average shares outstanding(in millions) Basic 1,250 1,256 1,249 1,258 Diluted 1,253 1,260 1,253 1,267 Cash dividends declared per common share $ 0.250 $ 0.470 $ 0.250 $ 0.470 (1) In connection with the preparation of our condensed consolidated financial statements for the three months ended September 30, 2024, we had revised prior periods' results to reflect an immaterial correction for the accounting treatment related to highly inflationary accounting for our unconsolidated affiliate in Türkiye. See the supplemental financial information section below for a reconciliation of adjustments to prior reported results. These Consolidated Statements of Operations should be read in conjunction with the Company's Audited Consolidated Financial Statements and Notes for the Year Ended December 31, 2024 included in the Annual Report on Form 10-K. These Consolidated Statements of Operations represent the consolidation of all CNH Industrial N.V. subsidiaries. CNH INDUSTRIAL Balance Sheets as of June 30, 2025 and December 31, 2024(Unaudited, U.S. GAAP) ($ million) June 30, 2025 December 31, 2024 Assets Cash and cash equivalents $ 2,512 $ 3,191 Restricted cash 635 675 Financing receivables, net 23,387 23,085 Financial receivables from Iveco Group N.V. 263 168 Inventories, net 5,216 4,776 Property, plant and equipment, net and equipment under operating leases 3,704 3,402 Intangible assets, net 4,861 4,805 Other receivables and assets 3,109 2,831 Total Assets $ $43,687 $ 42,933 Liabilities and Equity Debt $ 27,408 $ 26,882 Financial payables to Iveco Group N.V. 69 62 Other payables and liabilities 8,376 8,221 Total Liabilities 35,853 35,165 Redeemable noncontrolling interest 55 55 Equity 7,779 7,713 Total Liabilities and Equity $ 43,687 $ 42,933 These Consolidated Balance Sheets should be read in conjunction with the Company's Audited Consolidated Financial Statements and Notes for the year ended December 31, 2024 included in the Annual Report on Form 10-K. These Consolidated Balance Sheets represent the consolidation of all CNH Industrial N.V. subsidiaries. CNH INDUSTRIAL Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024(Unaudited, U.S. GAAP) Six Months Ended June 30, ($ million) 2025 2024(1) Cash Flows from Operating Activities Net income (loss) $ 349 $ 773 Adjustments to reconcile net income to net cash provided (used) by operating activities: Depreciation and amortization expense excluding assets under operating leases 208 207 Depreciation and amortization expense of assets under operating leases 98 92 (Gain) loss from disposal of assets — 7 Undistributed (income) loss of unconsolidated subsidiaries 11 (12) Other non-cash items 183 130 Changes in operating assets and liabilities: Provisions (153) 105 Deferred income taxes (30) (24) Trade and financing receivables related to sales, net 443 (136) Inventories, net (51) (495) Trade payables (8) (638) Other assets and liabilities (116) (524) Net cash provided (used) by operating activities 934 (515) Cash Flows from Investing Activities Additions to retail receivables (3,701) (3,861) Collections of retail receivables 3,810 3,287 Proceeds from sale of assets, excluding assets under operating leases — 1 Expenditures for property, plant and equipment and intangible assets, excluding assets under operating leases (196) (206) Expenditures for assets under operating leases (320) (214) Other, net (215) 64 Net cash provided (used) by investing activities (622) (929) Cash Flows from Financing Activities Net increase (decrease) in debt (935) 415 Dividends paid (321) (594) Other (5) (641) Net cash provided (used) by financing activities (1,261) (820) Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash 230 (134) Net increase (decrease) in cash, cash equivalents and restricted cash (719) (2,398) Cash, cash equivalents and restricted cash, beginning of year 3,866 5,045 Cash, cash equivalents and restricted cash, end of period $ 3,147 $ 2,647 (1) In connection with the preparation of our condensed consolidated financial statements for the three months ended September 30, 2024, we had revised prior periods' results to reflect an immaterial correction for the accounting treatment related to highly inflationary accounting for our unconsolidated affiliate in Türkiye. See the supplemental financial information section below for a reconciliation of adjustments to prior reported results. These Consolidated Statements of Cash Flows should be read in conjunction with the Company's Audited Consolidated Financial Statements and Notes for the year ended December 31, 2024 included in the Annual Report on Form 10-K. These Consolidated Statements of Cash Flows represent the consolidation of all CNH Industrial N.V. subsidiaries. CNH INDUSTRIAL Statements of Operations for the Three Months Ended June 30, 2025 and 2024(Unaudited, U.S. GAAP) Three Months Ended June 30, 2025 Three Months Ended June 30, 2024 ($ million) Industrial Activities(1) Financial Services Eliminations Consolidated Industrial Activities(1)(2) Financial Services Eliminations Consolidated Revenues Net sales $ 4,021 $ — $ — $ 4,021 $ 4,803 $ — $ — $ 4,803 Finance, interest and other income 39 685 (34) (3) 690 29 687 (31) (3) 685 Total Revenues 4,060 685 (34) 4,711 4,832 687 (31) 5,488 Costs and Expenses Cost of goods sold 3,192 — — 3,192 3,702 — — 3,702 Selling, general and administrative expenses 364 114 — 478 374 87 — 461 Research and development expenses 218 — — 218 237 — — 237 Restructuring expenses 5 — — 5 51 — — 51 Interest expense 65 329 (34) (4) 360 75 374 (31) (4) 418 Other, net 49 134 — 183 49 116 — 165 Total Costs and Expenses 3,893 577 (34) 4,436 4,488 577 (31) 5,034 Income (loss) of Consolidated Group before Income Taxes 167 108 — 275 344 110 — 454 Income tax (expense) benefit (51) (25) — (76) (72) (23) — (95) Equity in income (loss) of unconsolidated subsidiaries and affiliates 14 4 — 18 41 4 — 45 Net Income (loss) $ 130 $ 87 $ — $ 217 $ 313 $ 91 $ — $ 404 (1) Industrial Activities represents the enterprise without Financial Services. Industrial Activities includes the Company's Agriculture and Construction segments, and other corporate assets, liabilities, revenues and expenses not reflected within Financial Services.(2) In connection with the preparation of our condensed consolidated financial statements for the three months ended September 30, 2024, we had revised prior periods' results to reflect an immaterial correction for the accounting treatment related to highly inflationary accounting for our unconsolidated affiliate in Türkiye. See the supplemental financial information section below for a reconciliation of adjustments to prior reported results.(3) Elimination of Financial Services' interest income earned from Industrial Activities.(4) Elimination of Industrial Activities' interest expense to Financial Services. CNH INDUSTRIAL Statements of Operations for the Six Months Ended June 30, 2025 and 2024(Unaudited, U.S. GAAP) Six Months Ended June 30, 2025 Six Months Ended June 30, 2024 ($ million) Industrial Activities(1) Financial Services Eliminations Consolidated Industrial Activities(1)(2) Financial Services Eliminations Consolidated Revenues Net sales $ 7,193 $ — $ — $ 7,193 $ 8,934 $ — $ — $ 8,934 Finance, interest and other income 69 1,336 (59) (3) 1,346 71 1,372 (71) (3) 1,372 Total Revenues 7,262 1,336 (59) 8,539 9,005 1,372 (71) 10,306 Costs and Expenses Cost of goods sold 5,761 — — 5,761 6,897 — — 6,897 Selling, general and administrative expenses 669 195 — 864 716 156 — 872 Research and development expenses 402 — — 402 465 — — 465 Restructuring expenses 11 — — 11 81 1 — 82 Interest expense 120 661 (59) (4) 722 149 734 (71) (4) 812 Other, net 83 259 — 342 83 239 — 322 Total Costs and Expenses 7,046 1,115 (59) 8,102 8,391 1,130 (71) 9,450 Income (loss) of Consolidated Group before Income Taxes 216 221 — 437 614 242 — 856 Income tax (expense) benefit (70) (53) — (123) (130) (42) — (172) Equity in income (loss) of unconsolidated subsidiaries and affiliates 26 9 — 35 80 9 — 89 Net Income (loss) $ 172 $ 177 $ — $ 349 $ 564 $ 209 $ — $ 773 (1) Industrial Activities represents the enterprise without Financial Services. Industrial Activities includes the Company's Agriculture and Construction segments, and other corporate assets, liabilities, revenues and expenses not reflected within Financial Services.(2) In connection with the preparation of our condensed consolidated financial statements for the three months ended September 30, 2024, we had revised prior periods' results to reflect an immaterial correction for the accounting treatment related to highly inflationary accounting for our unconsolidated affiliate in Türkiye. See the supplemental financial information section below for a reconciliation of adjustments to prior reported results.(3) Elimination of Financial Services' interest income earned from Industrial Activities.(4) Elimination of Industrial Activities' interest expense to Financial Services. CNH INDUSTRIAL Balance Sheets as of June 30, 2025 and December 31, 2024(Unaudited, U.S. GAAP) June 30, 2025 December 31, 2024 ($ million) Industrial Activities(1) Financial Services Eliminations Consolidated Industrial Activities(1) Financial Services Eliminations Consolidated Assets Cash and cash equivalents $ 2,106 $ 406 $ — $ 2,512 $ 2,332 $ 859 $ — $ 3,191 Restricted cash 95 540 — 635 89 586 — 675 Financing receivables, net 273 23,604 (490) (2) 23,387 218 23,528 (661) (2) 23,085 Financial receivables from Iveco Group N.V. 174 89 — 263 50 118 — 168 Inventories, net 5,155 61 — 5,216 4,713 63 — 4,776 Property, plant and equipment, net and equipment under operating leases 2,196 1,508 — 3,704 1,979 1,423 — 3,402 Intangible assets, net 4,695 166 — 4,861 4,643 162 — 4,805 Other receivables and assets 2,844 540 (275) (3) 3,109 2,653 515 (337) (3) 2,831 Total Assets $ 17,538 $ 26,914 $ (765) $ 43,687 $ 16,677 $ 27,254 $ (998) $ 42,933 Liabilities and Equity Debt $ 5,230 $ 22,744 $ (566) (2) $ 27,408 $ 4,499 $ 23,173 $ (790) (2) $ 26,882 Financial payables to Iveco Group N.V. 3 66 — 69 4 58 — 62 Other payables and liabilities 7,378 1,197 (199) (3) 8,376 7,151 1,278 (208) (3) 8,221 Total Liabilities 12,611 24,007 (765) 35,853 11,654 24,509 (998) 35,165 Redeemable noncontrolling interest 55 — — 55 55 — — 55 Equity 4,872 2,907 — 7,779 4,968 2,745 — 7,713 Total Liabilities and Equity $ 17,538 $ 26,914 $ (765) $ 43,687 $ 16,677 $ 27,254 $ (998) $ 42,933 (1) Industrial Activities represents the enterprise without Financial Services. Industrial Activities includes the Company's Agriculture and Construction segments, and other corporate assets, liabilities, revenues and expenses not reflected within Financial Services.(2) This item includes the elimination of receivables/payables between Industrial Activities and Financial Services.(3) This item primarily represents the reclassification of deferred tax assets/liabilities in the same taxing jurisdiction and elimination of intercompany activity between Industrial Activities and Financial Services. CNH INDUSTRIAL Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024(Unaudited, U.S. GAAP) Six Months Ended June 30, 2025 Six Months Ended June 30, 2024 ($ million) Industrial Activities(1) Financial Services Eliminations Consolidated Industrial Activities(1)(2) Financial Services Eliminations Consolidated Cash Flows from Operating Activities Net income (loss)$ 172 $ 177 $ — $ 349 $ 564 $ 209 $ — $ 773 Adjustments to reconcile net income to net cash provided (used) by operating activities: Depreciation and amortization expense, excluding assets under operating leases 206 2 — 208 205 2 — 207 Depreciation and amortization expense of assets under operating leases 3 95 — 98 4 88 — 92 (Gain) loss from disposal of assets, net — — — — 7 — — 7 Undistributed (income) loss of unconsolidated subsidiaries 140 (9) (120) (3) 11 77 (9) (80) (3) (12) Other non-cash items, net 33 150 — 183 38 92 — 130 Changes in operating assets and liabilities: Provisions (153) — — (153) 104 1 — 105 Deferred income taxes (11) (19) — (30) 25 (49) — (24) Trade and financing receivables related to sales, net (63) 504 2 (4) 443 (118) (14) (4) (4) (136) Inventories, net (219) 168 — (51) (642) 147 — (495) Trade payables 16 (21) (3) (4) (8) (586) (56) 4 (4) (638) Other assets and liabilities (14) (103) 1 (116) (515) (9) — (524) Net cash provided (used) by operating activities 110 944 (120) 934 (837) 402 (80) (515) Cash Flows from Investing Activities Additions to retail receivables — (3,701) — (3,701) — (3,861) — (3,861) Collections of retail receivables — 3,810 — 3,810 — 3,287 — 3,287 Proceeds from sale of assets excluding assets under operating leases — — — — 1 — — 1 Expenditures for property, plant and equipment and intangible assets, excluding assets under operating leases (191) (5) — (196) (206) — — (206) Expenditures for assets under operating leases — (320) — (320) (11) (203) — (214) Other, net (448) 233 — (215) 317 (252) (1) 64 Net cash provided (used) by investing activities (639) 17 — (622) 101 (1,029) (1) (929) Cash Flows from Financing Activities Net increase (decrease) in debt 450 (1,385) — (935) 153 262 — 415 Dividends paid (321) (120) 120 (3) (321) (594) (80) 80 (3) (594) Other (5) — — (5) (641) (1) 1 (641) Net cash provided (used) by financing activities 124 (1,505) 120 (1,261) (1,082) 181 81 (820) Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash 185 45 — 230 (96) (38) — (134) Net increase (decrease) in cash and cash equivalents (220) (499) — (719) (1,914) (484) — (2,398) Cash and cash equivalents, beginning of year 2,421 1,445 — 3,866 3,628 1,417 — 5,045 Cash and cash equivalents, end of period $ 2,201 $ 946 $ — $ 3,147 $ 1,714 $ 933 $ — $ 2,647 (1) Industrial Activities represents the enterprise without Financial Services. Industrial Activities includes the Company's Agriculture and Construction segments, and other corporate assets, liabilities, revenues and expenses not reflected within Financial Services.(2) In connection with the preparation of our condensed consolidated financial statements for the three months ended September 30, 2024, we had revised prior periods' results to reflect an immaterial correction for the accounting treatment related to highly inflationary accounting for our unconsolidated affiliate in Türkiye. See the supplemental financial information section below for a reconciliation of adjustments to prior reported results.(3) This item includes the elimination of dividends from Financial Services to Industrial Activities, which are included in Industrial Activities net cash provided (used) by operating activities.(4) This item includes the elimination of certain minor activities between Industrial Activities and Financial Services Other Supplemental Financial Information (Unaudited) Adjusted EBIT of Industrial Activities by Segment Three Months Ended June 30, Six Months Ended June 30, ($ million) 2025 2024(1) 2025 2024(1) Industrial Activities segments Agriculture $ 263 $ 502 $ 402 $ 890 Construction 35 60 49 111 Unallocated items, eliminations and other (74) (60) (126) (127) Total Adjusted EBIT of Industrial Activities $ 224 $ 502 $ 325 $ 874 (1) In connection with the preparation of our condensed consolidated financial statements for the three months ended September 30, 2024, we had revised prior periods' results to reflect an immaterial correction for the accounting treatment related to highly inflationary accounting for our unconsolidated affiliate in Türkiye. See the supplemental financial information section below for a reconciliation of adjustments to prior reported results. Reconciliation of Consolidated Net Income under U.S. GAAP to Adjusted EBIT of Industrial Activities Three Months Ended June 30, Six Months Ended June 30, ($ million) 2025 2024(1) 2025 2024(1) Net Income $ 217 $ 404 $ 349 $ 773 Less: Consolidated income tax expense (76) (95) (123) (172) Consolidated income before taxes 293 499 472 945 Less: Financial Services Financial Services Net Income 87 91 177 209 Financial Services Income Taxes 25 23 53 42 Add back of the following Industrial Activities items: Interest expense of Industrial Activities, net of Interest income and eliminations 26 46 51 78 Foreign exchange (gains) losses, net of Industrial Activities 9 4 14 4 Finance and non-service component of Pension and other post-employment benefit costs of Industrial Activities (2) 3 1 7 2 Adjustments for the following Industrial Activities items: Restructuring expenses 5 51 11 81 Other discrete items(3) — 15 — 15 Total Adjusted EBIT of Industrial Activities $ 224 $ 502 $ 325 $ 874 (1) In connection with the preparation of our condensed consolidated financial statements for the three months ended September 30, 2024, we had revised prior periods' results to reflect an immaterial correction for the accounting treatment related to highly inflationary accounting for our unconsolidated affiliate in Türkiye. See the supplemental financial information section below for a reconciliation of adjustments to prior reported results. (2) For the three and six months ended June 30, 2025 and 2024, this item includes a pre-tax gain of $6 million and $12 million, respectively, as a result of the amortization over the 4 years of the $101 million positive impact from the 2021 U.S. healthcare plan modification. (3) In the three and six months ended June 30, 2024 this item includes a loss of $15 million on the sale of certain non-core product lines. Other Supplemental Financial Information (Unaudited) Reconciliation of Total (Debt) to Net Cash (Debt) under U.S. GAAP Consolidated Industrial Activities Financial Services ($ million) June 30, 2025 December 31, 2024 June 30, 2025 December 31, 2024 June 30, 2025 December 31, 2024 Third party (debt) $ (27,408) $ (26,882) $ (4,989) $ (4,043) $ (22,419) $ (22,839) Intersegment notes payable — — (241) (456) (325) (334) Financial payables to Iveco Group N.V. (69) (62) (3) (4) (66) (58) Total (Debt)(1) (27,477) (26,944) (5,233) (4,503) (22,810) (23,231) Cash and cash equivalents 2,512 3,191 2,106 2,332 406 859 Restricted cash 635 675 95 89 540 586 Intersegment notes receivable — — 325 334 241 456 Financial receivables from Iveco Group N.V. 263 168 174 50 89 118 Derivatives hedging debt (2) (37) (20) (29) 18 (8) Net Cash (Debt)(2) $ (24,069) $ (22,947) $ (2,553) $ (1,727) $ (21,516) $ (21,220) (1) Total (Debt) of Industrial Activities includes Intersegment notes payable to Financial Services of $241 million and $456 million as of June 30, 2025 and December 31, 2024, respectively. Total (Debt) of Financial Services includes Intersegment notes payable to Industrial Activities of $325 million and $334 million as of June 30, 2025 and December 31, 2024, respectively. (2) The net intersegment notes receivable/(payable) balance recorded by Financial Services relating to Industrial Activities was $(84) million and $122 million as of June 30, 2025 and December 31, 2024, respectively. Reconciliation of Net Cash Provided (Used) by Operating Activities to Free Cash Flow of Industrial Activities under U.S. GAAP Six Months Ended June 30, Three Months Ended June 30, 2025 2024 ($ million) 2025 2024 $ 934 $ (515) Net cash provided (used) by Operating Activities $ 772 $ 379 (824) (322) Cash flows from Operating Activities of Financial Services, net of eliminations (186) (124) 9 (1) Change in derivatives hedging debt of Industrial Activities and other — (1) — (11) Investments in assets sold under operating lease assets of Industrial Activities — (7) (191) (206) Investments in property, plant and equipment, and intangible assets of Industrial Activities (88) (110) (44) (14) Other changes(1) (47) 3 $ (116) $ (1,069) Free cash flow of Industrial Activities $ 451 $ 140 (1) This item primarily includes capital increases in intersegment investments and change in financial receivables. Other Supplemental Financial Information (Unaudited) Reconciliation of Adjusted Net Income and Adjusted Income Tax (Expense) Benefit to Net Income (Loss) and Income Tax (Expense) Benefit and Calculation of Adjusted Diluted EPS and Adjusted ETR under U.S. GAAP Six Months Ended June 30, Three Months Ended June 30, 2025 2024(1) ($ million) 2025 2024(1) $ 349 $ 773 Net income (loss) $ 217 $ 404 (1) 85 Adjustments impacting Income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates (a) (1) 60 — (19) Adjustments impacting Income tax (expense) benefit (b) — (13) $ 348 $ 839 Adjusted net income (loss) $ 216 $ 451 $ 343 $ 833 Adjusted net income (loss) attributable to CNH Industrial N.V. $ 212 $ 446 1,253 1,267 Weighted average shares outstanding – diluted (million) 1,253 1,260 0.27 0.66 Adjusted diluted EPS ($) 0.17 0.35 $ 437 $ 856 Income (loss) of Consolidated Group before income tax (expense) benefit $ 275 $ 454 (1) 85 Adjustments impacting Income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates (a) (1) 60 $ 436 $ 941 Adjusted income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates (A) $ 274 $ 514 $ (123) $ (172) Income tax (expense) benefit $ (76) $ (95) — (19) Adjustments impacting Income tax (expense) benefit (b) — (13) $ (123) $ (191) Adjusted income tax (expense) benefit (B) $ (76) $ (108) 28.2% 20.3% Adjusted Effective Tax Rate (Adjusted ETR) (C=B/A) 27.7% 21.0% a) Adjustments impacting Income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates $ 11 $ 82 Restructuring expenses $ 5 $ 51 (12) (12) Pre-tax gain related to the 2021 U.S. healthcare plan modification (6) (6) — 15 Sale of certain non-core product lines — 15 $ (1) $ 85 Total $ (1) $ 60 b) Adjustments impacting Income tax (expense) benefit $ — $ (19) Tax effect of adjustments impacting Income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates $ — $ (13) $ — $ (19) Total $ — $ (13) (1) In connection with the preparation of our condensed consolidated financial statements for the three months ended September 30, 2024, we had revised prior periods' results to reflect an immaterial correction for the accounting treatment related to highly inflationary accounting for our unconsolidated affiliate in Türkiye. See the supplemental financial information section below for a reconciliation of adjustments to prior reported results. Other Supplemental Financial Information (Unaudited) Revision of Prior Period Financial Statements: In connection with the preparation of our condensed consolidated financial statements for the three months ended September 30, 2024, we had revised prior periods' results to reflect an immaterial correction for the accounting treatment related to highly inflationary accounting for our unconsolidated affiliate in Türkiye. CNH owns 37.5% of TürkTraktör ve Ziraat Makineleri A.S. ( and accounts for its ownership stake under the equity method. The functional currency of Türkiye-based TürkTraktör is the Turkish lira, and the Türkiye economy was deemed highly inflationary in 2022. CNH has determined that its translation criteria from Turkish lira into CNH's functional currency of U.S. dollars resulted in an overstatement of CNH's equity in income of unconsolidated subsidiaries and affiliates by $96 million in 2023 and by $67 million in the first half of 2024. Impacts in 2022 were included in the 2023 amount. We have revised our GAAP and Non-GAAP results for all prior periods presented herein. The prior period impacts to the Company's Consolidated Statements of Operations and the related impacts to the Consolidated Statements of Comprehensive Income are as follows: Three Months Ended June 30, 2024 Six Months Ended June 30, 2024 ($ million, except per share data) Previously Reported Revision Impacts As Revised Previously Reported Revision Impacts As Revised Income (loss) of Consolidated Group before Income Taxes $ 454 $ — $ 454 $ 856 $ — $ 856 Income tax expense (95) — (95) (172) — (172) Equity in income of unconsolidated subsidiaries and affiliates 79 (34) 45 156 (67) 89 Net income (loss) 438 (34) 404 840 (67) 773 Net income (loss) attributable to noncontrolling interests 5 — 5 6 — 6 Net income (loss) attributable to CNH Industrial N.V. $ 433 $ (34) $ 399 $ 834 $ (67) $ 767 Earnings per share attributable to common shareholders Basic $ 0.34 $ (0.02) $ 0.32 $ 0.66 $ (0.05) $ 0.61 Diluted $ 0.34 $ (0.02) $ 0.32 $ 0.66 $ (0.05) $ 0.61 The prior period impacts to the Company's Consolidated Statement of Cash Flows are as follows: Six Months Ended June 30, 2024 ($ million) Previously Reported Revision Impacts As Revised Cash Flows from Operating Activities Net Income (loss) $ 840 $ (67) $ 773 Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities: Undistributed income of unconsolidated subsidiaries (79) 67 (12) Net cash provided (used) by operating activities $ (515) $ — $ (515) Other Supplemental Financial Information (Unaudited) ($ million, except per share data) Q1 2024 Q2 2024 H1 2024 Equity in income of unconsolidated subsidiaries and affiliates As reported $ 77 $ 79 $ 156 Revision impacts (33) (34) (67) As revised $ 44 $ 45 $ 89 Net income (loss) As reported $ 402 $ 438 $ 840 Revision impacts (33) (34) (67) As revised $ 369 $ 404 $ 773 Net income (loss) attributable to CNH Industrial N.V. As reported $ 401 $ 433 $ 834 Revision impacts (33) (34) (67) As revised $ 368 $ 399 $ 767 Earnings per share attributable to CNH Industrial N.V. - Basic As reported $ 0.32 $ 0.34 $ 0.66 Revision impacts (0.03) (0.02) (0.05) As revised $ 0.29 $ 0.32 $ 0.61 Earnings per share attributable to CNH Industrial N.V. - Diluted As reported $ 0.31 $ 0.34 $ 0.66 Revision impacts (0.02) (0.02) (0.05) As revised $ 0.29 $ 0.32 $ 0.61 Adjusted net income(1) As reported $ 421 $ 485 $ 906 Revision impacts (33) (34) (67) As revised $ 388 $ 451 $ 839 Adjusted diluted EPS(1) As reported $ 0.33 $ 0.38 $ 0.71 Revision impacts (0.03) (0.03) (0.05) As revised $ 0.30 $ 0.35 $ 0.66 Adjusted EBIT of Industrial Activities(1) As reported $ 405 $ 536 $ 941 Revision impacts (33) (34) (67) As revised $ 372 $ 502 $ 874 Adjusted EBIT Margin of Industrial Activities(1) As reported 9.8% 11.2% 10.5% Revision impacts (0.8)% (0.7)% (0.7)% As revised 9.0% 10.5% 9.8% Other Supplemental Financial Information (Unaudited) ($ million) Q1 2024 Q2 2024 H1 2024 Adjusted EBIT of Agriculture(1) As reported $ 421 $ 536 $ 957 Revision impacts (33) (34) (67) As revised $ 388 $ 502 $ 890 Adjusted EBIT Margin of Agriculture(1) As reported 12.5% 13.7% 13.1% Revision impacts (1.0)% (0.9)% (0.9)% As revised 11.5% 12.8% 12.2% (1) This is a non-GAAP financial measure. See reconciliation to the most comparable U.S. GAAP financial measure below. The following table includes the reconciliation of Adjusted EBIT for Industrial Activities to net income, the most comparable U.S. GAAP financial measure: ($ million) Q1 2024 Q2 2024 H1 2024 Net Income (loss) - as reported $ 402 $ 438 $ 840 Revision impacts (33) (34) (67) Net income (loss) - as revised 369 404 773 Less: Consolidated income tax expense (77) (95) (172) Consolidated income before taxes 446 499 945 Less: Financial Services Financial Services Net Income 118 91 209 Financial Services Income Taxes 19 23 42 Add back of the following Industrial Activities items: Interest expense of Industrial Activities, net of Interest income and eliminations 32 46 78 Foreign exchange (gains) losses, net of Industrial Activities — 4 4 Finance and non-service component of Pension and other post-employment benefit costs of Industrial Activities 1 1 2 Adjustments for the following Industrial Activities items: Restructuring expenses 30 51 81 Other discrete items — 15 15 Total Adjusted EBIT of Industrial Activities $ 372 $ 502 $ 874 Other Supplemental Financial Information (Unaudited) The following table includes the reconciliation of adjusted net income to net income, the most comparable U.S. GAAP financial measure and a calculation of the revised adjusted diluted EPS: ($ million, except per share data) Q1 2024 Q2 2024 H1 2024 Net income (loss) - as reported $ 402 $ 438 $ 840 Revision impacts (33) (34) (67) Net income (loss) - as revised 369 404 773 Adjustments impacting Income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates 25 60 85 Adjustments impacting Income tax (expense) benefit (6) (13) (19) Adjusted net income (loss) $ 388 $ 451 $ 839 Adjusted net income (loss) attributable to CNH Industrial N.V. - as reported $ 420 $ 480 $ 900 Revision impacts (33) (34) (67) Adjusted net income (loss) attributable to CNH Industrial N.V. - as revised $ 387 $ 446 $ 833 Weighted average shares outstanding – diluted (million) 1,274 1,260 1,267 Adjusted diluted EPS ($) $ 0.30 $ 0.35 $ 0.66 Attachment 20250801_PR_CNH_Q2_2025_ResultsError in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
18 minutes ago
- Bloomberg
UK Plc Lines Up to Woo Nigel Farage's Reform at Party Conference
British industry is flocking to Reform UK's annual conference, which is set to see its biggest turnout to date from businesses and lobby groups, underlining the growing danger Nigel Farage's populist party poses to the governing Labour Party and opposition Conservatives. All of the UK's 'big five' business lobby groups — the Confederation of British Industry, Federation of Small Businesses, British Chambers of Commerce, Institute of Directors and Make UK — will attend Reform's Sep. 5-6 gathering, spokespeople for the groups said. UK Finance, which represents the banking industry, and several of London's best-known PR and lobbying firms, including Brunswick Group, Hanbury Strategy, Headland Consultancy and H/Advisors Cicero will also attend with clients, their representatives told Bloomberg.
