CNH bets on tech and margins as farm machinery downturn drags on

CNH Industrial reported steady second-quarter results, with revenues up 2% year-on-year, but sees no near-term recovery in global farm equipment demand as farmer profitability remains under pressure and machinery purchases are delayed. The company is prioritizing dealer inventory reductions, maintaining production restraint, and investing in precision agriculture and connected technology as part of its long-term strategy. Margin improvement initiatives, including strategic sourcing and manufacturing efficiencies, are on track, while the construction division provides growth and offsets agricultural softness. Management remains confident that operational improvements and technology investments will position CNH for stronger profitability when market conditions improve.