CNH
CNH | Market Cap: $12.9B (07/13/26)
Industry:
Capital Goods Financial Services

DESCRIPTION

CNH is one of two truly global full-line agricultural and construction equipment manufacturers, with agriculture as the dominant business at roughly 80% of industrial sales. The agriculture segment operates under two global brands — Case IH and New Holland — selling tractors (compact to large high-horsepower), combine harvesters, sprayers, seeders, and precision farming technology. CNH's primary customers are farmers, with large North American cash-crop operations generating the highest margins. The construction segment, built around CASE Construction and New Holland Construction, sells compact and heavy equipment through roughly 400 dealers; CNH has acknowledged it lacks the scale to compete fully on a standalone basis in construction and is open to strategic partnerships. Both segments sell primarily through independent dealer networks. CNH also operates a captive finance arm that provides retail and wholesale floor-plan financing to customers and dealers. Margins are driven by production volume, geographic mix (North America is highest-margin), and product mix (large ag equipment over smaller tractors or EMEA). CNH's long-term strategy targets Agriculture EBIT margins of 16–17% at mid-cycle volumes by 2030, driven by $550M in cumulative cost savings, dealer network consolidation, a broad product refresh, and growing precision technology content from roughly 5% toward 10% of ag sales. CNH owns Raven and Hemisphere GNSS to bring precision agriculture capabilities in-house rather than relying on third-party suppliers.

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