Financial Analysis

"COMMITMENTS AND CONTINGENCIES As a global company with a diverse business portfolio, CNH in the ordinary course of business is exposed to numerous legal risks, including, without limitation, dealer and supplier litigation, intellectual property right disputes, product liability, asbestos, personal injury, emissions and/or fuel economy regulatory, competition law and other regulatory investigations and environmental claims. We are party to various unresolved investigations, claims and actions that are incidental to our business. The most significant of these matters are described below. The outcome of any current or future proceedings, claims, or investigations cannot be predicted with certainty. Adverse decisions in one or more of these proceedings, claims or investigations could require CNH to pay substantial damages or fines or undertake service actions, recall campaigns or other costly actions. It is therefore possible that legal judgments could give rise to expenses that are not covered, or not fully covered, by insurance and could affect CNH's financial position and results. When it is probable that such a loss has been incurred and the amount can be reasonably estimated, such amounts are provided for in the Company's Consolidated Statements of Operations and the related accrual is recorded in ""Other liabilities"" on the Consolidated Balance Sheets. Although the ultimate outcome of legal matters pending against CNH and its subsidiaries cannot be predicted, the Company …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

EMPLOYEE BENEFIT PLANS AND POSTRETIREMENT BENEFITS The following table summarizes the components of Net periodic benefit cost (income) of defined benefit pension plans and postretirement health and life insurance plans for the three months ended March 31, 2026 and 2025 (in millions of dollars): Pension Healthcare Other Three Months Ended March 31, Three Months Ended March 31, Three Months Ended March 31, 2026 2025 2026 2025 2026 2025 Service cost $ 2 $ 2 $ $ 1 $ 1 $ 1 Interest cost 13 13 2 2 1 1 Expected return on assets (15) (12) (1) Amortization of: Prior service credit (5) Actuarial loss (gain) 5 5 1 (2) (1) Net periodic benefit cost (income) $ 5 $ 8 $ 2 $ (2) $ $ 1 …

CompensationAndEmployeeBenefitPlansTextBlock · excerpt; the full note is in the filing

DEBT A summary of issued bonds outstanding as of March 31, 2026 is as follows (in millions of dollars, except percentages): Currency Face value of outstanding bonds Issue Date Coupon Maturity Outstanding amount Industrial Activities Euro Medium Term Notes: CNH Industrial Finance Europe S.A. (1) EUR 600 March 25, 2019 1.750% March 25, 2027 $ 689 CNH Industrial Finance Europe S.A. (1) EUR 50 April 21, 2016 3.875% April 21, 2028 58 CNH Industrial Finance Europe S.A. (1) EUR 500 July 3, 2019 1.625% July 3, 2029 575 CNH Industrial Finance Europe S.A. (1) EUR 50 July 15, 2019 2.200% July 15, 2039 58 CNH Industrial N.V. (2) EUR 750 June 11, 2024 3.750% June 11, 2031 862 CNH Industrial N.V. (2) EUR 500 November 26, 2025 3.625% January 26, 2033 575 CNH Industrial N.V. (2) EUR 500 September 3, 2025 3.875% September 3, 2035 575 Other Bonds: CNH Industrial N.V. (3) USD 500 November 14, 2017 3.850% November 15, 2027 500 Hedging effects, bond premium/discount, and unamortized issuance costs (55) Total Industrial Activities $ 3,837 Financial Services CNH Industrial Capital LLC USD 600 May 24, 2021 1.450% July 15, 2026 $ 600 CNH Industrial Capital LLC USD 500 October 9, 2024 4.500% October 8, 2027 500 CNH Industrial Capital LLC USD 500 March 21, 2025 4.750% March 21, 2028 500 CNH Industrial Capital LLC USD 600 April 10, 2023 4.550% April 10, 2028 600 CNH Industrial Capital LLC USD 500 September 13, 2023 5.500% January 12, 2029 500 CNH Industrial Capital LLC USD 600 March 21, 2024 5.100% Apri …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table summarizes revenues for the three months ended March 31, 2026 and 2025 (in millions of dollars): Three Months Ended March 31, 2026 2025 Agriculture $ 2,596 $ 2,581 Construction 574 591 Total Industrial Activities 3,170 3,172 Financial Services 646 651 Eliminations and other 10 5 Total Revenues $ 3,826 $ 3,828 The following table disaggregates revenues by major source for the three months ended March 31, 2026 and 2025 (in millions of dollars): Three Months Ended March 31, 2026 2025 Revenues from: Sales of goods $ 3,156 $ 3,163 Rendering of services and other revenues 14 9 Revenues from sales of goods and services 3,170 3,172 Finance and interest income 526 510 Rents and other income on operating lease 130 146 Finance, interest and other income 656 656 Total Revenues $ 3,826 $ 3,828

DisaggregationOfRevenueTableTextBlock

GOODWILL AND OTHER INTANGIBLES Changes in the carrying amount of goodwill for the three months ended March 31, 2026 were as follows (in millions of dollars): Agriculture Construction Financial Services Total Balance at December 31, 2025 $ 3,427 $ 50 $ 140 $ 3,617 Foreign currency translation and other (5) (1) (1) (7) Balance at March 31, 2026 $ 3,422 $ 49 $ 139 $ 3,610 As of March 31, 2026 and December 31, 2025, the Company's other intangible assets and related accumulated amortization consisted of the following (in millions of dollars): March 31, 2026 December 31, 2025 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Other intangible assets subject to amortization: Dealer networks $ 217 $ 204 $ 13 $ 217 $ 204 $ 13 Patents, concessions, licenses and other 938 615 323 943 607 336 Capitalized software 1,414 1,127 287 1,394 1,107 287 2,569 1,946 623 2,554 1,918 636 Other intangible assets not subject to amortization: In-process research and development 32 32 31 31 Software in-progress 141 141 147 147 Trademarks 272 272 272 272 Total other intangible assets $ 3,014 $ 1,946 $ 1,068 $ 3,004 $ 1,918 $ 1,086 CNH recorded amortization expense of $45 million and $42 million for the three months ended March 31, 2026 and 2025, respectively. …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

INCOME TAXES The effective tax rate for the three months ended March 31, 2026 and 2025 was 30.8% and 29.0%, respectively. The increase in the 2026 ef fective tax rate was largely attributable to discrete items on a relatively small profit base in Q1 2026

IncomeTaxDisclosureTextBlock

"LEASES Lessee The Company leases certain buildings, plant and machinery, vehicles, and information technology (""IT"") equipment for its own use. A lease is a contract that conveys the right to control the use of an identified asset (the leased asset) for a period of time in exchange for consideration. The lease term determined by the Company comprises the non-cancellable period of the lease contract together with both periods covered by an option to extend the lease if the lessee is reasonably certain to exercise that option; and periods covered by an option to terminate the lease if the lessee is reasonably certain not to exercise that option. For real estate leases, this assessment is based on management's analysis of all relevant facts and circumstances, including the leased asset's purpose, the economic and practical potential for replacing the asset, and any plans that the Company has for the asset's future use. For lease agreements, we combine lease and non-lease components. For leases with terms not exceeding twelve months (""short-term leases""), the Company recognizes the lease payments associated with those leases on a straight-line basis over the lease term as operating expense in the Consolidated Statements of Operation. Leases with a term of 12 months or less are not recorded in the Consolidated Balance sheets. For these leases the Company recognized, on a straight-line basis over the lease term, lease expenses of $1 million in both the three months ended March …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Not Yet Adopted Expense Disaggregation Disclosures In November 2024, the FASB issued ASU 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40) to improve the disclosures about a public business entitys expenses and provide more detailed information about the types of expenses included in certain expense captions in the Consolidated Financial Statements. The amendments in this update are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The Company is evaluating the impact this guidance will have on the disclosures in the consolidated financial statements and related disclosures. …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"RELATED PARTY INFORMATION As of March 31, 2026, CNH's related parties were primarily EXOR N.V. (""EXOR"") and the companies that EXOR N.V. controlled or had a significant influence over, including Stellantis N.V. (""Stellantis""), Ferrari N.V. (""Ferrari"") and Iveco Group N.V. (""Iveco Group""), which effective January 1, 2022 separated from CNH by way of a demerger under Dutch law and became a publicly listed company independent from CNH. As of March 31, 2026, EXOR N.V. held 45.6% of CNH's voting power and had the ability to significantly influence the decisions submitted to a vote of CNH's shareholders, including approval of annual dividends, the election and removal of directors, mergers or other business combinations, the acquisition or disposition of assets and issuances of equity and the incurrence of indebtedness. The percentage above has been calculated as the ratio of (i) the aggregate number of common shares and special voting shares owned by EXOR to (ii) the aggregate number of outstanding common shares and special voting shares of CNH as of March 31, 2026. In addition, CNH engages in transactions with its unconsolidated affiliates over which CNH has a significant influence or joint control. Transactions with EXOR N.V. and its Subsidiaries and Affiliates EXOR is an investment holding company in Europe. As of March 31, 2026 and December 31, 2025, among other things, EXOR managed a portfolio that includes investments in CNH, Stellantis, Iveco Group and Ferrari. CNH …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

"REVENUE The following table summarizes revenues for the three months ended March 31, 2026 and 2025 (in millions of dollars): Three Months Ended March 31, 2026 2025 Agriculture $ 2,596 $ 2,581 Construction 574 591 Total Industrial Activities 3,170 3,172 Financial Services 646 651 Eliminations and other 10 5 Total Revenues $ 3,826 $ 3,828 The following table disaggregates revenues by major source for the three months ended March 31, 2026 and 2025 (in millions of dollars): Three Months Ended March 31, 2026 2025 Revenues from: Sales of goods $ 3,156 $ 3,163 Rendering of services and other revenues 14 9 Revenues from sales of goods and services 3,170 3,172 Finance and interest income 526 510 Rents and other income on operating lease 130 146 Finance, interest and other income 656 656 Total Revenues $ 3,826 $ 3,828 Contract liabilities recorded in ""Other liabilities"" were $128 million at March 31, 2026 and $122 million at December 31, 2025, primarily related to extended warranties. During the three months ended March 31, 2026 and 2025, revenues included $10 million and $3 million, respectively, from contract liabilities outstanding at the beginning of each period. As of March 31, 2026, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $128 million (approximately $122 million at December 31, 2025). CNH expects to recognize revenue on approximately 27% and 81% of the remaining performance obligations over the next 12 and …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"SEGMENT REPORTING The Company operates three reportable segments: Agriculture, Construction, and Financial Services. The Agriculture and Construction segments are collectively referred to as ""Industrial Activities"". Segment information is prepared in accordance with the internal reporting provided to the Chief Operating Decision Maker (the ""CODM""). The CODM evaluates the Agriculture and Construction segments based on Adjusted Earnings before Interest and Taxes (""EBIT"") and evaluates the Financial Services segment based on Income before income taxes. Adjusted EBIT is a non-GAAP financial measure. A reconciliation to the most directly comparable GAAP measure is provided in Item 2, ""Management's Discussion and Analysis of Financial Condition and Results of Operations"". There were no changes to the Companys reportable segments or to the methods used to measure segment results during the quarter. The following tables include reported segment revenue and income, significant segment expenses and other segment items considered in the calculation of Adjusted EBIT for Industrial Activities and Income before income taxes for Financial Services for the three months ended March 31, 2026 and 2025 (in millions of dollars): Three Months Ended March 31, 2026 Agriculture Construction Financial Services Total Net sales $ 2,596 $ 574 $ Finance, interest and other income (Financial Services) 646 Total Revenues 2,596 574 646 Cost of goods sold (2,099) (506) Selling, general and administra …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

SUBSEQUENT EVENTS On April 20, 2026, CNH acquired a 30% equity interest in Abilene Machine LLC, a U.S.-based wholesale distributor of new, used, and remanufactured after-market agriculture equipment parts.

SubsequentEventsTextBlock