CNH Unveils Strategic Business Plan to Drive Growth Through 2030

At its Investor Day 2025, CNH presented its Strategic Business Plan (SBP), outlining its roadmap through 2030. CEO Gerrit Marx highlighted the plan’s key pillars, which include advancing technology and machinery, enhancing EBIT margins, strengthening the construction segment, and returning most industrial free cash flow to shareholders.

Marx stated that CNH is on a clear path to achieve strong, sustainable growth while meeting cost-efficiency goals. “We have consistently improved margins, and this new phase will elevate our performance further,” he said.

BREAKING NEW GROUND ON IRON + TECH

CNH will consolidate its position as the first or second agricultural player in all major markets during the plan period.

We will solidify and strengthen our product leadership across all phases of the agricultural cycle through launches, updates, and new features for our tractors, harvesters, crop production, and crop protection equipment. CNH already offers the industry’s most advanced and sophisticated combine harvesters, and we will further expand our harvesting lineup to maintain our leading position. Our new-generation twin and single rotor combines, launched in 2024, are delivering for farmers with a 15% lower total cost of ownership. A full refresh of our tractor lineup, covering the 20 to 700+ horsepower model range, is underway, and from 2026 onwards, we will continue to progressively introduce new product lines.

Thanks to our investments in technology, and by adopting and embedding advanced Artificial Intelligence (AI) capabilities, we are creating the best user experience for customers through the seamless integration of our Precision Tech into our equipment (Iron). Our Precision Tech offering includes agronomic sensors, smart implements, advanced automation, autonomous features, satellite connectivity, agronomic insights, and machine data synchronization via our FieldOps™ digital platform.

We are installing our Precision Tech systems as factory-fit across all major product lines, while also focusing on increasing integration across all products. By 2030, 90% of these systems will be developed in-house. By the end of the plan period, the contribution of Precision Tech sales will nearly double as a percentage of total Agriculture Net Sales, driving additional margin.

A new go-to-market strategy, centered on an integrated and regionally tailored dealer network and brand strategy, will see CNH drive higher farmer engagement with greater focus on better and faster customer service. We will leverage and balance our existing global network, which is industry-leading in terms of customer proximity, with approximately 6,000 points of sale and service. Central to our strategy is the strengthening of our brands’ identities: Case IH and New Holland as global brands, and STEYR as a dedicated European brand—each serving distinct customer segments

Crucial to this strategy is the establishment of a ‘New Deal’ with our dealers, which will see us invest approximately 100 basis points of annual margin over the next five years in growth-oriented dealers. We are also investing in enhancing customer-centric service capabilities through integrated platforms and AI-powered solutions for programmed and predictive maintenance, increased connectivity for units, and retrofit solutions to deliver a seamless customer and dealer experience that targets 100% uptime and a “fix right the first time” guarantee.

FURTHER EXPANDING MID-CYCLE EBIT MARGINS

CNH is targeting a 16–17% Agriculture mid-cycle adjusted EBIT margin by 2030.

This ambition will be achieved through a combination of margin expansion initiatives tied to commercial growth, operational efficiency, and quality improvements.

Specifically, CNH expects to generate margin expansion through commercial growth initiatives that include Precision Tech product mix and go-to-market actions; operational efficiencies related to strategic sourcing, plant performance, and manufacturing footprint; and quality enhancements driven by greater product reliability, advanced manufacturing processes, and stronger dealer partnerships.

We are committed to delivering over $550 million in operational and quality cost improvements by 2030 to support this margin expansion.

For Construction, we are targeting a 7–8% mid-cycle adjusted EBIT margin by 2030. We will achieve this margin expansion through commercial actions, sourcing improvements, and manufacturing improvements.

BUILDING THE FUTURE: FORWARD STRATEGY FOR CONSTRUCTION

CNH’s Construction segment is an independent and well-established business. Our new SBP aims to continue margin expansion and drive a turnaround for Construction.

Strategic actions will leverage the strengths of our well-known brands (CASE Construction Equipment, New Holland Construction, and Eurocomach), our widespread global network, and our top-five position in North and South America.

Construction’s continued growth and market share gains will be driven by new product launches, updates to existing product lines, integrated digital technologies, increased aftermarket sales, enhanced distribution, and optimized costs. Through-cycle margin expansion will be achieved through manufacturing and sourcing efficiencies, as well as aftermarket growth via our parts and connected services unit.

Adding to Construction’s position of strength are the cost efficiencies we continue to generate, which have created capacity for future growth investments.

MAXIMIZING SHAREHOLDER RETURNS ACROSS THE INDUSTRIAL CYCLE

Throughout this plan period, CNH will prioritize investments in organic growth and margin expansion. A strong balance sheet and credit rating are also key focus areas, and we are committed to preserving an investment-grade rating.

We will also maintain our ability to pursue inorganic growth through strategic, disciplined, and margin-accretive M&A actions that increase our competitiveness.

We are committed to delivering increasing value to our shareholders. We will boost through-cycle Industrial cash generation by 25%, enabling higher returns to shareholders. After debt repayment and M&A opportunities, we plan to return substantially all Industrial FCF to shareholders through a consistent dividend (25–35% of net income) and share buybacks across the industry cycle.