CEO Gerrit Marx acknowledged the 鈥渃hallenging market conditions鈥� (Photo: AdobeStock)

In the first quarter, the global volume for construction equipment increased by 2% year-over-year for heavy construction equipment, while light construction equipment saw a decline of 6%. Overall demand decreased by 11% in North America, 9% in Europe, the Middle East, and Africa (EMEA), and 1% in South America.

Conversely, demand increased by 7% in the Asia Pacific region.

During this quarter, construction net sales fell by 22%, totalling US$591 million, primarily due to lower shipment volumes resulting from a decline in the market.

The company forecasts that global retail sales in the agriculture and construction equipment markets will be lower in 2025 compared to 2024. 

Alongside lower cyclical industry sales, the company says that it is assessing various potential global trade scenarios. The uncertainties associated with these scenarios - such as the magnitude and duration of tariffs imposed, responses from U.S. trading partners, and their impact on our end customers - may influence the company鈥檚 forecasts for the year.

As a result, the company is considering a broader range of possible outcomes, including the possibility that tariffs will remain at their current levels for the remainder of the year or could increase to the levels announced by the US government on April 2, 2025, as of July 9, 2025.

Gerrit Marx, chief executive officer at CNH Industrial, said, 鈥淒espite the challenging market conditions, CNH remains committed to driving operational excellence and advancing cutting-edge technologies. Our focus on reducing dealer inventories and managing costs has positioned us to weather the current macroeconomic uncertainties, and our balanced global exposure allows us to continue providing excellent products and services to our customers.

鈥淲e are confident in our strategic initiatives and the dedication of our team to execute them, and we are excited to review our strategy in more detail with you at our Investor Day next week.鈥�