Tue, May 6, 3:30 PM (13 days ago)
**CNH Industrial Capital LLC (CNHI) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $324.1 million (up 5.8% YoY) - Interest income on retail notes and finance leases: $94.1 million (up 7.7% YoY) - Interest income on wholesale notes: $34.6 million (up 28.4% YoY) - Interest and other income from affiliates: $121.9 million (up 2.0% YoY) - **Net Income:** $56.6 million (up 3.8% YoY) - Increase driven by favorable volumes, margin improvement, and lower labor costs, partially offset by higher provisions for credit losses and lower recoveries on used equipment sales. - **Profit Margins:** Effective tax rates were 24.8% (Q1 2025) and 23.4% (Q1 2024). - **Cash Flow:** Net cash from operating activities: $242.1 million (up from $99.9 million in Q1 2024). - Increase due to changes in working capital components and increases in provision for credit losses and net income. - **Liquidity:** Total assets: $16.2 billion (down from $16.9 billion in Q4 2024). - Cash and restricted cash: $464.5 million (down from $568.6 million in Q1 2024). **Key Metrics:** - **Receivables:** Total receivables, net: $13.9 billion (down from $14.0 billion in Q1 2024). - Retail customer receivables: $8.9 billion (up from $8.2 billion in Q1 2024). - Wholesale receivables: $4.8 billion (down from $5.4 billion in Q1 2024). - **Delinquency Rates:** Retail customer receivables >30 days past due: 1.7% (up from 1.2% in Q1 2024). - Wholesale receivables delinquency was not significant. - **Allowance for Credit Losses:** $130.1 million (up from $118.4 million in Q1 2024). - Increase due to higher specific reserve needs. **Trends and Uncertainties:** - **Economic Conditions:** Global economic volatility and geopolitical events affecting product availability and pricing. - **Interest Rate Risks:** Changing interest rates can reduce demand for CNH North America equipment, adversely affect interest margins, and increase borrowing costs. - **Credit Quality:** Monitoring credit quality of receivables, with delinquency reported on receivables greater than 30 days past due. **Future Operations Impact:** - **Securitization:** Continues to be a significant funding source, with $5.6 billion in public and private asset-backed securities outstanding. - **Credit Ratings:** Current ratings are BBB+ (S&P Global Ratings), BBB+ (Fitch Ratings), and Baa2 (Moody's Investors Service). - Lower ratings could result in higher borrowing costs and reduced access to debt capital markets. - **Liquidity Strategy:** Diversifying funding sources and expanding investor base to support investment-grade credit ratings. **Ticker:** CNHI (CNH Industrial N.V., the parent company, is listed on the New York Stock Exchange under the symbol "CNH").