CNH Industrial

Good morning and welcome to the CNH 2025 fourth quarter results conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question at that time, simply press star followed by the number one on your telephone keypad. And if you'd like to withdraw that question, again, press star one. I will now turn the call over to Jason Omerza, Vice President of Investor Relations. Sir, please go ahead.

Thank you, Krista, and good morning, everyone. We would like to welcome you to C&H's fourth quarter earnings presentation for the period ending December 31st, 2025. This live webcast is copyrighted by C&H, and any recording, transmission, or other use of any portion of it without the written consent of C&H is strictly prohibited. Hosting today's call are C&H CEO Garrett Marks and CFO Jim Nicholas. They will reference the material available for download from our website. Please note that any forward-looking statements that we make during today's call are subject to the risks and uncertainties mentioned in the Safe Harbor Statement included in the presentation material. Additional information pertaining to factors that could cause actual results to differ materially is contained in the company's most recent annual report on Form 10-K, as well as other periodic reports and filings with the U.S. Securities and Exchange Commission. Our presentation includes certain non-GAAP financial measures. Additional information, including reconciliations to the most directly comparable U.S. GAAP financial measures, is included in the presentation material. I will now turn the call over to Garrett. Thank you, Jason, and welcome to everyone joining the call.

We are calling today from our plant in Wichita, Kansas, where we build loaders for our construction business. There were bright spots for us to celebrate as the year ended, even though there are continuing challenges in the markets that we serve. We had a successful Tech Day presentation at the Agritechnica show in November. If you haven't seen it yet, we encourage you to watch the replay and learn about the advancements we have made and will continue to make in the pursuit of serving farmers on their soil. At Agritechnica, we showed how CNH Tech powers digital solutions for our world-class iron. From factory fit to retrofit aftermarket solutions, we have the technology to help farmers be more productive with their equipment. We also introduced a new lineup of mid-range tractors for the global market, but which specifically addresses a particular need in Europe for large mid-range high horsepower tractors. This new tailored offering of tractors helps us compete better and facilitates pull-through sales of combined sprayers and planters. We also showcased our leadership in combined harvesters with our award-winning CR and AF series machines. We have ramped up our efforts to strengthen and consolidate our dealer network with several flagship transactions already completed. This is a critical piece of our long-term strategy and we are very pleased with the initial reaction from our dealer partners. We are proud of the progress we have made with our quality and operational excellence initiatives that we outlined at our investor day last year. We took out $230 million of cost from the agriculture segment in 2025, which puts us on pace to achieve the $550 million cumulative savings target by 2030. Those savings plus incremental actions that we will take will help us eventually offset the entire tariff cost impact incurred. We also continue to make progress on our near-term goals. Agriculture dealer inventories were down another $200 million in the quarter for a full year reduction of about $800 million. That is a little shy of the target that we had initially set at the beginning of 2025, But it is because we ship out a bit more company inventory to the dealers than we had originally expected in Q4, on the back of the European market showing some green shoes. But commodity prices remain low, and as the single largest contributor to farm income, it is hard for farmers to operate their farms, let alone purchase equipment. The trade environment remains in flux, which makes it difficult for CNH companies farmers and builders to have a sense of certainty when making capital investments. So we do our best and focus on the things that we have in our own control. So while market conditions were very dynamic and are forecasted to remain so in 2026, the CNH team is focused on solutions today and in the future that delight our farmers and builders and that will deliver returns for our shareholders. With that, let's turn to the results. On a year-over-year basis, our Q4 results are very encouraging. We are, however, comparing to a very low Q4 of 2024 when we had severely cut our production levels. We will talk about our 2026 guidance in a moment, but I want to caution against using this Q4 improvement as a run rate into Q1. Fourth quarter consolidated revenues were $5.2 billion or up 6% from Q4 of 2024. Our ag segment sales were up 5%, with EMEA up 33%, and North America down 10%. Construction sales were up 19% on an easy comparison with 2024. Industrial adjusted EBIT was $234 million, up 21% year over year, mainly as a result of positive pricing, higher production, cost-saving actions, and lower corporate expenses. which together offset the tariffs and geographic mixed headwind. Adjusted net income was $246 million, with adjusted EPS for the quarter at 19 cents. Looking at the full year, we faced another challenging period for the ag industry. 2025 consolidated revenues were down 9% year-over-year, while industrial sales decreased double-digits. 2025 industrial adjusted EBIT margin was 4.3%, primarily driven by the higher tariff costs and unfavorable geographic mix, partly offset by pricing and cost mitigation actions. We remain confident that our North and South American markets will deliver growth in revenue and profit pools in the coming years as trade flows stabilize and farmers migrate to larger machines with connectivity solutions. We grew market share in large tractors and combine harvesters in North America during 2025. And as we move into 2026, EMEA is on a great path to further recover from its low margin levels through our transformation cost efficiency programs and market share gains in the mid-range tractor segment. Sustainability has always been one of our main priorities because it is vital to our farmers. As we discussed at the Tech Day, land is the most valuable asset for a farmer and soil health is of prime importance. That is why we have always stressed sustainability in our operations and in our machines. For us, sustainability is not only about protecting the environment, it is also about ensuring the long-term profitability of our farmers, which is central to our conviction of what true sustainability means. We are proud to have been ranked number one in our industry on S&P's global 2025 corporate sustainability assessment and to have received an A for climate and an A- for water and CDP's 2025 scores. These results recognize our leadership in environmental actions and disclosure across our products, operations, and supply chain. With that, I will turn the call over to Jim to take us through the details of our financials.