CNH Industrial

Good morning and welcome to the CNH 2026 first quarter results conference call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. To withdraw your question, press star one again. I will now hand the call over to Jason O'Mearsa, Vice President of Investor Relations. Please go ahead.

Thank you, Warren, and good morning, everyone. We would like to welcome you to CNH's first quarter earnings call for the period ending March 31st, 2026. This live webcast is copyrighted by CNH, and any recording, transmission, or other use of any portion of it without the written consent of CNH is strictly prohibited. Hosting today's call are CNH 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 meeting. We're calling from Sioux Falls, South Dakota, where we just hosted our board meeting. Sioux Falls is one of our CNH tech hubs, which we acquired through Raven. Here in Sioux Falls, we have about 300 colleagues who jointly with other sites, not only code and validate our on and off board software, but also design the architecture of the next evolution of our digital machine hardware. I'm very proud of the advancements that we will be launching over the next couple of years. First quarter results were as expected and guided. Given that Q1 is seasonally our lowest quarter, we are at historically low industry demand in North America, and farmers in Brazil have ongoing financial challenges. During the quarter, additional complications emerged, including changing tariff rules and an escalated conflict in the Middle East. I'm very proud of the way the CNH team responded to all the challenges we faced, those we knew about going in and those that emerged during the quarter. We are now passing through what we expect to be the lowest period of the current ag industry cycle, supported by some replacement demands. As we have said before, we also expect Q1 2026 to be the lowest quarter of the year during which we diligently continued the disciplined management of all levers in our control. Despite the challenging quarter, we have many things to proudly share here. We kept production levels low in order to manage and contain channel inventory. Ag dealer inventory levels remained unchanged since the beginning of the year by design. Normally, dealers build inventory in Q1 in preparation for Q2, but the flat levels are in line with our overall plan to have the dealers reduce their inventories by about $500 million this year. We have been quite disciplined to produce and ship only pre-sold orders or fast-moving stock orders. The net of price and product cost was positive in agriculture as we focused on our operational efficiencies and quality improvements. And we do expect that some of price and product cost to be positive in agriculture for the full year as well. We're making solid progress on our efforts to take costs out and improve our overall product quality, countering the negative impact from tariffs and global supply chain disruptions. We also continue with a raving support our dealer and service network optimization with several new consolidations completed and our tech assist tool rolled out at about 70% of our dealer locations. As a reminder, our AI tech assist delivers near instant diagnostic support while our visual parts search enables rapid and accurate parts identification. These capabilities enhance decision quality and deepen the value we deliver to customers and dealers. And there's much more to come powered by the rapidly evolving power of artificial intelligence from generative to agentic capabilities. We, along with other industry participants, have had productive discussions with members of the US administration on how we can support farmers and builders during these times. We are optimistic about how some developments, such as the recently announced increase in renewable fuel standards, will help farmers to increase crop prices and demand. There's a new equilibrium of supply and demand of agricultural commodities emerging in all major regions, as upcoming elections, trade deals including and excluding the US, and rerouting of food and non-food supply chains are settled over the next couple of years. So while market conditions are very dynamic, we are focused on solutions today and in the future that support our farmers and builders and that will deliver returns to our shareholders. Turning to the results, which reflect the expected and guided market headwinds and our decision to keep production very low. Consolidated revenues were $3.8 billion flat year over year, including about 4% positive currency impacts. Our ag segment sales were up 1%, with EMEA up 20%, North America down 3%, and South America down 28%. With farm incomes depressed and macroeconomic uncertainty, we saw continued softness in equipment demand. Industrial adjusted EBIT was a loss of $45 million, driven primarily by tariffs and high SG&A and R&D expenses, only partially offset by positive pricing and cost savings actions. For the quarter, adjusted net income was $21 million, with adjusted EPS at $0.01. Free cash flow from industrial activities was a $569 million outflow in line with Q1 2025 and consistent with the working capital seasonality of the first quarter, where we usually built up some company inventory in preparation for Q2 sales. We remain more committed than ever to strengthening the company and prioritizing long-term value creation. Our company strategy is centered around five key strategic pillars, expanding product leadership, advancing our iron and tech integration, driving commercial excellence, operational excellence, and quality as a mindset. These pillars remain front and center to ensure we stay aligned with our long-term strategic objectives and our team remains focused and united in our shared purpose to serve and advance those who feed and build the world we all live in. From all the great steps forward we took in the last quarter, I would like to focus today on our operational excellence and specifically our manufacturing plant efficiencies. We use a wide range of tools and latest technologies to unlock cost efficiencies at our manufacturing plants. Last year, we conducted about 1,400 projects, which led to $45 million in savings, as we reported to you already last quarter. Individually, these projects may seem modest, but the results are profound when we add them all up. In addition, many of the projects include quality improvements to the products shipped out from our factories. An example of one of those projects was a fiber laser installed last year at our Fargo, North Dakota plant, where we make our four-wheel drive tractors. This machine is used to cut sheet steel and replace an old plasma punch machine. The new process is 52% faster than before, while also reducing other consumables such as oil and lubricants, minimizing secondary operations, and my favorite, improving quality. More efficient operations paired with better quality are a win for both CNH and our customers. With that, I will now turn the call over to Jim to take us through the details of our financials and guidance.