CNH Industrial Q1: 15% Topline Growth, Earnings Beat, Three Key Acquisitions & More

CNH Industrial NV CNHI reported first-quarter FY23 revenue growth of 15% year-over-year to $5.34 billion, +17% on a constant currency basis, beating the consensus of $5.08 billion.
Adjusted EPS improved to $0.35 from $0.28 in 1Q22, beating the consensus of $0.32.
Net sales of Industrial Activities were $4.78 billion, up 14.3%Y/Y mainly due to favorable price realization and higher sales volumes, offsetting more than 2% adverse currency conversion impacts.
Adjusted gross profit margin of Industrial Activities expanded by 220 bps to 24.4%. Adjusted EBIT margin of Industrial Activities raised by 130 bps to 11.6%.
CNH Industrial's net cash used in operating activities for the quarter was $(701) million, compared to $(887) million a year ago. Industrial Activities Free Cash Flow absorption was $(673) million.
The company has cash and equivalents of $3.21 billion at the end of Q1.
"Our Construction performance is progressing well, especially in North America where backlog supports continued growth. We announced three key acquisitions this quarter, bolstering our strong precision agriculture and alternative fuel portfolios. Our lean enterprise and strategic sourcing programs are creating a simpler, more effective company," commented Scott W. Wine, Chief Executive Officer.
FY23 Outlook, raised: CNH Industrial sees its Industrial Activities net sales up 8%-11% (prior view 6%-10%), including currency translation effects.
It continues to expect a Free Cash Flow of Industrial Activities of $1.3 billion-$1.5 billion.
Also Read: CNH Industrial Takes Core Satellite Navigation Technology In-House Via $175M Deal
Price Action: CNHI shares are trading higher by 2.71% at $14.00 on the last check Friday.

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CNH Industrial Q1: 15% Topline Growth, Earnings Beat, Three Key Acquisitions & More

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