CNH Unveils Ambitious Strategic Business Plan Aiming for Global Product Leadership and Margin Expansion
09 April 2025, Basildon: CNH has announced a bold new Strategic Business Plan (SBP) during its Investor Day 2025, laying out a detailed roadmap to consolidate its position among the top global players in the agriculture and construction equipment sectors. The plan sets forth aggressive goals including securing the #1 or #2 market position in all major agriculture markets, expanding its mid-cycle adjusted EBIT margins, and significantly enhancing operational efficiencies.
CEO Gerrit Marx introduced the strategy’s four key pillars: advancing the integration of equipment and technology (Iron + Tech), expanding profit margins, fortifying the company’s construction business, and boosting shareholder returns through industrial cash flow growth. Marx emphasized the company’s clear vision, stating, “We are committed to delivering strong growth, in tandem with our cost efficiency targets. We have demonstrated our capability to deliver steady margin improvements in the past, and we will take that to the next level in this new phase of our journey.”
A major focus of the plan is technological leadership in agriculture. CNH aims to nearly double Precision Tech sales as a percentage of total agriculture revenue by 2030. With 90% of these technologies to be developed in-house by the end of the plan period, the company is embedding advanced AI, automation, satellite connectivity, and agronomic insights across its product range. Its flagship digital platform, FieldOps™, is at the center of this transformation, offering integrated machine data and smart farming tools to optimize farm operations.
The SBP includes a comprehensive refresh of CNH’s tractor portfolio, spanning 20 to over 700 horsepower, alongside expansion of its harvester lineup. Notably, its next-generation combines, launched in 2024, are already reducing total cost of ownership by 15% for farmers. CNH is also enhancing customer service and dealer support, rolling out a new dual-brand strategy involving Case IH, New Holland, and STEYR. The plan includes investing approximately 100 basis points of annual margin into growth-oriented dealers, boosting field service, predictive maintenance, and aiming for near-total equipment uptime.
On the financial front, CNH is targeting a 16-17% Agriculture mid-cycle adjusted EBIT margin by 2030. This will be driven by commercial initiatives, better product mix through tech-driven products, and major cost reductions totaling over $550 million. In the construction segment, CNH plans to reach a 7-8% margin by focusing on strategic brand growth, aftermarket services, and manufacturing and sourcing improvements. The construction strategy hinges on leveraging the strong reputation of brands like CASE Construction Equipment, New Holland Construction, and Eurocomach, with a concentrated push in North and South American markets.
Beyond product and market strategies, CNH aims to increase through-cycle Industrial Free Cash Flow by 25%. The plan includes a commitment to returning most of this capital to shareholders via dividends and share buybacks, while maintaining a strong investment-grade credit rating. Strategic mergers and acquisitions remain on the table for reinforcing competitiveness and entering new markets.
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