v3.26.1
SEGMENT REPORTING
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
The Company operates three reportable segments: Agriculture, Construction, and Financial Services. The Agriculture and Construction segments are collectively referred to as "Industrial Activities". Segment information is prepared in accordance with the internal reporting provided to the Chief Operating Decision Maker (the "CODM"). The CODM evaluates the Agriculture and Construction segments based on Adjusted Earnings before Interest and Taxes ("EBIT") and evaluates the Financial Services segment based on Income before income taxes. Adjusted EBIT is a non-GAAP financial measure. A reconciliation to the most directly comparable GAAP measure is provided in Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations". There were no changes to the Company’s reportable segments or to the methods used to measure segment results during the quarter.
Three Months Ended June 30, 2026
AgricultureConstructionFinancial ServicesTotal
Net sales $3,277 $866 $— 
Finance, interest and other income (Financial Services)— — 656 
Total Revenues 3,277 866 656 
Cost of goods sold (2,633)(763)— 
Selling, general and administrative expenses(1)
(279)(59)(129)
Research and development expenses(201)(29)— 
Interest expense (Financial Services) — — (327)
Other, net (Financial Services) — — (118)
Equity income from joint ventures 6 — 6 
Adjusted EBIT [A]
170 15 n/a
Income before income taxes [B]
n/an/a88 
Segment profit (loss) [C=A+B]
$273 
Interest expenses, net (excluding Financial Services)$(41)
Restructuring and other transformation expenses (Industrial Activities)(27)
Foreign exchange losses, net (Industrial Activities)(1)
Finance and non-service component of Pension and other postemployment benefit costs (Industrial Activities)(2)
Unallocated amounts(18)
Income tax expense(43)
Net income$141 
Three Months Ended June 30, 2025
AgricultureConstructionFinancial ServicesTotal
Net sales $3,248 $773 $— 
Finance, interest and other income (Financial Services)— — 685 
Total Revenues 3,248 773 685 
Cost of goods sold (2,540)(652)— 
Selling, general and administrative expenses(1)
(265)(62)(114)
Research and development expenses(194)(24)— 
Interest expense (Financial Services) — — (329)
Other, net (Financial Services) — — (134)
Equity income from joint ventures14 — 4 
Adjusted EBIT [A]
263 35 n/a
Income before income taxes [B]
n/an/a112 
Segment profit [C=A+B]
$410 
Interest expenses, net (excluding Financial Services)$(26)
Restructuring and other transformation expenses (Industrial Activities)(5)
Foreign exchange losses, net (Industrial Activities)(9)
Finance and non-service component of Pension and other postemployment benefit costs (Industrial Activities)(3)
Unallocated amounts(74)
Income tax expense(76)
Net income$217 
Six Months Ended June 30, 2026
AgricultureConstructionFinancial ServicesTotal
Net sales $5,873 $1,440 $— 
Finance, interest and other income — — 1,302 
Total Revenues 5,873 1,440 1,302 
Cost of goods sold (4,732)(1,269)— 
Selling, general and administrative expenses(1)
(542)(128)(237)
Research and development expenses(406)(56)— 
Interest expense (Financial Services) — — (659)
Other, net (Financial Services) — — (227)
Equity income from joint ventures4 — 9 
Adjusted EBIT [A]
197 (13)n/a
Income before income taxes [B]
n/an/a188 
Segment profit/(loss) [C=A+B]
$372 
Interest expenses, net (excluding Financial Services)$(64)
Restructuring and other transformation expenses (Industrial Activities)(31)
Foreign exchange losses, net (Industrial Activities)(3)
Finance and non-service component of Pension and other postemployment benefit costs (Industrial Activities)(6)
Unallocated amounts(62)
Discrete items excluded from segments(8)
Income tax expense(47)
Net income$151 
Six Months Ended June 30, 2025
AgricultureConstructionFinancial ServicesTotal
Net sales $5,829 $1,364 $— 
Finance, interest and other income — — 1,336 
Total Revenues 5,829 1,364 1,336 
Cost of goods sold (4,606)(1,155)— 
Selling, general and administrative expenses(1)
(490)(115)(195)
Research and development expenses(357)(45)— 
Interest expense (Financial Services) — — (661)
Other, net (Financial Services) — — (259)
Equity income from joint ventures26 — 9 
Adjusted EBIT [A]
402 49 n/a
Income before income taxes [B]
n/an/a230 
Segment profit [C=A+B]
$681 
Interest expenses, net (excluding Financial Services)$(51)
Restructuring and other transformation expenses (Industrial Activities)(11)
Foreign exchange losses, net (Industrial Activities)(14)
Finance and non-service component of Pension and other postemployment benefit costs (Industrial Activities)(7)
Unallocated amounts(126)
Income tax expense(123)
Net income$349 
(1)For the three and six months ended June 30, 2026, this item included risk costs for the Financial Services segment of $91 million and $165 million, respectively, and $81 million and $131 million for the three and six months ended June 30, 2025.
There are no segment assets reported to the CODM for assessing performance and allocating resources. However, the CODM reviews expenditures for long-lived assets by operating segment, therefore, this information is presented below.
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Revenues
Agriculture$3,277 $3,248 $5,873 $5,829 
Construction866 773 1,440 1,364 
Net sales4,143 4,021 7,313 7,193 
Financial Services656 685 1,302 1,336 
Eliminations and other4 5 14 10 
Total Revenues$4,803 $4,711 $8,629 $8,539 
Depreciation and amortization(1)
Agriculture$101 $92 $201 $180 
Construction14 12 28 25 
Other activities and adjustments— 1 1 1 
Depreciation and amortization of Industrial Activities 115 105 230 206 
Financial Services2 1 3 2 
Total Depreciation and amortization$117 $106 $233 $208 
Capital expenditures for property, plant and equipment and intangible assets
Agriculture$104 $73 $189 $165 
Construction10 15 17 26 
Total Industrial Activities capital expenditures114 88 206 191 
Financial Services3 2 4 5 
Total capital expenditures$117 $90 $210 $196 
(1)Excluding operating lease right-of-use assets and related lease amortization.
June 30, 2026December 31, 2025
Inventories
Agriculture$3,977 $3,635 
Construction1,105 928 
Financial Services89 88 
Total Inventories, net
$5,171 $4,651 
Equity method investments
Agriculture$270 $255 
Financial Services151 146 
Total Equity method investments$421 $401