CNH Industrial Finance Europe S.A., a subsidiary of CNH Industrial N.V., announced that it will redeem all outstanding 1.875 % notes due January 19 2026. The redemption, scheduled for December 29 2025, will be executed at the principal amount plus accrued but unpaid interest, effectively removing the debt from the company’s balance sheet.
The notes carry a 1.875 % coupon and were originally issued to finance CNH’s global operations. The total principal amount of the notes was not disclosed in the announcement. By redeeming them early, CNH eliminates the annual interest expense and reduces its long‑term debt load. As of September 2025, the company’s debt‑to‑equity ratio stood at 3.55; the redemption is expected to lower that ratio, although the exact post‑redemption figure has not been released.
The move aligns with CNH’s Strategic Business Plan, which prioritizes organic growth, margin expansion, and maintaining an investment‑grade rating. In a capital‑goods market that is experiencing a cyclical downturn, the company’s focus on financial discipline is intended to preserve resilience and free cash flow for technology and operational investments.
Management emphasized the importance of navigating headwinds. CEO Gerrit Marx noted that “while the current trade environment remains challenging for our farmers and builders, CNH continues to take decisive actions to navigate near‑term headwinds.” The redemption is part of that broader strategy to reduce debt and improve financial flexibility.
Market reaction to the redemption itself was muted, as the announcement was a routine balance‑sheet optimization. However, CNH’s Q3 2025 earnings had an EPS miss, which contributed to broader market volatility. By cutting future interest costs, the redemption is expected to support the company’s long‑term financial health.
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