CNH expects farm equipment demand to rebound in 2027

Tractor giant CNH Industrial NV has signaled a potential recovery for the farm machinery sector in 2027, driven by aging fleets and shrinking used-equipment inventories. Speaking on an August 3 earnings call, CEO Gerrit Marx emphasized that replacement demand—rather than discretionary spending—will likely carry the industry forward despite ongoing headwinds. Farmers are grappling with soaring fuel and fertilizer costs, drought conditions stretching from the U.S. Plains to Europe, and weaker confidence in crop yields. These pressures have already weighed on CNH’s agriculture sales across the Americas this year, though the company reported stronger performance in light and heavy construction machinery in North America and rising tractor sales in Asia Pacific. Marx highlighted Brazil as a potential bright spot amid the broader downturn. CNH also upgraded its 2026 financial outlook and posted better-than-expected second-quarter profit, sending its shares up as much as 17%—the largest single-day gain since 2020. The company’s brands include Case IH, New Holland, and Steyr. The announcement comes as rival Agco Corp. dialed back its own forecast last week and reshuffled leadership, including naming Damon Audia as president of its precision-planting brand PTx and corporate strategy, while Indira Agarwal took over as CFO. Agco’s PTx segment was formed after its $2 billion acquisition of Trimble Inc. assets in 2023 to expand its lineup of internet-connected farm machinery. Oppenheimer analyst Kristen Owen noted that the executive changes underscore the urgency of Agco’s business turnaround. Deere & Co., the industry leader, is set to release its earnings later in August, adding another layer of anticipation to the sector’s near-term outlook.