Deere & Company

08/14/2025 | Press release | Distributed by Public on 08/14/2025 04:09

Deere Reports Third Quarter Net Income of $1.289 Billion (Form 8-K)

Deere Reports Third Quarter Net Income of $1.289 Billion

● Disciplined execution yields solid results in the face of a challenging environment.
● Customers remain cautious amid ongoing uncertainty.
● Full-year net income guidance narrowed.

MOLINE, Illinois (August 14, 2025) - Deere & Company reported net income of $1.289 billion for the third quarter ended July 27, 2025, or $4.75 per share, compared with net income of $1.734 billion, or $6.29 per share, for the quarter ended July 28, 2024. For the first nine months of the year, net income attributable to Deere & Company was $3.962 billion, or $14.57 per share, compared with $5.855 billion, or $21.04 per share, for the same period last year.

Worldwide net sales and revenues decreased 9 percent, to $12.018 billion, for the third quarter of 2025 and decreased 18 percent, to $33.290 billion, for nine months. Net sales were $10.357 billion for the quarter and $28.338 billion for nine months, compared with $11.387 billion and $35.484 billion last year, respectively.

"By proactively managing inventory, we've matched production to retail demand, enabling our company and dealers to respond swiftly to market shifts and customer needs," said John May, chairman and CEO of John Deere. "By continuing to address the high levels of used equipment in the industry, we're building a healthier market for everyone-our customers, our dealers, and our business-even in these challenging times."

Company Outlook & Summary

Net income attributable to Deere & Company for fiscal 2025 is forecasted to be in a range of $4.75 billion to $5.25 billion.

"We remain committed to delivering solutions that address our customers' current needs while also laying the groundwork for future growth. For example, the increasing utilization and proven in-field effectiveness of advanced technologies-such as See & Spray and Harvest Settings Automation-are empowering customers to improve their productivity and better navigate industry challenges," May noted. "The positive outcomes we're enabling reinforce our confidence in Deere's future despite near-term uncertainty."

4

Deere & Company

Third Quarter

Year to Date

$ in millions, except per share amounts

2025

2024

% Change

2025

2024

% Change

Net sales and revenues

$

12,018

$

13,152

-9%

$

33,290

$

40,572

-18%

Net income

$

1,289

$

1,734

-26%

$

3,962

$

5,855

-32%

Fully diluted EPS

$

4.75

$

6.29

$

14.57

$

21.04

All periods presented were affected by special items. See Note 2 of the financial statements for further details. The cost of additional tariffs for each segment is included in the "Production costs" and "Other" categories below.

Production & Precision Agriculture

Third Quarter

$ in millions

2025

2024

% Change

Net sales

$

4,273

$

5,099

-16%

Operating profit

$

580

$

1,162

-50%

Operating margin

13.6%

22.8%

Production and precision agriculture sales decreased for the quarter as a result of lower shipment volumes and unfavorable price realization. Operating profit decreased primarily due to lower shipment volumes / sales mix.

Production & Precision Agriculture Operating Profit

Third Quarter 2025 Compared to Third Quarter 2024

$ in millions

5

Small Agriculture & Turf

Third Quarter

$ in millions

2025

2024

% Change

Net sales

$

3,025

$

3,053

-1%

Operating profit

$

485

$

496

-2%

Operating margin

16.0%

16.2%

Small agriculture and turf sales decreased for the quarter as a result of lower shipment volumes, partially offset by favorable currency translation and price realization. Operating profit decreased due to higher tariffs, partially offset by reductions in warranty expenses and lower production costs. The decreased production costs were primarily the result of lower material costs.

Small Agriculture & Turf Operating Profit

Third Quarter 2025 Compared to Third Quarter 2024

$ in millions

6

Construction & Forestry

Third Quarter

$ in millions

2025

2024

% Change

Net sales

$

3,059

$

3,235

-5%

Operating profit

$

237

$

448

-47%

Operating margin

7.7%

13.8%

Construction and forestry sales decreased for the quarter primarily due to unfavorable price realization. Operating profit decreased primarily due to unfavorable price realization and higher production costs caused by higher tariffs, partially offset by favorable product mix.

Construction & Forestry Operating Profit

Third Quarter 2025 Compared to Third Quarter 2024

$ in millions

Financial Services

Third Quarter

$ in millions

2025

2024

% Change

Net income

$

205

$

153

34%

Financial services net income for the quarter was higher due to a lower provision for credit losses and prior year special items.

7

Industry Outlook for Fiscal 2025

Agriculture & Turf

U.S. & Canada:

Large Ag

Down ~ 30%

Small Ag & Turf

Down ~ 10%

Europe

Flat to down 5%

South America (Tractors & Combines)

Flat

Asia

Flat to up 5%

Construction & Forestry

U.S. & Canada:

Construction Equipment

Down ~ 10%

Compact Construction Equipment

Flat to down 5%

Global Forestry

Flat to down 5%

Global Roadbuilding

Flat

Deere Segment Outlook for Fiscal 2025

Currency

Price

$ in millions

Net Sales

Translation

Realization

Production & Precision Ag

Down 15% to 20%

Down 1.0%

Up 1.0%

Small Ag & Turf

Down ~ 10%

Up 0.5%

Up 0.5%

Construction & Forestry

Down 10% to 15%

~ Flat

Down 2.0%

Financial Services

Net Income

~ $770

8

FORWARD-LOOKING STATEMENTS

Certain statements contained herein, including in the section entitled "Company Outlook & Summary," "Industry Outlook for Fiscal 2025," "Deere Segment Outlook for Fiscal 2025," and "Condensed Notes to Interim Consolidated Financial Statements" relating to future events, expectations, forecasted financial and industry results, future investment and trends constitute "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 and involve factors that are subject to change, assumptions, risks, and uncertainties that could cause actual results to differ materially. Some of these risks and uncertainties could affect all lines of the company's operations generally while others could more heavily affect a particular line of business.

Deere & Company published this content on August 14, 2025, and is solely responsible for the information contained herein. Distributed via Edgar on August 14, 2025 at 10:10 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]