10-KPeriod: FY2025

DEERE & CO Annual Report, Year Ended Nov 2, 2025

Filed December 18, 2025For Securities:DE

Summary

Deere & Company's fiscal year 2025 filing indicates a challenging period characterized by declining net sales and income, primarily driven by unfavorable market conditions impacting the agricultural and construction sectors. Factors such as higher interest rates, increased tariffs (contributing approximately $600 million to costs), and elevated used equipment inventory levels led to lower sales volumes and increased reliance on sales incentives. Despite these headwinds, the company continued to invest in its Smart Industrial Operating Model and Leap Ambitions, focusing on technology integration to enhance customer value. The outlook for fiscal year 2026 anticipates subdued large agriculture sales in North America, though a potential improvement is expected in the small agriculture & turf and construction & forestry segments. The company's Financial Services segment saw a significant increase in net income, driven by special items, lower expenses, favorable financing spreads, and a lower provision for credit losses. Deere & Company maintains a strong liquidity position and is strategically managing its capital, as evidenced by reduced share repurchases. However, ongoing geopolitical risks, global trade policy uncertainties, and a pending legal case regarding repair services remain key areas of focus for investors.

Financial Statements
Beta
Revenue$45.68B
R&D Expenses$2.31B
SG&A Expenses$4.66B
Operating Expenses$39.43B
Interest Expense$3.17B
Net Income$5.03B
EPS (Basic)$18.55
EPS (Diluted)$18.50
Shares Outstanding (Basic)270.90M
Shares Outstanding (Diluted)271.70M

Key Highlights

  • 1Decline in Net Income and Sales in FY2025 due to unfavorable market conditions, tariffs, and higher interest rates.
  • 2Anticipated subdued demand for large agriculture equipment in North America for FY2026, with modest improvement expected in Small Agriculture & Turf and Construction & Forestry segments.
  • 3Financial Services segment reported a significant increase in Net Income due to special items, favorable financing spreads, and reduced credit loss provisions.
  • 4Company incurred approximately $600 million in direct costs due to incremental import tariffs in FY2025.
  • 5Company is actively managing its capital resources, evidenced by reduced share repurchases to navigate the economic cycle.
  • 6Ongoing legal proceedings regarding repair services for agricultural equipment pose a potential risk.
  • 7Despite current challenges, the company continues to invest in its Smart Industrial Operating Model and Leap Ambitions, focusing on technology integration.

Frequently Asked Questions

Deere & Company experienced a decline in net income and net sales in fiscal year 2025, primarily due to unfavorable market conditions in the agricultural and construction sectors. Key factors included higher interest rates, new tariffs impacting costs, and elevated levels of used equipment inventory. These elements led to lower sales volumes and a greater reliance on sales incentives.

The outlook for fiscal year 2026 anticipates continued subdued demand for large agriculture equipment in North America. However, the company expects improvements in the Small Agriculture & Turf and Construction & Forestry segments. The Financial Services segment is projected to see a decrease in net income compared to the prior period.

In fiscal year 2025, Deere & Company incurred approximately $600 million in direct costs due to incremental import tariffs. The company expects these trade policies to continue impacting product costs and profitability in 2026 and is taking steps to mitigate these impacts.

Yes, Deere & Company is involved in a consolidated multidistrict class action lawsuit, joined by the Federal Trade Commission and several state Attorneys General, alleging monopolization and unfair competition in the market for repair services of John Deere agricultural equipment. The company is in preliminary discussions with the FTC regarding a potential resolution, but the outcome and impact remain unpredictable.