What are the primary reasons for the decline in Deere's sales and net income?

The decline in sales and net income is primarily due to lower sales volumes across the Production & Precision Agriculture, Small Agriculture & Turf, and Construction & Forestry segments. This is attributed to macroeconomic factors such as high interest rates, elevated used equipment inventory levels, and general market uncertainty, which are dampening customer demand.

How is the company managing the current economic headwinds and declining demand?

Deere is focusing on managing costs, optimizing product mix, and continuing to invest in technology and solutions-as-a-service. They are also actively monitoring global trade policies and interest rate environments, though these factors are largely outside of their direct control. The company has also benefited from discrete tax items which partially offset the decline in income.

What is the outlook for the remainder of the fiscal year?

The company anticipates continued lower sales volumes in its equipment segments for the remainder of fiscal year 2025 due to persistent economic headwinds. Demand for large agricultural equipment in North America is expected to decline, and while small agricultural equipment sales are projected to decrease, strong profitability is anticipated to continue in certain sub-sectors. Construction and forestry equipment sales are also forecasted to be down. The Financial Services segment's outlook anticipates stable net income.

What is the significance of the BJD deconsolidation?

In February 2025, Deere completed the sale of a 50% ownership in its Brazilian subsidiary, Banco John Deere S.A. (BJD), leading to its deconsolidation. This transaction impacts the company's financial services segment, with BJD's results now accounted for using the equity method and its assets and liabilities no longer fully consolidated on Deere's balance sheet.

DE 10-Q Quarterly Report Q2 FY2025 — Revenue, Net Income, EPS

Summary

Deere & Company (DE) reported a decrease in net sales and revenues for both the third fiscal quarter and the first six months of fiscal year 2025 compared to the prior year, primarily driven by lower sales volumes across its agriculture and turf, and construction and forestry segments. This decline is attributed to factors such as high interest rates, elevated used equipment inventory levels, and general market uncertainty. Consequently, net income and diluted earnings per share also saw a significant reduction. Despite the revenue and profit decline, the company's financial services segment remained relatively stable in the short term, with net income flat year-over-year for the quarter. The company provided an outlook for the remainder of fiscal year 2025, anticipating continued lower sales volumes in its equipment segments due to persistent economic headwinds. Management is actively managing costs and product mix to mitigate these impacts, while also highlighting ongoing investments in technology and solutions-as-a-service.

Financial Highlights

39 data points

Beta

Revenue

$12.76B

Net Income

$1.80B

0.1% Net Margin

EPS (Diluted)

$6.64

Total Assets

$106.30B

Cash & Equivalents

$7.99B

Free Cash Flow

$1.50B

Financial Statements

Beta

Revenue	$12.76B
R&D Expenses	$549.00M
SG&A Expenses	$1.20B
Operating Expenses	$10.43B
Interest Expense	$784.00M
Net Income	$1.80B
EPS (Basic)	$6.65
EPS (Diluted)	$6.64
Shares Outstanding (Basic)	271.10M
Shares Outstanding (Diluted)	271.80M

Key Highlights

1Net sales and revenues decreased by 16% for the quarter and 22% year-to-date, driven by lower sales volumes across major segments.
2Net income attributable to Deere & Company decreased by 24% for the quarter and 35% year-to-date.
3Diluted EPS fell to $6.64 for the quarter and $9.82 for the year-to-date period.
4The company is experiencing lower demand in Agriculture and Turf and Construction and Forestry segments due to high interest rates and inventory levels.
5The Financial Services segment showed resilience with relatively stable net income, though impacted by financing spreads and credit loss provisions.
6Deere & Company completed a transaction in February 2025, selling a 50% ownership in its Brazilian subsidiary, BJD, resulting in its deconsolidation.
7The company faces ongoing legal challenges, including a significant antitrust lawsuit filed by the FTC and several state Attorneys General.

DEERE & CO Quarterly Report for Q2 Ended Apr 27, 2025

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions