Summary
Deere & Company (DE) reported a decrease in net sales and revenues for both the third quarter and the first nine months of fiscal year 2025 compared to the prior year, primarily driven by lower sales volumes across its key segments. Net income and diluted earnings per share also saw a significant decline, impacted by lower sales, higher tariffs, and unfavorable price realization. The company cited macroeconomic factors such as elevated interest rates, global uncertainty, and inventory levels as key headwinds. Despite the revenue and profit challenges, Deere & Company maintained a strong balance sheet with substantial cash and cash equivalents. The company continues to invest in technology and its "Smart Industrial Operating Model." Management expects lower sales volumes for fiscal 2025 compared to the prior year across agriculture and turf, as well as construction and forestry segments, citing persistent unfavorable market conditions. However, the company's financial services segment showed improved net income. Key risks and uncertainties remain, including global trade policies, interest rate volatility, the agricultural market business cycle, and ongoing legal proceedings such as the FTC lawsuit related to repair services. Investors should monitor the company's ability to navigate these challenges and capitalize on its technological advancements.
Financial Highlights
40 data points| Revenue | $12.02B |
| R&D Expenses | $556.00M |
| SG&A Expenses | $1.22B |
| Operating Expenses | $10.42B |
| Interest Expense | $794.00M |
| Net Income | $1.29B |
| EPS (Basic) | $4.76 |
| EPS (Diluted) | $4.75 |
| Shares Outstanding (Basic) | 270.70M |
| Shares Outstanding (Diluted) | 271.40M |
Key Highlights
- 1Net sales and revenues decreased by 9% to $12.0 billion for the third quarter and by 18% to $33.3 billion for the first nine months of fiscal 2025, primarily due to lower sales volumes.
- 2Net income attributable to Deere & Company decreased by 26% to $1.29 billion ($4.75 per diluted share) for the third quarter and by 32% to $3.96 billion ($14.57 per diluted share) for the first nine months of fiscal 2025.
- 3The Production and Precision Agriculture (PPA) segment saw a 16% decrease in net sales and a 50% decrease in operating profit for the quarter, driven by lower U.S. shipment volumes.
- 4The Construction and Forestry (CF) segment experienced a 5% decrease in net sales and a 47% decrease in operating profit for the quarter, impacted by unfavorable price realization and higher tariffs.
- 5Financial Services segment net income increased by 34% to $205 million for the third quarter, driven by a lower provision for credit losses and prior year special items.
- 6The company's balance sheet remains strong, with cash, cash equivalents, and marketable securities totaling $9.99 billion as of July 27, 2025.
- 7Deere & Company faces ongoing legal challenges, including a lawsuit filed by the FTC and several states alleging monopolization and unfair competition regarding repair services for its equipment.