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DEERE & CO 8-K Report, Financial Results (May 15, 2025)

Reports
Earnings & Results·Regulation FD·Exhibits & Filings
Filing Date
Filed May 15, 2025
Period End
May 15, 2025
Security
DE
In the record · 2016–202610-K1110-Q348-K164

DE filed 11 annual reports (10-K), 34 quarterly reports (10-Q) and 164 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Jun ’17Jun ’17
  2. Leadership change8-K · Sep ’22Sep ’22
  3. Leadership change8-K · Jun ’26Jun ’26

01—Abstract

Summary

Summary of the 8-K filed May 15, 2025. Cited figures are marked; the original filing is the authoritative source.

Deere & Company's second quarter fiscal 2025 (ended April 27, 2025) was markedly weaker year over year.

Net income attributable to Deere fell 24% to $1.804 billiona ($6.64 per diluted share) from $2.370 billion ($8.53), and worldwide net sales and revenues declined 16% to $12.763 billion. For the first six months, net income fell 35% to $2.673 billion and revenues fell 22% to $21.272 billion. Equipment net sales dropped 18% for the quarter, with Production & Precision Ag down 21%, Small Ag & Turf down 6%, and Construction & Forestry down 23%.

Operating profit was down 26% in the quarter, driven mainly by lower shipment volumes and sales mix, unfavorable currency effects, and, per the release, incremental tariff costs that were partly offset by lower production costs and price realization. Financial Services net income was essentially flat at $161 millionb. Management widened its full-year fiscal 2025 net income guidance to a range of $4.75 billion to $5.50 billion, which reflects tariffs in effect as of May 13, 2025, and excludes potential future tariffs.

Segment guidance calls for net sales declines of 15%c to 20% in Production & Precision Ag, 10% to 15% in Small Ag & Turf, and 10% to 15% in Construction & Forestry. The industry outlook is weak, with U.S. and Canada large ag down roughly 30% and small ag and turf down 10% to 15%. Management also reiterated a commitment to an "A" credit rating and noted continued investment in its core U.S. market over the next decade.

For investors, the key issues are the sharp earnings contraction, the tariff exposure (which management says is only partly reflected in the outlook), and whether the full-year range holds if trade conditions worsen. Balance sheet and cash flow remain sound, with six-month operating cash flow of $568 milliond and cash of $7.991 billion, though operating cash flow was well below the prior year. Management also reported a $0.9 billion-plus reduction in share repurchases year over year ($838 million versus $2.422 billion for the six-month period).

02—Key points

Key Highlights

  1. Q2 FY2025 net income attributable to Deere fell 24% to $1.804 billion ($6.64 diluted EPS) versus $2.370 billion ($8.53) a year earlier.
  2. Total net sales and revenues declined 16% to $12.763 billion in Q2; six-month revenues fell 22% to $21.272 billion.
  3. Production & Precision Ag operating margin contracted to 22.0% from 25.1%, with operating profit down 30%; Construction & Forestry operating profit fell 43%.
  4. FY2025 net income guidance was set at $4.75 billion to $5.50 billion, excluding tariffs not yet in effect and any future tariff changes.
  5. Industry outlook calls for U.S. and Canada large ag down about 30%, with segment net sales guided down 10% to 20% across equipment businesses.
  6. Financial Services net income was flat at $161 million, with a higher credit loss provision offset by lower SA&G expenses.
  7. Share repurchases slowed sharply to $838 million in the first six months from $2.422 billion a year earlier, while operating cash flow fell to $568 million from $944 million.

03—Questions

Frequently Asked Questions

  1. Why did Deere's earnings decline so much in the second quarter?

    The decline was driven primarily by lower shipment volumes and unfavorable sales mix across the equipment segments, along with unfavorable currency effects and unfavorable price realization in Construction & Forestry. Additional tariff costs were included in production costs and partly offset year-over-year cost reductions.

  2. What is Deere's full-year fiscal 2025 earnings outlook?

    Management forecasts fiscal 2025 net income attributable to Deere of $4.75 billion to $5.50 billion. The outlook includes tariffs in effect as of May 13, 2025, but does not include potential future tariffs given the uncertain trade environment.

  3. How exposed is Deere to tariffs and trade policy?

    The filing identifies government trade policy, including increased and proposed U.S. tariffs and possible retaliatory measures, as a key risk factor. The company's U.S. sourcing data shows complete goods are about 79% U.S.-sourced, while components are about 76% U.S.-sourced, with Mexico at 10% and Europe at 6%. Tariffs beyond those in effect as of May 13, 2025 are not reflected in guidance.

  4. Is Deere's balance sheet and liquidity under pressure?

    Liquidity remains solid, with cash and equivalents of $7.991 billion at April 27, 2025, and total assets of $106.3 billion. However, short-term borrowings rose to $15.9 billion from $13.5 billion at fiscal year-end, and operating cash flow of $568 million for the first six months was well below the prior year's $944 million.

  5. What is the outlook for Deere's end markets?

    Deere expects U.S. and Canada large ag industry units to fall about 30%, small ag and turf to fall 10% to 15%, and European ag to fall about 5%. Construction equipment in the U.S. and Canada is forecast down about 10%, while South America and Asia ag are expected to be flat.

04—Continue

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