Deere & Company posted Q2 FY25 net income of $1.804 billion ($6.64 per share), down 24% YoY, as global sales fell 16% to $12.76 billion.
The agricultural giant cited weaker shipment volumes, particularly in Production & Precision Agriculture, where sales dropped 21%.
Despite the decline, Deere beat analyst expectations, with revenue exceeding forecasts of $10.98 billion.
Market uncertainty prompted Deere to broaden its full-year net income forecast to $4.75 billion–$5.50 billion, adjusting from its previous $5.0 billion–$5.5 billion range. CEO John May emphasised strong execution across all segments, crediting employees and dealers for maintaining resilience amid challenging conditions. Deere remains focused on cost efficiency and strategic investments to navigate economic headwinds.
“As we navigate the current environment, our customers remain our top priority,” said May. “I’m incredibly proud of our team’s execution this quarter, delivering exceptional performance despite challenging market dynamics. Their dedication and hard work have been instrumental in ensuring our customers continue to receive the high-quality service and products they expect from John Deere.”
Stock performance was mixed. Deere shares rose 2.71% premarket to $511, before settling at $504.88, still up 1.48% on the day. Investors remain cautiously optimistic, watching Deere’s ability to sustain margins despite declining equipment demand. The company’s Smart Industrial Operating Model continues to drive long-term efficiency gains.
Looking ahead, Deere is doubling down on innovation, with significant U.S. investments planned over the next decade. The company is expanding its AI-driven solutions, reinforcing its position in precision agriculture and automation. Investors will be watching how Deere balances cost pressures with growth initiatives in an increasingly volatile global market.
“Despite the near-term market challenges, we remain confident in the future,” said May. “Our commitment to delivering value for our customers includes ongoing investment in advanced products, solutions, and manufacturing capabilities. Over the next decade, we will continue to make significant investments in our core U.S. market, underscoring our dedication to innovation and growth while focusing on remaining cost-competitive in a global market.”
At the time of writing, Deere & Co's (NYSE: DE) stock price was US$516.32, up $19.53 (3.93%) today, but down $0.32 (0.062%) in after-hours trading. It has a market cap of approximately $140.14 billion.
Deere & Company's 2Q 2025 earnings results
Forward-Looking Statements
Includes safe harbor provisions under the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are based on management's current beliefs and expectations.
Actual results may differ due to various risks and uncertainties, including agricultural business cycles and economic conditions.
2Q 2025 Results
Net Sales: $15,235 million, up from $12,763 million in 2Q 2024.
Net Income: $2,370 million, with diluted EPS of $8.53.
Equipment Operations: Net sales increased by 16% year-over-year.
Production Precision Ag
Net Sales: $6,581 million, operating profit of $1,650 million.
Operating profit comparison shows a mix of volume, price, and costs affecting results.
Small Ag Turf
Net Sales: $3,185 million, operating profit comparison shows a 6% increase.
Factors affecting results include volume, price, and costs.
Construction Forestry
Net Sales: $2,947 million, with a 23% increase year-over-year.
Operating profit comparison highlights various factors impacting performance.
Financial Services
2Q 2025 Net Income: $161 million, forecasted FY 2025 income around $750 million.
Reflects stable performance in financial services segment.
Deere & Company Outlook
FY 2025 forecast for net income: $4.75-5.50 billion.
Effective tax rate expected to be 20-22%.
Capital expenditures projected at ~$1.4 billion.
U.S. Sourcing by Geography
Complete Goods: 79% sourced from the U.S.
Components: 76% sourced from the U.S.
Retail Sales and Dealer Inventories
Retail sales for 2WD tractors and combines show growth exceeding industry averages.
Dealer inventories remain stable compared to previous year.
Deere Use-of-Cash Priorities
Committed to maintaining an "A" rating for financial stability.
Focus on funding growth needs, dividends, and potential share repurchase.
Brazil Investor Day 2025
Scheduled for June 10, 2025, to discuss growth opportunities.
3Q 2025 earnings call set for 14 August, 2025.
