Deere Reports Second Quarter Net Income of $1.804 Billion
- Disciplined execution drives strong quarterly performance across all segments.
- Employees and dealers showcase resilience in supporting customers amidst heightened uncertainty.
- Full-year net income range broadened in response to dynamic environment.
MOLINE, Ill., May 15, 2025 /CNW/ -- Deere & Company reported net income of $1.804 billion for the second quarter ended April 27, 2025, or $6.64 per share, compared with net income of $2.370 billion, or $8.53 per share, for the quarter ended April 28, 2024. For the first six months of the year, net income attributable to Deere & Company was $2.673 billion, or $9.82 per share, compared with $4.121 billion, or $14.74 per share, for the same period last year.
Worldwide net sales and revenues decreased 16 percent, to $12.763 billion, for the second quarter of 2025 and decreased 22 percent, to $21.272 billion, for six months. Net sales were $11.171 billion for the quarter and $17.980 billion for six months, compared with $13.610 billion and $24.097 billion last year, respectively.
"As we navigate the current environment, our customers remain our top priority," said John May, chairman and CEO of John Deere. "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."
Company Outlook & Summary
Net income attributable to Deere & Company for fiscal 2025 is forecasted to be in a range of $4.75 billion to $5.50 billion.
"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."
Deere & Company | Second Quarter | Year to Date | |||||||||||||||
$ in millions, except per share amounts | 2025 | 2024 | % Change | 2025 | 2024 | % Change | |||||||||||
Net sales and revenues | $ | 12,763 | $ | 15,235 | -16 % | $ | 21,272 | $ | 27,420 | -22 % | |||||||
Net income | $ | 1,804 | $ | 2,370 | -24 % | $ | 2,673 | $ | 4,121 | -35 % | |||||||
Fully diluted EPS | $ | 6.64 | $ | 8.53 | $ | 9.82 | $ | 14.74 | |||||||||
Current period results were affected by special items. See Note 1 of the financial statements for further details. The cost of additional tariffs for each segment is included in the production costs and other items below, partially offsetting year-over-year cost reduction in these categories.
Production & Precision Agriculture | Second Quarter | ||||||||
$ in millions | 2025 | 2024 | % Change | ||||||
Net sales | $ | 5,230 | $ | 6,581 | -21 % | ||||
Operating profit | $ | 1,148 | $ | 1,650 | -30 % | ||||
Operating margin | 22.0 % | 25.1 % | |||||||
Production and precision agriculture sales decreased for the quarter as a result of lower shipment volumes. Operating profit decreased due to lower shipment volumes / sales mix and the unfavorable effects of foreign currency exchange, partially offset by lower production costs and price realization.
Small Agriculture & Turf | Second Quarter | ||||||||
$ in millions | 2025 | 2024 | % Change | ||||||
Net sales | $ | 2,994 | $ | 3,185 | -6 % | ||||
Operating profit | $ | 574 | $ | 571 | 1 % | ||||
Operating margin | 19.2 % | 17.9 % | |||||||
Small agriculture and turf sales decreased for the quarter as a result of lower shipment volumes, partially offset by price realization. Operating profit held steady as favorable factors including lower production costs, lower warranty expenses, and price realization were offset by lower shipment volumes / sales mix.
Construction & Forestry | Second Quarter | ||||||||
$ in millions | 2025 | 2024 | % Change | ||||||
Net sales | $ | 2,947 | $ | 3,844 | -23 % | ||||
Operating profit | $ | 379 | $ | 668 | -43 % | ||||
Operating margin | 12.9 % | 17.4 % | |||||||
Construction and forestry sales decreased for the quarter due to lower shipment volumes. Operating profit decreased primarily due to lower shipment volumes / sales mix and unfavorable price realization.
Financial Services | Second Quarter | ||||||||
$ in millions | 2025 | 2024 | % Change | ||||||
Net income | $ | 161 | $ | 162 | -1 % | ||||
Financial services net income for the quarter was flat due to less-favorable financing spreads and a higher provision for credit losses, offset by lower SA&G expenses and a reduction in derivative valuation adjustments.
Industry Outlook for Fiscal 2025 | |||||||
Agriculture & Turf | |||||||
U.S. & Canada: | |||||||
Large Ag | Down ~ 30% | ||||||
Small Ag & Turf | Down 10-15% | ||||||
Europe | Down ~ 5% | ||||||
South America (Tractors & Combines) | Flat | ||||||
Asia | Flat | ||||||
Construction & Forestry | |||||||
U.S. & Canada: | |||||||
Construction Equipment | Down ~ 10% | ||||||
Compact Construction Equipment | Down ~ 5% | ||||||
Global Forestry | Flat to down 5% | ||||||
Global Roadbuilding | Flat |
Deere Segment Outlook for Fiscal 2025
The Deere & Company outlook incorporates the impacts from global import tariffs that are in effect as of May 13, 2025. Due to the uncertain global trade environment, the potential impacts of future tariffs are not included in the outlook.
Currency | Price | ||||||
$ in millions | Net Sales | Translation | Realization | ||||
Production & Precision Ag | Down 15% to 20% | Down 1.5% | Up 1.0% | ||||
Small Ag & Turf | Down 10% to 15% | ~ Flat | Up 0.5% | ||||
Construction & Forestry | Down 10% to 15% | ~ Flat | Down 1.0% | ||||
Financial Services | Net Income | ~$ 750 |
FORWARD-LOOKING STATEMENTS
Certain statements contained herein, including in the section entitled "Company Outlook & Summary," "Industry Outlook for Fiscal 2025," "Deere Segment Outlook for Fiscal 2025," and "Condensed Notes to Interim Consolidated Financial Statements" relating to future events, expectations, forecasted financial and industry results, future investment and trends constitute "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 and involve factors that are subject to change, assumptions, risks, and uncertainties that could cause actual results to differ materially. Some of these risks and uncertainties could affect all lines of the company's operations generally while others could more heavily affect a particular line of business.
Forward-looking statements are based on currently available information and current assumptions, expectations, and projections about future events and should not be relied upon. Except as required by law, the company expressly disclaims any obligation to update or revise its forward-looking statements. Many factors, risks, and uncertainties could cause actual results to differ materially from these forward-looking statements. Among these factors are risks related to:
- government policies and actions with respect to the global trade environment including increased and proposed tariffs announced by the U.S. government, any potential retaliatory trade regulations, tariffs and policies and the uncertainty of the company's ability to sell products domestically or internationally, continue production at certain international facilities, procure raw materials and components, accurately forecast demand and inventory, manage increased costs of production, absorb or pass on increased pricing, accurately predict financial results and industry trends, and remain competitive based on these trade actions, policies and general economic uncertainty;
- the agricultural business cycle, which can be unpredictable and is affected by factors such as world grain stocks, harvest yields, available farm acres, acreage planted, soil conditions, prices for commodities and livestock, input costs, availability of transport for crops as well as adverse macroeconomic conditions, including unemployment, inflation, interest rate volatility, changes in consumer practices due to slower economic growth or a recession and regional or global liquidity constraints;
- higher interest rates and currency fluctuations which could adversely affect the U.S. dollar, customer confidence, access to capital, and demand for the company's products and solutions;
- the company's ability to adapt in highly competitive markets, including understanding and meeting customers' changing expectations for products and solutions, including delivery and utilization of precision technology;
- housing starts and supply, real estate and housing prices, levels of public and non-residential construction, and infrastructure investment;
- political, economic, and social instability of the geographies in which the company operates, including the ongoing war between Russia and Ukraine, the conflict between India and Pakistan, and the conflicts in the Middle East;
- worldwide demand for food and different forms of renewable energy impacting the price of farm commodities and consequently the demand for the company's equipment;
- investigations, claims, lawsuits, or other legal proceedings, including the lawsuit filed by the Federal Trade Commission (FTC) and the Attorneys General of the States of Arizona, Illinois, Michigan, Minnesota, and Wisconsin alleging that the company unlawfully withheld self-repair capabilities from farmers and independent repair providers;
- delays or disruptions in the company's supply chain;
- changes in climate patterns, unfavorable weather events, and natural disasters;
- availability and price of raw materials, components, and whole goods;
- suppliers' and manufacturers' business practices and compliance with applicable laws such as human rights, safety, environmental, and fair wages;
- loss of or challenges to intellectual property rights;
- rationalization, restructuring, relocation, expansion and/or reconfiguration of manufacturing and warehouse facilities;
- the ability to execute business strategies, including the company's Smart Industrial Operating Model and Leap Ambitions;
- accurately forecasting customer demand for products and services and adequately managing inventory;
- dealer practices and their ability to manage inventory and distribution of the company's products and to provide support and service for precision technology solutions;
- the ability to realize anticipated benefits of acquisitions and joint ventures, including challenges with successfully integrating operations and internal control processes;
- negative claims or publicity that damage the company's reputation or brand;
- the ability to attract, develop, engage, and retain qualified employees;
- the impact of workforce reductions on company culture, employee retention and morale, and institutional knowledge;
- labor relations and contracts, including work stoppages and other disruptions;
- security breaches, cybersecurity attacks, technology failures, and other disruptions to the company's information technology infrastructure and products;
- leveraging artificial intelligence and machine learning within the company's business processes;
- changes to governmental communications channels (radio frequency technology);
- changes to existing laws and regulations, including the implementation of new, more stringent laws, as well as compliance with a variety of U.S., foreign and international laws, regulations, and policies relating to, but not limited to the following: advertising, anti-bribery and anti-corruption, anti-money laundering, antitrust, consumer finance, cybersecurity, data privacy, encryption, environmental (including climate change and engine emissions), farming, health and safety, foreign exchange controls and cash repatriation restrictions, foreign ownership and investment, human rights, import / export and trade, tariffs, labor and employment, product liability, telematics, and telecommunications;
- governmental and other actions designed to address climate change in connection with a transition to a lower-carbon economy; and
- warranty claims, post-sales repairs or recalls, product liability litigation, and regulatory investigations as a result of the deficient operation of the company's products.
Further information concerning the company or its businesses, including factors that could materially affect the company's financial results, is included in the company's filings with the SEC (including, but not limited to, the factors discussed in Item 1A. "Risk Factors" of the company's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q). There also may be other factors that the company cannot anticipate or that are not described herein because the company does not currently perceive them to be material.
DEERE & COMPANY | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
April 27 | April 28 | % | April 27 | April 28 | % | ||||||||||||
2025 | 2024 | Change | 2025 | 2024 | Change | ||||||||||||
Net sales and revenues: | |||||||||||||||||
Production & precision ag net sales | $ | 5,230 | $ | 6,581 | -21 | $ | 8,297 | $ | 11,430 | -27 | |||||||
Small ag & turf net sales | 2,994 | 3,185 | -6 | 4,742 | 5,610 | -15 | |||||||||||
Construction & forestry net sales | 2,947 | 3,844 | -23 | 4,941 | 7,057 | -30 | |||||||||||
Financial services revenues | 1,385 | 1,395 | -1 | 2,856 | 2,770 | +3 | |||||||||||
Other revenues | 207 | 230 | -10 | 436 | 553 | -21 | |||||||||||
Total net sales and revenues | $ | 12,763 | $ | 15,235 | -16 | $ | 21,272 | $ | 27,420 | -22 | |||||||
Operating profit: * | |||||||||||||||||
Production & precision ag | $ | 1,148 | $ | 1,650 | -30 | $ | 1,486 | $ | 2,695 | -45 | |||||||
Small ag & turf | 574 | 571 | +1 | 698 | 897 | -22 | |||||||||||
Construction & forestry | 379 | 668 | -43 | 444 | 1,234 | -64 | |||||||||||
Financial services | 207 | 209 | -1 | 473 | 466 | +2 | |||||||||||
Total operating profit | 2,308 | 3,098 | -26 | 3,101 | 5,292 | -41 | |||||||||||
Reconciling items ** | 35 | 23 | +52 | 138 | 49 | +182 | |||||||||||
Income taxes | (539) | (751) | -28 | (566) | (1,220) | -54 | |||||||||||
Net income attributable to Deere & Company | $ | 1,804 | $ | 2,370 | -24 | $ | 2,673 | $ | 4,121 | -35 | |||||||
* | Operating profit is income from continuing operations before corporate expenses, certain external interest expenses, certain foreign exchange gains and losses, and income taxes. Operating profit of financial services includes the effect of interest expense and foreign exchange gains and losses. |
** | Reconciling items are primarily corporate expenses, certain interest income and expenses, certain foreign exchange gains and losses, pension and postretirement benefit costs excluding the service cost component, and net income attributable to noncontrolling interests. |
DEERE & COMPANY | |||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||
Net Sales and Revenues | |||||||||||||
Net sales | $ | 11,171 | $ | 13,610 | $ | 17,980 | $ | 24,097 | |||||
Finance and interest income | 1,354 | 1,387 | 2,807 | 2,746 | |||||||||
Other income | 238 | 238 | 485 | 577 | |||||||||
Total | 12,763 | 15,235 | 21,272 | 27,420 | |||||||||
Costs and Expenses | |||||||||||||
Cost of sales | 7,609 | 9,157 | 12,646 | 16,357 | |||||||||
Research and development expenses | 549 | 565 | 1,075 | 1,098 | |||||||||
Selling, administrative and general expenses | 1,197 | 1,265 | 2,169 | 2,330 | |||||||||
Interest expense | 784 | 836 | 1,614 | 1,638 | |||||||||
Other operating expenses | 287 | 295 | 536 | 664 | |||||||||
Total | 10,426 | 12,118 | 18,040 | 22,087 | |||||||||
Income of Consolidated Group before Income Taxes | 2,337 | 3,117 | 3,232 | 5,333 | |||||||||
Provision for income taxes | 539 | 751 | 566 | 1,220 | |||||||||
Income of Consolidated Group | 1,798 | 2,366 | 2,666 | 4,113 | |||||||||
Equity in income of unconsolidated affiliates | 3 | 2 | 1 | 3 | |||||||||
Net Income | 1,801 | 2,368 | 2,667 | 4,116 | |||||||||
Less: Net loss attributable to noncontrolling interests | (3) | (2) | (6) | (5) | |||||||||
Net Income Attributable to Deere & Company | $ | 1,804 | $ | 2,370 | $ | 2,673 | $ | 4,121 | |||||
Per Share Data | |||||||||||||
Basic | $ | 6.65 | $ | 8.56 | $ | 9.85 | $ | 14.80 | |||||
Diluted | 6.64 | 8.53 | 9.82 | 14.74 | |||||||||
Dividends declared | 1.62 | 1.47 | 3.24 | 2.94 | |||||||||
Dividends paid | 1.62 | 1.47 | 3.09 | 2.82 | |||||||||
Average Shares Outstanding | |||||||||||||
Basic | 271.1 | 276.8 | 271.3 | 278.4 | |||||||||
Diluted | 271.8 | 277.9 | 272.1 | 279.5 | |||||||||
See Condensed Notes to Interim Consolidated Financial Statements. |
DEERE & COMPANY | |||||||||
April 27 | October 27 | April 28 | |||||||
2025 | 2024 | 2024 | |||||||
Assets | |||||||||
Cash and cash equivalents | $ | 7,991 | $ | 7,324 | $ | 5,553 | |||
Marketable securities | 1,272 | 1,154 | 1,094 | ||||||
Trade accounts and notes receivable – net | 6,748 | 5,326 | 8,880 | ||||||
Financing receivables – net | 43,029 | 44,309 | 45,278 | ||||||
Financing receivables securitized – net | 7,765 | 8,723 | 7,262 | ||||||
Other receivables | 2,975 | 2,545 | 2,535 | ||||||
Equipment on operating leases – net | 7,336 | 7,451 | 6,965 | ||||||
Inventories | 7,870 | 7,093 | 8,443 | ||||||
Property and equipment – net | 7,555 | 7,580 | 7,034 | ||||||
Goodwill | 4,094 | 3,959 | 3,936 | ||||||
Other intangible assets – net | 964 | 999 | 1,064 | ||||||
Retirement benefits | 3,133 | 2,921 | 3,056 | ||||||
Deferred income taxes | 2,088 | 2,086 | 1,936 | ||||||
Other assets | 3,483 | 2,906 | 2,592 | ||||||
Assets held for sale | 2,944 | ||||||||
Total Assets | $ | 106,303 | $ | 107,320 | $ | 105,628 | |||
Liabilities and Stockholders' Equity | |||||||||
Liabilities | |||||||||
Short-term borrowings | $ | 15,948 | $ | 13,533 | $ | 17,699 | |||
Short-term securitization borrowings | 7,562 | 8,431 | 6,976 | ||||||
Accounts payable and accrued expenses | 13,345 | 14,543 | 14,609 | ||||||
Deferred income taxes | 496 | 478 | 491 | ||||||
Long-term borrowings | 42,811 | 43,229 | 40,962 | ||||||
Retirement benefits and other liabilities | 1,763 | 2,354 | 2,105 | ||||||
Liabilities held for sale | 1,827 | ||||||||
Total liabilities | 81,925 | 84,395 | 82,842 | ||||||
Redeemable noncontrolling interest | 83 | 82 | 98 | ||||||
Stockholders' Equity | |||||||||
Total Deere & Company stockholders' equity | 24,287 | 22,836 | 22,684 | ||||||
Noncontrolling interests | 8 | 7 | 4 | ||||||
Total stockholders' equity | 24,295 | 22,843 | 22,688 | ||||||
Total Liabilities and Stockholders' Equity | $ | 106,303 | $ | 107,320 | $ | 105,628 | |||
See Condensed Notes to Interim Consolidated Financial Statements. |
DEERE & COMPANY | ||||||
2025 | 2024 | |||||
Cash Flows from Operating Activities | ||||||
Net income | $ | 2,667 | $ | 4,116 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Provision for credit losses | 174 | 131 | ||||
Provision for depreciation and amortization | 1,104 | 1,045 | ||||
Impairments and other adjustments | (32) | |||||
Share-based compensation expense | 54 | 104 | ||||
Provision (credit) for deferred income taxes | 11 | (120) | ||||
Changes in assets and liabilities: | ||||||
Receivables related to sales | (1,069) | (2,469) | ||||
Inventories | (772) | (409) | ||||
Accounts payable and accrued expenses | (898) | (1,300) | ||||
Accrued income taxes payable/receivable | (147) | (29) | ||||
Retirement benefits | (794) | (208) | ||||
Other | 270 | 83 | ||||
Net cash provided by operating activities | 568 | 944 | ||||
Cash Flows from Investing Activities | ||||||
Collections of receivables (excluding receivables related to sales) | 14,348 | 13,703 | ||||
Proceeds from maturities and sales of marketable securities | 245 | 200 | ||||
Proceeds from sales of equipment on operating leases | 1,001 | 1,011 | ||||
Cost of receivables acquired (excluding receivables related to sales) | (12,744) | (14,091) | ||||
Purchases of marketable securities | (347) | (432) | ||||
Purchases of property and equipment | (555) | (719) | ||||
Cost of equipment on operating leases acquired | (1,254) | (1,369) | ||||
Collections of receivables from unconsolidated affiliates | 234 | |||||
Collateral on derivatives – net | 27 | 96 | ||||
Other | (176) | (69) | ||||
Net cash provided by (used for) investing activities | 779 | (1,670) | ||||
Cash Flows from Financing Activities | ||||||
Net proceeds in short-term borrowings (original maturities three months or less) | 551 | 58 | ||||
Proceeds from borrowings issued (original maturities greater than three months) | 5,156 | 10,189 | ||||
Payments of borrowings (original maturities greater than three months) | (4,837) | (8,139) | ||||
Repurchases of common stock | (838) | (2,422) | ||||
Dividends paid | (843) | (796) | ||||
Other | (10) | (52) | ||||
Net cash used for financing activities | (821) | (1,162) | ||||
Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash | 20 | (5) | ||||
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash | 546 | (1,893) | ||||
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period | 7,633 | 7,620 | ||||
Cash, Cash Equivalents, and Restricted Cash at End of Period | $ | 8,179 | $ | 5,727 | ||
See Condensed Notes to Interim Consolidated Financial Statements. |
DEERE & COMPANY
Condensed Notes to Interim Consolidated Financial Statements
(In millions of dollars) Unaudited
(1) Special Items
Discrete Tax Items
In the first quarter of 2025, the company recorded favorable net discrete tax items primarily due to tax benefits of $110 million related to the realization of foreign net operating losses from the consolidation of certain subsidiaries and $53 million from an adjustment to an uncertain tax position of a foreign subsidiary.
Banco John Deere S.A.
In 2024, the company entered into an agreement with a Brazilian bank, Banco Bradesco S.A. (Bradesco), for Bradesco to invest and become 50% owner of the company's wholly-owned subsidiary in Brazil, Banco John Deere S.A. (BJD). BJD finances retail and wholesale loans for agricultural, construction, and forestry equipment. The transaction is intended to reduce the company's incremental risk as it continues to grow in the Brazilian market. The company deconsolidated BJD upon completion of the transaction in February 2025. The company accounts for its investment in BJD using the equity method of accounting and results of its operations are reported in "Equity in income of unconsolidated affiliates" within the financial services segment. The company reports investments in unconsolidated affiliates and receivables from unconsolidated affiliates in "Other assets" and "Other receivables," respectively.
BJD was reclassified as held for sale in the third quarter of 2024. In the first quarter of 2025, a pretax and after-tax gain (reversal of previous losses) of $32 million was recorded in "Selling, administrative and general expenses" and presented in "Impairments and other adjustments" in the statements of consolidated income and consolidated cash flows, respectively, related to a decrease in valuation allowance. No significant gain or loss was recognized upon completion of the transaction. The equity interest in BJD was valued at $362 million at the deconsolidation date.
(2) The consolidated financial statements represent the consolidation of all the company's subsidiaries. The supplemental consolidating data in Note 3 to the financial statements is presented for informational purposes. Equipment operations represent the enterprise without financial services. Equipment operations include the company's production and precision agriculture operations, small agriculture and turf operations, and construction and forestry operations, and other corporate assets, liabilities, revenues, and expenses not reflected within financial services. Transactions between the equipment operations and financial services have been eliminated to arrive at the consolidated financial statements.
DEERE & COMPANY | ||||||||||||||||||||||||||
EQUIPMENT | FINANCIAL | |||||||||||||||||||||||||
OPERATIONS | SERVICES | ELIMINATIONS | CONSOLIDATED | |||||||||||||||||||||||
2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
Net Sales and Revenues | ||||||||||||||||||||||||||
Net sales | $ | 11,171 | $ | 13,610 | $ | 11,171 | $ | 13,610 | ||||||||||||||||||
Finance and interest income | 108 | 129 | $ | 1,380 | $ | 1,496 | $ | (134) | $ | (238) | 1,354 | 1,387 | 1 | |||||||||||||
Other income | 187 | 198 | 121 | 92 | (70) | (52) | 238 | 238 | 2, 3, 4 | |||||||||||||||||
Total | 11,466 | 13,937 | 1,501 | 1,588 | (204) | (290) | 12,763 | 15,235 | ||||||||||||||||||
Costs and Expenses | ||||||||||||||||||||||||||
Cost of sales | 7,617 | 9,164 | (8) | (7) | 7,609 | 9,157 | 4 | |||||||||||||||||||
Research and development expenses | 549 | 565 | 549 | 565 | ||||||||||||||||||||||
Selling, administrative and general expenses | 961 | 1,007 | 238 | 260 | (2) | (2) | 1,197 | 1,265 | 4 | |||||||||||||||||
Interest expense | 94 | 114 | 721 | 780 | (31) | (58) | 784 | 836 | 1 | |||||||||||||||||
Interest compensation to Financial Services | 103 | 180 | (103) | (180) | 1 | |||||||||||||||||||||
Other operating expenses | 12 | 1 | 335 | 337 | (60) | (43) | 287 | 295 | 3, 4, 5 | |||||||||||||||||
Total | 9,336 | 11,031 | 1,294 | 1,377 | (204) | (290) | 10,426 | 12,118 | ||||||||||||||||||
Income before Income Taxes | 2,130 | 2,906 | 207 | 211 | 2,337 | 3,117 | ||||||||||||||||||||
Provision for income taxes | 490 | 700 | 49 | 51 | 539 | 751 | ||||||||||||||||||||
Income after Income Taxes | 1,640 | 2,206 | 158 | 160 | 1,798 | 2,366 | ||||||||||||||||||||
Equity in income of unconsolidated affiliates | 3 | 2 | 3 | 2 | ||||||||||||||||||||||
Net Income | 1,640 | 2,206 | 161 | 162 | 1,801 | 2,368 | ||||||||||||||||||||
Less: Net loss attributable to noncontrolling interests | (3) | (2) | (3) | (2) | ||||||||||||||||||||||
Net Income Attributable to Deere & Company | $ | 1,643 | $ | 2,208 | $ | 161 | $ | 162 | $ | 1,804 | $ | 2,370 | ||||||||||||||
1 | Elimination of intercompany interest income and expense. |
2 | Elimination of equipment operations' margin from inventory transferred to equipment on operating leases. |
3 | Elimination of income and expenses between equipment operations and financial services related to intercompany guarantees of investments in certain international markets. |
4 | Elimination of intercompany service revenues and fees. |
5 | Elimination of financial services' lease depreciation expense related to inventory transferred to equipment on operating leases. |
DEERE & COMPANY | ||||||||||||||||||||||||||
EQUIPMENT | FINANCIAL | |||||||||||||||||||||||||
OPERATIONS | SERVICES | ELIMINATIONS | CONSOLIDATED | |||||||||||||||||||||||
2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
Net Sales and Revenues | ||||||||||||||||||||||||||
Net sales | $ | 17,980 | $ | 24,097 | $ | 17,980 | $ | 24,097 | ||||||||||||||||||
Finance and interest income | 217 | 285 | $ | 2,835 | $ | 2,929 | $ | (245) | $ | (468) | 2,807 | 2,746 | 1 | |||||||||||||
Other income | 391 | 487 | 239 | 211 | (145) | (121) | 485 | 577 | 2, 3, 4 | |||||||||||||||||
Total | 18,588 | 24,869 | 3,074 | 3,140 | (390) | (589) | 21,272 | 27,420 | ||||||||||||||||||
Costs and Expenses | ||||||||||||||||||||||||||
Cost of sales | 12,662 | 16,371 | (16) | (14) | 12,646 | 16,357 | 4 | |||||||||||||||||||
Research and development expenses | 1,075 | 1,098 | 1,075 | 1,098 | ||||||||||||||||||||||
Selling, administrative and general expenses | 1,761 | 1,882 | 412 | 453 | (4) | (5) | 2,169 | 2,330 | 4 | |||||||||||||||||
Interest expense | 178 | 223 | 1,487 | 1,542 | (51) | (127) | 1,614 | 1,638 | 1 | |||||||||||||||||
Interest compensation to Financial Services | 194 | 341 | (194) | (341) | 1 | |||||||||||||||||||||
Other operating expenses | (38) | 91 | 699 | 675 | (125) | (102) | 536 | 664 | 3, 4, 5 | |||||||||||||||||
Total | 15,832 | 20,006 | 2,598 | 2,670 | (390) | (589) | 18,040 | 22,087 | ||||||||||||||||||
Income before Income Taxes | 2,756 | 4,863 | 476 | 470 | 3,232 | 5,333 | ||||||||||||||||||||
Provision for income taxes | 477 | 1,117 | 89 | 103 | 566 | 1,220 | ||||||||||||||||||||
Income after Income Taxes | 2,279 | 3,746 | 387 | 367 | 2,666 | 4,113 | ||||||||||||||||||||
Equity in income (loss) of unconsolidated affiliates | (3) | 4 | 3 | 1 | 3 | |||||||||||||||||||||
Net Income | 2,276 | 3,746 | 391 | 370 | 2,667 | 4,116 | ||||||||||||||||||||
Less: Net loss attributable to noncontrolling interests | (6) | (5) | (6) | (5) | ||||||||||||||||||||||
Net Income Attributable to Deere & Company | $ | 2,282 | $ | 3,751 | $ | 391 | $ | 370 | $ | 2,673 | $ | 4,121 | ||||||||||||||
1 | Elimination of intercompany interest income and expense. |
2 | Elimination of equipment operations' margin from inventory transferred to equipment on operating leases. |
3 | Elimination of income and expenses between equipment operations and financial services related to intercompany guarantees of investments in certain international markets. |
4 | Elimination of intercompany service revenues and fees. |
5 | Elimination of financial services' lease depreciation expense related to inventory transferred to equipment on operating leases. |
DEERE & COMPANY | ||||||||||||||||||||||||||||||||||||||
EQUIPMENT | FINANCIAL | |||||||||||||||||||||||||||||||||||||
OPERATIONS | SERVICES | ELIMINATIONS | CONSOLIDATED | |||||||||||||||||||||||||||||||||||
Apr 27 | Oct 27 | Apr 28 | Apr 27 | Oct 27 | Apr 28 | Apr 27 | Oct 27 | Apr 28 | Apr 27 | Oct 27 | Apr 28 | |||||||||||||||||||||||||||
2025 | 2024 | 2024 | 2025 | 2024 | 2024 | 2025 | 2024 | 2024 | 2025 | 2024 | 2024 | |||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 6,331 | $ | 5,615 | $ | 3,800 | $ | 1,660 | $ | 1,709 | $ | 1,753 | $ | 7,991 | $ | 7,324 | $ | 5,553 | ||||||||||||||||||||
Marketable securities | 139 | 125 | 148 | 1,133 | 1,029 | 946 | 1,272 | 1,154 | 1,094 | |||||||||||||||||||||||||||||
Receivables from Financial Services | 2,497 | 3,043 | 4,480 | $ | (2,497) | $ | (3,043) | $ | (4,480) | 6 | ||||||||||||||||||||||||||||
Trade accounts and notes receivable – net | 1,429 | 1,257 | 1,320 | 7,406 | 6,225 | 10,263 | (2,087) | (2,156) | (2,703) | 6,748 | 5,326 | 8,880 | 7 | |||||||||||||||||||||||||
Financing receivables – net | 82 | 78 | 80 | 42,947 | 44,231 | 45,198 | 43,029 | 44,309 | 45,278 | |||||||||||||||||||||||||||||
Financing receivables securitized – net | 2 | 2 | 7,763 | 8,721 | 7,262 | 7,765 | 8,723 | 7,262 | ||||||||||||||||||||||||||||||
Other receivables | 2,009 | 2,193 | 1,822 | 1,009 | 427 | 760 | (43) | (75) | (47) | 2,975 | 2,545 | 2,535 | 7 | |||||||||||||||||||||||||
Equipment on operating leases – net | 7,336 | 7,451 | 6,965 | 7,336 | 7,451 | 6,965 | ||||||||||||||||||||||||||||||||
Inventories | 7,870 | 7,093 | 8,443 | 7,870 | 7,093 | 8,443 | ||||||||||||||||||||||||||||||||
Property and equipment – net | 7,523 | 7,546 | 6,999 | 32 | 34 | 35 | 7,555 | 7,580 | 7,034 | |||||||||||||||||||||||||||||
Goodwill | 4,094 | 3,959 | 3,936 | 4,094 | 3,959 | 3,936 | ||||||||||||||||||||||||||||||||
Other intangible assets – net | 964 | 999 | 1,064 | 964 | 999 | 1,064 | ||||||||||||||||||||||||||||||||
Retirement benefits | 3,046 | 2,839 | 2,980 | 89 | 83 | 77 | (2) | (1) | (1) | 3,133 | 2,921 | 3,056 | 8 | |||||||||||||||||||||||||
Deferred income taxes | 2,377 | 2,262 | 2,210 | 42 | 43 | 71 | (331) | (219) | (345) | 2,088 | 2,086 | 1,936 | 9 | |||||||||||||||||||||||||
Other assets | 2,349 | 2,194 | 2,105 | 1,152 | 715 | 504 | (18) | (3) | (17) | 3,483 | 2,906 | 2,592 | ||||||||||||||||||||||||||
Assets held for sale | 2,944 | 2,944 | ||||||||||||||||||||||||||||||||||||
Total Assets | $ | 40,712 | $ | 39,205 | $ | 39,387 | $ | 70,569 | $ | 73,612 | $ | 73,834 | $ | (4,978) | $ | (5,497) | $ | (7,593) | $ | 106,303 | $ | 107,320 | $ | 105,628 | ||||||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||
Short-term borrowings | $ | 241 | $ | 911 | $ | 1,055 | $ | 15,707 | $ | 12,622 | $ | 16,644 | $ | 15,948 | $ | 13,533 | $ | 17,699 | ||||||||||||||||||||
Short-term securitization borrowings | 1 | 2 | 7,561 | 8,429 | 6,976 | 7,562 | 8,431 | 6,976 | ||||||||||||||||||||||||||||||
Payables to Equipment Operations | 2,497 | 3,043 | 4,480 | $ | (2,497) | $ | (3,043) | $ | (4,480) | 6 | ||||||||||||||||||||||||||||
Accounts payable and accrued expenses | 12,180 | 13,534 | 13,771 | 3,313 | 3,243 | 3,605 | (2,148) | (2,234) | (2,767) | 13,345 | 14,543 | 14,609 | 7 | |||||||||||||||||||||||||
Deferred income taxes | 405 | 434 | 421 | 422 | 263 | 415 | (331) | (219) | (345) | 496 | 478 | 491 | 9 | |||||||||||||||||||||||||
Long-term borrowings | 8,685 | 6,603 | 6,575 | 34,126 | 36,626 | 34,387 | 42,811 | 43,229 | 40,962 | |||||||||||||||||||||||||||||
Retirement benefits and other liabilities | 1,695 | 2,250 | 1,995 | 70 | 105 | 111 | (2) | (1) | (1) | 1,763 | 2,354 | 2,105 | 8 | |||||||||||||||||||||||||
Liabilities held for sale | 1,827 | 1,827 | ||||||||||||||||||||||||||||||||||||
Total liabilities | 23,207 | 23,734 | 23,817 | 63,696 | 66,158 | 66,618 | (4,978) | (5,497) | (7,593) | 81,925 | 84,395 | 82,842 | ||||||||||||||||||||||||||
Redeemable noncontrolling interest | 83 | 82 | 98 | 83 | 82 | 98 | ||||||||||||||||||||||||||||||||
Stockholders' Equity | ||||||||||||||||||||||||||||||||||||||
Total Deere & Company stockholders' equity | 24,287 | 22,836 | 22,684 | 6,873 | 7,454 | 7,216 | (6,873) | (7,454) | (7,216) | 24,287 | 22,836 | 22,684 | 10 | |||||||||||||||||||||||||
Noncontrolling interests | 8 | 7 | 4 | 8 | 7 | 4 | ||||||||||||||||||||||||||||||||
Financial Services' equity | (6,873) | (7,454) | (7,216) | 6,873 | 7,454 | 7,216 | 10 | |||||||||||||||||||||||||||||||
Adjusted total stockholders' equity | 17,422 | 15,389 | 15,472 | 6,873 | 7,454 | 7,216 | 24,295 | 22,843 | 22,688 | |||||||||||||||||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 40,712 | $ | 39,205 | $ | 39,387 | $ | 70,569 | $ | 73,612 | $ | 73,834 | $ | (4,978) | $ | (5,497) | $ | (7,593) | $ | 106,303 | $ | 107,320 | $ | 105,628 | ||||||||||||||
6 | Elimination of receivables / payables between equipment operations and financial services. |
7 | Primarily reclassification of sales incentive accruals on receivables sold to financial services. |
8 | Reclassification of net pension assets / liabilities. |
9 | Reclassification of deferred tax assets / liabilities in the same taxing jurisdictions. |
10 | Elimination of financial services' equity. |
DEERE & COMPANY | ||||||||||||||||||||||||||
EQUIPMENT | FINANCIAL | |||||||||||||||||||||||||
OPERATIONS | SERVICES | ELIMINATIONS | CONSOLIDATED | |||||||||||||||||||||||
2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
Cash Flows from Operating Activities | ||||||||||||||||||||||||||
Net income | $ | 2,276 | $ | 3,746 | $ | 391 | $ | 370 | $ | 2,667 | $ | 4,116 | ||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||||||||
Provision for credit losses | 11 | 10 | 163 | 121 | 174 | 131 | ||||||||||||||||||||
Provision for depreciation and amortization | 643 | 608 | 529 | 509 | $ | (68) | $ | (72) | 1,104 | 1,045 | 11 | |||||||||||||||
Impairments and other adjustments | (32) | (32) | ||||||||||||||||||||||||
Share-based compensation expense | 54 | 104 | 54 | 104 | 12 | |||||||||||||||||||||
Distributed earnings of Financial Services | 984 | 247 | (984) | (247) | 13 | |||||||||||||||||||||
Provision (credit) for deferred income taxes | (153) | (74) | 164 | (46) | 11 | (120) | ||||||||||||||||||||
Changes in assets and liabilities: | ||||||||||||||||||||||||||
Receivables related to sales | (185) | (58) | (884) | (2,411) | (1,069) | (2,469) | 14, 16 | |||||||||||||||||||
Inventories | (691) | (300) | (81) | (109) | (772) | (409) | 15 | |||||||||||||||||||
Accounts payable and accrued expenses | (1,069) | (1,012) | 102 | 147 | 69 | (435) | (898) | (1,300) | 16 | |||||||||||||||||
Accrued income taxes payable/receivable | (77) | (20) | (70) | (9) | (147) | (29) | ||||||||||||||||||||
Retirement benefits | (753) | (205) | (41) | (3) | (794) | (208) | ||||||||||||||||||||
Other | 59 | 89 | 224 | 65 | (13) | (71) | 270 | 83 | 11, 12, 15 | |||||||||||||||||
Net cash provided by operating activities | 1,045 | 3,031 | 1,430 | 1,154 | (1,907) | (3,241) | 568 | 944 | ||||||||||||||||||
Cash Flows from Investing Activities | ||||||||||||||||||||||||||
Collections of receivables (excluding receivables related to sales) | 14,684 | 14,175 | (336) | (472) | 14,348 | 13,703 | 14 | |||||||||||||||||||
Proceeds from maturities and sales of marketable securities | 18 | 58 | 227 | 142 | 245 | 200 | ||||||||||||||||||||
Proceeds from sales of equipment on operating leases | 1,001 | 1,011 | 1,001 | 1,011 | ||||||||||||||||||||||
Cost of receivables acquired (excluding receivables related to sales) | (12,875) | (14,238) | 131 | 147 | (12,744) | (14,091) | 14 | |||||||||||||||||||
Purchases of marketable securities | (20) | (226) | (327) | (206) | (347) | (432) | ||||||||||||||||||||
Purchases of property and equipment | (555) | (718) | (1) | (555) | (719) | |||||||||||||||||||||
Cost of equipment on operating leases acquired | (1,363) | (1,516) | 109 | 147 | (1,254) | (1,369) | 15 | |||||||||||||||||||
Decrease in investment in Financial Services | 10 | (10) | 17 | |||||||||||||||||||||||
Increase in trade and wholesale receivables | (1,019) | (3,171) | 1,019 | 3,171 | 14 | |||||||||||||||||||||
Collections of receivables from unconsolidated affiliates | 183 | 51 | 234 | |||||||||||||||||||||||
Collateral on derivatives – net | 3 | 24 | 96 | 27 | 96 | |||||||||||||||||||||
Other | (72) | (68) | (104) | (2) | 1 | (176) | (69) | |||||||||||||||||||
Net cash provided by (used for) investing activities | (443) | (944) | 299 | (3,710) | 923 | 2,984 | 779 | (1,670) | ||||||||||||||||||
Cash Flows from Financing Activities | ||||||||||||||||||||||||||
Net proceeds (payments) in short-term borrowings (original maturities three months or less) | 65 | 189 | 486 | (131) | 551 | 58 | ||||||||||||||||||||
Change in intercompany receivables/payables | 428 | 31 | (428) | (31) | ||||||||||||||||||||||
Proceeds from borrowings issued (original maturities greater than three months) | 2,043 | 34 | 3,113 | 10,155 | 5,156 | 10,189 | ||||||||||||||||||||
Payments of borrowings (original maturities greater than three months) | (766) | (1,012) | (4,071) | (7,127) | (4,837) | (8,139) | ||||||||||||||||||||
Repurchases of common stock | (838) | (2,422) | (838) | (2,422) | ||||||||||||||||||||||
Capital returned to Equipment Operations | (10) | 10 | 17 | |||||||||||||||||||||||
Dividends paid | (843) | (796) | (984) | (247) | 984 | 247 | (843) | (796) | 13 | |||||||||||||||||
Other | (4) | (27) | (6) | (25) | (10) | (52) | ||||||||||||||||||||
Net cash provided by (used for) financing activities | 85 | (4,003) | (1,890) | 2,584 | 984 | 257 | (821) | (1,162) | ||||||||||||||||||
Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash | 22 | (2) | (5) | 20 | (5) | |||||||||||||||||||||
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash | 709 | (1,916) | (163) | 23 | 546 | (1,893) | ||||||||||||||||||||
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period | 5,643 | 5,755 | 1,990 | 1,865 | 7,633 | 7,620 | ||||||||||||||||||||
Cash, Cash Equivalents, and Restricted Cash at End of Period | $ | 6,352 | $ | 3,839 | $ | 1,827 | $ | 1,888 | $ | 8,179 | $ | 5,727 | ||||||||||||||
11 | Elimination of depreciation on leases related to inventory transferred to equipment on operating leases. |
12 | Reclassification of share-based compensation expense. |
13 | Elimination of dividends from financial services to the equipment operations, which are included in the equipment operations operating activities. |
14 | Primarily reclassification of receivables related to the sale of equipment. |
15 | Reclassification of direct lease agreements with retail customers. |
16 | Reclassification of sales incentive accruals on receivables sold to financial services. |
17 | Elimination of change in investment from equipment operations to financial services. |
SOURCE John Deere Company
Jen Hartmann, Director, Public Relations, [email protected]
Share this article