Deere & Company (DE) investor relations material

Executive summary

• Fiscal 2025 net income was $5.027 billion ($18.50/share), with operating margins of 12.6%, amid challenging market and tariff headwinds.

• Q4 2025 net income was $1.065 billion ($3.93/share), with net sales and revenues up 11% year-over-year to $12.394 billion.

• The business demonstrated resilience through proactive inventory management, cost control, and diversification across segments and geographies.

• Technology adoption accelerated, with strong growth in digital and automation solutions, including precision ag, See & Spray, and autonomy.

• Management expects 2026 to be the bottom of the large ag cycle, with ongoing margin pressures from tariffs and subdued large ag demand.

Financial highlights

• Fiscal 2025 net sales and revenues were $45.684 billion, down 12%; equipment operations net sales were $38.917 billion, down 13%.

• Q4 equipment operations net sales rose 14% to $10.579 billion; operating profit in production precision ag was $604 million (12.7% margin).

• Construction and forestry Q4 net sales up 27% to $3.382 billion; operating profit $348 million (10.3% margin).

• Equipment operations cash flow reached $5.1 billion, enabling $2.8 billion in shareholder returns via dividends and buybacks.

• Q4 operating profit was $1.351 billion (down 7% year-over-year); full-year operating profit was $6.02 billion (down 33%).

Outlook and guidance

• Fiscal 2026 net income forecasted at $4–$4.75 billion; effective tax rate 25–27%.

• Equipment operations cash flow projected at $4–$5 billion.

• Production and precision ag net sales expected down 5–10% with 11–13% operating margin; small ag and turf net sales flat to up 5% with 12.5–14% margin.

• Construction and forestry net sales forecasted flat to up 5%, with 8–10% operating margin.

• Pre-tax direct tariff expense projected at $1.2 billion in 2026, up $600 million from 2025.