Deere & Company (DE) investor relations material

Executive summary

• Net sales and revenues for Q3 2025 were $12.018 billion, down 9% year-over-year, with net income at $1.289 billion ($4.75 per share), down 26% year-over-year; disciplined inventory management and technology adoption helped navigate challenging markets.

• Year-to-date net sales and revenues were $33.3 billion, down 18% year-over-year; nine-month net income was $3.96 billion, down 32% year-over-year.

• Lower sales volumes, higher tariffs, and unfavorable price realization drove declines, partially offset by lower production costs and favorable discrete tax items.

• Improved demand in select segments, notably turf and compact utility tractors in North America, and retail sales growth in Europe and North American earthmoving and forestry.

Financial highlights

• Q3 net sales: $10.357 billion, down from $11.387 billion year-over-year; Q3 operating profit: $1.568 billion, down 32%; Q3 EPS: $4.75, down from $6.29.

• Financial Services Q3 net income rose 34% to $205 million, driven by lower credit loss provisions and special items.

• Cash, cash equivalents, and marketable securities totaled $8.58 billion at quarter end.

• Share repurchases totaled 582,000 shares in the quarter; $7.9 billion remains under the current repurchase plan.

Outlook and guidance

• Fiscal 2025 net income forecast narrowed to $4.75–$5.25 billion; effective tax rate expected between 19–21%.

• Equipment operations cash flow guidance remains $4.5–$5.5 billion.

• Large Ag equipment industry sales in US/Canada expected down 30% for FY25; Small Ag and Turf down 10%; Europe flat to slightly down; South America flat; Asia flat to slightly up.

• Production & Precision Ag net sales forecasted down 15–20% for the year; Small Ag and Turf down 10%; Construction & Forestry down 10–15%.

• Financial Services FY 2025 net income forecasted at ~$770 million.