Deere & Company (DE) Investor Day 2025 summary

Strategic vision and transformation

• Smart Industrial strategy, launched in 2020, has transformed the business into a technology-driven leader focused on intelligent, connected machines and solutions for agriculture, construction, and forestry.

• The company is leveraging a centralized technology stack, lifecycle solutions, and a robust dealer network to drive customer productivity, sustainability, and profitability across all production systems and geographies.

• Over 1 million machines are now connected, and the Operations Center covers 500 million engaged acres, with a goal to reach 600 million acres and 1 million unique digital users by 2030.

• The refined LEAP Ambitions focus on accelerating customer value delivery, automation, autonomy, actionable insights, and comprehensive lifecycle solutions to maximize uptime and reduce total cost of ownership.

• The company aims to reduce upstream and downstream CO2 emissions by 30% and operational emissions by 50% by 2030, compared to 2021.

Financial guidance and growth targets

• Targeting a 10% net sales CAGR from 2025 to 2030, with projected equipment operations net sales rising from $38.9 billion in 2025 to $63 billion by 2030.

• Shareholder Value Added (SVA) has exceeded $30 billion in six years since Smart Industrial, surpassing the previous two decades combined.

• Aims for 20% operating return on sales (OROS) and 45% operating return on assets by 2030, with compensation plans aligned to these outcomes.

• By 2030, expects nearly one-third of total revenue to be less tied to the equipment replacement cycle, driven by SaaS, lifecycle, and financial services.

• Plans to return substantially all remaining free cash flow to shareholders, continuing a 25-year trend of over 80% free cash flow returned via dividends and buybacks.

Business developments and innovation

• Expanded digital tools and automation across agriculture, construction, and turf, including See & Spray, ExactShot, SmartGrade, and autonomous platforms.

• New product launches and upgrades, such as the 230M sprayer in Brazil, S7 and X9 combines, and the introduction of Deere-designed excavators in North America starting 2026.

• SaaS and solutions-as-a-service models are being scaled, with recurring revenue targets extended beyond 2030 due to adoption timelines, but long-term potential remains strong.

• Lifecycle Solutions and retrofit technologies are driving growth, with three-quarters of See & Spray machines in 2025 being retrofits.

• John Deere Financial supports growth by providing liquidity, enabling tech adoption, and maintaining high approval rates and portfolio quality across 50+ countries.