Deere & Company (DE) Q2 2025 earnings summary

Executive summary

• Net sales and revenues for Q2 2025 were $12.763B, down 16% year-over-year; net income was $1.804B ($6.64/share), down from $2.37B ($8.53/share) in Q2 2024.

• Six-month net sales and revenues were $21.272B, down 22% year-over-year; six-month net income was $2.673B ($9.82/share), compared to $4.121B ($14.74/share) last year.

• Declines were driven by lower sales volumes, unfavorable currency, and higher tariffs, partially offset by cost controls and discrete tax benefits.

• Management emphasized disciplined execution, resilience, and ongoing commitment to innovation and U.S. manufacturing investments.

• Completed deconsolidation of Banco John Deere S.A. in Brazil, now a 50% equity method investment.

Financial highlights

• Q2 2025 equipment operations net sales were $11.171B, down 18%; production and precision ag sales down 21% to $5.23B; small ag and turf down 6% to $2.994B; construction and forestry down 23% to $2.947B.

• Q2 operating profit was $2.308B, down 26% year-over-year; diluted EPS was $6.64, down from $8.53.

• Financial services Q2 net income was $161M, flat year-over-year.

• Cash and cash equivalents at quarter end were $7.991B; total assets $106.3B, liabilities $81.9B.

• Dividends declared per share for Q2: $1.62.

Outlook and guidance

• Fiscal 2025 net income guidance is $4.75B–$5.5B; effective tax rate 20–22%; equipment operations cash flow $4.5B–$5.5B.

• Production and precision ag net sales expected down 15–20% for the year; operating margin 15.5–17%.

• Small ag and turf net sales expected down 10–15%; operating margin 11.5–13.5%.

• Construction and forestry net sales forecasted down 10–15%; operating margin 8.5–11.5%.

• U.S. & Canada large ag equipment sales expected down ~30%; small ag and turf down 10–15%.