Deere Reports First Quarter Net Income of $869 Million

PR Newswire

MOLINE, Ill., Feb. 13, 2025

   -- Full-year net income forecast remains steady despite currency 
      fluctuations. 
 
   -- Results reflect progress in streamlining field inventory amidst uncertain 
      market conditions. 
 
   -- Continued value delivery as customers navigate a challenging environment. 

MOLINE, Ill., Feb. 13, 2025 /PRNewswire/ -- Deere & Company (NYSE: DE) reported net income of $869 million for the first quarter ended January 26, 2025, or $3.19 per share, compared with net income of $1,751 million, or $6.23 per share, for the quarter ended January 28, 2024.

Worldwide net sales and revenues decreased 30 percent, to $8.508 billion, in the most recent quarter. Net sales were $6.809 billion for the quarter, compared with $10.486 billion in 2024.

"Deere's performance in the first quarter highlights our continued focus on optimizing inventory levels of both new and used equipment amidst the uncertain market conditions our customers are facing," said John C. May, chairman and chief executive officer. "We're seeing compelling evidence that our efforts are positioning the company to successfully navigate the current environment."

Company Outlook & Summary

Net income attributable to Deere & Company for fiscal 2025 is forecasted to remain in a range of $5.0 billion to $5.5 billion.

"The stability of our net income guidance not only reflects our resilience in a challenging market but also enables our sustained strategic investments to provide better outcomes for our customers," May added.

 
Deere & Company                                First Quarter 
                                         ------------------------- 
$ in millions, except per share 
amounts                                   2025    2024    % Change 
--------------------------------------   ------  -------  -------- 
Net sales and revenues                   $8,508  $12,185     -30 % 
Net income                               $  869  $ 1,751     -50 % 
Fully diluted EPS                        $ 3.19  $  6.23 
 

Results for the current period were affected by special items. See Note 1 of the financial statements for further details.

 
Production & Precision Agriculture          First Quarter 
                                      -------------------------- 
$ in millions                          2025     2024    % Change 
-----------------------------------   -------  -------  -------- 
Net sales                             $ 3,067  $ 4,849     -37 % 
Operating profit                      $   338  $ 1,045     -68 % 
Operating margin                       11.0 %   21.6 % 
 

Production and precision agriculture sales decreased for the quarter as a result of lower shipment volumes. Operating profit decreased primarily due to lower shipment volumes / sales mix, partially offset by lower SA&G and R&D expenses and lower production costs.

 
Small Agriculture & Turf          First Quarter 
                            ------------------------- 
$ in millions                2025    2024    % Change 
-------------------------   ------  -------  -------- 
Net sales                   $1,748  $ 2,425     -28 % 
Operating profit            $  124  $   326     -62 % 
Operating margin             7.1 %   13.4 % 
 

Small agriculture and turf sales decreased for the quarter as a result of lower shipment volumes. Operating profit decreased primarily due to lower shipment volumes / sales mix, partially offset by lower production costs.

 
Construction & Forestry          First Quarter 
                           ------------------------- 
$ in millions               2025    2024    % Change 
------------------------   ------  -------  -------- 
Net sales                  $1,994  $ 3,212     -38 % 
Operating profit           $   65  $   566     -89 % 
Operating margin            3.3 %   17.6 % 
 

Construction and forestry sales decreased for the quarter as a result of lower shipment volumes. Operating profit decreased primarily due to lower shipment volumes / sales mix, unfavorable price realization, and higher SA&G and R&D expenses.

 
Financial Services       First Quarter 
                      -------------------- 
$ in millions         2025  2024  % Change 
-------------------   ----  ----  -------- 
Net income            $230  $207      11 % 
 

Financial services net income for the current quarter was affected by a decreased valuation allowance on assets held for sale of Banco John Deere S.A. See Note 1 of the financial statements for further details. Excluding the impact of this special item, net income decreased due to a higher provision for credit losses, partially offset by lower SA&G expenses.

 
       Industry Outlook for Fiscal 2025 
---------------------------------------        --------------- 
Agriculture & Turf 
U.S. & Canada: 
 Large Ag                                           Down  30% 
 Small Ag & Turf                                    Down  10% 
Europe                                               Down  5% 
South America (Tractors & Combines)                       Flat 
Asia                                             Down slightly 
 
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

This outlook does not reflect the impacts of potential import tariffs by the U.S. and retaliatory actions taken by other countries given the uncertain and rapidly evolving environment.

 
                                               Currency       Price 
$ in millions                  Net Sales      Translation  Realization 
-------------------------   ---------------   -----------  ----------- 
Production & Precision Ag     Down 15 to 20%        -2.5 %       +1.0 % 
Small Ag & Turf                 Down  10%          -1.5 %       +0.5 % 
Construction & Forestry     Down 10 to 15%         -1.5 %         Flat 
 
Financial Services              Net Income           $750 
 

FORWARD-LOOKING STATEMENTS

Certain statements contained herein, including in the section entitled "Company Outlook & Summary," "Industry Outlook," "Deere Segment Outlook, " and "Condensed Notes to Interim Consolidated Financial Statements" relating to future events, expectations, 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:

   -- 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, and regional or global liquidity constraints; 
 
   -- government policies and actions in respect to global trade, tariffs, and 
      trade agreements, 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, predict financial 
      results, and remain competitive based on these actions and policies; 
 
   -- 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 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 recent lawsuit filed by the Federal Trade Commission $(FTC.UK)$ 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; 
 
   -- changes in climate patterns, unfavorable weather events, and natural 
      disasters, including potential consequences from the recent California 
      wildfires; 
 

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February 13, 2025 06:20 ET (11:20 GMT)