Financial Results

John Deere News: 50% Drop in Q1 Net Income as Equipment Sales Decline

John Deere plans to enable customers and independent repair technicians to reprogram electronic controllers as part of its digital solutions.
Image provided by John Deere during CES 2025.

Key Takeaways

  • Deere & Company reported Q1 2025 net income of $869 million, a 50% decline from $1.75 billion in Q1 2024.
  • Net sales and revenues fell 30% to $8.51 billion, reflecting lower shipment volumes across key business segments.
  • Production & Precision Agriculture sales dropped 37%, with operating profit down 68%.
  • Small Agriculture & Turf sales declined 28%, while Construction & Forestry saw a 38% drop in net sales.
  • Deere maintains full-year net income guidance at $5.0 billion to $5.5 billion, citing ongoing inventory optimization and strategic investments.

John Deere Latest News: First-Quarter Financial Performance

Deere & Company (Profile) reported net income of $869 million ($3.19 per share) for Q1 2025, down 50% from $1.75 billion ($6.23 per share) in Q1 2024.

Total net sales and revenues fell 30% to $8.51 billion, compared to $12.19 billion in the previous year. The decline was primarily driven by lower shipment volumes across all divisions, as market conditions remain challenging for agricultural and construction equipment.

John C. May, Chairman and CEO of Deere, commented: “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. We’re seeing compelling evidence that our efforts are positioning the company to successfully navigate the current environment.”


Segment Performance

Segment Net Sales (Q1 2025) % Change Operating Profit (Q1 2025) % Change
Production & Precision Agriculture $3.07B -37% $338M -68%
Small Agriculture & Turf $1.75B -28% $124M -62%
Construction & Forestry $1.99B -38% $65M -89%
Financial Services N/A N/A $230M +11%

Key Business Drivers of Deere & Company

Production & Precision Agriculture

  • Sales declined 37% due to lower shipment volumes.
  • Operating profit dropped 68%, impacted by reduced sales mix, partially offset by lower production costs.

Small Agriculture & Turf

  • Sales decreased 28%, reflecting weaker demand for smaller agricultural and turf equipment.
  • Operating profit fell 62%, largely due to shipment reductions.

Construction & Forestry

  • Sales declined 38%, with operating profit down 89%, driven by lower shipment volumes, unfavorable pricing, and higher expenses.

Financial Services

  • Net income increased 11% to $230 million, benefiting from a decreased valuation allowance on Banco John Deere S.A.
  • Excluding special items, net income declined due to a higher provision for credit losses.

Industry & Segment Outlook for 2025

Agriculture & Turf

Region/Category 2025 Forecast
U.S. & Canada – Large Ag Down ~30%
U.S. & Canada – Small Ag & Turf Down ~10%
Europe Down ~5%
South America (Tractors & Combines) Flat
Asia Down slightly

Construction & Forestry

Region/Category 2025 Forecast
U.S. & Canada – Construction Equipment Down ~10%
U.S. & Canada – Compact Construction Equipment Down ~5%
Global Forestry Flat to down 5%
Global Roadbuilding Flat

Deere’s 2025 Segment Sales Outlook

Segment 2025 Forecast Currency Impact Pricing Impact
Production & Precision Ag Down 15-20% -2.5% +1.0%
Small Ag & Turf Down ~10% -1.5% +0.5%
Construction & Forestry Down 10-15% -1.5% Flat
Financial Services Net Income ~ $750M N/A N/A

Deere & Company Outlook for Fiscal 2025

Despite the sharp revenue and profit declines, Deere is maintaining its full-year net income guidance of $5.0 billion to $5.5 billion, citing:

Inventory management strategies to support market stability.
Continued investment in strategic initiatives to enhance operational efficiency.
Stable financial positioning despite a weaker demand environment.

May concluded: “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.”

Read the complete financial results here.

Stay tuned for the latest John Deere news.

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